**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-QSB/A**

**(Amendment      No. 1)**

| x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2007 |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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**CHINA      INDUSTRIAL WASTE MANAGEMENT INC.**

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

| c/o                  Dalian Dongtai Industrial Waste Treatment Co., Ltd |                        |
|-------------------------------------------------------------------------|-----------------------------|
| No.                  1 Huaihe West Road E-T-D-Zone, Dalian, China       | 116600                      |
| (ADDRESS                  OF PRINCIPAL EXECUTIVE OFFICES)               | (ZIP                  CODE) |

----

----

**PART      I. **
**FINANCIAL      INFORMATION**

**Item      1. **
**Financial      Statements**

**CHINA      INDUSTRIAL WASTE MANAGEMENT, INC.**

**CONSOLIDATED        BALANCE SHEETS**

|                                                                                                                                                     |   | March                  31, |       | December                  31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|-------------------------------|--------|
|                                                                                                                                                     |   | 2007                       |       | 2006                          |   |
|                                                                                                                                                     |   | (Unaudited)                |       |                          |   |
|                                                                                                                                                     |   | Restated                   |       | Restated                      |   |
| **ASSETS**                                                                                                                                               |   |                       |       |                          |   |
| Current                  assets                                                                                                                          |   |                       |       |                          |   |
| Cash                  and cash equivalents                                                                                                               |   | $                          | 3,626,913  |                          | $      | 5,713,925 |   |
| Trade                  accounts receivable, net                                                                                                          |   |                       | 258,823    |                          |   | 151,144 |   |
| Other                  receivables                                                                                                                       |   |                       | 13,091     |                          |   | 35,999 |   |
| Inventory                                                                                                                                                |   |                       | 774,326    |                          |   | 602,944 |   |
| Advances                  to suppliers                                                                                                                   |   |                       | 3,901      |                          |   | 374,046 |   |
| Deferred                  expense                                                                                                                        |   |                       | 40,142     |                          |   | 20,490 |   |
| Tax                  receivable                                                                                                                          |   |                       | 6,398      |                          |   | - |   |
|                                                                                                                                                     |   |                       |       |                          |   |   |   |
| Total                  current assets                                                                                                                    |   |                       | 4,723,594  |                          |   | 6,898,548 |   |
|                                                                                                                                                     |   |                       |       |                          |   |   |   |
| Investment                                                                                                                                               |   |                       | 1,592,925  |                          |   | 322,717 |   |
| Property,                  plant & equipment                                                                                                         |   |                       | 4,250,965  |                          |   | 4,189,517 |   |
| Less:                  Accumulated depreciation                                                                                                          |   |                       | (1,631,047 | )                             |   | (1,502,899 | ) |
| Net                  property, plant and equipment                                                                                                       |   |                       | 2,619,918  |                          |   | 2,686,618 |   |
| Construction                  in progress                                                                                                                |   |                       | 1,851,374  |                          |   | 202,974 |   |
| Land                  usage right, net of accumulated amortization                                                                                       |   |                       | 1,530,064  |                          |   | 1,524,319 |   |
| Related                  party Receivable                                                                                                                |   |                       | 363,321    |                          |   | 231,793 |   |
| **Total                  assets**                                                                                                                        |   | $                          | 12,681,196 |                          | $      | 11,866,969 |   |
|                                                                                                                                                     |   |                       |       |                          |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                |   |                       |       |                          |   |   |   |
| Current                  liabilities                                                                                                                     |   |                       |       |                          |   |   |   |
| Accounts                  payable                                                                                                                        |   | $                          | 236,455    |                          | $      | 92,255 |   |
| Tax                  payable                                                                                                                             |   |                       | -          |                          |   | 6,346 |   |
| Deferred                  Sales                                                                                                                          |   |                       | 459,936    |                          |   | 455,548 |   |
| Accrued                  expenses                                                                                                                        |   |                       | 17,490     |                          |   | 15,768 |   |
| Other                  payable                                                                                                                           |   |                       | 118,722    |                          |   | 283,981 |   |
| Total                  current liabilities                                                                                                               |   |                       | 832,603    |                          |   | 853,898 |   |
|                                                                                                                                                     |   |                       |       |                          |   |   |   |
| Asset                  retirement obligation liability for landfills                                                                                     |   |                       | 392,492    |                          |   | 381,873 |   |
| Total                  liabilities                                                                                                                       |   |                       | 1,225,095  |                          |   | 1,235,771 |   |
|                                                                                                                                                     |   |                       |       |                          |   |   |   |
| Minority                  interest in subsidiary                                                                                                         |   |                       | 1,165,245  |                          |   | 1,083,022 |   |
|                                                                                                                                                     |   |                       |       |                          |   |   |   |
| Stockholders'                  equity                                                                                                                    |   |                       |       |                          |   |   |   |
| 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                                                                                                              |   |                       | 1,956,634  |                          |   | 1,952,634 |   |
| Other                  comprehensive income                                                                                                              |   |                       | 440,347    |                          |   | 381,579 |   |
| Retained                  earnings                                                                                                                       |   |                       | 7,880,654  |                          |   | 7,200,742 |   |
| Total                  stockholders' equity                                                                                                              |   |                       | 10,290,856 |                          |   | 9,548,176 |   |
|                                                                                                                                                     |   |                       |       |                          |   |   |   |
| **Total                  liabilities and stockholders' equity**                                                                                          |   | $                          | 12,681,196 |                          | $      | 11,866,969 |   |

