SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB

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

                 For the Quarterly Period ended October 31, 2005

                         Commission File Number: 0-31539


                          COVENTURE INTERNATIONAL INC.
        (Exact name of small business issuer as specified in its charter)


            Delaware                                       98-0231607
            --------                                       ----------
   (Jurisdiction of Incorporation)                      (I.R.S. Employer
                                                      Identification No.)

                      Tang Xing Shu Ma Building, Suite 418
                                 Tang Xing Road
                               Xian High Tech Area
                             Xian, Shaanxi Province
                                      China
               (Address of principal executive office) (Zip Code)

Registrant's telephone number, including area code: 86-29-88323325

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for such shorter  period that the  registrant was required to file such reports)
and (2) has been subject to such filing  requirements for the past 90 days.) Yes
[x ] No [ ]

As of December 14, 2005 the Company had 5,051,022  shares of common stock issued
and outstanding.


Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes __ No x


<PAGE>
<TABLE>
<CAPTION>

                                      INDEX

<S>                                                                                                         <C>
PART I           FINANCIAL INFORMATION

                 Item 1       Financial Statements

                              Consolidated Balance Sheets at October 31, 2005 (unaudited)                    F-2

                              Consolidated Statements of Operations for the three month periods ended        F-3
                              October 31, 2005 and 2004 (unaudited)

                              Consolidated Statements of Cash Flows for the three month periods ended        F-4
                              October 31, 2005 and 2004 (unaudited)

                              Notes To Consolidated Financial Statements (unaudited)                      F-5 - F-9

                 Item 2       Management's Discussion and Analysis or Plan of Operation                       10

                 Item 3       Controls and Procedures                                                         14

PART II          OTHER INFORMATION

                 Item 1       Legal Proceedings                                                               14

                 Item 2       Unregistered Sales of Equity Securities and Use of Proceeds                     14

                 Item 3       Defaults upon Senior Securities                                                 14

                 Item 4       Submission of Matters to a Vote of Security Holders                             14

                 Item 5       Other Information                                                               14

                 Item 6       Exhibits                                                                        15


                 SIGNATURES
</TABLE>

                                      (ii)
<PAGE>

PART I FINANCIAL INFORMATION

Item 1. Financial Statements


                          Coventure International Inc.
                           Consolidated Balance Sheet
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                               October 31,
                                                                                                   2005
                                                                                                    $
ASSETS

Current Assets

<S>                                                                                                   <C>
  Cash & cash equivalents                                                                             17,469
  Prepaid expenses and deposits                                                                          403
-------------------------------------------------------------------------------------------------------------

Total Current Assets                                                                                  17,872

Property and Equipment, net                                                                           16,750
Equipment Under Capital Lease                                                                          9,518
-------------------------------------------------------------------------------------------------------------

Total Assets                                                                                          44,140
-------------------------------------------------------------------------------------------------------------


LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities

  Accounts payable                                                                                    16,702
  Accrued liabilities                                                                                 13,191
  Current portion of capital lease                                                                     3,940
  Deferred revenue                                                                                       618
  Due to related parties                                                                             105,314
  Loan payable                                                                                        25,000
-------------------------------------------------------------------------------------------------------------

Total Current Liabilities                                                                            164,765

Capital Lease Obligation                                                                               4,696
-------------------------------------------------------------------------------------------------------------

Total Liabilities                                                                                    169,461
-------------------------------------------------------------------------------------------------------------

Contingencies and Commitment

Stockholders' Deficit

Preferred Stock:
  5,000,000 shares authorized, $0.0001 par value, none issued                                              -

Common Stock:
  30,000,000 shares authorized, $0.0001 par value
  7,022,200 shares issued and outstanding                                                                702

Additional Paid-in Capital                                                                           139,280

Accumulated Other Comprehensive Loss                                                                 (11,299)

Deficit                                                                                             (254,004)
-------------------------------------------------------------------------------------------------------------

Total Stockholders' Deficit                                                                         (125,321)
-------------------------------------------------------------------------------------------------------------

Total Liabilities and Stockholders' Deficit                                                           44,140
-------------------------------------------------------------------------------------------------------------

 (The Accompanying Notes are an Integral Part of the Consolidated Financial Statements)
</TABLE>

                                       F-2

<PAGE>

                          Coventure International Inc.
                      Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                                   Three Month Periods Ended
                                                                            -------------------- -------------------
                                                                                October 31,         October 31,
                                                                                   2005                 2004
                                                                                     $                   $

<S>                                                                                      <C>                 <C>
Revenue                                                                                  11,259              67,023
--------------------------------------------------------------------------- -------------------- -------------------


Expenses

Advertising and promotion                                                                     -              10,748
Amortization                                                                              2,948               2,614
Commissions                                                                                   -               5,266
General and administrative                                                                5,921              30,949
Loss on property and equipment                                                            3,191                   -
Management fees and wages                                                                     -               6,169
Professional fees                                                                         7,193               3,000
Subcontract                                                                               3,142              25,396
--------------------------------------------------------------------------- -------------------- -------------------

Total Expenses                                                                           22,395              84,142
--------------------------------------------------------------------------- -------------------- -------------------

Net Loss                                                                                (11,136)            (17,119)

Other Comprehensive Loss:

                                                                                         (2,848)
Foreign Currency translation adjustment                                                  (2,848)             (8,309)
--------------------------------------------------------------------------- -------------------- -------------------

Comprehensive Loss                                                                      (13,984)            (25,428)
--------------------------------------------------------------------------- -------------------- -------------------

Net Loss Per Share - Basic and Diluted                                                        -                   -
--------------------------------------------------------------------------- -------------------- -------------------

