**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 |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| [                ] | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 FOR THE TRANSITION PERIOD FROM _________ TO                __________ |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**CHINA      INDUSTRIAL WASTE MANAGEMENT,  INC.**

|  NEVADA                                                                                                        |  13-3250816                                          |
|---------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|
|  (STATE                OR OTHER JURISDICTION OF INCORPORATION OR                ORGANIZATION)   | (I.R.S.                EMPLOYER  IDENTIFICATION NO.) |
|                                                                                                                |                                                      |

----

|                                                                                                                                                                                                                              |  Page |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
| Part                  I - Financial Information                                                                                                                                                                                   | 3          |
|                                                                                                                                                                                                                              |       |
| Item                  1 - Financial Statements                                                                                                                                                                                    | 3          |
|                                                                                                                                                                                                                              |       |
| Consolidated                  Balance Sheets as of June 30, 2007 and December 31,                  2006 (unaudited)                                                                                                          | 3          |
|                                                                                                                                                                                                                              |       |
| Consolidated  Statements                  of  Operations and Comprehensive Income  for the three                  and six months ended June 30, 2007 and June 30, 2006                  (unaudited) | 4          |
|                                                                                                                                                                                                                              |       |
| Consolidated                    Statements of Cash Flows for the six months ended June 30, 2007 and                    June 30, 2006 (unaudited)                                                                                  | 5          |
|                                                                                                                                                                                                                              |       |
| Notes                  to the Consolidated Financial Statements (unaudited)                                                                                                                                                       | 6          |
|                                                                                                                                                                                                                              |       |
| Item                  2 - Management's Discussion and Analysis or Plan                  of  Operation                                                                                                                   | 18         |
|                                                                                                                                                                                                                              |       |
| Item                  3 - Controls and Procedures                                                                                                                                                                                 | 22         |
|                                                                                                                                                                                                                              |       |
| Part                  II - Other Information                                                                                                                                                                                      | 23         |
|                                                                                                                                                                                                                              |       |
| Item                  1 - Legal Proceedings                                                                                                                                                                                       | 23         |
|                                                                                                                                                                                                                              |       |
| Item                  2 - Unregistered Sales of Equity Securities and Use of                  Proceeds                                                                                                                            | 23         |
|                                                                                                                                                                                                                              |       |
| Item                  3 - Defaults                  Upon Senior Securities                                                                                                                                                        | 23         |
|                                                                                                                                                                                                                              |       |
| Item                  4 -  Submission of Matters to a Vote of Security                  Holders                                                                                                                              | 23         |
|                                                                                                                                                                                                                              |       |
| Item                  5 - Other Information                                                                                                                                                                                       | 23         |
|                                                                                                                                                                                                                              |       |
| Item                  6 - Exhibits                                                                                                                                                                                                | 23         |
|                                                                                                                                                                                                                              |       |
| Signature                  Page                                                                                                                                                                                                   | 24         |

