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 September 30, 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 November 20, 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

           Statement of Operations                                            4

           Statement of Stockholders' Equity                                  5

           Statement of Cash Flows                                            6

           Notes to Financial Statements                                      7

        Item 2 - Management's Discussion and Analysis or
                 Plan of Operation                                           13

        Item 3 - Controls and Procedures                                     15

Part II.  Other Information

        Item 2 - Unregistered Sales of Equity Securities and
                 Use of Proceeds                                             17

        Item 6 - Exhibits                                                    17

Signatures                                                                   18


                                       2
<PAGE>

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

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

<TABLE>
<CAPTION>
                                                                                                 September 30,         December 31,
                                                                                                    2006                  2005
                                                                                                 (unaudited)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                              <C>                   <C>
ASSETS
Current assets:
      Cash                                                                                       $     15,731          $     81,161
      Investments held in Trust Fund - at fair market value (Note 2)                               18,749,303            18,139,962
-----------------------------------------------------------------------------------------------------------------------------------
           Total current liabilities                                                               18,765,034            18,221,123

      Deferred Tax Asset                                                                              308,127               141,159
-----------------------------------------------------------------------------------------------------------------------------------
Total assets                                                                                     $ 19,073,161          $ 18,362,282
===================================================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
        Accrued expenses                                                                         $    360,339          $     20,000
        Deferred interest income                                                                      230,541               108,688
        Taxes payable                                                                                 473,789               188,225
        Note Payable - stockholder                                                                    121,947                    --
-----------------------------------------------------------------------------------------------------------------------------------
           Total current liabilities                                                                1,186,616               316,913
-----------------------------------------------------------------------------------------------------------------------------------

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

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                                               (411,935)             (253,111)
-----------------------------------------------------------------------------------------------------------------------------------
         Total stockholders' equity                                                                14,369,304            14,528,128
-----------------------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity                                                       $ 19,073,161          $ 18,362,282
===================================================================================================================================
</TABLE>

          The accompanying notes should be read on conjunction with the
                    Unaudited Condensed Financial Statements


                                       3
<PAGE>

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

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

<TABLE>
<CAPTION>
                                                                                                                          For the
                                                                                                                        Period from
                                                       For the Three   For the Three   For the Nine    For the Nine     May 7, 2004
                                                        Months Ended   Months Ended    Months Ended    Months Ended   (inception) to
                                                        September 30,  September 30,   September 30,   September 30,   September 30,
                                                            2006            2005            2006            2005           2006
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>             <C>             <C>             <C>             <C>
Income:
     Interest Income                                    $   176,849     $   115,060     $   487,826     $   291,921     $   929,364
-----------------------------------------------------------------------------------------------------------------------------------
Expenses:
      Investment advisory                                    35,000              --          45,942           7,000         103,342
      Tax expense                                             5,813          20,649          17,438          74,809          77,529
      Travel and entertainment                                   --          41,239          50,783         105,131         216,033
      Accounting expenses                                        --           5,188          34,894          10,188         124,826
      Rent expense                                           22,500          22,500          67,500          67,500         166,500
      Insurance expense                                       7,663          10,500          30,650          31,500          84,881
      Legal expense                                         120,589          18,211         272,274          20,598         323,741
      Formation, operating and bank costs                     5,900           5,356          26,010          14,759          57,765
-----------------------------------------------------------------------------------------------------------------------------------
                Total Expenses                              197,465         123,643         545,491         331,485       1,154,617
-----------------------------------------------------------------------------------------------------------------------------------

Loss before provision for income taxes                  $   (20,616)    $    (8,583)    $   (57,665)    $   (39,564)    $  (225,253)

       Provision for income taxes                            36,761              --         101,159              --         186,682
-----------------------------------------------------------------------------------------------------------------------------------

Loss for the period                                     $   (57,377)    $    (8,583)    $  (158,824)    $   (39,564)    $  (411,935)
===================================================================================================================================

Loss per share basic and diluted
                                                        $     (0.01)    $     (0.00)    $     (0.04)    $     (0.01)    $     (0.12)

Weighted average shares outstanding                       4,200,000       4,200,000       4,200,000       4,200,000       3,408,925
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

          The accompanying notes should be read on conjunction with the
                    Unaudited Condensed Financial Statements


                                       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
  stock to initial stockholders as of
   May 7, 2004 at $.0333 per share                     750,000    $   75    $     24,925            --     $    25,000

