**UNITED
      STATES SECURITIES AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**


**______________**




**FORM
      10-QSB**


**______________**




x
            QUARTERLY
                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                ACT OF
                1934




**For
      the quarterly period ended June 30, 2007**




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




**For
      the transition period from ______________ to
      ______________**




**Commission
      File No. 000-50214**


**______________**




**Chaolei
      Marketing and Finance Company**


**(Exact
      name of small business issuer as specified in its charter)**


**______________**




**FLORIDA**(State
                or other jurisdiction of
              incorporation
                or organization)
            (I.R.S.
                Employer Identification No.)




**6103
                Aqua Avenue, Suite 704, Miami Beach, Florida**
            **33141**(Address
                of principal executive offices)
            (Zip
                Code)




**(305)
                868-6866**(Issuer’s
                telephone number)




**Biotex
        Holdings, Inc.**
 **(former
        name of Company)**




Check
      whether the issuer (1) has filed all reports required to be filed by Section
      13
      or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter
      period that the issuer was required to file such reports), and (2)has been
      subject to such filing requirements for the past 90 days. Yes x No o




Check
      whether the registrant has filed all documents and reports required to be filed
      by Sections 12, 13, or 15(d) of the Exchange Act subsequent to the distribution
      of securities under a plan confirmed by a court. Yes o  No x




Indicate
      by check mark whether the registrant is a shell company as defined in Rule
      12b-2
      of the Exchange Act.


Yes           x           No           o




State
      the
      number of shares outstanding of each of the issuer's classes of common equity,
      as of October  19, 2007: 9,427,200 shares of common
      stock.




Transitional
      Small Business Disclosure Format (check one): Yes o No x








*Table
          of Contents*






**TABLE
      OF CONTENTS**




**PART
                I – FINANCIAL INFORMATION**Item
                1.   Financial Information
            1Item
                2.   Management’s Discussion and Analysis or Plan of
                Operation
            7Item
                3.   Controls and Procedures
            10**PART
                II -OTHER INFORMATION**Item
                1.   Legal Proceedings.
            10Item
                2.   Unregistered Sales of Equity Securities and Use of
                Proceeds.
            10Item
                3.   Defaults Upon Senior Securities.
            10Item
                4.   Submission of Matters to a Vote of Security
                Holders.
            10Item
                5.   Other Information.
            10Item
                6.   Exhibits and Reports of Form 8-K.
            10**SIGNATURES**
            11








i
 *Table
          of Contents*






**PART
      I – FINANCIAL INFORMATION**






**Item
        1. **Financial
        Information****




**BIOTEX
                  HOLDINGS, INC.****BALANCE
                  SHEET****June
                  30, 2007**(Unaudited)**ASSETS**Current
                  Assets:Cash
                  and cash equivalents
              
              $
              -Total
                  current assets
              
              
              -Property
                  and equipment, net
              
              
              -**TOTAL
                  ASSETS**
              
              $
              -**LIABILITIES
                  AND STOCKHOLDERS’ DEFICIT**Current
                  Liabilities:Accounts
                  payable
              
              $
              250Accrued
                  liabilities
              
              
              14,500**TOTAL
                  CURRENT LIABILITIES**
              
              
              14,750Commitments
                  and contingencies
              
              
              -Stockholders’
                  Deficit:Preferred  stock,
                  $0.001 par value, 10,000,000 shares authorized,  none issued and
                  outstanding
              
              $
              -Common
                  stock, $0.001 par value, 100,000,000 shares
                  authorized,   9,427,200 shares issued and
                  outstanding
              
              
              9,427Additional
                  paid in capital
              
              
              6,435Accumulated
                  deficit
              
              
              (30,612
              )**TOTAL
                  STOCKHOLDERS’ DEFICIT**
              
              
              (14,750
              )**TOTAL
                  LIABILITIES AND STOCKHOLDERS’ DEFICIT**
              
              $
              -






The
      accompanying notes are part of an integral part of theses financial
      statements.








