`UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

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

                  For the quarterly period ended June 30, 2004

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

                    For the transition period from
                                                   -------------

                        Commission file number 000-26169


                                Chinawe.com Inc.
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


                California                                   95-462728
---------------------------------------------     ------------------------------
(State or other jurisdiction of incorporation            (I.R.S. Employer
or organization)                                        Identification No.)

                                Chinawe.com Inc.
                            c/o Hartman & Craven LLP
                            Attn: Joel I. Frank, Esq.
                               488 Madison Avenue
                            New York, New York 10022
--------------------------------------------------------------------------------
                    (Address of principal executive offices)


                               c/o (212) 753-7500
--------------------------------------------------------------------------------
                           (Issuer's telephone number)

The number of shares outstanding of the issuer's common stock, par value $.001
per share, as of August 20, 2004 was 43,800,000.

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





                                Chinawe.com Inc.

PART I - FINANCIAL INFORMATION                                          Page No.

Item 1.  Financial Statements.

         Consolidated Condensed Balance Sheet as of June 30, 2004             3
         (Unaudited)

         Consolidated Condensed Statements of Operations for the Three        4
         Months and Six Months Ended June 30, 2004 (Unaudited)

         Consolidated Condensed Statements of Shareholders' Deficit and       5
         Comprehensive Income for the Six Months Ended June 30, 2004
         (Unaudited)

         Consolidated Condensed Statements of Cash Flows for the Six          6
         Months Ended June 30, 2004 and 2003 (Unaudited)

         Notes to Consolidated Condensed Financial Statements for the         7
         Six Months Ended June 30, 2004 and 2003 (Unaudited)

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

Item 3.  Controls and Procedures                                             21

PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K                                    22

SIGNATURES                                                                   23




                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

                                CHINAWE.COM INC.
                      CONSOLIDATED CONDENSED BALANCE SHEET
                                  JUNE 30, 2004
                                   (UNAUDITED)



                                                               Note                         RMB           US$
                                                                                    ---------------   ------------

ASSETS
Current assets:
   Cash and cash equivalents                                                                554,660         66,935
   Accounts receivable, net of allowance
         of doubtful accounts of RMB17,176                                                  110,621         13,349
   Other current assets                                                                      43,452          5,244
                                                                                    ---------------   ------------
      Total current assets                                                                  708,733         85,528
                                                                                    ---------------   ------------
Property, plant and equipment, net                             4                             46,761          5,643
                                                                                    ---------------   ------------

TOTAL ASSETS                                                                                755,494         91,171
                                                                                    ===============   ============

LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
   Customer deposits                                                                        129,516         15,630
   Accrued expenses and other liabilities                                                 1,009,305        121,800
   Current portion of long term debt                           5                             51,825          6,254
   Advances from related parties                               6                          7,344,618        886,325
                                                                                    ---------------   ------------

   Total current liabilities                                                              8,535,264      1,030,009
                                                                                    ---------------   ------------
Non-current liabilities
   Long term debt                                              5                             26,960          3,253
                                                                                    ---------------   ------------

   Total liabilities                                                                      8,562,224      1,033,262
                                                                                    ---------------   ------------

Commitments and Contingencies
Shareholders' deficit:
   Preferred stock, par value US$0.001 per share,
      authorized 20,000,000 shares, none issued
   Common stock, par value US$0.001 per share,
      authorized 100,000,000 shares; issued and
      outstanding 43,800,000 shares as of
      June 30, 2004                                                                         351,491         42,417
   Additional paid-in capital                                                               712,211         85,947
   Accumulated losses                                                                    (8,876,390)    (1,071,174)
   Accumulated other comprehensive income                                                     5,958            719
                                                                                    ---------------   ------------
   Total shareholders' deficit                                                           (7,806,730)      (942,091)
                                                                                    ---------------   ------------
   TOTAL LIABILITIES AND
    SHAREHOLDERS' DEFICIT                                                                   755,494         91,171
                                                                                    ===============   ============


See notes to the financial statements.


                                       3



                                CHINAWE.COM INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
            THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2004 AND 2003
                                   (UNAUDITED)



                                                  Three months ended June 30,                    Six months ended June 30,
                                         --------------------------------------------   --------------------------------------------
                                Note           2004          2003           2004             2004          2003           2004
                                               RMB           RMB            US$              RMB           RMB            US$

Income:
On-line services                              76,457        119,031          9,227          143,536       249,058          17,321
Asset management services                  1,734,791              -        209,349        1,734,791             -         209,349
                                         -------------- -------------- --------------   -------------- -------------- --------------
                                           1,811,248        119,031        218,576        1,878,327       249,058         226,670
                                         -------------- -------------- --------------   -------------- -------------- --------------
Administrative and general
 expenses                                   (415,726)      (391,049)       (50,172)        (842,894)     (803,801)       (101,718)
                                         -------------- -------------- --------------   -------------- -------------- --------------
Profit(Loss) from operations               1,395,522       (272,018)       168,404        1,035,433      (554,743)        124,952
Loan interest                                (43,949)        (1,804)        (5,304)        (109,536)       (3,764)        (13,218)
Other income                                      13             15              2           21,280            25           2,568
                                         -------------- -------------- --------------   -------------- -------------- --------------
Profit(Loss) before income
taxes                                      1,351,586       (273,807)       163,102          947,177      (558,482)        114,302

Income taxes                     7                 -              -              -                -             -               -
                                         -------------- -------------- --------------   -------------- -------------- --------------
Net profit (loss)                          1,351,586       (273,807)       163,102          947,177      (558,482)        114,302
                                         ============== ============== ==============   ============== ============== ==============
Basic and diluted net

  profit (loss) per share                       0.03          (0.01)         0.004             0.02        (0.014)           0.00
                                         ============== ============== ==============   ============== ============== ==============
Weighted average shares
  outstanding                             43,800,000     40,000,000     43,800,000       42,505,495    40,000,000      42,505,495
                                         ============== ============== ==============   ============== ============== ==============



See notes to the financial statements.


