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

                                     FORM 10-QSB/A


(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, 2005

[ ]  TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

     For the transition period from _________________ to _____________________

     Commission file number:                            000-49852
                             _________________________________________________

                                      DAHUA INC.
------------------------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)

               Delaware                             04-3616479
------------------------------------------------------------------------------
State or other jurisdiction              (I.R.S. Employer Identification No.)
  of incorporation or organization)

            19th Floor, Building C, Tianchuangshiyuan, Huizhongbeili,
                  Chaoyang District, Beijing, China, 100012
-------------------------------------------------------------------------------
                       (Address of principal executive offices)

                                86-10-6480-1527
-------------------------------------------------------------------------------
                          (Issuer's telephone number)

                             NORTON INDUSTRIES CORP.
-------------------------------------------------------------------------------
       (Former name, former address and former fiscal year, if changed
                            since last report)

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 [ ]


                     APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 25,000,000 shares of common stock,
par value $.0001, as of August 8, 2006.

Transitional Small Business Disclosure Format (check one):  Yes  [ ]  No [X]






                                      DAHUA INC.

                                  Table of Contents



Part I. Financial Information

Item1.  Financial Statements

 Consolidated Balance Sheet as of March 31, 2005 (unaudited) (Restated)..     3

 Consolidated Statements of Operations for the Three Months
  Ended March 31, 2005 and 2004 (Unaudited) .............................     4

 Consolidated Statements of Cash Flows for the Three Months
  Ended March 31, 2005 and 2004 (Unaudited) (Restated)...................     5

 Notes to Consolidated Financial Statements..............................     6

Item 2. Management's Discussion and Analysis or Plan of Operation........     11

Item 3. Controls and Procedures..........................................     14


Part II.   Other Information

Item 1.  Legal Information...............................................     14
Item 2.  Changes in Securities...........................................     14
Item 3.  Defaults Upon Senior Securities.................................     15
Item 4.  Submission of Matters to a Vote of Security Holders.............     15
Item 5.  Other Information...............................................     15
Item 6.  Exhibits and Reports on Form 8-K................................     15

Signatures...............................................................     15






PART I.   FINANCIAL INFORMATION


Item 1.  Financial Statements




                                         DAHUA INC.
                         Consolidated Balance Sheet (Unaudited)
                                       (Restated)

                                        ASSETS

                                                                 March 31, 2005
                                                                ---------------
Current Assets:
 Cash and cash equivalents..............................        $       780,482
 Inventory..............................................              8,898,682
 Prepaid construction costs.............................              2,131,126
                                                                ---------------
    Total Current Assets................................             11,810,290

Property, Plant, & Equipment:
 Computer equipment.....................................                  3,450
 Office equipment.......................................                 43,464
 Telephones.............................................                  1,026
 Vehicles...............................................                 11,498
                                                                ---------------
   Total Property, Plant, & Equipment...................                 59,438
   Less: Accumulated depreciation.......................               (21,536)
                                                                ---------------
   Net property, plant and equipment....................                 37,902

Due from related parties................................                 50,039
Loan receivable.........................................                 72,480
                                                                ---------------

Total Assets............................................        $    11,970,711
                                                                ===============


                     LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
 Accounts payable.......................................        $        25,393
 Customer deposits......................................              6,243,349
 Short-term loans - related parties.....................              5,240,162
 Accrued interest - short-term loans, related parties...                343,435
 Other accruals.........................................                 33,872
                                                                ---------------
    Total Current Liabilities...........................             11,886,211

Minority interest in subsidiary.........................                 36,900

Stockholders' Equity:

 Preferred stock: par value $.0001, 20,000,000 shares
  authorized; none issued and outstanding...............                      -
 Common stock: par value $.0001; 80,000,000 shares
  authorized; 20,000,000 share issued and outstanding...                  2,000
 Additional paid-in capital.............................                865,352
 Accumulated deficit....................................              (819,752)
                                                                ---------------
   Total stockholders' equity...........................                 47,600

Total Liabilities and Stockholders' Equity..............        $    11,970,711
                                                                ===============





     See accompanying notes to unaudited consolidated financial statements







                                       DAHUA, INC.
                       Consolidated Statements of Operations (Unaudited)


<TABLE>
<CAPTION>

                                                                  Three Months Ended March 31,
                                                            ----------------------------------------
                                                                  2005                   2004
                                                            -----------------    -------------------