1
 *Table
          of Contents*




**BIOTEX
                  HOLDINGS, INC.****STATEMENTS
                  OF OPERATIONS**Three
                  Months Ended June 30,
              
              
              Six
                  Months Ended June 30,2007
              
              
              2006
              
              
              2007
              
              
              2006(Unaudited)
              
              
              (Unaudited)
              
              
              (Unaudited)
              
              
              (Unaudited)Revenues
              
              $
              -
              
              
              $
              -
              
              
              $
              -
              
              
              $
              -Cost
                  of goods sold
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Gross
                  profit
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Operating
                  expenses:Stock
                  compensation
              
              
              -
              
              
              
              600
              
              
              
              2,000
              
              
              
              1,200Professional
                  fees
              
              
              1,500
              
              
              
              1,000
              
              
              
              3,000
              
              
              
              2,000Total
                  operating expenses
              
              
              1,500
              
              
              
              1,600
              
              
              
              5,000
              
              
              
              3,200Other
                  Income/Expense:Other
                  income (expense), net
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Net
                  loss before income taxes
              
              
              (1,500
              )
              
              
              (1,600
              )
              
              
              (5,000
              )
              
              
              (3,200
              )Provision
                  (benefit) for income taxes
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Net
                  loss
              
              $
              (1,500
              )
              
              $
              (1,600
              )
              
              $
              (5,000
              )
              
              $
              (3,200
              )Net
                  loss per share - basic and diluted
              
              $
              (0
              )
              
              $
              (0
              )
              
              $
              (0
              )
              
              $
              (0
              )Weighted
                  average number of shares outstanding during the period - basic
                  and
                  diluted
              
              
              9,474,925
              
              
              
              7,474,925
              
              
              
              8,746,212
              
              
              
              7,474,925






The
        accompanying notes are part of an integral part of theses financial
        statements.






2
 *Table
          of Contents*




**BIOTEX
                  HOLDINGS, INC.****STATEMENTS
                  OF CASH FLOWS**For
                  The Six Months Ended June 30,2007
              
              
              2006(Unaudited)
              
              
              (Unaudited)CASH
                  FLOWS FROM OPERATING ACTIVITIES:Net
                  loss
              
              $
              (5,000
              )
              
              $
              (3,200
              )Adjustments
                  to reconcile net loss to net cash used in operating
                  activities:Common
                  stock issued for services
              
              
              2,000
              
              
              
              1,200Changes
                  in current assets and liabilities:Accounts
                  payable and accrued expenses
              
              
              3,000
              
              
              
              2,000Net
                  Cash Used In Operating Activities
              
              
              -
              
              
              
              -CASH
                  FLOWS FROM INVESTING ACTIVITIES:Purchase
                  of furniture and fixtures
              
              
              -
              
              
              
              -Net
                  Cash Used in Investing Activities
              
              
              -
              
              
              
              -CASH
                  FLOWS FROM FINANCING ACTIVITIES:Proceeds
                  from capital contribution from related party
              
              
              -
              
              
              
              -Issuance
                  of common stock
              
              
              -
              
              
              
              -Net
                  Cash Provided by Financing Activities
              
              
              -
              
              
              
              -CHANGE
                  IN CASH
              
              
              -
              
              
              
              -CASH
                  AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
              
              
              -
              
              
              
              -CASH
                  AND CASH EQUIVALENTS AT END OF PERIOD
              
              $
              -
              
              
              $
              -Supplemental
                  disclosure of non cash investing & financing
                  activities:Cash
                  paid for income taxes
              
              $
              -
              
              
              $
              -Cash
                  paid for interest expense
              
              $
              -
              
              
              $
              -


The
      accompanying notes are part of an integral part of theses financial
      statements.






3
 *Table
          of Contents*




BIOTEX
        HOLDINGS, INC.
 NOTES
        TO
        FINANCIAL STATEMENTS
  June
        30,
        2007
 (Unaudited)
  NOTE
        1 –
ORGANIZATION
  Organization
  Biotex
        Holdings, Inc. (previously Capital Ventures Group I, Inc.) was incorporated
        on
        December 17, 1999 under the laws of the State of Florida to engage in any
        lawful
        corporate undertaking, including, but not limited to, selected mergers and
        acquisitions.
  Going
        Concern
 
