| Utah                                                                                   |   | 87-0302579                           |
|----------------------------------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or                                       |   | (I.R.S. Employer Identification No.) |
| organization)                                                                          |   |                                 |
|                                                                                   |   |                                 |
| 514 No. 18 BuildingHigh New Technology DevelopmentHarbin, Heilongjiang Province, China |   | N/A                                  |
| (Address of principal executive offices)                                               |   | (Zip Code)                           |

----

| PART I – FINANCIAL INFORMATION                                                        |  2 |
|---------------------------------------------------------------------------------------------|---------|
| ITEM 1. FINANCIAL STATEMENTS                                                                |  2 |
| ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |  3 |
| ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS                         |  7 |
| ITEM 4. CONTROLS AND PROCEDURES                                                             |  7 |
|                                                                                        |    |
| PART II – OTHER INFORMATION                                                           |  8 |
| ITEM 1. LEGAL PROCEEDINGS                                                                   |  8 |
| ITEM 1A. RISK FACTORS                                                                       |  8 |
| ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                         |  8 |
| ITEM 3. DEFAULTS UPON SENIOR SECURITIES                                                     |  8 |
| ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                 |  8 |
| ITEM 5. OTHER INFORMATION                                                                   |  8 |
| ITEM 6. EXHIBITS                                                                            |  8 |

----

PART I – FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

| CHANG-ON INTERNATIONAL, INC. AND SUBSIDIARIES |
|-----------------------------------------------|
| (A Development Stage Company)                 |
|                                          |
| INDEX                                         |

|                                                              | PAGE   |
|-------------------------------------------------------------------|--------|
|                                                              |   |
| CONSOLIDATED BALANCE SHEETS (UNAUDITED                            | F-1    |
|                                                              |   |
| CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)                 | F-2    |
|                                                              |   |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)         | F-3    |
|                                                              |   |
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY(DEFICIT) (UNAUDITED) | F-4    |
|                                                              |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)                 | F-5    |
|                                                              |   |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)            | F-6    |

----

|                                                                                                               |   | September 30, |       |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                                                                                               |   | 2009          |       |   | 2008         |   |
|                                                                                                               |   | (Unaudited)   |       |   |         |   |
| ASSETS                                                                                                             |   |          |       |   |         |   |
| Current Assets                                                                                                     |   |          |       |   |         |   |
|      Cash                                                                                 |   | $             | 14,917     |   |         | $      | 3,798 |   |
|      Prepaid and other receivables                                                        |   |          | 293        |   |         |   | 293 |   |
|      Inventories (Note 4)                                                                 |   |          | 107,203    |   |         |   | 108,493 |   |
|           Total Current Assets                                   |   |          | 122,413    |   |         |   | 112,584 |   |
|                                                                                                               |   |          |       |   |         |   |   |   |
| Property, plant and equipment, net (Note 5)                                                                        |   |          | 369,894    |   |         |   | 396,056 |   |
|                                                                                                               |   |          |       |   |         |   |   |   |
|           Total Assets                                           |   | $             | 492,307    |   |         | $      | 508,640 |   |
|                                                                                                               |   |          |       |   |         |   |   |   |
| LIABILITIES                                                                                                        |   |          |       |   |         |   |   |   |
| Current Liabilities                                                                                                |   |          |       |   |         |   |   |   |
|      Trade accounts payable                                                               |   | $             | 696        |   |         | $      | 696 |   |
|      Accrued expenses                                                                     |   |          | 25,208     |   |         |   | 25,211 |   |
|      Government subsidy (Note 6)                                                          |   |          | 78,097     |   |         |   | 56,155 |   |
|      Due to shareholders (Note 7)                                                         |   |          | 237,797    |   |         |   | 215,943 |   |
|           Total Current Liabilities                              |   |          | 341,798    |   |         |   | 298,005 |   |
|                                                                                                               |   |          |       |   |         |   |   |   |
|           Total Liabilities                                      |   |          | 341,798    |   |         |   | 298,005 |   |
|                                                                                                               |   |          |       |   |         |   |   |   |
| EQUITY                                                                                                             |   |          |       |   |         |   |   |   |
| Chang-On International, Inc Stockholders' Equity:                                                                  |   |          |       |   |         |   |   |   |
|     Common stock, par value $0.001, authorized                                                 |   |          |       |   |         |   |   |   |
|         100,000,000 shares, issue and outstanding                          |   |          |       |   |         |   |   |   |
|         67,307,366 shares (Note 8)                                         |   |          | 67,307     |   |         |   | 67,307 |   |
|      Additional paid in capital                                                           |   |          | 3,067,959  |   |         |   | 3,067,959 |   |
|      Deficit                                                                              |   |          | (2,943,728 | )      |         |   | (2,689,591 | ) |
|      Deferred Compensation (Note 9)                                                       |   |          | (100,000   | )      |         |   | (317,500 | ) |
| Accumulated comprehensive income                                                                                   |   |          | (15,568    | )      |         |   | (15,457 | ) |
|           Total Chang-On International, Inc Stockholders' equity |   |          | 75,970     |   |         |   | 112,718 |   |
|                                                                                                               |   |          |       |   |         |   |   |   |
| Noncontrolling interest                                                                                            |   |          | 74,539     |   |         |   | 97,917 |   |
|                                                                                                               |   |          |       |   |         |   |   |   |
| Total Equity                                                                                                       |   |          | 150,509    |   |         |   | 210,635 |   |
|                                                                                                               |   |          |       |   |         |   |   |   |
|           Total Liabilities and Equity                           |   | $             | 492,307    |   |         | $      | 508,640 |   |