Weighted Average Shares Outstanding                                                   7,022,000           7,022,000
--------------------------------------------------------------------------- -------------------- -------------------


 (The Accompanying Notes are an Integral Part of the Consolidated Financial Statements)
</TABLE>


                                       F-3
<PAGE>
                          Coventure International Inc.
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                                    Three Month Periods Ended
                                                                               -------------------------------------
                                                                                  October 31,       October 31,
                                                                                      2005              2004
                                                                                       $                 $

<S>                                                                                   <C>               <C>
Operating Activities

Net loss                                                                             (11,136)          (17,119)

Adjustment to reconcile net loss to net cash provided by (used in) operating
activities
   Amortization                                                                        2,948             2,614
   Loss on property and equipment                                                      3,191                 -

   Changes in operating assets and liabilities
      Accounts receivable                                                              3,153               801
      Prepaid expenses and deposits                                                    1,163              (149)
      Accounts payable and accrued liabilities                                        (1,731)           16,656
      Due to related parties                                                          15,429            11,686
      Deferred revenue                                                               (14,453)           (2,734)
--------------------------------------------------------------------------------------------------------------------

Net Cash Provided By (Used In) Operating Activities                                   (1,436)           11,755
--------------------------------------------------------------------------------------------------------------------

Investing Activities

   (Purchase of) proceeds from disposal of property and equipment                        803           (17,395)
--------------------------------------------------------------------------------------------------------------------

Net Cash Provided by (Used In) Investing Activities                                      803           (17,395)
--------------------------------------------------------------------------------------------------------------------

Financing Activities

   Advances from related parties                                                           -            15,092
   Principle repayments on capital lease                                                (894)                -
--------------------------------------------------------------------------------------------------------------------

Net Cash Provided By (Used In) Financing Activities                                     (894)           15,092
--------------------------------------------------------------------------------------------------------------------

Effect of Exchange Rate Changes on Cash                                                   43            (6,167)
--------------------------------------------------------------------------------------------------------------------

Net Increase (Decrease) in Cash & cash equivalents                                    (1,484)            3,285

Cash & cash equivalents - Beginning of Period                                         18,953               940
--------------------------------------------------------------------------------------------------------------------

Cash & cash equivalents - End of Period                                               17,469             4,225
--------------------------------------------------------------------------------------------------------------------

 (The Accompanying Notes are an Integral Part of the Consolidated Financial Statements)
</TABLE>



                                       F-4
<PAGE>
                          Coventure International Inc.
                 Notes to the Consolidated Financial Statements
                                October 31, 2005
                                   (Unaudited)


1.   Nature of Operations and Continuance of Business

     Coventure  International Inc. (the "Company") was incorporated in the State
     of Delaware, U.S.A. on March 31, 1999 as Bullet Environmental Systems, Inc.
     and changed its name on May 25, 2000 to  Liquidpure  Corp.  On February 14,
     2002, the Company  changed its name to Coventure  International  Inc. These
     financial   statements   include  the  accounts  of  the  Company  and  its
     wholly-owned  subsidiary  Coventure  Canada Inc.  (the  "Subsidiary").  The
     Subsidiary was incorporated in the Province of Alberta,  Canada on February
     5, 2002.

     The Company is engaged in the business of providing management  consulting,
     accounting  and tax  services.  Subsequent  to the period end,  the Company
     changed its business to that of natural gas distribution. Refer to Note 8.

     The Company generated  sufficient revenues that indicated planned principal
     activities  commenced  and  as a  result,  the  Company  emerged  from  the
     development  stage during the 2004 fiscal year. As of October 31, 2005, the
     Company has a working  capital  deficiency  of  $146,893,  and  accumulated
     losses of $254,004 since  inception.  The  continuation of the Company as a
     going concern is dependent  upon the continued  financial  support from its
     shareholders,  the  ability  of the  Company  to  obtain  necessary  equity
     financing to continue  operations  and to generate  profitable  operations.
     There is no  guarantee  that the  Company  will be able to raise any equity
     financing or generate  profitable  operations.  These financial  statements
     have been prepared on a going concern basis, which implies the Company will
     continue to realize its assets and discharge its  liabilities in the normal
     course  of  business.   These  financial  statements  do  not  include  any
     adjustments  to the  recoverability  and  classification  of recorded asset
     amounts and  classification  of liabilities  that might be necessary should
     the Company be unable to continue as a going  concern.  These factors raise
     substantial  doubt  regarding the Company's  ability to continue as a going
     concern.
2.   Summary of Significant Accounting Policies

     1)   Basis of Presentation

          The accompanying consolidated balance sheet of Coventure International
          Inc.  and  subsidiary  at  October  31,  2005  and  the   consolidated
          statements of operations for the three month periods ended October 31,
          2005 and 2004 and consolidated  statements of cash flows for the three
          month  periods  ended  October 31, 2005 and 2004 have been prepared by
          the  Company's  management in conformity  with  accounting  principles
          generally accepted in the United States of America.  In the opinion of
          management,   all   adjustments   considered   necessary  for  a  fair
          presentation of the results of operations and financial  position have
          been  included  and all such  adjustments  are of a  normal  recurring
          nature.

          Operating  results for the three month periods ended October 31, 2005,
          are not necessarily indicative of the results that can be expected for
          the year ending July 31, 2006.

          These consolidated financial statements and related notes are prepared
          in accordance with  accounting  principles  generally  accepted in the
          United  States  and are  expressed  in US  dollars.  These  statements
          include the  accounts of the Company and its  wholly-owned  subsidiary
          Coventure  Canada  Inc.,  a company  incorporated  in the  Province of
          Alberta,  Canada.  All  significant   intercompany   transactions  and
          balances have been  eliminated.  The Company's fiscal year end is July
          31.

