U.
        S.
        Securities and Exchange Commission
 Washington,
        D. C. 20549
 
 FORM
        10-QSB
 
 [X]
              QUARTERLY
                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                  OF
                  1934
 
 For
        the
        quarterly period ended March 31, 2007
 
 [ 
                   ]
              TRANSITION
                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                  OF
                  1934
 
 For
        the
        transition period from _____ to _____
 
 Commission
        File No. 1-08397
 
 CHANG-ON
        INTERNATIONAL, INC.
 (Name
        of
        Small Business Issuer in its Charter)
 
 Utah
              87-0302579(State
                  or Other Jurisdiction of incorporation or organization)
              (I.R.S.
                  Employer I.D. No.)
 
 514
        No. 18 Building, High New Technology Development, Harbin, Heilongjiang, P.R.
        China
 (Address
        of principal executive offices)
 
 Issuer's
        Telephone Number, including Area Code: 86-451-82695010
 
 Indicate
        by check mark whether the Registrant (1) has filed all reports required to
        be
        filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during
        the
        preceding 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
 
 Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act)
        Yes No X
 
 APPLICABLE
        ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each
        of
        the Registrant's classes of voting stock, as of the latest practicable
        date:
 May
        21,
        2007
 Common
        Voting Stock: 67,307,366
 
 Transitional
        Small Business Disclosure Format (check one):     Yes  No X
  
  **PART
        1**  **FINANCIAL STATEMENTS**
 
 **ITEM
        1. FINANCIAL STATEMENTS**
 
 The
        consolidated financial statements of Chang-On International, Inc. and
        subsidiaries (collectively, the "Company"), included herein were prepared,
        without audit, pursuant to rules and regulations of the Securities and Exchange
        Commission. Because certain information and notes normally included in financial
        statements prepared in accordance with accounting principles generally accepted
        in the United States of America were condensed or omitted pursuant to such
        rules
        and regulations, these financial statements should be read in conjunction
        with
        the financial statements and notes thereto included in the audited financial
        statements of the Company as included in the Company's Form 10-KSB for the
        year
        ended December 31, 2006.
 
       
 
 
 
 
  2
 
 **CHANG-ON
        INTERNATIONAL, INC. AND SUBSIDIARIES**
 **F/K/A
        GOLD STANDARD, INC.**
 **(A
        Development Stage Company)**
 **BALANCE
        SHEETS**
 **(UNAUDITED)**
 
 March
                  31,2007**ASSETS**Current
                  AssetsCash
                  (Note 4)
              
              $
              7,149Account
                  receivable
              
              
              -Prepaid
                  and other receivables
              
              
              53,257Inventories
              
              
              29,776Total
                  Current Assets
              
              
              90,182Property,
                  plant and equipment, net (Note 5)
              
              
              694,904Total
                  Assets
              
              $
              785,086**LIABILITIES
                  AND STOCKHOLDERS' EQUITY**Current
                  LiabilitiesTrade
                  accounts payable
              
              $
              72,069Accrued
                  expenses
              
              
              9,252Government
                  subsidy (Note 6)
              
              
              49,606Due
                  to shareholders (Note 7)
              
              
              425,778Total
                  Current Liabilities
              
              
              556,705Minority
                  interest
              
              
              83,634Stockholders'
                  EquityCommon
                  stock, par value $0.001, authorized 100,000,000 shares, issue and
                  outstanding 61,307,366 shares (Note 8)
              
              
              61,307Additional
                  paid in capital (Note 8)
              
              
              314,602Deficit
              
              
              (245,119
              )Accumulated
                  comprehensive income
              
              
              13,957Stockholders'
                  equity
              
              
              144,747Total
                  Liabilities and Owners' Equity
              
              $
              785,086
    **See
        Notes to Financial Statements.**
 
 
  3
 
 **CHANG-ON
        INTERNATIONAL, INC. AND SUBSIDIARIES**
 **F/K/A
        GOLD STANDARD, INC.**
 **(A
        Development Stage Company)**
 **STATEMENTS
        OF OPERATIONS**
 **(UNAUDITED)**
 
 For
                  the Three
                Months
                  Ended March 31,
              
              For
                  the Period November 26, 2004 (inception) to
                March
                  31,2007
              
