U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549




                                   FORM 10-QSB



[X]      Quarterly report pursuant to section 13 or 15(d) of the Securities
         Exchange Act of 1934

         For the quarter period ended March 31, 2000
                                      --------------

[  ]     Transition report pursuant to section 13 or 15(d) of the Securities
         Exchange Act of 1934

         For the transition period from ___________ to _____________



                         OVM INTERNATIONAL HOLDING CORP.
        (Exact Name of Small Business Issuer as specified in its Charter)




         Nevada                                             88-0344135
         ------                                             ----------
(State or other Jurisdiction                              (IRS Employer
      of incorporation)                                 Identification No.)



                             West 516 Sprague Avenue
                            Spokane, Washington 99204
                     (Address of Principal Executive Office)

                                 (509) 744-8590
                (Issuer's Telephone Number, Including Area Code)



Check whether the registrant: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 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 requirements for the past 90 days.

(1)      Yes    X        No                  (2)      Yes   X      No
               ---               ------                    ---        ------

State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date: 12,050,000 shares of common stock,
$0.0001 par value, as of May 15, 2000.

Traditional Small Business Disclosure Format:   Yes   [   ]    No       [X]

<PAGE>

                         PART I - FINANCIAL INFORMATION

                          ITEM 1. FINANCIAL STATEMENTS

                OVM INTERNATIONAL HOLDING CORP. AND SUBSIDIARIES

              CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
               FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
             (Amounts in thousands, except share and per share data)

<TABLE>
<CAPTION>

                                                                           Three Months Ended March 31,
                                                                           ----------------------------
                                                                            2000        1999        2000
                                                                            ----        ----        ----
                                                                             RMB         RMB         US$
<S>                                                                       <C>         <C>          <C>
NET SALES                                                                 20,603      35,783       2,488

COST OF SALES                                                            (11,506)    (19,163)     (1,389)
                                                                      ----------  ----------  ----------
GROSS PROFIT                                                               9,097      16,620       1,099

SELLING AND ADMINISTRATIVE
  EXPENSES                                                                (8,968)    (11,641)     (1,083)

INTEREST EXPENSES                                                           (940)       (943)       (114)

INTEREST INCOME                                                                8          85           1

OTHER INCOME/(EXPENSES), NET                                                 (30)        397          (4)
                                                                      ----------  ----------  ----------
INCOME/(LOSS) BEFORE INCOME TAXES                                           (833)      4,518        (101)

INCOME TAXES                                                                 (72)       (744)         (8)
                                                                      ----------  ----------  ----------
                                                                            (905)      3,774        (109)

MINORITY INTERESTS                                                           118      (1,260)         14
                                                                      ----------  ----------  ----------
                                                                            (787)      2,514         (95)

EQUITY IN EARNINGS OF EQUITY
  INVESTEE                                                                    11          35           1
                                                                      ----------  ----------  ----------
NET INCOME/(LOSS)                                                           (776)      2,549         (94)
                                                                      ==========  ==========  ==========

BASIC AND DILUTED EARNINGS/(LOSS)
  PER SHARE                                                                (0.06)       0.21       (0.01)
                                                                      ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER OF
    SHARES OUTSTANDING                                                12,050,000  12,050,000  12,050,000
                                                                      ==========  ==========  ==========
</TABLE>


See notes to condensed consolidated financial statements.

                                       2
<PAGE>
                OVM INTERNATIONAL HOLDING CORP. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                   AS OF MARCH 31, 2000 AND DECEMBER 31, 1999
                             (Amounts in thousands)

<TABLE>
<CAPTION>
                                                            March 31,     December 31,         March 31,
                                                                 2000             1999              2000
                                                                 ----             ----              ----
                                                                  RMB              RMB               US$
                                               Notes      (Unaudited)           (Note)       (Unaudited)
<S>                                                            <C>              <C>                <C>
ASSETS
Current assets:
  Cash and bank balances                                       14,444           22,859             1,744
  Accounts receivable                                          29,676           33,804             3,584
  Inventories                                    2             34,291           32,584             4,141
  Prepayments, deposits and other                              14,848            9,313             1,794
  Due from related parties                                     37,821           36,360             4,568
  Assets held for sale                                          6,609            6,609               798
                                                           ----------       ----------        ----------
Total current assets                                          137,689          141,529            16,629