                                       4



                                CHINAWE.COM INC.
           CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' DEFICIT
                            AND COMPREHENSIVE INCOME
                         SIX MONTHS ENDED JUNE 30, 2004
                                   (UNAUDITED)





                                                                                                  Accumulated
                                        Common stock                                              other             Total
                                ---------------------------   Capital in        Accumulated       comprehensive     shareholders'
                                               Amount         excess of par     losses            income            deficit
                                Shares         RMB            RMB               RMB               RMB               RMB
                                ------------   ------------   ---------------   --------------    ---------------   ---------------

Balances, January 1,
2004                            40,000,000         320,000         (319,198)      (9,823,567)              1,014       (9,821,751)

Issue of shares for
     settlement of loan           3,800,000         31,491         1,031,409                -                  -         1,062,900
Comprehensive income:
   Net profit for the six
   months ended June 30,
   2004                                   -              -                 -          947,177                  -           947,177
   Currency translation
   adjustments                            -              -                 -                -              4,944             4,944
                                ------------   ------------   ---------------   --------------    ---------------   ---------------

   Total comprehensive
   income                                                                                                                  952,121
                                                                                                                    ---------------


Balances, June 30, 2004         43,800,000         351,491           712,211       (8,876,390)             5,958        (7,806,730)
                                ============   ============   ===============   ==============    ===============   ===============

Balances, June 30,
2004-                     US$                       42,417            85,947      (1,071,174)                719         (942,091)
                                               ============   ===============   ==============    ===============   ===============



See notes to the financial statements.


                                       5



                                CHINAWE.COM INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                     SIX MONTHS ENDED JUNE 30, 2004 AND 2003
                                   (UNAUDITED)




                                                           2004          2004          2003
                                                           RMB           US$           RMB
                                                       -----------   -----------    ----------

CASH FLOWS FROM OPERATING ACTIVITIES:
   NET PROFIT (LOSS)                                     947,177       114,302       (558,482)

   Adjustments to reconcile net loss to net cash
     provided by (used in) operating activities:
      Depreciation                                        45,488         5,489         74,511
      Changes in operating assets and liabilities,
       net of effects of acquisition:
         Accounts receivable                             (93,915)      (11,333)       (15,028)
         Other current assets                             20,001         2,414           (725)
         Accrued expenses and other
              current liabilities                        (49,314)       (5,951)      (136,291)
         Customer deposits received                      (45,780)       (5,525)       (36,545)
                                                       -----------   -----------    ----------

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES      823,657        99,396       (672,560)
                                                       -----------   -----------    ----------

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property, plant and equipment                (36,105)       (4,357)          --
                                                       -----------   -----------    ----------

NET CASH USED IN INVESTING ACTIVITIES                    (36,105)       (4,357)          --
                                                       -----------   -----------    ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in loan from a director                        7,357           888
   Advances from related parties                       1,376,528       166,115      1,404,633
   Repayments to related parties                      (1,710,578)     (206,427)      (708,127)
   Repayment of long term debt                           (24,901)       (3,005)       (23,616)
                                                       -----------   -----------    ----------

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES     (351,594)      (42,429)       672,890
                                                       -----------   -----------    ----------

NET INCREASE IN CASH AND CASH EQUIVALENTS                435,958        52,610            330

CASH AND CASH EQUIVALENTS, BEGINNING                     139,218        16,800         18,953

EFFECT OF EXCHANGE RATE ON CASH                          (20,516)       (2,475)         1,325
                                                       -----------   -----------    ----------

CASH AND CASH EQUIVALENTS, ENDING                        554,660        66,935         20,608
                                                       ===========   ===========    ==========

NON-CASH TRANSACTION
Conversion of amount due to a related party
  to 3,800,000 shares of common stock of the Company   1,062,900       128,260             --
                                                       ===========   ===========    ==========



See notes to the financial statements.


                                       6



              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                 FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003
                                   (UNAUDITED)


1.   The interim financial statements


     The interim financial statements have been prepared by Chinawe.com Inc. and
     in the opinion of management, reflect all material adjustments which are
     necessary for a fair statement of results for the interim periods
     presented, including normal recurring adjustments. Certain information and
     footnote disclosures made in the Company's Annual Report on Form 10-KSB for
     the year ended December 31, 2003 (the "10-KSB") have been condensed or
     omitted for the interim statements. It is the Company's opinion that, when
     the interim statements are read in conjunction with the 10-KSB, the
     disclosures are adequate to make the information presented not misleading.
     The results of operations for the six months ended June 30, 2004 and 2003
     are not necessarily indicative of the operating results for the full year.


