SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                  For the quarterly period ended March 31, 2006

[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION 13 OR 15 (d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934

              For the transition period from__________to__________.

                          Commission File No. 0-27929


                        ETERNAL TECHNOLOGIES GROUP, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


          Nevada                                           62-1655508
-------------------------------                ---------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)


           Sect D, 5/F, Block A, Innotec Tower, 235 Nanjing Road
                      Heping District, Tianjin, 300052
        -----------------------------------------------------------------
                    (Address of principal executive offices)

                               011-86-22-2721-7020
                            -------------------------
                           (Issuer's telephone number)

     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

     As of May 15, 2006, 40,567,300 shares of Common Stock of the issuer were
outstanding.

<PAGE>
                        Eternal Technologies Group, Inc.
                                      INDEX


                                                                          Page
                                                                         Number
PART I - FINANCIAL INFORMATION

  Item 1.  Consolidated Financial Statements

           Consolidated Balance Sheets - March 31, 2006 (unaudited)and
           December 31, 2005                                              3

           Unaudited Consolidated Statements of Income - For the
           three months ended March 31, 2006 and 2005                     4

           Unaudited Consolidated Statements of Cash Flows-
           For the three months ended March 31, 2006 and 2005             5

           Notes to Unaudited Consolidated Financial Statements           6

  Item 2.  Management Discussion and Analysis or Plan of Operations       9

  Item 3.  Controls and Procedures                                       10

PART II - OTHER INFORMATION

  Item 1.  Legal Proceedings                                             10
  Item 2.  Changes in Securities and Small Business Issuers              10
           Purchaser of Equity Securities                                10
  Item 3.  Defaults Upon Senior Securities                               10
  Item 4.  Submission of Matters to a Vote of Security Holders           10
  Item 5.  Other Information                                             10
  Item 6.  Exhibits and Reports on Form 8-K                              10

            Signatures                                                   10

            Certifications                                               12


                                       2
<PAGE>

                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

                ETERNAL TECHNOLOGIES GROUP INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                 MARCH 31, 2006
                             (UNITED STATES DOLLARS)

                                     ASSETS
<TABLE>

                                                          March 31          December 31
                                                            2006                2005
                                                       ---------------     --------------
<S>                                                    <C>                   <C>

                                                          (Unaudited)         (Audited)
CURRENT ASSETS
  Cash and Cash equivalents                               22,955,677         18,224,488
  Short-term Investment                                    9,956,193          9,909,084
  Accounts receivable                                      3,459,777          7,137,018
  Inventories                                                168,484            135,341
  Prepayments and deposits                                   259,472            257,624
                                                         ------------       ------------
TOTAL CURRENT ASSETS                                      36,799,603         35,663,555

Advances to Distributors                                     522,700            520,227
Property and Equipment, Net                                7,188,147          7,317,502
LAND USE RIGHTS, Net                                       4,786,857          4,828,051

Intangible Assets                                          1,232,079          1,263,409
                                                         ------------       -------------

TOTAL ASSETS                                              50,529,386         49,592,744
                                                         ------------       -------------

        LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
   Notes payable                                            443,366         $  443,366
   Accounts payable and accrued expenses                    649,100            706,717
   Amounts due to related parties                           240,368            240,368

Derivitive Financial instrument liabilities                 493,774            562,830
                                                          -----------       ------------

TOTAL CURRENT LIABILITIES                                 1,826,608          1,953,281


SHAREHOLDERS' EQUITY
   Preferred shares - 5,000,000 authorized $.001 par -
      none issued
   Common shares - 95,000,000 shares authorized, at
  $.001 par, 40,567,300  and 39,854,026 shares issued
  and outstanding at March 31, 2006 and December
  31, 2005, respectively                                    40,567             39,854
   Paid - in capital                                    13,507,866         13,217,874
   Stock subscription receivable                           (10,176)           (10,176)
   Retained earnings                                    33,756,540         33,215,741
   Accumulative Other Comprehensive Income               1,407,981          1,176,170
                                                                            -------------
TOTAL SHAREHOLDERS' EQUITY                              48,702,778         47,639,463
                                                       ------------         ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY              50,529,386         49,592,744
                                                       ============         ============

