|  |
|--|
|  |
|  |
|  |
|  |

UNITED STATES SECURITIES ANDEXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

(Mark One)

|  |        |                                                                                   |
|--|--------|-----------------------------------------------------------------------------------|
|  |   | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

For the quarterly period ended March 31, 2007

|  |        |                                                                 |
|--|--------|-----------------------------------------------------------------|
|  |   | 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 jurisdictionof incorporation or organization) |  |  | (I.R.S. EmployerIdentification No.) |
|                                                               |

Room 1304, Dongbao Tower767 Dongfeng Road EastGuangzhou, 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 

The number of shares outstanding of the issuer’s common stock, par value $.001 per share, as of May 18, 2007 was 43,800,000.

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

|  |
|--|
|  |
|  |
|  |
|  |

----

Chinawe.com Inc.

|                                      |  |  |                                                                                                                                                          |  |        |          |  |    |  |
|--------------------------------------|--|--|----------------------------------------------------------------------------------------------------------------------------------------------------------|--|--------|----------|--|----|--|
|                                 |  |  |                                                                                                                                                     |  |        | Page No. |
| PART I — FINANCIAL INFORMATION |  |  |                                                                                                                                                          |  |   |          |
| Item 1.                              |  |  | Financial Statements                                                                                                                                     |  |        |          |  | 3  |  |
|                                 |  |  | Consolidated Condensed Balance Sheet as of March 31, 2007 (Unaudited)                                                                          |  |        |          |  | 3  |  |
|                                 |  |  | Consolidated Condensed Statements of Operations for the Three months ended March 31, 2007 (Unaudited) and March 31, 2006 (Unaudited) |  |        |          |  | 4  |  |
|                                 |  |  | Consolidated Condensed Statements of Cash Flows for the Three months ended March 31, 2007 (Unaudited) and March 31, 2006 (Unaudited) |  |        |          |  | 5  |  |
|                                 |  |  | Notes to Consolidated Condensed Financial Statements                                                                                                     |  |        |          |  | 6  |  |
| Item 2.                              |  |  | Management’s Discussion and Analysis or Plan of Operation                                                                                          |  |        |          |  | 11 |  |
| Item 3.                              |  |  | Controls and Procedures                                                                                                                                  |  |        |          |  | 13 |  |
| PART II — OTHER INFORMATION    |  |  |                                                                                                                                                          |  |   |          |
| Item 6.                              |  |  | Exhibits                                                                                                                                                 |  |        |          |  | 14 |  |
| SIGNATURES                           |  |  |                                                                                                                                                          |  | 15     |          |
|                                      |

2

----

Table of Contents

PART I — FINANCIAL INFORMATION

Item 1.    Financial Statements.

CHINAWE.COM INC. CONSOLIDATED CONDENSED BALANCE SHEET(UNAUDITED)

