BUSINESS ORGANIZATION

TEC Technology, Inc. (formerly known as Highland Ridge, Inc. (the “Company” or “HGHN”) (formerly known as, Sea Green, Inc., Americom Networks Corp. and Americom Networks International, Inc.) was incorporated on July 22, 1988 in the State of Delaware.Delaware, United States of America. (the “Company” or “TEC Holding”). On June 9, 2010, the Company changed its name from Highland Ridge, Inc. to TEC Technology, Inc.

On May 4, 2010, the Company entered intocompleted a Share Exchange Agreement, withreverse acquisition transaction pursuant to a share exchange agreement among the Company, TEC Technology Limited, (“TEC”), a private corporation under the Companies Laws of the Hong Kong Special Administrative Region of the People’s Republic of Chinalimited company (“Hong Kong”TECT”), and itsTECT’s sole stockholder, Mr. Hua Peng Phillip Wong, pursuant to whichwhereby the Company acquired 10,000 shares of TEC, representing 100% of the issued and outstanding capital stock of TECT in exchange for 19,194,421 shares of the Company’s common stock, par value $0.001 (the “Share Exchange”), which constituted 63.6% of the Company’s issued and outstanding capital stock on a fully-diluted basis as of and immediately after the consummation of the transactions contemplated by the Share Exchange Agreement.reverse acquisition. As a result of the Share Exchange, TECacquisition of TECT, the Company now owns all of the issued and its subsidiaries,outstanding capital stock of TECT, which in turn owns Anhui TEC Tower Co., LtdLtd. (“ATEC”), Zhejiang TEC Tower Co., Limited (“ZTEC”); and Shuncheng Taida Technology Co., LtdLtd. (“Shuncheng Taida”STT”). ATEC currently owns 90% of Zhejiang TEC Tower Co., becameLtd. (“ZTEC”). For accounting purposes, the Company’s subsidiaries.

The Share Exchange has been accounted forshare exchange transaction with TECT was treated as a reverse acquisition and recapitalization of TECT, with TECT as the Company whereby the Company (the legal acquirer) is considered the accounting acquireeacquirer and TEC (the legal acquiree) is consideredUS as the accounting acquirer. As a result of this transaction, the Company is deemed to be a continuationacquired party. Upon completion of the business of TEC. Accordingly, the accompanying interim condensed consolidated financial statements are thoseexchange, TECT became a wholly owned subsidiary of TEC US. On the accounting acquirer. The historical stockholders’ equity of the accounting acquirer prior to the share exchange has been retroactively restated as if the Share Exchange occurred as of the beginning of the first period presented..

TEC was organized on November 24, 2009, and serves as a holding company for three operating subsidiaries, ATEC, ZTEC and Shuncheng Taida (the “Operating Subsidiaries”), based in the People’s Republic of China (“PRC”). The Operating Subsidiaries are (or will be) engaged in the design, production and sale of transmission towers for telecommunications service providers and electric utilities. On November 24, 2009,same date, Mr. Chun Lu, Chairman of the Company’s ChairmanBoard and Chief Executive Officer of TEC US, entered into an option agreement with TECTECT and Mr. Hua Peng Phillip Wong, the Company’s controlling stockholder, pursuant to which Mr. Lu was granted an option to acquire 17,797,372 shares of the Company’s common stock currently owned by Mr. Wong for an aggregate exercise price of $1,000,000. Mr. Lu may exercise this option, in whole but not in part, during the period commencing on the 365^th365th day following of the date of the option agreement and ending on the second anniversary of the date thereof contemplated by the Share Exchange Agreement, which effected a reverse acquisition of the TEC.thereof.

TECT was organized as a private corporation, under the Companies Laws of the Hong Kong on November 11, 2009. It was principally established to serve as an investment holding company and its operations are carried out in Hong Kong. On February 22, 2010, TECT entered into an equity transfer agreement with Mr. Chun Lu, the sole shareholder of ATEC. The transfer was approved by the Department of Commerce of Anhui Province on March 2, 2010. This business combination was accounted for as entities under common control because the majority shareholders of TECT and ATEC were the same person.

ATEC is a private corporation, incorporated under the laws of the People’s Republic of China (“PRC”) on July 3, 2007. ATEC’s principal activities are the development and manufacturing of mobile communication steel towers, microwave towers, angle steel towers, steel pipe towers and transmission cable towers.