----

**CHINA        INDUSTRIAL WASTE MANAGEMENT, INC.**

**CONSOLIDATED        STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

**(In        U.S. dollars)**

**(Unaudited)        **

|                                                                |   | For                  Three Months Ended March 31, |       |
|---------------------------------------------------------------------|--------|---------------------------------------------------|------------|
|                                                                |   | 2007                                              |       | 2006 |   |
|                                                                |   | Restated                                          |       | Restated |   |
| Revenue                                                             |   | $                                                 | 1,682,972  |   | $ | 1,551,437 |   |
| Costs                  of revenue (including depreciation)          |   |                                              | 509,768    |   |   | 440,888 |   |
| Gross                  profit                                       |   |                                              | 1,173,204  |   |   | 1,110,549 |   |
|                                                                |   |                                              |       |   |   |   |   |
| Operating                  expenses                                 |   |                                              |       |   |   |   |   |
| Selling                  expenses                                   |   |                                              | 204,241    |   |   | 153,479 |   |
| General                  and administrative expenses                |   |                                              | 217,160    |   |   | 253,037 |   |
| Total                  operating expenses                           |   |                                              | 421,401    |   |   | 406,516 |   |
|                                                                |   |                                              |       |   |   |   |   |
| Income                  from operations                             |   |                                              | 751,803    |   |   | 704,033 |   |
|                                                                |   |                                              |       |   |   |   |   |
| Other                  income(expense)                              |   |                                              |       |   |   |   |   |
| Interest                  income                                    |   |                                              | 2,804      |   |   |   |   |
| Other                  income                                       |   |                                              | 368        |   |   |   |   |
| Other                  expense                                      |   |                                              | (27        | ) |   | (35 | ) |
| Total                  other income (expense)                       |   |                                              | 3,145      |   |   | (35 | ) |
| Net                  income before minority interest and income tax |   |                                              | 754,948    |   |   | 703,998 |   |
|                                                                |   |                                              |       |   |   |   |   |
| Income                  tax (benefit)                               |   |                                              | -          |   |   | - |   |
|                                                                |   |                                              |       |   |   |   |   |
| Net                  income after income tax                        |   |                                              | 754,948    |   |   | 703,998 |   |
|                                                                |   |                                              |       |   |   |   |   |
| Minority                  interest                                  |   |                                              | 75,036     |   |   | 70,400 |   |
|                                                                |   |                                              |       |   |   |   |   |
| Net                  income                                         |   | $                                                 | 679,912    |   | $ | 633,598 |   |
|                                                                |   |                                              |       |   |   |   |   |
| Foreign                  currency translation adjustment            |   |                                              | 58,768     |   |   | 81,842 |   |
|                                                                |   |                                              |       |   |   |   |   |
| Comprehensive                  income                               |   | $                                                 | 738,680    |   | $ | 715,440 |   |
|                                                                |   |                                              |       |   |   |   |   |
| Basic                  weighted average shares outstanding          |   |                                              | 13,220,843 |   |   | 13,140,843 |   |
|                                                                |   |                                              |       |   |   |   |   |
| Diluted                  weighted average shares outstanding        |   |                                              | 13,220,843 |   |   | 13,140,843 |   |
|                                                                |   |                                              |       |   |   |   |   |
| Basic                  and diluted net earnings per share           |   | $                                                 | 0.05       |   | $ | 0.05 |   |

