UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended September 30, 2010

[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ______________

CHINA MULTIMEDIA, INC.

(Exact name of registrant as specified in its charter)


Nevada	000-51817	98-0507257
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)
Room306, 3^rd Floor, Beautiful Group Tower, 77 Connaught Road, Central, Hong Kong
(Address of principal executive offices)
Registrant’s telephone number, including area code: (852) 2802-8663

Securities registered under Section 12(b) of the Act:

None

Securities registered under Section 12(g) of the Act:

Common Stock, par value $0.001

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act [] Yes [X ] No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the [ ] Yes [ X ] No

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] Yes [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Not Applicable.

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [ ] (Do not check if a smaller reporting company)	Smaller reporting company [ X ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).[X ]Yes [ ] No

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of the last business day of the

registrant’s most recently completed second fiscal quarter. $0.00.

As of December 28, 2010, the Company had 10,200,000 shares issued and outstanding

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PART I

ITEM 1.

BUSINESS.

Business Development

China Multimedia, Inc. (hereinafter also referred to as “we,” “us,” the “Company”, or “CMI”) was incorporated in the State of Nevada on August 16, 2006. We are a development stage company established to: 1) provide web design solutions to companies; and 2) introduce potential business opportunities to business partners. To date, the Company’s business activities have consisted of developing its business plan, raising initial capital, and signing two agreements for the provision of the Company’s services. We have earned limited revenue from our business operations.

Business of the Issuer

Web Design Solutions

CMI provides cost-effective web design solutions for small and medium-sized business enterprises (“SMEs”) throughout Hong Kong. CMI’s goal is to assist potential clients with establishing or maintaining websites which allow the clients to promote their Internet presence. Websites provide a vehicle for businesses to post information about their company onto the Internet, thereby reaching the global market. In the current market, many companies are attempting to establish an online presence without spending or committing a substantial amount of capital or time. Establishing an Internet presence is particularly challenging for SMEs. Accordingly, CMI intends to identify SMEs that may be in need of web services and provide them with a cost effective means of meeting their website design and operational needs. CMI will focus on locating potential clients (the “T-Clients”) who either do not maintain any form of company website or maintain websites with outdated designs.

To meet the needs of T-Clients, CMI maintains a list of professional freelance web designers (the “Freelance Designers”) who provide CMI with a full range of website templates (the “Templates”) specifically designed for different business sectors. Once we have located a potential T-Client, we will attempt to provide them with an affordable website Template that is suitable to their business needs. Additionally, if the T-Clients request websites with more advanced functions than the Templates currently provide, we will introduce the T-Clients to suitable Freelance Designers to meet the T-Clients specific web design needs. All of the Freelance Designers we work with possess the relevant knowledge and necessary skill to provide such customized services.

CMI is able to provide cost-effective web design solutions to SMEs by maintaining a full range of Templates which are specific to different business sectors. CMI’s prices are not cost prohibitive to SMEs because we are able to operate with a minimum amount of overhead by not employing any full time software developers or web designers. CMI acts only as a bridge between Freelance Designers and T-Clients. The Freelance Designers that we work with have authorized us to use their professional designs while we attempt to locate potential T-Clients.

CMI currently has an arrangement with its Freelance Designers whereby CMI splits the fee charged to the T-Clients. Under the fee arrangement, CMI collects 60% of the fee charged to the T-Clients and distributes the remaining 40% to the Freelance Designers. CMI determines the amount of the fee charged to the T-Clients. CMI and the Freelance Designers agreed orally on the fee arrangement, and we have not signed any written contracts with them.

On September 26, 2008, we entered into a Service Agreement (the “Service Agreement”) with Century Health Medical Limited (“CHML), a PRC company, pursuant to which CMI agreed to assist CHML with the development of its website. As consideration for our services, CHML paid us a fee of US$7,700. The term of the Service Agreement was from September 26, 2008 through December 31, 2008. As of September 30, 2009, the Company had completed rendering the services to CHML. As consideration for our services, CHML paid us a fee of approximately US$7,700. The foregoing description of Service Agreement does not purport to be complete and is qualified in its entirety by

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reference to the Service Agreement which was filed as Exhibit 10.2 to the Company’s Form 10-KSB filed with the Securities and Exchange Commission on December 30, 2008, and is hereby incorporated by reference.

CMI’s Business Opportunities Program

In addition to our web design service, we also focus on creating new business opportunities for specific companies. On December 11, 2006, CMI entered into an Agreement (the “Agreement”) with DNA Financial Systems (“DNAF”), a Hong Kong corporation founded in 2005, a copy of which was filed as Exhibit 10.1 to the Company’s Registration Statement on Form 10-SB, filed with the SEC on January 5, 2007, and is hereby incorporated by reference. DNAF is the regional solution provider for the financial industry in the Asia Pacific Region. It provides integrated solutions by offering online trading systems, Forex dealing room management systems, and corporate treasury risk management systems to banks and financial institutions. It also offers a service named Financial Web Portal Design and Hosting (“FWPDH”). FWPDH is a customized service targeted at stock exchange listed companies. Listed companies can add value to their websites by providing instant stock information to their stockholders. The FWPDH service allows stockholders to receive instant stock price information and delayed chart information on the company website. Professional web designers of DNAF are responsible for designing a tailor-made web portal to suit clients’ needs.

Pursuant to the terms of the Agreement, CMI will attempt to establish new business opportunities for DNAF by identifying, locating, and introducing potential clients (the “D-Clients”) in need of the FWPDH service, to DNAF. In our search for D-Clients, we will focus on the following areas: Hong Kong, Macau, Singapore, Australia, Taiwan and China (collectively referred to as the “Territory”). CMI plans to initially focus on the market in Hong Kong as a starting point for its business opportunities program due to the fact that management has a significant number of business connections in this area. Pursuant to the terms of the Agreement, as compensation for CMI’s efforts, CMI is entitled to 40% of the initial commission that DNAF receives from any D-Client or other business opportunity that CMI establishes for DNAF. DNAF determines the amount of the fees charged to the D-Clients. Our sole director, Mr. Wilson Cheung, has a broad network within the financial and banking industry. During the development stage, we will rely on him to contact top management personnel of local financial institutions and advise them on merits and benefits of DNAF.

CMI, as the exclusive consultant of DNAF, is responsible for the following:

(a) Locating and introducing potential customers of the Product to DNAF within the Territory and to co-ordinate with DNAF its approach to the potential customers;

(b) Preparing marketing and promotional plans to market the Product and assisting in organizing marketing events for DNAF;

(d) Conducting activities in a proper and efficient manner.

