UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-QSB

(Mark One)

|X|   Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
      of 1934

      For the quarterly period ended March 31, 2006

|_|   Transition report under Section 13 or 15(d) of the Exchange Act

      For the transition period from _____________ to _____________

                        Commission File Number 000-50980

                     China Unistone Acquisition Corporation
                     --------------------------------------
        (Exact Name of Small Business Issuer as Specified in Its Charter)

            Delaware                                              20-1098541
            --------                                              ----------
(State or other Jurisdiction of                                (I.R.S. Employer
 Incorporation or Organization)                              Identification No.)

               105 West 13th Street, Suite 7A, New York, NY 10011
               --------------------------------------------------
                     (Address of Principal Executive Office)

                                 (646) 383-4832
                                 --------------
                (Issuer's Telephone Number, Including Area Code)

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

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

      As of May 19, 2006, 4,200,000 shares of common stock, par value $.0001 per
share, were issued and outstanding.

      Transitional Small Business Disclosure Format (check one): Yes |_| No |X|

<PAGE>

                                                                            Page
                                                                            ----

Part I:  Financial Information:

        Item 1 -Financial Statements (Unaudited):

           Balance Sheet                                                      3

           Statements of Operations                                           4

           Statements of Stockholders' Equity                                 5

           Statements of Cash Flows                                           6

           Notes to Financial Statements                                      7

        Item 2 - Management's Discussion and Analysis or
                 Plan of Operation                                           12

        Item 3 - Controls and Procedures                                     14

Part II.  Other Information

        Item 2 - Unregistered Sales of Equity Securities and
                 Use of Proceeds                                             15

        Item 6 - Exhibits                                                    15

Signatures                                                                   16


                                       2
<PAGE>

                                          China Unistone Acquisition Corporation
                                        (a corporation in the development stage)

                                                         Condensed Balance Sheet
================================================================================

<TABLE>
<CAPTION>
                                                                                                  March 31,            December 31,
                                                                                                     2006                  2005
                                                                                                 (unaudited)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                              <C>                   <C>
ASSETS
Current assets:
      Cash                                                                                       $     15,663          $     81,161
      Investments held in Trust Fund - at fair market value (Note 2)                               18,321,402            18,139,962
------------------------------------------------------------------------------------------------------------------------------------
           Total current liabilities                                                               18,337,065            18,221,123

      Deferred Tax Asset                                                                              190,762               141,159
------------------------------------------------------------------------------------------------------------------------------------
Total assets                                                                                     $ 18,527,827          $ 18,362,282
====================================================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
        Accrued expenses                                                                         $    206,250          $     20,000
        Deferred Interest income                                                                      145,003               108,688
        Taxes payable                                                                                 273,693               188,225
        Note Payable - stockholder                                                                     29,980                    --
------------------------------------------------------------------------------------------------------------------------------------
           Total current liabilities                                                                  654,926               316,913
------------------------------------------------------------------------------------------------------------------------------------

Common stock, subject to possible conversion,
    689,655 shares at conversion value (Note 2)                                                     3,517,241             3,517,241
------------------------------------------------------------------------------------------------------------------------------------

Commitment and Contingency

Stockholders' equity (Notes 2, 3 and 4)
      Preferred stock, $.0001 par value, Authorized                                                        --                    --
            1,000,000 shares; none issued
      Common stock, $.0001 par value
           Authorized 20,000,000 shares
           Issued and outstanding 4,200,000 shares                                                        420                   420
               (which includes 689,655 subject to possible conversion)
      Additional paid-in capital                                                                   14,780,819            14,780,819
      Deficit accumulated during the development stage                                               (425,579)             (253,111)
------------------------------------------------------------------------------------------------------------------------------------
         Total stockholders' equity                                                                14,355,660            14,528,128
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity                                                       $ 18,527,827          $ 18,362,282
====================================================================================================================================
                                                                                        See Notes to Unaudited Financial Statements.
</TABLE>


                                       3
<PAGE>

                                          China Unistone Acquisition Corporation
                                        (a corporation in the development stage)

                                               Condensed Statement of Operations
                                                                     (unaudited)
================================================================================

