----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

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**FORM      10-Q**

xQuarterly      report under      Section 13 or 15(d) of the Securities Exchange Act of 1934

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

**For      the transition period from _____________ to _____________**

**Commission      File Number 000-51432**

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**Chardan      South China Acquisition Corporation**

| **Delaware** |   | **20-2479786** |
|--------------|--------|----------------|

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

| **625                Broadway, Suite 1111, San Diego, California 92101**(Address                of principal executive offices) |
|---------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                            |
| **(619)                795-4627**(Registrant’s                telephone number, including area code)                      |
|                                                                                                                            |

----

**CHARDAN      SOUTH CHINA ACQUISITION CORPORATION**

**FORM      10-Q**

**INDEX**

| **PART                  I**    | **FINANCIAL                  INFORMATION**                                                                                    |   |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------|--------|
|                           |                                                                                                                          |   |
| Item                  1        | Financial                  Statements (Unaudited):                                                                            | 3      |
|                           |                                                                                                                          |   |
|                           | 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 of Financial Condition and Results of                  Operations | 9      |
|                           |                                                                                                                          |   |
| Item                  3        | Quantitative                  and Qualitative Disclosure About Market Risk                                                    | 12     |
|                           |                                                                                                                          |   |
| Item                  4        | Controls                  and Procedures                                                                                      | 12     |
|                           |                                                                                                                          |   |
|                           |                                                                                                                          |   |
| **PART                    II** | **OTHER INFORMATION**                                                                                                    |   |
|                           |                                                                                                                          |   |
| Item                  1A       | Risk                  Factors                                                                                                 | 12     |
|                           |                                                                                                                          |   |
| Item                  6        | Exhibits                                                                                                                      | 12     |
|                           |                                                                                                                          |   |
| Signatures                     |                                                                                                                          | 14     |

----

**PART      I.**

**FINANCIAL      INFORMATION**

**ITEM      1** **FINANCIAL      STATEMENTS (UNAUDITED)**

| **Chardan                  South China Acquisition Corporation** |
|------------------------------------------------------------------|
| **(A                  Development Stage Company)**               |
| **Balance                  Sheet**                               |

|                                                                                           |   | June                  30, 2007 |       | December                  31, 2006 |   |
|------------------------------------------------------------------------------------------------|--------|--------------------------------|------------|------------------------------------|--------|
|                                                                                           |   | (Unaudited)                    |       |                               |   |
| ASSETS                                                                                         |   |
| Current                  assets:                                                               |   |                           |       |                               |   |
| Cash                  and cash equivalents                                                     |   | $                              | -          |                               | $      | 147,063 |   |
| Investments                  held in trust                                                     |   |                           | 31,822,482 |                               |   | 31,294,931 |   |
| Prepaid                  expenses and other                                                    |   |                           | -          |                               |   | 13,098 |   |
| Total                  current assets                                                          |   |                           | 31,822,482 |                               |   | 31,455,092 |   |
|                                                                                           |   |                           |       |                               |   |   |   |
| Long                  term deferred tax asset                                                  |   |                           | 235,333    |                               |   | 235,333 |   |
|                                                                                           |   |                           |            |                               |   |  |   |
| Total                  Assets                                                                  |   | $                              | 32,057,815 |                               | $      | 31,690,425 |   |
|                                                                                           |   |                           |       |                               |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                          |
| Current                  liabilities:                                                          |   |                           |       |                               |   |   |   |
| Accounts                  payable and accrued liabilities                                      |   | $                              | 450,667    |                               | $      | 103,056 |   |
| Taxes                  payable                                                                 |   |                           | 250,324    |                               |   | 204,913 |   |
| Notes                  payable, related parties                                                |   |                           | 75,250     |                               |   | - |   |
| Deferred                  interest                                                             |   |                           | 401,543    |                               |   | 296,105 |   |
| Total                  current liabilities                                                     |   |                           | 1,177,784  |                               |   | 604,074 |   |
|                                                                                           |   |                           |       |                               |   |   |   |
| 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                                                    |   |                           | 25,003,435 |                               |   | 25,003,435 |   |
| Accumulated                  earnings (deficit)                                                |   |                           | (88,121    | )                                  |   | 118,199 |   |
| Total                  stockholders' equity                                                    |   |                           | 24,916,014 |                               |   | 25,122,334 |   |
|                                                                                           |   |                           |       |                               |   |   |   |
| Total                  Liabilities and Stockholders' Equity                                    |   | $                              | 32,057,815 |                               | $      | 31,690,425 |   |
|                                                                                           |   |                           |       |                               |   |   |   |
| See                  the accompanying notes to condensed financial                  statements |