              2006
              
              2007Net
                  sales
              
              $
              -
              
              $
              -
              
              $
              43,023Cost
                  of sales
              
              
              -
              
              
              -
              
              
              (30,414
              )Gross
                  profit
              
              
              -
              
              
              -
              
              
              12,609ExpensesSalaries
              
              
              3,715
              
              
              -
              
              
              35,857Transportation
              
              
              563
              
              
              -
              
              
              3,339Office
                  equipment
              
              
              164
              
              
              30
              
              
              4,384Water,
                  electricity and gas
              
              
              14,586
              
              
              -
              
              
              24,133Other
                  expenses
              
              
              6,644
              
              
              7
              
              
              22,019Advertisement
              
              
              -
              
              
              -
              
              
              490Rent
                  expense
              
              
              -
              
              
              481
              
              
              3,811Depreciation
              
              
              16,112
              
              
              -
              
              
              56,178R
                  & D expense
              
              
              -
              
              
              -
              
              
              22,578Intangibles
                  writedown
              
              
              -
              
              
              -
              
              
              241,639Total
                  Expenses
              
              
              41,784
              
              
              518
              
              
              414,428Loss
                  before provision for income tax, comprehensive income and minority
                  interest
              
              
              (41,784
              )
              
              (518
              )
              
              (401,819
              )Income
                  tax provision
              
              
              -
              
              
              -
              
              
              -Loss
                  before minority interest comprehensive income
              
              
              (41,784
              )
              
              (518
              )
              
              (401,819
              )Minority
                  interest
              
              
              16,287
              
              
              202
              
              
              156,708Loss
                  before comprehensive income
              
              
              (25,497
              )
              
              (316
              )
              
              (245,111
              )Foreign
                  exchange gain (loss)
              
              
              2,606
              
              
              843
              
              
              13,957Net
                  gain (loss)
              
              $
              (22,891
              )
              $
              527
              
              $
              (231,154
              )Basic
                  and Fully Diluted Earnings per Share
              
              $
              -
              
              $
              -Weighted
                  average shares outstanding
              
              
              60,000,000
              
              
              60,000,000
 
 
 
 
 **See
        Notes to Financial Statements.**
  4
 
 **GOLD
        STANDARD, INC. AND SUBSIDIARIES**
 **F/K/A
        GOLD STANDARD, INC.**
 **(A
        Development Stage Company)**
 **STATEMENTS
        OF CASH FLOWS**
 **(UNAUDITED)**
 
 For
                  the Three
                Months
                  Ended
                March
                  31,
              
              For
                  the Period November 26, 2004 (inception) to
                March
                  31,2007
              
              2006
              
              2007Operating
                  Activities:Net
                  gain (loss)
              
              $
              (22,891
              )
              $
              527
              
              $
              (231,154
              )Adjustments
                  to reconcile net loss to net cash used by operationsDepreciation
                  (cost and expense)
              
              
              16,112
              
              
              -
              
              
              59,368Impairment
                  loss on intangible assets
              
              
              -
              
              
              -
              
              
              241,639Minority
                  interest (loss)
              
              
              (16,287
              )
              
              (202
              )
              
              (156,708
              )Changes
                  in operating assets and liabilities:(Increase)/decrease
                  in account receivable
              
              
              7,381
              
              
              -(Increase)/decrease
                  in prepaid and other receivables
              
              
              (50,720
              )
              
              (1,438
              )
              
              (53,257
              )(Increase)/decrease
                  in inventory
              
              
              (11,194
              )
              
              -
              
              
              (29,776
              )Increase/(decrease)
                  in accounts payable
              
              
              748
              
              
              -
              
              
              72,069Increase/(decrease)
                  in accrued expenses
              
              
              (959
              )
              
              -
              
              
              9,252Decrease
                  in government subsidy
              
              
              -
              
              
              (2,008
              )
              
              (50,038
              )Net
                  cash used by operating activities
              
              
              (77,810
              )
              
              (3,121
              )
              
              (138,605
              )Investing
                  ActivitiesPurchase
                  of fixed assets
              
              
              (21,499
              )
              
              (35,129
              )
              
              (624,362
              )Loan
                  to shareholders
              
              
              -
              
              
              -
              
              
              (24,659
              )Repay
                  of loan to shareholders
              
              
              -
              
              
              -
              
              
              24,659Net
                  cash (used) by investing activities
              
              
              (21,499
              )
              
              (35,129
              )
              
              (624,362
              )Financing
                  ActivitiesDistribution
                  to shareholders
              
              
              -
              
              
              -
              
              
              (24,994
              )Capital
                  contribution
              
              
              -
              
              
              -
              
              
              274,103Proceeds
                  from government subsidy
              
              
              -
              
              
              -
              
              
              99,130Proceeds
                  from shareholder loans
              
              
              41,875
              
              
              6,167
              
              
              425,778Net
                  cash provided by financing activities
              
              
              41,875
              
              
              6,167
              
              
              774,017Effect
                  of exchange rate changes on cash
              
              
              514
              
              
              843
              
              
              (3,901
              )Increase(decrease)
                  in cash
              
              
              (56,920
              )
              
              (31,240
              )
              
              7,149Cash
                  at beginning of period
              
              
              64,069
              
              
              103,944
              
              
              -Cash
                  at end of period
              
              $
              7,149
              
              $
              72,704
              
              $
              7,149Supplemental
                  Cash Flow Information:Interest
                  received (paid) during the year
              