Customers and Marketing

CMI employs two business models: 1) our website design services; and 2) our business opportunities program. These models target different customer bases.

Under our first business model, we attempt to provide web design solutions to SMEs throughout Hong Kong. Our goal is to provide the T-Clients with suitable Templates for their businesses which will both enhance and strengthen their corporate image. To accomplish this goal, we plan to form strategic marketing relationships with web hosting companies throughout Hong Kong, who in turn will promote our services through their networks. We also plan to post advertisements in different online media channels, such as popular search engines and local newspaper websites. In the

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next 12 months, we plan to hire a sales and marketing expert to locate potential T-Clients and handle the coordination of work with the Freelance Designers.

Under our second business model, we attempt to identify and establish new business opportunities for various companies. As noted above, we have signed one contract with DNAF, whereby we will attempt to identify and locate D-Clients in need of the FWPDH service offered by DNAF. The corporations that we target are stock exchange listed companies that want to provide instant stock pricing and chart information to stockholders on their websites. Initially, we will rely on our director, Mr. Wilson Cheung, to provide contact information for listed companies’ owners within the Territory who may be in need of FWPDH services. Mr. Cheung will personally approach these companies in an effort to engage them as clients of DNAF.

Competition

The Company will be involved in intense competition with other business entities, many of whom have a competitive edge over CMI because of their established market presence and strong financial resources. The market for our web design services is competitive and has relatively low barriers to entry. Our competitors vary in size and in the variety of services they offer. We encounter competition from a wide variety of companies, including Internet service providers, application service providers, Internet search engine providers, and website hosting companies.

CMI also expects to encounter substantial competition in its efforts to introduce new customers to DNAF. Because CMI is still in the developmental stage, it has fewer resources and a more limited operating history than other consulting firms. Our major competitor is AAStocks International Limited, a Hong Kong company established by Tom Group in 2004. It has offices in Hong Kong, Shanghai and Shenzhen.

Generally speaking, our competitors have greater resources and managerial capabilities than CMI and are in a better position than the Company to get in touch with potential customers. CMI will rely on the existence of contacts of our director, Mr. Wilson Cheung, to locate potential customers.

Employees

Currently, we do not have any full or part-time employees. The Company is currently managed by Mr. Wilson Cheung, the President, Chief Executive Officer, Chief Financial Officer and Director of the Company. We have not signed an employment agreement with Mr. Cheung. Mr. Cheung devotes approximately 25% of his time to our operations. We presently do not have pension, health, annuity, insurance, stock options, profit sharing and similar benefit plans; however, we may adopt such plans in the future. There are presently no personal benefits available to any employees.

Reports to Security Holders

We are subject to the informational requirements of the Securities Exchange Act of 1934 which requires us to file reports, proxy statements and other information with the Securities and Exchange Commission. Such reports, proxy statements and other information may be inspected at public reference facilities of the SEC at 100 F Street, NE, Room 1580, Washington D.C. 20549. Copies of such material can be obtained from the Public Reference Section of the SEC at 100 F Street, NE, Room 1580, Washington, D.C. 20549 at prescribed rates. The public could obtain information on the operation of the public reference room by calling the Securities and Exchange Commission at 1-800-SEC-0330. Because we file documents electronically with the SEC, you may also obtain this information by visiting the SEC's Internet website at http://www.sec.gov.

ITEM 1A.

RISK FACTORS

Not Applicable.

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ITEM 1B. UNRESOLVED STAFF COMMENTS

Not Applicable.

ITEM 2.

PROPERTIES.

We have no real property and currently operate from limited office space provided by Easterly Financial Investment Limited (“Easterly”). Easterly is located at Room 306, 3rd Floor, Beautiful Group Tower, 77 Connaught Road, Central, Hong Kong. During the period from inception on August 16, 2006 to March 31, 2008, we did not pay any rent for the use of the office space provided by Easterly. From April 1, 2008 through March 31, 2009 the Company paid a monthly rental fee of US$2,564 to Easterly. The arrangement requiring the Company to pay rent to Easterly was terminated on April 1, 2009. Currently the Company does not pay any rent for use of the office space provided by Easterly. We have no plans to obtain additional office space at this moment until our business is more developed.

ITEM 3.

LEGAL PROCEEDINGS.

The Company is not a party to any significant pending legal proceedings, and no such proceedings are known to be contemplated. No director, officer or affiliate of the Company, and no owner of record or beneficial owner of more than 5.0% of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company in reference to pending litigation.

ITEM 4.

(REMOVED AND RESERVED)

PART II

ITEM 5.

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Market Information

The Company’s shares are approved for trading on the OTCBB under the symbol “CIMM.” However, there is no established or liquid trading market for the Company’s shares because very limited, if any, trading has occurred with the Company’s common stock over the last two fiscal years.

Holders

The Company's authorized capital is 100,000,000 shares of common stock with $0.001 par value. As of December 28, 2010, we had a total of 10,200,000 shares outstanding.

Dividends

The Company has not declared or paid any cash dividends on its common stock during the fiscal years ended September 30, 2010 or 2009. There are no restrictions on the common stock that limit the ability of us to pay dividends if declared by the Board of Directors and the loan agreements and general security agreements covering the Company’s assets do not limit its ability to pay dividends. The holders of common stock are entitled to receive dividends when and if declared by the Board of Directors, out of funds legally available therefore and to share pro-rata in any distribution to the stockholders. Generally, the Company is not able to pay dividends if after payment of the dividends, it would be unable to pay its liabilities as they become due or if the value of the Company’s assets, after payment of the liabilities, is less than the aggregate of the Company’s liabilities and stated capital of all classes.

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ITEM 6.

SELECTED FINANCIAL DATA.

Not Applicable.

ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.

SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS

CERTAIN STATEMENTS IN THIS REPORT, INCLUDING STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS "FORWARD LOOKING STATEMENTS", WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS "PLANS," "INTENDS," "WILL," "HOPES," "SEEKS," "ANTICIPATES," "EXPECTS "AND THE LIKE OFTEN IDENTIFY SUCH FORWARD LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD LOOKING STATEMENT. SUCH FORWARD LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF THE COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE THE COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-K AND IN THE COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.

Overview

China Multimedia, Inc. was incorporated in the State of Nevada on August 16, 2006. We are a development stage company established to: 1) provide web design solutions to companies; and 2) introduce potential business opportunities to business partners. To date, the Company’s business activities have consisted of developing its business plan, raising initial capital, and signing two agreements for the provision of the Company’s services. We have earned limited revenue from our business operations.