                 See Notes to Consolidated Financial Statements
</TABLE>
                                       3
<PAGE>

                ETERNAL TECHNOLOGIES GROUP INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
               FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005
                             (UNITED STATES DOLLARS)
                                                            March 31
                                               -------------------------------
                                                  2006               2005
                                               -------------     -------------
                                               (Unaudited)        (Unaudited)

SALES                                          $ 4,216,359         $2,108,747

COST OF SALES                                    2,789,689          1,566,434
                                                -----------       ------------

GROSS PROFIT                                    1,426,670            542,313


DEPRECIATION AND AMORTIZATION                     264,946             190,167

SELLING AND ADMINISTRATIVE EXPENSES               400,649             433,232
                                                -----------       -------------
Income From Operations                            761,075             (81,086)
OTHER INCOME (EXPENSE)
  Interest Income                                  40,728              48,842
  Change in value of dirivative
  financial instruments                          (221,649)             13,471
                                                -----------       -------------

NET INCOME BEFORE INCOME TAXES                    580,154             (45,715)

INCOME TAXES                                       39,355                  -
                                                -----------       -------------

NET INCOME (LOSS)                                 540,799           $ (45,715)
                                                ===========       =============


EARNINGS PER SHARE
  Basic and diluted
  Net income (loss)                                $ 0.01             ($0.00)
                                               ============       =============

Weighted average number of common
  shares outstanding
  Basic                                        40,074,783         29,551,485
                                               ============       =============
  Diluted                                      40,086,595         29,563,297
                                               ============       =============

                                       4

                 See Notes to Consolidated Financial Statements
<PAGE>

                ETERNAL TECHNOLOGIES GROUP INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005
                             (UNITED STATES DOLLARS)


                                                               March 31
                                                    ----------------------------
                                                       2006              2005
                                                    -----------      -----------

                                                     (Unaudited)     (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (Loss)                                       540,799        $(45,715)
Adjustments to reconcile net income to
   net cash provided by operating activities:
     Depreciation and amortization                      264,946         190,168
     Stock issued for services                                -               -
     Non-cash expenses for services                                      42,000
     Changes in value of Derivative
     financial instruments                              221,649          13,471
(Increase) decrease in assets:
     Inventories                                        (33,143)              -
     Accounts receivable                              3,660,793      (1,039,470)
Increase (decrease) in liabilities:
     Accounts payable and accrued liabilities           (60,703)        153,117
     Amounts payable related parties                      3,082          18,000
                                                       -----------   -----------
     Net cash provided (used in) by operating
      activities                                       4,597,423       (668,429)
                                                                    -----------
CASH FLOWS FROM FINANCING ACTIVIES
    Capital Contributed                                        -        182,377
                                                      -----------  ------------
    Net cash provided by financing activities                  -        182,377
                                                      -----------  ------------
Effect of exchange rate changes in cash                  129,766             -
NET INCREASE (DECREASE) IN CASH AND
     Cash Equivalents                                  4,727,189      (486,052)

     Cash and cash equivalents, beginning of period   18,228,488    27,473,354
                                                     ------------  ------------

     Cash and cash equivalents, at end of period      22,955,677  $ 26,987,302
                                                     ===========  =============

SUPPLEMENTARY CASH FLOWS DISCLOSURES

1. Interest paid                                               -            -
   Taxes paid                                             39,355            -



                                       5

                 See Notes to Consolidated Financial Statements
<PAGE>

                ETERNAL TECHNOLOGIES GROUP INC. AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                                 MARCH 31, 2006
--------------------------------------------------------------------------------
NOTES

1.       Reporting entity

     Pursuant  to an  exchange  agreement,  Eternal  Technologies  Group,  Inc.,
     ("Company") formerly known as Waterford Sterling Corporation, completed its
     acquisition of 100% interest of Eternal Group Limited and  Subsidiaries  on
     December 12,  2002.  The Company has treated the  transaction  as a reverse
     merger for  accounting  purposes.  Following  the  acquisition,  the former
     shareholders of Eternal  Technology Group Limited, a British Virgin Islands
     limited  liability  company,  now owns  approximately 85% of the issued and
     outstanding common shares of Eternal Technologies Group Inc.