----

**CHINA        INDUSTRIAL WASTE MANAGEMENT, INC.**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

|                                                                    |   | 2007     |       | 2006     |   |
|-------------------------------------------------------------------------|--------|----------|------------|----------|--------|
|                                                                    |   | Restated |       | Restated |   |
| Cash                  flows from operating activities:                  |   |     |       |     |   |
| Net                  income                                             |   | $        | 679,912    |     | $      | 633,598 |   |
| Adjustments                  to reconcile net income to net cash        |   |     |       |     |   |   |   |
| provided                  by operating activities:                      |   |     |       |     |   |   |   |
| Minority                  interest                                      |   |     | 75,036     |     |   | 70,400 |   |
| Depreciation                  and Amortization                          |   |     | 122,186    |     |   | 81,993 |   |
| Stock                  issued for services                              |   |     | 4,000      |     |   | - |   |
| Accretion                  expenses                                     |   |     | 6,916      |     |   | 6,225 |   |
|                                                                    |   |     |       |     |   |   |   |
| Changes                  in operating assets and liabilities:           |   |     |       |     |   |   |   |
| Accounts                  receivable                                    |   |     | (105,857   | )        |   | (157,391 | ) |
| Inventory                                                               |   |     | (165,004   | )        |   | (3,862 | ) |
| Other                  receivables                                      |   |     | 23,175     |     |   | 62,157 |   |
| Advances                  to suppliers                                  |   |     | (1,843     | )        |   | (333 | ) |
| Deferred                  expense                                       |   |     | (19,388    | )        |   | 10,201 |   |
| Accounts                  payable and other payables                    |   |     | (24,598    | )        |   | (158,110 | ) |
| Accrued                  expense and deferred sales                     |   |     | 1,565      |     |   | - |   |
| Tax                  payable                                            |   |     | (12,761    | )        |   | 53,695 |   |
| Net                  cash provided by operating activities              |   |     | 583,339    |     |   | 598,573 |   |
|                                                                    |   |     |       |     |   |   |   |
| Cash                  flows from investing activiies                    |   |     |       |     |   |   |   |
| Investment                  in subsidiary                               |   |     | (1,262,735 | )        |   | (37,297 | ) |
| Purchase                  of property and equipment                     |   |     | (21,019    | )        |   | (155,427 | ) |
| Construction                  contracts                                 |   |     | (1,266,472 | )        |   | (279,960 | ) |
| Advances                  to related party                              |   |     | (128,851   | )        |   | - |   |
| Repayment                  of advances to related party            |   |     |  -    |     |   | 34,811 |   |
| Net                  cash used in investing activities                  |   |     | (2,679,077 | )        |   | (437,873 | ) |
|                                                                    |   |     |       |     |   |   |   |
| Cash                  flows from financing activities                   |   |     |       |     |   |   |   |
| Net                  cash provided by financing activities              |   |     | -          |     |   | - |   |
|                                                                    |   |     |       |     |   |   |   |
| Effect                  of exchange rate on cash                        |   |     | 8,726      |     |   | 23,961 |   |
|                                                                    |   |     |       |     |   |   |   |
| Net                    increase (decrease) in cash and cash equivalents |   |     | (2,087,012 | )        |   | 184,661 |   |
|                                                                    |   |     |       |     |   |   |   |
| Cash                  and cash equivalents, beginning of period         |   |     | 5,713,925  |     |   | 2,944,179 |   |
| Cash                  and cash equivalents, end of period               |   | $        | 3,626,913  |     | $      | 3,128,840 |   |
|                                                                    |   |     |       |     |   |   |   |
| Supplemental                  cash flow information:                    |   |     |       |     |   |   |   |
| Cash                    paid during the period for:                     |   |     |       |     |   |   |   |
| Interest                                                                |   | $        | -          |     | $      | - |   |
| Income                  taxes                                           |   |     | -          |     |   | - |   |
| Non-cash                  investing and financing activities:           |   |     |       |     |   |   |   |
| Stock                  issued for services                              |   |     | 4,000      |     |   | - |   |

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**CHINA      INDUSTRIAL WASTE MANAGEMENT, INC.**