Web Design Solutions

On September 26, 2008, we entered into a Service Agreement with Century Health Medical Limited, a PRC company, pursuant to which CMI agreed to assist CHML with the development of its website. As consideration for our services, CHML paid us a fee of US$7,700. The term of the Service Agreement was from September 26, 2008 through December 31, 2008. As of September 30, 2009, the Company had completed rendering the services to CHML. As consideration for our services, CHML paid us a fee of approximately US$7,700. The foregoing description of Service Agreement does not purport to be complete and is qualified in its entirety by reference to the Service Agreement which was filed as Exhibit 10.2 to the Company’s Form 10-KSB filed with the Securities and

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Exchange Commission on December 30, 2008, and is hereby incorporated by reference.

CMI’s Business Opportunities Program

In addition to our web design service, we also focus on creating new business opportunities for specific companies. On December 11, 2006, we entered into an Agreement (the “Agreement”) with DNA Financial Systems (“DNAF”), a Hong Kong corporation founded in 2005, a copy of which was filed as Exhibit 10.1 to the Company’s Registration Statement on Form 10-SB, filed with the SEC on January 5, 2007, and is hereby incorporated by reference. DNAF is the regional solution provider for the financial industry in the Asia Pacific Region. Pursuant to the terms of the Agreement, we will attempt to establish new business opportunities for DNAF by identifying, locating, and introducing potential clients to DNAF. Pursuant to the terms of the Agreement, as compensation for CMI’s efforts, CMI is entitled to 40% of the initial commission that DNAF receives from any client or other business opportunity that CMI establishes for DNAF. DNAF determines the amount of the fees charged to any new clients.

Plan of Operations in the next 12 months

For the fiscal year ending September 30, 2010, the Company expects to continue with its efforts to develop its Web Design Solutions Business and its Business Opportunities Program. The Company has minimal cash and has earned limited revenue from its business operations. The Company did not earn any revenue during the fiscal year ended September 30, 2010. The Company recorded a net loss of $18,645 for the year ended September 30, 2010, compared to a net loss of $53,808 for the fiscal year ended September 30, 2009, a change of $35,163. The primary reason for the decrease in net loss experienced by the Company was attributable to the termination of sublease agreement on April 1, 2009. There is no assurance that we will achieve or sustain profitability on an annual or quarterly basis. Because the Company has been a development stage company since inception and has generated limited revenues; the Company operates with minimal overhead. The Company will need to raise additional funds, either in the form of an advance or an equity investment by the Company's President; or in the form of equity investment by outside investors, or some combination of each.

No specific commitments to provide additional funds have been made by management or other stockholders, and the Company has no current plans, proposals, arrangements or understandings to raise additional capital through the sale or issuance of additional securities prior to the location of a merger or acquisition candidate. Accordingly, there can be no assurance that any additional funds will be available to the Company to allow it to cover its expenses. Notwithstanding the foregoing, however, to the extent that additional funds are required, the Company anticipates that it will either continue to rely on its majority shareholder to pay expenses on its behalf, or it will seek to raise capital through the private placement of restricted securities. The majority shareholders are under no obligation to pay such expenses. If the Company is unable to raise additional funds, it will not be able to pursue its business plan. In addition, in order to minimize the amount of additional cash which is required in order to carry out its business plan, the Company might seek to compensate certain service providers by issuances of stock in lieu of cash.

Liquidity and Capital Resources

As of September 30, 2010, the Company remains in the development stage. As of September 30, 2010, the Company's balance sheet reflects current and total assets of $1,205 in the form of cash and cash equivalents, net liabilities and stockholders’ deficit of $38,483 respectively and accumulated deficit during the development stage of $164,744. The Company does not have sufficient assets or capital resources to pay its on-going expenses while it is seeking out business opportunities. The Company has no agreement in place with its stockholders or other persons to pay expenses on its behalf, but it is currently anticipated that the Company will rely on loans from the director, Mr. Wilson Cheung, to pay any daily operating expenses prior to any fund raising exercise. The Company anticipates that this arrangement will not change until the Company is able to consummate a business transaction.

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Off Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable.

ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The financial statements of the Company required by Article 8 of Regulation S-X are attached to this report.

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CHINA MULTIMEDIA, INC.

(A DEVELOPMENT STAGE COMPANY)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED SEPTEMBER 30, 2010

INDEX

Page

Report of independent registered public accounting firm

Balance sheets

Statements of operations and comprehensive loss

Statements of stockholders’ (deficit) equity

Statements of cash flows

Notes to financial statements

16-21

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the sole director and stockholders of China Multimedia, Inc.

(A Development Stage Company)

We have audited the accompanying balance sheets of China Multimedia, Inc. (the “Company”) as of September 30, 2010 and 2009, and the related statements of operations and comprehensive loss, stockholders’ (deficit) equity and cash flows for each of the two years in the period ended September 30, 2010, and for the period from inception on August 16, 2006 through September 30, 2010. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of September 30, 2010 and 2009, and the results of its operations and its cash flows for each of the two years in the period ended September 30, 2010 and for the period from inception on August 16, 2006 through September 30, 2010 in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As described in note 1 to the financial statements, the Company is a development stage company and had an accumulated deficit as of September 30, 2010, which raises substantial doubt about its ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

PKF

Certified Public Accountants

Hong Kong, China

December [28], 2010

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CHINA MULTIMEDIA, INC.

(A DEVELOPMENT STAGE COMPANY)

BALANCE SHEETS

AS OF SEPTEMBER 30, 2010 AND 2009


	*As of*		*As of*
	*September 30,*		*September 30,*
	*2010*		*2009*
	*US$*		*US$*
ASSETS

Current assets
Cash and cash equivalents	1,205		187

Total assets	1,205		187

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY

Current liabilities
Accrued audit fee	4,705		5,237
Amount due to a stockholder (Note 8)	34,983		14,788

Total liabilities	39,688		20,025

Stockholders’ (deficit) equity
Common stock - US$0.001 par value (Note 4) :
Authorized 100,000,000 shares in 2010 and 50,000,000 shares in 2009; 10,200,000 shares issued
and outstanding in 2010 and 2009	10,200		10,200
Additional paid-in capital	116,000		116,000
Accumulated deficit during the development stage	(164,744	)	(146,099	)
Accumulated other comprehensive income	61		61

Total stockholders’ (deficit) equity	(38,483	)	(19,838

Total liabilities and stockholders’ (deficit) equity	1,205		187

See accompanying notes to financial statements.