ZTEC is a PRC limited company,was established on December 7, 2009 pursuant to an agreement betweenas a PRC limited company with ATEC owning 90% of equity interest and Ms. Yiping Zhu, a PRCan individual, wherein ATEC agreed to contribute 90% of the registered capital for a 90% equity interest in ZTEC and Ms. Zhu agreed to contribute the capital forowning the remaining 10% equity interest. ZTEC’s production facility is still under construction and it has not yet commenced operations. ZTEC’s main business will include the development and manufacturing of mobile communication steel towers, microwave towers, angle steel towers, steel pipe towers and power transmission cable towers.

Shuncheng TaidaSTT was established as a wholly-owned TEC subsidiaryincorporated in the PRC on January 10, 2010, however, its capital20, 2010. STT has not yet been introducedcommenced operations and it has not yet commenced operations. Shuncheng Taida’sits main business will include engineering consultancy and design of mobile communication steel towers, microwave towers, and power transmission towers.

On March 10, 2010, TEC consummated an Equity Ownership Transfer Agreement (the “Transfer Agreement”), dated February 22, 2010, with Mr. Chun Lu, the sole shareholder of ATEC at the time, pursuant to which TEC acquired 100% of the equity interest in ATEC. This acquisition was accounted for as a reverse merger with TEC being the legal acquirer. The accounting treatment for this transaction is recapitalization of ATEC with TEC’s common stock.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

FISCAL YEAR

The Company has adopted December 31 as its fiscal year end.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

REPORTING ENTITIES

The accompanying consolidated financial statements include the following entities:

BASIS OF CONSOLIDATION AND PRESENTATION

The consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). In the opinion of management, the accompanying balance sheets, and statements of income, and cash flows include all adjustments, consisting only of normal recurring items, considered necessary to give a fair presentation of operating results for the periods presented. All material inter-companyinter- company transactions and balances have been eliminated in consolidation.

On February 22, 2010, TECTECT entered into an Equity Ownership Transfer Agreement (the “Transfer Agreement”)equity transfer agreement with Mr. Chun Lu, the existing sole shareholder of ATEC. The transfer was approved by the Department of Commerce of Anhui TEC Tower Co., Ltd (“ATEC”). OnProvince on March 10, 2010, the TEC acquired 100% of the outstanding shares. This acquisition2, 2010. The business combination was accounted for as a reverse merger with TEC Technology Limited beingentities under common control because the legal acquirer. The accounting treatment for this transaction is essentially recapitalizationmajority shareholders of TECT and ATEC with TEC’s common stock.were the same people.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

REVENUE RECOGNITION

The Company’s revenue recognition policies are in compliance with ASC 605. Sales revenue is recognized when all of the following have occurred: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) the ability to collect is reasonably assured. These criteria are generally satisfied at the time of shipment when risk of loss and title passes to the customer. For international sales, the revenue recognition criteria are generally satisfied under Free on Board (“FOB”) and Cost Insurance Freight (“CIF”) terms, in which the Company’s responsibility ends once the goods clear the port of shipment.

Technical consulting service income is recognized when the relevant service is rendered.

Government grants represent local authority grants to the company for infrastructure development and the revenue is recognized on cash basis when the local authority approves the grant to the company.

The Company recognizes revenue when the goods are delivered and title has passed. Sales revenue represents the invoiced value of goods, net of a value-added tax (VAT). All of the Company’s products that are sold in the PRC are subject to a Chinese value-added tax at a rate of 17% of the gross sales price or at a rate approved by the Chinese local government. This VAT liability may be offset by the VAT paid by the Company on raw materials and other materials included in the cost of producing their finished product.

SHIPPING AND HANDLING

Shipping and handling costs related to costs of goods sold are included in cost of sales and selling and marketing expenses which totaled $282,189$212,124 and $40,875$282,189 for the three months ended September 30, 2011 and 2010, and September 30, 2009.respectively. Shipping and handling costs amounted to $571,761$577,229 and $135,659$567,990 for the nine months ended September 30, 20102011 and September 30, 2009, respectively.2010.

ADVERTISING

Advertising costs are expensed as incurred and totaled $1,206$6,915 and $59$1,206 for the three months ended September 30, 2011 and 2010, and September 30, 2009.respectively. Advertising costs amounted toare expensed as incurred and totaled $6,918 and $3,788 and $2,208 for the nine months ended September 30, 20102011 and September 30, 2009,2010, respectively.

RESEARCH AND DEVELOPMENT COSTS

Research and development costs include costs incurred to develop new products and are charged to operations when incurred. These costs totaled $nil$0 as incurred for the three months ended September 30, 2011 and 2010 and September 30, 2009. Research and development costs amounted to $nil for the nine months ended September 30, 2011 and 2010, and September 30, 2009.respectively. The costs for development of new products and substantial enhancements to existing products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized.