     2)   Use of Estimates


          The preparation of financial  statements in conformity with accounting
          principles generally accepted in the United States requires management
          to make estimates and assumptions  that affect the reported amounts of
          assets  and  liabilities  and  disclosure  of  contingent  assets  and
          liabilities  at the date of the financial  statements and the reported
          amounts of revenues and expenses  during the periods.  Actual  results
          could differ from those estimates. 3) Cash and Cash Equivalents

          The Company considers all highly liquid instruments with a maturity of
          three months or less at the time of issuance to be cash equivalents.


                                      F-6
<PAGE>
                         Coventure International Inc.
                 Notes to the Consolidated Financial Statements
                                October 31, 2005
                                   (Unaudited)


      4)   Property and Equipment


          Property  and  equipment  consists  of  furniture  and  equipment  and
          leasehold   improvements  and  is  recorded  at  cost.  Furniture  and
          equipment  are being  amortized  on a  straight-line  basis over their
          estimated useful lives of four years. During the period, the Company's
          lease was  terminated,  and the  remaining  carrying cost of leasehold
          improvements of $3,191 was charged to operations.

     5)   Long-Lived Assets


          In accordance  with SFAS No. 144,  "Accounting  for the  Impairment or
          Disposal of  Long-Lived  Assets",  the  carrying  value of  intangible
          assets and other long-lived  assets is reviewed on a regular basis for
          the existence of facts or circumstances  that may suggest  impairment.
          The  Company  recognizes  impairment  when  the  sum of  the  expected
          undiscounted future cash flows is less than the carrying amount of the
          asset.  Impairment  losses,  if any, are measured as the excess of the
          carrying amount of the asset over its estimated fair value.

     6)   Foreign Currency Transactions/Balances


          The Company's  functional currency is the Canadian dollar.  Occasional
          transactions  occur in U.S.  dollars,  and management has adopted SFAS
          No.  52,  "Foreign  Currency  Translation".   Assets  and  liabilities
          denominated in foreign  currencies  are translated  into US dollars at
          rates of exchange in effect at the balance  sheet date.  Average rates
          for the year are used to translate  revenues and  expenses.  Resulting
          translation  gains and losses are accumulated in a separate  component
          of stockholders'  equity as accumulated other comprehensive  income or
          loss.

     7)   Income Taxes

          Potential  benefits  of income tax losses  are not  recognized  in the
          accounts  until  realization  is more likely than not. The Company has
          adopted  SFAS  No.  109  "Accounting  for  Income  Taxes"  as  of  its
          inception. Pursuant to SFAS No. 109 the Company is required to compute
          tax asset benefits for net operating losses carried forward. Potential
          benefit of net  operating  losses  have not been  recognized  in these
          financial  statements because the Company cannot be assured it is more
          likely  than not it will  utilize  the net  operating  losses  carried
          forward in future years.

     8) Financial Instruments

          The fair value of financial  instruments which includes cash, accounts
          receivable,  prepaid expenses, loan payable, accounts payable, accrued
          liabilities,   due  to  related  parties  and  deferred  revenue  were
          estimated to approximate  their carrying value due to the immediate or
          relatively  short  maturity  of  these   instruments.   The  Company's
          operations  are  in  Canada  and  virtually  all  of  its  assets  and
          liabilities  are giving rise to  significant  exposure to market risks
          from changes in foreign currency rates. The financial risk is the risk
          to the Company's  operations  that arise from  fluctuations in foreign
          exchange rates and the degree of volatility of these rates. Currently,
          the Company does not use derivative instruments to reduce its exposure
          to foreign currency risk.

     9) Stock-Based Compensation

          The  Company  has  elected  to apply  the  intrinsic  value  method of
          accounting in accordance with Accounting  Principles Board Opinion No.
          25,  "Accounting  for Stock Issued to Employees"  (APB 25).  Under the
          intrinsic  value  method  of  accounting,   compensation   expense  is
          recognized  if the  exercise  price of the  Company's  employee  stock
          options is less than the market price of the  underlying  common stock
          on the  date of  grant.  Stock-based  compensation  for  employees  is
          recognized on the  straight-line  basis over the vesting period of the
          individual  options.   Stock  options  granted  to  non-employees  are
          accounted for under  Statement of Financial  Accounting  Standards No.
          123  "Accounting  for  Stock-Based  Compensation"  (SFAS  123),  which
          establishes  a fair value based method of accounting  for  stock-based
          awards, and recognizes  compensation  expense based on the fair market
          value  of the  stock  award or fair  market  value  of the  goods  and
          services received,  whichever is more reliably  measurable.  Under the
          provisions  of  SFAS  123,   companies   that  elect  to  account  for
          stock-based  awards in  accordance  with the  provisions of APB 25 are
          required to disclose  the pro forma net income  (loss) that would have
          resulted  from the use of the fair value based  method under SFAS 123.
          The Company has not granted any  stock-based  awards since  inception.

    10) Revenue Recognition


                                      F-7
<PAGE>
                          Coventure International Inc.
                 Notes to the Consolidated Financial Statements
                                October 31, 2005
                                   (Unaudited)


          The Company recognizes revenue from the sale of services in accordance
          with Securities and Exchange  Commission Staff Accounting Bulletin No.
          104  ("SAB  104"),  "Revenue  Recognition  in  Financial  Statements."
          Revenue  consists of consulting  services and is recognized  only when
          the  price  is  fixed  or  determinable,  persuasive  evidence  of  an
          arrangement  exists,  the service is performed,  and collectibility is
          reasonably assured.