 The
        financial statements are presented on the basis that the Company is a going
        concern, which contemplates the realization of assets and the satisfaction
        of
        liabilities in the normal course of business over a reasonable length of
        time.
        The Company has incurred operating losses since its inception. This condition
        raises substantial doubt as to the Company’s ability to continue as a going
        concern.
  NOTE
        2 -
        SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Interim
        Financial Statements
  The
        accompanying interim unaudited financial information has been prepared pursuant
        to the rules and regulations of the Securities and Exchange Commission. Certain
        information and footnote disclosures normally included in financial statements
        prepared in accordance with accounting principles generally accepted in the
        United States of America have been condensed or omitted pursuant to such
        rules
        and regulations, although management believes that the disclosures are adequate
        to make the information presented not misleading. In the opinion of management,
        all adjustments, consisting only of normal recurring adjustments, necessary
        to
        present fairly the financial position of the Company as of June 30, 2007
        and the
        related operating results and cash flows for the interim period presented
        have
        been made. The results of operations of such interim period are not necessarily
        indicative of the results of the full year. This financial information should
        be
        read in conjunction with the Financial Statements and Notes thereto included
        in
        the Company’s Annual Report on Form 10-KSB for the year ended December 31, 2006.
        There have been no changes in significant accounting policies since December
        31,
        2006.
 
 Use
        of
        Estimates
 
 The
        preparation of financial statements in conformity with accounting principles
        generally accepted in the United States requires management to make estimates
        and assumptions that affect the reported amounts of assets and liabilities
        at
        the date of the financial statement and the reported amounts of revenues
        and
        expenses during the reporting period. Estimates that are critical to the
        accompanying financial statements arise from the determination of the fair
        value
        of the Company’s investment. Because such determination involves subjective
        judgment, it is at least reasonably possible that the Company’s estimates could
        change in the near term with respect to this matter.
 
 
 4
 *Table
            of Contents*
 
 
 BIOTEX
        HOLDINGS, INC.
 NOTES
        TO
        FINANCIAL STATEMENTS
 
 Income
        Taxes
 
 The
        Company accounts for income taxes under Statement of Financial Accounting
        Standards (SFAS) No. 109, Accounting for Income Taxes (SFAS No. 109).
        Deferred income tax assets and liabilities are determined based upon differences
        between financial reporting and tax bases of assets and liabilities and are
        measured using the enacted tax rates and laws that will be in effect when
        the
        differences are expected to reverse. Due to the net loss incurred in all
        periods, there is no provision for income taxes provided as a full valuation
        allowance has been established.
  Net
        Loss Per Share
 
 Basic
        and
        diluted net losses per common share are presented in accordance with SFAS
        No.128, Earning Per Share (SFAS No. 128), for all periods presented. Preferred
        stock conversions to common stock and warrants have been excluded from the
        calculation of the diluted loss per share for the three ended March 31, 2007
        and
        2006 as all such securities were anti-dilutive.
 
 Stock-Based
        Compensation
 
 In
        December 2004, FASB issued SFAS No. 123 (revised 2004), Share-Based Payment,
        (SFAS No. 123(R)) which is a revision of SFAS No. 123, Accounting for
        Stock-Based Compensation (SFAS No. 123). SFAS No. 123(R) supersedes Accounting
        Principles Board (APB) Opinion No. 25, Accounting for Stock Issued to Employees,
        (APB No. 25). SFAS No. 123(R) requires all share-based payments to employees,
        including grants of employee stock options, to be recognized in the income
        statement based on their fair values. Pro forma disclosure is no longer an
        alternative. Additionally, SFAS No. 123(R) amends the presentation of the
        statement of cash flows and requires additional annual disclosures. SFAS
        No.
        123(R) is effective for public companies beginning with the first interim
        period
        that begins after June 15, 2005. In April 2005, the Securities and Exchange
        Commission adopted a new rule that postponed the effective date for SFAS
        No.
        123(R) to the fiscal year beginning after June 15, 2005. The Company adopted
        SFAS No. 123(R) on January 1, 2006, but as the Company does not have an option
        plan, there was no effect upon implementation.
 
 NOTE
        3 –
RECENT ACCOUNTING PRONOUNCEMENTS
 
 In
        February 2007, the Financial Accounting Standards Board (FASB) issued SFAS
        No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities.”
SFAS 159 permits entities to choose to measure many financial instruments,
        and
        certain other items, at fair value. SFAS 159 applies to reporting periods
        beginning after November 15, 2007. The adoption of SFAS 159 is not expected
        to have a material impact on the Company’s financial condition or results of
        operations.
 