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CHINA MULTIMEDIA, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009

AND FROM INCEPTION ON AUGUST 16, 2006 THROUGH SEPTEMBER 30, 2010


			*For the*		*For the*
	*Cumulative*		*year ended*		*year ended*
	*total since*		*September 30,*		*September 30,*
	*inception*		*2010*		*2009*
	*US$*		*US$*		*US$*

Revenue	7,737		-		7,737

Expenses
Formation expenses	778		-		-
General and administrative expenses	171,718		18,645		61,545

Loss from operations	(164,759	)	(18,645	)	(53,808	)
Interest income	15		-		-

Loss before income taxes	(164,744	)	(18,645	)	(53,808	)
Income taxes (Note 2)	-		-		-

Net loss	(164,744	)	(18,645	)	(53,808	)

Other comprehensive income
Foreign currency translation adjustment	61		-		2

Comprehensive loss	(164,683	)	(18,645	)	(53,806	)

Net loss per share :
Basic and diluted (Note 3)	(0.05	)	(0.02	)	(0.03	)

Weighted average number of shares :
Basic and diluted	3,479,230		10,200,000		1,964,384

See accompanying notes to financial statements.

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CHINA MULTIMEDIA, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY

FROM INCEPTION ON AUGUST 16, 2006 THROUGH SEPTEMBER 30, 2010


				*Accumulated*
				*deficit*		*Accumulated*
	*Common stock*		*Additional*	*during the*		*other*
	*No. of*		*paid-in*	*development*		*comprehensive*
	*shares*	*Amount*	*capital*	*period*		*income*		*Total*
		*US$*	*US$*	*US$*		*US$*		*US$*

Issuance of common stock	1,000,000	1,000	-	-		-		1,000

Net loss	-	-	-	(23,009	)	-		(23,009	)

Foreign currency translation
adjustment	-	-	-	-		(68	)	(68	)

Balance, September 30, 2007	1,000,000	1,000		(23,009	)	(68	)	(22,077	)

Issuance of common stock	200,000	200	99,800	-		-		100,000

Net loss	-	-	-	(69,282	)	-		(69,282	)

Foreign currency translation
adjustment	-	-	-	-		127		127

Balance, September 30, 2008	1,200,000	1,200	99,800	(92,291	)	59		8,768

Share-based compensation for
issuance of restricted stocks	9,000,000	9,000	16,200	-		-		25,200

Net loss	-	-	-	(53,808	)	-		(53,808)	)

Foreign currency translation
adjustment	-	-	-	-		2		2

Balance, September 30, 2009	10,200,000	10,200	116,000	(146,099	)	61		(19,838	)

Net loss	-	-	-	(18,645	)	-		(18,645	)




Balance, September 30, 2010	10,200,000	10,200	116,000	(164,744	)	61		(38,483	)

See accompanying notes to financial statements.

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CHINA MULTIMEDIA, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF CASH FLOWS

FROM THE YEARS ENDED SEPTEMBER 30, 2010 AND 2009

AND FROM INCEPTION ON AUGUST 16, 2006 THROUGH SEPTEMBER 30, 2010


	*Cumulative*		*Year ended*		*Year ended*
	*total since*		*September 30,*		*September 30,*
	*inception*		*2010*		*2009*
	*US$*		*US$*		*US$*
Cash flows from operating activities

Net loss	(164,744	)	(18,645	)	(53,808	)
Adjustment to reconcile net loss to net cash used in operating activities:
Share-based compensation	25,200		-		25,200
Change in liability:
Accrued audit fee	4,705		(532)		1,119

Net cash used in operating activities	(134,839	)	(19,177	)	(27,489	)

Cash flows from financing activities

Proceeds from issuance of common stock	101,000				-
Advances from (repayment to) a stockholder	34,983		20,195		(20,021	)

Net cash provided by (used in) financing activities	135,983		20,195		(20,021	)

Effect of rate change on cash and cash equivalents	61				2

Net change in cash and cash equivalents	1,205		1,018		(47,508	)

Cash and cash equivalents, beginning of period/year	-		187		47,695

Cash and cash equivalents, end of period/year	1,205		1,205		187

Cash paid for :
Income taxes	-		-		-
Interest	-		-		-

See accompanying notes to financial statements.

- 15 -

CHINA MULTIMEDIA, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED SEPTEMBER 30, 2010

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Corporate information

China Multimedia, Inc. (the “Company”) was incorporated in the State of Nevada on August 16, 2006 for the purpose of exploring new business opportunities.

On December 11, 2006, the Company entered into a service agreement with DNA Financial Systems (“DNAF”) which is a regional solution provider for the financial and securities industry throughout the Asia Pacific Region. Pursuant to the agreement, the Company shall refer potential clients who wish to acquire the financial web portal design and hosting service provided by DNAF.

On September 26, 2008, the Company entered into a service agreement with Century Health Medical Limited (“CHML”) pursuant to which the Company shall provide CHML with an affordable website template that is suitable to its business. The Company completed the services and received the payment for the services before December 31, 2008.

The Company has not introduced any clients to DNAF and generated limited revenue of US$7,737 from the provision of services to CHML and is a development stage company during the reporting periods.

Basis of preparation

The Company’s financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

Continuance of operations

These financial statements are prepared on a going concern basis, which have considered the realization of assets and satisfaction of liabilities in the Company's normal course of business. As of September 30, 2010, the Company had accumulated deficit during the development stage of US$164,744 , which raised substantial doubt about the Company’s ability to continue as a going concern.

Management plans on the continuation of the Company as a going concern include financing the Company’s existing and future operations through additional issuance of common stock and/or advances from a stockholder and seeking for profitable business opportunities including the service agreement with DNAF. However, the Company has no assurance with respect to these plans. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Revenue recognition

The Company recognizes revenue from provision of services when it is realized or realizable and

- 16 -

earned. The Company considers revenue realized or realizable and earned when persuasive evidence of an arrangement exists, the services have been provided to customers, the sales price is fixed or determinable, no significant unfulfilled obligations exist and collectability is reasonably assured.

Cash and cash equivalents

Cash and cash equivalents comprise highly liquid investments with original maturity of three months or less. As of September 30, 2010, cash and cash equivalents consisted of bank balances of US$1,205 denominated in Hong Kong dollar (“HKD”).

Concentration of risk

The Company maintains a HKD savings account with a commercial bank in Hong Kong, which is financial instrument that are potentially subject to concentration of credit risk. During the reporting periods, the Company did not engage in any hedging activities.

Income taxes

The Company accounts for income tax in accordance with ASC 740 ‘’Income taxes’’ (previously SFAS No. 109), which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns. Deferred income taxes are recognized for all significant temporary differences between tax and financial statement bases of assets and liabilities. A valuation allowance is recognized on deferred tax assets when it is more likely than not that these deferred tax assets will not be realized.