**1.        **Nature        of operations****

**2.**
**Basis        of Presentation**

----

**3.**
**Summary        of Significant Accounting Policies**

----

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

----

|                                                                                                                                                                                                                                                                                             |   |  As                of    |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|
|                                                  |   |  March                31, 2007     |    | December 31, 2006 |   |
| Asset                retirement obligation liability for landfills                                                                                                                                                                                                                               |   | $                                            | 392,492 |   |   | 381,873 |   |

|  Invested                company |   | Equity                acquired |   | Balance                as of                 March 31, 2007 |   | Balance                as of December                31, 2006 |   |
|---------------------------------------|--------|--------------------------------|--------|------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|  Dongtai                Water    |   |                           | 18     | %                                                                | $      | 325,826                                                       |   | $ | 322,717 |   |
|  Dongtai                Organic  |   |                           | 49     | %                                                                |   | 1,267,099                                                     |   |   | 0 |   |
| Total                                 |   |                           |        |                                                             |   | 1,592,925                                                     |   |   | 322,717 |   |

| · | A                significant decrease in the market price of an asset or asset group; |
|--------|---------------------------------------------------------------------------------------|

| · | A                significant adverse change in the extent or manner in which an asset                or                asset group is being used or in its physical condition; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                significant adverse change in legal factors or in the business climate                that could affect the value of an asset or asset group, including                an                adverse action or assessment by a regulator; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | An                accumulation of costs significantly in excess of the amount originally                expected for the acquisition or construction of a long-lived asset; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Current                period operating or cash flow losses combined with a history of operating                or cash flow losses or a projection or forecast that demonstrates                continuing losses associated with the use of a long-lived asset or                asset                group; or |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                current expectation that, more likely than not, a long-lived asset                or                asset group will be sold or otherwise disposed of significantly before                the                end of its previously estimated useful life. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

**3.      Shareholders’ equity**

**4.      Statutory Common Welfare Fund**

|   | a.     | Making                up cumulative prior years’ losses, if any;                                                                                                                                                                                                                                                                                                                                      |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | b.     | Allocations                to the “Statutory surplus reserve” of at least 10% of income after tax, as                determined under PRC accounting rules and regulations, until the                fund                amounts to 50% of the Company’s registered capital;                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | c.     | Allocations                of 5 -10% of income after tax, as determined under PRC accounting                rules                and regulations to the Company’s “Statutory common welfare fund”, which is                established for the purpose of providing employee facilities and                other                collective benefits to the Company’s employees; and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | d.     | Allocations                to the discretionary surplus reserve, if approved in the shareholders’                general meeting.                                                                                                                                                                                                                                                                     |