----

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

|                                                                                           |   |                           |      |                           |   |                           |   |                           |      | From                            |   |
|------------------------------------------------------------------------------------------------|--------|--------------------------------|-----------|--------------------------------|--------|--------------------------------|--------|--------------------------------|-----------|---------------------------------|--------|
|                                                                                           |   | Three                          |      | Three                          |   | Six                            |   | Six                            |      | March                  10, 2005 |   |
|                                                                                           |   | Months                         |      | Months                         |   | Months                         |   | Months                         |      | (Inception)                     |   |
|                                                                                           |   | Ended                          |      | Ended                          |   | Ended                          |   | Ended                          |      | Through                         |   |
|                                                                                           |   | June                  30, 2007 |      | June                  30, 2006 |   | June                  30, 2007 |   | June                  30, 2006 |      | June                  30, 2007  |   |
|                                                                                           |   | (Unaudited)                    |      | (Unaudited)                    |   | (Unaudited)                    |   | (Unaudited)                    |      | (Unaudited)                     |   |
|                                                                                           |   |                           |      |                           |   |                           |   |                           |      |                            |   |
| Costs                  and Expenses                                                            |   |                           |      |                           |   |                           |   |                           |      |                            |   |
| Admin                  and office support                                                      |   |                           | 22,500    |                           |   | 22,500                         |   |                           | 45,000    |                            |   | 45,000 |   |   | 172,500 |   |
| Consulting                                                                                     |   |                           | 20,000    |                           |   | 66,700                         |   |                           | 20,000    |                            |   | 66,700 |   |   | 86,700 |   |
| Insurance                                                                                      |   |                           | 16,888    |                           |   | 17,500                         |   |                           | 39,375    |                            |   | 35,000 |   |   | 131,861 |   |
| Marketing                                                                                      |   |                           | 17,819    |                           |   | -                              |   |                           | 17,819    |                            |   | - |   |   | 17,819 |   |
| Professional                  fees                                                             |   |                           | 209,010   |                           |   | 28,217                         |   |                           | 239,769   |                            |   | 33,117 |   |   | 336,792 |   |
| State                  franchise tax                                                           |   |                           | 10,212    |                           |   | 6,737                          |   |                           | 13,849    |                            |   | 12,675 |   |   | 61,961 |   |
| Travel                                                                                         |   |                           | 30,577    |                           |   | 82,643                         |   |                           | 137,342   |                            |   | 158,867 |   |   | 559,571 |   |
| Other                  operating costs                                                         |   |                           | 12,644    |                           |   | 4,945                          |   |                           | 18,551    |                            |   | 10,879 |   |   | 76,314 |   |
|                                                                                           |   |                           |      |                           |   |                           |   |                           |      |                            |   |   |   |   |   |   |
| Total                  costs and expenses                                                      |   |                           | 339,650   |                           |   | 229,242                        |   |                           | 531,705   |                            |   | 362,238 |   |   | 1,443,519 |   |
|                                                                                           |   |                           |      |                           |   |                           |   |                           |      |                            |   |   |   |   |   |   |
| Operating                  loss                                                                |   |                           | (339,650  | )                              |   | (229,242                       | )      |                           | (531,705  | )                               |   | (362,238 | ) |   | (1,443,519 | ) |
|                                                                                           |   |                           |      |                           |   |                           |   |                           |      |                            |   |   |   |   |   |   |
| Other                  income (expense):                                                       |   |                           |      |                           |   |                           |   |                           |      |                            |   |   |   |   |   |   |
| Interest                  income                                                               |   |                           | 218,153   |                           |   | 170,876                        |   |                           | 422,114   |                            |   | 419,462 |   |   | 1,602,707 |   |
| Interest                  expense                                                              |   |                           | (6,968    | )                              |   | -                              |   |                           | (7,805    | )                               |   | - |   |   | (7,805 | ) |
| Penalties-income                  tax                                                          |   |                           | (43,513   | )                              |   | -                              |   |                           | (43,513   | )                               |   | - |   |   | (43,513 | ) |
| Total                  other income (expense)                                                  |   |                           | 167,672   |                           |   | 170,876                        |   |                           | 370,796   |                            |   | 419,462 |   |   | 1,551,389 |   |
| Net                  loss before income tax provision                                          |   |                           | (171,978  | )                              |   | (58,366                        | )      |                           | (160,909  | )                               |   | 57,225 |   |   | 107,870 |   |
|                                                                                           |   |                           |      |                           |   |                           |   |                           |      |                            |   |   |   |   |   |   |
| Income                  tax benefit (provision)                                                |   |                           | (23,200   | )                              |   | 18,100                         |   |                           | (45,411   | )                               |   | (44,285 | ) |   | (195,991 | ) |
|                                                                                           |   |                           |      |                           |   |                           |   |                           |      |                            |   |   |   |   |   |   |
| Net                  income (loss)                                                             |   | $                              | (195,178  | )                              | $      | (40,266                        | )      | $                              | (206,320  | )                               | $      | 12,939 |   | $ | (88,121 | ) |
|                                                                                           |   |                           |      |                           |   |                           |   |                           |      |                            |   |   |   |   |   |   |
| Loss                  per share - basic and diluted                                            |   |                           | (0.03     | )                              |   | (0.01                          | )      |                           | (0.03     | )                               |   | 0.00 |   |   | (0.01 | ) |
| Weighted                  average shares outstanding - basic and diluted                       |   |                           | 7,000,000 |                           |   | 7,000,000                      |   |                           | 7,000,000 |                            |   | 7,000,000 |   |   | 6,016,627 |   |
|                                                                                           |   |                           |      |                           |   |                           |   |                           |      |                            |   |   |   |   |   |   |
| See                  the accompanying notes to condensed financial                  statements |