Foreign currency transactions and translation

The Company keeps cash and cash equivalents and incurred expenses in HKD during the reporting periods and thus HKD is considered to be the functional currency. Transactions denominated in currencies other than HKD are translated into HKD at the applicable rates of exchange prevailing at the dates of the transactions. Monetary assets and liabilities denominated in other currencies are translated into HKD at the rates of exchange prevailing at the balance sheet date. Exchange gains and losses are included in the determination of net loss.

For financial reporting purposes, HKD has been translated into United States dollar (“US$”) as the reporting currency. Assets and liabilities are translated into US$ at the exchange rate in effect at the period end. Income and expenses are translated at average exchange rate prevailing during the period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ (deficit) equity as “Accumulated other comprehensive income”. Gains and losses resulting from foreign currency translation are included in other comprehensive loss.

Conversion of amounts from HKD into US$ has been made at the exchange rate of US$1.00 = HK$7.7667 for the year ended September 30, 2010 and US$1.00 = HK$7.759 as of September, 30, 2010, respectively.

- 17 -

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and the accompanying notes during the reporting periods. Actual results could differ from these estimates.

Stock-based compensation

The Company adopted the fair value method of accounting for share-based compensation.

Fair value of common stock granted is determined using cash flow forecasting model. Under this model, certain assumptions, including the discount rate, political and legal conditions, availability of finance, future revenue and expenses and credit risk issue are required to determine the fair value of the common stock. If different assumptions had been used, the fair value of the common stock would have been different from the amount the Company computed and recorded, which would have resulted in either an increase or decrease in the compensation expense.

Fair values of financial instruments

Financial instruments include cash and cash equivalents, accrued audit fee and amount due to a stockholder. Management of the Company does not believe that the Company is subject to significant interest, currency or credit risks arising from these financial instruments. The respective carrying values of financial instruments approximate their fair values since they are short-term in nature or they are receivable or payable on demand.

Recently issued accounting pronouncements

Accounting for Transfers of Financial Assets (Included in amended Topic ASC 860 “Transfers and Servicing”, previously SFAS No. 166, “Accounting for Transfers of Financial Assets - an Amendment of Financial Accounting Standard Board (“FASB”) Statement No. 140.”). The amended topic addresses information a reporting entity provides in its financial statements about the transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor’s continuing involvement in transferred financial assets. Also, the amended topic removes the concept of a qualifying special purpose entity, limits the circumstances in which a transferor derecognizes a portion or component of a financial asset, defines participating interest and enhances the information provided to financial statement users to provide greater transparency. The amended topic is effective for the first annual reporting period beginning November 15, 2009 and was effective for us as of May 1, 2010. The adoption of this amended topic has no material impact on the Company’s financial statements.

The FASB issued Accounting Standards Update (ASU) No. 2009-13, Revenue Recognition (Topic 605): Multiple Deliverable Revenue Arrangements - A Consensus of the FASB Emerging Issues Task Force.” This update provides application guidance on whether multiple deliverables exist, how the deliverables should be separated and how the consideration should be allocated to one or more units of accounting. This update establishes a selling price hierarchy for determining the selling price of a deliverable. The selling price used for each deliverable will be based on vendor-specific objective evidence, if available, third-party evidence if vendor-specific objective evidence is not available, or estimated selling price if neither vendor-specific or third-party evidence is available. The Company will be required to apply this guidance prospectively for revenue arrangements entered into or materially modified after January 1, 2011; however, earlier application is permitted. The adoption of this ASU update is not expected to have a material effect on the Company’s financial statements.

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The FASB issued ASU 2010-06, Improving Disclosures about Fair Value Measurements. ASU 2010-06 amends ASC Topic 820 to require the following additional disclosures regarding fair value measurements: (i) the amounts of transfers between Level 1 and Level 2 of the fair value hierarchy; (ii) reasons for any transfers in or out of Level 3 of the fair value hierarchy and (iii) the inclusion of information about purchases, sales, issuances and settlements in the reconciliation of recurring Level 3 measurements. ASU 2010-06 also amends ASC Topic 820 to clarify existing disclosure requirements, requiring fair value disclosures by class of assets and liabilities rather than by major category and the disclosure of valuation techniques and inputs used to determine the fair value of Level 2 and Level 3 assets and liabilities. With the exception of disclosures relating to purchases, sales, issuances and settlements of recurring Level 3 measurements, ASU 2010-06 was effective for interim and annual reporting periods beginning after December 15, 2009. The disclosure requirements related to purchases, sales, issuances and settlements of recurring Level 3 measurements will be effective for financial statements for annual reporting periods beginning after December 15, 2010. The adoption of ASU 2010-06 is not expected to have a material effect on the Company’s financial statements.

In February 2010, the FASB issued ASU 2010-09, Subsequent Events: Amendments to Certain Recognition and Disclosure Requirements, which amends FASB ASC Topic 855, Subsequent Events. The update provides that SEC filers, as defined in ASU 2010-09, are no longer required to disclose the date through which subsequent events have been evaluated in originally issued and revised financial statements. The update also requires SEC filers to evaluate subsequent events through the date the financial statements are issued rather than the date the financial statements are available to be issued. The Company adopted ASU 2010-09 upon issuance. This update had no material impact on the financial position, results of operations or cash flows of the Company.

INCOME TAXES

A reconciliation of income taxes at statutory rate is as follows:-


	*Cumulative*		*Year ended*		*Year ended*
	*total since*		*September 30,*		*September 30,*
	*inception*		*2010*		*2009*
	*US$*		*US$*		*US$*

Loss before income taxes	(164,744	)	(18,645	)	(53,808	)

Expected benefit at statutory rate of 15%	(24,711)	)	(2,797	)	(8,071	)
Valuation allowance	24,711		2,797		8,071

	-		-		-

In July 2006, the FASB issued ASC 740 (previously Interpretation No. 48 ‘‘Accounting for Uncertainty in Income Taxes”). This interpretation requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. The management evaluated the Company’s tax position and considered that no provision for uncertainty in income taxes is necessary as of September 30, 2010.

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Recognized deferred income tax asset is as follows:-


	*As of*	*As of*
	*September 30,*	*September 30,*
	*2010*	*2009*
	*US$*	*US$*

Operating losses available for future periods	24,711	21,914
Valuation allowance	(24,711)	(21,914	)

	-	-

As of September 30, 2010, the Company had incurred operating losses of US$164,744 which, if unutilized, will expire through to 2030 . Future tax benefits arising as a result of these losses have been offset by a valuation allowance.

As of September 30, 2010, the tax for the period from inception on August 16, 2006 through September 30, 2010 remain subject to examination by tax authorities.