----

**PART        I.                      FINANCIAL        INFORMATION**

**Item        1.                      Financial        Statements**

| **CHINA                  INDUSTRIAL WASTE MANAGEMENT, INC.**                                                                              |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  BALANCE SHEETS**                                                                                          |   |
| (In                  U.S. dollars)                                                                                                        |   |
|                                                                                                                                                     |   |
|                                                                                                                                                     |   |
|                                                                                                                                                     |   |
|                                                                                                                                                     |   |
|                                                                                                                                                     |   | June                  30, |   |   | December                  31, |   |
|                                                                                                                                                     |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                     |   | (Unaudited) |   |   | Unaudited                  andRestated |   |
| **ASSETS**                                                                                                                                               |   |   |   |   |   |   |
| Current                  assets                                                                                                                          |   |   |   |   |   |   |
| Cash                  and cash equivalents                                                                                                               |   | $ | 4,833,691 |   |   | $ | 5,713,925 |   |
| Trade                  accounts receivable, net                                                                                                          |   |   | 302,209 |   |   |   | 151,144 |   |
| Other                  receivables                                                                                                                       |   |   | 36,604 |   |   |   | 35,999 |   |
| Inventory                                                                                                                                                |   |   | 894,347 |   |   |   | 602,944 |   |
| Advances                  to suppliers                                                                                                                   |   |   | 11,272 |   |   |   | 374,046 |   |
| Deferred                  expense                                                                                                                        |   |   | 43,658 |   |   |   | 20,490 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Total                  current assets                                                                                                                    |   |   | 6,121,781 |   |   |   | 6,898,548 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Investment                                                                                                                                               |   |   | 1,617,753 |   |   |   | 322,717 |   |
| Property,                  plant & equipment                                                                                                         |   |   | 4,371,273 |   |   |   | 4,189,517 |   |
| Less:                  Accumulated depreciation                                                                                                          |   |   | (1,762,203 | ) |   |   | (1,502,899 | ) |
| Net                  property, plant and equipment                                                                                                       |   |   | 2,609,070 |   |   |   | 2,686,618 |   |
| Construction                  in progress                                                                                                                |   |   | 1,904,880 |   |   |   | 202,974 |   |
| Land                  usage right, net of accumulated amortization                                                                                       |   |   | 1,544,835 |   |   |   | 1,524,319 |   |
| Related                  party Receivable                                                                                                                |   |   | 479,250 |   |   |   | 231,793 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| ** Total                  assets**                                                                                                                  |   | $ | 14,277,569 |   |   | $ | 11,866,969 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| ** LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                          |   |   |   |   |   |   |   |   |
| Current                  liabilities                                                                                                                     |   |   |   |   |   |   |   |   |
| Accounts                  payable                                                                                                                        |   | $ | 356,907 |   |   | $ | 92,255 |   |
| Tax                  payable                                                                                                                             |   |   | 5,135 |   |   |   | 6,346 |   |
| Deferred                  Sales                                                                                                                          |   |   | 467,105 |   |   |   | 455,548 |   |
| Accrued                  expenses                                                                                                                        |   |   | 494,423 |   |   |   | 15,768 |   |
| Other                  payable                                                                                                                           |   |   | 140,576 |   |   |   | 283,981 |   |
| Total                  current liabilities                                                                                                               |   |   | 1,464,146 |   |   |   | 853,898 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Asset                  retirement obligation                                                                                                             |   |   | 405,657 |   |   |   | 381,873 |   |
| Total                  liabilities                                                                                                                       |   |   | 1,869,803 |   |   |   | 1,235,771 |   |
| Minority                  interest in subsidiary                                                                                                         |   |   | 1,260,545 |   |   |   | 1,083,022 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Stockholders'                  equity                                                                                                                    |   |   |   |   |   |   |   |   |
| Preferred                  stock: par value $.001; 5,000,000 shares authorized; none issued                  and                  outstanding            |   |   | - |   |   |   | - |   |
| Common                  stock: par value $.001; 95,000,000 shares authorized; 13,220,843                  shares                  issued and outstanding |   |   | 13,221 |   |   |   | 13,221 |   |
| Additional                  paid-in capital                                                                                                              |   |   | 1,960,634 |   |   |   | 1,952,634 |   |
| Other                  comprehensive income                                                                                                              |   |   | 605,720 |   |   |   | 381,579 |   |
| Retained                  earnings                                                                                                                       |   |   | 8,567,646 |   |   |   | 7,200,742 |   |
| Total                  stockholders' equity                                                                                                              |   |   | 11,147,221 |   |   |   | 9,548,176 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| **Total                  liabilities and stockholders' equity**                                                                                          |   | $ | 14,277,569 |   |   | $ | 11,866,969 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |

----

| **CHINA                  INDUSTRIAL WASTE MANAGEMENT, INC.**                    |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**       |   |
| **(In                  U.S. dollars)**                                          |   |
| **(Unaudited)**                                                                 |   |
|                                                                                                                    |   |
|                                                                                                                    |   |
|                                                                                                                    |   |
|                                                                                                                    |   |
|                                                                                                                    |   | Three                  Months Ended June 30, |   |   | Six                  Months Ended June 30, |   |
|                                                                                                                    |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                    |   |   |   |   | Restated |   |   |   |   |   | Restated |   |
|  Operating                  revenue                                                                                |   | $ | 2,464,263 |   |   | $ | 1,485,653 |   |   | $ | 4,147,235 |   |   | $ | 3,037,090 |   |
|  Costs                  of revenue (including depreciation)                                                        |   |   | 853,677 |   |   |   | 537,717 |   |   |   | 1,363,445 |   |   |   | 978,605 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Gross                  profit                                                                                     |   |   | 1,610,586 |   |   |   | 947,936 |   |   |   | 2,783,790 |   |   |   | 2,058,485 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating                  expenses                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Selling                  expenses                                                                                 |   |   | 277,783 |   |   |   | 76,601 |   |   |   | 482,024 |   |   |   | 230,080 |   |
|  General                  and administrative expenses                                                              |   |   | 579,847 |   |   |   | 290,327 |   |   |   | 797,007 |   |   |   | 543,364 |   |
|  Total                  operating expenses                                                                         |   |   | 857,630 |   |   |   | 366,928 |   |   |   | 1,279,031 |   |   |   | 773,444 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Income                  from operations                                                                           |   |   | 752,956 |   |   |   | 581,008 |   |   |   | 1,504,759 |   |   |   | 1,285,041 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other                  income(expense)                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest                  income                                                                                  |   |   | 9,085 |   |   |   | - |   |   |   | 11,889 |   |   |   | - |   |
|  Other                  income                                                                                     |   |   | 1,118 |   |   |   | 57,389 |   |   |   | 1,486 |   |   |   | 57,389 |   |
|  Other                  expense                                                                                    |   |   | (26 | ) |   |   | (1,416 | ) |   |   | (53 | ) |   |   | (1,451 | ) |
|  Total                  other income (expense)                                                                     |   |   | 10,177 |   |   |   | 55,973 |   |   |   | 13,322 |   |   |   | 55,938 |   |
| Net                  income before minority interest and income tax                                                     |   |   | 763,133 |   |   |   | 636,981 |   |   |   | 1,518,081 |   |   |   | 1,340,979 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Income                  tax (benefit)                                                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net                  income after income tax                                                                      |   |   | 763,133 |   |   |   | 636,981 |   |   |   | 1,518,081 |   |   |   | 1,340,979 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Minority                  interest                                                                                |   |   | 76,141 |   |   |   | 62,564 |   |   |   | 151,177 |   |   |   | 132,964 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net                  income                                                                                       |   | $ | 686,992 |   |   | $ | 574,417 |   |   | $ | 1,366,904 |   |   | $ | 1,208,015 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Foreign                  currency translation adjustment                                                          |   |   | 165,373 |   |   |   | 19,353 |   |   |   | 224,141 |   |   |   | 101,195 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Comprehensive                  income                                                                             |   | $ | 852,365 |   |   | $ | 593,770 |   |   | $ | 1,591,045 |   |   | $ | 1,309,210 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                  weighted average shares outstanding                                                              |   |   | 13,220,843 |   |   |   | 12,948,151 |   |   |   | 13,220,843 |   |   |   | 12,947,709 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                  weighted average shares outstanding                                                            |   |   | 13,220,843 |   |   |   | 12,948,151 |   |   |   | 13,220,843 |   |   |   | 12,947,709 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Basic                  and diluted net earnings per share                                                         |   | $ | 0.05 |   |   | $ | 0.04 |   |   | $ | 0.10 |   |   | $ | 0.09 |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **CHINA                    INDUSTRIAL WASTE MANAGEMENT, INC.**                               |   |
|---------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                    STATEMENTS OF CASH FLOWS**                                      |   |
| (In                    U.S. dollars)                                                         |   |
| (Unaudited)                                                                                  |   |
|                                                                                              |   |
|                                                                                              |   |
|                                                                                              |   | Six                    Months Ended June 30, |   |
|                                                                                              |   | 2007 |   |   | 2006 |   |
|                                                                                              |   |   |   |   | Restated |   |
| Cash                    flows from operating activities:                                          |   |   |   |   |   |   |
|  Net                    income                                                               |   | $ | 1,366,904 |   |   | $ | 1,208,015 |   |
|  Adjustments                    to reconcile net income to net cash                          |   |   |   |   |   |   |   |   |
|  provided                    by operating activities:                                        |   |   |   |   |   |   |   |   |
|     Minority                    interest                                      |   |   | 151,177 |   |   |   | 132,964 |   |
|     Depreciation                                                              |   |   | 218,250 |   |   |   | 162,280 |   |
|     Amortization                                                              |   |   | 17,915 |   |   |   | 17,212 |   |
|     Bad                    debt allowance                                     |   |   | - |   |   |   | - |   |
|     Stock                    issued for services                              |   |   | 8,000 |   |   |   | - |   |
|     Accretion                    expenses                                     |   |   | 13,910 |   |   |   | 12,491 |   |
|  Changes                    in operating assets and liabilities:                             |   |   |   |   |   |   |   |   |
|     Accounts                    receivable                                    |   |   | (36,476 | ) |   |   | (106,083 | ) |
|     Inventory                                                                 |   |   | (272,455 | ) |   |   | (19,753 | ) |
|     Other                    receivables                                      |   |   | (148,646 | ) |   |   | 81,090 |   |
|     Advance                    to suppliers                                   |   |   | (9,138 | ) |   |   | (285 | ) |
|     Prepaid                    expense                                        |   |   | (22,349 | ) |   |   | 500 |   |
|     Accrued                    expense                                        |   |   | 471,927 |   |   |   | 70,909 |   |
|     Accounts                    payable & other payables                  |   |   | 111,217 |   |   |   | (78,445 | ) |
|     Tax                    payable                                            |   |   | (1,354 | ) |   |   | 24,998 |   |
|  Net                    cash provided by operating activities                                |   |   | 1,868,882 |   |   |   | 1,505,893 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
|  Cash                    flows from investing activiies                                      |   |   |   |   |   |   |   |   |
|     Equity                    investment                                      |   |   | (1,269,825 | ) |   |   | (35,233 | ) |
|     Purchase                    of property and equipment                     |   |   | (74,472 | ) |   |   | (175,552 | ) |
|     Construction                    contracts                                 |   |   | (1,297,834 | ) |   |   | (343,238 | ) |
|     Due                    from related party                                 |   |   | (239,625 | ) |   |   | - |   |
|     Proceeds                    on sale of equity investments                 |   |   | - |   |   |   | - |   |
|  Net                    cash used in investing activities                                    |   |   | (2,881,756 | ) |   |   | (554,023 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |
|  Cash                    flows from financing activities                                     |   |   |   |   |   |   |   |   |
|  Net                    cash used in financing activities                                    |   |   | - |   |   |   | - |   |
|                                                                                              |   |   |   |   |   |   |   |   |
|  Effect                    of exchange rate on cash                                          |   |   | 132,640 |   |   |   | 31,853 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
|  Net                    increase (decrease) in cash and cash equivalents                |   |   | (880,234 | ) |   |   | 983,723 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
|  Cash                    and cash equivalents, beginning of period                           |   |   | 5,713,925 |   |   |   | 2,944,179 |   |
|  Cash                    and cash equivalents, end of period                                 |   | $ | 4,833,691 |   |   | $ | 3,927,902 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
|  Supplemental                    cash flow information:                                      |   |   |   |   |   |   |   |   |
|       Cash                    paid during the year for:             |   |   |   |   |   |   |   |   |
|            Interest                        |   | $ | - |   |   | $ | - |   |
|            Income                    taxes |   |   | - |   |   |   | - |   |
|                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                              |   |   |   |   |   |   |   |   |