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| **Chardan                  South China Acquisition Corporation**                    |
|-------------------------------------------------------------------------------------|
| **(A                  Development Stage Company)**                                  |
| **Statements                  of Changes in Stockholders'                  Equity** |

|                                                                                                           |   |   |      | Additional                 |   |        |   | Stockholders' |       |
|----------------------------------------------------------------------------------------------------------------|--------|--------|-----------|----------------------------|--------|-------------|--------|---------------|------------|
|                                                                                                           |   | Common |      | Paid                  - In |   | Accumulated |   | Equity        |       |
|                                                                                                           |   | Shares |      | Amount                     |   | Capital     |   | Earnings      |       | (Deficit) |   |
|                                                                                                           |   |   |      |                       |   |        |   |          |       |   |   |
| Balance                  at March 10, 2005 (Inception)                                                         |   |   | -         |                       | $      | -           |   | $             | -          |   | $ | - |   | $ | - |   |
|                                                                                                           |   |   |      |                       |   |        |   |          |       |   |   |   |   |   |   |   |
| Issuance                  of common shares to initial shareholders at $0.02 per                  share         |   |   | 1,250,000 |                       |   | 125         |   |          | 24,875     |   |   |   |   |   | 25,000 |   |
| Sale                  of 5,750,000 units, net of underwriters' discount and offering                  expenses |   |   | 5,750,000 |                       |   | 575         |   |          | 30,942,477 |   |   |   |   |   | 30,943,052 |   |
| (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 |   |
| Income                  for the year ended December 31, 2005                                                   |   |   |      |                       |   |        |   |          |       |   |   | 68,769 |   |   | 68,769 |   |
|                                                                                                           |   |   |      |                       |   |        |   |          |       |   |   |   |   |   |   |   |
|                                                                                                           |   |   |           |                       |   |             |   |          |            |   |   |  |   |   |  |   |
| Balance                  at December 31, 2005                                                                  |   |   | 7,000,000 |                       | $      | 700         |   | $             | 25,003,435 |   | $ | 68,769 |   | $ | 25,072,904 |   |
|                                                                                                           |   |   |      |                       |   |        |   |          |       |   |   |   |   |   |   |   |
| Income                  for the year ended December 31, 2006                                                   |   |   |      |                       |   |        |   |          |       |   |   | 49,430 |   |   | 49,430 |   |
|                                                                                                           |   |   |      |                       |   |        |   |          |       |   |   |   |   |   |   |   |
|                                                                                                           |   |   |           |                       |   |             |   |          |            |   |   |  |   |   |  |   |
| Balance                  at December 31, 2006                                                                  |   |   | 7,000,000 |                       |   | 700         |   | $             | 25,003,435 |   | $ | 118,199 |   | $ | 25,122,334 |   |
|                                                                                                           |   |   |      |                       |   |        |   |          |       |   |   |   |   |   |   |   |
| Unaudited                                                                                                      |   |   |      |                       |   |        |   |          |       |   |   |   |   |   |   |   |
| Loss                  for the six months ended June 30, 2007                                                   |   |   |      |                       |   |        |   |          |       |   |   | (206,320 | ) |   | (206,320 | ) |
|                                                                                                           |   |   |      |                       |   |        |   |          |       |   |   |   |   |   |   |   |
|                                                                                                           |   |   |           |                       |   |             |   |          |            |   |   |  |   |   |  |   |
| Balance                  at June 30, 2007                                                                      |   |   | 7,000,000 |                       |   | 700         |   | $             | 25,003,435 |   | $ | (88,121 | ) | $ | 24,916,014 |   |
|                                                                                                           |   |   |      |                       |   |        |   |          |       |   |   |   |   |   |   |   |
|                                                                                                           |   |   |      |                       |   |        |   |          |       |   |   |   |   |   |   |   |
| See                  the accompanying notes to condensed financial                  statements                 |

