Deer Consumer Products (DEER) 8-K Entry into a Material Definitive Agreement

Tag Events Corp.

and Deer International Group Limited

Pro Forma Combined Financial Statements

(unaudited)

Contents

	Page
Pro Forma Combined Financial Statements:
Pro Forma Combined Balance Sheet
as of June 30, 2008 (unaudited)	F-1
Pro Forma Combined Statements of Operations
for the period ended June 30, 2008 (unaudited)	F-2
Pro Forma Combined Statements of Operations
for the period ended September 30, 2007 (unaudited)	F-3
Notes to Pro Forma Combined Financial Statements (unaudited)	F-4

Tag Events Corp.

and Deer International Group Limited

Pro Forma Combined Balance Sheet

June 30, 2008

(unaudited)

	Tag Events			Deer International		Pro forma			Pro forma
	Corp. (1)			Group Limited (2)		Adjustments			Combined
	(historical)			(historical)
ASSETS
CURRENT ASSETS
Cash	$	13,085		$	402,903	$	-		$	415,988
Restricted cash		-			603,757		-			603,757
Accounts receivable, net		-			4,894,652		-			4,894,652
Advances to suppliers		-			2,644,024		-			2,644,024
Other receivable		-			626,949		-			626,949
Due from shareholder		-			5,101,415		-			5,101,415
Inventory		-			6,300,160		-			6,300,160
TOTAL CURRENT ASSETS		13,085			20,573,860		-			20,586,945
FIXED ASSETS, NET		-			8,844,217		-			8,844,217
CONSTRUCTION IN PROGRESS		-			872,145		-			872,145
INTANGIBLE ASSETS, NET		-			406,616		-			406,616
OTHER ASSETS		-			48,502		-			48,502
TOTAL ASSETS	$	13,085		$	30,745,340	$	-		$	30,758,425
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable	$	2,100		$	6,044,312	$	-		$	6,046,412
Other payables		-			776,448		-			776,448
Unearned revenue		-			41,001		-			41,001
Accrued payroll		-			241,110		-			241,110
Short term loans		-			2,831,042		-			2,831,042
Due to shareholder		45,482			-		-			45,482
Advances from shareholder		-			260,633		-			260,633
Notes payable		-			3,333,303		-			3,333,303
Tax and welfare payable		-			872,389		-			872,389
TOTAL CURRENT LIABILITIES		47,582			14,400,238		-			14,447,820
STOCKHOLDERS' EQUITY										-
Common Stock		10,500			9,120,886	a	(9,108,786	)		22,600
Additional paid in capital		20,500			228,137	b	(65,497	)		9,291,926
						a	9,108,786
Development funds		-			436,877		-			436,877
Statutory reserve		-			873,755		-			873,755
Accumulated other comprehensive income (loss)		-			2,241,322		-			2,241,322
Retained Earnings (accumulated deficit)		(65,497	)		3,444,125	b	65,497			3,444,125
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)		(34,497	)		16,345,102		-			16,310,605
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$	13,085		$	30,745,340	$	-		$	30,758,425

(1) Source: unaudited financial statements of Tag Events Corp. as of June 30, 2008 included in Form 10Q

(2) Source: unaudited financial statements of Deer International Group Limited as of June 30, 2008 included elsewhere in this Form 8K.

See accompanying notes to pro forma combined financial statements

F - 1

Tag Events Corp.

and Deer International Group Limited

Pro Forma Combined Statement of Operations

For the Period Ended June 30, 2008

(unaudited)