<TABLE>
<CAPTION>
                                                                                                                     For the Period
                                                                       For the Three          For the Three         from May 7, 2004
                                                                        Months Ended          Months Ended           (inception) to
                                                                       March 31, 2005        March 31, 2006          March 31, 2006
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                     <C>                    <C>                    <C>
Income:
     Interest Income                                                    $    81,031            $   145,441            $   586,979
------------------------------------------------------------------------------------------------------------------------------------
Expenses:
      Investment advisory                                                     7,000                 10,942                 68,342
      Tax expense                                                            33,511                  5,813                 65,904
      Travel and entertainment                                               15,925                 44,329                209,579
       Accounting expenses                                                       --                 28,894                118,826
       Rent expense                                                          22,500                 22,500                121,500
      Insurance expense                                                      10,500                 11,494                 65,725
      Legal expense                                                              --                151,683                203,151
      Formation, operating and bank costs                                     3,235                 12,201                 43,955
------------------------------------------------------------------------------------------------------------------------------------
                Total Expenses                                               92,671                287,856                896,982
------------------------------------------------------------------------------------------------------------------------------------

Loss before provision for income taxes                                  $   (11,640)           $  (142,415)           $  (310,003)
------------------------------------------------------------------------------------------------------------------------------------

       Provision for income taxes                                                --                 30,053                115,576

Net loss for the period                                                 $   (11,640)           $  (172,468)           $  (425,579)
====================================================================================================================================

Net loss per share basic and diluted                                    $     (0.00)           $     (0.04)           $     (0.16)

Weighted average shares outstanding                                       4,200,000              4,200,000              2,654,414
------------------------------------------------------------------------------------------------------------------------------------
                                                                                       See Notes to Unaudited Financial Statements
</TABLE>


                                       4
<PAGE>

                                          China Unistone Acquisition Corporation
                                        (a corporation in the development stage)

                                     Condensed Statement of Stockholders' Equity
================================================================================

<TABLE>
<CAPTION>
                                                                                                      Deficit
                                                                                                    Accumulated
                                                             Common Stock          Addition         During the
                                                        ---------------------       paid-in         Development
                                                         Shares        Amount       capital            Stage             Total
                                                        --------------------------------------------------------------------------
<S>                                                     <C>            <C>        <C>                <C>              <C>
Balance, May 7, 2004 (inception)                               --      $  --      $         --       $       --       $         --

Sale of 750,000 shares of common                          750,000      $  75      $     24,925               --       $     25,000
   stock to initial stockholders as of
   May 7, 2004 at $.0333 per share
Sale of 3,450,000 units, net of                         3,450,000        345        18,273,035               --         18,273,380
   underwriters' discount and offering
   expenses (includes 689,655 shares
   subject to possible conversion)
Proceeds subject to possible conversion of                     --         --        (3,517,241)              --         (3,517,241)
   689,655 shares

Proceeds from issuance of option                               --         --               100               --                100

Net loss for the period                                        --         --                --         (122,930)          (122,930)
                                                        ---------      -----      ------------       ----------       ------------

Balance, December 31, 2004                              4,200,000      $ 420      $ 14,780,819       $ (122,930)      $ 14,658,309
                                                        =========      =====      ============       ==========       ============

Net loss for the period                                        --         --                --         (130,181)          (130,181)
                                                        ---------      -----      ------------       ----------       ------------

Balance, December 31, 2005                              4,200,000      $ 420      $ 14,780,819       $ (253,111)      $ 14,528,128
                                                        =========      =====      ============       ==========       ============

Net loss for the three months ended                            --         --                --         (172,468)          (172,468)
   March 31, 2006 (unaudited)
                                                        ---------      -----      ------------       ----------       ------------

Balance, March 31, 2006 (unaudited)                     4,200,000      $ 420      $ 14,780,819       $ (425,579)      $ 14,355,660
                                                        =========      =====      ============       ==========       ============
                                                        ==========================================================================
                                                                                      See Notes to Unaudited Financial Statements.
</TABLE>


                                       5
<PAGE>

                                          China Unistone Acquisition Corporation
                                        (a corporation in the development stage)

                                               Condensed Statement of Cash Flows
                                                                     (unaudited)
================================================================================