                                                                 <c>                      <c>
Revenues
 Sales revenue..................................            $               -     $               -
 Cost of goods sold.............................                            -                     -
                                                            -----------------    -------------------
   Gross Profit.................................                            -                     -

Expenses
 Advertising....................................                       14,902                30,633
 Depreciation...................................                        1,708                 2,287
 Payroll expense................................                       37,554                32,656
 Other general and administrative...............                       87,340                70,273
                                                            -----------------     -----------------
   Total expenses...............................                      141,504               135,849
                                                            -----------------     -----------------

Net loss from operations........................                    (141,504)             (135,849)

Other Income
 Interest income................................                          962                   579
                                                             ----------------     -----------------
  Total other income............................                          962                   579
                                                             ----------------     -----------------

Net loss before taxes and minority interest.....                    (140,542)             (135,270)

Provision for income taxes......................                            -                     -

Net loss before minority interest...............                    (140,542)             (135,270)

Minority interest in subsidiary loss............                       28,108                27,054

Net loss........................................              $     (112,434)      $      (108,216)
                                                              ===============      ================

Basic and diluted loss per share................              $        (0.01)      $         (0.01)
                                                              ===============      ================

Weighted average common shares outstanding......                   20,000,000            20,000,000
                                                              ===============      ================

</TABLE>

         See accompanying notes to unaudited consolidated financial statements









                                    DAHUA, INC.
                  Consolidated Statements of Cash Flows (Unaudited)
                                    (Restated)


<TABLE>
<CAPTION>

                                                                     Three Months Ended March 31,
                                                                -------------------------------------
                                                                      2005                2004
                                                                -------------------  ----------------

                                                             <c>                  <c>
Cash Flows from Operating Activities:
 Net loss............................................           $         (112,434)  $       (108,216)
 Adjustments to reconcile net income to net cash
  provided by (used in) operating activities:
   Depreciation......................................                         1,708              2,287
   Provision for allowance on accounts receivable....                             -             14,236
   Minority interest.................................                      (28,108)           (27,054)
   Changes in operating assets and liabilities:
    Inventory........................................                     (448,633)          (905,336)
    Prepaid construction costs.......................                     (295,729)          (412,849)
    Loans receivable.................................                      (72,480)              5,712
    Accounts payable.................................                             -           (45,828)
    Customer deposits................................                     1,264,692          1,228,340
    Accrued interest.................................                        84,036                  -
    Other accruals...................................                         1,763              5,715
                                                                 ------------------   ----------------
       Cash provided by (used in) operating activities                      394,815          (242,993)

Cash Flows from Investing Activities:
 Purchase of property, plant and equipment...........                             -              (546)
                                                                 ------------------  -----------------
       Cash used in investing activities.............                             -              (546)

Cash Flows from Financing Activities:
 Net payment on loans payable........................                             -            (8,533)
 Net proceeds from loans payable, related party......                        10,883            357,104
 Acquired treasury stock.............................                     (100,000)                  -
                                                                  -----------------  -----------------
       Cash (used in) provided by financing activities                     (89,117)            348,571

Increase in cash and cash equivalents................                       305,698            105,032
                                                                  -----------------   ----------------

Cash and cash equivalents, beginning of period......                        474,784            104,699
                                                                  -----------------   ----------------
Cash and cash equivalents, end of period............               $        780,482   $        209,731
                                                                  =================   ================

Supplemental disclosure of cash flow information:

  Interest paid in cash.............................                $             -   $              -
                                                                  =================   ================
  Income taxes paid in cash.........................                $             -   $              -
                                                                  =================   ================




               See accompanying notes to unaudited consolidated financial statements

</TABLE>



                                    DAHUA, INC.

               NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The accompanying unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America for interim financial information and with the instructions to Form
10-QSB and item 310 of Regulation S-B. Accordingly, they do not include all of
the information and footnotes required by accounting principles generally
accepted in the United States of America for annual financial statements. In the
opinion of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. The accounts
of the Company and all of its subsidiaries are included in the consolidated
financial statements. All significant intercompany accounts and transactions
have been eliminated in consolidation. The consolidated operating results for
the three months ended March 31, 2005 are not necessarily indicative of the
results that may be expected for the year ending December 31, 2005.