GOVERNMENT GRANTS

Government grants represent local authority grants to the Company for infrastructure development. It is recognized on cash basis when the local authority approves the grant to the Company.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FOREIGN CURRENCY TRANSLATION AND OTHER COMPREHENSIVE INCOME

The reporting currency of the Company is the U.S. dollars.United States Dollars ($). The functional currency of the Company is United States Dollars ($) and the functional currency of its subsidiaries ATEC, ZTEC, STT and TECT is Chinese Renminbi (RMB).

For those entities whose functional currency is other than the U.S. dollars, all assets and liabilities are translated into U.S. dollars at the exchange rate on the balance sheet date; shareholders’ equity is translated at historical rates and items in the statements of income and of cash flows are translated at the average rate for the period. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported in the statement of cash flows will not necessarily agree with changes in the corresponding balances in the balance sheet. Translation adjustments resulting from this process are included in accumulated other comprehensive income in the statement of shareholders’ equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

Foreign currency translation gain included in accumulated other comprehensive income amounted to $380,282$1,133,747 as of September 30, 20102011 and $327,900$683,041 as of December 31, 2009.2010. The balance sheet amounts with the exception of equity atas of September 30, 20102011 and December 31, 20092010 were translated at RMB6.68RMB6.40 to $1.00 and RMB6.82RMB6.61 to $1.00, respectively. The average translation rates applied to the statements of income and of cash flows for the three and nine months ended September 30, 20102011 and September 30, 20092010 were RMB6.51 to $1.00 and RMB6.80 to $1.00, and RMB6.85 to $1.00.respectively.

BUSINESS COMBINATION

The Company adopted the accounting pronouncements relating to business combinations (primarily contained in ASC Topic 805 “Business Combinations”), including assets acquired and liabilities assumed arising from contingencies. These pronouncements established principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquire as well as provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. In addition, these pronouncements eliminate the distinction between contractual and non- contractualnon-contractual contingencies, including the initial recognition and measurement criteria and require an acquirer to develop a systematic and rational basis for subsequently measuring and accounting for acquired contingencies depending on their nature. The Company’sOur adoption of these pronouncements will have an impact on the manner in which the Company accountswe account for any future acquisitions.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

CAPITALIZED INTERNAL-USE SOFTWARE

The Company capitalizes certain costs incurred to purchase or create internal-use software in accordance with ASC Topic 350-40, “Internal Use Software.”. To date, such costs have included external direct costs of materials and services incurred in the implementation of internal-use software and are included within computer hardware and software. Once the capitalization criteria have been met, such costs are classified as software and are amortized on a straight-line basis over five years once the software has been put into use. Subsequent additions, modifications, or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

CONCENTRATIONS OF CREDIT RISK (CONTINUED)

The company had 5 major customers whose accounts receivable balance individually represented of the Company’s total accounts receivable as follows:

EARNINGS PER SHARE

As prescribed in ASC Topic 260 “Earning per Share”,” Basic Earnings per Share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants. The effect of stock options on diluted EPS is determined through the application of the treasury stock method, whereby proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company’s common stock at the average market price during the period.

For the three months ended September 30, 20102011 and September 30, 2009,2010, basic and diluted earnings per share amount to $0.03$0.05 and $0.07,$0.03, respectively. For the nine months ended September 30, 20102011 and September 30, 2009,2010, basic and diluted earnings per share amount to $0.13$0.06 and $0.13, respectively.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:

Level 1   Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2   Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting.

Level 3   Pricing inputs that are generally observable inputs and not corroborated by market data.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)

The carrying amounts of the Company’s financial assets and liabilities, such as cash and accrued expenses, approximate their fair values because of the short maturity of these instruments.

The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value as of September 30, 2011 or December 31, 2010, nor gains or losses are reported in the statement of income and comprehensive income that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date for the fiscal periods ended September 30, 2011 or 2010.

STOCK-BASED COMPENSATION

The Company adopted ASC Topic 718, “Compensation – Stock Compensation” and ASC Topic 505-50 “Equity – Based Payments to Non-Employees” using the fair value method. Under ASC Topic 718 and ASC Topic 505-50, stock compensation expenses is measured at the grant date on the value of the option or restricted stock and is recognized as expenses, less expected forfeitures, over the requisite service period, which is generally the vesting period.

On June 15, 2010, the Company issued, a warrant to purchase 80,000 shares at a price of $2.00 per share. The warrant vests in four equal installments on June 30^th, September 30^th, December 31^st2010 and March 31^stof 2011. In the event that the agreement is terminated prior to the vesting date, such portion of the warrant shall not vest and the holder of the warrant shall not be entitled to exercise such unvested portion of the warrant. The warrant expires on June 15, 2015.