Property, machinery and equipment, net           3             36,712           16,143             4,433
Investments                                                     8,614            8,332             1,040
Other assets:
  Deferred asset                                                4,923            4,661               595
  Staff housing loans                                           2,821            2,831               341
  Intangible assets                                             3,318            3,352               401
                                                           ----------       ----------        ----------
Total assets                                                  194,077          176,848            23,439
                                                           ==========       ==========        ==========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Notes payable                                                27,000           28,000             3,261
  Current portion of long term debt                               360              360                43
  Current portion of capital lease                                252                -                31
  Accounts payable                                             26,231           25,529             3,168
  Advance payments by customers                                10,286            7,775             1,242
  Other payables and accrued liabilities                       13,803           15,062             1,667
  Taxes payable                                                 4,785            5,873               578
                                                           ----------       ----------        ----------
Total current liabilities                                      82,717           82,599             9,990
Long term debt net of current portion                             690              690                83
Capital lease obligations                                      18,000                -             2,174
                                                           ----------       ----------        ----------
Total liabilities                                             101,407           83,289            12,247
                                                           ----------       ----------        ----------

Minority interests in consolidated                             32,318           32,436             3,903
                                                           ----------       ----------        ----------

Shareholders' equity:
  Common stock, 40,000,000 shares, par
    US$0.0001 authorized; 12,050,000 shares,
    issued and outstanding                                         10               10                 1
Additional paid-in capital                                     30,795           30,795             3,719
Retained earnings                                              29,481           30,257             3,561
Accumulated other comprehensive income                             66               61                 8
                                                           ----------       ----------        ----------
Total shareholders' equity                                     60,352           61,123             7,289
                                                           ----------       ----------        ----------

Total liabilities and shareholders' equity                    194,077          176,848            23,439
                                                           ==========       ==========        ==========

</TABLE>

Note: The balance sheet at December 31, 1999 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.

See notes to condensed consolidated financial statements.


                                       3
<PAGE>

                OVM INTERNATIONAL HOLDING CORP. AND SUBSIDIARIES

          CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY AND
                        COMPREHENSIVE INCOME (UNAUDITED)
                    FOR THE THREE MONTHS ENDED MARCH 31, 2000
                             (Amounts in thousands)

<TABLE>
<CAPTION>

                                                                              Accumulated
                                                                                    Other
                                    Common      Additional       Retained   Comprehensive
                                     Stock         Paid-in       Earnings          Income          Total
                                    -----       ----------       --------   ------------          ------
                                       RMB             RMB            RMB             RMB            RMB
<S>                                     <C>         <C>            <C>                 <C>        <C>
Balance at January 1, 2000              10          30,795         30,257              61         61,123

Comprehensive income:
  Net loss for  the period               -               -           (776)              -           (776)
  Currency          translation          -               -              -               5              5
                                    ------          ------         ------          ------         ------
Total comprehensive income                                                                          (771)
                                                                                                  ------

Balance at March 31, 2000               10          30,795         29,481              66         60,352
                                    ======          ======         ======          ======         ======

</TABLE>

See notes to condensed consolidated financial statements.


                                       4
<PAGE>

                OVM INTERNATIONAL HOLDING CORP. AND SUBSIDIARIES

           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
               FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
                             (Amounts in thousands)

<TABLE>
<CAPTION>

                                                                       Three months ended March 31,
                                                                       ----------------------------
                                                                 2000             1999              2000
                                                                 ----             ----              ----
                                                                  RMB              RMB               US$
<S>                                                            <C>              <C>                 <C>
Net cash used in operating activities                          (4,691)          (3,498)             (567)
                                                           ----------       ----------        ----------

Cash flows from investing activities:
  Acquisition of property, machinery and equipment             (2,682)            (835)             (324)
  Disposal of property, machinery and equipment                     -                3                 -
                                                           ----------       ----------        ----------
Net cash used in investing activities                          (2,682)            (832)             (324)
                                                           ----------       ----------        ----------

Cash flows from financing activities:
  Repayments of notes payable                                  (1,000)          (1,000)             (121)
  Increase of long term related party loan                          -              548                 -
  Principal payments under capital lease obligations              (42)               -                (5)
                                                           ----------       ----------        ----------
Net cash used in financing activities                          (1,042)            (452)             (126)
                                                           ----------       ----------        ----------

Net decrease in cash and cash equivalent                       (8,415)          (4,782)           (1,017)
Cash and cash equivalent, at beginning of period               22,859           25,419             2,761
                                                           ----------       ----------        ----------
Cash and cash equivalent, at end of period                     14,444           20,637             1,744
                                                           ==========       ==========        ==========
Noncash investing activities:
  Property, machinery and equipment
  acquired through capital
  lease obligations                                            18,314                -             2,212
                                                           ==========       ==========        ==========
</TABLE>

See notes to condensed consolidated financial statements.