1.  Nature of operations

Dahua, Inc. (Dahua) was incorporated on March 8, 2002 in the State of Delaware
as Norton Industries Corp. The name was changed to Dahua, Inc. on February 7,
2005 as result of a reverse acquisition in which Norton acquired all capital
shares of Bauer Invest Inc. ("Bauer").  The acquisition was accounted for as a
reverse merger, as the post acquisition owners and control persons of Dahua are
substantially the same as the pre acquisition owners and control persons of
Bauer.

Bauer Invest Inc. was incorporated on December 10, 2003, under the laws of the
Territory of the British Virgin Islands (BVI). Bauer has had no operations other
than the acquisition of 80% of Beijing Dahua Real Estate Development, Ltd.
(Subsidiary) on May 25, 2004. The Subsidiary is a corporation established on
September 24, 2001 in the People's Republic of China (PRC). The acquisition was
accounted for as a reverse merger, as the post acquisition owners and control
persons of Bauer are substantially the same as the pre acquisition owners and
control persons of the subsidiary. These financial statements are essentially
those of the Subsidiary with a recapitalization to show the effects due to the
reverse mergers. The consolidated entity is hereafter referred to as "the
Company".

The Company engages in the development of real estate and the sale of commodity
housing.  The Company has been in the process of acquiring and developing land
and housing for sale, and is now prepared for sales of those items to begin.

2.  Basis of Presentation

The accompanying financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America (US GAAP). This
basis differs from that used in the statutory accounts of the Company, which
were prepared in accordance with the accounting principles and relevant
financial regulations applicable to enterprises in the PRC. All necessary
adjustments have been made to present the financial statements in accordance
with US GAAP.

3. Summary of Significant Accounting Policies

Economic and Political Risks

The Company faces a number of risks and challenges as a result of having primary
operations and markets in the PRC. Changing political climates in the PRC could
have a significant effect on the Company's business.

Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents includes
cash on hand and demand deposits held by banks. Deposits held in financial
institutions in the PRC are not insured by any government entity or agency.

Trade Accounts Receivable

Trade accounts receivable are recognized and carried at original invoice amount
less an allowance for any uncollectible amounts. An estimate for doubtful
accounts is made when collection of the full amount becomes questionable. The
Company had no trade accounts receivable during the periods presented.

Inventories

Inventories consist primarily of land acquisition and development costs,
engineering, infrastructure, capitalized interest, and construction work-in-
progress costs. The inventories are valued at cost based on the level of
completion. No provision for potential obsolete inventory has been made.

Property, Plant, and Equipment

Property, plant, and equipment are carried at cost less accumulated
depreciation, which is computed using the straight-line method over the useful
lives of the assets. Upon disposal of assets, the cost and related accumulated
depreciation are removed from the accounts and any gain or loss is included in
income. Property and equipment are depreciated over their estimated useful
lives as follows:

    Computer equipment       3 years
    Office equipment         7 years
    Vehicles                 7 years

Depreciation expense for the three month periods ended March 31, 2005 and 2004
was $1,708 and $2,287, respectively.

Long-term assets of the Company are reviewed annually to assess whether the
carrying value has become impaired, according to the guidelines established in
Statement of Accounting Standards (SFAS) No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets." The Company also evaluates the periods of
amortization to determine whether subsequent events and circumstances warrant
revised estimates of useful lives. No impairment of assets was recorded in the
periods reported.

Revenue Recognition

The Company recognizes revenue on the sale of a house when the consummation of
a sale is evidenced by: 1) a contractual arrangement that is binding to both
parties; 2) the exchange of all consideration (i.e. the seller has transferred
to the buyer the usual risks and rewards of ownership and the buyer has made
payment in full to the seller); 3) the arrangement of all permanent financing
for which the seller is responsible and; 4) the performance of all conditions
precedent to closing. No revenue is recognized when the Company's receivable
is subject to future subordination, as is the case when the Company guarantees
a bank loan for the period prior to the certification of title transfer.

Advertising Expenses

Advertising costs are expensed as incurred. Advertising expense amounted to
$14,902, and $30,633 for the three month periods ended March 31, 2005 and 2004.

Foreign Currency and Comprehensive Income

The accompanying financial statements are presented in United States (US)
dollars. The functional currency is the Renminbi (RMB). The financial statements
are translated into US dollars from RMB at period-end exchange rates for assets
and liabilities, and weighted average exchange rates for revenues and expenses.
Capital accounts are translated at their historical exchange rates when the
capital transactions occurred.