RETIREMENT BENEFIT COSTS

PRC state managed retirement benefit programs are defined contribution programs and the payments to these programs are charged as expenses when employees have rendered service entitling them to the contribution.

ACCUMULATED OTHER COMPREHENSIVE INCOME

ASC Topic 220 “Comprehensive Income”establishes standards for reporting and displaying comprehensive income and its components in financial statements. Comprehensive income is defined as the change in stockholders’ equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The comprehensive income for all periods presented includes both the reported net income and net change in cumulative translation adjustments.

In June 2009, the FASB approved the “FASB Accounting Standards Codification” (the “Codification”) as the single source of authoritative nongovernmental U.S. GAAP to be launched on July 1, 2009. The Codification does not change current U.S. GAAP, but is intended to simplify user access to all authoritative U.S. GAAP by providing all the authoritative literature related to a particular topic in one place. All existing accounting standard documents will be superseded and all other accounting literature not included in the Codification will be considered non-authoritative. The Codification is effective for interim and annual periods ending after September 15, 2009.

In August 2009, the FASB issued the FASB Accounting Standards Update No. 2009-04 “Accounting for Redeemable Equity Instruments - Amendment to Section 480-10-S99” which represents an update to section 480-10-S99, distinguishing liabilities from equity, per EITF Topic D-98, Classification and Measurement of Redeemable Securities. The Company does not expect the adoption of this update to have a material impact on its consolidated financial position, results of operations or cash flows.

In August 2009, the FASB issued the FASB Accounting Standards Update No. 2009-05 “Fair Value Measurement and Disclosures Topic 820 – Measuring Liabilities at Fair Value” , which provides amendments to subtopic 820-10, Fair Value Measurements and Disclosures – Overall, for the fair value measurement of liabilities. This update provides clarification that in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more of the following techniques: 1. A valuation technique that uses: a. The quoted price of the identical liability when traded as an asset b. Quoted prices for similar liabilities or similar liabilities when traded as assets. 2. Another valuation technique that is consistent with the principles of topic 820; two examples would be an income approach, such as a present value technique, or a market approach, such as a technique that is based on the amount at the measurement date that the reporting entity would pay to transfer the identical liability or would receive to enter into the identical liability. The amendments in this update also clarify that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability. The amendments in this update also clarify that both a quoted price in an active market for the identical liability when traded as an asset in an active market when no adjustments to the quoted price of the asset are required are Level 1 fair value measurements. The Company does not expect the adoption of this update to have a material impact on its consolidated financial position, results of operations or cash flows

In September 2009, the FASB issued the FASB Accounting Standards Update No. 2009-08 “Earnings Per Share – Amendments to Section 260-10-S99,” which represents technical corrections to topic 260-10-S99, Earnings per share, based on EITF Topic D-53, Computation of Earnings Per Share for a Period that includes a Redemption or an Induced Conversion of a Portion of a Class of Preferred Stock and EITF Topic D-42, The Effect of the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock . The Company does not expect the adoption of this update to have a material impact on its consolidated financial position, results of operations or cash flows.

In September 2009, the FASB issued the FASB Accounting Standards Update No. 2009-09 “Accounting for Investments -Equity Method and Joint Ventures and Accounting for Equity-Based Payments to Non-Employees.” This update represents a correction to Section 323-10-S99-4, “Accounting by an Investor for Stock-Based Compensation Granted to Employees of an Equity Method Investee.” Additionally, it adds observer comment, “Accounting Recognition for Certain Transactions Involving Equity Instruments Granted to Other Than Employees” to the Codification. The Company does not expect the adoption to have a material impact on its consolidated financial position, results of operations or cash flows.

INVENTORY

Inventory consists of the followings:

DEPOSITS AND PREPAID EXPENSES

Guarantee deposits are provided to financial institutions in return for issuance of a corporate guarantee to financiers. Advances to suppliers are down payments or deposits for inventory purchases. The inventory and services are normally delivered and rendered within one to two months after the payments. ZTEC acquired land use rights for new land in the PRC and paid deposits for the acquisition of land use rights, ZTEC also prepaid land leveling, design fees and stamp duty fees.

OTHER RECEIVABLES

CONSTRUCTION IN PROGRESS

OTHER PAYABLES AND ACCRUED EXPENSES

Due to former sole stockholder and his affiliates, due to third parties and employees are unsecured, interest free and without a fixed term of repayment and are for unspecific business purposes.

TAXES PAYABLE