2.   Organization and merger

     The consolidated condensed financial statements include the accounts of
     Chinawe and the following subsidiaries:

     Officeway Technology Limited ("Officeway"); incorporated in the British
     Virgin Islands in December 1999, formed for the purpose of acquiring (in
     March 2000) its wholly-owned subsidiary, Welcon Info-Tech Limited.

     Welcon Info-Tech Limited ("WIT(HK)"); incorporated in Hong Kong in June
     1997, WIT(HK) provides subscriber services for the production of website
     image and business-to-business e-marketplace for small to medium size
     businesses.

     Welcon Info-Tech Limited ("WIT(GZ)"); a joint venture formed in March 2000.
     WIT(HK) entered into a joint venture agreement with Guangzhou Welcon
     Info-Tech Limited (the "PRC Party") to establish a Sino-foreign
     co-operative joint venture in Guangzhou for a period of 10 years. The PRC
     Party was registered in Guangzhou in March 1998 and is principally engaged
     in providing subscriber services for the development of computer software
     and networking, website design, technical consulting and
     business-to-business e-marketplace for small to medium size businesses. The
     joint venture agreement required WIT(HK) to invest RMB1,056,412 into the
     joint venture. The PRC Party is to provide premises, facilities and
     licensing agreements for an annual service fee of RMB100,000. All profits
     or losses, net of service fees from the joint venture are to be allocated
     to WIT(HK).


                                       7



              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                 FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003
                                   (UNAUDITED)


3.   Summary of significant accounting policies

     (a)  Basis of presentation

          The accompanying financial statements present the financial position
          of the Company, Officeway, WIT (HK) and WIT (GZ) as of June 30, 2004,
          and the results of their operations for the three and six months ended
          June 30, 2004 and 2003 and cash flows for the six months ended June
          30, 2004 and 2003. All inter-company accounts and transactions have
          been eliminated on consolidation.

     (b)  Translation of foreign currencies

          Transactions in currencies other than functional currencies during the
          year are translated into the respective functional currencies at the
          applicable rates of exchange prevailing at the time of the
          transactions. Monetary assets and liabilities denominated in
          currencies other than functional currencies are translated into
          respective functional currencies at the applicable rates of exchange
          in effect at the balance sheet date. Exchange gains and losses are
          recorded in the consolidated statement of operations.

          The translation of the financial statements of subsidiaries whose
          functional currencies are other than RMB into RMB is performed for
          balance sheet accounts using closing exchange rates in effect at the
          balance sheet date and for revenue and expense accounts using an
          average exchange rate during each reporting period. The gains or
          losses resulting from translation are included in shareholders'
          deficit separately as accumulated other comprehensive income or loss.

          Translation of amounts from RMB into US$ for the convenience of the
          reader has been made at the Exchange Rate on June 30, 2004 of US$1.00
          = RMB8.2866. No representation is made that the RMB amounts could have
          been, or could be, converted into United States dollars at that rate
          on June 30, 2004 or at any other date.


     (c)  Going concern consideration

          Details of the Company's ability to continue as a going concern are
          set out in Item 2 of this Form 10-QSB under the heading "Management's
          Discussion and Analysis or Plan of Operation-Liquidity and Capital
          Resources."



                                       8


              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                 FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003
                                   (UNAUDITED)

4.   Property, plant and equipment

                                                    June 30, 2004
                                          -----------------------------------
                                                RMB                  US$
                                          ---------------    ----------------
     At cost:
     Computer equipment                           188,142              22,704
     Leasehold improvement                         40,905               4,936
     Motor vehicle                                346,158              41,773
                                          ---------------    ----------------
                                                  575,205              69,413

     Accumulated depreciation                    (528,444)            (63,770)
                                          ----------------   -----------------

                                                   46,761               5,643
                                          ===============    ================


5.   Long term debt

     Long term debt consists of a bank loan with RMB127,936 outstanding at June
     30, 2004. The loan is unsecured, due in December 2005, bears interest at
     5.31% per annum and is repayable in monthly installments of RMB4,563.
     Maturities under the loan are as follows:

                  Year ending                 Amount
                  June 30                      RMB                   US$
                  -----------              ------------           ---------

                     2005                     51,825                6,254
                     2006                     26,960                3,253
                                           ------------           ---------
                                              78,785                9,507
                                           ============           =========

6.   Related party transactions

     The balances with related parties are as follows:

                                                         June 30, 2004
                                                 ---------------------------
                                                      RMB            US$
                                                 ------------    -----------
     Loan from a director, including interest       1,124,733        135,729
     Advances from related parties:
        Shareholders                                6,191,200        747,134
        PRC party                                      28,685          3,462
                                                 ------------    -----------
                                                    7,344,618        886,325
                                                 ============    ===========


     The loan from a director is unsecured, interest bearing and repayable on
     June 30, 2004. The total interest payable is RMB279,139 (US$33,686).
     Interest expense charged for the six months ended June 30, 2004 was
     RMB107,057 (US$12,919). The maturity date of this loan was extended until
     such time as the Company enters into a definitive Services Agreement with
     Citigroup Financial Products, Inc. See "Item 2.


                                       9


              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                 FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003
                                   (UNAUDITED)


     Management's Discussion and Analysis or Plan of Operation - Liquidity and
     Capital Resources."

     All balances with related parties are unsecured, non-interest bearing and
     repayable on demand. During the six months ended June 30, 2004 and 2003,
     the Company received advances from related parties of RMB1,376,528 and
     RMB1,404,633, respectively. In addition, during the six months ended June
     30, 2004 and 2003, the Company repaid advances of RMB1,710,578 and
     RMB708,127, respectively.