<TABLE>
<CAPTION>
                                                                                                                     For the period
                                                                           For the Three        For the Three       from May 7, 2004
                                                                           Months Ended         Months Ended         (inception) to
                                                                          March 31, 2005       March 31, 2006        March 31, 2006
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                       <C>                   <C>                   <C>
Cash flow from operating activities
      Net loss                                                            $    (11,640)         $   (172,468)         $   (425,579)
      Adjustments to reconcile net loss
        to net cash used in operating activities
        Deferred taxes                                                              --               (49,603)             (190,762)
      Accrued interest on investments                                         (100,915)             (181,440)             (726,402)
      Decrease in prepaid expenses                                              13,500                    --                    --
      Increase in income tax payable                                           (21,960)               85,468               273,693
      Increase in deferred interest income                                      19,884                36,315               145,003
      (Decrease) Increase in accrued expenses                                   (8,567)              186,250               206,250
------------------------------------------------------------------------------------------------------------------------------------
             Net cash used in operating activities                            (109,698)              (95,478)             (717,797)
------------------------------------------------------------------------------------------------------------------------------------

Cash flows from investing activities
      Investment in Trust Fund                                                      --                    --           (17,595,000)
------------------------------------------------------------------------------------------------------------------------------------
              Net cash used in investing activities                                 --                    --           (17,595,000)
------------------------------------------------------------------------------------------------------------------------------------

Cash flows from financing activities
      Gross proceeds of public offering                                             --                    --            20,700,000
       Proceeds from sale of shares of common stock                                 --                    --                25,000
       Proceeds from issuance of option                                             --                    --                   100
       Proceeds from stockholder loans                                              --                29,980                99,980
       Payments of stockholder loan                                                 --                    --               (70,000)
       Payment of costs of public offering                                    (124,781)                   --            (2,426,620)
------------------------------------------------------------------------------------------------------------------------------------
Net cash (used in) provided by financing activities                           (124,781)               29,980            18,328,460
------------------------------------------------------------------------------------------------------------------------------------

Net (decrease) increase in cash                                               (234,479)              (65,498)               15,663
Cash at beginning of the period                                                696,747                81,161                    --
------------------------------------------------------------------------------------------------------------------------------------
Cash at end of the period                                                 $    462,268          $     15,663          $     15,663
====================================================================================================================================
Supplementary information:
Cash paid for taxes                                                                 --                    --          $     98,549
====================================================================================================================================
                                                                                        See Notes to Unaudited Financial Statements.
</TABLE>


                                       6
<PAGE>

                                          China Unistone Acquisition Corporation
                                        (a corporation in the development stage)

                                         Notes to Unaudited Financial Statements

1. Basis of Presentation      The financial statements at March 31, 2006 and for
                              the periods ended March 31, 2006 are unaudited. In
                              the opinion of management, all adjustments
                              (consisting of normal accruals) have been made
                              that are necessary to present fairly the financial
                              position of China Unistone Acquisition Corporation
                              (the "Company") as of March 31, 2006, the results
                              of its operations for the three month period ended
                              March 31, 2006 and the three month period ended
                              March 31, 2005, the results of its operations and
                              cash flows for the three month period ended March
                              31, 2006, the three month period ended March 31,
                              2005 and the period from May 7, 2004 (inception)
                              through March 31, 2006 and its stockholders'
                              equity for the three months ended March 31, 2006.
                              Operating results for the interim period presented
                              are not necessarily indicative of the results to
                              be expected for a full year.

                              The statements and related notes have been
                              prepared pursuant to the rules and regulations of
                              the U.S. Securities and Exchange Commission.
                              Accordingly, certain information and footnote
                              disclosures normally included in financial
                              statements prepared in accordance with generally
                              accepted accounting principles have been omitted
                              pursuant to such rules and regulations. These
                              financial statements should be read in conjunction
                              with the financial statements that were included
                              in the Company's Annual Report on Form 10-KSB for
                              the period ended December 31, 2005. The December
                              31, 2005 balance sheet has been derived from the
                              audited financial statements.

                              The Company maintains cash in bank deposit
                              accounts which, at times, exceed federally insured
                              limits. The Company has not experienced any loses
                              on these amounts.

                              The Company was incorporated in May 7, 2004 as a
                              blank check company whose objective is to acquire
                              an operating business that has its primary
                              operating facilities located in the People's
                              Republic of China.

