`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 March 31, 2006

       [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
              For the transition period from           to
                                             ---------    ---------

                        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                        (I.R.S. Employer
 of incorporation or organization)                   Identification No.)

                            Room 1304, Dongbao Tower
                             767 Dongfeng Road East
                             Guangzhou, China 510600
                             -----------------------
                    (Address of principal executive offices)

                                (8620) 3821-0119
                                ----------------
                           (Issuer's telephone number)

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes        No   X
                                    -------   -------


The number of shares outstanding of the issuer's common stock, par value $.001
per share, as of May 14, 2006 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
          March 31, 2006 (Unaudited)                                    3

          Consolidated Condensed Statements of Operations for
          the Three months ended March 31, 2006 (Unaudited)
          and March 31, 2005 (Unaudited)                                4

          Consolidated Condensed Statement of Changes in
          Stockholders' Deficit for the Three months ended
          March 31, 2006 (Unaudited)                                    5

          Consolidated Condensed Statements of Cash Flows for
          the Three months ended March 31, 2006 (Unaudited)
          and March 31, 2005 (Unaudited)                                6

          Notes to Consolidated Condensed Financial Statements          7

Item 2.   Management's Discussion and Analysis or Plan of Operation     12

Item 3.   Controls and Procedures                                       17

PART II - OTHER INFORMATION

Item 6.   Exhibits                                                      18

SIGNATURES                                                              19


                                       2


PART I - FINANCIAL INFORMATION
Item 1.  Financial Statements.
                                CHINAWE.COM INC.
                      CONSOLIDATED CONDENSED BALANCE SHEET
                                   (UNAUDITED)

                                                 Note                As of
                                                                March 31, 2006
                                                                      US$
                                                 ----           --------------

ASSETS
Current assets:
Cash and cash equivalents                                           287,095
Accounts receivable, net of allowance
   for doubtful accounts of US$2,215                                 68,568
Prepayments, deposits and other debtors                              21,663
                                                                     ------

Total current assets                                                377,326

Property, plant and equipment, net                 5                116,629
                                                                    -------
TOTAL ASSETS                                                        493,955
                                                                    =======

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accrued expenses and other current liabilities                      194,268
Current portion of long-term debt                  6                 12,342
Due to related parties                             7                709,822
Income tax payable                                 8                313,470
Surcharge on taxes                                 9                 14,335
                                                                   --------

Total current liabilities                                         1,244,237
                                                                  ---------
Long term liabilities:
Non-current portion of long-term debt              6                 35,997
                                                                 ----------

Contingencies and commitments                      9

Stockholders' 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                             43,800
      and outstanding 43,800,000 shares
Capital in excess of par                                             85,948
Accumulated losses                                                 (912,811)
Accumulated other comprehensive loss                                 (3,216)
                                                                 -----------

Total stockholders' deficit                                        (786,279)
                                                                   ---------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                         493,955
                                                                  =========

See notes to the consolidated condensed financial statements.


                                       3


                                CHINAWE.COM INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)




                                                                                  Three months ended March 31,
                                                                                ---------------------------------
                                                                                   2006                  2005
                                                                   NOTE             US$                   US$
                                                                  -----         -----------          ------------

OPERATING REVENUES
On-line services                                                                        55                 5,956
Asset management and related services                                              376,865               288,034
                                                                                -----------          ------------

                                                                                   376,920               293,990
Depreciation                                                                       (11,855)                 (547)
Administrative and general expenses                                               (282,026)              (55,977)
                                                                                -----------          ------------

INCOME FROM OPERATIONS                                                              83,039               237,466

NON-OPERATING INCOME (EXPENSE)
Interest                                                                            (8,403)               (7,807)
Surcharge on taxes                                                  9              (14,335)                   --
Other income                                                                           426                   596
                                                                                -----------          ------------

INCOME BEFORE INCOME TAXES                                                          60,727               230,255

Income tax expense                                                  8              (40,701)               (9,873)
                                                                                -----------          ------------

NET INCOME                                                                          20,026               220,382
                                                                                ===========          ============


Basic and diluted net income per share of common stock                                0.00                  0.01
                                                                                ===========          ============


Weighted average number of shares of common stock outstanding                   43,800,000            43,800,000
                                                                                ===========          ============


See notes to the consolidated condensed financial statements.