----

|                                                           |   | For the Three Months EndedSeptember 30, |       |   | For the Nine Months EndedSeptember 30, |   |       |  For the Period November 26, 2004 (inception) to September 30, |   |
|----------------------------------------------------------------|--------|-----------------------------------------|------------|--------|----------------------------------------|--------|------------|---------------------------------------------------------------------|--------|
|                                                           |   | 2009                                    |       |   | 2008                                   |   |       | 2009                                                                |   |   | 2008 |   |   | 2009 |   |
|                                                           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |
| Net sales                                                      |   | $                                       | 1,989      |   |                                   | $      | 352        |                                                                |   | $ | 1,989 |   |   | $ | 33,094 |   |   | $ | 93,775 |   |
| Cost of sales                                                  |   |                                    | (1,228     | )      |                                   |   | (176       | )                                                                   |   |   | (1,228 | ) |   |   | (16,609 | ) |   |   | (60,324 | ) |
|  Gross profit                                             |   |                                    | 761        |   |                                   |   | 176        |                                                                |   |   | 761 |   |   |   | 16,485 |   |   |   | 33,451 |   |
|                                                           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                       |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|      Salaries                         |   |                                    | 3,513      |   |                                   |   | 6,559      |                                                                |   |   | 10,538 |   |   |   | 19,672 |   |   |   | 118,824 |   |
|      Transportation                   |   |                                    | -          |   |                                   |   | 4,307      |                                                                |   |   | - |   |   |   | 7,509 |   |   |   | 13,354 |   |
|      Office equipment                 |   |                                    | -          |   |                                   |   | 1,712      |                                                                |   |   | 28 |   |   |   | 2,102 |   |   |   | 6,879 |   |
|      Water, electricity and gas       |   |                                    | 3,573      |   |                                   |   | 10,826     |                                                                |   |   | 23,889 |   |   |   | 17,787 |   |   |   | 115,523 |   |
|      Other expenses                   |   |                                    | 122        |   |                                   |   | 540        |                                                                |   |   | 331 |   |   |   | 3,903 |   |   |   | 35,178 |   |
|      Advertisement                    |   |                                    | -          |   |                                   |   | -          |                                                                |   |   | - |   |   |   | - |   |   |   | 556 |   |
|      Rent expense                     |   |                                    | -          |   |                                   |   | -          |                                                                |   |   | - |   |   |   | - |   |   |   | 3,811 |   |
|      Depreciation                     |   |                                    | 8,641      |   |                                   |   | 8,571      |                                                                |   |   | 25,917 |   |   |   | 19,730 |   |   |   | 157,249 |   |
|      R & D expense                |   |                                    | -          |   |                                   |   | -          |                                                                |   |   | - |   |   |   | - |   |   |   | 22,578 |   |
|      Repairs and maintenance          |   |                                    | -          |   |                                   |   | -          |                                                                |   |   | - |   |   |   | - |   |   |   | 1,025 |   |
|      Gain on disposal of fixed assets |   |                                    | -          |   |                                   |   | -          |                                                                |   |   | - |   |   |   | - |   |   |   | (7,730 | ) |
|      Stock compensation               |   |                                    | 50,000     |   |                                   |   | 221,666    |                                                                |   |   | 217,500 |   |   |   | 758,333 |   |   |   | 2,300,000 |   |
|      Professional fees                |   |                                    | -          |   |                                   |   | -          |                                                                |   |   | - |   |   |   | - |   |   |   | 25,000 |   |
|      Fixed assets impairment          |   |                                    | -          |   |                                   |   | -          |                                                                |   |   | - |   |   |   | - |   |   |   | 345,962 |   |
|      Intangibles writedown            |   |                                    | -          |   |                                   |   | -          |                                                                |   |   | - |   |   |   | - |   |   |   | 241,639 |   |
|   Total Expenses                                     |   |                                    | 65,849     |   |                                   |   | 254,181    |                                                                |   |   | 278,203 |   |   |   | 829,036 |   |   |   | 3,379,848 |   |
|                                                           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Total expenses and loss from operations                        |   |                                    | (65,088    | )      |                                   |   | (254,005   | )                                                                   |   |   | (277,442 | ) |   |   | (812,551 | ) |   |   | (3,346,397 | ) |