2. Organization and           The registration statement for the Company's
   Business Operations        initial public offering ("Offering") was declared
                              effective November 18, 2004. The Company
                              consummated the offering on November 24, 2004 and
                              received net proceeds of approximately $18,273,000
                              (Note 3). The Company's management has broad
                              discretion with respect to the specific
                              application of the net proceeds of this Offering,
                              although substantially all of the net proceeds of
                              this Offering are intended to be generally applied
                              toward consummating a business combination with a
                              operating business that has its primary operating
                              facilities located in the People's Republic of
                              China ("Business Combination"). Originally, an
                              amount of approximately $17,595,000 of the net
                              proceeds was being held in an interest-bearing
                              trust account ("Trust Fund") until the


                                       7
<PAGE>

                                          China Unistone Acquisition Corporation
                                        (a corporation in the development stage)

                                         Notes to Unaudited Financial Statements

                              earlier of (i) the consummation of its first
                              Business Combination or (ii) liquidation of the
                              Company. Under the agreement governing the Trust
                              Fund, funds will only be invested in United States
                              government securities (Treasury Bills) with a
                              maturity of 180 days or less. This amount has been
                              invested in a Treasury Bill. The Treasury Bill has
                              been accounted for as a trading security, which is
                              recorded at its market value of approximately
                              $18,321,000 at March 31, 2006. The remaining net
                              proceeds may be used to pay for business, legal
                              and accounting due diligence on prospective
                              acquisitions and continuing general and
                              administrative expenses.

                              The Company has signed a definitive agreement for
                              the acquisition of a target business (see Note 5)
                              and will submit such transaction for stockholder
                              approval. In the event that stockholders owning
                              20% or more of the outstanding stock excluding,
                              for this purpose, those persons who were
                              stockholders prior to the Offering, vote against
                              the Business Combination, the Business Combination
                              will not be consummated. All of the Company's
                              stockholders prior to the Offering, including all
                              of the officers and directors of the Company
                              ("Initial Stockholders"), have agreed to vote
                              their 750,000 founding shares of common stock in
                              accordance with the vote of the majority in
                              interest of all other stockholders of the Company
                              ("Public Stockholders") with respect to the
                              Business Combination. After consummation of the
                              Business Combination, all of these voting
                              safeguards will no longer be applicable.

                              With respect to a Business Combination which if
                              approved and consummated, any Public Stockholder
                              who voted against the Business Combination may
                              demand that the Company convert his or her shares.
                              The per share conversion price will equal the
                              amount in the Trust Account as of the record date
                              for determination of stockholders entitled to vote
                              on the Business Combination divided by the number
                              of shares of common stock held by Public
                              Stockholders at the consummation of the Offering.
                              Accordingly, Public Stockholders holding 19.99% of
                              the aggregate number of shares owned by all Public
                              Stockholders may seek conversion of their shares
                              in the event of a Business Combination. Such
                              Public Stockholders are entitled to receive their
                              per share interest in the Trust Account computed
                              without regard to the shares held by Initial
                              Stockholders. Accordingly, a portion of the net
                              proceeds of the Offering (19.99% of the amount
                              originally held in the Trust Account) has been
                              classified as common stock subject to possible
                              conversion in the accompanying March 31, 2006
                              balance sheet and 19.99% of the related interest
                              earned on the Treasury Bill has been recorded as
                              deferred interest.

                              The Company's Certificate of Incorporation
                              provides for mandatory


                                       8
<PAGE>

                                          China Unistone Acquisition Corporation
                                        (a corporation in the development stage)

                                         Notes to Unaudited Financial Statements

                              liquidation of the Company in the event that the
                              Company does not consummate a Business Combination
                              within 18 months from the date of the consummation
                              of the Offering, or 24 months from the
                              consummation of the Offering if certain extension
                              criteria have been satisfied. In the event of
                              liquidation, it is likely that the per share value
                              of the residual assets remaining available for
                              distribution (including Trust Account assets) will
                              be less than the initial public offering price per
                              share in the Offering (assuming no value is
                              attributed to the Warrants contained in the Units
                              sold in the Offering discussed in Note 3).

                              In December 2004, the Financial Accounting
                              Standards Board issued Statement of Financial
                              Accounting Standards No. 123 (revised 2004) ("SFAS
                              123(R)"), "Share Based Payment". SFAS 123(R)
                              requires all share-based payments to employees,
                              including grants of employee stock options, to be
                              recognized in the financial statements based on
                              their fair values. The Company is required to
                              adopt SFAS 123(R) effective January 1, 2006. The
                              Company does not believe that the adoption of SFAS
                              123(R) will have a significant impact on its
                              financial condition or results of operations.

