| Delaware(State                or other Jurisdiction ofIncorporation                or Organization) | 20-2479743(I.R.S.                EmployerIdentification                No.) |
|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|

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|                                                                                          |  Page           |
|-----------------------------------------------------------------------------------------------|----------------------|
|  Part I: Financial                Information:                                           |                 |
|  Item 1 - Financial Statements                (Unaudited):                               |                 |
|  Balance Sheet                                                                           | 3                    |
|  Statements                of Operations                                                 | 4                    |
|  Statement of Stockholders’                Equity                                  | 5                    |
|  Statement of Cash Flows                                                                 | 6               |
|  Notes to Financial Statements                                                           | 7                    |
|  Item 2 - Management’s Discussion and                Analysis or Plan of Operation | 9                    |
|  Item 3 - Controls and                Procedures                                         | 10                   |
|  Part II. Other Information                                                              |                 |
|  Item 6 - Exhibits                                                                       | 11    |
|  Signatures                                                                         | 12              |

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| **Chardan                North China Acquisition Corporation** |
|----------------------------------------------------------------|
| **(A                Development Stage Company)**               |
| **Condensed                Balance Sheets**                    |

|                                                                      |   |                          |       |                             |   |
|---------------------------------------------------------------------------|--------|-------------------------------|------------|----------------------------------|--------|
|                                                                      |   | March                31, 2006 |       | December                31, 2005 |   |
|                                                                      |   | (Unaudited)                   |       |                             |   |
| ASSETS                                                                    |   |                          |       |                             |   |
| Current                assets:                                            |   |                          |       |                             |   |
| Cash                and cash equivalents                                  |   | $                             | 388,299    |                             | $      | 856,380 |   |
| Investments                held in trust                                  |   |                          | 30,563,675 |                             |   | 30,260,861 |   |
| Deferred                tax asset                                         |   |                          | 332,345    |                             |   | 177,370 |   |
| Prepaid                expenses and other                                 |   |                          | 33,503     |                             |   | 58,503 |   |
|                                                                      |   |                          |       |                             |   |   |   |
| Total                Assets                                               |   | $                             | 31,317,822 |                             | $      | 31,353,114 |   |
|                                                                      |   |                          |       |                             |   |   |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY                       |   |                          |       |                             |   |   |   |
| Current                liabilities:                                       |   |                          |       |                             |   |   |   |
| Accounts                payable and accrued expenses                      |   | $                             | 284,909    |                             | $      | 224,498 |   |
| Income                taxes payable                                       |   |                          | 129,882    |                             |   | 173,120 |   |
| Deferred                interest                                          |   |                          | 146,928    |                             |   | 86,395 |   |
| Total                current liabilities                                  |   |                          | 561,719    |                             |   | 484,013 |   |
|                                                                      |   |                          |       |                             |   |   |   |
| Commitments                                                               |   |                          |       |                             |   |   |   |
|                                                                      |   |                          |       |                             |   |   |   |
| Common                stock subject to possible conversion                |   |                          | 5,964,017  |                             |   | 5,964,017 |   |
| 1,149,425                shares at conversion value                       |   |                          |       |                             |   |   |   |
|                                                                      |   |                          |       |                             |   |   |   |
| Stockholders'                equity:                                      |   |                          |       |                             |   |   |   |
| Preferred                stock, $.0001 par value, 1,000,000               |   |                          | -          |                             |   | - |   |
| shares                authorized, none issued                             |   |                          |       |                             |   |   |   |
| Common                stock, $.0001 par value: 20,000,000                 |   |                          | 700        |                             |   | 700 |   |
| shares                authorized, 7,000,000 shares issued and outstanding |   |                          |       |                             |   |   |   |
| (includes                1,149,425 shares subject to possible conversion) |   |                          |       |                             |   |   |   |
| Additional                paid-in capital                                 |   |                          | 25,006,126 |                             |   | 25,006,126 |   |
| Deficit                accumulated during the development stage           |   |                          | (214,740   | )                                |   | (101,742 | ) |
| Total                stockholders' equity                                 |   |                          | 24,792,086 |                             |   | 24,905,084 |   |
|                                                                      |   |                          |       |                             |   |   |   |
| Total                Liabilities and Stockholders' Equity                 |   | $                             | 31,317,822 |                             | $      | 31,353,114 |   |
|                                                                      |   |                          |       |                             |   |   |   |
|                                                                      |   |                          |       |                             |   |   |   |