|                                                           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income                                                   |   |                                    | -          |   |                                   |   | 76         |                                                                |   |   | - |   |   |   | 7,159 |   |   |   | 7,195 |   |
|                                                           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before provision for income tax                           |   |                                    | (65,088    | )      |                                   |   | (253,929   | )                                                                   |   |   | (277,442 | ) |   |   | (805,392 | ) |   |   | (3,339,202 | ) |
|                                                           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax provision                                           |   |                                    | -          |   |                                   |   | -          |                                                                |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                       |   |                                    | (65,088    | )      |                                   |   | (253,929   | )                                                                   |   |   | (277,442 | ) |   |   | (805,392 | ) |   |   | (3,339,202 | ) |
|                                                           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Less: Net loss attributable to the noncontrolling interest     |   |                                    | 5,851      |   |                                   |   | -          |                                                                |   |   | 23,305 |   |   |   | - |   |   |   | 289,108 |   |
|                                                           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Chang-On International, Inc           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |
| common stockholders                                            |   | $                                       | (59,237    | )      |                                   | $      | (253,929   | )                                                                   |   | $ | (254,137 | ) |   |   | (805,392 | ) |   | $ | (3,050,094 | ) |
|                                                           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and Fully Diluted Earnings per Share                     |   | $                                       | (0.00      | )      |                                   | $      | (0.00      | )                                                                   |   | $ | (0.00 | ) |   | $ | (0.01 | ) |   |   |   |   |
|                                                           |   |                                    |       |   |                                   |   |       |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding                            |   |                                    | 67,307,366 |   |                                   |   | 67,307,366 |                                                                |   |   | 67,307,366 |   |   |   | 67,307,366 |   |   |   |   |   |

----

|                                                            |   | For the Three Months EndedSeptember 30, |    |   | For the Nine Months EndedSeptember 30, |   |     | For the Period November 26, 2004 (inception) to September 30, |   |
|-----------------------------------------------------------------|--------|-----------------------------------------|---------|--------|----------------------------------------|--------|----------|---------------------------------------------------------------|--------|
|                                                            |   | 2009                                    |    |   | 2008                                   |   |     | 2009                                                          |   |   | 2008 |   |   | 2009 |   |
|                                                            |   |                                    |    |   |                                   |   |     |                                                          |   |   |   |   |   |   |   |
| Net loss                                                        |   | $                                       | (65,088 | )      |                                   | $      | (253,929 | )                                                             |   | $ | (277,442 | ) |   | $ | (805,392 | ) |   | $ | (3,339,202 | ) |
|                                                            |   |                                    |    |   |                                   |   |     |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income(loss), net of tax:                   |   |                                    |    |   |                                   |   |     |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation gain(loss)                         |   |                                    | 114     |   |                                   |   | (3,797   | )                                                             |   |   | (184 | ) |   |   | (21,098 | ) |   |   | (15,641 | ) |
|                                                            |   |                                    |    |   |                                   |   |     |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                                              |   |                                    | (64,974 | )      |                                   |   | (257,726 | )                                                             |   |   | (277,626 | ) |   |   | (826,490 | ) |   |   | (3,354,843 | ) |
| Comprehensive loss attributable to the noncontrolling interest  |   |                                    | 5,808   |   |                                   |   | -        |                                                          |   |   | 23,378 |   |   |   | - |   |   |   | 289,181 |   |
|                                                            |   |                                    |    |   |                                   |   |     |                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss attributable to Chang-On International, Inc. |   | $                                       | (59,166 | )      |                                   | $      | (257,726 | )                                                             |   | $ | (254,248 | ) |   | $ | (826,490 | ) |   | $ | (3,065,662 | ) |

