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

----

| PART I – FINANCIAL INFORMATION                                                        |    |
|---------------------------------------------------------------------------------------------|---------|
|                                                                                        |    |
| ITEM 1. FINANCIAL STATEMENTS                                                                |  3 |
| ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |  4 |
| ITEM 4. CONTROLS AND PROCEDURES                                                             |  7 |
|                                                                                        |    |
| PART II – OTHER INFORMATION                                                           |    |
|                                                                                        |    |
| 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

|                                                              | 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    |

----

|                                                                                                               |   | June 30, 2009 |       |   | December 31, 2008 |   |
|--------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                                                                                               |   | (Unaudited)   |       |   |              |   |
| ASSETS                                                                                                             |   |          |       |   |              |   |
| Current Assets                                                                                                     |   |          |       |   |              |   |
|      Cash                                                                                 |   | $             | 56,664     |   |              | $      | 3,798 |   |
|      Prepaid and other receivables                                                        |   |          | 293        |   |              |   | 293 |   |
|      Inventories (Note 4)                                                                 |   |          | 108,362    |   |              |   | 108,493 |   |
|           Total Current Assets                                   |   |          | 165,319    |   |              |   | 112,584 |   |
|                                                                                                               |   |          |       |   |              |   |   |   |
| Property, plant and equipment, net (Note 5)                                                                        |   |          | 378,299    |   |              |   | 396,056 |   |
|                                                                                                               |   |          |       |   |              |   |   |   |
|           Total Assets                                           |   | $             | 543,618    |   |              | $      | 508,640 |   |
|                                                                                                               |   |          |       |   |              |   |   |   |
| LIABILITIES                                                                                                        |   |          |       |   |              |   |   |   |
| Current Liabilities                                                                                                |   |          |       |   |              |   |   |   |
|      Trade accounts payable                                                               |   | $             | 696        |   |              | $      | 696 |   |
|      Accrued expenses                                                                     |   |          | 25,146     |   |              |   | 25,211 |   |
|      Government subsidy (Note 6)                                                          |   |          | 56,088     |   |              |   | 56,155 |   |
|      Due to shareholders (Note 7)                                                         |   |          | 296,205    |   |              |   | 215,943 |   |
|           Total Current Liabilities                              |   |          | 378,135    |   |              |   | 298,005 |   |
|                                                                                                               |   |          |       |   |              |   |   |   |
|           Total Liabilities                                      |   |          | 378,135    |   |              |   | 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                                                                              |   |          | (2,884,491 | )      |              |   | (2,689,591 | ) |
|      Deferred Compensation (Note 9)                                                       |   |          | (150,000   | )      |              |   | (317,500 | ) |
| Accumulated comprehensive income                                                                                   |   |          | (15,639    | )      |              |   | (15,457 | ) |
|           Total Chang-On International, Inc Stockholders' equity |   |          | 85,136     |   |              |   | 112,718 |   |
|                                                                                                               |   |          |       |   |              |   |   |   |
| Noncontrolling interest                                                                                            |   |          | 80,347     |   |              |   | 97,917 |   |
|                                                                                                               |   |          |       |   |              |   |   |   |
| Total Equity                                                                                                       |   |          | 165,483    |   |              |   | 210,635 |   |
|                                                                                                               |   |          |       |   |              |   |   |   |
|           Total Liabilities and Equity                           |   | $             | 543,618    |   |              | $      | 508,640 |   |