                                       5

<PAGE>
                OVM INTERNATIONAL HOLDING CORP. AND SUBSIDIARIES

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                             (Amounts in thousands)


1.       BASIS OF PRESENTATION

         The accompanying unaudited condensed consolidated financial statements
         have been prepared in accordance with generally accepted accounting
         principles for interim financial information and with the instructions
         to Form 10-QSB and Article 10 of Regulation S-X. Accordingly, they do
         not include all of the information and footnotes required by generally
         accepted accounting principles for complete financial statements. In
         the opinion of management, all adjustments (consisting of normal
         recurring accruals) considered necessary for a fair presentation have
         been included. Operating results for the three month period ended March
         31, 2000, are not necessarily indicative of the results that may be
         expected for the year ending December 31, 2000.

         For the convenience of the reader, amounts in Renminbi ("RMB") have
         been translated into United States dollars ("US$") at the rate of
         US$1.00 = RMB8.28 quoted by the People's Bank of China as at March 31,
         2000. No representation is made that the RMB amounts could have been,
         or could be, converted into US$ at that rate.

2.       INVENTORIES
<TABLE>
<CAPTION>
                                                                         March 31,         December 31,
                                                                              2000                 1999
                                                                              ----                 ----
                                                                               RMB                  RMB
<S>                                                                         <C>                   <C>
         Raw materials                                                      10,697                9,676
         Work in progress                                                    7,393               10,722
         Finished goods                                                     16,201               12,186
                                                                        ----------           ----------
                                                                            34,291               32,584
                                                                        ==========           ==========
</TABLE>

3.       PROPERTY, MACHINERY AND EQUIPMENT, NET
<TABLE>
<CAPTION>

                                                                         March 31,         December 31,
                                                                              2000                 1999
                                                                              ----                 ----
                                                                               RMB                  RMB
<S>                                                                         <C>                     <C>
         At cost:
           Buildings                                                        11,689                  741
           Plant and machinery                                              35,284               25,236
                                                                        ----------           ----------
                                                                            46,973               25,977
                                                                        ----------           ----------
         Accumulated depreciation:
           Buildings                                                           187                   41
           Plant and machinery                                              10,074                9,793
                                                                        ----------           ----------
                                                                            10,261                9,834
                                                                        ----------           ----------
         Property, machinery and equipment, net                             36,712               16,143
                                                                        ==========           ==========
</TABLE>


                                       6
<PAGE>

4.       MATERIAL AGREEMENTS

         In January 2000, the Company entered into various agreements with
         Liuzhou OVM Joint Stock Company Limited (the "JV Partner"), which has
         resulted in the following:

         a.  Termination of the Company's lease of land, buildings, property and
             equipment from the JV Partner.

         b.  Allocation of Company personnel to the JV Partner resulting in the
             reduction of Company personnel and financial assets related
             thereto.

         c.  Termination of the Company's rights to use certain intangible
             assets, including the "OVM" trademark.

         d.  Transfer of approximately 1/3 of the Company's inventories to the
             JV Partner at normal selling prices excluding value added tax at
             17%.

         e.  Transfer of certain fixed assets included in Assets held for Sale
             at December 31, 1999.


         On December 11, 1999, in anticipation of the termination of the
         Company's lease of land, buildings, property and equipment from the JV
         Partner, the Company entered into a new lease agreement with an
         unaffiliated third party for the lease of land and buildings in which
         the Company's main operating facilities are located. The term of the
         lease is 25 years, beginning January 1, 2000, with annual rent of RMB1
         million for the first five years and escalating at 1% each year
         thereafter. In addition, on December 12, 1999, the Company entered into
         a lease with another unaffiliated third party for the lease of
         production and transportation equipment. The term of the lease is 20
         years beginning January 1, 2000, with annual rent of approximately
         RMB767,000. Both of the above leases are to be treated as capital
         leases.

         In January 2000, approximately 300 of the Company's employees left
         the Company and became employees of the JV Partner. Included in
         prepayments, deposits and other receivables, deferred assets and staff
         housing loans at March 31, 2000 was approximately RMB800,000,
         RMB2,400,000 and RMB1,946,000, respectively related to these employees.
         These assets are expected to be transferred to the JV Partner in the
         second quarter of 2000.

         Since January 2000, the Company's products are being marketed under a
         new trademark ("HVM"), which is in the process of being registered by a
         related company, Shenzhen Hong Da Technical Company Limited ("Hong
         Da"). Hong Da has granted the Company the exclusive right to use the
         HVM trademarks, without cost.

         At December 31, 1999, the Company had identified certain buildings,
         plant and equipment to be transferred to the JV Partner and these are
         included in assets held for sale at March 31, 2000. As of May 19, 2000,
         the Company and the JV Partner are still negotiating the quantities and
         values of inventories, and values of buildings, property and equipment
         to be transferred to the JV Partner. However, management believes that
         the value of assets transferred will not be less than their carrying
         values at March 31, 2000.