3. Initial Public Offering    On November 24, 2004, the Company sold 3,450,000
                              units ("Units") in the Offering, which included
                              all of the 450,000 units subject to the
                              underwriters' overallotment option. Each Unit
                              consists of one share of the Company's common
                              stock, $.0001 par value, and two Redeemable Common
                              Stock Purchase Warrants ("Warrants"). Each Warrant
                              will entitle the holder to purchase from the
                              Company one share of common stock at an exercise
                              price of $5.00 commencing the later of the
                              completion of a Business Combination with a target
                              business or one year from the effective date of
                              the Offering and expiring five years from the date
                              of the prospectus. The Warrants will be redeemable
                              at a price of $.01 per Warrant upon 30 days'
                              notice after the Warrants become exercisable, only
                              in the event that the last sale price of the
                              common stock is at least $8.50 per share for any
                              20 trading days within a 30 trading day period
                              ending on the third day prior to the date on which
                              notice of redemption is given. In connection with
                              this Offering, the Company issued, for $100, an
                              option to the representative of the underwriters
                              to purchase 150,000 Units at an exercise price of
                              $9.90 per Unit. In connection with this Offering,
                              the Company also issued an option ("Option"), for
                              $100, to EarlyBirdCapital, Inc., the
                              representative of the underwriters, to purchase
                              150,000 Units at an exercise price of $9.90 per
                              Unit. The Company accounted for the fair value of
                              the Option, inclusive of the receipt of the $100
                              cash payment, as an expense of the Offering


                                       9
<PAGE>

                                          China Unistone Acquisition Corporation
                                        (a corporation in the development stage)

                                         Notes to Unaudited Financial Statements

                              resulting in a charge directly to stockholders'
                              equity. The Company estimates that the fair value
                              of the Option is approximately $309,000 ($2.06 per
                              Unit) using a Black-Scholes option-pricing model.
                              The fair value of the option granted to
                              EarlyBirdCapital was estimated as of the date of
                              grant using the following assumptions: (1)
                              expected volatility of 51.36%, (2) risk-free
                              interest rate of 3.48% and (3) expected life of 5
                              years. The Option may be exercised for cash or on
                              a "cashless" basis, at the holder's option, such
                              that the holder may use the appreciated value of
                              the Option (the difference between the exercise
                              prices of the Option and the underlying Warrants
                              and the market price of the Units and underlying
                              securities) to exercise the option without the
                              payment of any cash. In addition, the Warrants
                              underlying such Units are exercisable at $6.25 per
                              share.

4. Note Payable,              During the three months ended March 31, 2006, the
   Stockholder                Company issued a $29,980 unsecured promissory note
                              to an Initial Stockholder, who is also an officer.
                              The note is repayable following the consummation
                              of the Business Combination.

5. Common Stock               The Company originally issued 875,000 shares of
                              common stock to the Initial Stockholders for
                              $25,000. In July, 2004, the Initial Stockholders
                              contributed an aggregate of 125,000 shares of
                              common stock, at no cost, to the Company which
                              were retired upon receipt. All references in the
                              accompanying financial statements to the numbers
                              of shares have been retroactively restated to
                              reflect the stock split.

                              As of March 31, 2006, 7,350,000 shares of common
                              stock were reserved for issuance upon exercise of
                              redeemable warrants and underwriters' unit
                              purchase option.

6. Proposed Business          On December 20, 2005, the Company entered into a
   Combination                securities purchase agreement with the
                              shareholders of two companies, Ahead Billion
                              Venture Limited ("Sihitech BVI") and Port Wing
                              Development Company Limited (e-Channels BVI"),
                              both organized under the laws of the British
                              Virgin Islands. Sihitech BVI, at the closing of
                              the securities purchase agreement, will own all
                              the equity interests of Beijing Sihitech Co., Ltd.
                              and its subsidiaries and controlled companies
                              ("Sihitech"), and e-Channels BVI will own all the
                              equity interests of Beijing e-Channels Century
                              Technology Co., Ltd. ("e-Channels"). The selling
                              stockholders are six British Virgin Islands
                              companies, three of which hold all the outstanding
                              stock of Sihitech BVI and three of which hold all
                              the outstanding stock of e-Channels BVI. These
                              stock holding companies are owned by the original
                              investors and management, and their affiliates, of
                              Sihitech and e-Channels, respectively. The
                              acquisition of Sihitech BVI and e-Channels BVI
                              will be through Yucheng Technologies Limited


                                       10
<PAGE>

                                          China Unistone Acquisition Corporation
                                        (a corporation in the development stage)

                                         Notes to Unaudited Financial Statements

                              ("Yucheng"), a British Virgin Islands company, and
                              a wholly owned subsidiary of the Company.