Sale of 3,450,000 units, net of
  underwriters' discount and
  offering expenses (includes
  689,655 shares subject to
  possible conversion)                               3,450,000       345      18,273,035            --      18,273,380

Proceeds subject to possible
  conversion of 689,655 shares                              --        --      (3,517,241)           --      (3,517,241)

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 nine months ended
  September 30, 2006 (unaudited)                            --        --              --      (158,824)       (158,824)
                                                     ---------    ------    ------------     ---------     -----------

Balance, September 30, 2006
  (unaudited)                                        4,200,000    $  420    $ 14,780,819     $(411,935)    $14,369,304
                                                     =========    ======    ============     =========     ===========
                                                     =================================================================
</TABLE>

          The accompanying notes should be read on conjunction with the
                    Unaudited Condensed Financial Statements


                                       5
<PAGE>

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

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

<TABLE>
<CAPTION>
                                                                                                                         For the
                                                                                                                        period from
                                                                           For the Nine          For the Nine           May 7, 2004
                                                                           Months Ended          Months Ended         (inception) to
                                                                           September 30,         September 30,         September 30,
                                                                               2006                  2005                  2006
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                                        <C>                   <C>                   <C>
Cash flow from operating activities
      Net loss                                                             $   (158,824)         $    (39,564)         $   (411,935)
      Adjustments to reconcile net loss to net cash
             used in operating activities
       Deferred taxes                                                          (166,968)                   --              (308,127)
      Interest earned on investments in trust                                  (609,341)             (363,549)           (1,154,303)
      Decrease in prepaid expenses                                                   --                40,501                    --
      Increase (decrease) in income tax payable                                 285,564               (23,739)              473,789
      Increase in deferred interest income                                      121,853                71,627               230,541
      Increase in accrued expenses                                              340,339                12,433               360,339
-----------------------------------------------------------------------------------------------------------------------------------
             Net cash used in operating activities                             (187,377)             (302,291)             (809,696)
-----------------------------------------------------------------------------------------------------------------------------------

Cash flows from investing activities
      Purchase of short term investments                                             --              (250,000)                   --
      Investment in Trust Fund                                                       --                    --           (17,595,000)
-----------------------------------------------------------------------------------------------------------------------------------
              Cash used in investing activities                                      --              (250,000)          (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                                          121,947                    --               191,947
       Repayment of stockholder loans                                                --                    --               (70,000)
       Payment of costs of public offering                                           --              (124,781)           (2,426,620)
-----------------------------------------------------------------------------------------------------------------------------------
Net cash (used in) provided by financing activities                             121,947              (124,781)           18,420,427
-----------------------------------------------------------------------------------------------------------------------------------

Net (decrease) increase in cash                                            $    (65,430)         $   (677,072)         $     15,731
Cash at beginning of the period                                                  81,161               696,747                    --
-----------------------------------------------------------------------------------------------------------------------------------
Cash at end of the period                                                  $     15,731          $     19,675          $     15,731
===================================================================================================================================
Supplementary information:
Cash paid for taxes                                                        $         --          $     98,549          $     98,549
===================================================================================================================================
</TABLE>

          The accompanying notes should be read on conjunction with the
                    Unaudited Condensed Financial Statements


                                       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 September 30, 2006 and
                              for the periods ended September 30, 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 September 30,
                              2006, the results of its operations and cash flows
                              for the three month period ended September 30,
                              2006 and the three month period ended September
                              30, 2005, the results of its operations and cash
                              flows for the nine month period ended September
                              30, 2006, the nine month period ended September
                              30, 2005 and the period from May 7, 2004
                              (inception) through September 30, 2006 and its
                              stockholders' equity for the three months ended
                              September 30, 2006 and May 7, 2004 (inception) to
                              September 30, 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.

2.  Organization and          The Company was incorporated in May 7, 2004 as a
    Business Operations       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.

                              The registration statement for the Company's
                              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 earlier of
                              (i) the consummation of its first Business
                              Combination or (ii)


                                       7
<PAGE>

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

                                         Notes to Unaudited Financial Statements

                              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 $18,749,000 at
                              September 30, 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 September 30, 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. The Company has
                              satisfied the extension criteria. There is no
                              assurance that the Company will be able to
                              successfully effect a Business Combination during
                              this period. This factor raises substantial doubt
                              about the Company's ability to continue as a going
                              concern. The accompanying financial statements are
                              prepared assuming the Company will continue as a
                              going concern. The financial statements do not
                              include any adjustments that might result from the
                              outcome of this uncertainty. 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.