----

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

|                                                                                                        |   |                           |     |                           |   | From                            |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------|--------------------------------|--------|---------------------------------|--------|
|                                                                                                        |   | Six                            |     | Six                            |   | March                  10, 2005 |   |
|                                                                                                        |   | Months                         |     | Months                         |   | (Inception)                     |   |
|                                                                                                        |   | Ended                          |     | Ended                          |   | Through                         |   |
|                                                                                                        |   | June                  30, 2007 |     | June                  30, 2006 |   | June                  30, 2007  |   |
|                                                                                                        |   | (Unaudited)                    |     | (Unaudited)                    |   | (Unaudited)                     |   |
|                                                                                                        |   |                           |     |                           |   |                            |   |
| Cash                  Flows from Operating Activities:                                                      |   |                           |     |                           |   |                            |   |
| Net                  income (loss)                                                                          |   | $                              | (206,320 | )                              | $      | 12,939                          |   | $ | (88,121 | ) |
| Adjustments                  to reconcile net loss to net cash                                              |   |                           |     |                           |   |                            |   |   |   |   |
| used                  in operating activities:                                                              |   |                           |     |                           |   |                            |   |   |   |   |
| Amortization                  of discounts and interest earned on securities held in                  trust |   |                           | (527,551 | )                              |   | (520,132                        | )      |   | (1,987,481 | ) |
| Changes                  in operating Assets and Liabilities:                                               |   |                           |     |                           |   |                            |   |   |   |   |
| Prepaid                  expenses and other current assets                                                  |   |                           | 13,099   |                           |   | 42,500                          |   |   | 1 |   |
| Deferred                  tax asset                                                                         |   |                           | -        |                           |   | (178,948                        | )      |   | (244,694 | ) |
| Accounts                  payable and accrued liabilities                                                   |   |                           | 347,610  |                           |   | 22,357                          |   |   | 450,668 |   |
| Income                  taxes payable                                                                       |   |                           | 45,411   |                           |   | 42,233                          |   |   | 259,685 |   |
| Deferred                  interest                                                                          |   |                           | 105,438  |                           |   | 106,974                         |   |   | 401,543 |   |
| Net                  cash used by operating activities                                                      |   |                           | (222,313 | )                              |   | (472,077                        | )      |   | (1,208,402 | ) |
|                                                                                                        |   |                           |     |                           |   |                            |   |   |   |   |
| Cash                  Flows from Investing Activities:                                                      |   |                           |     |                           |   |                            |   |   |   |   |
| Purchases                  of investments held in trust                                                     |   |                           | -        |                           |   | -                               |   |   | (29,835,000 | ) |
| Net                  cash provided (used) by investing activities                                           |   |                           | -        |                           |   | -                               |   |   | (29,835,000 | ) |
|                                                                                                        |   |                           |     |                           |   |                            |   |   |   |   |
| Cash                  Flows from Financing Activities                                                       |   |                           |     |                           |   |                            |   |   |   |   |
| Proceeds                  from related party loans                                                          |   |                           | 75,250   |                           |   | -                               |   |   | 75,250 |   |
| Proceeds                  from issuance of common stock                                                     |   |                           | -        |                           |   | -                               |   |   | 34,525,000 |   |
| Proceeds                  from issuance of option                                                           |   |                           | -        |                           |   | -                               |   |   | 100 |   |
| Payment                  of costs associated with public offering                                           |   |                           | -        |                           |   | -                               |   |   | (3,556,948 | ) |
| Net                  cash provided by financing activities                                                  |   |                           | 75,250   |                           |   | -                               |   |   | 31,043,402 |   |
|                                                                                                        |   |                           |     |                           |   |                            |   |   |   |   |
| Net                  increase in cash and cash equivalents                                                  |   |                           | (147,063 | )                              |   | (472,077                        | )      |   | - |   |
| Cash                  and cash equivalents, beginning of the period                                         |   |                           | 147,063  |                           |   | 912,964                         |   |   | - |   |
| Cash                  and cash equivalents, end of the period                                               |   | $                              | -        |                           | $      | 440,887                         |   | $ | - |   |
|                                                                                                        |   |                           |     |                           |   |                            |   |   |   |   |
| See                  the accompanying notes to condensed financial                  statements              |