          The Company  continually  monitors  timely  payments  and assesses any
          collection issues. The allowance for doubtful accounts is based on the
          Company's  detailed  assessment  of  the  collectibility  of  specific
          customer accounts.  Any significant  accounts that are not expected to
          be collected are excluded from revenue.  Deferred  revenue  represents
          customer  deposits,  which are recognized as revenue once the criteria
          for SAB 104 have been met.

     11)  Comprehensive Loss

          SFAS No. 130, "Reporting  Comprehensive Income," establishes standards
          for  the  reporting  and  display  of  comprehensive  income  and  its
          components  in the  financial  statements.  For the three month period
          ended October 31, 2005, the Company had comprehensive  loss of $13,984
          which includes a foreign currency translation loss of $2,848.

     12)  Basic and Diluted Net Income (Loss) per Share

          The Company  computes net income (loss) per share in  accordance  with
          SFAS  No.  128,  "Earnings  per  Share"  (SFAS  128).  Which  requires
          presentation  of both basic and diluted  earnings  per shares (EPS) on
          the face of the income  statement.  Basic EPS is  computed by dividing
          net income (loss) available to common shareholders  (numerator) by the
          weighted  average  number of common shares  outstanding  (denominator)
          during the period.  Diluted EPS gives effect to all dilutive potential
          common shares  outstanding  during the period including stock options,
          using the treasury  stock method,  and  convertible  preferred  stock,
          using the if-converted  method.  In computing diluted EPS, the average
          stock price for the period is used in determining the number of shares
          assumed to be purchased

          from the exercise of stock  options or warrants.  Diluted EPS excludes
          all dilutive potential common shares if their effect is anti-dilutive.

     13)  Recent Accounting Pronouncement

          In May 2005, the Financial  Accounting  Standards  Board (FASB) issued
          SFAS  No.  154,   "Accounting   Changes  and  Error  Corrections  -  A
          Replacement  of APB  Opinion  No. 20 and SFAS No. 3". SFAS 154 changes
          the  requirements  for the accounting for and reporting of a change in
          accounting   principle  and  applies  to  all  voluntary   changes  in
          accounting  principle.  It also  applies  to  changes  required  by an
          accounting   pronouncement   in  the   unusual   instance   that   the
          pronouncement does not include specific  transition  provisions.  SFAS
          154 requires  retrospective  application to prior  periods'  financial
          statements   of  changes  in  accounting   principle,   unless  it  is
          impracticable to determine either the  period-specific  effects or the
          cumulative  effect of the change.  The  provisions of SFAS No. 154 are
          effective  for  accounting  changes and  correction  of errors made in
          fiscal years  beginning  after December 15, 2005. The adoption of this
          standard is not  expected to have a material  effect on the  Company's
          results of operations or financial position.

          In December 2004, FASB issued SFAS No. 153,  "Exchanges of Nonmonetary
          Assets - An  Amendment  of APB Opinion No.  29".  The  guidance in APB
          Opinion No. 29, "Accounting for Nonmonetary Transactions", is based on
          the principle that exchanges of nonmonetary  assets should be measured
          based on the fair value of the assets exchanged.  The guidance in that
          Opinion,  however, included certain exceptions to that principle. SFAS
          No.  153  amends  Opinion  No.  29  to  eliminate  the  exception  for
          nonmonetary  exchanges  of similar  productive  assets and replaces it
          with a general  exception for exchanges of nonmonetary  assets that do
          not have commercial  substance.  A nonmonetary exchange has commercial
          substance  if the future  cash flows of the  entity  are  expected  to
          change  significantly  as a result of the exchange.  The provisions of
          SFAS No. 153 are effective for nonmonetary  asset exchanges  occurring
          in fiscal periods  beginning after June 15, 2005. Early application is
          permitted and  companies  must apply the standard  prospectively.  The
          adoption of this standard is not expected to have a material effect on
          the Company's results of operations or financial position.


                                       F-8
<PAGE>

                          Coventure International Inc.
                 Notes to the Consolidated Financial Statements
                                October 31, 2005
                                   (Unaudited)


          In December 2004, the SFAS No. 123R, "Share Based Payment".  SFAS 123R
          is  a  revision   of  SFAS  No.  123   "Accounting   for   Stock-Based
          Compensation",  and  supersedes  APB Opinion No. 25,  "Accounting  for
          Stock Issued to Employees"  and its related  implementation  guidance.
          SFAS 123R establishes standards for the accounting for transactions in
          which  an  entity  exchanges  its  equity  instruments  for  goods  or
          services.  It also  addresses  transactions  in which an entity incurs
          liabilities  in exchange  for goods or services  that are based on the
          fair value of the entity's  equity  instruments or that may be settled
          by the  issuance  of  those  equity  instruments.  SFAS  123R  focuses
          primarily on accounting  for  transactions  in which an entity obtains
          employee  services  in  share-based  payment  transactions.  SFAS 123R
          requires a public  entity to  measure  the cost of  employee  services
          received in exchange for an award of equity  instruments  based on the
          grant-date  fair value of the award (with  limited  exceptions).  That
          cost will be  recognized  over the period  during which an employee is
          required to provide  service in exchange for the award - the requisite
          service period (usually the vesting  period).  SFAS 123R requires that
          the compensation cost relating to share-based payment  transactions be
          recognized in financial  statements.  That cost will be measured based
          on the fair  value of the  equity  or  liability  instruments  issued.
          Public  entities that file as small business  issuers will be required
          to apply  SFAS 123R in the first  interim or annual  reporting  period
          that begins after  December 15, 2005. The adoption of this standard is
          not  expected to have a material  effect on the  Company's  results of
          operations or financial position.