The exchange rate for RMB to US dollars has varied by only 100ths during 2005
and 2004. Thus, the consistent exchange rate used has been 8.27 RMB per each
US dollar. Since there have been no greater fluctuations in the exchange rate,
there is no gain or loss from foreign currency translation and no resulting
other comprehensive income or loss.

RMB is not freely convertible into the currency of other nations. All such
exchange transactions must take place through authorized institutions. There
is no guarantee the RMB amounts could have been, or could be, converted into
US dollars at the rates used in translation.

Taxes

Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
bases. Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary
differences are expected to reverse. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in the statement of
operations in the period that includes the enactment date. A valuation
allowance is provided for deferred tax assets if it is more likely than not
these items will either expire before the Company is able to realize their
benefits, or that future deductibility is uncertain. Nearly all differences in
tax bases and financial statement carrying values are permanent differences.
Therefore, the Company has recorded no deferred tax assets or liabilities.

Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.

4. Inventory

Inventory costs consist of the following at March 31, 2005 and December 31,
2004:
<TABLE>
<CAPTION>

                                                                  March 31, 2005          Dec. 31, 2004
                                                               ---------------------   -------------------

                                                            <c>                     <c>
  Compulsory land acquisition and removal compensation          $         3,470,992     $        3,470,992
  Construction and installation project cost                              1,705,077              1,474,022
  Prophase engineering cost                                                 705,244                687,000
  Infrastructure cost                                                     1,355,418              1,239,927
  Auxiliary public establishment                                            277,414                264,475
  Indirect development cost, including capitalized interest               1,384,537              1,313,633
                                                               --------------------     -------------------
                                                                 $        8,898,682      $       8,450,049
</TABLE>

5.  Short-term loans

Short-term loans due to related parties had balances of $5,583,597 and
$5,488,678 (including accrued interest) at March 31, 2005 and December 31, 2004,
respectively. The loans carry an annual interest rate of 6 percent and are due
on demand. Interest accrued on the loans was $84,036 and $161,238 for the three
months ended March 31, 2005 and the year ended December 31, 2004, which
remained accrued at March 31, 2005. The entire interest amounts were capitalized
as costs of construction.

6.  Customer deposits

Customer deposits consist of down payments received on sales contracts for our
houses. Upon closing, when title passes to the buyer, the Company will recognize
the down payments as revenue. Total customer deposits at March 31, 2005 and
December 31, 2004 was $6,243,349 and $4,978,657, respectively.

7.  Prepaid construction cost

Prepaid construction cost consists of payments to our subcontractors before they
provide us services. Prepaid construction cost will be converted into inventory
when the subcontractors finish their work. Prepaid construction cost at
March 31, 2005 and December 31, 2004 was $2,131,126 and $1,835,397,
respectively.

8.  Restatement of financial statements

Subsequent to the publication of the financial statements in form 10-QSB it was
discovered that an error had been made on consolidation. The amount of $100,000
paid to acquire and cancel treasury stock was incorrectly shown as loans
receivable. Other amounts shown as due from related parties and loans
receivable, previously classified as current assets, were determined to be
other assets due to the lack of fixed repayment terms. The restatements had no
effect on the statements of operations for the three ended March 31, 2005.



Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


The discussion in this quarterly report on Form 10-QSB contains forward-looking
statements. Such statements are based upon beliefs of management, as well as
assumptions made by and information currently available to management of the
Company as of the date of this report (August 9, 2005). These forward-looking
statements can be identified by their use of such verbs as "expect",
"anticipate", "believe" or similar verbs or conjugations of such verbs. If any
of these assumptions prove incorrect or should unanticipated circumstances
arise, the actual results of the Company could materially differ from those
anticipated by such forward-looking statements. The Company assumes no
obligation to update any such forward-looking statements.

Background

Dahua, Inc. (the "Company") was incorporated on March 8, 2002 in the State of
Delaware as Norton Industries Corp. The name was changed to Dahua, Inc. on
February 7, 2005 as result of a reverse acquisition in which Norton acquired all
capital shares of Bauer Invest Inc. ("Bauer"). The acquisition was accounted for
as a reverse merger, as the post acquisition owners and control persons of Dahua
are substantially the same as the pre acquisition owners and control persons of
Bauer.