                              At the closing, subject to adjustments and
                              holdback amounts, the selling stockholders of
                              Sihitech BVI will be paid $2,731,884 or cash in
                              the amount equal to the total current assets minus
                              the total current liabilities of Sihitech at
                              closing, whichever is lower, and an aggregate of
                              3,754,484 ordinary shares of Yucheng. At the
                              closing, subject to adjustments and holdback
                              amounts, the selling stockholders of e-Channels
                              will be paid $1,268,116 or cash in the amount
                              equal to the total current assets minus the total
                              current liabilities of e-Channels, whichever is
                              lower, and an aggregate of 1,573,320 ordinary
                              shares of Yucheng. Of the cash portion of the
                              aggregate proceeds, $250,000 will be held back for
                              one year to secure certain indemnification
                              obligations of the selling stockholders. Of the
                              aggregate number of shares to be issued in the
                              acquisition, a total of 1,443,384 are contingent
                              upon the audited 2005 and 2006 financial
                              performances of e-Channels and Sihitech. As
                              additional purchase price, the selling
                              stockholders may receive up to an aggregate of
                              $10,000,000 and up to 952,832 ordinary shares if
                              certain performance and other conditions are met.

                              Together, Sihitech and e-Channels provide call
                              center platform, web banking software and other IT
                              solutions and services to top-tier local banks in
                              China. Both companies have substantial reputations
                              within their industry segments with proven
                              management and a successful operating track
                              record. Together they have six operating
                              subsidiaries which include Sihitech, e-Channels,
                              Beijing Sihitech Software, Shanghai Sihitech,
                              Shanghai Sihitech Software and Guangzhou Sihitech,
                              two representative offices in Fuzhou and Xian, and
                              a combined employee staff of 390 employees, 85% of
                              which are software developers. Each of Sihitech
                              and e-Channels operate in the People Republic of
                              China, and are formed under Chinese law.

                              As part of the acquisition of Sihitech BVI and
                              e-Channels BVI, the Company will merge with and
                              into Yucheng resulting in Yucheng being the public
                              reporting company and governed by the laws of the
                              British Virgin Islands.

                              The acquisitions by and the merger with Yucheng
                              are both subject to approval by the Company's
                              stockholders, and it is expected that the approval
                              will be sought during the second quarter of 2006
                              at a special meeting called for that purpose.
                              Consummation of the transactions will occur
                              promptly thereafter, if approved.


                                       11
<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

      The following discussion should be read in conjunction with the Company's
Consolidated Financial Statements and footnotes thereto contained in this
report.

Forward Looking Statements

      The statements discussed in this Report include forward looking statements
that involve risks and uncertainties detailed from time to time in the Company's
reports filed with the Securities and Exchange Commission.

      We were formed on May 7, 2004, to serve as a vehicle to effect a merger,
capital stock exchange, asset acquisition or other similar business combination
with an operating business that has its primary operating facilities located in
the People's Republic of China. We intend to utilize cash derived from the
proceeds of our recently completed public offering, our capital stock, debt or a
combination of cash, capital stock and debt, in effecting a business
combination.

Recent Developments

      Effective as of December 20, 2005, we entered into a securities purchase
agreement with Yucheng, Chih T Cheung, James Z. Li, James Preissler, Sihitech
Company Limited, Mega Capital Group Services Limited, Profit Loyal Consultants
Limited, Elite Concord International Limited, China Century Holdings Group
Limited, and Shinning Growth Investment Group Limited. Pursuant to the
agreement, we established a wholly owned subsidiary, Yucheng Technologies
Limited, under the laws of the British Virgin Islands, and will merge with and
into Yucheng. Yucheng will be the surviving entity, and our separate corporate
existence will cease at the effective time of the merger. Simultaneously with
the merger, Yucheng will purchase the issued and outstanding stock of Sihitech
BVI and e-Channels BVI, from the six corporate stockholders of those companies,
(Sihitech Company Limited, Mega Capital Group Services Limited, Profit Loyal
Consultants Limited, Elite Concord International Limited, China Century Holdings
Group Limited, and Shinning Growth Investment Group Limited) which in turn will
own the outstanding equity interests of Sihitech and its subsidiaries and
e-Channels, the latter of which operate in the PRC.

      For a more complete discussion of our proposed business combination,
including the risk that are applicable to us with respect to our acquisition of
Sihitech, see our Current Report on Form 8-K dated December 20, 2005 and filed
with the SEC on December 27, 2005 and our preliminary joint proxy
statement/prospectus for our Special Meeting of Stockholders filed with the SEC
on March 29, 2006.