          In March 2005, the SEC staff issued Staff Accounting  Bulletin No. 107
          ("SAB 107") to give guidance on the  implementation  of SFAS 123R. The
          Company will consider SAB 107 during  implementation of SFAS 123R.

     14)  Interim Financial Statements

          These interim unaudited  consolidated  financial  statements have been
          prepared on the same basis as the annual  financial  statements and in
          the opinion of management, reflect all adjustments, which include only
          normal  recurring   adjustments,   necessary  to  present  fairly  the
          Company's financial position, results of operations and cash flows for
          the periods shown.  The results of operations for such periods are not
          necessarily  indicative of the results expected for a full year or for
          any future period.


3.   Property and Equipment
<TABLE>
<CAPTION>

                                                                                                        October 31,
                                                                                   Accumulated            2005
                                                                      Cost         Amortization    Net Carrying Value
                                                                        $                $                   $
                                                                                                        (unaudited)
<S>                                                                  <C>            <C>                     <C>
     Furniture and equipment                                         31,160         (14,410)                16,750
     Leasehold improvements                                           3,130          (3,130)                     -
     ---------------------------------------------------------------------------------------------------------------

                                                                     34,290         (17,540)                16,750
     ---------------------------------------------------------------------------------------------------------------
</TABLE>

                                      F-9
<PAGE>
                          Coventure International Inc.
                 Notes to the Consolidated Financial Statements
                                October 31, 2005
                                   (Unaudited)

4.   Capital lease

     During  the  year  ended  July  31,  2005,  the  Company   entered  into  a
     non-cancelable  leasing  arrangement  involving certain assets owned by the
     Company. The Company sold equipment with a fair value of $12,515 and leased
     it back over a period of thirty-six months at an effective interest rate of
     2.83% per annum. The leasor assumed the Company's  obligations to the trade
     creditors  related to the original  acquisition of the assets.  The Company
     maintains  total use of the  equipment  and  recorded a deferred  gain.  At
     October 31, 2005 the balance of the  deferred  gain is $618.  The  deferred
     gain will be amortized over the lease term. Amortization of equipment under
     capital  leases was $1,088 for the three  month  period  ended  October 31,
     2005.

     Property under capital lease is as follows:

                                                                    $

     Furniture and equipment (Leased equipment)                  13,179
     Less: Accumulated Amortization                              (3,661)
     ---------------------------------------------------------------------------

                                                                  9,518
     ---------------------------------------------------------------------------

     The following represents future minimum lease payments under capital leases
     and the present value of the minimum lease payments as of October 31, 2005.

                                                                   $

     2006                                                        3,388
     2007                                                        4,517
     2008                                                        1,543
      --------------------------------------------------------------------------

     Total minimum lease payments                                9,448
     Less: Amounts representing interest                          (812)
      --------------------------------------------------------------------------
     Present value of net minimum lease payments                 8,636

     Current portion of obligations under capital leases         3,940
      --------------------------------------------------------------------------
     Long-term obligations under capital leases                  4,696
     ---------------------------------------------------------------------------



5.   Related Party Transactions/Balances

     1)   The President of the Company and a company controlled by the President
          is owed  $105,314 for cash advances and expenses paid on behalf of the
          Company as of October 31, 2005.  This amount  bears  interest at 11.5%
          per annum, is unsecured and due on demand.

     2)   The Company paid  management fees of $0 and $5,000 to the President of
          the Company  during the three month periods ended October 31, 2005 and
          2004, respectively.  In addition,  management fees and accounting fees
          of  $21,596  and $0 were paid to the  spouse of the  President  of the
          Company  during the three  month  periods  ended  October 31, 2005 and
          2004, respectively.



6.   Loan Payable

     An unrelated party advanced the Company $25,000 on a non-interest  bearing,
     unsecured basis. This amount is due on demand with no terms of repayment.


7.   Commitments

     On September 1, 2003 the Company entered into an operating lease for office
     premises for a term of 3 years. During the three month period ended October
     31, 2005 the lease was terminated.


                                      F-10

<PAGE>

                          Coventure International Inc.
                 Notes to the Consolidated Financial Statements
                                October 31, 2005
                                   (Unaudited)

8.   Subsequent Event

     On December 6, 2005,  the Company  entered into and closed a share purchase
     agreement with Xian Xilan Natural Gas Co., Ltd., a corporation formed under
     the laws of the People's  Republic of China ("Xilan" ), and each of Xilan's
     shareholders . Pursuant to the Agreement,  the Company  acquired all of the
     issued and outstanding  capital stock of Xilan from the Xilan  shareholders
     in  exchange  for  4,000,000   shares  of  the   Company's   common  stock.
     Concurrently with the closing of the Purchase  Agreement and as a condition
     thereof,  the Company  entered  into an  agreement  with John  Hromyk,  the
     Company's President and Chief Financial Officer, pursuant to which Mr.
     Hromyk  returned  5,971,178  shares of the  Company's  common  stock to the
     Company for  cancellation.  Upon completion of the foregoing  transactions,
     the Company had an aggregate of 5,051,022 shares of common stock issued and
     outstanding. The shares of common stock issued to the shareholders of Xilan
     were issued in reliance upon the exemption  from  registration  provided by
     Regulation S under the Securities Act of 1933, as amended.

     Xilan was incorporated  under the laws of the People's Republic of China on
     January 8, 2000 and is headquartered  in Xian,  China in Shaanxi  Province.
     Xilan primarily engages in the transmission and distribution of natural gas
     to commercial, industrial and residential customers.