NET LOSS PER SHARE

During the reporting periods, the Company did not issue any dilutive instruments. Accordingly, the reported basic and diluted loss per share is the same.

COMMON STOCK

The Company was incorporated on August 16, 2006 with authorized capital of 50,000,000 shares of common stock of US$0.001 par value. On August 16, 2006, 1,000,000 shares of common stock of US$0.001 par value totaling US$1,000 were issued for cash.

On May 23, 2008, 200,000 shares of common stock of US$0.001 par value totaling US$200 were issued to 40 investors for cash of US$100,000.

On August 31, 2009, 9,000,000 shares of common stock of US$0.001 par value totaling US$9,000 were issued to the director for his past services rendered to the Company (Note 5).

On July 14, 2010, the Company filed a Certificate of Amendment with the Nevada Secretary of State to amend the Company’s Certificate of Incorporation to increase the authorized shares of the Company’s common stock from 50,000,000 shares to 100,000,000 shares, par value US$0.001.

SHARE-BASED COMPENSATION

On August 31, 2009, the Company issued 9,000,000 shares of restricted common stock to the Company’s director for his past services rendered to the Company. The director vested in his right under the restricted shares on the date of grant.

The fair value of common stock granted was determined using cash flow projection based on

- 20 -

financial budgets approved by the management covering a fifteen-year period. The Company assumed the annual growth rate and interest rate to be 5.5% and 5% respectively for the cash flow projection.

The Company estimated the fair value of the Company’s common stock on August 31, 2009 to be US$0.0028 per share. Accordingly, the Company recorded non-cash share-based compensation expense of US$25,200 for the year ended September 30, 2009, which was included in general and administrative expenses.

As of September 30, 2010, there was no unrecognized stock-based compensation costs associated with these restricted shares granted to the director.

STOCK INCENTIVE PLAN

The Company has not established any stock incentive plan since its incorporation.

COMMITMENTS AND CONTINGENCIES

The Company had no commitments or contingent liabilities as of September 30, 2010 and 2009.

RELATED PARTY TRANSACTIONS

A stockholder, who is also the director, advanced US$34,983 to the Company to finance its working capital as of September 30, 2010. The advance is interest-free, unsecured and repayable on demand.

SUBSEQUENT EVENTS

The Company has evaluated all subsequent events through the date these financial statements were issued, and determined that there were no subsequent events or transactions that would require recognition or disclosures in the financial statements.

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ITEM 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

For the fiscal year ended September 30, 2010, there were no disagreements with our accountants on accounting and financial disclosure.

ITEM 9A. CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean the company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported with the time periods specified. Our chief executive officer and chief financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives.

Internal Control Over Financial Reporting

The management of the Company is responsible for the preparation of the financial statements and related financial information appearing in this Annual Report on Form 10-K. The financial statements and notes have been prepared in conformity with accounting principles generally accepted in the United States of America. The management of the Company also is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. A company's internal control over financial reporting is defined as a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded

- 22 -

as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

Management, including the chief executive officer and chief financial officer, does not expect that the Company's internal controls will prevent all error. Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable, not absolute, assurance that the objectives of the control system are met and may not prevent or detect misstatements. Further, over time control may become inadequate because of changes in conditions or the degree of compliance with the policies or procedures may deteriorate.

With the participation of the chief executive officer and chief financial officer, our management evaluated the effectiveness of the Company's internal control over financial reporting as of September 30, 2010 based upon the framework in Internal Control –Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on that evaluation, our management has concluded that, as of September 30, 2010, the Company's internal control over financial reporting was effective.

This annual report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit us to provide only management's report in this Annual Report on Form 10-K.

There was no change in the Company's internal control over financial reporting during the last fiscal quarter, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

ITEM 9B. OTHER INFORMATION.

None.

PART III

ITEM 10.

DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE.

Directors and Executive Officers

The respective positions and ages of our directors and executive officers and the year in which the director was first elected are shown in the following table. The director has been elected to hold office until the next annual meeting of stockholders and thereafter until his successor is elected and has qualified. Vacancies in the existing Board of Directors are filling by majority vote of the remaining Directors. There are no agreements or understandings for any officer or director to resign at the request of another person and no officer or director is acting on behalf of or will act at the direction of any other person.

- 23 -



Name	Age	Position	Director or Officer Since
Wilson Cheung	35	President, Chief Executive Officer, Chief Financial Officer, Director	August 2006
Vivian Wing Yee Poon	28	Secretary	February 2008

We have not had standing audit, nominating or compensation committees of the Board of Directors or committees performing similar functions. All such applicable functions have been performed by the Board of Directors as a whole.

Biographical Information

Mr. Wilson Cheung.

Mr. Wilson Cheung is the President, Chief Executive Officer, Chief Financial Officer and Director of CMI. His responsibilities include general management and financial management. Mr. Cheung also holds the positions of Treasurer and Chief Financial Officer. Mr. Cheung has more than ten years working experience in the investment banking and corporate finance areas in Hong Kong markets. Mr. Cheung has been the Director and President of Super Luck, Inc., a Delaware corporation that resells a financial software product, since August 2005. In July 2005, he became a managing director of Easterly Financial Investment Limited, a Hong Kong corporation, which provides financial advisory services in the Asia Pacific region. Mr. Cheung was with First Asia Finance Group Limited from December 2001 to July 2005. Mr. Cheung worked as a junior executive officer in the corporate finance department with Oriental Patron Asia Limited, an investment bank specializing in corporate finance, from September 1999 to September 2000; as an Assistant Manager with Kingsway Capital Limited, an investment bank specializing in corporate finance from October 2000 to May 2001; and as a Manager with Core Pacific - Yamaichi International (H.K.) Limited in Hong Kong from June 2001 to November 2001, engaging in the provision of corporate finance, financial advisory, and securities placement and underwriting services . Mr. Cheung holds a Bachelor of Business degree from the Swinburne University of Technology in Melbourne, Australia. He obtains an EMBA in the Chinese University of Hong Kong in 2006. Currently, Mr. Cheung devotes 25% of his time to CMI. He also devotes 75% of his time to Market Data Consultants, Inc, Super Luck, Inc, DNA Systems, Inc. and Easterly Financial Investment Limited in even proportion. These companies are not in the same business as CMI and there would be no conflicts among CMI and these entities. Since July 2005, Mr. Cheung has been the managing director of Easterly Financial Investment Limited.