----

**CHARDAN      SOUTH CHINA ACQUISITION CORPORATION**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO THE FINANCIAL STATEMENTS**

**FOR      THE THREE MONTHS ENDED JUNE 30, 2007**

**2.**
**      SUMMARY OF ORGANIZATION AND BASIS OF PRESENTATION**

----

***Accounting      Pronouncements:***

**3.**
**      GOING CONCERN**

----

**4.**
**      RELATED PARTY TRANSACTIONS**

| Unsecured                demand notes payable - shareholder notes bearing an annual interest                rate                of 8% due on various dates during 2008 |   | $ | 75,250 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---|--------|--------|

**ITEM      2.**
**MANAGEMENT’S      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION**

**Forward      Looking Statements**

***Recent      Developmen***

*Purchase      Agreement for Proposed Business Combination*

----

| **Fiscal                Year** |   | **After-Tax                Profit** |   | **Number                of Shares** |
|--------------------------------|--------|-------------------------------------|--------|-------------------------------------|
| 2007                           |   | $14,000,000                         |   | 1,000,000                           |
| 2008                           |   | $19,000,000                         |   | 1,000,000                           |
| 2009                           |   | $29,000,000                         |   | 1,000,000                           |
| 2010                           |   | $44,000,000                         |   | 2,000,000                           |
| 2011                           |   | $63,000,000                         |   | 2,000,000                           |
| 2012                           |   | $87,000,000                         |   | 2,000,000                           |
|                           |   |                                |   |                                |

----

*Financial      Performance*

----

**ITEM      3.**
**QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

**ITEM      4. **
**CONTROLS      AND PROCEDURES****.**

**PART      II**

**OTHER      INFORMATION**

**ITEM      1A**
**RISK      FACTORS.**

**ITEM      6: **
**EXHIBITS**

----

----

----

SIGNATURES

|                                  | CHARDAN                SOUTH CHINA ACQUISITION CORPORATION                                         |
|---------------------------------------|----------------------------------------------------------------------------------------------------|
|                                  |
| Dated:                August 17, 2007 |                                                                                               |
|                                  |
|                                  |
|                                  | /s/                Kerry Propper                                                                   |
|                                  | Kerry                Propper                                                                       |
|                                  | Chief                Executive Officer and Secretary (Principal Executive                Officer)  |
|                                  |
|                                  |
|                                  | /s/                Dr. Richard D. Propper                                                          |
|                                  | Dr.                Richard D. Propper                                                              |
|                                  | Chief                Financial Officer (Principal Accounting and Financial                Officer) |

----