----

----

----

----

| Buildings                       | 30                Years      |
|---------------------------------|------------------------------|
| Machinery                       | 10                Years      |
| Vehicles                        |  8                Years |
| Office                equipment |  5                Years |

|                                                                                                                                                                                                                                                                                             |   |  As                of    |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                  |   |  June                30, 2007      |    |   | December 31,                2006 |   |
|                                                                                                                                                                                                                                                                                             |   |                                         |    |   |   |   |
| Long-term                                                                                                                                                                                                                                                                                        |   | $                                            | 405,657 |   |   |   | 381,873 |   |

----

|  Invested              company                  |   | Equity                acquired |   |   | Balance                as of                 June 30, 2007 |   |      | Balance                as of December                31, 2006 |   |
|------------------------------------------------------|--------|--------------------------------|--------|--------|-----------------------------------------------------------------|--------|-----------|---------------------------------------------------------------|--------|
|  Dongtai              Water           |   |                           | 20%    |   |                                                            | $      | 330,904   |                                                          |   | $ | 322,717 |   |
|  Dongtai              Organic    |   |                           | 49%    |   |                                                            |   | 1,286,849 |                                                          |   |   | 0 |   |
|   Total                               |   |                           |   |   |                                                            |   | 1,617,753 |                                                          |   |   | 322,717 |   |