----

| **Chardan                        North China Acquisition Corporation**               |
|--------------------------------------------------------------------------------------|
| **(A                        Development Stage Company)**                             |
| **Condensed                        Statements of                        Operations** |

|                                                                                                                       |   |                                  |      | From                                  |   | From                                  |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|---------------------------------------|--------|---------------------------------------|--------|
|                                                                                                                       |   | Three                                 |      | March                        10, 2005 |   | March                        10, 2005 |   |
|                                                                                                                       |   | Months                                |      | (Inception)                           |   | (Inception)                           |   |
|                                                                                                                       |   | Ended                                 |      | Through                               |   | Through                               |   |
|                                                                                                                       |   | March                        31, 2006 |      | March                        31, 2005 |   | March                        31, 2006 |   |
|                                                                                                                       |   | (Unaudited)                           |      | (Unaudited)                           |   | (Unaudited)                           |   |
|                                                                                                                       |   |                                  |      |                                  |   |                                  |   |
| Costs                      and Expenses:                                                                                   |   |                                  |      |                                  |   |                                  |   |
| Admin                        and office support                                                                            |   |                                  | 22,500    |                                  |   | -                                     |   |   | 60,000 |   |
| Consulting                                                                                                                 |   |                                  | -         |                                  |   | -                                     |   |   | 66,700 |   |
| Insurance                                                                                                                  |   |                                  | 17,500    |                                  |   | -                                     |   |   | 46,667 |   |
| Marketing                        fees                                                                                      |   |                                  | 24,836    |                                  |   | -                                     |   |   | 24,836 |   |
| Professional                        fees                                                                                   |   |                                  | 193,391   |                                  |   | -                                     |   |   | 321,348 |   |
| State                        franchise tax                                                                                 |   |                                  | 5,875     |                                  |   | -                                     |   |   | 29,650 |   |
| Travel                                                                                                                     |   |                                  | 86,170    |                                  |   | -                                     |   |   | 233,261 |   |
| Other                        operating costs                                                                               |   |                                  | 24,490    |                                  |   | 900                                   |   |   | 46,163 |   |
|                                                                                                                       |   |                                  |      |                                  |   |                                  |   |   |   |   |
| Total                      costs and expenses                                                                              |   |                                  | 374,762   |                                  |   | 900                                   |   |   | 828,625 |   |
|                                                                                                                       |   |                                  |      |                                  |   |                                  |   |   |   |   |
| Operating                      loss                                                                                        |   |                                  | (374,762  | )                                     |   | (900                                  | )      |   | (828,625 | ) |
|                                                                                                                       |   |                                  |      |                                  |   |                                  |   |   |   |   |
| Interest                        income                                                                                     |   |                                  | 245,351   |                                  |   | -                                     |   |   | 593,224 |   |
|                                                                                                                       |   |                                  |      |                                  |   |                                  |   |   |   |   |
| Net                      loss before income tax benefit                                                                    |   |                                  | (129,411  | )                                     |   | (900                                  | )      |   | 235,403 |   |
|                                                                                                                       |   |                                  |      |                                  |   |                                  |   |   |   |   |
| Income                        tax benefit                                                                                  |   |                                  | 16,413    |                                  |   | -                                     |   |   | 20,663 |   |
|                                                                                                                       |   |                                  |      |                                  |   |                                  |   |   |   |   |
| Net                      loss                                                                                              |   | $                                     | (112,998  | )                                     | $      | (900                                  | )      | $ | (214,740 | ) |
|                                                                                                                       |   |                                  |      |                                  |   |                                  |   |   |   |   |
| Loss                      per share–basic                      and                      diluted                      |   |                                  | (0.02     | )                                     |   | (0.00                                 | )      |   | (0.04 | ) |
| Weighted                      average shares outstanding–basic                      and                      diluted |   |                                  | 7,000,000 |                                  |   | 1,250,000                             |   |   | 4,854,922 |   |