     The Company occupied office space in a building leased by an affiliate of
     the Company. Rent expense for each of the six months ended June 30, 2004
     and 2003 was approximately RMB39,500 and RMB107,580, respectively.

7.   Income taxes

     It is management's intention to reinvest all the income attributable to the
     Company earned by its operations outside the United States. Accordingly, no
     U.S. corporate income taxes are provided for in these financial statements.

     The Company is subject to income taxes on an entity basis on income arising
     in or derived from the tax jurisdiction in which each entity is domiciled.

     Under the current laws of the British Virgin Islands (the "BVI"), dividends
     and capital gains arising from the Company's investments in the BVI are not
     subject to income taxes and no withholding tax is imposed on payments of
     dividends to the Company.

     Companies that carry on business and derive income in Hong Kong are subject
     to Hong Kong profits tax at 17.5%. Companies that carry on business and
     derive income in the PRC are subject to national income tax at 30% and
     local income tax at 3%.

     No income taxes have been provided for WIT(HK) as its assessable profit
     during the six months ended June 30, 2004 is wholly absorbed by unrelieved
     tax losses brought forward from previous years. No income taxes have been
     provided for WIT(GZ) as it has incurred losses since it began operation in
     March 2000.

8.   Stock plan

     On July 25, 2001 the Board of Directors approved the Chinawe.com Inc. 2001
     Restricted Stock Plan (the "Plan"), under which 5,000,000 shares of the
     Company's common stock have been reserved for award under the Plan.
     Pursuant to the Plan, stock awards may be granted to eligible officers,
     directors, employees and consultants of the Company. Through June 30, 2004,
     no awards have been made under the Plan.



                                       10


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

The following discussion should be read in conjunction with the Consolidated
Condensed Financial Statements and Notes thereto appearing elsewhere in this
Form 10-QSB. The following discussion contains forward-looking statements. Our
actual results may differ significantly from those projected in the
forward-looking statements. Factors that might cause future results to differ
materially from those projected in the forward-looking statements include, but
are not limited to, those discussed in "Risk Factors" and elsewhere in this
document.

Overview - Results of Operations

The Company's financial statements for the six months ended June 30, 2004 have
been prepared on a going concern basis, which contemplates the realization of
assets and the settlement of liabilities and commitments in the normal course of
business. For the six months ended June 30, 2004, the Company reported a net
profit of RMB947,177 (US$114,302) and as of June 30, 2004 had a shareholders'
deficit and a working capital deficit of RMB7,806,730 (US$942,091) and
RMB7,826,531 (US$944,481), respectively.

Three Months Ended June 30, 2004 compared to the Three Months Ended June 30,
2003

Revenues. Income for the three months ended June 30, 2004 was RMB1,811,248 as
compared to subscription and service income of RMB119,031 for the three months
ended June 30, 2003, an increase of 1,422%. As a result of focusing on the new
business development in providing services relating to the management of
non-performing loans as discussed in "Liquidity and Capital Resources" below,
revenue earned from the current business has continued to decrease.

Expenses. Administrative and general expenses for the three months ended June
30, 2004 were RMB415,726 as compared to RMB391,049 for the three months ended
June 30, 2003, an increase of 6%. As a result of loans advanced to the Company
by a director in the third quarter of 2003, the Company has incurred interest
expense of RMB42,792 payable to a director in this quarter.

As a consequence of the foregoing, we had a profit from operations for the three
months ended June 30, 2004 of RMB1,395,522 as compared to a loss from operations
of RMB272,018 for the three months ended June 30, 2003. Our net profit for the
three months ended June 30, 2004 was RMB1,351,586 as compared to a net loss of
RMB273,807 for the three months ended June 30, 2003.

Six Months Ended June 30, 2004 compared to the Six Months Ended June 30, 2003

Revenues. Income for the six months ended June 30, 2004 was RMB1,878,327 as
compared to subscription and service income of RMB249,058 for the six months
ended June 30, 2003, an increase of 654%. As a result of focusing on the new
business development in providing services relating to the management of
non-performing loans as discussed in "Liquidity and Capital Resources" below,
revenue earned from the current


                                       11


business has continued to decrease. Other income for the six months ended June
30, 2004 was RMB21,280 as compared to other income of RMB25 for the six months
ended June 30, 2003, an increase of 850 times. The increase is due to the write
back of rental expenses overprovided for in the fiscal year ended December 31,
2003.

Expenses. Administrative and general expenses for the six months ended June 30,
2004 were RMB842,894 as compared to RMB803,801 for the six months ended June 30,
2003, an increase of 5%. As a result of loans advanced to the Company by a
director in the third quarter of 2003, the Company has incurred interest expense
of RMB107,057 payable to a director in this period.

As a consequence of the foregoing, we had a profit from operations for the six
months ended June 30, 2004 of RMB1,035,433 as compared to a loss from operations
of RMB554,743 for the six months ended June 30, 2003. Our net profit for the six
months ended June 30, 2004 was RMB947,177 as compared to a net loss of
RMB558,482 for the six months ended June 30, 2003.