     In  connection  with the  acquisition  of Xilan on December  6, 2005,  John
     Hromyk  resigned  as the sole  officer  of the  Company  and the  executive
     officers of Xilan were appointed as executive officers of the Company.

     The  exchange  of shares  with  Xilan  will be  accounted  for as a reverse
     acquisition  under the purchase method of accounting since the shareholders
     of the Xilan obtained  control of the Company.  Accordingly,  the merger of
     the two companies has been recorded as a  recapitalization  of Xilan,  with
     Xilan being treated as the continuing entity.

     Unaudited  revenue and net income of Xilan for the nine month periods ended
     September  30,  2005 and 2004 are as  follows:

                                                 Nine  month  periods  ended
                                                  September 30, (Unaudited)
                                                  --------------------------

                                                       2005         2004
                                                  ------------ -------------
      Revenue                                     $ 2,714,042     $ 701,615

      Net income (loss) for the period            $   736,802     $(128,289)



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

The following  discussion and analysis  explains the major factors affecting our
financial  condition.  The following  discussion of our financial  condition and
plan of operations should be read along with the financial  statements and notes
to the financial statements included elsewhere in this quarterly report.

In the fall of 2003 we began providing  accounting,  tax and business consulting
services to small and medium sized businesses in-and-around the Calgary, Alberta
region. The consulting services are designed to improve a client's profitability
through strategic analysis,  planning,  consulting and ongoing  evaluation.  Our
core services attempt to identify inefficiencies and trouble spots in a business
before they cause significant problems.

Our original plan of business was to leverage the experience  from this regional
office to template  offices  throughout  Canada  through a network of regionally
licensed  operators.  We  have to date  been  unable  to  secure  the  necessary
financing  to  establish a network of  regionally  licensed  operators  and have
determined  that  it  would  be in our  best  interests  to seek  to  locate  an
adequately  financed  venture  partner  which is seeking  the  benefits of being
publicly traded with which to merge. Our management  reached this  determination
due  to  the  fact  that,   while  our  core  business  has  achieved   marginal
profitability,  the costs  incurred  in  registering  our common  stock with the
Securities and Exchange  Commission  and the ongoing costs of  maintaining  such
registration have resulted in unsustainable financial losses.


                                       11
<PAGE>

As of October 31, 2005 we had  approximately  five  clients  serviced out of our
Cochrane  office.  These clients are small and medium sized businesses that have
selected one of our standard programs that incorporate tax and business advisory
services for a one-year  initial period.  Client response has been strong and we
have implemented  numerous  refinements to our programs from our experience with
our clients.

Results of Operations

Three month periods ended October 31, 2005 and 2004

Our revenue for the three month period ended  October 31, 2005 has  decreased to
$11,259  from $67,023 for the three month  period  ended  October 31, 2004.  The
decreased revenue resulted in decreased  expenses of $22,395 for the three month
period ended  October 31, 2005 as compared to $84,142 for the three month period
ended October 31, 2004.  The Company had net loss of $11,136 for the three month
period ended  October 31, 2005 compared to a net loss of $17,119 in the previous
year period.  The  commissions  expense for the three month period ended October
31,  2005 has  decreased  to $0 from  $5,266 for the three  month  period  ended
October 31, 2004 as a result of the reduced  number of clients  currently  being
serviced.

During the three month period ended  October 31, 2005 net cash used in operating
activities  was $1,436 and we incurred  $803 on office  equipment  and leasehold
improvements.

Liquidity and Capital Resources

At October 31, 2005 we had total current assets of $17,872 and a working capital
deficit of $146,893.  Our business has operated at a loss since inception and we
have  been  unable  to  obtain  adequate   financing  to  continue  our  current
operations. We have no current source of funds to fund our operations.

In order to resolve our lack of  liquidity,  our  management  has been  actively
seeking an adequately  financed venture partner which is seeking the benefits of
being publicly traded with which to merge.

Acquisition of Xi'an Xilan Natural Gas Co., Ltd.

On  December  6, 2005,  the  Company  entered  into and closed a share  purchase
agreement with Xian Xilan Natural Gas Co., Ltd., a corporation  formed under the
laws of the  People's  Republic  of  China  ("Xilan"  ),  and  each  of  Xilan's
shareholders . Pursuant to the Agreement, the Company acquired all of the issued
and outstanding  capital stock of Xilan from the Xilan  shareholders in exchange
for  4,000,000  shares of the  Company's  common  stock.  Concurrently  with the
closing of the  Purchase  Agreement  and as a  condition  thereof,  the  Company
entered into an agreement  with John Hromyk,  the Company's  President and Chief
Financial Officer, pursuant to which Mr. Hromyk returned 5,971,178 shares of the
Company's common stock to the Company for  cancellation.  Upon completion of the
foregoing  transactions,  the Company had an aggregate  of  5,051,022  shares of
common  stock issued and  outstanding.  The shares of common stock issued to the
shareholders   of  Xilan  were  issued  in  reliance  upon  the  exemption  from
registration  provided by  Regulation  S under the  Securities  Act of 1933,  as
amended.

                                       12
<PAGE>

Xilan was  incorporated  under  the laws of the  People's  Republic  of China on
January 8, 2000 and is headquartered in Xian, China in Shaanxi  Province.  Xilan
primarily  engages  in the  transmission  and  distribution  of  natural  gas to
commercial, industrial and residential customers.

In connection  with the  acquisition  of Xilan on December 6, 2005,  John Hromyk
resigned as the sole officer of the Company and the executive  officers of Xilan
were appointed as executive officers of the Company.


Critical Accounting Policies

The  preparation  of financial  statements  in  conformity  with U.S.  generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that  affect the  reported  amounts of assets and  liabilities  and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.