                                       4



                                CHINAWE.COM INC.
                       CONSOLIDATED CONDENSED STATEMENT OF
                        CHANGES IN STOCKHOLDERS' DEFICIT
                        THREE MONTHS ENDED MARCH 31, 2006
                                   (UNAUDITED)




                                                                                                 Accumulated
                                                              Capital in                               other             Total
                                                               excess of       Accumulated     comprehensive     Stockholders'
                                    Number of       Amount           par            losses              loss           deficit
                                       shares          US$           US$               US$               US$               US$
                                   ----------       ------     ---------       -----------     -------------     -------------

Balance as of
January 1, 2006                    43,800,000       43,800      85,948           932,837)         (5,409)          (808,498)

Comprehensive income:
   Net income                               -            -           -             20,026               -             20,026
   Currency translation
     adjustments                            -            -           -                  -           2,193              2,193
                                   ----------       ------      ------          ---------         -------          ---------
Total comprehensive income
                                                                                                                      22,219
                                                                                                                      ------

Balance as of
March 31, 2006                     43,800,000       43,800       85,948          (912,811)         (3,216)          (786,279)
                                   ==========       ======      =======         =========         =======          =========


See notes to the consolidated condensed financial statements.


                                       5


                                CHINAWE.COM INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)




                                                                                  Three months ended March 31,
                                                                                --------------------------------
                                                                                  2006 (US$)        2005 (US$)
                                                                                --------------    --------------

CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                                           20,026           220,382
Adjustments to reconcile net income to net cash provided by
   operating activities:
   Depreciation                                                                      11,855               547
   Exchange difference                                                                  647                 -
   Changes in operating assets and liabilities:
     Accounts receivable, net                                                       (19,812)          (10,000)
     Prepayments, deposits and other debtors                                         32,035            (5,551)
     Customer deposits received                                                      (7,229)            8,236
     Accrued expenses and other current liabilities                                 (21,413)              360
     Surcharge on taxes                                                              14,335                -
     Income tax payable                                                              75,520             9,873
                                                                                    -------           -------

NET CASH PROVIDED BY OPERATING ACTIVITIES                                           105,964           223,847
                                                                                    -------           -------

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment                                              (565)                -
                                                                                    -------           -------

NET CASH USED IN INVESTING ACTIVITIES                                                  (565)                -
                                                                                    -------           -------

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt                                                          (3,085)           (1,047)
Advance from related parties                                                        202,642            64,150
Repayment to related parties                                                       (258,285)          (91,923)
Increase in loan from a director                                                      1,219             6,150
                                                                                    -------             -----

NET CASH USED IN FINANCING ACTIVITIES                                               (57,509)          (22,670)
                                                                                    -------           -------

NET INCREASE IN CASH AND CASH EQUIVALENTS                                            47,890           201,177

Cash and cash equivalents, beginning of period                                      237,310            14,929

Effect of exchange rate changes                                                       1,895               (39)
                                                                                    -------           -------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                            287,095           216,067
                                                                                    =======           =======

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest                                                                8,403             7,807
                                                                                    =======           =======


See notes to the consolidated condensed financial statements.


                                       6


                                CHINAWE.COM INC.
            NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                        THREE MONTHS ENDED MARCH 31, 2006
                                   (UNAUDITED)

1. The interim financial statements

      The accompanying financial statements have been prepared by Chinawe.com
Inc. ("Chinawe") and its subsidiaries (collectively referred to as the
"Company") 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, 2005 (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 three months ended March 31, 2006 are not necessarily indicative of the
operating results for the full year.

2. Description of business

      The Company was formed pursuant to the corporation laws of the State of
California on March 19, 1997. The Company's principal business is providing
professional management services relating to non-performing loans ("NPL" or
"NPLs") in the People's Republic of China ("PRC"). Guangzhou Welcon Information
Limited ("WIT (GZ)"), a subsidiary of the Company from which the Company
previously derived a great proportion of its revenues, terminated its operations
on October 31, 2005. The activities of WIT (GZ) for the year ended December 31,
2005 were insignificant and immaterial to the financial statements of the
Company. The Company's professional service platform provides comprehensive
solutions to NPL assets, either by expediting ownership transactions between the
portfolio owners and their purchasers, or by negotiating with the relevant
debtors to facilitate financial restructures. The Company is also actively
seeking a wide scope of asset management opportunities among various industries
located in the PRC.