**5.      Current vulnerability due to certain concentrations**

**6.      Restatements**

----

**Balance      Sheet**

|                                                                                                                                               |   | Original                 |       | Restated |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|----------|--------|
|                                                                                                                                               |   | March                31, |       |
|                                                                                                                                                    |   | 2007                     |       | 2007     |   |
| **ITEMS**                                                                                                                                          |   |                     |       |     |   |
| Current                assets                                                                                                                      |   |                     |       |     |   |
| Cash                and cash equivalents                                                                                                           |   | $                        | 3,626,913  |     | $      | 3,626,913 |   |
| Trade                accounts receivable                                                                                                           |   |                     | 258,823    |     |   | 258,823 |   |
| Other                receivables                                                                                                                   |   |                     | 13,091     |     |   | 13,091 |   |
| Inventory                                                                                                                                          |   |                     | 774,326    |     |   | 774,326 |   |
| Advances                to suppliers                                                                                                               |   |                     | 3,901      |     |   | 3,901 |   |
| Deferred                expense                                                                                                                    |   |                     | 40,142     |     |   | 40,142 |   |
| Tax                receivable                                                                                                                      |   |                     | 6,398      |     |   | 6,398 |   |
|                                                                                                                                               |   |                     |       |     |   |   |   |
| Total                current assets                                                                                                                |   |                     | 4,723,594  |     |   | 4,723,594 |   |
|                                                                                                                                               |   |                     |       |     |   |   |   |
| Investment                                                                                                                                         |   |                     | 1,592,925  |     |   | 1,592,925 |   |
| Property,                plant & equipment                                                                                                     |   |                     | 3,986,672  |     |   | 4,250,965 |   |
| Less:                Accumulated depreciation                                                                                                      |   |                     | (1,607,983 | )        |   | (1,631,047 | ) |
| Net                property, plant and equipment                                                                                                   |   |                     | 2,378,689  |     |   | 2,619,918 |   |
| Construction                in progress                                                                                                            |   |                     | 1,851,374  |     |   | 1,851,374 |   |
| Land                usage right, net of accumulated amortization                                                                                   |   |                     | 1,530,064  |     |   | 1,530,064 |   |
| Related                party Receivable                                                                                                            |   |                     | 363,321    |     |   | 363,321 |   |
|                                                                                                                                               |   |                     |       |     |   |   |   |
| **Total                assets**                                                                                                                    |   | $                        | 12,439,967 |     | $      | 12,681,196 |   |
|                                                                                                                                               |   |                     |       |     |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                            |   |                     |       |     |   |   |   |
| Current                liabilities                                                                                                                 |   |                     |       |     |   |   |   |
| Accounts                payable                                                                                                                    |   | $                        | 236,455    |     | $      | 236,455 |   |
| Tax                payable                                                                                                                         |   |                     | -          |     |   | - |   |
| Deferred                Sales                                                                                                                      |   |                     | 459,936    |     |   | 459,936 |   |
| Accrued                expenses                                                                                                                    |   |                     | 17,490     |     |   | 17,490 |   |
| Other                payable                                                                                                                       |   |                     | 118,722    |     |   | 118,722 |   |
| Total                current liabilities                                                                                                           |   |                     | 832,603    |     |   | 832,603 |   |
|                                                                                                                                               |   |                     |       |     |   |   |   |
| Long-term                debt                                                                                                                      |   |                     |       |     |   |   |   |
| Asset                retirement obligation liability for landfills                                                                                 |   |                     | -          |     |   | 392,492 |   |
|                                                                                                                                               |   |                     |       |     |   |   |   |
| Total                liabilities                                                                                                                   |   |                     | 832,603    |     |   | 1,225,095 |   |
|                                                                                                                                               |   |                     |       |     |   |   |   |
| Minority                interest in subsidiary                                                                                                     |   |                     | 1,180,371  |     |   | 1,165,245 |   |
|                                                                                                                                               |   |                     |       |     |   |   |   |
| Stockholders'                equity                                                                                                                |   |                     |       |     |   |   |   |
| Common                stock: par value $.001; 90,000,000 shares authorized; 13,220,843                shares                issued and outstanding |   |                     | 13,221     |     |   | 13,221 |   |
| Additional                paid-in capital                                                                                                          |   |                     | 1,956,634  |     |   | 1,956,634 |   |
| Other                comprehensive income                                                                                                          |   |                     | 426,322    |     |   | 440,347 |   |
| Retained                earnings                                                                                                                   |   |                     | 8,030,816  |     |   | 7,880,654 |   |
| Total                stockholders' equity                                                                                                          |   |                     | 10,426,993 |     |   | 10,290,856 |   |
|                                                                                                                                               |   |                     |       |     |   |   |   |
| **Total                liabilities and stockholders' equity**                                                                                      |   | $                        | 12,439,967 |     | $      | 12,681,196 |   |

----

**Balance      Sheet**

|                                                             |   | Original                    |       | Restated |   |
|------------------------------------------------------------------|--------|-----------------------------|------------|----------|--------|
| **ITEMS**                                                        |   | 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                                    |   |                        |            |     |   |  |   |
| Asset                retirement obligation 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 March 31, |   |
| **ITEMS**                                                            |   |   | 2007                                            |   |   | 2007       |   |
| Revenue                                                              |   | $      | 1,682,972                                       |   | $      | 1,682,972  |   |
| Costs                of revenue (including depreciation)             |   |   | 495,317                                         |   |   | 509,768    |   |
| Gross                profit                                          |   |   | 1,187,655                                       |   |   | 1,173,204  |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Operating                expenses                                    |   |   |                                            |   |   |       |   |
| Selling                expenses                                      |   |   | 204,241                                         |   |   | 204,241    |   |
| General                and administrative expenses                   |   |   | 217,160                                         |   |   | 217,160    |   |
| Total                operating expenses                              |   |   | 421,401                                         |   |   | 421,401    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Income                from operations                                |   |   | 766,254                                         |   |   | 751,803    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Other                income (expense)                                |   |   |                                            |   |   |       |   |
| Interest                income                                       |   |   | 2,804                                           |   |   | 2,804      |   |
| Other                income                                          |   |   | 368                                             |   |   | 368        |   |
| Other                expense                                         |   |   | (27                                             | )      |   | (27        | )      |
| Total                other income (expense)                          |   |   | 3,145                                           |   |   | 3,145      |   |
| Net                income before minority interest and income tax    |   |   | 769,399                                         |   |   | 754,948    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Income                tax (benefit)                                  |   |   | -                                               |   |   | -          |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Net                income after income tax                           |   |   | 769,399                                         |   |   | 754,948    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Minority                interest                                     |   |   | 76,481                                          |   |   | 75,036     |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Net                income                                            |   | $      | 692,918                                         |   | $      | 679,912    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Foreign                currency translation adjustment               |   |   | (52,178                                         | )      |   | 58,768     |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Comprehensive                income                                  |   | $      | 640,740                                         |   | $      | 738,680    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Basic                and diluted weighted average shares outstanding |   |   | 13,220,843                                      |   |   | 13,220,843 |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Basic                and diluted net earnings per share              |   |   | 0.05                                            |   |   | 0.05       |   |