----

----

----

*Fair Value      Measurements*

----

**Balance      Sheet**

|                                                             |   | Original                    |       |   | Restated |   |
|------------------------------------------------------------------|--------|-----------------------------|------------|--------|----------|--------|
|                                                             |   | December                31, |       |
|                                                             |   | 2006                        |       |   | 2006     |   |
| Current                assets                                    |   |                        |       |   |     |   |
| Cash                and cash equivalents                         |   | $                           | 5,660,698  |   |     | $      | 5,713,925 |   |
| Trade                accounts receivable                         |   |                        | 151,144    |   |     |   | 151,144 |   |
| Other                receivables                                 |   |                        | 50,789     |   |     |   | 35,999 |   |
| Inventory                                                        |   |                        | 602,582    |   |     |   | 602,944 |   |
| Advances                to suppliers                             |   |                        | 374,046    |   |     |   | 374,046 |   |
| Deferred                expense                                  |   |                        | 20,490     |   |     |   | 20,490 |   |
|                                                             |   |                        |       |   |     |   |   |   |
| Total                current assets                              |   |                        | 6,859,749  |   |     |   | 6,898,548 |   |
|                                                             |   |                        |       |   |     |   |   |   |
| Investment                                                       |   |                        | 361,136    |   |     |   | 322,717 |   |
| Property,                plant & equipment                   |   |                        | 3,927,234  |   |     |   | 4,189,517 |   |
| Less:                Accumulated depreciation                    |   |                        | (1,487,340 | )      |     |   | (1,502,899 | ) |
| Net                property, plant and equipment                 |   |                        | 2,439,894  |   |     |   | 2,686,618 |   |
| Construction                in progress                          |   |                        | 202,974    |   |     |   | 202,974 |   |
| Land                usage right, net of accumulated amortization |   |                        | 1,524,319  |   |     |   | 1,524,319 |   |
| Related                party Receivable                          |   |                        | 231,793    |   |     |   | 231,793 |   |
|                                                             |   |                        |       |   |     |   |   |   |
| ** Total                assets**                            |   | $                           | 11,619,865 |   |     | $      | 11,866,969 |   |
|                                                             |   |                        |       |   |     |   |   |   |
| ** LIABILITIES                AND STOCKHOLDERS' EQUITY**    |   |                        |       |   |     |   |   |   |
| Current                liabilities                               |   |                        |       |   |     |   |   |   |
| Accounts                payable                                  |   | $                           | 92,255     |   |     | $      | 92,255 |   |
| Tax                payable                                       |   |                        | 6,346      |   |     |   | 6,346 |   |
| Deferred                Sales                                    |   |                        | 455,548    |   |     |   | 455,548 |   |
| Accrued                expenses                                  |   |                        | 15,410     |   |     |   | 15,768 |   |
| Other                payable                                     |   |                        | 181,136    |   |     |   | 283,981 |   |
| Total                current liabilities                         |   |                        | 750,695    |   |     |   | 853,898 |   |
|                                                             |   |                        |       |   |     |   |   |   |
| Long-term                debt                                    |   |                        |       |   |     |   |   |   |
| ARO                liability                                     |   |                        | -          |   |     |   | 381,873 |   |
|                                                             |   |                        |       |   |     |   |   |   |
| Total                liabilities                                 |   |                        | 750,695    |   |     |   | 1,235,771 |   |
|                                                             |   |                        |       |   |     |   |   |   |
| Minority                interest in subsidiary                   |   |                        | 1,086,917  |   |     |   | 1,083,022 |   |
|                                                             |   |                        |       |   |     |   |   |   |
| Stockholders'                equity                              |   |                        |       |   |     |   |   |   |
| Common                stock                                      |   |                        | 13,221     |   |     |   | 13,221 |   |
| Additional                paid-in capital                        |   |                        | 1,952,634  |   |     |   | 1,952,634 |   |
| Other                comprehensive income                        |   |                        | 478,500    |   |     |   | 381,579 |   |
| Retained                earnings                                 |   |                        | 7,337,898  |   |     |   | 7,200,742 |   |
| Total                stockholders' equity                        |   |                        | 9,782,253  |   |     |   | 9,548,176 |   |
|                                                             |   |                        |       |   |     |   |   |   |
| **Total                liabilities and stockholders' equity**    |   | $                           | 11,619,865 |   |     | $      | 11,866,969 |   |