|                                                                                                                     |  |  |        |  |        |                                |  |  |  |  |            |         |
|---------------------------------------------------------------------------------------------------------------------|--|--|--------|--|--------|--------------------------------|--|--|--|--|------------|---------|
|                                                                                                                |  |  | Note   |  |        | As of March 31, 2007 |
|                                                                                                                |  |  |   |  |        | US$                            |
| ASSETS                                                                                                              |  |  |        |  |   |                                |  |  |  |  |       |         |
| Current assets:                                                                                                     |  |  |        |  |   |                                |  |  |  |  |       |         |
| Cash and cash equivalents                                                                                           |  |  |        |  |   |                                |  |  |  |  | 380,372    |         |
| Accounts receivable, net of allowance for doubtful accounts of US$2,215                                             |  |  |        |  |   |                                |  |  |  |  | 2,343      |         |
| Prepayments, deposits and other debtors                                                                             |  |  |        |  |   |                                |  |  |  |  | 44,614     |         |
| Total current assets                                                                                                |  |  |        |  |   |                                |  |  |  |  | 427,329    |         |
| Property, plant and equipment, net                                                                                  |  |  |        |  | 5      |                                |  |  |  |  | 106,676    |         |
| TOTAL ASSETS                                                                                                        |  |  |        |  |   |                                |  |  |  |  | 534,005    |         |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                         |  |  |        |  |   |                                |  |  |  |  |       |         |
| Current liabilities:                                                                                                |  |  |        |  |   |                                |  |  |  |  |       |         |
| Accrued expenses and other current liabilities                                                                      |  |  |        |  |   |                                |  |  |  |  | 472,226    |         |
| Current portion of long-term debt                                                                                   |  |  |        |  | 6      |                                |  |  |  |  | 19,918     |         |
| Due to related parties                                                                                              |  |  |        |  | 7      |                                |  |  |  |  | 497,067    |         |
| Income tax payable                                                                                                  |  |  |        |  | 8      |                                |  |  |  |  | 410,716    |         |
| Surcharge on taxes                                                                                                  |  |  |        |  | 9      |                                |  |  |  |  | 57,218     |         |
| Total current liabilities                                                                                           |  |  |        |  |   |                                |  |  |  |  | 1,457,145  |         |
| Long term liabilities:                                                                                              |  |  |        |  |   |                                |  |  |  |  |       |         |
| Non-current portion of long-term debt                                                                               |  |  |        |  | 6      |                                |  |  |  |  | 45,209     |         |
| 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 and outstanding 43,800,000 shares |  |  |        |  |   |                                |  |  |  |  | 43,800     |         |
| Capital in excess of par                                                                                            |  |  |        |  |   |                                |  |  |  |  | 85,948     |         |
| Accumulated losses                                                                                                  |  |  |        |  |   |                                |  |  |  |  | (1,107,582 | )  |
| Accumulated other comprehensive income                                                                              |  |  |        |  |   |                                |  |  |  |  | 9,485      |         |
| Total stockholders’ deficit                                                                                   |  |  |        |  |   |                                |  |  |  |  | (968,349   | )  |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                   |  |  |        |  |   |                                |  |  |  |  | 534,005    |         |
|                                                                                                                     |

See notes to the consolidated condensed financial statements.

3

----

Table of Contents

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

|                                                               |  |  |        |  |        |                                   |  |  |              |  |            |            |  |  |  |  |            |         |
|---------------------------------------------------------------|--|--|--------|--|--------|-----------------------------------|--|--|--------------|--|------------|------------|--|--|--|--|------------|---------|
|                                                          |  |  |   |  |        | Three months ended March 31, |
|                                                          |  |  | Note   |  |        | 2007                              |  |  | 2006         |
|                                                          |  |  |   |  |        | US$                               |  |  | US$          |
| OPERATING REVENUES                                            |  |  |        |  |   |                                   |  |  |              |  |       |            |  |  |  |  |       |         |
| On-line services                                              |  |  |        |  |   |                                   |  |  |              |  | 812        |            |  |  |  |  | 55         |         |
| Asset management and related services                         |  |  |        |  |   |                                   |  |  |              |  | 244,545    |            |  |  |  |  | 376,865    |         |
|                                                          |  |  |        |  |   |                                   |  |  |              |  | 245,357    |            |  |  |  |  | 376,920    |         |
| Depreciation                                                  |  |  |        |  |   |                                   |  |  |              |  | (14,966    | )     |  |  |  |  | (11,855    | )  |
| Administrative and general expenses                           |  |  |        |  |   |                                   |  |  |              |  | (300,647   | )     |  |  |  |  | (282,026   | )  |
| (LOSS) INCOME FROM OPERATIONS                                 |  |  |        |  |   |                                   |  |  |              |  | (70,256    | )     |  |  |  |  | 83,039     |         |
| NON-OPERATING INCOME (EXPENSE)                                |  |  |        |  |   |                                   |  |  |              |  |       |            |  |  |  |  |       |         |
| Interest                                                      |  |  |        |  |   |                                   |  |  |              |  | (9,189     | )     |  |  |  |  | (8,403     | )  |
| Surcharge on taxes                                            |  |  |        |  | 9      |                                   |  |  |              |  | —    |            |  |  |  |  | (14,335    | )  |
| Other income                                                  |  |  |        |  |   |                                   |  |  |              |  | 224        |            |  |  |  |  | 426        |         |
| (LOSS) INCOME BEFORE INCOME TAXES                             |  |  |        |  |   |                                   |  |  |              |  | (79,221    | )     |  |  |  |  | 60,727     |         |
| Income tax expense                                            |  |  |        |  | 8      |                                   |  |  |              |  | —    |            |  |  |  |  | (40,701    | )  |
| NET (LOSS) INCOME                                             |  |  |        |  |   |                                   |  |  |              |  | (79,221    | )     |  |  |  |  | 20,026     |         |
| OTHER COMPREHENSIVE INCOME (LOSS)                             |  |  |        |  |   |                                   |  |  |              |  |       |            |  |  |  |  |       |         |
| Foreign currency translation                                  |  |  |        |  |   |                                   |  |  |              |  | 11,805     |            |  |  |  |  | (2,193     | )  |
| COMPREHENSIVE (LOSS) INCOME                                   |  |  |        |  |   |                                   |  |  |              |  | (67,416    | )     |  |  |  |  | 17,833     |         |
| Basic and diluted net (loss) income per share of common stock |  |  |        |  |   |                                   |  |  | (0.18) cents |  |            | 0.05 cents |
| Weighted average number of shares of common stock outstanding |  |  |        |  |   |                                   |  |  |              |  | 43,800,000 |            |  |  |  |  | 43,800,000 |         |
|                                                               |