3. Organization

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

Officeway Technology Limited; incorporated in the British Virgin Islands in
December 1999, formed for the purpose of acquiring (in March 2000) its
wholly-owned subsidiary, Chinawe Asset Management Limited ("CAM (HK)").

CAM (HK); a company incorporated in Hong Kong in June 1997, which provides
subscriber services for the production of website images and a
business-to-business e-marketplace for small-to-medium size businesses.

Chinawe Asset Management (PRC) Limited ("CAM (PRC)") was established in the PRC
in April 2005 to service the NPLs under services agreements with Huizhou One
Limited, a subsidiary of Citigroup Financial Products Inc. ("CFP").


                                       7


                                CHINAWE.COM INC.
            NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                   THREE MONTHS ENDED MARCH 31, 2006 AND 2005
                                   (UNAUDITED)


4. Summary of significant accounting policies

     (a) Basis of accounting

The financial statements have been prepared in accordance with generally
accepted accounting principles in the United States of America ("US").

     (b) Basis of presentation

The accompanying financial statements present the financial position of the
Company as of March 31, 2006, and its results of operations and cash flows for
the three months ended March 31, 2006 and 2005. All inter-company accounts and
transactions have been eliminated in consolidation.

     (c) Translation of foreign currencies

The Company's functional currency is Renminbi, which is the currency of the
primary economic environment in which the Company operates. For reporting
purposes, the amounts shown in the financial statements are presented in US
dollars ("reporting currency").

For translation of financial statements into the reporting currency, assets and
liabilities for each balance sheet presented are translated at the rates of
exchange existing at the year end. Income and expenses for each income statement
presented are translated at the average rates during the year. Resulting
exchange differences are recognized in accumulated other comprehensive income
within stockholders' equity.

     (d) Going concern consideration

The Company's financial statements for the three months ended March 31, 2006
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. As of March 31, 2006, the Company had negative working capital and
stockholders' deficit of US$866,911 and US$786,279, respectively, which raised
substantial doubt about its ability to continue as a going concern.

Management is of the view that although the Company has experienced difficulty
in meeting its liquidity needs, such difficulty has been greatly alleviated
recently due to the change in the Company's business. Management of the Company
is confident that the new strategic direction of the Company and the servicing
arrangements with a subsidiary of Citigroup Financial Products Inc. will
generate sufficient cash flows for operations, gradually improve its financial
condition, and eventually erase doubts as to the Company's operating as a going
concern.


                                       8


                                CHINAWE.COM INC.
            NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                   THREE MONTHS ENDED MARCH 31, 2006 AND 2005
                                   (UNAUDITED)

5. Property, plant and equipment, net

     Property, plant and equipment are summarized as follows:

                                                      As of March 31, 2006
                                                               US$
                                                      --------------------
         Office equipment                                      7,925
         Computer equipment                                    7,752
         Leasehold improvement                                57,023
         Motor vehicle                                        99,120
                                                             -------

                                                             171,820
         Accumulated depreciation                            (55,447)
         Currency translation adjustment                         256
                                                             -------
         Net                                                 116,629
                                                             =======


6. Long term debt

     Long term debt consists of an obligation under a capital lease with
US$48,339 outstanding as of March 31, 2006. The debt is secured by a motor
vehicle with a net book value of US$37,969, bearing interest at 3-5% per annum
and is repayable in monthly installments of US$1,233, with the final installment
due in February 2010. Maturity of the debt is as follows:

                                                            As of March 31, 2006
                                                                   US$
                                                            --------------------
         Within 1 year                                             14,796
         Over 1 year but not exceeding 2 years                     14,796
         Over 2 years but not exceeding 3 years                    14,796
         Over 3 years but not exceeding 4 years                    13,563
                                                                   ------
                                                                   57,951
     Less: Amount representing interest                            (9,612)
                                                                   ------

Present value of net minimum lease payments                        48,339
                                                                   ======


                                       9


                                CHINAWE.COM INC.
            NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                   THREE MONTHS ENDED MARCH 31, 2006 AND 2005
                                   (UNAUDITED)


7. Related party transactions

     The balances with related parties are as follows:

                                                            As of March 31, 2006
                                                                     US$
                                                            --------------------
         At cost:                                   NOTE
         Loan from a director, including interest    (a)             147,157
         Advances from stockholders                  (b)             562,665
                                                                     -------
                                                                     709,822
                                                                     =======

     (a) The loan from a director is unsecured, interest bearing and was
repayable on June 30, 2004. Interest expense charged for the three months ended
March 31, 2006 and 2005 was US$7,791 and US$7,752, respectively. The maturity
date of this loan was extended until September 2006.