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| **Chardan                      North China Acquisition Corporation**                             |
|--------------------------------------------------------------------------------------------------|
| **(A                      Development Stage Company)**                                           |
| **Condensed                      Statements of Stockholders' Equity**                            |
| From                      March 10, 2005 (Inception) through March 31,                      2006 |

|                                                                                                               |   |   |      |   |   |                         |   | Deficit                              |       |          |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|------------------------------|--------|--------------------------------------|------------|---------------|--------|
|                                                                                                               |   |   |      |   |   | Additional                   |   | Accumulated                          |       | Stockholders' |   |
|                                                                                                               |   | Common |      |   |   | Paid                    - In |   | During                    the        |       | Equity        |   |
|                                                                                                               |   | Shares |      | Amount |   | Capital                      |   | Development                    Stage |       | (Deficit)     |   |
|                                                                                                               |   |   |      |   |   |                         |   |                                 |       |          |   |
| Issuance                    of common shares to initial shareholders on March 10, 2005                             |   |   | 1,250,000 |   | $      | 125                          |   | $                                    | 24,875     |          | $      | - |   | $ | 25,000 |   |
| at                    $0.02 per share                                                                              |   |   |      |   |   |                         |   |                                 |       |          |   |   |   |   |   |   |
| Sale                    of 5,750,000 units, net of underwriters' discount and offering                    expenses |   |   | 5,750,000 |   |   | 575                          |   |                                 | 30,945,168 |          |   | - |   |   | 30,945,743 |   |
| (includes                    1,149,425 shares subject to possible conversion)                                      |   |   |      |   |   |                         |   |                                 |       |          |   |   |   |   | - |   |
| Proceeds                    subject to possible conversion of 1,149,425 shares                                     |   |   | -         |   |   | -                            |   |                                 | (5,964,017 | )             |   | - |   |   | (5,964,017 | ) |
| Proceeds                    from issuance of an underwriter's option                                               |   |   | -         |   |   | -                            |   |                                 | 100        |          |   | - |   |   | 100 |   |
| Loss                    for the period ended December 31, 2005                                                     |   |   | -         |   |   | -                            |   |                                 | -          |          |   | (101,742 | ) |   | (101,742 | ) |
|                                                                                                               |   |   |      |   |   |                         |   |                                 |       |          |   |   |   |   |   |   |
| Balance                    at December 31, 2005                                                                    |   |   | 7,000,000 |   |   | 700                          |   |                                 | 25,006,126 |          |   | (101,742 | ) |   | 24,905,084 |   |
| Unaudited:                                                                                                         |   |   |      |   |   |                         |   |                                 |       |          |   |   |   |   |   |   |
| Loss                    for the three months ended March 31, 2006                                                  |   |   | -         |   |   | -                            |   |                                 | -          |          |   | (112,998 | ) |   | (112,998 | ) |
|                                                                                                               |   |   |      |   |   |                         |   |                                 |       |          |   |   |   |   |   |   |
|                                                                                                               |   |   |      |   |   |                         |   |                                 |       |          |   |   |   |   |   |   |
| Balance                    at March 31, 2006                                                                  |   |   | 7,000,000 |   | $      | 700                          |   | $                                    | 25,006,126 |          | $      | (214,740 | ) | $ | 24,792,086 |   |

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| **Chardan                    North China Acquisition Corporation**          |
|-----------------------------------------------------------------------------|
| **(A                    Development Stage Company)**                        |
| **Condensed                    Statement of Cash                    Flows** |