              $
              141
              
              $
              -
              
              $
              401Non-cash
                  financing activities:Contribution
                  of patent for equity
              
              $
              -
              
              $
              -
              
              $
              241,639Contribution
                  of fixed assets for equity
              
              $
              -
              
              $
              -
              
              $
              125,497
 
 
 **See
        Notes to Financial Statements.**
 
  5
  **CHANG-ON
        INTERNATIONAL, INC.** **** **AND
        SUBSIDIARIES**
 **F/K/A
        GOLD STANDARD, INC.**
 **(A
        Development Stage Company)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        1- ORGANIZATION AND BUSINESS BACKGROUND**
 
 Chang-On
        International, Inc., (the “Company”) was incorporated under the law of the State
        of Utah as Gold Standard, Inc. (“Gold Standard”) on November 28, 1972 and
        changed its name to Chang-On International, Inc. on April 18, 2007. The Company
        is principally engaged in the business of waste recycling and reutilization
        in
        the People’s Republic of China (“PRC”) through its majority-owned subsidiary,
        Chang-On International Limited (“Chang-On”).
 
 Chang-On
        International Limited (“Chang-On”) was incorporated as a Hong Kong limited
        liability company on September 8, 2006. Chang-On was formed to facilitate
        a
        merger between a US company and a PRC business entity. On December 29, 2006,
        under the terms of the Agreement for the Share Exchange, the Company has
        agreed
        to acquire all the outstanding capital stock of Chang-On in return for the
        issuance of 60,000,000 shares of common stock.
 
 Chang-On
        is a holding company that owns 61% of the registered capital of Harbin Hongbo
        Environment Protection Material, Inc. (“Hongbo”) a corporation formed under the
        laws of the PRC on November 26, 2004. Hongbo is engaged in the business of
        manufacturing construction materials from waste products. All Hongbo’s business
        is currently in the PRC.
 
 As
        a
        result of the Agreement, the transaction was treated for accounting purposes
        as
        a recapitalization and reverse merger by the accounting acquirer (Hongbo)
        and as
        a reorganization of the legal acquirer (Gold Standard). Accordingly, the
        financial statements include the following:
 
 The
        balance sheet consists of the net assets of the acquirer at historical cost;
        and
 
 The
        statement of operations include the operations of the acquirer for the years
        presented and the operations of the acquiree from the date of the
        merger.
  The
        Company is considered to be a development stage company,
        as it has not generated substantial revenues from operations.
 
 **Note
        2- GOING CONCERN**
 
 As
        of
        March 31, 2007, the Company had incurred accumulated losses of $245,119
        from operations since inception and has limited operations. The Company is actively
        pursuing additional funding and a potential merger or acquisition candidate
        and
        strategic partners, which would enhance owners’ investment. Management believes
        that the above actions will allow the Company to continue operations through
        the
        next fiscal year.
 
 
 
  6
  **CHANG-ON
        INTERNATIONAL, INC.** **** **AND
        SUBSIDIARIES**
 **F/K/A
        GOLD STANDARD, INC.**
 **(A
        Development Stage Company)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        3- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
 
 l Basis
        of
        presentation
 These
        accompanying financial statements have been prepared in accordance with
        generally accepted accounting principles in the United States of America
        and are
        presented in U.S. dollars.
 
 l Principles
        of Consolidation
 The
        consolidated financial statements include the accounts of the
        Company and all its majority-owned subsidiaries which require consolidation.
        Inter-company transactions have been eliminated in consolidation. The functional
        currency of the Company’s operation is Renminbi (“RMB”) ****
 
 l Use
        of
        estimates
 In
        preparing these financial statements, management makes estimates and assumptions
        that affect the reported amounts of assets and liabilities in the balance
        sheets
        and revenues and expenses during the year reported. Actual results may differ
        from these estimates.
 
 l Revenue
        recognition
 Revenues
        are recognized when finished products are shipped to unaffiliated customers,
        both title and the risks and rewards of ownership are transferred or services
        have been rendered and accepted, and collectibility is reasonably
        assured.
 
 l Inventories
 Inventories
        are stated at the lower of cost or market. Cost is determined using the average
        cost method. Costs include direct material, direct labor and applicable
        manufacturing overhead.
 
 l Property,
        Plant and Equipment
 Property,
        plant and equipment are stated at cost. Depreciation is computed using the
        straight-line method. Additions and improvement that substantially extend
        the
        useful life of the properties, plan and equipment are capitalized. Property,
        plant and equipment are depreciated to their estimated residual values over
        their estimated useful lives, and reviewed for impairment in accordance with
        Statement of Financial Accounting Standard No.144 “Accounting for the Impairment
        or Disposal of Long-Lived Assets.”
 
 l Intangible
        Assets
 The
        Company periodically analyzes its intangible assets for potential impairment,
        assessing the appropriateness of lives and recoverability of unamortized
        balances through measurement of undiscounted operating cash flows on a basis
        consistent with US GAAP.
 
 l Related
        Parties
 The
        caption "Due from shareholders" represents loans receivable that are unsecured,
        non-interest bearing and have no fixed terms of repayment, and therefore
        are not
        considered current assets.
 The
        caption "Due to shareholders" represents loans payable that are unsecured,
        non-interest bearing and have no fixed terms of repayment, therefore, deemed
        payable on demand. Refer to Note 7.
 