----

**Income      Statements**

|                                                                 |   |   | Original                                        |   |   | Restated   |   |
|----------------------------------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|------------|--------|
|                                                                 |   |   | For                Three Months Ended March 31, |   |
| **ITEMS**                                                            |   |   | 2006                                            |   |   | 2006       |   |
| Revenue                                                              |   | $      | 1,551,437                                       |   | $      | 1,551,437  |   |
| Costs                of revenue (including depreciation)             |   |   | 438,778                                         |   |   | 440,888    |   |
| Gross                profit                                          |   |   | 1,112,659                                       |   |   | 1,110,549  |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Operating                expenses                                    |   |   |                                            |   |   |       |   |
| Selling                expenses                                      |   |   | 153,479                                         |   |   | 153,479    |   |
| General                and administrative expenses                   |   |   | 253,037                                         |   |   | 253,037    |   |
| Total                operating expenses                              |   |   | 406,516                                         |   |   | 406,516    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Income                from operations                                |   |   | 706,143                                         |   |   | 704,033    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Other                income (expense)                                |   |   |                                            |   |   |       |   |
| Other                expense                                         |   |   | (35                                             | )      |   | (35        | )      |
| Total                other income (expense)                          |   |   | (35                                             | )      |   | (35        | )      |
| Net                income before minority interest and income tax    |   |   | 706,108                                         |   |   | 703,998    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Income                tax (benefit)                                  |   |   | -                                               |   |   | -          |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Net                income after income tax                           |   |   | 706,108                                         |   |   | 703,998    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Minority                interest                                     |   |   | 70,611                                          |   |   | 70,400     |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Net                income                                            |   | $      | 635,497                                         |   | $      | 633,598    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Foreign                currency translation adjustment               |   |   | 81,826                                          |   |   | 81,842     |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Comprehensive                income                                  |   | $      | 717,323                                         |   | $      | 715,440    |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Basic                and diluted weighted average shares outstanding |   |   | 13,140,843                                      |   |   | 13,140,843 |   |
|                                                                 |   |   |                                            |   |   |       |   |
| Basic                and diluted net earnings per share              |   |   | 0.05                                            |   |   | 0.05       |   |