----

|                                  |   |   |     |   |          |   |     | Chang-On International, Inc. Stockholders |   |   |       |   |   |        |   |   |     |   |
|---------------------------------------|--------|--------|----------|--------|---------------|--------|----------|-------------------------------------------|--------|--------|------------|--------|--------|-------------|--------|--------|----------|--------|
|                                  |   |   |     |   |          |   |     | Common Stock                              |   |   | Additional |   |   |        |   |   |     |   |   | Accumulated |   |
|                                  |   |   |     |   | Comprehensive |   |     | $0.001 Par Value                          |   |   | Paid-in    |   |   | Accumulated |   |   | Deferred |   |   | Comprehensive |   |
|                                  |   | Total  |     |   | Income        |   |     | Shares                                    |   |   | Amount     |   |   | Capital     |   |   | Deficit  |   |   | Compensation |   |   | Income (loss) |   |   | Interest |   |
|                                  |   |   |     |   |          |   |     |                                      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Balance December 31, 2008             |   | $      | 210,635  |   |          | $      | -        |                                      |   |   | 67,307,366 |   |   | $           | 67,307 |   |     | $      | 3,067,959 |   |   | $ | (2,689,591 | ) |   | $ | (317,500 | ) |   | $ | (15,457 | ) |   | $ | 97,917 |   |
|                                  |   |   |     |   |          |   |     |                                      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of deferred compensation |   |   | 217,500  |   |          |   |     |                                      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   | 217,500 |   |   |   |   |   |   |   |   |   |
|                                  |   |   |     |   |          |   |     |                                      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss:                   |   |   |     |   |          |   |     |                                      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                              |   |   | (277,442 | )      |          |   | (277,442 | )                                         |   |   |       |   |   |        |   |   |     |   |   |   |   |   | (254,137 | ) |   |   |   |   |   |   |   |   |   |   | (23,305 | ) |
| Other comprehensive loss, net of tax: |   |   |     |   |          |   |     |                                      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation loss     |   |   | (184     | )      |          |   | (184     | )                                         |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   | (111 | ) |   |   | (73 | ) |
|                                  |   |   |     |   |          |   |     |                                      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                    |   |   | (277,626 | )      |          | $      | (277,626 | )                                         |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |   |     |   |          |   |     |                                      |   |   |       |   |   |        |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance September 30, 2009            |   | $      | 150,509  |   |          |   |     |                                      |   |   | 67,307,366 |   |   | $           | 67,307 |   |     | $      | 3,067,959 |   |   | $ | (2,943,728 | ) |   | $ | (100,000 | ) |   | $ | (15,568 | ) |   | $ | 74,539 |   |