Results of Operations

      For the three months ended March 31, 2006, we had a net loss of $172,468,
attributable to $22,500 expense for rent, $35,866 expense for taxes, $191,519
expense for professional fees, $11,494 expense for officer liability insurance,
$44,329 expense for travel and $12,201 for other expenses. Interest income on
the trust fund investment and short-term investments for the three months ended
March 31, 2006, excluding deferred interest, was $145,441.

      For the three months ended March 31, 2005, we had a net loss of $11,640,
attributable to $22,500 expense for rent, $33,511 expense for taxes, $7,000
expense for professional fees, $10,500 expense for officer liability insurance,
$15,925 expense for travel and $3,235 for other expenses. Interest income on the
trust fund investment and short-term investments for the three months ended
March 31, 2005 was $81,031.


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<PAGE>

      For the period from May 7, 2004 (inception) through March 31, 2006, we had
a net loss of $425,579, consisting of $121,500 expense for rent, $181,480 for
taxes, $390,319 for professional fees, $65,725 expense for officer liability
insurance, $209,579 for travel expenses and $43,955 for other expenses. Interest
income on the trust fund investment, excluding deferred interest, for the period
from May 7, 2004 (inception) through March 31, 2006 was $586,979.

      We consummated our initial public offering on November 24, 2004. Gross
proceeds from our initial public offering, including the full exercise of the
underwriters' over-allotment option, were $20,700,000. We paid a total of
$1,656,000 in underwriting discounts and commissions, and approximately $771,000
was paid for costs and expenses related to the offering, including $360,000 for
the underwriters' non-accountable expense allowance of 2% of the gross proceeds.
After deducting the underwriting discounts and commission and the offering
expenses, the total net proceeds to us from the offering were approximately
$18,273,000, of which $17,595,000 was originally deposited into the trust (or
$5.10 per share sold in the offering). This amount has been invested in a
Treasury Bill. The Treasury Bill has been accounted for as a trading security,
which is recorded as its market value of approximately $17,981,000 at March 31,
2006. The remaining proceeds are available to be used by us to provide for
business, legal and accounting due diligence on prospective acquisitions and
continuing general and administrative expenses. We will use substantially all of
the net proceeds of this offering to acquire a target business, including
identifying and evaluating prospective acquisition candidates, selecting the
target business, and structuring, negotiating and consummating the business
combination. To the extent that our capital stock is used in whole or in part as
consideration to effect a business combination, the proceeds held in the trust
fund, as well as any other net proceeds not expended will be used to finance the
operations of the target business. We believe we will have sufficient available
funds outside of the trust fund to operate through November 24, 2006, assuming
that a business combination is not consummated during that time. From November
24, 2004 through November 24, 2006, we anticipate approximately $180,000 for the
administrative fee payable to BZB Leasing, Inc. ("BZB") ($7,500 per month for
two years), $150,000 of expenses for legal, accounting and other expenses
attendant to the due diligence investigations, structuring and negotiating of a
business combination, $50,000 of expenses for the due diligence and
investigation of a target business, $40,000 of expenses in legal and accounting
fees relating to our SEC reporting obligations and $80,000 for general working
capital that will be used for miscellaneous expenses and reserves, including
approximately $42,000 for director and officer liability insurance premiums. We
may need to raise additional funds through a private offering of debt or equity
securities if such funds are required to consummate a business combination that
is presented to us. We would only consummate such a financing simultaneously
with the consummation of a business combination.

      Commencing on November 18, 2004 and ending upon the acquisition of a
target business, we incur a fee from BZB of $7,500 per month for providing us
with office space and certain office and secretarial services. In addition, in
June 2004, Messrs. Cheung, Li and Preissler advanced an aggregate of $70,000 to
us for payment on our behalf of offering expenses. These loans were repaid
following our initial public offering from the proceeds of the offering.