Factors That May Affect Future Results

Management's Discussion and Analysis and other parts of this Report contain
information based on management's beliefs and forward-looking statements that
involve a number of risks, uncertainties and assumptions. There can be no
assurance that actual results will not differ materially from the
forward-looking statements as a result of various factors, including but not
limited to the following:

The markets for many of our product offerings are characterized by rapidly
changing technology, evolving industry standards, and frequent new product
introductions. Our operating results will depend to a significant extent on our
ability to design, develop, or otherwise obtain and introduce new products,
services, systems, and solutions and to reduce the costs of these offerings. The
success of these and other new offerings is dependent on many factors, including
proper identification of customer needs, cost, timely completion and
introduction, differentiation from offerings of our competitors and market
acceptance. The ability to successfully introduce new products and services
could have an impact on future results of operations.

Fluctuations in Quarterly Results

We have incurred accumulated losses since inception, and cannot be certain that
we will achieve profitability on a quarterly or annual basis in the future. We
believe that future operating results will be subject to quarterly fluctuations
due to a variety of factors, including, but not limited to:

o    Continued growth of business and of the Internet in China;

o    Our ability to attract and retain customers and maintain customer
     satisfaction;

o    Technical difficulties or system outages;

o    Government regulation;


                                       12


o    Fulfilling contractual obligations under the agreements with China Great
     Wall Asset Management Corporation and others;

o    Pricing policies of competitors;

o    Ability to attract and retain qualified personnel with Chinese language and
     Internet industry expertise, in particular technical, sales and marketing
     personnel;

o    The amount and timing of operating costs and capital expenditures relating
     to expansion of our business and infrastructure;

o    The ability to upgrade, develop and maintain our systems and
     infrastructure; and

o    Failure to increase sales.

In addition to the factors set forth above, the Company's operating results will
be impacted by the extent to which the Company incurs non-cash charges
associated with stock-based arrangements with employees and non-employees.

Liquidity and Capital Resources

The Company's financial statements for the six months ended June 30, 2004 have
been prepared on a going concern basis, which contemplates the realization of
assets and the settlement of liabilities and commitments in the normal course of
business. For the six months ended June 30, 2004, the Company reported a net
profit of RMB947,177 (US$114,302) and as of June 30, 2004 had a shareholders'
deficit and a working capital deficit of RMB7,806,730 (US$942,091) and
RMB7,826,531 (US$944,481), respectively. Although the Company has experienced
difficulty in meeting its liquidity needs, management of the Company is
confident that the following plans should address the issue of the Company
continuing as a going concern:

(1)  In June 2001, the Company signed an agreement with China Great Wall Asset
     Management Corporation ("Great Wall"), a PRC government-controlled
     financial company. Under the agreement, which has a five-year term with
     options to renew, the Company is to help Great Wall dispose of
     non-performing assets (the "Assets") using both the Company's business and
     e-business networks. The Company, among other things, has the exclusive
     right to promote the Assets currently held by Great Wall through the
     Company's complete electronic business intelligence system. In the event
     that the promotion efforts result in a successful sale of the Assets, the
     Company is to receive approximately 1.2% to 2% of the gross sales price of
     the Assets. Against this background, the Company has decided to enter into
     the business of servicing non-performing loans, including but not limited
     to, asset auctions and asset securitizations.

(2)  During the period ended June 30, 2004, the Company entered into an interim
     Services Agreement (the "Agreement") with Citigroup Financial Products
     Inc., a subsidiary of Citigroup Inc. ("CFP"), to provide loan servicing and
     other services relating to a pool of non-performing loans ("NPL" or "NPLs")
     in Huizhou, Guangdong Province, China to be purchased by CFP from Great
     Wall. The NPLs to be purchased are valued at $242 million.

     The Agreement will be in effect for a period of approximately eight months,
     during which period approval of the requisite Chinese governmental agencies
     will be sought for the transaction between CFP and Great Wall. Upon receipt
     of the


                                       13


     relevant approvals, it is the intention of CFP and the Company that the
     Company is to provide substantially the same services for a period covering
     the resolution of the NPLs.

     In addition to receiving servicing fees, including a fixed monthly portion
     and a variable fee based on performance, the servicing arrangement for the
     Huizhou transaction with CFP was structured to allow the Company to
     participate in profit sharing without investing in the pool of assets as
     previously contemplated by the Company. This arrangement allows the Company
     to defer any fund raising exercise to a later date when the benefits of
     such exercise can be maximized. As most of the servicing fees are payable
     after the closing, the full effect of the Agreement will only be reflected
     after the closing which is expected to occur in the second half of this
     year. To date, CFP has paid the Company the $100,000 signing fee required
     by the Agreement. In addition to the servicing fees, CFP is obligated to
     pay the Company the sum of $150,000 after the closing.

     The Agreement provides the basis for close cooperation between the Company
     and CFP for the investment and resolution of non-performing assets in the
     Chinese market. The Company is currently evaluating its involvement in a
     series of NPLs transactions and more transactions are expected in the near
     future.

     The Company reached agreement with Great Wall for the employment of certain
     members from the existing Great Wall team in Guangdong. The Company will
     continue to add talents to complement the existing staff which possesses a
     good mix of industry know-how and local knowledge. Management believes that
     the combination of in-depth knowledge of China and professional skills in
     the servicing industry will give the Company a competitive edge in
     servicing NPLs in China.