 NOTE
        4 –
EMPLOYMENT AGREEMENT
  On
        December 29, 2005 the Company entered a one year employment agreement with
        its
        President.   On June 30, 2006, pursuant to Paragraph 2 of his
        Employment Agreement with the Company dated December 30, 2005, Scott J.
        Silverman, our President and CEO, notified the Company of his intention to
        renew
        his Employment Agreement as of the date of its expiration, December 31,
        2006.  In addition, Mr. Silverman elected to modify Paragraph 3 to reflect
        that his annual salary for the additional term, January 1, 2007 through December
        31, 2007, shall be $1.00.  On June 30, 2006, the Company and Mr. Silverman
        entered into an employment agreement for the period January 1, 2007 through
        December 31, 2007 reflecting the above mentioned change.
 
 
 5
 *Table
            of Contents*
  BIOTEX
        HOLDINGS, INC.
 NOTES
        TO
        FINANCIAL STATEMENTS
 
 
 
 NOTE
        5 – EQUITY
 
 In
        March
        2007 the Company issued 2,000,000 shares of common stock valued at $2,000
        ($.0001) par value for services.
  NOTE
        6 – SUBSEQUENT EVENTS
 
 CICO
        Agreement
 
 On
        October 22, 2007, the Company entered into an agreement with Sichaum Chalei
        Industry Stock Company (CICO), whereby the Company will become a sales,
        marketing and finance agent of CICO and will receive a 10% commission on
        the
        worldwide gross sales of CICO.  The Company will change its name to
        Chaolei Marketing and Finance Company.  Upon execution of the
        agreement, the Company will issue 53,794,042 shares of its common stock to
        CICO.  This agreement will be in effect for fifty years, commencing on
        the closing date.
 
 Termination
        of Employment Agreement
 
 On
        October 22, 2007, the President notified the shareholders and board of directors
        of his resignation and released the Company from the terms of the Employment
        Agreement.   His resignation was inconjunction with the terms of
        the agreement entered into with CICO.








6
 *Table
          of Contents*






**Item
        2. **Management’s
        Discussion and Analysis or Plan of
        Operation****




**Results
      of Operation**





On
      June
      9, 2005 pursuant to a Stock Purchase Agreement and Share Exchange between the
      Company and YB Holdings, Inc. a Florida corporation, the Company purchased
      all
      of the outstanding shares of YB Holdings for a total of 4,462,200 shares of
      the
      Company’s common stock. Pursuant to the Agreement, YB Holdings became a wholly
      owned subsidiary of the Company. The acquisition was approved by the unanimous
      consent of our Board of Directors on June 9, 2005.  Pursuant to the
      Agreement, the Company filed an amendment in the State of Florida changing
      the
      name of the company to BioTex Holdings, Inc.




YB
      Holdings was established in 2003 to develop and employ technologies from around
      the world to process biomass (plant derived) waste, extract the usable
      fractions, and then utilize or sell those extractions in further downstream
      processes. Many of these waste streams have traditionally been disposed of
      either by dumping into landfills or by burning. YB Holdings has acquired the
      rights to several extraction and separation technologies along with patents
      (pending) for certain technologies, which can process this waste to derive
      value
      added products, such as cellulose, fiber, protein, hemicellulose, lignin and
      others. The uses for these fractions are many, either as sellable products
      on
      their own, or as feed stocks for further downstream processing. Our mission
      is
      to become a global biomass processor by utilizing our various processing
      technologies, and deriving value added products from their use. In June 2005,
      YB
      Holdings filed an amendment in the State of Florida changing thename of the
      company to BioTex Corp.





On
      December 30, 2005, pursuant to a Stock Purchase Agreement and Share Exchange
      by
      and among BioTex Holdings, Inc. (“Holdings”), BioTex Corp (f/k/a YB Holdings), a
      Florida corporation and wholly owned subsidiary of Holdings (“BioTex”), and King
      Capital Holdings, Inc., a Florida corporation (“King Capital”), King Capital
      purchased all of the outstanding shares of BioTex for a total of 5,027,200
      shares of King Capital’s common stock to the Holdings shareholders.





Pursuant
      to the Agreement, Holdings transferred all of the outstanding shares of BioTex
      to King Capital for a total of 5,027,200 shares of King Capital’s common and
      BioTex became a wholly owned subsidiary of King Capital. The shareholders of
      Holdings received the 5,027,200 shares of King Capital on a basis of one share
      of King Capital for each share of Holdings owned on the Closing Date. Since
      Holdings had no other assets than BioTex and all of the shares of BioTex were
      transferred to King Capital, Holdings became a shell company as defined in
      Rule
      12b-2 of the Exchange Act.