     (b) Except as described above regarding the loan from a director, all
balances with related parties are unsecured, non-interest bearing and repayable
on demand. During the three months ended March 31, 2006 and 2005, the Company
received advances from related parties of US$202,642 and US$64,150,
respectively. In addition, during the three months ended March 31, 2006 and
2005, the Company repaid advances of US$258,285 and US$91,923, respectively.

8. Income taxes

It is management's intention to reinvest all the income attributable to the
Company earned by its operations outside the US. Accordingly, no US 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.


                                       10


Companies that carry on business and derive income in Hong Kong are subject to
Hong Kong income tax at 17.5%. Companies that carry on business and derive
income in the PRC are subject to a national income tax at 30% and a local income
tax at 3%. The income tax expense for the year represents the PRC enterprise
income tax charged on the profit earned in the PRC.

No income taxes have been provided for the Hong Kong subsidiary as it has
incurred losses since commencement of its operations.


9. Contingencies

One of the subsidiaries of Chinawe in the PRC is subject to the PRC enterprise
income tax and business tax. However, up to March 31, 2006, the Company only
submitted tax returns and made payments for a portion of the total tax
liabilities, which is not in compliance with the tax laws and regulations in the
PRC. For this reason, the Company has made full provision for all tax
liabilities in accordance with the relevant tax laws and regulations, together
with a default interest that may be levied on the Company at a daily rate of
0.05% of the underpaid taxes.

Despite the fact that the Company has fully accrued the taxes and related
default interest in the financial statements, the Company may be subject to
penalties ranging from 50% to 500% of the underpaid tax amounts. The exact
amount of the penalty cannot be estimated with any reasonable degree of
certainty.


10. 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 March 31, 2006, no
awards have been made under the Plan.


                                       11


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 three months ended March 31, 2006
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 three months ended March 31, 2006, the Company reported net
income of US$20,026 and as of March 31, 2006 had a stockholders' deficit and a
working capital deficit of US$786,279 and US$866,911, respectively.

THREE MONTHS ENDED MARCH 31, 2006 COMPARED TO THE THREE MONTHS ENDED MARCH 31,
2005

REVENUES. Revenue for the three months ended March 31, 2006 was US$376,920 as
compared to that of US$293,990 for the three months ended March 31, 2005, an
increase of 28%. As a result of focusing on the new business development of
providing services relating to the management of non-performing loans as
discussed in "Liquidity and Capital Resources" below, revenue earned from the
e-commerce business has continued to decrease while the Company earned asset
management income of US$376,865 for the three months ended March 31, 2006,
compared to the three months ended March 31, 2005 of US$288,034.

EXPENSES. Administrative and general expenses for the three months ended March
31, 2006 were US$282,026 as compared to US$55,977 for the three months ended
March 31, 2005, an increase of 404%. The increase was mainly attributable to the
growing asset management business of the Company. The increase in administrative
and general expenses mainly comprised the increase in salary expense from
US$33,747 for the three months ended March 31, 2005 to US$105,248 for the three
months ended March 31, 2006, rental expense from US$4,558 for the three months
ended March 31, 2005 to US$12,844 for the three months ended March 31, 2006,
motor vehicle expense from US$550 for the three months ended March 31, 2005 to
US$20,296 for the three months ended March 31, 2006, and professional fees from
US$475 for the three months ended March 31, 2005 to US$73,007 for the three
months ended March 31, 2006 as a result of third party consulting fees incurred
for the asset management business.

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 US$7,791 and US$7,752
payable to the director for the three months ended March 31, 2006 and 2005,
respectively.