     Eternal - BVI was incorporated in the British Virgin Islands in March 2000.
     In May 2000,  Eternal - BVI  acquired  100% of  Willsley  Company  Limited.
     Willsley  is a holding  company  that owns 100% of Inner  Mongolia  Aershan
     Agriculture  & Husbandry  Technology  Co.,  Ltd.  ("Aershan  Agriculture").
     Aershan  Agriculture owns a cattle herd,  conducts breeding  operations and
     owns a farm in Innner  Mongolia  which it leases to a Chinese  company  for
     approximately $572,000 per year.

     As of the fourth  quarter of 2005 we acquired  certain  assets,  subject to
     certain liabilities of E-Sea Biomedical Engineering Co. International, Ltd.
     E-Sea's  principal  activities are the  manufacture,  sale and licensing of
     medical devices used to detect breast cancer.

                                       6
<PAGE>



2. Condensed financial statements and footnotes

The  interim  consolidated  financial  statements  presented  herein  have  been
prepared by the Company  and include the  unaudited  accounts of the Company and
its subsidiaries.  All significant  inter-company accounts and transactions have
been eliminated in the consolidation.

These  condensed  financial  statements  have been prepared in  accordance  with
generally accepted accounting  principles for interim financial  information and
the  instructions  to Form  10-QSB  and Item  310 (b)  Regulation  S-B.  Certain
information and footnote  disclosures  normally included in financial statements
presented in accordance with generally accepted accounting  principles have been
condensed or omitted.  The Company believes the disclosures made are adequate to
make the  information  presented  not  misleading.  The  condensed  consolidated
financial   statements   should  be  read  in  conjunction  with  the  Company's
consolidated financial statements for the year ended December 31, 2005 and notes
thereto included in the Company's Form 10-KSB.

In the opinion of management,  the unaudited  condensed  consolidated  financial
statements   reflect  all  adjustments  (which  include  only  normal  recurring
adjustments)  necessary to present fairly the financial  position of the Company
as of March 31, 2006, the results of operations for the three months ended March
31, 2006 and 2005, respectively.  Interim results are not necessarily indicative
of full year  performance  because  of the  impact of  seasonal  and  short-term
variations.

Significant Estimates

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities and disclosure of contingent  assets and liabilities at the dates of
the  consolidated  condensed  financial  statements and the reported  amounts of
revenues  and  expenses  during the periods.  Actual  results  could differ from
estimates  making it reasonably  possible  that a change in the estimates  could
occur in the near term.

Principles of Consolidation

The unaudited  consolidated  condensed financial statements include the accounts
of the  Company  and its wholly  owned  subsidiaries  after  elimination  of all
significant inter-company accounts and transactions.

3.  CASH AND CASH EQUIVALENTS

At March 31, 2006,  substantially all of the Company's cash is to be exclusively
used for operations in the PRC.

4.  RESTATEMENT

The  accompanying  March 31, 2005  financial  statements  have been  restated to
properly   account  for  derivative   financial   instruments   associated  with
convertible debt. Following is the impact of the restatement:

As Originally Filed
-------------------------------------

Current assets                       $  30,186,994
Total assets                            40,845,516

Current liabilities                      2,413,543

Unregistered common stock subject
to registration
    registration rights                          -

Stockholders' equity                    38,431,973

Revenues                                 2,108,747
Gross profit                               542,313
Income (loss) from operations             (81,086)
Other income and expenses                   48,842
Net loss                                  (32,244)