----

|                                                           |   | For the Three Months EndedJune 30, |       |   | For the Six Months EndedJune 30, |   |       | For the Period November 26, 2004 (inception) to March 31, |   |
|----------------------------------------------------------------|--------|------------------------------------|------------|--------|----------------------------------|--------|------------|-----------------------------------------------------------|--------|
|                                                           |   | 2009                               |       |   | 2008                             |   |       | 2009                                                      |   |   | 2008 |   |   | 2009 |   |
|                                                           |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |
| Net sales                                                      |   | $                                  | -          |   |                             | $      | 32,742     |                                                      |   | $ | - |   |   | $ | 32,742 |   |   | $ | 91,786 |   |
| Cost of sales                                                  |   |                               | -          |   |                             |   | (16,433    | )                                                         |   |   | - |   |   |   | (16,433 | ) |   |   | (59,096 | ) |
|  Gross profit                                             |   |                               | -          |   |                             |   | 16,309     |                                                      |   |   | - |   |   |   | 16,309 |   |   |   | 32,690 |   |
|                                                           |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                       |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|      Salaries                         |   |                               | 3,514      |   |                             |   | 6,176      |                                                      |   |   | 7,025 |   |   |   | 13,113 |   |   |   | 115,311 |   |
|      Transportation                   |   |                               | -          |   |                             |   | 1,881      |                                                      |   |   | - |   |   |   | 3,202 |   |   |   | 13,354 |   |
|      Office equipment                 |   |                               | 13         |   |                             |   | 54         |                                                      |   |   | 28 |   |   |   | 390 |   |   |   | 6,879 |   |
|      Water, electricity and gas       |   |                               | 3,310      |   |                             |   | 5,704      |                                                      |   |   | 20,316 |   |   |   | 6,961 |   |   |   | 111,950 |   |
|      Other expenses                   |   |                               | 123        |   |                             |   | 887        |                                                      |   |   | 209 |   |   |   | 3,363 |   |   |   | 35,056 |   |
|      Advertisement                    |   |                               | -          |   |                             |   | -          |                                                      |   |   | - |   |   |   | - |   |   |   | 556 |   |
|      Rent expense                     |   |                               | -          |   |                             |   | -          |                                                      |   |   | - |   |   |   | - |   |   |   | 3,811 |   |
|      Depreciation                     |   |                               | 8,641      |   |                             |   | 7,033      |                                                      |   |   | 17,276 |   |   |   | 11,159 |   |   |   | 148,608 |   |
|      R & D expense                |   |                               | -          |   |                             |   | -          |                                                      |   |   | - |   |   |   | - |   |   |   | 22,578 |   |
|      Repairs and maintenance          |   |                               | -          |   |                             |   | -          |                                                      |   |   | - |   |   |   | - |   |   |   | 1,025 |   |
|      Gain on disposal of fixed assets |   |                               | -          |   |                             |   | -          |                                                      |   |   | - |   |   |   | - |   |   |   | (7,730 | ) |
|      Stock compensation               |   |                               | 50,000     |   |                             |   | 221,667    |                                                      |   |   | 167,500 |   |   |   | 536,667 |   |   |   | 2,250,000 |   |
|      Professional fees                |   |                               | -          |   |                             |   | -          |                                                      |   |   | - |   |   |   | - |   |   |   | 25,000 |   |
|      Fixed assets impairment          |   |                               | -          |   |                             |   | -          |                                                      |   |   | - |   |   |   | - |   |   |   | 345,962 |   |
|      Intangibles writedown            |   |                               | -          |   |                             |   | -          |                                                      |   |   | - |   |   |   | - |   |   |   | 241,639 |   |
|   Total Expenses                                     |   |                               | 65,601     |   |                             |   | 243,402    |                                                      |   |   | 212,354 |   |   |   | 574,855 |   |   |   | 3,313,999 |   |
|                                                           |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Total expenses and loss from operations                        |   |                               | (65,601    | )      |                             |   | (227,093   | )                                                         |   |   | (212,354 | ) |   |   | (558,546 | ) |   |   | (3,281,309 | ) |
|                                                           |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income                                                   |   |                               | -          |   |                             |   | 102        |                                                      |   |   | - |   |   |   | 7,083 |   |   |   | 7,195 |   |
|                                                           |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before provision for income tax                           |   |                               | (65,601    | )      |                             |   | (226,991   | )                                                         |   |   | (212,354 | ) |   |   | (551,463 | ) |   |   | (3,274,114 | ) |
|                                                           |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax provision                                           |   |                               | -          |   |                             |   | -          |                                                      |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                           |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                       |   |                               | (65,601    | )      |                             |   | (226,991   | )                                                         |   |   | (212,354 | ) |   |   | (551,463 | ) |   |   | (3,274,114 | ) |
|                                                           |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Less: Net loss attributable to the noncontrolling interest     |   |                               | 6,058      |   |                             |   | -          |                                                      |   |   | 17,454 |   |   |   | - |   |   |   | 283,257 |   |
|                                                           |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Chang-On International, Inc           |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |   |   |
| common stockholders                                            |   | $                                  | (59,543    | )      |                             | $      | (226,991   | )                                                         |   | $ | (194,900 | ) |   |   | (551,463 | ) |   | $ | (2,990,857 | ) |
|                                                           |   |                               |       |   |                             |   |       |                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 EndedJune 30, |    |   | For the Six Months EndedJune 30, |   |     | For the Period November 26, 2004 (inception) to June 30, |   |
|-----------------------------------------------------------------|--------|------------------------------------|---------|--------|----------------------------------|--------|----------|----------------------------------------------------------|--------|
|                                                            |   | 2009                               |    |   | 2008                             |   |     | 2009                                                     |   |   | 2008 |   |   | 2009 |   |
|                                                            |   |                               |    |   |                             |   |     |                                                     |   |   |   |   |   |   |   |
| Net loss                                                        |   | $                                  | (65,601 | )      |                             | $      | (226,991 | )                                                        |   | $ | (212,354 | ) |   | $ | (551,463 | ) |   | $ | (3,274,114 | ) |
|                                                            |   |                               |    |   |                             |   |     |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income(loss), net of tax:                   |   |                               |    |   |                             |   |     |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation gain(loss)                         |   |                               | 96      |   |                             |   | (6,388   | )                                                        |   |   | (298 | ) |   |   | (17,301 | ) |   |   | (15,755 | ) |
|                                                            |   |                               |    |   |                             |   |     |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                                              |   |                               | (65,505 | )      |                             |   | (233,379 | )                                                        |   |   | (212,652 | ) |   |   | (568,764 | ) |   |   | (3,289,869 | ) |
| Comprehensive loss attributable to the noncontrolling interest  |   |                               | 6,020   |   |                             |   | -        |                                                     |   |   | 17,570 |   |   |   | - |   |   |   | 283,373 |   |
|                                                            |   |                               |    |   |                             |   |     |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss attributable to Chang-On International, Inc. |   | $                                  | (59,485 | )      |                             | $      | (233,379 | )                                                        |   | $ | (195,082 | ) |   | $ | (568,764 | ) |   | $ | (3,006,496 | ) |