                                       7
<PAGE>

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


THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO THREE MONTHS ENDED MARCH 31, 1999

         NET SALES AND GROSS PROFIT. Net sales for the first quarter of fiscal
2000 decreased by RMB15,180,000 (US$1,833,000) or 42.4% to RMB20,603,000
(US$2,488,000), compared to RMB35,783,000 (US$4,322,000) for the corresponding
period in 1999. The decrease was mainly due to the Company's relocation to new
production and office facilities. It is expected that additional contracts will
be completed during the second quarter and that corresponding sales will be
reflected in that period.

         Gross profit decreased by RMB7,523,000 (US$909,000) or 45.3% to
RMB9,097,000 (US$1,099,000) for the first quarter of fiscal 2000 compared to
RMB16,620,000 (US$2,007,000) in the corresponding period of the prior year. The
decrease was mainly due to the decrease in sales during the current period.

         SELLING AND ADMINISTRATIVE EXPENSES. Selling and administrative
expenses for the first quarter of fiscal 2000 decreased by RMB2,673,000
(US$323,000) or 23.0% to RMB8,968,000 (US$1,083,000), compared to RMB11,641,000
(US$1,406,000) for the corresponding period in 1999. The decrease was mainly due
to a decrease in selling expenses as a result of a decrease in sales, and a
decrease in salary expenses as some of the staff was transferred to the PRC
joint venture partner.

         INTEREST INCOME/EXPENSE. Interest expense for the first quarter of
fiscal 2000 was RMB940,000 (US$114,000) which was comparable to RMB943,000
(US$114,000) in the corresponding period of the prior year. The Company has
financed its acquisition of property, machinery and equipment in the first
quarter of fiscal 2000 by capital leases totaling RMB18,314,000 (US$2,212,000).
Although there was a decrease in interest expense in the first quarter of fiscal
2000 on notes payable, resulting from the decrease in average bank borrowing
rates and outstanding notes payable, it was offset by the interest expense
arising from the capital lease obligations. Interest income deceased
significantly from RMB85,000 (US$10,000) for the first quarter of fiscal 1999
compared to RMB8,000 (US$1,000) for the corresponding period of fiscal 2000. The
decrease was due to a decrease in average bank balances during the current
period.

         OTHER INCOME/(EXPENSES), NET Other income for the first quarter of 1999
amounted to RMB397,000 (US$48,000), and mainly represented income received on
rental of machinery to certain related parties. Expenses recorded by the Company
for the first quarter of 2000 amounted to RMB30,000 (US$4,000) as the Company
made a donation to a charitable organization.


                                       8
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

         The Company's primary liquidity needs are to fund inventories, accounts
receivable and capital expenditures. The Company has financed its working
capital requirements through a combination of internally generated cash, short
term bank loans and advances from affiliates.

         The Company had a working capital surplus of RMB54,972,000
(US$6,639,000) as of March 31, 2000 compared to RMB58,930,000 (US$7,117,000) as
of December 31, 1999. Net cash used in operating activities for the three months
ended March 31, 2000 was RMB4,691,000 (US$567,000) as compared to RMB3,498,000
(US$422,000) for the corresponding period in 1999. Net cash flows from the
Company's operating activities are attributable to the Company's income and
changes in operating assets and liabilities.

         The Company's capital expenditure on property, machinery and equipment
for the first quarter of fiscal 2000 was RMB18,314,000 (US$2,212,000), which was
financed by capital leases.

         There has been no other significant change in financial condition and
liquidity since the fiscal year ended December 31, 1999. The Company believes
that internally generated funds together with available bank credit, will be
sufficient to satisfy its anticipated working capital needs for at least the
next twelve months.


YEAR 2000 ISSUE

         The Year 2000 issue is the result of information technology systems and
embedded systems using a two-digit format, as opposed to four digits, to
indicate the year. The Company and its subsidiaries use a limited amount of
computer software primarily in connection with their accounting and financial
reporting systems. Such programs have been upgraded so that they are year 2000
compatible. In addition to software issues, certain of the computer hardware of
the Company and its subsidiaries have been replaced with more current
technology.

         As of March 31, 2000, the Company has not experienced any disruptions
or failures to its normal operations as a result of the transition into calendar
year 2000.


                                       9
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS:

         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)  Exhibit 27 - Financial Data Schedule (Electronic filing only).

(b) During the three months ended March 31, 2000, the Company filed no current
Reports on Form 8-K.



                                       10
<PAGE>


                                   SIGNATURES


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


                                        OVM INTERNATIONAL HOLDING CORP.





May 19, 2000                            By:/s/ Ching Lung Po
                                           ----------------------------------
                                           Ching Lung Po, President



                                        By:/s/ Deng Xiao Qiong
                                           -----------------------------------
                                           Deng Xiao Qiong, Principal Financial
                                           and Accounting Officer




                                       11