The
      Registrant is continuing its efforts to locate a merger Candidate for the
      purpose of a merger. It is possible that the registrant will be successful
      in
      locating such a merger candidate and closing such merger. However, if the
      registrant cannot effect a non-cash acquisition, the registrant may have to
      raise funds from a private offering of its securities under Rule 506 of
      Regulation D. There is no assurance the registrant would obtain any such equity
      funding.





**Plan
      of Operations**





We
      intend
      to enter into a business combination with a target company in exchange for
      cash
      and/or our securities. either our officer and director nor any affiliate has
      engaged in any negotiations with any representative of any specific entity
      regarding the possibility of a business combination with us.





Management
      anticipates seeking out a target company through solicitation. Such solicitation
      may include newspaper or magazine advertisements, mailings and other
      distributions to law firms, accounting firms, investment bankers, financial
      advisors and similar persons, the use of one or more World Wide Web sites and
      similar methods. No estimate can be made as to the number of persons who will
      be
      contacted or solicited. Management may engage in such solicitation directly
      or
      may employ one or more other entities to conduct or assist in such solicitation.
      Management and its affiliates will pay referral fees to consultants and others
      who refer target businesses for mergers into public companies in which
      management and its affiliates have an interest. Payments are made if a business
      combination occurs, and may consist of cash or a portion of the stock in the
      Company retained by management and its affiliates, or both.






7
 *Table
          of Contents*





We
      have
      entered into an agreement with Scott Silverman to supervise the search for
      target companies as potential candidates for a business combination. Scott
      Silverman will pay as his own expenses any costs he incurs in supervising the
      search for a target company. Scott Silverman has entered and anticipates that
      he
      will enter into agreements with other consultants to assist in locating a target
      company and may share stock received by it or cash resulting from the sale
      of
      its securities with such other consultants. Scott Silverman controls us and
      therefore has the authority to enter into any agreement binding us. Scott
      Silverman, as our sole officer, director and majority shareholder can authorize
      any such agreement binding us.





We
      have
      no full time employees. Our president has agreed to allocate a portion of his
      time to the activities of the Company, without compensation. The president
      anticipates that our business plan can be implemented by his devoting no more
      than 10 hours per month to the business affairs of the Company and,
      consequently, conflicts of interest may arise with respect to the limited
      time


commitment
      by such officer.





Our
      Certificate of Incorporation provides that we may indemnify our officers and/or
      directors for liabilities, which can include liabilities arising under the
      securities laws. Therefore, our assets could be used or attached to satisfy
      any
      liabilities subject to such indemnification.





**Results
      of Operation**





We
      did
      not have any operating income from inception through June 30, 2007. For
      the quarter ended June 30, 2007, expenses for the quarter were comprised of
      costs mainly associated with legal and accounting services and general office
      expenses.





**Liquidity
      and Capital Resources**





At
      June
      30, 2007, we had no capital resources and will rely upon the issuance of common
      stock and additional capital contributions from shareholders to fund
      administrative expenses pending acquisition of an operating
      company.





**Recent
      Accounting Pronouncements**




In
      June
      2003, the Securities and Exchange Commission adopted final rules under Section
      404 of the Sarbanes-Oxley Act of 2002. Commencing with our annual report for
      the
      year ended October 31, 2008, we will be required to include a report of
      management on our internal control over financial reporting. The internal
      control report must include a statement




·
            of
                management’s responsibility for establishing and maintaining adequate
                internal control over our financial
                reporting;




·
            of
                management’s assessment of the effectiveness of our internal control over
                financial reporting as of year end;




·
            of
                the framework used by management to evaluate the effectiveness of
                our
                internal control over financial reporting;
                and




·
            that
                our independent accounting firm has issued an attestation report
                on
                management’s assessment of our internal control over financial reporting,
                which report is also required to be
                filed.