----

|                                  |   |   |     |   |          |   |     | Chang-On International, Inc. Stockholders |   |   |       |   |
|---------------------------------------|--------|--------|----------|--------|---------------|--------|----------|-------------------------------------------|--------|--------|------------|--------|
|                                  |   |   |     |   |          |   |     | Common Stock                              |   |   | Additional |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                  |   |   |     |   | Comprehensive |   |     | $0.001 Par Value                          |   |   | Paid-in    |   |   | Accumulated |   |   | Deferred |   |   | Comprehensive |   |   | Noncontrolling |   |
|                                  |   | 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 |   |   | 167,500  |   |          |   |     |                                      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 167,500 |   |   |   |   |   |   |   |   |   |
|                                  |   |   |     |   |          |   |     |                                      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss:                   |   |   |     |   |          |   |     |                                      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                              |   |   | (212,354 | )      |          |   | (212,354 | )                                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   | (194,900 | ) |   |   |   |   |   |   |   |   |   |   | (17,454 | ) |
| Other comprehensive loss, net of tax: |   |   |     |   |          |   |     |                                      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation loss     |   |   | (298     | )      |          |   | (298     | )                                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (182 | ) |   |   | (116 | ) |
|                                  |   |   |     |   |          |   |     |                                      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                    |   |   | (212,652 | )      |          | $      | (212,652 | )                                         |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |   |     |   |          |   |     |                                      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance June 30, 2009                 |   | $      | 165,483  |   |          |   |     |                                      |   |   | 67,307,366 |   |   | $ | 67,307 |   |   | $ | 3,067,959 |   |   | $ | (2,884,491 | ) |   | $ | (150,000 | ) |   | $ | (15,639 | ) |   | $ | 80,347 |   |