     Management believes that the new strategic direction of the Company and the
     servicing arrangement with CFP will erase doubts on the Company's operating
     as a going-concern. Barring unforeseen circumstances, the Company is
     expected to have a turn around in operating results in the fourth quarter
     of this year. Management believes that the focus on NPLs in China will form
     the basis of growth for the Company in the years to come. The Company is
     currently evaluating its involvement in a series of NPL transactions. The
     Company will focus on the NPL business as its core business and its current
     e-business is expected to diminish in importance with respect to revenue
     and profit.

(3)  Upon entering into the Agreement, the Company expects to issue an aggregate
     of five to ten million shares of Common Stock to various finders as
     compensation for their efforts and contributions in connection with the
     deal.

(4)  Having entered into the Agreement as mentioned in section (2) above, within
     the coming months the Company expects to receive fees on a regular basis,
     which in management's opinion should be sufficient to meet the Company's
     working capital and capital expenditure requirements going forward until
     such time as the transaction between CFP and Great Wall is approved by the
     requisite Chinese governmental agencies. Thereafter, assuming such approval
     is given, the Company expects to receive fees on a regular basis, which in
     management's opinion should be sufficient to meet the Company's working
     capital and capital expenditure requirements going forward. In addition, we
     may seek to raise funds by offering


                                       14


     debt or equity to the public. There is no guarantee that we will be able to
     raise the funds. Thereafter, we may need to raise additional funds in order
     to meet funding requirements of a more rapid expansion plan, potential
     acquisitions, development of new or enhanced products or services, in
     response to competitive pressures or to acquire technologies or
     complimentary products or businesses.

Quantitative And Qualitative Disclosures About Market Risk

We are not exposed to a material level of market risks due to changes in
interest rates. We do not have outstanding debt instruments and we do not
maintain a portfolio of interest-sensitive debt instruments.

We expect to derive a significant portion of revenues in the form of Renminbi
and, therefore, may be exposed to significant foreign currency risks in the
future. During the three months ended June 30, 2004 and June 30, 2003, we did
not engage in hedging activities to mitigate the impact of changes in foreign
exchange rates. We may in the future use foreign currency forward exchange
contracts as a vehicle for hedging purposes.

Critical Accounting Policies And Estimates

Our financial statements reflect the selection and application of accounting
policies which require management to make significant estimates and assumptions.
We believe that the following are some of the more critical judgment areas in
the application of our accounting policies that currently affect our financial
condition and results of operations.

We recognize subscription and service income from members over the period of
subscription and to the extent of services rendered in accordance with the terms
of subscription and service agreements.

We maintain allowances for doubtful accounts for estimated losses resulting from
the inability of our customers to make required payments. If the financial
condition of our customers were to deteriorate, resulting in an impairment of
their ability to make payments, additional allowances may be required which
would result in an additional general and administrative expense in the period
such determination was made.

     We do not have any of the following:

     o    Certain trading activities that include non-exchange traded contracts
          accounted for at fair value.

     o    Relationships and transactions with persons or entities that derive
          benefits from any non-independent relationships other than related
          party transactions discussed herein.

Off-Balance Sheet Arrangements

     The Company has no off-balance sheet arrangements that have or are
     reasonably likely to have a current or future effect on the Company's
     financial condition, changes in financial condition, revenues or expenses,
     results of operations, liquidity, capital expenditures or capital resources
     that is material to the Company.



                                       15


                                  RISK FACTORS

Set forth below are certain risks and uncertainties relating to our business.
These are not the only risks and uncertainties we face. Additional risks and
uncertainties not presently known to us or that we currently deem immaterial may
also impair our business. If any of the following risks actually occur, our
business, operating results or financial condition could be materially adversely
affected.

Risks Relating To Our Business

IT IS DIFFICULT TO EVALUATE OUR BUSINESS AND PROSPECTS BECAUSE WE HAVE A LIMITED
OPERATING HISTORY

If we do not successfully address these risks and uncertainties, our business,
operating results and financial condition will be materially adversely affected.
In particular, the Company has limited previous experience in the asset
management business. There is the risk that an established loan servicing
company might expand into China and acquire a large market share of the loan
servicing business. It is also possible that the services provided by the
Company might not be competitive against a stronger and more experienced loan
servicing company.

GOVERNMENT APPROVAL

The Agreement is an interim agreement which will be in effect for a period of
approximately eight months, during which period approval of the requisite PRC
governmental authorities will be sought. There can be no assurance that such
approvals will be granted or be granted on a timely basis. Failure to obtain the
requisite approvals or to obtain the approvals on a timely basis will have a
material adverse affect on our business, financial condition and operating
results.

DEPENDENCE ON CFP

CFP is currently the Company's sole client for its asset management business.
The loss of CFP as a client will have a material adverse affect on our business,
financial condition and operating results. The Company's failure to attract and
retain additional clients for loan servicing will have a material adverse affect
on our business, financial condition and operating results.

WE MAY REQUIRE ADDITIONAL FUNDS TO IMPLEMENT OUR CURRENT PLANS AND FINANCE
FUTURE GROWTH

Our business model assumes that we will have substantial additional funds to
implement the full range of products and services we plan to offer.

                                       16


We may seek to obtain additional funds through sales of equity and/or debt, or
other external financing in order to fund our current operations and to achieve
our business plan. We cannot assure that any additional capital resources will
be available to us, or, if available, will be on terms that will be acceptable
to us. Any additional equity financing will dilute the equity interests of
existing security holders. If adequate funds are not available or are not
available on acceptable terms, our ability to execute our business plan and our
business could be materially and adversely affected.