Bauer Invest Inc. was incorporated on December 10, 2003, under the laws of the
Territory of the British Virgin Islands. Bauer has had no operations other than
the acquisition of 80% of Beijing Dahua Real Estate Development, Ltd.
(Subsidiary) on May 25, 2004. The Subsidiary is a corporation established on
September 24, 2001 in the People's Republic of China. The acquisition was
accounted for as a reverse merger, as the post acquisition owners and control
persons of Bauer are substantially the same as the pre acquisition owners and
control persons of the Subsidiary. These financial statements are essentially
those of the Subsidiary with a recapitalization to show the effects due to the
reverse mergers.

Operation Overview

The Company, through its 80% owned subsidiary Beijing Dahua Real Estate
Development Ltd. ("Dahua Real Estate"), engages in the business of development,
construction and sale of luxury single-family homes in Beijing, China.

In July 2003, the Company began to develop its first real estate project. The
project is called the first phase of Dahua Garden (the "First Phase"), which
consists of 76 luxury residential housing units, all of which are single houses
ranging from approximately 2,000 to 5,000 square feet, each with 3-4 bedrooms
with built-in closets and adjacent bathrooms, an open eat-in kitchen, a family
room, a living room, and an attic solarium for indoor sun bathing. The
construction began in July 2003 and was substantially completed in December
2004. As of March 31, 2005, the Company was finishing up plumbing, wiring and
landscaping.

As of March 31, 2005, the Company has pre-sold 24 of the 76 units of the First
Phase, out of which none unit has been paid in full, all pre-sold 24 units were
reserved with clients' deposits and are being paid off in installments, and
52 units were available for sale. Because the home units have not been delivered
to the buyers, all funds received from the pre-sold units and installment
payments are recorded as customer deposits until physical delivery and release
of any Company's guarantees to the financing bank. As of March 31, 2005, we had
received customer deposits totaling $6.24 million.

Results of Operations
---------------------

Three Months Ended March 31, 2005 and 2004

Revenue

The Company started its first construction project on development of real estate
residential single-family homes in July 2003, and the construction was
substantially completed in December 2004. During the three-month period ended
March 31, 2005, the Company was finishing up plumbing, wiring and landscaping.
As of March 31, 2005, the Company has pre-sold 24 of the 76 units of the First
Phase, out of which none unit has been paid in full, all pre-sold 24 units were
reserved with clients' deposits and are being paid off in installments, and 52
units were available for sale. Because the home units have not been delivered
to the buyers, all funds received from the pre-sold units and installment
payments are recorded as customer deposits until physical delivery and all
requirements for revenue recognition are met. Accordingly, no sales revenues
have been recognized for the three months ended March 31, 2005 and 2004,
respectively.

Operating Expenses

For the three months ended March 31, 2005, the Company's operating expenses
increased $5,655, or 4.2%, to $141,504 from $135,849 for the same period of the
previous year. The increase was largely due to increase in payroll expenses and
other general and administrative expenses, offset by a decrease in advertising
expenses.

Net Loss

For the three months ended March 31, 2005, the Company reported a net loss of
$112,434, as compared to a net loss of $108,216 for the same period of the
previous year. This resulted in basic and diluted net loss per share of $0.01
on weighted average common shares outstanding of 20,000,000 in both report
periods.

Liquidity and Capital Resources

Since inception, the operations of the Company has been primarily funded by
equity capital, unsecured short-term loans from Dahua Project Management Group
("Dahua Group"), an affiliate, and customer deposits that the Company received
from its pre-sale of housing units.

After receiving the Residential Housing Pre-sale Permit issued by the
government, the Company is permitted to sell the residential units to be built
to the public, which is common practice in China. Upon execution of a binding
purchase contract between the developer and a homebuyer, a deposit and
installment payments are required to be made to the developer, which the
Company used to construct its residential housing units. At March 31, 2005,
customer deposit balance was $6,243,349.

The Company also borrows from time to time based on a verbal line of credit
agreement from Dahua Group, an affiliate. The funds so borrowed are unsecured
and there is no upper limit on the amount of money that the Company can borrow
as long as there are funds available and the Company needs it for its operation.
The loans carry an annual interest of 6%, repayable within 30 days upon demand.
As of March 31, 2005, the short-term loans due to related parties had balance
of $5,583,597, accrued interest included.