Ms. Vivian Wing Yee Poon. – Ms. Vivian Wing Yee Poon has been the Secretary of the Company since February 2008. She is responsible for the general administrative work and management of the Company. Ms. Poon has been working in Easterly Financial Investment Limited, a Hong Kong corporation, which provides financial advisory services in the Asia Pacific region since January 2007. From August 2005 to October 2006, Ms. Poon worked as a Department Officer in Hospital Authority. Ms. Poon is currently the Secretary of two other reporting companies under the Securities Exchange Act of 1934: i) since April 2008, she has been the Secretary of Market Data Consultants, Inc. a Delaware corporation which is in business of reselling a market data management software products. ii) since August 2008, she has been the Secretary of DNA Systems, a Nevada corporation which is in business of providing venues for professional organizations to organize conferences, seminars, corporate training, and other events. She has also been the Chief Executive Officer of DNA Systems, Inc since October 2007. Her responsibilities are to oversee the general and administrative tasks. Ms. Poon graduated from the University of Hong Kong with a Bachelor Degree in Science in 2005.

- 24 -

Family Relationships

There are no family relationships between any of the current director or officers of the Company.

Involvement in Certain Legal Proceedings

None of our officers, director, promoters or control persons has been involved in the past five (5) years in any of the following:

(1)

Any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;

(2)

Any conviction in a criminal proceedings or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

(3)

Being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or

(4)

Being found by a court of competent jurisdiction (in a civil action), the SEC or the U.S. Commodity Futures Trading Commission to have violated a federal or state securities laws or commodities law, and the judgment has not been reversed, suspended, or vacated.

Directorships

Wilson Cheung is director of Super Luck, Inc., Market Data Consultants, Inc and DNA Systems, Inc. He files reports under the Securities Exchange Act of 1934.

Audit Committee Financial Expert

The Company does not currently have an audit committee financial expert.

Section 16(a) Beneficial Ownership Compliance

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires the Company's officers and director, and persons who own more than ten percent of a registered class of the Company's equity securities, to file reports of ownership of Form 3 and changes in ownership on Form 4 or Form 5 with the Securities and Exchange Commission. Such officers, directors and 10% stockholders are also required by SEC rules to furnish the Company with copies of all Section 16(a) forms they file. Based solely on its review of the copies of such forms received by it, the Company believes that, during the fiscal year ended September 30, 2010, all Section 16(a) filing requirements applicable to its officers, director and 10% stockholders were satisfied.

Code of Ethics

The Company does not have a code of ethics, and the current management has not yet adopted a code of ethics. The Company intends to adopt a code of ethics in the near future.

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ITEM 11.

EXECUTIVE COMPENSATION.

Executive Compensation

The following table sets forth, for the years indicated, all compensation paid, distributed or accrued for services, including salary and bonus amounts, rendered in all capacities by the Company’s chief executive officer , chief financial officer and all other executive officers who received or are entitled to receive remuneration in excess of $100,000 during the stated periods.

Summary Compensation Table




						Non-Equity	Non-qualified
						Incentive	Deferred
				Stock	Option	Plan	Compensation	All other
Name and		Salary	Bonus	Award(s)	Award(s)	Compensation	Earnings	Compensation	Total
Principal Position	Year	($)	($)	($)	($)	(#)	($)	($)	($)
Wilson Kin Cheung, CEO, CFO	2010 2009 2008	$nil $nil $nil	-- -- --	-- 25,200(1) --	-- -- --	-- -- --	-- -- --	-- -- --	-- $25,200 $nil

(1)

This amount represents 9,000,000 shares of the Company’s common stock that were issued in exchange for services rendered as an officer and director of the Company, which services were valued at $25,200, based on the share price of $0.0028 for the 9,000,000 shares of common stock at the grant date.

Option Grants in Last Fiscal Year

There were no options granted to any of the named executive officers during the fiscal year ended September 30, 2010.

Equity Compensation Plan Information

The Company currently does not have any equity compensation plans.

Director Compensation

We do not currently compensate our directors for their services as directors. Directors are reimbursed for their reasonable out-of-pocket expenses incurred with attending board or committee meetings.

The following table provides summary information concerning compensation awarded to, earned by, or paid to any of our directors for all services rendered to the Company in all capacities for the fiscal year ended September 30, 2010.


					Change in
	Fees				Pension
	Earned			Non-Equity	Value and
	And			Incentive	Non-qualified
	Paid in	Stock	Option	Plan	Compensation	All other
Name and	Cash	Award(s)	Award(s)	Compensation	Earnings	Compensation	Total
Principal Position	($)	($)	($)	(#)	($)	($)	($)

Wilson Kin Cheung	$nil	--	--	--	--	--	$--

- 26 -

ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Security Ownership of Certain Beneficial Owners

The following table sets forth, as of December 28, 2010, the ownership of each person known by the Company to be a beneficial owner of 5% or more of its common stock. Except as otherwise noted, each person listed below is a sole beneficial owner of the shares and has sole investment and voting power as to such shares. No person listed below has any options, warrants or other right to acquire additional securities of the Registrant except as may be otherwise noted.


Title of Class	Name	Number of Shares Beneficially Owned	Percent of Class

Common	Josephine Wai Wai Cheung	1,000,000	9.8%

Security Ownership of Management

The following table sets forth, as of December 28, 2010, the ownership of each executive officer and director of the Company, and of all executive officers and directors of the Registrant as a group. Except as otherwise noted, each person listed below is a sole beneficial owner of the shares and has sole investment and voting power as to such shares. No person listed below has any options, warrants or other right to acquire additional securities of the Company except as may be otherwise noted.


Title of Class	Name	Number of Shares Beneficially Owned	Percent of Class

Common	Wilson Cheung ⁽¹⁾	8,640,000	84.71%
Common	All Officers and Director as a Group (1 in number)	8,640,000	84.71%

(1)

Officer or Director of the Company

Related Transactions

No officer, director, promoter, or affiliate of CMI has or proposes to have any direct or indirect material interest in any asset proposed to be acquired by CMI through security holdings, contracts, options, or otherwise.

We have adopted a policy under which any consulting or finder's fee that may be paid to a third party for consulting services to assist management in evaluating a prospective business opportunity would be paid in stock rather than in cash. Any such issuance of stock would be made on an ad hoc basis. Accordingly, we are unable to predict whether, or in what amount, such a stock issuance might be made. CMI may seek to acquire a business that has experience in marketing and promoting the use of

- 27 -

different kinds of financial software and has established a professional sales team with personnel who are knowledgeable in reselling a variety of financial software products. In the event that an acquisition candidate purchases the shares of CMI, it is more likely than not that such a candidate would pay a price higher than the price originally paid by our current stockholders. However, there is no guarantee that the stockholders will make a profit on such a transaction. Any decision to sell the shares of CMI could be made at the sole discretion of the current majority stockholder without the vote of the purchasers in this offering.