Basic and diluted earnings (loss)
per share                                   (0.00)

                                       7
<PAGE>


As  Restated
-------------------------------------

Current assets                       $   30,186,994
Total assets                             40,845,516

Current liabilities                       3,075,801

Unregistered common stock subject
to registration
    registration rights                     563,991

Stockholders' equity                     37,205,724

Revenues                                  2,108,747
Gross profit                                542,313
Income (loss) from operations              (81,086)
Other income and expenses                    35,371
Net income                                 (45,715)

Basic and diluted earnings per share         (0.00)

5. SEGMENT REPORTING

The operating  segments  presented are the segments for which separate financial
information  is  available  and for which  operating  performance  is  evaluated
regularly by  management  to decide how to allocate  resources  and in to assess
performance.  The Company  evaluates the  performance of the operating  segments
based on income from operations that is defined as total revenues less operating
expenses.

The Company has identified two reportable  segments:  agricultural  genetics and
medical devices. The agricultural genetics segment activities include a breeding
center,  embryo-transplantation,  and  propagating  quality sheep meat and other
livestock breeds in Inner Mongolia, PRC. Medical devices' operations include the
manufacture,  development,  sales,  marketing and delivery of medical devices in
the  PRC.  Included  in  "Other"  are  corporate-related  items,   insignificant
operations and costs that are not allocated to the reportable segments.

Information  regarding our reportable  segments for the three months ended March
31, 2006 and 2005, is as follows:

<TABLE>
                                   Agricultural    Medical
                                   Genetics        Devices      Corporate      Total
                                  -------------   ----------    ----------    -------
                2006
-------------------------------
<S>                             <C>            <C>             <C>            <C>


Revenues                       $   3,608,571   $    607,787    $       -     $  4,216,359
Income from operations               598,399        259,513      (96,837)         761,075

Depreciation and amortization        197,021         67,925            -          264,946
Total assets                      45,162,078      5,324,872       42,438       50,529,386

                2005
-------------------------------

Revenues                       $   2,108,747   $         -          $  -     $ 2,108,747

Income (loss) from operations        148,710             -      (229,796)        (81,086)

Depreciation and amortization        190,167             -             -         190,167

Total assets                      40,842,789             -         2,727      40,845,516

</TABLE>



                                 8
<PAGE>


Item 2. Management Discussion and Analysis or Plan of Operation

The Company's  business is highly seasonal,  with most of the Company's  revenue
and  income  being  earned  during  the  second  half  of  the  calendar   year.
Accordingly,  the results of operations for the calendar quarter ended March 31,
2006 are not  indicative  of the results for any other quarter or for the fiscal
year.

Three Months  Ended March 31, 2006  compared to the Three Months Ended March 31,
2005

Revenues

Revenues

Revenues for the three months ended March 31, 2006  increased by  $2,107,612  or
99% to $4,216,359  from  $2,108,747  for the  corresponding  period of the prior
year.  This increase is revenue  resulted  primarily from one major sale of lamb
meat for  $3,608,571  and  $607,787  of sales in the  medical  devices  business
segment

Cost of Sales

Cost of sales for the three months ended March 31, 2006  increased by $1,223,255
or 78% to $2,789,689 from $1,566,434 from the corresponding  period of the prior
year.  Our  gross  margins  increased  from 26% to 34%  principally  because  of
improved margins on our sales of lamb meat.

Depreciation and Amortization

Depreciation and amortization  expense for the three months ended March 31, 2006
totaled  $264,946,  an increase of $74,779 from  $190,167 for the  corresponding
period of the prior year.  This increase is  substantially  attributable  to the
acquisition  of certain assets from E-Sea at the beginning of the fourth quarter
of 2005.