For the three months ended March 31, 2005, the operating activities of the
Company provided $394,815 of net cash, largely by an increase in customer
deposits of $1,264,692, and offset by increase in inventory of $448,633, prepaid
construction costs of $295,729, and decrease in loans receivable of $72,480.
For the three months ended March 31, 2005, the Company had no investing
activities. For the same period, the financing activities of the Company used
$89,117 of net cash, of which $100,000 was used to acquire and cancel treasury
stock, and offset by borrowing from a related party of $10,883.

As of March 31, 2005, the First Phase of Dahua Garden was substantially
completed. The Company is currently applying with Beijing municipal and
Changping district governmental agencies for all the requisite licenses,
permits, and approvals to start our Second Phase of Dahua Garden, which will
include 250 luxurious single-family houses located on a 267,000 square meter
site with community clubhouse, creeks, ponds, and professionally manicured
gardens and landscape. As of the date of this report (August 8, 2005), the
Company is in the process of applying for necessary licenses, permits or
approvals. It is estimated that approximately $60.5 million is needed to
complete the Second Phase. In addition to customer deposits, short-term loans
(line of credit) from Dahua Group, the proceeds generated from sale of the
First Phase will also be used to finance the Second Phase development. The
Company has made no material commitments for capital expenditures.

While there can be no assurance that the Company will have sufficient funds
over the next twelve months, the Company believes that funds generated from the
sale of our First Phase of Dahua Garden housing units, customer deposits from
pre-sale contracts, and the line of credit provided by Dahua Group, will be
adequate to meet our anticipated operating expenses, capital expenditure and
debt obligations for at least the next twelve months. Nevertheless, our
continuing operating and investing activities may require us to obtain
additional sources of financing. In that case, we may seek financing from
institutional investors or banks to identify additional sources of financing.
There can be no assurance that any necessary additional financing will be
available to us on commercially reasonable terms, if at all.

Off-balance sheet arrangements

The Company entered into an agreement with each of two banks that extended
mortgage loans to its home buyers, whereby the Company agreed to provide a
certain limited guarantee, which covers the risk before the conveyance of title
upon closing. Upon initiating the loan on behalf of the buyer for the down
payment, the bank has withheld a percentage ranging from 5% to 20% of the loan
and deposited such funds into a segregated account in the bank. At March 31,
2005, there was no balance in the separate accounts


Item 3.   CONTROLS AND PROCEDURES

As of the end of the period covered by this quarterly report on Form 10-QSB, the
Company evaluated the effectiveness of the design and operation of its
disclosure controls and procedures, and our internal control over financial
reporting. This evaluation was performed by our President and Chief Executive
Officer, and our Chief Financial Officer.

Based upon the Evaluation, our CEO and CFO have concluded that the Company's
disclosure controls are effective to ensure that material information relating
to the Company is made known to management, including the CEO and CFO,
particularly during the period when the Company's periodic reports are being
prepared, and that the internal controls of the Company are effective to
provide reasonable assurance that its financial statements are fairly
presented in conformity with accounting principals generally accepted in the
United States. Additionally, there has been no change in the Company's internal
controls that occurred during its most recent fiscal quarter that has
materially affected, or is reasonably likely to affect, our internal controls.



                   PART II.  OTHER INFORMATION


Item 1.     Legal Information:   None.

Item 2.     Changes in Securities:  None.

Item 3.     Defaults Upon Senior Securities:  None.

Item 4.     Submission of Matters to a Vote of Security Holders:  None.

Item 5.     Other Information:  None.

Item 6.     EXHIBITS AND REPORTS ON FORM 8-K


(a)  Exhibits

Exhibit No.             Description
----------    -----------------------------------
   31.1        Section 302 Certification of CEO
   31.2        Section 302 Certification of CFO
   32.1        Section 906 Certification of CEO
   32.2        Section 906 Certification of CFO

(b)  Reports on Form 8-K:

On February 1, 2005, the Company filed a Form 8-K under Items 2.01, 3.02, 4.01,
5.01, 5.02, 8.01 and 9.01 to report a change in control of the registrant.



                                  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.


DAHUA, INC.


By: /s/ Yonglin Du
--------------------------------------------------
Younglin Du, Chief Executive Officer and President


Date: August 8, 2006