 
  7
  **CHANG-ON
        INTERNATIONAL, INC.** **** **AND
        SUBSIDIARIES**
 **F/K/A
        GOLD STANDARD, INC.**
 **(A
        Development Stage Company)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        3- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)**
 
 l Income
        Tax
 Income
        tax expense is based on reported income before income taxes. Deferred income
        taxes reflect the effect of temporary differences between assets and liabilities
        that are recognized for financial reporting purposes and the amounts that
        are
        recognized for income tax purposes. In accordance with Statement of Financial
        Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes," these
        deferred taxes are measured by applying currently enacted tax laws.
 
 The
        Company did not provide any current or deferred income tax provision or benefit
        for any period presented to date because there is no income from operations,
        with only minor timing differences with regard to the depreciation of fixed
        assets. Management has determined that any deferred tax asset or liability
        is
        inconsequential, and not material to the financial statements.
 
 l Fair
        Value of Financial Instruments
 The
        carrying value of financial instruments, including cash and cash equivalents,
        receivables, accounts payable and accrued expenses, approximates their fair
        value at March 31, 2007, due to the relatively short-term nature of these
        instruments. Unless otherwise noted, it is management opinion that the Company
        is not exposed to significant interest, currency or credit risk arising from
        those financial instruments.
 
 l Foreign
        currencies translation
 The
        functional currency of the Company is the Reminbi (“RMB”). The accompanying
        financial statements have been expressed in United States dollars, the reporting
        currency of the Company.  The balance sheet is translated into United
        States dollars based on the rates of exchange ruling at the balance sheet
        date.
 The statement of operations is translated using a weighted average rate
        for the period.  Translation adjustments are reflected as accumulated
        comprehensive income in shareholders’ equity.
 
 l New
        Accounting Pronouncements
 In
        July
        2006, the FASB issued FASB Interpretation (“FIN”) No. 48, “Accounting for
        Uncertainty in Income Taxes,” which prescribes a comprehensive model for how a
        company should recognize, measure, present and disclose in its financial
        statements uncertain tax positions that the company has taken or expects
        to take
        on a tax return (including a decision whether to file or not to file a return
        in
        a particular jurisdiction). The accounting provisions of FIN No.48 are effective
        for fiscal years beginning after December 15, 2006. The Company is currently
        assessing whether adoption of this Interpretation will have an impact on
        our
        financial position or results of operations.
 
 In
        September 2006, the FASB issued Statement of Financial Accounting Standards
        (“SFAS”) No. 157, “Fair Value Measurements”, which establishes a framework for
        reporting fair value and expands disclosures about fair value measurements.
        SFAS
        No. 157 is effective for financial statements issued for fiscal years beginning
        after November 15, 2007 and interim periods within those fiscal years. The
        Company is currently assessing the impact of the adoption of this standard
        on
        its financial statement.
 
 
 
  8
  **CHANG-ON
        INTERNATIONAL, INC.** **** **AND
        SUBSIDIARIES**
 **F/K/A
        GOLD STANDARD, INC.**
 **(A
        Development Stage Company)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        4- CASH**
  Cash
          consists of the following:
 March
                  31,2007Cash
                  on hand
              
              $
              1,917Cash
                  in bank
              
              
              5,232$
              7,149
  **Note
        5-** **PROPERTY,
        PLANT AND EQUIPMENT**
 
 Property,
        Plant and Equipment consist of the following:
 March
                  31,2007Machinery
                  and Equipment
              
              $
              657,780Office
                  Equipment
              
              
              6,781Vehicle
              
              
              6,086Construction
                  in Progress
              
              
              91,619Less:
                  Accumulated Depreciation
              
              
              (67,362
              )$
              694,904
 
 Depreciation
        is calculated on a straight-line basis over the estimated useful life of
        the
        assets. The annual percentages applied are:
 
 Machinery
                  and Equipment
              10%Office
                  Equipment
              20%Vehicle
              10%
 
 
 
 
 
 
 
 
 
 
  9
  **CHANG-ON
        INTERNATIONAL, INC.** **** **AND
        SUBSIDIARIES**
 **F/K/A
        GOLD STANDARD, INC.**
 **(A
        Development Stage Company)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        6- GOVERNMENT SUBSIDY**
 
 During
        2005, the Company received approximately $100,000 in a government subsidy
        from
        the Finance Department of Heilongjiang Province to be used for research and
        development activities. This subsidy reduces the cost of the Company’s research
        and development activities. Any unused portion of the subsidy has to be returned
        to the province. At March 31, 2007 the Company had not used $49,606 of the
        subsidy.
 