----

|                                                             |   | Nine Months EndedSeptember 30, |     |   | For the Period November 26, 2004 (inception) to September 30, |   |
|------------------------------------------------------------------|--------|--------------------------------|----------|--------|---------------------------------------------------------------|--------|
|                                                             |   | 2009                           |     |   | 2008                                                          |   |   | 2009 |   |
| Operating Activities:                                            |   |                           |     |   |                                                          |   |   |   |   |
| Net loss                                                         |   | $                              | (277,442 | )      |                                                          | $      | (805,392 | ) |   | $ | (3,339,202 | ) |
| Adjustments to reconcile net loss to net cash used by operations |   |                           |     |   |                                                          |   |   |   |   |
|                                                             |   |                           |     |   |                                                          |   |   |   |   |   |   |   |
| Depreciation (cost and expense)                                  |   |                           | 25,917   |   |                                                          |   | 25,300 |   |   |   | 166,711 |   |
| Impairment loss on intangible assets                             |   |                           | -        |   |                                                          |   | - |   |   |   | 241,639 |   |
| Impairment loss on fixed assets                                  |   |                           | -        |   |                                                          |   | - |   |   |   | 345,962 |   |
| Gain on disposal of fixed assets                                 |   |                           | -        |   |                                                          |   | - |   |   |   | (7,730 | ) |
| Stock compensation                                               |   |                           | 217,500  |   |                                                          |   | 758,333 |   |   |   | 2,298,000 |   |
| Changes in operating assets and liabilities:                     |   |                           |     |   |                                                          |   |   |   |   |   |   |   |
| (Increase)/decrease in account receivable                        |   |                           | -        |   |                                                          |   | - |   |   |   | - |   |
| (Increase)/decrease in prepaid and other receivables             |   |                           | -        |   |                                                          |   | 665 |   |   |   | (293 | ) |
| (Increase)/decrease in inventory                                 |   |                           | -        |   |                                                          |   | (58,932 | ) |   |   | (108,493 | ) |
| Increase/(decrease) in accounts payable                          |   |                           | -        |   |                                                          |   | (14,359 | ) |   |   | 695 |   |
| Increase/(decrease) in accrued expenses                          |   |                           | -        |   |                                                          |   | 182 |   |   |   | 25,211 |   |
| Decrease in government subsidy                                   |   |                           | -        |   |                                                          |   | - |   |   |   | (50,038 | ) |
| Net cash used by operating activities                            |   |                           | (34,025  | )      |                                                          |   | (94,203 | ) |   |   | (427,538 | ) |
|                                                             |   |                           |     |   |                                                          |   |   |   |   |   |   |   |
| Investing Activities                                             |   |                           |     |   |                                                          |   |   |   |   |   |   |   |
| Purchase of fixed assets                                         |   |                           | -        |   |                                                          |   | (1,852 | ) |   |   | (710,118 | ) |
| Loan to shareholders                                             |   |                           | -        |   |                                                          |   | - |   |   |   | (24,659 | ) |
| Repay of loan from shareholders                                  |   |                           | -        |   |                                                          |   | - |   |   |   | 24,659 |   |
| Net cash (used) by investing activities                          |   |                           | -        |   |                                                          |   | (1,852 | ) |   |   | (710,118 | ) |
|                                                             |   |                           |     |   |                                                          |   |   |   |   |   |   |   |
| Financing Activities                                             |   |                           |     |   |                                                          |   |   |   |   |   |   |   |
| Distribution to shareholders                                     |   |                           | -        |   |                                                          |   | - |   |   |   | (24,994 | ) |
| Capital contribution                                             |   |                           | -        |   |                                                          |   | - |   |   |   | 274,103 |   |
| Proceeds from government subsidy                                 |   |                           | 21,942   |   |                                                          |   | - |   |   |   | 121,072 |   |
| Proceeds from shareholder loans                                  |   |                           | 80,499   |   |                                                          |   | 137,282 |   |   |   | 821,201 |   |
| Repay of loan to shareholders                                    |   |                           | (58,545  | )      |                                                          |   | - |   |   |   | (70,844 | ) |
| Net cash provided by financing activities                        |   |                           | 43,896   |   |                                                          |   | 137,282 |   |   |   | 1,120,538 |   |
|                                                             |   |                           |     |   |                                                          |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash                          |   |                           | 1,248    |   |                                                          |   | (46,328 | ) |   |   | 32,035 |   |
|                                                             |   |                           |     |   |                                                          |   |   |   |   |   |   |   |
| Increase(decrease)  in cash                            |   |                           | 11,119   |   |                                                          |   | (5,101 | ) |   |   | 14,917 |   |
| Cash at beginning of period                                      |   |                           | 3,798    |   |                                                          |   | 7,380 |   |   |   | - |   |
| Cash at end of period                                            |   | $                              | 14,917   |   |                                                          | $      | 2,279 |   |   | $ | 14,917 |   |
|                                                             |   |                           |     |   |                                                          |   |   |   |   |   |   |   |
| Supplemental Cash Flow Information:                              |   |                           |     |   |                                                          |   |   |   |   |   |   |   |
| Interest received (paid) during the year                         |   | $                              | -        |   |                                                          | $      | 9 |   |   | $ | 260 |   |
| Non-cash financing activities:                                   |   |                           |     |   |                                                          |   |   |   |   |   |   |   |
| Contribution of patent for equity                                |   | $                              | -        |   |                                                          | $      | - |   |   | $ | 241,639 |   |
| Contribution of fixed assets for equity                          |   | $                              | -        |   |                                                          | $      | - |   |   | $ | 125,497 |   |
| Stock issued in exchange for consulting services                 |   | $                              | -        |   |                                                          | $      | - |   |   | $ | 2,400,000 |   |
| Conversion of shareholder's loan to paid in capital              |   | $                              | -        |   |                                                          | $      | - |   |   | $ | 589,100 |   |