----

**Income      Statements**

|                                                                                                 |   | Original                                            |       |   | Restated |   |
|------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|------------|--------|----------|--------|
|                                                                                                 |   | For Three                Months Ended June 30, |       |
|                                                                                                 |   | 2006                                                |       |   | 2006     |   |
|  Revenue                                                                                        |   | $                                                   | 1,485,653  |   |     | $      | 1,485,653 |   |
|  Costs                of revenue (including depreciation)                                       |   |                                                | 521,620    |   |     |   | 537,717 |   |
|  Gross                profit                                                                    |   |                                                | 964,033    |   |     |   | 947,936 |   |
|                                                                                                 |   |                                                |       |   |     |   |   |   |
|  Operating                expenses                                                              |   |                                                |       |   |     |   |   |   |
|  Selling                expenses                                                                |   |                                                | 76,601     |   |     |   | 76,601 |   |
|  General                and administrative expenses                                             |   |                                                | 290,327    |   |     |   | 290,327 |   |
|  Total                operating expenses                                                        |   |                                                | 366,928    |   |     |   | 366,928 |   |
|                                                                                                 |   |                                                |       |   |     |   |   |   |
|  Income                from operations                                                          |   |                                                | 597,105    |   |     |   | 581,008 |   |
|                                                                                                 |   |                                                |       |   |     |   |   |   |
|  Other                income (expense)                                                          |   |                                                |       |   |     |   |   |   |
|  Other                income                                                                    |   |                                                | 57,389     |   |     |   | 57,389 |   |
|  Other                expense                                                                   |   |                                                | (1,416     | )      |     |   | (1,416 | ) |
|  Total                other income (expense)                                                    |   |                                                | 55,973     |   |     |   | 55,973 |   |
|  Net                income before minority interest and income tax                              |   |                                                | 653,078    |   |     |   | 636,981 |   |
|                                                                                                 |   |                                                |       |   |     |   |   |   |
|  Income                tax (benefit)                                                            |   |                                                | -          |   |     |   | - |   |
|                                                                                                 |   |                                                |       |   |     |   |   |   |
|  Net                income after income tax                                                     |   |                                                | 653,078    |   |     |   | 636,981 |   |
|                                                                                                 |   |                                                |       |   |     |   |   |   |
|  Minority                interest                                                               |   |                                                | 64,174     |   |     |   | 62,564 |   |
|                                                                                                 |   |                                                |       |   |     |   |   |   |
|  Net                income                                                                      |   | $                                                   | 588,904    |   |     | $      | 574,417 |   |
|                                                                                                 |   |                                                |       |   |     |   |   |   |
|  Foreign                currency translation adjustment                                         |   |                                                | 19,258     |   |     |   | 19,353 |   |
|                                                                                                 |   |                                                |       |   |     |   |   |   |
|  Comprehensive                income                                                            |   | $                                                   | 608,162    |   |     | $      | 593,770 |   |
|                                                                                                 |   |                                                |       |   |     |   |   |   |
| Basic                and diluted weighted average                shares   outstanding |   |                                                | 12,948,151 |   |     |   | 12,948,151 |   |
|                                                                                                 |   |                                                |       |   |     |   |   |   |
| Basic                and diluted net earnings per share                                              |   |                                                | 0.04       |   |     | $      | 0.04 |   |

----

|                                                                                                 |   | Original                                          |       |   | Restated |   |
|------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|------------|--------|----------|--------|
|                                                                                                 |   | For Six                Months Ended June 30, |       |
|                                                                                                 |   | 2006                                              |       |   | 2006     |   |
|  Revenue                                                                                        |   | $                                                 | 3,037,090  |   |     | $      | 3,037,090 |   |
|  Costs                of revenue (including depreciation)                                       |   |                                              | 960,398    |   |     |   | 978,605 |   |
|  Gross                profit                                                                    |   |                                              | 2,076,692  |   |     |   | 2,058,485 |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |
|  Operating                expenses                                                              |   |                                              |       |   |     |   |   |   |
|  Selling                expenses                                                                |   |                                              | 230,080    |   |     |   | 230,080 |   |
|  General                and administrative expenses                                             |   |                                              | 543,364    |   |     |   | 543,364 |   |
|  Total                operating expenses                                                        |   |                                              | 773,444    |   |     |   | 773,444 |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |
|  Income                from operations                                                          |   |                                              | 1,303,248  |   |     |   | 1,285,041 |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |
|  Other                income (expense)                                                          |   |                                              |       |   |     |   |   |   |
|  Other                income                                                                    |   |                                              | 57,389     |   |     |   | 57,389 |   |
|  Other                expense                                                                   |   |                                              | (1,451     | )      |     |   | (1,451 | ) |
|  Total                other income (expense)                                                    |   |                                              | 55,938     |   |     |   | 55,938 |   |
|  Net                income before minority interest and income tax                              |   |                                              | 1,359,186  |   |     |   | 1,340,979 |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |
|  Income                tax (benefit)                                                            |   |                                              | -          |   |     |   | - |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |
|  Net                income after income tax                                                     |   |                                              | 1,359,186  |   |     |   | 1,340,979 |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |
|  Minority                interest                                                               |   |                                              | 134,785    |   |     |   | 132,964 |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |
|  Net                income                                                                      |   | $                                                 | 1,224,401  |   |     | $      | 1,208,015 |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |
|  Foreign                currency translation adjustment                                         |   |                                              | 101,084    |   |     |   | 101,195 |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |
|  Comprehensive                income                                                            |   | $                                                 | 1,325,485  |   |     | $      | 1,309,210 |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |
| Basic                and diluted weighted average                shares   outstanding |   |                                              | 12,947,709 |   |     |   | 12,947,709 |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |
| Basic                and diluted net earnings per share                                              |   |                                              | 0.09       |   |     | $      | 0.09 |   |
|                                                                                                 |   |                                              |       |   |     |   |   |   |