 **Note
        7- DUE TO SHAREHOLDERS**
 
 Due
        to
        Shareholders consists of the following:
 March
                  31,2007Su,
                  Zhensheng
              
              $
              1,077Li,
                  Yukun
              
              
              14,541Li,
                  Guomin
              
              
              397,698Neimenggu
                  Chang An
              
              
              10,540Zhou,
                  Qingwei
              
              
              1,922$
              425,778
 
 Su,
        Zensheng, Li, Yukun and Neimenggu Chang An Inc were shareholders of Hongbo
        from
        July 2004 to June 2006. Li Guomin had been a shareholder of Hongbo since
        November 2006. Zhou, Qingwei has been a shareholder of Chang-On since September
        2006. Under the Agreement for the Share Exchange on December 29, 2006, Li,
        Guomin and Zhou, Qingwei acquired 17,400,000 and 36,600,000 shares of Gold
        Standard, Inc. respectively.
  **Note
        8- COMMON STOCK**
 
 Under
        the
        Agreement for the Share Exchange, Gold Standard, Inc. issued to the shareholders
        of Chang-On 60,000,000 shares of common stock. With 1,307, 366 shares issued
        and
        outstanding before the shares exchange, there is a total of 61,307,366 shares
        issued and outstanding for Gold Standard as of March 31, 2007.
  **Note
        9-FAIR VALUE OF FINANCIAL INSTRUMENTS**
  The
        carrying amounts of cash and cash equivalents, accounts receivable and
        accounts payable are reasonable estimates of their value due to the short
        term
        maturity of these instruments.
 
  10
  **CHANG-ON
        INTERNATIONAL, INC.** **** **AND
        SUBSIDIARIES**
 **F/K/A
        GOLD STANDARD, INC.**
 **(A
        Development Stage Company)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **(UNAUDITED)**
  **Note 10-
        GEOGRAPHIC INFORMATION**
  All
        of
        the Company's sales and all of the Company's long-lived assets are located
        in
        the PRC.
 
 **Note
        11- OPERATING RISK**
  Concentrations
        of credit risk
  Financial
        instruments that subject the Company to concentrations of credit risk consist
        primarily of cash and cash equivalents. The Company maintains its cash and
        cash
        equivalents with high-quality institutions. Deposits held with banks may
        exceed
        the amount of insurance provided on such deposits. Generally these deposits
        may
        be redeemed upon demand and therefore bear minimal risk.
 
 Country
        risk
  The
        Company has significant investments in the PRC. The operating results of
        the
        Company may be adversely affected by changes in the political and social
        conditions in the PRC and by changes in Chinese government policies with
        respect
        to laws and regulations, anti-inflationary measures, currency conversion
        and
        remittance abroad, and rates and methods of taxation, among other things.
        There
        can be no assurance; however, those changes in political and other conditions
        will not result in any adverse impact.
 
 **NOTE
        12- EMPLOYEE BENEFIT PLAN**
  Full
        time
        employees of the Company participate in a government mandated multi-employer
        defined contribution plan pursuant to which certain pension benefits, medical
        care, unemployment insurance, employee housing fund and other welfare benefits
        are provided to employees. Chinese labor regulations require the Company
        to
        accrue for these benefits based on certain percentages of the employees'
        salaries. The total provisions for such employee benefits were $0 for the
        three months ended March 31, 2007.
  **NOTE
        13- RESTRICTED RETAINED EARNINGS**
  Pursuant
        to the laws applicable to the PRC, PRC entities must make appropriations
        from
        after-tax profit to the non-distributable “statutory surplus reserve fund”.
        Subject to certain cumulative limits, the “statutory surplus reserve fund”
requires annual appropriations of 10% of after-tax profit until the aggregated
        appropriations reach 50% of the registered capital (as determined under
        accounting principles generally accepted in the PRC ("PRC GAAP") at each
        year-end). For foreign invested enterprises and joint ventures in the PRC,
        annual appropriations should be made to the “reserve fund”. For foreign invested
        enterprises, the annual appropriation for the “reserve fund” cannot be less than
        10% of after-tax profits until the aggregated appropriations reach 50% of
        the
        registered capital (as determined under PRC GAAP at each year-end). The Company
        did not make any appropriations to the reserve funds mentioned above due
        to lack
        of profit after tax since commencement of operations.
 