                              In June 2006, the FASB issue Interpretation No.
                              48, "Accounting for Uncertainty in Income Taxes -
                              an Interpretation of FASB Statement No. 109" ("FIN
                              48"). FIN 48 clarifies the accounting for
                              uncertainty in income taxes recognized in a
                              company's financial statements in accordance with
                              SFAS No. 109, "Accounting for Income Taxes." FIN
                              48 prescribes a recognition threshold and
                              measurement attribute for the financial statement
                              recognition and measurement of a tax position
                              taken or expected to be taken in a tax return. FIN
                              48 is effective for fiscal years beginning after
                              December 15, 2006. Management does not believe
                              that any other recently issued, but not yet
                              effective, accounting standards if currently
                              adopted would have a material affect on the
                              accompanying financial statements.

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


                                       9
<PAGE>

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

                                         Notes to Unaudited Financial Statements

                              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 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 nine months ended September 30, 2006,
    Stockholder               the Company issued $121,947 in unsecured
                              promissory notes to Initial Stockholders, who are
                              also officers. 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.


                                       10
<PAGE>

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

                                         Notes to Unaudited Financial Statements

                              As of September 30, 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
                              ("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


                                       11
<PAGE>

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

                                         Notes to Unaudited Financial Statements

                              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 fourth quarter of 2006
                              at a special meeting called for that purpose.
                              Consummation of the transactions will occur
                              promptly thereafter, if approved.


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<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.

Overview

      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.

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.

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, as amended, and our preliminary joint proxy
statement/prospectus for our Special Meeting of Stockholders filed with the SEC
on September 8, 2006.

Results of Operations

      For the three months ended September 30, 2006, we had a net loss of
$57,379, attributable to $22,500 expense for rent, $42,574 expense for income
and franchise taxes, $155,589 expense for professional fees, $7,663 expense for
officer liability insurance and $5,900 for other expenses. Interest income on
the trust fund investment and short-term investments for the three months ended
September 30, 2006, excluding deferred interest, was $176,849.

      For the three months ended September 30, 2005, we had a net loss of
$8,583, after the effect of $22,500 expense for rent, $20,649 expense for income
and franchise taxes, $5,188 expense for professional fees, $10,500 expense


                                       13
<PAGE>

for officer liability insurance, $41,239 expense income and franchise for
travel, $18,211 expense for legal fees and $5,356 for other expenses. Interest
income on the trust fund investment and short-term investments for the three
months ended September 30, 2005 was $115,060.

      For the nine months ended September 30, 2006, we had a net loss of
$158,824, attributable to $67,500 expense for rent, $118,597 expense for income
and franchise taxes, $353,110 expense for professional fees, $30,650 expense for
officer liability insurance, $50,783 expense for travel and $26,010 for other
expenses. Interest income on the trust fund investment and short-term
investments for the three months ended September 30, 2006, excluding deferred
interest, was $487,826.

      For the nine months ended September 30, 2005, we had a net loss of
$39,564, attributable to $67,500 expense for rent, $74,809 expense for income
and franchise taxes, $10,188 expense for professional fees, $31,500 expense for
officer liability insurance, $105,131 expense for travel, $20,598 expense for
legal fees and $14,759 for other expenses. Interest income on the trust fund
investment and short-term investments for the nine months ended September 30,
2005 was $291,921.

      For the period from May 7, 2004 (inception) through September 30, 2006, we
had a net loss of $411,935, attributable to $166,500 expense for rent, $264,211
expense for income and franchise taxes, $551,909 expense for professional fees,
$84,881 expense for officer liability insurance, $216,033 expense for travel and
$57,765 for other expenses. Interest income on the trust fund investment and
short-term investments for the period May 7, 2004 (inception) to the period
ended September 30, 2006, excluding deferred interest, was $929,364.

      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 $18,749,000 at September
30, 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.


                                       14
<PAGE>

      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 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 September 30, 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


                                       15
<PAGE>

over financial reporting that has materially affected, or is reasonably likely
to materially affect, our internal control over financial reporting.


                                       16
<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
$18,749,000 at September 30, 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


                                       17
<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: November 20, 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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