----

|                                                             |   | Six Months EndedJune 30, |     |   | For the Period November 26, 2004 (inception) to June 30, |   |
|------------------------------------------------------------------|--------|--------------------------|----------|--------|----------------------------------------------------------|--------|
|                                                             |   | 2009                     |     |   | 2008                                                     |   |   | 2009 |   |
| Operating Activities:                                            |   |                     |     |   |                                                     |   |   |   |   |
| Net loss                                                         |   | $                        | (212,354 | )      |                                                     | $      | (551,463 | ) |   | $ | (3,274,114 | ) |
| Adjustments to reconcile net loss to net cash used by operations |   |                     |     |   |                                                     |   |   |   |   |
|                                                             |   |                     |     |   |                                                     |   |   |   |   |   |   |   |
| Depreciation (cost and expense)                                  |   |                     | 17,276   |   |                                                     |   | 16,670 |   |   |   | 158,070 |   |
| Impairment loss on intangible assets                             |   |                     | -        |   |                                                     |   | - |   |   |   | 241,639 |   |
| Impairment loss on fixed assets                                  |   |                     | -        |   |                                                     |   | - |   |   |   | 345,962 |   |
| Gain on disposal of fixed assets                                 |   |                     | -        |   |                                                     |   | - |   |   |   | (7,730 | ) |
| Stock compensation                                               |   |                     | 167,500  |   |                                                     |   | 536,667 |   |   |   | 2,248,000 |   |
| Changes in operating assets and liabilities:                     |   |                     |     |   |                                                     |   |   |   |   |   |   |   |
| (Increase)/decrease in account receivable                        |   |                     | -        |   |                                                     |   | - |   |   |   | - |   |
| (Increase)/decrease in prepaid and other receivables             |   |                     | -        |   |                                                     |   | 668 |   |   |   | (293 | ) |
| (Increase)/decrease in inventory                                 |   |                     | -        |   |                                                     |   | (57,826 | ) |   |   | (108,493 | ) |
| Increase/(decrease) in accounts payable                          |   |                     | -        |   |                                                     |   | (14,366 | ) |   |   | 695 |   |
| Increase/(decrease) in accrued expenses                          |   |                     | (65      | )      |                                                     |   | 1,058 |   |   |   | 25,146 |   |
| Decrease in government subsidy                                   |   |                     | -        |   |                                                     |   | - |   |   |   | (50,038 | ) |
| Net cash used by operating activities                            |   |                     | (27,643  | )      |                                                     |   | (68,592 | ) |   |   | (421,156 | ) |
|                                                             |   |                     |     |   |                                                     |   |   |   |   |   |   |   |
| Investing Activities                                             |   |                     |     |   |                                                     |   |   |   |   |   |   |   |
| Purchase of fixed assets                                         |   |                     | -        |   |                                                     |   | (1,832 | ) |   |   | (710,118 | ) |
| Loan to shareholders                                             |   |                     | -        |   |                                                     |   | - |   |   |   | (24,659 | ) |
| Repay of loan from shareholders                                  |   |                     | -        |   |                                                     |   | - |   |   |   | 24,659 |   |
| Net cash (used) by investing activities                          |   |                     | -        |   |                                                     |   | (1,832 | ) |   |   | (710,118 | ) |
|                                                             |   |                     |     |   |                                                     |   |   |   |   |   |   |   |
| Financing Activities                                             |   |                     |     |   |                                                     |   |   |   |   |   |   |   |
| Distribution to shareholders                                     |   |                     | -        |   |                                                     |   | - |   |   |   | (24,994 | ) |
| Capital contribution                                             |   |                     | -        |   |                                                     |   | - |   |   |   | 274,103 |   |
| Proceeds from government subsidy                                 |   |                     | -        |   |                                                     |   | - |   |   |   | 99,130 |   |
| Proceeds from shareholder loans                                  |   |                     | 80,262   |   |                                                     |   | 126,080 |   |   |   | 820,964 |   |
| Repay of loan to shareholders                                    |   |                     | -        |   |                                                     |   | - |   |   |   | (12,299 | ) |
| Net cash provided by financing activities                        |   |                     | 80,262   |   |                                                     |   | 126,080 |   |   |   | 1,156,904 |   |
|                                                             |   |                     |     |   |                                                     |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash                          |   |                     | 247      |   |                                                     |   | (38,994 | ) |   |   | 31,034 |   |
|                                                             |   |                     |     |   |                                                     |   |   |   |   |   |   |   |
| Increase(decrease)  in cash                            |   |                     | 52,866   |   |                                                     |   | 16,662 |   |   |   | 56,664 |   |
| Cash at beginning of period                                      |   |                     | 3,798    |   |                                                     |   | 7,380 |   |   |   | - |   |
| Cash at end of period                                            |   | $                        | 56,664   |   |                                                     | $      | 24,042 |   |   | $ | 56,664 |   |
|                                                             |   |                     |     |   |                                                     |   |   |   |   |   |   |   |
| Supplemental Cash Flow Information:                              |   |                     |     |   |                                                     |   |   |   |   |   |   |   |
| Interest received (paid) during the year                         |   | $                        | -        |   |                                                     | $      | 7 |   |   | $ | 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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|           |   | June 30, 2009 |    |   | December 31, 2008 |   |
|----------------|--------|---------------|---------|--------|-------------------|--------|
|           |   |          |    |   |              |   |
| Raw Material   |   | $             | 38,284  |   |              | $      | 38,330 |   |
| Finished Goods |   |          | 70,078  |   |              |   | 70,163 |   |
|           |   | $             | 108,362 |   |              | $      | 108,493 |   |