   11
  **ITEM
        2. MANAGEMENT DISCUSSION AND ANALYSIS**
 
 **Results
        of Operations**
  Chang-On
        International is a holding company with one asset: 61% of the equity in Harbin
        Hongbo Environment Protection Material, Inc. (“Hongbo”), a corporation organized
        under the laws of The People’s Republic of China. Hongbo
        was organized in November 2004. Until September 2006 it was entirely engaged
        in
        developing its technology and the factory where its products will be produced.
        From September to December 2006 it completed its first sales, realizing $43,023
        in revenue from the sale of SF wallboard. In the first quarter of 2007, however,
        Hongbo had no sales. Because Hongbo has not yet produced significant revenue,
        it
        is still a “development stage company” for financial reporting
        purposes.
  Our
        factory has now been developed to the point where we are capable of producing
        1,430 tons of SF materials per year. Full production, therefore, would yield
        annual revenues of approximately $900,000, based on our present quoted price
        of
        $625 per ton. At the present time, however, our backlog of firm orders is
        only
        $560,000. We are actively engaged in negotiations with a number of large
        construction companies located near our plant in Harbin, China. But we do
        not
        anticipate that full utilization of our facility will occur until late June,
        2007. Until then, we will be focused on completing the build-out of our factory
        and organizing our marketing program.
  When
        full
        production does commence, we anticipate that a number of factors will help
        us to
        achieve profitability:
  Ø
              The
                  cost of our raw materials, relative to the resale price of our
                  product, is
                  modest. We currently pay $50 to $62 per ton to have waste plastic
                  separated from other trash for us, and we obtain coal ask free-of-charge.
                  We pay less than $3 per ton to have the waste products transported
                  to our
                  plant. So the efficiency of our plant operations will be the primary
                  factor in determining our gross
                  profit.
  Ø
              Because
                  of our low cost of production, our SF materials will be sold at
                  prices
                  substantially below the prices of the products they replace. For
                  example,
                  our quoted price for SF material is now less than 50% of the prevailing
                  price of PVC. This disparity should give us flexibility to increase
                  prices
                  without significantly hindering sales, if our initial operations
                  prove
                  unprofitable.
  Ø
              Our
                  operations are looked on with favour by the Chinese government,
                  which has
                  become very conscious of the need to improve the environmental
                  condition
                  of China. One result of the government’s support for us has been a five
                  year exemption from income tax.
  Until
        we
        achieve full production, we will not know with certainty whether our operations
        will be profitable. In addition, in order to achieve a significant level
        of
        revenue and income, it will be necessary for us to expand our facilities
        and our
        product lines, and expansion could introduce problems that might hinder our
        efforts to achieve profitability. Nevertheless, our expectation at this time
        is
        that by the end of 2007 we will have achieved a level of operations that
        will
        enable us to report profits. To fulfill our expectation, however, it will
        be
        necessary that we obtain working capital in the near future.
   12
  Our
        statement of operations records an adjustment for “minority interest.” For the
        first quarter of 2007 the minority interest adjustment reduced our net loss
        by
        $16,287. This represents the reversal of the portion of the loss incurred
        by our
        operating subsidiary, Hongbo, that is attributable to the 39% of Hongbo in
        which
        Chang-On International has no equity interest. If Hongbo realizes income
        in the
        future, a proportionate reduction in our consolidated income will be recorded
        for the same reason.
 
 Our
        business operates entirely in Chinese Renminbi, but we report our results
        in our
        SEC filings in U.S. Dollars. The conversion of our accounts from RMB to Dollars
        results in translation adjustments, which are reported as a middle step between
        net income and comprehensive income. The net income or net loss is added
        to the
        retained earnings on our balance sheet; while the translation adjustment
        is
        added to a line item on our balance sheet labeled “accumulated other
        comprehensive income,” since it is more reflective of changes in the relative
        values of U.S. and Chinese currencies than of the success of our business.
        For
        the first quarter of 2007 we recorded $2,606 in unrealized gains on foreign
        currency translation.
  Liquidity
        and Capital Resources
  Our
        operations to date have been funded primarily by contributions and loans
        from
        our shareholders. As a result, at March 31, 2007, we owed $425,778 to present
        and past shareholders of Hongbo, primarily to Li Guomin, our Chairman. The
        loans
        are all demand loans, which will be paid when cash flow from our operations
        is
        sufficient that repayment will not interfere with the Company’s
        business.
  In
        addition to the funds provided by our shareholders, the Heilongjiang Province
        People’s Government provided us a grant of $100,000 to develop our factory. As
        of March 31, 2007, we had used $50,394 from those funds. The remaining $49,606
        is recorded on our books as a liability, because we are required to repay
        it to
        the People’s Government if we do not use it as intended.
  Our
        auditors have expressed in their report on our financial statements for the
        year
        ended December 31, 2006 substantial doubt as to our ability to continue as
        a
        going concern. Their doubt is based on the fact that our expenses exceed
        our
        revenues and the fact that at December 31, 2006 our balance sheet showed
        a
        working capital deficit of $421,958. The working capital deficit had increased
        to $466,523 by March 31, 2007. However, if the debt to Li Guomin and the
        unused
        portion of the People’s Government grant are eliminated from the calculation,
        the deficit is reduced to $19,219. Nevertheless, in order for us to achieve
        full
        production, it will be necessary that we obtain funds for working capital.
        We
        are currently pursuing funding opportunities. But at the present time, we
        have
        received no commitment from any source.
  Our
        business plan contemplates that by the end of 2007 we will have expanded
        our
        factory from its current production capacity of 1,430 tons of SF material
        to a
        full production capacity of 5,000 tons. We also plan to increase our staff
        from
        the current level of 52 employees to 200 employees. In addition, our business
        plan calls for investment in new product development and the organization
        of a
        marketing program. To fully achieve our goals, we anticipate a need for $6
        million in additional capital.
   13
  ***Off-Balance
        Sheet Arrangements***
 