The methods,  estimates,  and  judgments  we use in applying  our most  critical
accounting  policies have a significant  impact on the results that we report in
our financial statements. The SEC considers an entity's most critical accounting
policies to be those policies that are both most important to the portrayal of a
company's financial condition and results of operations,  and those that require
management's most difficult,  subjective or complex judgments, often as a result
of the need to make estimates about matters that are inherently uncertain at the
time of estimation. We believe the following critical accounting policies, among
others,  require significant  judgments and estimates used in the preparation of
our financial statements:

     (i)  Property and Equipment
          Property  and  equipment  consists  of  furniture  and  equipment  and
          leasehold   improvements  and  is  recorded  at  cost.  Furniture  and
          equipment  and  leasehold   improvements  are  being  amortized  on  a
          straight-line  basis over their  estimated  useful lives of four years
          and three years, respectively.

     (ii) Long-Lived Assets
          In accordance  with  Financial  Accounting  Standards  Board  ("FASB")
          Statement  of  Financial   Accounting   Standards  ("SFAS")  No.  144,
          Accounting for the Impairment or Disposal of Long-Lived  Assets",  the
          carrying  value of intangible  assets and other  long-lived  assets is
          reviewed  on  a  regular   basis  for  the   existence   of  facts  or
          circumstances  that may suggest  impairment.  The  Company  recognizes
          impairment when the sum of the expected undiscounted future cash flows
          is less than the carrying amount of the asset.  Impairment  losses, if
          any, are  measured as the excess of the  carrying  amount of the asset
          over its estimated fair value.

                                       13
<PAGE>

    (iii) Revenue Recognition
          The Company recognizes revenue from the sale of services in accordance
          with Securities and Exchange  Commission Staff Accounting Bulletin No.
          104  ("SAB  104"),  "Revenue  Recognition  in  Financial  Statements."
          Revenue  consists of consulting  services and is recognized  only when
          the  price  is  fixed  or  determinable,  persuasive  evidence  of  an
          arrangement  exists,  the service is performed,  and collectibility is
          reasonably assured.

          The Company  continually  monitors  timely  payments  and assesses any
          collection issues. The allowance for doubtful accounts is based on the
          Company's  detailed  assessment  of  the  collectibility  of  specific
          customer accounts.  Any significant  accounts that are not expected to
          be collected are excluded from revenue.  Deferred  revenue  represents
          customer  deposits,  which are recognized as revenue once the criteria
          for SAB 104 have been met.

   (iv)  Foreign Currency Transactions/Balances
          The Company's  functional currency is the Canadian dollar.  Occasional
          transactions  occur in U.S.  dollars,  and management has adopted SFAS
          No.  52,  "Foreign  Currency  Translation".   Assets  and  liabilities
          denominated in foreign  currencies  are translated  into US dollars at
          rates of exchange in effect at the balance  sheet date.  Average rates
          for the year are used to translate  revenues and  expenses.  Resulting
          translation  gains and losses are accumulated in a separate  component
          of stockholders'  equity as accumulated other comprehensive  income or
          loss.

New Accounting Pronouncements

          In May 2005, the Financial  Accounting  Standards  Board (FASB) issued
          SFAS  No.  154,   "Accounting   Changes  and  Error  Corrections  -  A
          Replacement  of APB  Opinion  No. 20 and SFAS No. 3". SFAS 154 changes
          the  requirements  for the accounting for and reporting of a change in
          accounting   principle  and  applies  to  all  voluntary   changes  in
          accounting  principle.  It also  applies  to  changes  required  by an
          accounting   pronouncement   in  the   unusual   instance   that   the
          pronouncement does not include specific  transition  provisions.  SFAS
          154 requires  retrospective  application to prior  periods'  financial
          statements   of  changes  in  accounting   principle,   unless  it  is
          impracticable to determine either the  period-specific  effects or the
          cumulative  effect of the change.  The  provisions of SFAS No. 154 are
          effective  for  accounting  changes and  correction  of errors made in
          fiscal years  beginning  after December 15, 2005. The adoption of this
          standard is not  expected to have a material  effect on the  Company's
          results of operations or financial position.

          In December 2004, FASB issued SFAS No. 153,  "Exchanges of Nonmonetary
          Assets - An  Amendment  of APB Opinion No.  29".  The  guidance in APB
          Opinion No. 29, "Accounting for Nonmonetary Transactions", is based on
          the principle that exchanges of nonmonetary  assets should be measured
          based on the fair value of the assets exchanged.  The guidance in that
          Opinion,  however, included certain exceptions to that principle. SFAS
          No.  153  amends  Opinion  No.  29  to  eliminate  the  exception  for
          nonmonetary  exchanges  of similar  productive  assets and replaces it
          with a general  exception for exchanges of nonmonetary  assets that do


                                       14
<PAGE>

          not have commercial  substance.  A nonmonetary exchange has commercial
          substance  if the future  cash flows of the  entity  are  expected  to
          change  significantly  as a result of the exchange.  The provisions of
          SFAS No. 153 are effective for nonmonetary  asset exchanges  occurring
          in fiscal periods  beginning after June 15, 2005. Early application is
          permitted and  companies  must apply the standard  prospectively.  The
          adoption of this standard is not expected to have a material effect on
          the Company's results of operations or financial position.