It is not currently anticipated that any salary, consulting fee, or finder's fee shall be paid to any of CMI's director or executive officers or to any other affiliate of us except as described under "Executive Compensation" above.

CMI currently operates from limited office space provided by Easterly Financial Investment Limited (“Easterly”), a company with which our chief executive officer and director is affiliated. Easterly is located at Room 306, 3^rdFloor, Beautiful Group Tower, 77 Connaught Road, Central, Hong Kong. During the period from inception on August 16, 2006 to March 31, 2008, we did not pay any rent for the use of the office space provided by Easterly. Beginning on April 1, 2008, the Company started paying a monthly rental fee of $2,564 (equivalent to HKD 20,000). The sublease agreement was terminated on March 31, 2009. Currently the CMI does not pay any rent to Easterly for use of the office space provided by Easterly.

Although management has no current plans to cause us to do so, it is possible that we may enter into an agreement with an acquisition candidate requiring the sale of all or a portion of the Common Stock held by CMI’s current stockholder to the acquisition candidate or principals thereof, or to other individuals or business entities, or requiring some other form of payment to our current stockholders, or requiring the future employment of specified officers and payment of salaries to them. A sale of securities by our current stockholders to an acquisition candidate might be at a price higher than that originally paid by current stockholder but may or may not be higher than the price paid by subscribers to this offering. Any payment to current stockholder in the context of an acquisition involving CMI would be determined entirely by the largely unforeseeable terms of a future agreement with an unidentified business entity. Any decision to sell the shares of CMI could be made at the sole discretion of the current majority stockholder without the vote of the purchasers in this offering.

Aside from the foregoing, there were no material transactions, or series of similar transactions, during our Company’s last fiscal year, or any currently proposed transactions, or series of similar transactions, to which our Company was or is to be a party, in which the amount involved exceeded the lesser of $120,000 or one percent of the average of the small business issuer’s total assets at year-end for the last three completed fiscal years and in which any director, executive officer or any security holder who is known to us to own of record or beneficially more than five percent of any class of our common stock, or any member of the immediate family of any of the foregoing persons, had an interest.

Director Independence

The NASDAQ Stock Market has instituted director independence guidelines that have been adopted by the Securities & Exchange Commission. These guidelines provide that a director is deemed “independent” only if the board of directors affirmatively determines that the director has no relationship with the company which, in the board’s opinion, would interfere with the director’s exercise of independent judgment in carrying out his or her responsibilities. Significant stock ownership will not, by itself, preclude a board finding of independence.

For NASDAQ Stock Market listed companies, the director independence rules list six types of

- 28 -

disqualifying relationships that preclude an independence filing. The Company’s board of directors may not find independent a director who:

is an employee of the company or any parent or subsidiary of the company;

accepts, or who has a family member who accepts, more than $60,000 per year in payments from the company or any parent or subsidiary of the company other than (a) payments from board or committee services; (b) payments arising solely from investments in the company’s securities; (c) compensation paid to a family member who is a non-executive employee of the company’ (d) benefits under a tax qualified retirement plan or non-discretionary compensation; or (e) loans to directors and executive officers permitted under Section 13(k) of the Exchange Act;

is a family member of an individual who is employed as an executive officer by the company or any parent or subsidiary of the company;

is, or has a family member who is, a partner in, or a controlling shareholder or an executive officer of, any organization to which the company made, or from which the company received, payments for property or services that exceed 5% of the recipient’s consolidated gross revenues for that year, or $200,000, whichever is more, other than (a) payments arising solely from investments in the company’s securities or (b) payments under non-discretionary charitable contribution matching programs;

is employed, or who has a family member who is employed, as an executive officer of another company whose compensation committee includes any executive officer of the listed company; or is, or has a family member who is, a current partner of the company’s outside auditor, or was a partner or employee of the company’s outside auditor who worked on the company’s audit.

Based upon the foregoing criteria, our Board of Directors has determined that Wilson Kin is not an independent director under these rules as he is also employed by the Company as its Chief Executive Officer, Chief Financial Officer, and President.

ITEM 14.

PRINCIPAL ACCOUNTING FEES AND SERVICES

Audit Fees

The aggregate fees billed and billable by PKF Hong Kong, Certified Public Accountants, CMI’s independent auditors, for the audit of CMI’s annual financial statements and reviews of quarterly financial statements for the years ended September 30, 2010 and 2009 were $8,717 and $9,503 respectively.

Audit Related Fees

PKF Hong Kong, Certified Public Accountants, did not bill the Company any amounts for assurance and related services that were related to its audit or review of the Company’s financial statements during the fiscal years ended 2010 and 2009.

Tax Fees

PKF Hong Kong, Certified Public Accountants, did not bill the Company any amount for tax compliance, advice and planning for the fiscal years ended 2010 and 2009.

All Other Fees

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PKF Hong Kong, Certified Public Accountants, did not bill the Company for any products and services other than the foregoing during the fiscal years ended 2010 and 2009.

Audit Committees Pre-approval Policies and Procedures

The Company does not have an audit committee per se. The current board of directors functions as the audit committee.

ITEM 15.

EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(a)

Audited Financial Statements for Fiscal Year Ended September 30, 2010.

(b)

Exhibits.


3.1	Articles of Incorporation (herein incorporated by reference from filing on Form 10SB12G/A filed by CMI on April 25, 2007.)
3.2	3.2 Bylaws (herein incorporated by reference from filing on Form 10SB12G/A filed by CMI on April 25, 2007.)
10.1	Contract with DNA Financial Systems signed on December 11, 2006 (incorporated by reference from exhibit to Form 10-SB filed with the Securities and Exchange Commission on January 5, 2008.)
10.2	Service Agreement dated September 26, 2008, by and between Century Health Medical Limited and China Multimedia, Inc. (incorporated by reference from exhibit to Form 10-KSB filed with the Securities and Exchange Commission on December 30, 2008.)
31.1	Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

* Filed Herewith

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CHINA MULTIMEDIA, INC.

By: /s/ Wilson Cheung

Wilson Cheung, Chief Financial Officer

Date: December 28, 2010

In accordance with Section 13 or 15(d) of the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

By: /s/ Wilson Cheung

Wilson Cheung, Chief Executive Officer

Date: December 28, 2010

By: /s/ Wilson Cheung

Wilson Cheung, Chief Financial Officer

Date: December 28, 2010

By: /s/ Wilson Cheung

Wilson Cheung, Director

Date: December 28, 2010

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CHINA MULTIMEDIA, INC. 10-K