 We
        do not
        have any off-balance sheet arrangements that have or are reasonably likely
        to
        have a current or future effect on our financial condition or results of
        operations.
 
 ***Risk
        Factors That May Affect Future Results***
 
 You
        should carefully consider the risks described below before buying our common
        stock. If any of the risks described below actually occurs, that event could
        cause the trading price of our common stock to decline, and you could lose
        all
        or part of your investment.
 
 *Because
        we have a very limited history of operations, unexpected factors may hamper
        our
        efforts to implement our business plan.*
  We
        recorded our first sale in 2006 and did not record any sale in the first
        three
        months of 2007. To date, our marketing efforts have produced only a limited
        number of orders. For this reason, we have no experience with high volume
        production nor a meaningful sample of customer reactions to our products.
        Problems with production or marketing may occur that we have not anticipated,
        which would interfere with our business, and prevent us from achieving
        profitability.
 
 *Competition
        from well-capitalized enterprises could prevent us from achieving a significant
        market position.*
  The
        construction materials industry in China includes a number of large,
        well-capitalized companies. Any one or more of these could be attracted by
        any
        success we achieve, and develop similar products. If a well-capitalized company
        directed its financial strength toward competition with us, it could achieve
        economies of scale that might permit it to market its products at lower prices
        than ours. If this occurred before we had established a significant market
        awareness of our brand, we might be unable to compete effectively, and would
        be
        unable to achieve profitability. **
 
 *A
        recession in China could significantly hinder our growth* .
  The
        success of our efforts to compete in the market for construction materials
        in
        China will depend on continuation of recent improvements in the Chinese economy.
        For the past several years, the Chinese economy has grown at a relatively
        rapid
        rate, and the construction industry has been very active. If the economy
        were to
        contract and capital become less available, the demand for our products would
        be
        diminished. Many financial commentators expect a recession to occur in China
        in
        the near future. The occurrence of a recession could significantly hinder
        our
        efforts to implement our business plan.
 
 
   14
  *Our
        business and growth will suffer if we are unable to hire and retain key
        personnel that are in high demand.*
  Our
        future success depends on our ability to attract and retain highly skilled
        engineers, technicians, manufacturing specialists, and marketing personnel.
        In
        general, qualified individuals are in high demand in China, and there are
        insufficient experienced personnel to fill the demand. In a specialized
        scientific field, such as ours, the demand for qualified individuals is even
        greater. If we are unable to successfully attract or retain the personnel
        we
        need to succeed, we will be unable to implement our business plan.
 
 *We
        may have difficulty establishing adequate management and financial controls
        in
        China.*
  The
        People’s Republic of China has only recently begun to adopt the management and
        financial reporting concepts and practices that investors in the United States
        are familiar with. We may have difficulty in hiring and retaining employees
        in
        China who have the experience necessary to implement the kind of management
        and
        financial controls that are expected of a United States public company. If
        we
        cannot establish such controls, we may experience difficulty in collecting
        financial data and preparing financial statements, books of account and
        corporate records and instituting business practices that meet U.S. standards.
 
 *Government
        regulation may hinder our ability to function efficiently* .
  The
        national, provincial and local governments in the People’s Republic of China are
        highly bureaucratized. The day-to-day operations of our business require
        frequent interaction with representatives of the Chinese government
        institutions. The effort to obtain the registrations, licenses and permits
        necessary to carry out our business activities can be daunting. Significant
        delays can result from the need to obtain governmental approval of our
        activities. These delays can have an adverse effect on the profitability
        of our
        operations. In addition, compliance with regulatory requirements applicable
        to
        organic farming and production may increase the cost of our operations, which
        would adversely affect our profitability.
 