----

**Statements      of Cash Flows**

|                                                           |   | Original                                        |       | Restated |   |
|----------------------------------------------------------------|--------|-------------------------------------------------|------------|----------|--------|
|                                                           |   | For                three Months Ended March 31, |       |
| **ITEMS**                                                      |   | 2007                                            |       | 2007     |   |
| Cash                flows from operating activities:           |   |                                            |       |     |   |
| Net                income                                      |   | $                                               | 692,918    |     | $      | 679,912 |   |
| Adjustments                to reconcile net income to net cash |   |                                            |       |     |   |   |   |
| provided                by operating activities:               |   |                                            |       |     |   |   |   |
|                                                           |   |                                            |       |     |   |   |   |
| Minority                interest                               |   |                                            | 76,481     |     |   | 75,036 |   |
| Depreciation                &                amortization  |   |                                            | 114,574    |     |   | 122,186 |   |
| Bad                debt allowance                              |   |                                            | 14,881     |     |   | - |   |
| Stock                issued for services                       |   |                                            | 4,000      |     |   | 4,000 |   |
| Accretion                expenses                              |   |                                            |       |     |   | 6,916 |   |
| Changes                in operating assets and liabilities:    |   |                                            |       |     |   |   |   |
| Accounts                receivable                             |   |                                            | (105,857   | )        |   | (105,857 | ) |
| Inventory                                                      |   |                                            | (165,004   | )        |   | (165,004 | ) |
| Other                receivables                               |   |                                            | (158,947   | )        |   | 23,175 |   |
| Advance                to suppliers                            |   |                                            | (1,843     | )        |   | (1,843 | ) |
| Prepaid                expense                                 |   |                                            | (19,388    | )        |   | (19,388 | ) |
| Deferred                sales                                  |   |                                            | 1,565      |     |   | 1,565 |   |
| Accounts                payable & other payables           |   |                                            | (23,611    | )        |   | (24,598 | ) |
| Tax                payables                                    |   |                                            | (12,761    | )        |   | (12,761 | ) |
| Net                cash provided by operating activities       |   |                                            | 417,008    |     |   | 583,339 |   |
|                                                           |   |                                            |       |     |   |   |   |
| Cash                flows from investing activities            |   |                                            |       |     |   |   |   |
| Equity                investment                               |   |                                            | (1,210,634 | )        |   | (1,262,735 | ) |
| Purchase                of property and equipment              |   |                                            | (21,019    | )        |   | (21,019 | ) |
| Advances                to related party                       |   |                                            | -          |     |   | (128,851 | ) |
| Construction                contracts                          |   |                                            | (1,266,472 | )        |   | (1,266,472 | ) |
| Net                cash used in investing activities           |   |                                            | (2,498,125 | )        |   | (2,679,077 | ) |
|                                                           |   |                                            |       |     |   |   |   |
| Cash                flows from financing activities            |   |                                            |       |     |   |   |   |
| Net                cash provided by financing activities       |   |                                            | -          |     |   | - |   |
|                                                           |   |                                            |       |     |   |   |   |
| Effect                of exchange rate on cash                 |   |                                            | 47,332     |     |   | 8,726 |   |
|                                                           |   |                                            |       |     |   |   |   |
| Net                increase in cash and cash equivalents       |   |                                            | (2,033,785 | )        |   | (2,087,012 | ) |
|                                                           |   |                                            |       |     |   |   |   |
| Cash                and cash equivalents, beginning of period  |   |                                            | 5,660,698  |     |   | 5,713,925 |   |
| Cash                and cash equivalents, end of period        |   | $                                               | 3,626,913  |     | $      | 3,626,913 |   |

----

**Statements      of Cash Flows**

|                                                           |   | Original                                        |      | Restated |   |
|----------------------------------------------------------------|--------|-------------------------------------------------|-----------|----------|--------|
|                                                           |   | For                three Months Ended March 31, |
| **ITEMS**                                                      |   | 2006                                            |      | 2006     |   |
| Cash                flows from operating activities:           |   |                                            |      |     |   |
| Net                income                                      |   | $                                               | 635,497   |     | $      | 633,598 |   |
| Adjustments                to reconcile net income to net cash |   |                                            |      |     |   |   |   |
| provided                by operating activities:               |   |                                            |      |     |   |   |   |
|                                                                |   |                                            |      |     |   |   |   |
| Minority                interest                               |   |                                            | 70,611    |     |   | 70,400 |   |
| Depreciation                                                   |   |                                            | 86,113    |     |   | 81,993 |   |
| Accretion                expenses                              |   |                                            | -         |     |   | 6,225 |   |
| Changes                in operating assets and liabilities:    |   |                                            |      |     |   |   |   |
| Accounts                receivable                             |   |                                            | (157,389  | )        |   | (157,391 | ) |
| Inventory                                                      |   |                                            | (3,862    | )        |   | (3,862 | ) |
| Other                receivables                               |   |                                            | 209,517   |     |   | 62,157 |   |
| Advance                to suppliers                            |   |                                            | (138,935  | )        |   | (333 | ) |
| Prepaid                expense                                 |   |                                            | 10,201    |     |   | 10,201 |   |
| Deferred                sales                                  |   |                                            | (6,949    | )        |   | - |   |
| Accounts                payable & other payables           |   |                                            | (158,108  | )        |   | (158,110 | ) |
| Tax                payables                                    |   |                                            | 60,643    |     |   | 53,695 |   |
| Net                cash provided by operating activities       |   |                                            | 607,339   |     |   | 598,573 |   |
|                                                           |   |                                            |      |     |   |   |   |
| Cash                flows from investing activities            |   |                                            |      |     |   |   |   |
| Equity                investment                               |   |                                            | (37,297   | )        |   | (37,297 | ) |
| Purchase                of property and equipment              |   |                                            | (155,425  | )        |   | (155,427 | ) |
| Repayment                of advances to related party          |   |                                            | -         |     |   | 34,811 |   |
| Construction                contracts                          |   |                                            | (141,355  | )        |   | (279,960 | ) |
| Net                cash used in investing activities           |   |                                            | (334,077  | )        |   | (437,873 | ) |
|                                                           |   |                                            |      |     |   |   |   |
| Cash                flows from financing activities            |   |                                            |      |     |   |   |   |
| Net                cash provided by financing activities       |   |                                            | -         |     |   | - |   |
|                                                           |   |                                            |      |     |   |   |   |
| Effect                of exchange rate on cash                 |   |                                            | 20,445    |     |   | 23,961 |   |
|                                                           |   |                                            |      |     |   |   |   |
| Net                increase in cash and cash equivalents       |   |                                            | 293,707   |     |   | 184,661 |   |
|                                                           |   |                                            |      |     |   |   |   |
| Cash                and cash equivalents, beginning of period  |   |                                            | 2,944,243 |     |   | 2,944,179 |   |
| Cash                and cash equivalents, end of period        |   | $                                               | 3,237,950 |     | $      | 3,128,840 |   |