          In December 2004, the SFAS No. 123R, "Share Based Payment".  SFAS 123R
          is  a  revision   of  SFAS  No.  123   "Accounting   for   Stock-Based
          Compensation",  and  supersedes  APB Opinion No. 25,  "Accounting  for
          Stock Issued to Employees"  and its related  implementation  guidance.
          SFAS 123R establishes standards for the accounting for transactions in
          which  an  entity  exchanges  its  equity  instruments  for  goods  or
          services.  It also  addresses  transactions  in which an entity incurs
          liabilities  in exchange  for goods or services  that are based on the
          fair value of the entity's  equity  instruments or that may be settled
          by the  issuance  of  those  equity  instruments.  SFAS  123R  focuses
          primarily on accounting  for  transactions  in which an entity obtains
          employee  services  in  share-based  payment  transactions.  SFAS 123R
          requires a public  entity to  measure  the cost of  employee  services
          received in exchange for an award of equity  instruments  based on the
          grant-date  fair value of the award (with  limited  exceptions).  That
          cost will be  recognized  over the period  during which an employee is
          required to provide  service in exchange for the award - the requisite
          service period (usually the vesting  period).  SFAS 123R requires that
          the compensation cost relating to share-based payment  transactions be
          recognized in financial  statements.  That cost will be measured based
          on the fair  value of the  equity  or  liability  instruments  issued.
          Public  entities that file as small business  issuers will be required
          to apply  SFAS 123R in the first  interim or annual  reporting  period
          that begins after  December 15, 2005. The adoption of this standard is
          not  expected to have a material  effect on the  Company's  results of
          operations or financial position.

          In March 2005, the SEC staff issued Staff Accounting  Bulletin No. 107
          ("SAB 107") to give guidance on the  implementation  of SFAS 123R. The
          Company will consider SAB 107 during implementation of SFAS 123R.


                                      F-15
<PAGE>

Forward Looking Statements

This Plan of Operations  includes a number of  forward-looking  statements  that
reflect  Management's  current views with respect to future events and financial
performance. Those statements include statements regarding the intent, belief or
current  expectations  of us and members of our  management  team as well as the
assumptions  on which such  statements  are  based.  Prospective  investors  are
cautioned that any such forward-looking  statements are not guarantees of future
performance  and involve  risk and  uncertainties,  and that actual  results may
differ materially from those contemplated by such forward-looking statements.

Readers are urged to carefully review and consider the various  disclosures made
by us in this  report and in our other  reports  filed with the  Securities  and
Exchange Commission. Important factors currently known to management could cause
actual results to differ materially from those in forward-looking statements. We
undertake  no  obligation  to  update or revise  forward-looking  statements  to
reflect changed  assumptions,  the occurrence of unanticipated events or changes
in the future  operating  results over time. We believe that its assumptions are
based  upon  reasonable  data  derived  from and known  about our  business  and
operations  and the business and  operations of the Company.  No assurances  are
made that actual  results of operations or the results of our future  activities
will not differ materially from its assumptions.

Item 3.  Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures pursuant to Rule 13a-15 of the Securities
Exchange Act of 1934 (the  "Exchange  Act") under the  supervision  and with the
participation of our chief executive  officer and chief financial  officer.  Our
disclosure controls and procedures are designed to provide reasonable  assurance
of  achieving  their  objectives.  Any  system  of  controls  can  provide  only
reasonable and not absolute  assurance that the objectives of the control system
are met. In  addition,  the design of any control  system is based upon  certain
assumptions  about the likelihood of future  events.  Because of these and other
inherent  limitations  of control  systems,  there can be no assurance  that any
design will succeed in achieving  its stated  goals under all  potential  future
conditions.  Based upon the  evaluation of the  effectiveness  of the design and
operations  of our  disclosure  controls  and  procedures,  the chief  executive
officer and chief financial officer  concluded that our disclosure  controls and
procedures  were  effective  as of October 31, 2005 in timely  alerting  them to
material  information  required to be included in our Exchange Act filings,  and
that such information is recorded, processed, summarized and reported within the
time period required.

There were no significant  changes in our internal  controls or in other factors
that could  significantly  affect these controls subsequent to the date of their
evaluation,   including  any  corrective  actions  with  regard  to  significant
deficiencies and material weaknesses.


                                       16
<PAGE>

PART II: OTHER INFORMATION

Item 1.   Legal Proceedings

Not applicable.

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

Not Applicable.

Item 3.   Defaults Upon Senior Securities

Not applicable.

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

Not applicable.

Item 5.   Other Information

Not applicable


                                       17
<PAGE>



Item 6. Exhibits


31.1    Certification  by Chief Executive  Officer pursuant to Rule 13a-14(a) or
        15d-14(a),  as adopted pursuant to Section 302 of the Sarbanes-Oxley Act
        of 2002
31.2    Certification  by Chief Financial  Officer pursuant to Rule 13a-14(a) or
        15d-14(a),  as adopted pursuant to Section 302 of the Sarbanes-Oxley Act
        of 2002
32.1    Certification by Chief Executive  Officer pursuant to 18 U.S.C.  Section
        1350, as adopted  pursuant to Section 906 of the  Sarbanes-Oxley  Act of
        2002
32.2    Certification by Chief Financial  Officer pursuant to 18 U.S.C.  Section
        1350, as adopted  pursuant to Section 906 of the  Sarbanes-Oxley  Act of
        2002


                                       18

<PAGE>





                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

December 14, 2005

                                         COVENTURE INTERNATIONAL INC.


                                         By:/s/ MINQING LU
                                         -----------------------------
                                         Minqing Lu,
                                         Chief Executive Officer
                                         (Principal Executive Officer)




                                         By: /s/ XIAOGANG ZHU
                                         ---------------------------
                                         Xiaogang Zhu,
                                         Chief Financial Officer
                                         (Principal Financial Officer
                                         and Principal Accounting Officer )


                                       19