The 2010 fiscal year was a challenging year for MCR as the Company faced severe constraints and numerous challenges. The management and operating teams endured through the past year with their support and commitment to the Company. With several major corporate developments underway we anticipate positive results in 2011.

Financial Results

Total revenue and net results from continuing operations were from resort operations only for the year ended December 31st, 2010 and 2009. No real estate sales activities were undertaken during these periods. Revenue from continuing operations totaled $4.37 million for the 2010 year versus $2.76 million in the 2009 year. Operating EBITDA from continuing operations for the 2010 year were negative $5.73 million compared to negative 23.8 million in the 2009 year.

Resort operation expenses from continuing operations totaled $6.24 million for the 2010 year compared to $9.17 million in the 2009 year.

Corporate general and administrative expenses (“G&A expenses”) from continuing operations totaled $4.59 million for the 2010 year compared to $17.75 million in the 2009 year. This amount mainly comprised executive employee costs, public company costs, and corporate information technology costs. The above mentioned figures have not included the data from Changchun Resort, which discontinued its operation in 2010.

Depreciation and amortization expense from continuing operations totaled $6.91 million for the 2010 year compared to $7.87 million in the 2009 year. The depreciation and amortization charges are provided using the straight-line method over the estimated useful lives of each asset category and the term of land use rights under the Group’s accounting policies.

The Group incurred financial costs of $4.05 million for the 2010 year from continuing operations compared to $7.58 million for the 2009 year. Financial cost mainly includes loan interest, bank administrative fees, and service charges.

Cash and cash equivalents totaled $2.4 million and working capital was $5.6 million as at December 31, 2010. Working capital included amounts due from related parties, accounts receivable, other receivables and prepayments, prepaid lease payment (current potion).