----

**Statement      of Cash Flows**

|                                                                         |   | Original                                                            |      |   | Restated |   |
|------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|-----------|--------|----------|--------|
|                                                                         |   | For Six                Months Ended June 30,    |      |
|                                                                         |   | 2006                                                                |      |   | 2006     |   |
| Cash                flows from operating activities:                         |   |                                                                |      |   |     |   |
|  Net                income                                              |   | $                                                                   | 1,224,401 |   |     | $      | 1,208,015 |   |
|  Adjustments                to reconcile net income to net cash         |   |                                                                |      |   |     |   |   |   |
|  provided                by operating activities:                       |   |                                                                |      |   |     |   |   |   |
|                                                                         |   |                                                                |      |   |     |   |   |   |
|     Minority                interest                     |   |                                                                | 134,785   |   |     |   | 132,964 |   |
|     Depreciation                                         |   |                                                                | 142,536   |   |     |   | 162,280 |   |
|     Amortization                                         |   |                                                                | 17,890    |   |     |   | 17,212 |   |
|     Accretion                expenses                    |   |                                                                | -         |   |     |   | 12,491 |   |
|  Changes                in operating assets and liabilities:            |   |                                                                |      |   |     |   |   |   |
|     Accounts                receivable                   |   |                                                                | (108,698  | )      |     |   | (106,083 | ) |
|     Inventory                                            |   |                                                                | (24,033   | )      |     |   | (19,753 | ) |
|     Other                receivables                     |   |                                                                | 4,278     |   |     |   | 81,090 |   |
|     Advance                to suppliers                  |   |                                                                | (148,136  | )      |     |   | (285 | ) |
|     Prepaid                expense                       |   |                                                                | (16,421   | )      |     |   | 500 |   |
|     Accrued                expense                       |   |                                                                | -         |   |     |   | 70,909 |   |
|     Accounts                payable & other payables |   |                                                                | 60,735    |   |     |   | (78,445 | ) |
|     Tax                payable                           |   |                                                                | -         |   |     |   | 24,998 |   |
|  Net                cash provided by operating activities               |   |                                                                | 1,287,337 |   |     |   | 1,505,893 |   |
|                                                                         |   |                                                                |      |   |     |   |   |   |
|  Cash                flows from investing activities                    |   |                                                                |      |   |     |   |   |   |
|     Equity                investment                     |   |                                                                | -         |   |     |   | (35,233 | ) |
|     Purchase                of property and equipment    |   |                                                                | (430,962  | )      |     |   | (175,552 | ) |
|     Construction                contracts                |   |                                                                | -         |   |     |   | (343,238 | ) |
|  Net                cash used in investing activities                   |   |                                                                | (430,962  | )      |     |   | (554,023 | ) |
|                                                                         |   |                                                                |      |   |     |   |   |   |
|  Cash                flows from financing activities                    |   |                                                                |      |   |     |   |   |   |
|  Net                cash provided by financing activities               |   |                                                                | 23,598    |   |     |   | - |   |
|                                                                         |   |                                                                |      |   |     |   |   |   |
|  Effect                of exchange rate on cash                         |   |                                                                | 101,084   |   |     |   | 31,853 |   |
|                                                                         |   |                                                                |      |   |     |   |   |   |
|  Net                increase in cash and cash equivalents               |   |                                                                | 981,057   |   |     |   | 983,723 |   |
|                                                                         |   |                                                                |      |   |     |   |   |   |
|  Cash                and cash equivalents, beginning of period          |   |                                                                | 2,944,179 |   |     |   | 2,944,179 |   |
|  Cash                and cash equivalents, end of period                |   | $                                                                   | 3,927,902 |   |     | $      | 3,927,902 |   |