Selling, General and Administrative Expenses

Selling,  general and  administrative  expenses for the three months ended March
31,  2006  decreased  by  $32,583  or 7.5% to  $400,649  from  $433,232  for the
corresponding period of the prior year. The decrease in the selling, general and
administrative   expenses  is  principally   attributable   the  fact  that  two
significant  expenses  occurred in the first  quarter of 2005 as  follows:  1) a
$42,000  non-cash  charge for marketing and 2) failure to register  penalties of
$30,441.  The fact that these  expenses were not recurring in 2006 was partially
offset by additional expenses in the Company's medical devices business segment.

Other Income (Expense)

Other  income  decreased  by $216,292 to  $(180,921)  for the three months ended
March 31, 2006 from $35,371 for the corresponding  period of the prior year. The
increase  resulted  from  a  change  in  the  value  of  derivative  instruments
($235,120) and a decrease in interest income of $8,114.

Net Income (Loss)

     As a result of the foregoing,  the Company  reported income of $540,799 for
the three  months ended March 31, 2006  compared to a loss of $(45,715)  for the
three months ended March 31, 2005.  There were no income taxes  recorded for the
three month  period ended March 31, 2005.  However,  the company  incurred a tax
liability  of $39,353 for the three  months  ended March 31, 2006 because of the
income from E-Sea which is non-agricultural income.

Liquidity and Capital Resources

     As of March  31,  2006,  the  Company  had cash  and  cash  equivalents  of
$22,955,677 and working capital of $34,972,995. This compares with cash and cash
equivalents  of $18,224,488  and working  capital of $33,710,274 at December 31,
2005.

     Cash  provided by operating  activities  totaled  $4,597,423  for the three
months ended March 31,  2005.  This  compares  with cash flows used in operating
activities  of $668,429 for the three months ended March 31, 2004.  The increase
in cash flows  resulted  from changes in the current  accounts,  particularly  a
decrease in accounts  receivable of  $3,660,783  and an increase in earnings and
depreciation and an increase in accounts payable which was partially offset by a
decrease in non-cash expenses and an increase in inventories.

     There were no investing  activities by the Company  during either the three
months ended March 31, 2006 or 2005.

     For the  three  months  ended  March 31,  2005 the  company  had  financing
activities, all from the contribution of capital totalling $182,377.

     The company  believes that it has sufficient  working  capital to carry out
its business plan for the next twelve months.

                                       9
<PAGE>

Item 3.    Controls and Procedures

We strive to maintain  disclosure  controls and procedures  that are designed to
ensure that information  required to be disclosed in our Exchange Act reports is
recorded,  processed,  summarized and reported within the time periods specified
in the SEC's  rules and forms,  and that such  information  is  accumulated  and
communicated to our management,  including our chief executive officer and chief
financial  officer,  as  appropriate,  to allow for timely  decisions  regarding
required  disclosure.  In designing and evaluating  the disclosure  controls and
procedures,  management  recognizes that any controls and procedures,  no matter
how well  designated  and  operated,  can provide only  reasonable  assurance of
achieving the desired control objectives and management  necessarily is required
to apply its judgment in evaluating the  cost-benefit  relationship  of possible
controls. Our former independent  accountants,  Thomas Leger & Co. LLP conducted
audits of our financial  statements for 2002,  2003 and 2004. In connection with
the issuance of its report of the independent registered public accounting firm,
Thomas  Leger  & Co.  LLP  reported  to our  Board  of  Directors  two  material
weaknesses  under  standards   established  by  the  Public  Company  Accounting
Oversight Board regarding some elements of our system of internal controls. They
noted the following material deficiencies:

(i)  The Company's reported financial  statements relating to the acquisition of
     E-Sea Biomedical  Engineering Co. International,  Ltd. were indicative of a
     material  weakness in controls over closing  procedures  and the accounting
     for  non-routine  transactions.  We determined  the Company  lacked certain
     procedures  and  required   expertise   needed  to  properly   account  for
     non-routine  transactions  (such as acquisitions  of other  businesses) and
     preparation of its required  financial  statement  disclosure in accordance
     with U.S. G.A.A.P. and SEC rules and regulations.