|                           |   | June 30, 2009 |     |   | December 31, 2008 |   |
|--------------------------------|--------|---------------|----------|--------|-------------------|--------|
|                           |   |          |     |   |              |   |
| Machinery and Equipment        |   | $             | 335,460  |   |              | $      | 335,863 |   |
| Office Equipment               |   |          | 7,667    |   |              |   | 7,676 |   |
| Vehicle                        |   |          | 6,881    |   |              |   | 6,889 |   |
| Construction in Progress       |   |          | 136,720  |   |              |   | 136,884 |   |
|                           |   |          | 486,728  |   |              |   | 487,312 |   |
| Less: Accumulated Depreciation |   |          | (108,429 | )      |              |   | (91,256 | ) |
|                           |   | $             | 378,299  |   |              | $      | 396,056 |   |

| Machinery and Equipment |  10% |
|-------------------------|-----------|
| Office Equipment        |  20% |
| Vehicle                 |  10% |

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|          |   | June 30, 2009 |    |   | December 31, 2008 |   |
|---------------|--------|---------------|---------|--------|-------------------|--------|
| Li, Yukun     |   | $             | 22,296  |   |              | $      | 22,323 |   |
| Li, Guomin    |   |          | 271,986 |   |              |   | 191,697 |   |
| Zhou, Qingwei |   |          | 1,923   |   |              |   | 1,923 |   |
|          |   | $             | 296,205 |   |              | $      | 215,943 |   |

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

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| 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 4. CONTROLS AND PROCEDURES

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PART II – OTHER INFORMATION

| 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.                                                                        |
|-----------------------|-----------------------------------------------------------------------------------------------------|
|                  |                                                                                                |
| Date: August 14, 2009 | By: /s/ Guomin Li                                                                                   |
|                  | Guomin Li                                                                                           |
|                  | President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Director |