 *Capital
        outflow policies in China may hamper our ability to pay dividends to
        shareholders in the United States.*
  The
        People’s Republic of China has adopted currency and capital transfer
        regulations. These regulations require that we comply with complex regulations
        for the movement of capital. Although Chinese governmental policies were
        introduced in 1996 to allow the convertibility of RMB into foreign currency
        for
        current account items, conversion of RMB into foreign exchange for capital
        items, such as foreign direct investment, loans or securities, requires the
        approval of the State Administration of Foreign Exchange. We may be unable
        to
        obtain all of the required conversion approvals for our operations, and Chinese
        regulatory authorities may impose greater restrictions on the convertibility
        of
        the RMB in the future. Because most of our future revenues will be in RMB,
        any
        inability to obtain the requisite approvals or any future restrictions on
        currency exchanges will limit our ability to pay dividends to our shareholders.
 
 
  15
  *Currency
        fluctuations may adversely affect our operating results.*
  Hongbo
        generates revenues and incurs expenses and liabilities in Renminbi, the currency
        of the People’s Republic of China. However, as a subsidiary of Gold Standard, it
        will report its financial results in the United States in U.S. Dollars. As
        a
        result, our financial results will be subject to the effects of exchange
        rate
        fluctuations between these currencies. From time to time, the government
        of
        China may take action to stimulate the Chinese economy that will have the
        effect
        of reducing the value of Renminbi. In addition, international currency markets
        may cause significant adjustments to occur in the value of the Renminbi.
        Any
        such events that result in a devaluation of the Renminbi versus the U.S.
        Dollar
        will have an adverse effect on our reported results. We have not entered
        into
        agreements or purchased instruments to hedge our exchange rate risks.
 
 *We
        have limited business insurance coverage.*
  The
        insurance industry in China is still at an early stage of development. Insurance
        companies in China offer limited business insurance products, and do not,
        to our
        knowledge, offer business liability insurance. As a result, we do not have
        any
        business liability insurance coverage for our operations. Moreover, while
        business disruption insurance is available, we have determined that the risks
        of
        disruption and cost of the insurance are such that we do not require it at
        this
        time. Any business disruption, litigation or natural disaster might result
        in
        substantial costs and diversion of resources.
 
 *Chang-On
        International is not likely to hold annual shareholder meetings in the next
        few
        years.*
  Management
        does not expect to hold annual meetings of shareholders in the next few years,
        due to the expense involved. The current members of the Board of Directors
        were
        appointed to that position by the previous directors. If other directors
        are
        added to the Board in the future, it is likely that the current directors
        will
        appoint them. As a result, the shareholders of Chang-On International will
        have
        no effective means of exercising control over the operations of Chang-On
        International.
 
 **ITEM
        3. CONTROLS AND PROCEDURES**
 
 *Evaluation
        of Disclosure Controls and Procedures* .
        Li
        Guomin, our Chief Executive Officer and Chief Financial Officer, carried
        out an
        evaluation of the effectiveness of the Company’s disclosure controls and
        procedures as of March 31, 2007. Pursuant to Rule13a-15(e) promulgated by
        the
        Securities and Exchange Commission pursuant to the Securities Exchange Act
        of
        1934, “disclosure controls and procedures” means controls and other procedures
        that are designed to insure that information required to be disclosed by
        the
        Company in the reports that it files with the Securities and Exchange Commission
        is recorded, processed, summarized and reported within the time limits specified
        in the Commission’s rules. “Disclosure controls and procedures” include, without
        limitation, controls and procedures designed to insure that information the
        Company is required to disclose in the reports it files with the Commission
        is
        accumulated and communicated to our Chief Executive Officer and Chief Financial
        Officer as appropriate to allow timely decisions regarding required disclosure.
        Based on his evaluation, Mr. Li concluded that the Company’s system of
        disclosure controls and procedures was effective as of March 31, 2007 for
        the
        purposes described in this paragraph.
 
  16
  *Changes
        in Internal Controls* .
        There
        was no change in internal controls over financial reporting (as defined in
        Rule
        13a-15(f) promulgated under the Securities Exchange Act or 1934) identified
        in
        connection with the evaluation described in the preceding paragraph that
        occurred during the Company’s first fiscal quarter that has materially affected
        or is reasonably likely to materially affect the Company’s internal control over
        financial reporting.
 
 **PART
        II - OTHER INFORMATION**
 
 *Item
                6.*
              *Exhibits*
 
 31
              Rule
                  13a-14(a) Certification
 32
              Rule
                  13a-14(b) Certification
 
  **SIGNATURES**
 
 Pursuant
        to the requirements of the Securities Exchange Act of 1934, the Registrant
        has
        duly caused this Report to be signed on its behalf by the undersigned thereunto
        duly authorized.
 
 CHANG-ON
                  INTERNATIONAL, INC.Date:
                  May 21, 2007
              By:
              /s/
                  Li
                  GuominLi
                  Guomin, Chief Executive Officerand
                  Chief Financial Officer




































17