(ii)The Company has  restated  its  consolidated  financial  statements  for the
     year-ended  December  31, 2002 to reflect  merger costs of $867,411 as post
     acquisition  activity.  The  restatement is considered a material  weakness
     over financial reporting as defined by the PCAOB.

We have  conducted  a review of the errors  requiring  restatement,  including a
separate  review by our board of directors to determine  what remedial  measures
were  necessary.  We believe  our  management  has taken or is in the process of
taking the steps necessary to correct the errors and avoid similar errors in the
future.  One important  measure is to have our President also become involved in
the review of our internal controls and procedures.

As  required  by SEC rule  13a-15(b)  we  conducted  an  evaluation,  under  the
supervision and with the  participation  of our management,  including our Chief
Executive Officer, President and Vice President of Finance, the effectiveness of
the design and operation of our disclosure  controls and procedures.  Based upon
that evaluation,  the Chief Executive  Officer,  President and Vice President of
Finance  concluded that our disclosure  controls and procedures are effective in
timely  alerting  them to material  information  relating to us  (including  our
subsidiaries) required to be included in our periodic SEC filings.

Our new independent  accountants,  Ham Langston & Brezina LLP conducted an audit
of our financial  statements  for 2005.  In connection  with the issuance of its
report to the Board of  Directors,  Ham  Langston  & Brezina  LLP  reported  two
material weaknesses under standards established by the Public Company Accounting
Oversight Board regarding some elements of our system of internal controls. They
noted the following specific material deficiencies.

(i)  The Company lacked the required  expertise  needed to properly  account for
     non-routine  transactions  (such as the acquisition of other businesses and
     preparation of its required  financial  statement  disclosure in accordance
     with U.S.G.A.A.P. and SEC rules and regulations.

(ii) The Company has  restated its  consolidated  financial  statements  for the
     year-ended December 31, 2004 to reflect the accounting for derivatives. The
     restatement is considered a material  weakness over financial  reporting as
     defined by the PCAOB.

Other than the foregoing  initiatives,  there were no significant changes in our
internal controls or to our knowledge, in other factors that could significantly
affect such internal controls subsequent to the date of their evaluation.

While we have taken or are in the process of taking the foregoing steps in order
to address the  adequacy of our  disclosure  controls  and  procedures,  and, in
addition,  to develop  and  implement  a formal  set of  internal  controls  and
procedures  for financial  reporting in accordance  with SEC's proposed rules to
adopt the internal  control report  requirements  included in Section 404 of the
Sarbanes-Oxley  Act of 2002,  the  efficiency of the steps we have taken to date
and the steps we are still in the process of  completing is subject to continued
management  review  supported  by  confirmation  and testing by our internal and
external  auditors.  As a result,  it is likely that additional  changes will be
made to our internal controls.

<PAGE>


                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

     As of May 16, 2006, we were a party to one legal proceeding. The proceeding
involves a lawsuit brought by Western Securities  Corporation seeking payment of
$500,942 on two outstanding promissory notes, one to Market Management, Inc. and
one to Thomas L. Tedrow plus accrued  interest  since July 11, 2004,  attorney's
fees,  cost of  collection  and other  court  costs.  This  cause of action  was
initially filed in Federal  District Court in the Eastern District of Louisiana.
The  Company  filed a Motion to Dismiss  for lack of  personal  jurisdiction  or
alternatively a Motion to Dismiss for lack of venue.

In October 2005,  the Court  granted the Company's  motion for a change of venue
and the  case was  moved to the  Southern  District  Court of Texas in  Houston,
Texas.  The Company believes that the case is without merit and the basis of the
promissory  note  involves  expenditures  not  made  on  the  company's  behalf.
Furthermore,  the Company has significant  counterclaims that it plans to assert
against Mr. Tedrow and Market  Management,  Inc.. The Company believes that this
matter will be resolved  during  2006 and that the Company  will  prevail on all
counts.

The  State  Court in New York  dismissed  a cause of  action,  filed by  Bristol
Investments Limited against the Company, on February 14, 2006. On March 30, 2006
without stating a new cause of action,  Bristol Investments Limited re-filed the
cause of action against the Company.