	Tag Events			Deer International
	Corp. (1)			Group Limited (2)
	For the Nine Months			For the Six Months			Pro forma		Pro forma
	Ended June 30, 2008			Ended June 30, 2008			Adjustments		Combined
	(historical)			(historical)
Net Revenue	$	-		$	20,502,927		$	-	$	20,502,927
Cost of Revenue		-			16,294,338			-		16,294,338
Gross Profit		-			4,208,589			-		4,208,589
Operating expenses:
Selling expenses		-			1,209,416			-		1,209,416
General and administrative expenses		20,866			1,239,502			-		1,260,368
Total operating expenses		20,866			2,448,918			-		2,469,784
Income (loss) from operations		(20,866	)		1,759,671			-		1,738,805
Non-operating income (expense):
Financing costs		-			(46,435	)		-		(46,435	)
Interest income		-			6,855			-		6,855
Interest expense		(151	)		(89,857	)		-
Other income (expense)		-			76,221			-
Realized loss on trading securities		-			(34,388	)		-		(34,388	)
Foreign exchange gain (loss)		-			345,926			-		345,926
Total non-operating (expense) income		(151	)		258,322			-		271,958
Income (loss) before provision for income taxes		(21,017	)		2,017,993			-		1,996,976
Income tax		-			624,303			-		624,303
Net income (loss)	$	(21,017	)	$	1,393,690			-		1,372,673
Earnings (loss) per common share	$	(0.00	)						$	0.06
Weighted average shares outstanding		5,239,377								23,289,377

 

(1) Source: unaudited financial statements of Tag Events Corp. included in Form 10Q for the nine months ended June 30, 2008.

(2) Source: unaudited financial statements of Deer International Group Limited for the six months ended June 30, 2008 included elsewhere in this Form 8K.

See accompanying notes to pro forma combined financial statements

F - 2

Tag Events Corp.

and Deer International Group Limited

Pro Forma Combined Statement of Operations

For the Period Ended September 30, 2007

	Tag Events			Deer International
	Corp. (1)			Group Limited (2)
	For the Year Ended			For the Year Ended			Pro forma		Pro forma
	September 30, 2007			December 31, 2007			Adjustments		Combined
	(historical)			(historical)
Net Revenue	$	-		$	33,476,259		$	-	$	33,476,259
Cost of Revenue		-			26,249,009			-		26,249,009
Gross Profit		-			7,227,250			-		7,227,250
Operating expenses:
Selling expenses		-			1,518,482			-		1,518,482
General and administrative expenses		42,855			1,788,025			-		1,830,880
Total operating expenses		42,855			3,306,507			-		3,349,362
Income (loss) from operations		(42,855	)		3,920,743			-		3,877,888
Non-operating income (expense):
Financing costs		-			(194	)		-		(194	)
Interest income		-			18,524			-		18,524
Interest expense		(173	)		(114,361	)		-		(114,534	)
Other income (expense)		-			64,698			-		64,698
Realized loss on trading securities		-			57,043			-		57,043
Foreign exchange gain (loss)		-			90,707			-		90,707
Total non-operating (expense) income		(173	)		116,417			-		116,244
Income (loss) before provision for income taxes		(43,028	)		4,037,160			-		3,994,132
Income tax		-			615,568			-		615,568
Net income (loss)	$	(43,028	)	$	3,421,592			-		3,378,564
Earnings (loss) per common share	$	(0.01	)						$	0.15
Weighted average shares outstanding		5,245,205								23,295,205

(1) Source: audited financial statements of Tag Events Corp. included in Form 10KSB.

(2) Source: audited financial statements of Deer International Group Limited. as of December 31, 2007 included elsewhere in this Form 8K.

See accompanying notes to pro forma combined financial statements

F - 3

Tag Events Corp.

and Deer International Group Limited

Notes to Pro form Combined Financial Statements

NOTE 1 - BASIS OF PRESENTATION

The accompanying pro forma combined balance sheet presents the accounts of Tag Events Corp. (“Tag”) and Deer International Group Limited (“Deer”) as if the acquisition of Deer by Tag occurred on June 30, 2008. The accompanying pro forma combined statement of operations presents the accounts of Tag and Deer for the year ended September 30, 2007 and for the nine months ended June 30, 2008 as if the acquisition occurred on October 1, 2006. For accounting purposes, the transaction is being accounted for as a recapitalization of Deer.

The following adjustments would be required if the acquisition occurred as indicated above:

a. Recapitalization of Deer to account for issuance of an aggregate of 18,050,000 common shares of Tag to the shareholders of Deer;

b. Eliminate pre-acquisition accumulated deficit of Tag.

F - 4