In
      February 2006, FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial
      Instruments. SFAS No. 155 amends SFAS No 133, Accounting for Derivative
      Instruments and Hedging Activities, and SFAF No. 140, Accounting for Transfers
      and Servicing of Financial Assets and Extinguishments of Liabilities. SFAS
      No.
      155, permits fair value remeasurement for any hybrid financial instrument that
      contains an embedded derivative that otherwise would require bifurcation,
      clarifies which interest-only strips and principal-only strips are not subject
      to the requirements of SFAS No. 133, establishes a requirement to evaluate
      interest in securitized financial assets to identify interests that are
      freestanding derivatives or that are hybrid financial instruments that contain
      an embedded derivative requiring bifurcation, clarifies that concentrations
      of
      credit risk in the form of subordination are not embedded derivatives, and
      amends SFAS No. 140 to eliminate the prohibition on the qualifying
      special-purpose entity from holding a derivative financial instrument that
      pertains to a beneficial interest other than another derivative financial
      instrument. This statement is effective for all financial instruments acquired
      or issued after the beginning of the Company’s first fiscal year that begins
      after June 30, 2007.






8
 *Table
          of Contents*




In
      March
      2006, the FASB issued SFAS No. 156, *Accounting for Servicing of Financial
      Assets—an amendment of FASB Statement No. 140*(“SFAS No. 156”), that
      provides guidance on accounting for separately recognized servicing assets
      and
      servicing liabilities. In accordance with the provisions of SFAS No. 156,
      separately recognized servicing assets and servicing liabilities must be
      initially measured at fair value, if practicable. Subsequent to initial
      recognition, the Company may use either the amortization method or the fair
      value measurement method to account for servicing assets and servicing
      liabilities within the scope of this Statement. The Company will adopt SFAS
      No.
      156 in fiscal year 2007. The adoption of this Statement is not expected to
      have
      a material effect on the Company’s financial condition and results of
      operations.





In
      April
      2006, the FASB issued FSP FIN 46R-6, *Determining the Variability to Be
      Considered in Applying FASB Interpretation No. 46R*which requires the
      variability of an entity to be analyzed based on the design of the entity.
      The
      nature and risks in the entity, as well as the purpose for the entity’s creation
      are examined to determine the variability in applying FIN 46R, *Consolidation
      of Variable Interest Entities*(“FIN 46R”). The variability is used in
      applying FIN 46R to determine whether an entity is a variable interest entity,
      which interests are variable interests in the entity, and who is the primary
      beneficiary of the variable interest entity. This statement is effective for
      all
      reporting periods beginning after June 15, 2006. Management does not expect
      this
      statement to have a significant impact on the Company’s financial condition and
      results of operations.





In
      July
      2006, the FASB issued FASB Interpretation Number 48, *Accounting for
      Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109*(“FIN 48”). FIN 48 prescribes a recognition threshold and measurement
      attribute for the financial statement recognition and measurement of a tax
      position taken in a tax return. The Company must determine whether it is
“more-likely-than-not” that a tax position will be sustained upon examination,
      including resolution of any related appeals or litigation processes, based
      on
      the technical merits of the position. Once it is determined that a position
      meets the more-likely-than-not recognition threshold, the position is measured
      to determine the amount of benefit to recognize in the financial statements.
      FIN
      48 applies to all tax positions related to income taxes subject to FASB
      Statement No. 109, *Accounting for Income Taxes.*The interpretation
      clearly scopes out income tax positions related to FASB Statement No. 5,
*Accounting for Contingencies.*The Company will adopt the provisions of
      this statement on July 1, 2007. The cumulative the opening balance of retained
      earnings on July 1, 2007. The Company does not anticipate that the adoption
      of
      this statement will have a material effect on the Company’s financial condition
      and results of operations.





On
      September 15, 2006, the FASB issued SFAS No. 157, "Fair Value Measurements"
      ("SFAS 157").  SFAS 157 defines fair value, establishes a framework
      for measuring fair value and expands disclosures about fair value
      measurements.  SFAS 157 is effective as of the beginning of the first
      fiscal year beginning after November 15, 2007.  The Company does not
      anticipate that the adoption of this statement will have a material effect
      on
      the Company’s financial condition and results of operations.





In
      September 2006, FASB issued SFAS No. 158,*Employers' Accounting for Defined
      Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements
      No 87, 88, 106 and 132(R)*  (SFAS 158)*.*  SFAS
      158 requires the recognition of the overfunded or underfunded status of a
      defined benefit postretirement plan as an asset or liability in the statement
      of
      financial position and the recognition of changes in that funded status in
      the
      year in which the changes occur through comprehensive income. SFAS 158 also
      requires the measurement of the funded status of a plan as of the date of the
      year-end statement of financial position. The Company does not anticipate that
      the adoption of this statement will have a material effect on the Company’s
      financial condition and results of operations.