----

**Item      2. **
**MANAGEMENT'S      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION**

*FORWARD-LOOKING      INFORMATION - Management's Discussion and Analysis of Financial Condition and      Results of Operations ("MD&A") includes forward-looking statements. All      statements, other than statements of historical facts, included in this MD&A      regarding the Company's financial position, business strategy and plans and      objectives of management of the Company for future operations are      forward-looking statements. These forward-looking statements rely on a number      of      assumptions concerning future events and are subject to a number of      uncertainties and other factors, many of which are outside of the Company's      control that could cause actual results to materially differ from such      statements. While the Company believes that the assumptions concerning future      events are reasonable, it cautions that there are inherent difficulties in      predicting certain important factors, especially the timing and magnitude of      technological advances; the prospects for future acquisitions; the possibility      that a current customer could be acquired or otherwise be affected by a future      event that would diminish their waste management requirements; the competition      in the waste management industry and the impact of such competition on pricing,      revenues and margins; uncertainties surrounding budget reductions or changes      in      funding priorities of existing government programs and the cost of attracting      and retaining highly skilled personnel.*

| · | 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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

**RESULTS      OF OPERATIONS **

**Three      Months Ended March 31, 2007 compared to the Three Months Ended March 31, 2006      **

**Revenues      **

|                                                 |   | For                  three months Ended March 31, |      |
|------------------------------------------------------|--------|---------------------------------------------------|-----------|
|                                                 |   | 2007                                              |      | 2006 |   |
|                                                 |   |                                              |      |   |   |
| Service                  fees                        |   |                                              | 837,063   |   |   | 1,041,157 |   |
| Sales                  of cupric sulfate             |   |                                              | 388,333   |   |   | 292,459 |   |
| Sales                  of other recycled commodities |   |                                              | 457,576   |   |   | 217,821 |   |
| Total                                                |   |                                              | 1,682,972 |   |   | 1,551,437 |   |

----

**Costs      of revenue**

|                                                |   | For                  three months Ended March 31, |    |
|-----------------------------------------------------|--------|---------------------------------------------------|---------|
|                                                |   | 2007                                              |    | 2006 |   |
|                                                |   |                                              |    |   |   |
| Cost                  of service fees               |   |                                              | 228,619 |   |   | 178,765 |   |
| Cost                  of cupric sulfate             |   |                                              | 97,295  |   |   | 112,763 |   |
| Cost                  of other recycled commodities |   |                                              | 183,854 |   |   | 149,360 |   |
| Total                                               |   |                                              | 509,768 |   |   | 440,888 |   |

**Operating      Expenses**

**Foreign      Currency Translation**

**Net      Income**

**Liquidity      and Capital Resources**

----

**Critical      Accounting Policies**

**Revenue      Recognition**

**Property,      Plant and Equipment**

**Bad      Debts**

**OFF-BALANCE      SHEET ARRANGEMENTS **

----

**Item      6. **
**Exhibits**

| (a)    | 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: January 30, 2008 | By:                                         | /s/              Dong Jinqing |
|                   | Dong              Jinqing                             |
|                   | Chief                Executive Officer                |

----