      In connection with our initial public offering, we issued an option, for
$100, to EarlyBirdCapital to purchase 150,000 units at an exercise price of
$9.90 per unit, with each unit consisting of one share of common stock and two
warrants. The warrants underlying such units are exercisable at $6.25 per share.
We accounted for the fair value of the option, inclusive of the receipt of the
$100 cash payment, as an expense of the public offering resulting in a charge
directly to stockholders' equity. We estimated that the fair value of this
option was approximately $309,000 ($2.06 per Unit) using a Black-Scholes
option-pricing model. The fair value of the option granted to EarlyBirdCapital
was estimated as of the date of grant using the following assumptions: (1)
expected volatility of 51.36%, (2) risk-free interest rate of 3.48% and (3)
expected life of 5 years. The option may be exercised for cash or on a
"cashless" basis, at the holder's option, such that the


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<PAGE>

holder may use the appreciated value of the option (the difference between the
exercise prices of the option and the underlying warrants and the market price
of the units and underlying securities) to exercise the option without the
payment of any cash.

ITEM 3. CONTROLS AND PROCEDURES.

      Disclosure controls and procedures are controls and other procedures that
are designed to ensure that information required to be disclosed in company
reports filed or submitted under the Securities Exchange Act of 1934 (the
"Exchange Act") is recorded, processed, summarized and reported, within the time
periods specified in the Securities and Exchange Commission's rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed in
company reports filed or submitted under the Exchange Act is accumulated and
communicated to management, including our chief executive officer and treasurer,
as appropriate to allow timely decisions regarding required disclosure.

      As required by Rules 13a-15 and 15d-15 under the Exchange Act, our chief
executive officer and chief financial officer carried out an evaluation of the
effectiveness of the design and operation of our disclosure controls and
procedures as of March 31, 2006. Based upon their evaluation, they concluded
that our disclosure controls and procedures were effective.

      Our internal control over financial reporting is a process designed by, or
under the supervision of, our chief executive officer and chief financial
officer and effected by our board of directors, management and other personnel,
to provide reasonable assurance regarding the reliability of our financial
reporting and the preparation of our financial statements for external purposes
in accordance with generally accepted accounting principles. Internal control
over financial reporting includes policies and procedures that pertain to the
maintenance of records that in reasonable detail accurately and fairly reflect
the transactions and dispositions of our assets; provide reasonable assurance
that transactions are recorded as necessary to permit preparation of our
financial statements in accordance with generally accepted accounting
principles, and that our receipts and expenditures are being made only in
accordance with the authorization of our board of directors and management; and
provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could have a
material effect on our financial statements.

      During the most recently completed fiscal quarter, there has been no
change in our internal control over financial reporting that has materially
affected, or is reasonably likely to materially affect, our internal control
over financial reporting.


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<PAGE>

                                    PART II.

                                OTHER INFORMATION

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

      On November 24, 2004, we consummated our initial public offering of
3,450,000 Units, including the full exercise of the underwriters' over-allotment
option of 450,000 units, with each unit consisting of one share of our common
stock and two warrants, each to purchase one share of our common stock at an
exercise price of $5.00 per share. The managing underwriter in the offering was
EarlyBirdCapital, Inc. The securities sold in the offering were registered under
the Securities Act of 1933 on a registration statement on Form S-1 (No.
333-117051). The Securities and Exchange Commission declared the registration
statement effective on October 27, 2004.

      We paid a total of $1,800,000 in underwriting discounts and commissions,
and approximately $771,000 has been paid for costs and expenses related to the
offering, including $360,000 for the underwriters' non-accountable expense
allowance of 2% of the gross proceeds.

      After deducting the underwriting discounts and commissions and the
offering expenses, the total net proceeds to us from the offering were
approximately $18,273,000, of which $17,595,000 was originally deposited into a
trust fund (or $5.10 per share sold in the offering). This amount has been
invested in a Treasury Bill. The Treasury Bill has been accounted for as a
trading security, which is recorded as its market value of approximately
$18,321,000 at March 31, 2006. The remaining proceeds are available to be used
to provide for business, legal and accounting due diligence on prospective
business combinations and continuing general and administrative expenses.

      For a description of the use of the proceeds generated in our initial
public offering, see Part I, Item 2 of this Form 10-QSB.

ITEM 6: EXHIBITS

      (a)   Exhibits:

            31.1 - Section 302 Certification by CEO

            32.2 - Section 302 Certification by CFO

            32.1 - Section 906 Certification by CEO

            32.2 - Section 906 Certification by CFO


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<PAGE>

                                   SIGNATURES

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

                                           CHINA UNISTONE ACQUISITION
                                             CORPORATION

Dated: May 22, 2006

                                           /s/ James Z. Li
                                           ---------------
                                           James Z. Li
                                           Chief Executive Officer

                                           /s/ James Preissler
                                           -------------------
                                           James Preissler
                                           Chief Financial Officer and Secretary


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