As of May 15,  2006,  there are no other  causes of action  pending  against the
Company.


Item 2.  Changes in Securities

     None

Item. 3. Defaults Upon Senior Securities

     None

Item 4.  Submissions 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
        None


                                    Signature

Pursuant  to the  requirement  of the  Securities  Exchange  Act  of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto authorized.

                                      10
<PAGE>



                                  ETERNAL TECHNOLOGIES GROUP, INC.


                                /s/ Jiansheng Wei
                                  -------------------------------------
May 25, 2006                        Jiansheng Wei, Chief Executive Officer


                               /s/ Zheng Shen
May 25, 2006                      -------------------------------------
                                   Zheng Shen, Chief Financial Officer


                                       11
<PAGE>


                                 CERTIFICATIONS


Certification by Jiansheng Wei
Pursuant to Securities Exchange Act Rule 13a-14(a)

I, Jiansheng Wei, certify that:

1.   I  have  reviewed  this   quarterly   report  on  Form  10-QSB  of  Eternal
     Technologies Group, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material  fact or omit to state a  material  fact  necessary  to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the registrant as of, and for, the periods presented in this report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules  13a-15(e) and 15d-15(e))  and internal  control over
     financial  reporting  (as  defined  in  Exchange  Act Rules  13a-15(f)  and
     15d-15(f)) for the registrant and have:

(a)  Designed such disclosure controls and procedures, or caused such disclosure
     controls and  procedures to be designed  under our  supervision,  to ensure
     that  material  information  relating  to  the  registrant,  including  its
     consolidated  subsidiaries,  is made  known to us by  others  within  those
     entities,  particularly  during the  period in which  this  report is being
     prepared;

(b)Designed such  internal  control  over  financial  reporting,  or caused such
     internal  control  over  financial  reporting  to  be  designed  under  our
     supervision,  to provide reasonable  assurance regarding the reliability of
     financial  reporting  and  the  preparation  of  financial  statements  for
     external  purposes  in  accordance  with  generally   accepted   accounting
     principles;

(c)  Evaluated the  effectiveness  of the registrant's  disclosure  controls and
     procedures  and  presented  in  this  report  our  conclusions   about  the
     effectiveness of the disclosure  controls and procedures,  as of the end of
     the period covered by this report based on such evaluation; and

(d)  Disclosed in this report any change in the  registrant's  internal  control
     over financial  reporting that occurred during the registrant's most recent
     fiscal  quarter (the  registrant's  fourth fiscal quarter in the case of an
     annual report) that has  materially  affected,  or is reasonably  likely to
     materially  affect,  the  registrant's   internal  control  over  financial
     reporting; and

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent evaluation of internal control over financial reporting, to
     the registrant's auditors and the audit committee of the registrant's board
     of directors (or persons performing the equivalent functions):

(a)  All  significant  deficiencies  and  material  weaknesses  in the design or
     operation of internal control over financial reporting which are reasonably
     likely to adversely  affect the  registrant's  ability to record,  process,
     summarize and report financial information; and

(b)  Any fraud,  whether or not  material,  that  involves  management  or other
     employees who have a significant role in the registrant's  internal control
     over financial reporting.

Date: May 25, 2006


/s/ JIANSHENG WEI
-----------------------
Jiansheng Wei
Chief Executive Officer

                                       12
<PAGE>



                                                                   EXHIBIT 31.2
Certification by Zheng Shen
Pursuant to Securities Exchange Act Rule 13a-14(a)

I, Zheng Shen, certify that:

1.   I  have  reviewed  this   quarterly   report  on  Form  10-QSB  of  Eternal
     Technologies Group, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material  fact or omit to state a  material  fact  necessary  to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the registrant as of, and for, the periods presented in this report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules  13a-15(e) and 15d-15(e))  and internal  control over
     financial  reporting  (as  defined  in  Exchange  Act Rules  13a-15(f)  and
     15d-15(f)) for the registrant and have:

(a)  Designed such disclosure controls and procedures, or caused such disclosure
     controls and  procedures to be designed  under our  supervision,  to ensure
     that  material  information  relating  to  the  registrant,  including  its
     consolidated  subsidiaries,  is made  known to us by  others  within  those
     entities,  particularly  during the  period in which  this  report is being
     prepared;

(b)Designed such  internal  control  over  financial  reporting,  or caused such
     internal  control  over  financial  reporting  to  be  designed  under  our
     supervision,  to provide reasonable  assurance regarding the reliability of
     financial  reporting  and  the  preparation  of  financial  statements  for
     external  purposes  in  accordance  with  generally   accepted   accounting
     principles;

(c)  Evaluated the  effectiveness  of the registrant's  disclosure  controls and
     procedures  and  presented  in  this  report  our  conclusions   about  the
     effectiveness of the disclosure  controls and procedures,  as of the end of
     the period covered by this report based on such evaluation; and

(d)  Disclosed in this report any change in the  registrant's  internal  control
     over financial  reporting that occurred during the registrant's most recent
     fiscal  quarter (the  registrant's  fourth fiscal quarter in the case of an
     annual report) that has  materially  affected,  or is reasonably  likely to
     materially  affect,  the  registrant's   internal  control  over  financial
     reporting; and

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent evaluation of internal control over financial reporting, to
     the registrant's auditors and the audit committee of the registrant's board
     of directors (or persons performing the equivalent functions):

(a)  All  significant  deficiencies  and  material  weaknesses  in the design or
     operation of internal control over financial reporting which are reasonably
     likely to adversely  affect the  registrant's  ability to record,  process,
     summarize and report financial information; and

(b)  Any fraud,  whether or not  material,  that  involves  management  or other
     employees who have a significant role in the registrant's  internal control
     over financial reporting.

Date: May 25, 2006


/s/ ZHENG SHEN
-----------------------
Zheng Shen
Chief Financial Officer


                                       13
<PAGE>


---------------------------------------------------------------------------


                                                                  EXHIBIT 32.1

                   Certification of Periodic Financial Report
                       Pursuant to 18 U.S.C. Section 1350

For purposes of 18 U.S.C.  Section 1350,  as adopted  pursuant to Section 906 of
the  Sarbanes-Oxley  Act of 2002,  the  undersigned,  Jiansheng  Wei,  the chief
executive officer of Eternal  Technologies  Group, Inc. (the "Company"),  hereby
certifies that, to his knowledge:

(i)  the  Quarterly  Report on Form  10-QSB of the  Company  for the year  ended
     December 31, 2005, as filed with the Securities and Exchange  Commission on
     the date hereof (the  "Report")  fully  complies with the  requirements  of
     section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)the  information  contained in the Report fairly  presents,  in all material
     respects, the financial condition and results of operations of the Company.

Date: May 25, 2006

/s/ JIANSHENG WEI
-----------------------
Jiansheng Wei
Chief Executive Officer


                                       14
<PAGE>


                                                                EXHIBIT 32.2



----------------------------------------------------------------------------
                   Certification of Periodic Financial Report
                       Pursuant to 18 U.S.C. Section 1350

For purposes of 18 U.S.C.  Section 1350,  as adopted  pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002, the undersigned, Zheng Shen, the chief financial
officer of Eternal  Technologies  Group, Inc. (the "Company"),  hereby certifies
that, to his knowledge:

(i)  the  Quarterly  Report on Form  10-QSB of the  Company  for the year  ended
     December 31, 2005, as filed with the Securities and Exchange  Commission on
     the date hereof (the  "Report")  fully  complies with the  requirements  of
     section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) the information  contained in the Report fairly  presents,  in all material
     respects, the financial condition and results of operations of the Company.

Date: May 25, 2006

/s/ Zheng Shen
-----------------------
Zheng Shen
Chief Financial Officer