                                       12


THREE MONTHS ENDED MARCH 31, 2006 COMPARED TO THE THREE MONTHS ENDED MARCH 31,
2005

TAXATION. Income tax expense for the three months ended March 31, 2006 amounted
to US$40,701. The amount represents PRC enterprise income tax charged on the
profit from asset management and related services earned in the People's
Republic of China ("PRC").

As a consequence of the foregoing, we had income from operations for the three
months ended March 31, 2006 of US$83,039 as compared to US$237,466 for the three
months ended March 31, 2005. Our net income for the three months ended March 31,
2006 was US$20,026 as compared to US$220,382 for the three months ended March
31, 2005.

LIQUIDITY AND CAPITAL RESOURCES

The Company's financial statements for the three months ended March 31, 2006
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 three months ended March 31, 2006, the Company reported net
income of US$20,026 and as of March 31, 2006 had a stockholders' deficit and a
working capital deficit of US$786,279 and US$866,911, respectively. Although the
Company has experienced difficulty in meeting its liquidity needs, such
difficulty has been greatly alleviated recently due to the change in the
Company's business. Management of the Company is confident that the following
plans should address the issue of the Company continuing as a going concern:

(1) In September 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 entered into the business of servicing non-performing loans, including but
not limited to, asset auctions and asset securitizations.

(2) During the year ended December 31, 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 NPLs in Huizhou, Guangdong Province, China purchased by CFP
from Great Wall. The book value of the NPLs was $242 million. The Agreement was
subject to the approval of the requisite PRC governmental agencies, which
approval was received on April 1, 2005. It was the intention of CFP and the
Company, upon such approval, that a definitive agreement be entered into
pursuant to which the Company is to provide substantially the same services as
under the Agreement for a period covering the resolution of the NPLs (the
"Definitive Agreement"). Pursuant to PRC law, the Company set up Chinawe Asset
Management (PRC) Limited ("CAM"), a new PRC subsidiary, to service the NPLs
under the Definitive Agreement. Subsequently, CAM also set up a branch office in
Huizhou, Guangdong Province, primarily to render services related to this
portfolio of NPLs. On April 20, 2005, the Definitive Agreement, between Huizhou
One Limited ("Owner"), a subsidiary of CFP, and CAM, was executed.


                                       13


On September 22, 2005, Owner entered into another similar Services Agreement
with CAM to obtain loan servicing and other services concerning a pool of NPLs
in Foshan, Guangdong Province, China purchased by CFP from Great Wall (the
"Foshan Agreement"). The book value of the NPL portfolio was $370 million. The
transaction between CFP and Great Wall had been approved by the requisite PRC
governmental agencies prior to the execution of the Foshan Agreement.
Subsequently, CAM also set up a branch office in Foshan, Guangdong Province,
primarily to render services related to this portfolio of NPLs.

Pursuant to the Definitive Agreement and the Foshan Agreement (collectively, the
"CFP Agreements"), Owner appointed CAM to provide enumerated consulting services
with regard to the NPLs (the "Consulting Services") pursuant to the laws of the
PRC and the business scope of CAM as approved by the PRC government. CAM is to
provide the Consulting Services in accordance with (a) applicable PRC law, (b)
the terms of the CFP Agreements, (c) the directions given pursuant to the CFP
Agreements from time to time by Owner, and (d) its responsible and reasonable
judgment, within its agency authority and in the interest of Owner, as to other
appropriate actions, subject to the approval of Owner.

As compensation for the Consulting Services received, Owner will pay CAM a fixed
monthly portion and a series of variable fees based on performance as follows:
(i) a base consulting fee paid on signing of the CFP Agreements; (ii) a monthly
consulting fee (the "Consulting Fee"); (iii) a monthly collection fee (the
"Collection Fee") based on a percentage of all actual collections and recoveries
relating to the assets serviced (net of all costs and expenses incurred in the
resolution of the assets) during the relevant month; and (iv) an incentive fee
(the "Incentive Fee") if Owner receives from the resolution of the assets a
cumulative amount equal to the aggregate of the purchase price of the assets and
the costs and expenses incurred by Owner in the acquisition of the assets plus a
specified internal rate of return.

The Consulting Fee, the Collection Fee and the Incentive Fee is payable by Owner
to CAM only in respect of assets that are actually advised on by CAM and is not
payable in respect of assets which are advised on behalf of Owner by a
sub-consultant appointed by Owner in its sole discretion as contemplated by the
CFP Agreements or which are not advised on by CAM for any other reason.