OUR MANAGEMENT HAS LIMITED EXPERIENCE OPERATING A PUBLIC COMPANY

IF WE FAIL TO EFFECTIVELY MANAGE OUR GROWTH, OUR BUSINESS WILL SUFFER

Rapid growth will place a significant strain on our managerial, operational,
financial and information systems resources. To accommodate any significant
increase in our size and manage our growth, we must implement and improve these
systems and attract, train, manage and retain qualified employees. These demands
will require us to add new management personnel and develop new expertise. If we
fail to successfully manage our growth, our ability to maintain and increase our
customer base will be impaired and our business will suffer.

NETWORKS ARE SUBJECT TO SECURITY RISKS AND INAPPROPRIATE USE BY INTERNET USERS
THAT COULD INTERRUPT OUR SERVICES

Despite implementation of security measures, we remain vulnerable to computer
viruses, sabotage, break-ins and similar disruptive problems caused by
subscribers or other Internet users.

OUR INTERNET SERVICES AND REPUTATION MAY BE ADVERSELY AFFECTED BY SOFTWARE
DEFECTS

Our internet services depend on complex software developed by third parties.
Software often contains defects, particularly when first introduced or when new
versions are released. These defects could cause service interruptions that
damage our reputation, increase our service costs, cause us to lose revenue,
delay market acceptance or divert our development resources, any of which could
materially adversely affect our internet business. We may not discover software
defects that affect our services or enhancements until we deploy the software.

                    RISKS RELATING TO DOING BUSINESS IN CHINA

INCREASED GOVERNMENT REGULATION MAY INCREASE OUR COST OF DOING BUSINESS OR CAUSE
US TO CHANGE THE WAY WE CONDUCT OUR BUSINESS


                                       17


Any new legislation or regulation adopted by the PRC regarding the Internet, or
the application or uncertainty relating to the application of existing laws and
regulations to the Internet, could materially adversely affect our business,
operating results and financial condition. Legislation could impair the growth
of the Internet and decrease the acceptance of the Internet as a communications
and commercial medium. This could decrease the demand for our services, increase
our cost of doing business or otherwise have a material adverse affect on our
internet business. Further, the growth and development of the Internet messaging
market may prompt calls for more stringent consumer protection laws that may
impose additional burdens on companies conducting business online. These laws
may impose additional burdens on our business. For example, because we rely on
the collection and use of personal data from our users for targeting
advertisements, any laws or regulations that restrict our ability to collect or
use such information may harm us. Hong Kong has enacted laws or adopted
regulations that prevent Internet companies or Web portals from selling any
information collected from users.

Any new legislation or regulation adopted by the PRC regarding the loan
servicing business in the PRC, or the application or uncertainty relating to the
application of existing laws and regulations to the loan servicing business,
could decrease the demand for our services, increase our cost of doing business
or otherwise have a material adverse affect on our business, financial condition
and operating results.

REGULATION OF THE INTERNET AND INFORMATION INDUSTRY IN THE PRC MAY ADVERSELY
AFFECT OUR BUSINESS

The PRC has enacted regulations governing the provision of ISP services,
Internet access and the distribution of news and other information. The Chinese
government regulates access to the Internet by imposing strict licensing
requirements and requiring ISPs in China to use the international inbound and
outbound Internet backbones. Our vendors of these services have obtained all
licenses required to offer Internet access services in the parts of the PRC
where we conduct business, but there can be no assurance that such licenses will
be retained.

We also note that the Chinese legal system is a civil law system in which
decided legal cases have little precedential value. As a result, in many cases
it is difficult to determine the type of content that may result in liability.
We cannot predict the effect of further developments in the Chinese legal
system, particularly with regard to the Internet, including the promulgation of
new laws, changes to existing laws or the interpretation or enforcement thereof,
or the preemption of local regulations by national laws. Periodically, the
Ministry of Public Security has stopped the distribution of information over the
Internet which it believes to be socially destabilizing. The Ministry of Public
Security has the authority to cause any local ISP to block any Web site
maintained outside of China at its sole discretion. Web sites that are blocked
in China include many major news-related Web sites such as www.cnn.com,
www.latimes.com, www.nytimes.com and www.appledaily.com.hk. These laws will
affect the Chinese language Web portal which we propose to develop in the
future.

                                       18


The Chinese government has also expressed its intention to closely control
possible new areas of business presented by the Internet, such as Internet
telephony. We cannot provide assurance that we will be able to obtain any
necessary license required in the future or that future changes in Chinese
government policies affecting the provision of ISP services, information
services, including the provision of online services, will not impose additional
regulatory requirements on us or our strategic partners, intensify competition
in the Chinese information industry or otherwise have a material adverse effect
on our business, financial condition and results of operations.

THERE ARE ECONOMIC RISKS ASSOCIATED WITH DOING BUSINESS IN CHINA

The PRC economy has experienced significant growth in the past decade, but such
growth has been uneven across geographic and economic sectors and has recently
been slowing. There can be no assurance that such growth will not continue to
decrease or that any slow down will not have a negative effect on our business.
The PRC economy is also experiencing deflation which may continue in the future.
The current economic situation may adversely affect our profitability over time
as expenditures for advertisements may decrease due to the results of slowing
domestic demand and deflation. In October, 1998, the Guangdong International
Trust and Investment Corporation, an investment holding company of Guangzhou
Province, was declared insolvent and shut down by the PRC government.
Subsequently many other similarly situated PRC provincial investment holding
companies have defaulted on their loans and experienced financial difficulties.
As a result, our clients and suppliers may have limited access to credit that
may adversely affect our business. In addition, the international financial
markets in which the securities of the PRC government, agencies and private
entities are traded also have experienced significant price fluctuations upon
speculation that the PRC government may devalue the Renminbi which could
increase our costs relative to our PRC revenues.