|                                                                                                            |   |                              |     | From                              |   | From                              |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|-----------------------------------|--------|-----------------------------------|--------|
|                                                                                                            |   | Three                             |     | March                    10, 2005 |   | March                    10, 2005 |   |
|                                                                                                            |   | Months                            |     | (Inception)                       |   | (Inception)                       |   |
|                                                                                                            |   | Ended                             |     | Through                           |   | Through                           |   |
|                                                                                                            |   | March                    31, 2006 |     | March                    31, 2005 |   | March                    31, 2006 |   |
|                                                                                                            |   | (Unaudited)                       |     | (Unaudited)                       |   | (Unaudited)                       |   |
|                                                                                                            |   |                              |     |                              |   |                              |   |
| Cash                    Flows from Operating Activities:                                                        |   |                              |     |                              |   |                              |   |
| Net                    loss                                                                                     |   | $                                 | (112,998 | )                                 | $      | (900                              | )      | $ | (214,740 | ) |
| Adjustments                    to reconcile net loss to net cash                                                |   |                              |     |                              |   |                              |   |   |   |   |
| used                    in operating activities:                                                                |   |                              |     |                              |   |                              |   |   |   |   |
| Amortization                    of discounts and interest earned on securities held in                    trust |   |                              | (302,814 | )                                 |   | -                                 |   |   | (728,675 | ) |
| Cash                    received on interest bearing accounts                                                   |   |                              | (3,070   | )                                 |   | -                                 |   |   | (3,070 | ) |
| Changes                    in operating Assets and Liabilities:                                                 |   |                              |     |                              |   |                              |   |   |   |   |
| Prepaid                    expenses and other current assets                                                    |   |                              | 25,000   |                              |   | -                                 |   |   | (23,333 | ) |
| Deferred                    tax asset                                                                           |   |                              | (154,975 | )                                 |   | -                                 |   |   | (332,345 | ) |
| Accounts                    payable and accrued expenses                                                        |   |                              | 60,411   |                              |   | 900                               |   |   | 284,909 |   |
| Income                    taxes payable                                                                         |   |                              | (43,238  | )                                 |   | -                                 |   |   | 129,882 |   |
| Deferred                    interest                                                                            |   |                              | 60,533   |                              |   | -                                 |   |   | 146,928 |   |
| Net                    cash used by operating activities                                                        |   |                              | (471,151 | )                                 |   | -                                 |   |   | (740,444 | ) |
|                                                                                                            |   |                              |     |                              |   |                              |   |   |   |   |
| Cash                    Flows from Investing Activities:                                                        |   |                              |     |                              |   |                              |   |   |   |   |
| Purchases                    of investments held in trust                                                       |   |                              | -        |                              |   | -                                 |   |   | (29,835,000 | ) |
| Cash                    received on interest bearing accounts                                                   |   |                              | 3,070    |                              |   | -                                 |   |   | 3,070 |   |
| Net                    cash used by investing activities                                                        |   |                              | 3,070    |                              |   | -                                 |   |   | (29,831,930 | ) |
|                                                                                                            |   |                              |     |                              |   |                              |   |   |   |   |
| Cash                    Flows from Financing Activities                                                         |   |                              |     |                              |   |                              |   |   |   |   |
| Proceeds                    from issuance of common stock                                                       |   |                              | -        |                              |   | 25,000                            |   |   | 34,525,000 |   |
| Proceeds                    from issuance of option                                                             |   |                              | -        |                              |   | -                                 |   |   | 100 |   |
| Payment                    of costs associated with public offering                                             |   |                              | -        |                              |   | (25,000                           | )      |   | (3,554,257 | ) |
| Advance                    to affiliate                                                                         |   |                              | -        |                              |   | -                                 |   |   | (10,170 | ) |
| Net                    cash provided by financing activities                                                    |   |                              | -        |                              |   | -                                 |   |   | 30,960,673 |   |
|                                                                                                            |   |                              |     |                              |   |                              |   |   |   |   |
| Net                    increase in cash and cash equivalents                                                    |   |                              | (468,081 | )                                 |   | -                                 |   |   | 388,299 |   |
| Cash                    and cash equivalents, beginning of the period                                           |   |                              | 856,380  |                              |   | -                                 |   |   | - |   |
| Cash                    and cash equivalents, end of the period                                                 |   | $                                 | 388,299  |                              | $      | -                                 |   | $ | 388,299 |   |

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|  FY                Ending June 30 |  After-Tax                Profit |
|----------------------------------------|---------------------------------------|
|  2007                             |  $                23,000,000     |
|  2008                             |  $                32,000,000     |
|  2009                             |  $                43,000,000     |
|  2010                             |  $                61,000,000     |

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***Forward      Looking Statements***

***Background***

***Recent      Developments***

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|   |   | *                Incorporated by reference from registrant’s Annual Report on Form 10-KSB                for the fiscal year ended December 31,                2005 |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                             |                                                                            |                                   |
|----------------------------------|---------------------------------------------------------------------------------|----------------------------------------|
|                             | **CHARDAN              NORTH CHINA ACQUISITION CORPORATION**                    |
|                        |                                                                       |                              |
| Dated:              May 15, 2006 | By:                                                                   | /s/              Li              Zhang |
|                             | Li              Zhang                                                           |
|                             | Chief              Executive Officer (Principal Executive              Officer) |

|         |                                                                                                         |                           |
|--------------|--------------------------------------------------------------------------------------------------------------|--------------------------------|
|         |                                                                                                         |
|    |                                                                                                    |                      |
|         | By:                                                                                                | /s/              Kerry Propper |
|         | Kerry              Propper                                                                                   |
|         | Chief              Financial Officer and Secretary (Principal Accounting and Financial              Officer) |

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