----

----

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| Level 1: | Unadjusted quoted prices in active markets for identical assets or liabilities |
|----------|--------------------------------------------------------------------------------|

| Level 2: | Input other than quoted market prices that are observable, either directly or indirectly, and reasonably available.  Observable inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the Company. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 3: | Unobservable inputs.  Unobservable inputs reflect the assumptions that the Company develops based on available information about what market participants would use in valuing the asset or liability. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|           |   | September 30, |    |   | December 31, |   |
|----------------|--------|---------------|---------|--------|--------------|--------|
|           |   | 2009          |    |   | 2008         |   |
|           |   |          |    |   |         |   |
| Raw Material   |   | $             | 38,308  |   |         | $      | 38,330 |   |
| Finished Goods |   |          | 68,895  |   |         |   | 70,163 |   |
|           |   | $             | 107,203 |   |         | $      | 108,493 |   |

----

|                           |   | September 30, |     |   | December 31, |   |
|--------------------------------|--------|---------------|----------|--------|--------------|--------|
|                           |   | 2009          |     |   | 2008         |   |
|                           |   |          |     |   |         |   |
| Machinery and Equipment        |   | $             | 335,675  |   |         | $      | 335,863 |   |
| Office Equipment               |   |          | 7,672    |   |         |   | 7,676 |   |
| Vehicle                        |   |          | 6,885    |   |         |   | 6,889 |   |
| Construction in Progress       |   |          | 136,807  |   |         |   | 136,884 |   |
|                           |   |          | 487,039  |   |         |   | 487,312 |   |
| Less: Accumulated Depreciation |   |          | (117,145 | )      |         |   | (91,256 | ) |
|                           |   | $             | 369,894  |   |         | $      | 396,056 |   |

----

|          |   | September 30, |    |   | December 31, |   |
|---------------|--------|---------------|---------|--------|--------------|--------|
|          |   | 2009          |    |   | 2008         |   |
| Li, Yukun     |   | $             | 22,311  |   |         | $      | 22,323 |   |
| Li, Guomin    |   |          | 213,563 |   |         |   | 191,697 |   |
| Zhou, Qingwei |   |          | 1,923   |   |         |   | 1,923 |   |
|          |   | $             | 237,797 |   |         | $      | 215,943 |   |

----

----

ITEM 2.  MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

----

| Description                                                                     | Estimated Expenses ($) |
|---------------------------------------------------------------------------------|------------------------|
| Research and development costs for further products and manufacturing processes | 250,000                |
| Consulting fees (including legal and auditing fees)                             | 100,000                |
| Rent expenses                                                                   | 20,000                 |
| Marketing expenses                                                              | 400,000                |
| Investor relations costs                                                        | 80,000                 |
| Other administrative expenses                                                   | 80,000                 |
| Total                                                                           | 930,000                |

----

----

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

ITEM 4. CONTROLS AND PROCEDURES

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PART II – OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

ITEM 1A. RISK FACTORS.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

ITEM 5.  OTHER INFORMATION

ITEM 6.  EXHIBITS

| ExhibitNumber | ExhibitDescription                                                                                                                                                                       |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1          | Certification of the Chief Executive Officer and Chief Financial Officer Pursuant to Rule 13a-14 or 15d-14 of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|          |                                                                                                                                                                                     |
| 32.1          | Certification of the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002         |

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|                    | Chang-On International, Inc.                                                                      |
|-------------------------|---------------------------------------------------------------------------------------------------|
|                    |                                                                                              |
|                    | By: /s/ Guomin Li                                                                                 |
| Date: November 16, 2009 | Guomin Li                                                                                         |
|                    | President, Chief Executive Officer Chief Financial Officer, PrincipalAccounting Officer, Director |