RESTRICTIONS ON CURRENCY EXCHANGE MAY LIMIT OUR ABILITY TO UTILIZE OUR REVENUES
EFFECTIVELY

We expect to derive a significant portion of revenues in the form of Renminbi.
Although Chinese governmental policies were introduced in 1996 to allow greater
convertibility of the Renminbi, significant restrictions still remain. We can
provide no assurance that the Chinese regulatory authorities will not impose
greater restrictions on the convertibility of the Renminbi. Any future
restrictions on currency exchanges may limit our ability to utilize revenue
generated in Renminbi to fund our business activities outside the PRC.

A CHANGE IN CURRENCY EXCHANGE RATES COULD INCREASE OUR COSTS RELATIVE TO OUR
REVENUES

We expect to generate a portion of our revenues and to incur expenses and
liabilities in Chinese Renminbi and U.S. dollars. As a result, we are subject to
the effects of exchange rate fluctuations with respect to any of these
currencies. We have not entered into agreements or purchase instruments to hedge
our exchange rate risks although we may do so in the future.

                                       19


                           RISKS RELATING TO OUR STOCK

POSSIBLE DELISTING OF OUR STOCK FROM TRADING ON THE ELECTRONIC BULLETIN BOARD

Our common stock is listed on the electronic bulletin board of the
over-the-counter market. Once delisted, we cannot predict when, if ever, our
class of common stock would be re-listed for trading on the electronic bulletin
board or any other market or exchange as the approval to re-list the common
stock is subject to review by the NASD.

BECAUSE OUR COMMON STOCK PRICE IS BELOW $5.00, WE ARE SUBJECT TO ADDITIONAL
RULES AND REGULATIONS.

The SEC has adopted regulations which generally define a "penny stock" to be any
equity security that has a market price (as defined) of less than $5.00 per
share, subject to certain exceptions. Our common stock presently is a "penny
stock". Because our stock is a "penny stock", it is subject to rules that impose
additional sales practice requirements on broker/dealers who sell our securities
to persons other than established customers and accredited investors. There can
be no assurance that the common stock will trade for $5.00 or more per share, or
if so, when.

Although we desire to list the common stock on the Nasdaq SmallCap Market and
intend to apply for a listing on the SmallCap market at such time as we meet the
listing criteria, there can be no assurance that we will ever qualify.

Absent Nasdaq SmallCap Market or other Nasdaq or stock exchange listing,
trading, if any, in common stock will, as it presently is, continue in the
"Electronic Bulletin Board" administered by the National Association of
Securities Dealers, Inc. As a result, you may find it difficult to dispose of or
to obtain accurate quotations as to the market value of the common stock.

WE HAVE NO INTENTION TO PAY DIVIDENDS

We have never paid any cash dividends on our common stock. We currently intend
to retain all future earnings, if any, for use in our business and do not expect
to pay any dividends in the foreseeable future.


                                       20




Recently Issued Accounting Pronouncements

There are no new accounting pronouncements for which adoption is expected to
have a material effect on the Company's financial statements.


Item 3. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure the reliability of the
financial statements and other disclosures included in this report. Within the
90 days prior to the filing of this report, the Company carried out an
evaluation, under the supervision and with the participation of the Company's
management, including the Company's Chief Executive Officer and Chief Financial
Officer, of the effectiveness of the design and operation of the Company's
disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. Based
upon that evaluation, the Chief Executive Officer and Chief Financial Officer
concluded that the Company's disclosure controls and procedures are effective in
timely alerting them to material information required to be included in the
Company's periodic Securities and Exchange Commission filings.

(b) Changes in Internal Controls

There have been no significant changes in the Company's internal controls or in
other factors that could significantly affect these controls subsequent to the
date the Company carried out its evaluation.


                                       21



                           PART II - OTHER INFORMATION



Item 6. Exhibits and Reports on Form 8-K.

     (a)  Exhibits.

          10.2     Services Agreement dated April 29, 2004, by and between
                   Citigroup Financial Products Inc. and Chinawe.com Inc.
          31.1     Rule 13a-14(a)/15d-14(a) Certification
          31.2     Rule 13a-14(a)/15d-14(a) Certification
          32.1     Section 1350 Certification of Chief Executive Officer
          32.2     Section 1350 Certification of Chief Financial Officer

     (b)  Reports on Form 8-K.

          The following report on Form 8-K was filed during the last quarter of
          the period covered by the Report.

          On May 10, 2004, a Form 8-K was filed by the Company under "Item 5.
          Other Events."


                                       22



                                   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.


Date: August 23, 2004
                                          Chinawe.com Inc.
                                          (Registrant)


                                          By: /s/ Man Keung Wai
                                              -----------------
                                              Man Keung Wai
                                              Chief Executive Officer (Principal
                                              Executive Officer)

                                          By: /s/ Vivian Chu
                                              --------------
                                              Vivian Chu
                                              Chief Financial Officer (Principal
                                              Financial Officer)


                                       23`