On
      February 15, 2007, the FASB issued SFAS No. 159,*The Fair Value Option for
      Financial Assets and Financial Liabilities: Including an amendment of FASB
      Statement No. 115*  (SFAS 159). SFAS 159 permits all entities to
      elect to measure many financial instruments and certain other items at fair
      value with changes in fair value reported in earnings. SFAS 159 is effective
      as
      of the beginning of the first fiscal year that begins after November 15, 2007,
      with earlier adoption permitted. The Company does not anticipate that the
      adoption of this statement will have a material effect on the Company’s
      financial condition and results of operations.





Management
      does not believe that any other recently issued, but not yet effective
      accounting pronouncements, if adopted, would have a material effect on the
      accompanying financial statements.






9
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**Critical
      Accounting Policies and Estimates**




In
      preparing our financial statements in conformity with accounting principles
      generally accepted in the United States of America, we must make decisions
      that
      impact the reported amounts of assets, liabilities, revenues and expenses,
      and
      related disclosures. Such decisions include the selection of the appropriate
      accounting principles to be applied and the assumptions on which to base
      accounting estimates. In reaching such decisions, we apply judgments based
      on
      our understanding and analysis of the relevant circumstances, historical
      experience, and actuarial valuations. Actual amounts could differ from those
      estimated at the time the consolidated financial statements are
      prepared.




**Off-Balance
      Sheet Arrangements**




We
      have
      no off-balance sheet arrangements.




**Item
        3. **Controls
        and Procedures****




**Evaluation
      of disclosure controls and procedures**




Under
      the
      supervision and with the participation of our management, including our
      principal executive officer and principal financial officer, we conducted an
      evaluation of our disclosure controls and procedures, as such term is defined
      under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities
      Exchange Act of 1934, as amended (Exchange Act), as of June 30, 2007. Based
      on
      this evaluation, our principal executive officer and principal financial officer
      have concluded that our disclosure controls and procedures are effective to
      ensure that information required to be disclosed by us in the reports we file
      or
      submit under the Exchange Act is recorded, processed, summarized, and reported
      within the time periods specified in the Securities and Exchange Commission’s
      rules and forms and that our disclosure and controls are designed to ensure
      that
      information required to be disclosed by us in the reports that we file or submit
      under the Exchange Act is accumulated and communicated to our management,
      including our principal executive officer and principal financial officer,
      or
      persons performing similar functions, as appropriate to allow timely decisions
      regarding required disclosure




**Changes
      in internal controls**




There
      were no changes (including corrective actions with regard to significant
      deficiencies or material weaknesses) in our internal controls over financial
      reporting that occurred during the quarter ended June 30, 2007 that has
      materially affected, or is reasonably likely to materially affect, our internal
      control over financial reporting.




**PART
      II - OTHER INFORMATION**






**Item
        1. **Legal
        Proceedings.****




We
      are
      currently not a party to any pending legal proceedings and no such actions
      by,
      or to the best of our knowledge, against us have been threatened.




**Item
        2. **Unregistered
        Sales of Equity Securities and Use of
        Proceeds.****




None




**Item
        3. **Defaults
        Upon Senior Securities.****




None




**Item
        4. **Submission
        of Matters to a Vote of Security
        Holders.****




No
      matter
      was submitted during the quarter ending June 30, 2007, covered by this report
      to
      a vote of our shareholders, through the solicitation of proxies or
      otherwise.




**Item
        5. **Other
        Information.****




None




**Item
        6.** **Exhibits
        and Reports of Form 8-K.**




(a)
                Reports
                    on Form 8-K and Form 8K-ANone(b)
                Exhibits**Exhibit
                    Number**
                **Exhibit
                    Title**31.1
                Certification
                    pursuant to Section 302 of Sarbanes Oxley Act of
                    200232.1
                Certification
                    pursuant to Section 906 of Sarbanes Oxley Act of
                    2002








10
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          of Contents*




**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, there unto duly
      authorized.




**Chaolei
                Marketing and Finance Company**By:
            */s/
                Scott J. Silverman*Scott
                J. Silverman
              Chief
                Executive Officer
              Chief
                Financial OfficerDated:
            October
                19, 2007




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