----

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

----

| ·   | to                change the name of the Company to China Industrial Waste Management,                 Inc. and apply for a new trading symbol of                CIWT.OB. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | to                authorize the Board of Directors to effect a one-for-one hundred                (1:100)                reverse stock split of the outstanding shares of Common Stock (the                "Reverse Split"). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | to                approve the Company's 2006 Equity Incentive                Plan. |
|--------------------|------------------------------------------------------------------------------------|

|                                                 |   |   | Three                  Months Ended        |   |   |   | Six                  Months Ended      |   |
|------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------|--------|--------|--------|-----------------------------------------------------------------|--------|
|                                                 |   |   | June                  30,                            |   |   |   | June                  30,         |   |
|                                                 |   |   | 2007                                                                          |   |   |   | 2006                                                            |   |   |   | 2007 |   |   |   | 2006 |   |
| Service                  fees                        |   |   | 1,031,021                                                                     |   |   |   | 676,835                                                         |   |   |   | 1,868,084 |   |   |   | 1,717,993 |   |
| Sales                  of cupric sulfate             |   |   | 561,859                                                                       |   |   |   | 178,917                                                         |   |   |   | 950,192 |   |   |   | 471,376 |   |
| Sales                  of other recycled commodities |   |   | 871,383                                                                       |   |   |   | 629,901                                                         |   |   |   | 1,328,959 |   |   |   | 847,721 |   |
|      Total                  |   |   | 2,464,263                                                                     |   |   |   | 1,485,653                                                       |   |   |   | 4,147,235 |   |   |   | 3,037,090 |   |

|                                                |   |   | Three                  Months Ended                                        |   |   |   |  Six                  Months Ended                        |
|-----------------------------------------------------|--------|--------|---------------------------------------------------------------------------------|--------|--------|--------|---------------------------------------------------------------------|
|                                                |   |   |     June                  30,      |   |   |   |  June                  30,       |
|                                                |   |   | 2007                                                                            |   |   |   | 2006                                                           |   |   |   |  2007  |   |   |   | 2006  |   |
| Cost                  of service fees               |   |   | 354,530                                                                         |   |   |   | 266,591                                                             |   |   |   | 583,148 |   |   |   | 445,356 |   |
| Cost                  of cupric sulfate             |   |   | 168,454                                                                         |   |   |   | 41,290                                                              |   |   |   | 265,751 |   |   |   | 154,052 |   |
| Cost                  of other recycled commodities |   |   | 330,693                                                                         |   |   |   | 229,836                                                             |   |   |   | 514,546 |   |   |   | 379,197 |   |
|      Total                 |   |   | 853,677                                                                         |   |   |   | 537,717                                                             |   |   |   | 1,363,445 |   |   |   | 978,605 |   |

----

|                                                     |   | Six                months ended June 30, 2007 |       |   | Six                months ended June 30, 2006 |   |
|----------------------------------------------------------|--------|-----------------------------------------------|------------|--------|-----------------------------------------------|--------|
| Net                cash provided by operating activities |   | $                                             | 1,868,882  |   |                                          | $      | 1,505,893 |   |
| Net                cash used in investing activities     |   |                                          | (2,881,756 | )      |                                          |   | (554,023 | ) |
| Cash                flows from financing activities      |   |                                          | --         |   |                                          |   | -- |   |

----

----

**OFF-BALANCE      SHEET      ARRANGEMENTS**

**Item      3.                         Controls      and Procedures.**

----

**PART      II**

**Item      1.                            Legal      Proceedings.**

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

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

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

**Item      5.                            Other      Information.**

**Item      6.                            Exhibits**

| 31.1                -  |  Certification                of Chief Executive Officer  and Chief Financial Officer                pursuant  to Section 302 of the Sarbanes-Oxley Act of                2002. |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1                -  |  Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                Section                906 of the Sarbanes-Oxley Act of                2002. |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **CHINA              INDUSTRIAL WASTE              MANAGEMENT,  INC.** |                                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|--------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                        |                                 |   |
| Date:                September                19,                2007                                                                     | By:                                                                         | /s/ Dong              Jinqing   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                        | Dong              Jinqing            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                        | Chief              Executive Officer |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                        |                                 |   |