In addition to the servicing fees mentioned above, the servicing arrangement for
the Huizhou and Foshan NPL portfolios 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 efforts to a later date when the benefits of
such endeavors can be maximized.


                                       14


Upon termination of the CFP Agreements (a) Owner shall pay all fees and expenses
payable to CAM that have accrued up to and including the date of termination;
and (b) CAM shall reimburse Owner for any fees and expenses prepaid to CAM and
applicable to periods arising after the date of termination.

The Company also reached agreement with Great Wall for the employment of certain
members from the existing Great Wall team in Guangdong. The Company expects to
continue to add talented individuals 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 strongly believes that the new strategic direction of the Company and
the servicing arrangements with CFP will gradually erase doubts on the Company's
operating as a going-concern. Management believes that the focus on NPLs in
China will form the basis of growth for the Company in the years to come. The
CFP Agreements provide the basis for close cooperation between the Company and
CFP for the investment and resolution of non-performing assets in the Chinese
market. This close cooperation not only should help the Company improve its
financial position, but also increase the likelihood of future expansion in
other domains of asset management in China. We keep evaluating the Company's
involvement in a series of future NPL transactions.

During the reporting period, the Company has gradually but successfully shifted
its core business to the NPL business. Its previous e-business is expected to
diminish in importance with respect to revenue and profit. As a result,
Guangzhou Welcon Information Limited, a subsidiary of the Company from which the
Company previously derived a great proportion of its revenues from, terminated
its operations on October 31, 2005.


(3) Having entered into the CFP Agreements, the Company expects in the near
future to issue an aggregate of five to ten million shares of its common stock
to various finders as compensation for their efforts and contributions in
connection with the transaction.

(4) Now that the CFP Agreements have been executed, the Company has begun 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. However, we may need to raise additional funds in
order to meet funding requirements of a more rapid expansion plan, potential
acquisitions, as well as development of new or enhanced products or services in
response to competitive pressures or to acquire technologies or complimentary
products or businesses. However, there is no guarantee that we will be able to
raise such funds.


                                       15


QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

However, as our asset management business is carried out more and more
comprehensively, we may be exposed to a material level of market risk due to
undeveloped financial and credit systems in China. Laws, regulations and
policies are insufficient to protect asset owners. As an asset management
servicer, we can only ensure due professional care.

During the quarter ended March 31, 2006, we derived a significant portion of
revenues in the form of USD. Since October 2005, however, we have derived, and
expect in the future to derive, a significant portion of revenues in the form of
Chinese RMB and, therefore, may be exposed to significant currency risks between
the RMB and other major foreign currencies in the future. Previously, because
the RMB was effectively pegged to the U.S. dollar, during the fiscal years ended
December 31, 2004 and December 31, 2003, it was not significantly important for
the Company to engage in hedging activities to mitigate the impact of changes in
foreign exchange rates. However, in the future management may use foreign
currency forward exchange contracts as a vehicle for hedging purposes if China
adopts a floating system and our management determines that the volatility of
currency risks is material to the Company's operations and financial
performance.

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.

REVENUE RECOGNITION AND VALUATION. The Company generally recognizes asset
management and related services income, as well as online subscription and
service income when persuasive evidence of an arrangement exists, services are
rendered, the fee is fixed or determinable, and collectability is probable.
Asset management and related services income is recognized when services are
rendered in accordance with the terms of 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 results in an additional general and administrative expense in the period
such determination was made.

Subscription and service income receivable from members is recognized over the
period of subscription and to the extent of services rendered in accordance with
the terms of agreements.


                                       16


RELATED PARTY TRANSACTION. 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.


Item 3. Controls and Procedures.

     (a) Evaluation of Disclosure Controls and Procedures

     Our disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange
Act")) are designed to ensure that information required to be disclosed in the
reports that we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the rules and forms
of the SEC. 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 as of
March 31, 2006 and, based on their evaluation, the Chief Executive Officer and
Chief Financial Officer concluded that the Company's disclosure controls and
procedures are effective.

     (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.


                                       17


PART II -OTHER INFORMATION

Item 6. Exhibits.

      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


                                       18

                                   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: May 22, 2006                                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)


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