See notes to the consolidated condensed financial statements.

4

----

Table of Contents

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

|                                                                                   |  |  |                                   |  |          |         |  |  |  |  |          |         |
|-----------------------------------------------------------------------------------|--|--|-----------------------------------|--|----------|---------|--|--|--|--|----------|---------|
|                                                                              |  |  | Three months ended March 31, |
|                                                                              |  |  | 2007                              |  |          | 2006    |
|                                                                              |  |  | US$                               |  |          | US$     |
| CASH FLOWS FROM OPERATING ACTIVITIES                                              |  |  |                                   |  |     |         |  |  |  |  |     |         |
| Net (loss) income                                                                 |  |  |                                   |  | (79,221  | )  |  |  |  |  | 20,026   |         |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |                                   |  |     |         |  |  |  |  |     |         |
| Depreciation                                                                      |  |  |                                   |  | 14,966   |         |  |  |  |  | 11,855   |         |
| Exchange difference                                                               |  |  |                                   |  | 10,072   |         |  |  |  |  | 647      |         |
| Changes in operating assets and liabilities:                                      |  |  |                                   |  |     |         |  |  |  |  |     |         |
| Accounts receivable, net                                                          |  |  |                                   |  | 155,758  |         |  |  |  |  | (19,812  | )  |
| Prepayments, deposits and other debtors                                           |  |  |                                   |  | 371,909  |         |  |  |  |  | 32,035   |         |
| Customer deposits received                                                        |  |  |                                   |  | (125,922 | )  |  |  |  |  | (7,229   | )  |
| Accrued expenses and other current liabilities                                    |  |  |                                   |  | (61,955  | )  |  |  |  |  | (21,413  | )  |
| Surcharge on taxes                                                                |  |  |                                   |  | —  |         |  |  |  |  | 14,335   |         |
| Income tax payable                                                                |  |  |                                   |  | (3,350   | )  |  |  |  |  | 75,520   |         |
| NET CASH PROVIDED BY OPERATING ACTIVITIES                                         |  |  |                                   |  | 282,257  |         |  |  |  |  | 105,964  |         |
| 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                                                       |  |  |                                   |  | (7,534   | )  |  |  |  |  | (3,085   | )  |
| Advance from related parties                                                      |  |  |                                   |  | —  |         |  |  |  |  | 202,642  |         |
| Repayment to related parties                                                      |  |  |                                   |  | (6,348   | )  |  |  |  |  | (258,285 | )  |
| Increase in loan from a director                                                  |  |  |                                   |  | 1,210    |         |  |  |  |  | 1,219    |         |
| NET CASH USED IN FINANCING ACTIVITIES                                             |  |  |                                   |  | (12,672  | )  |  |  |  |  | (57,509  | )  |
| NET INCREASE IN CASH AND CASH EQUIVALENTS                                         |  |  |                                   |  | 269,585  |         |  |  |  |  | 47,890   |         |
| Cash and cash equivalents, beginning of period                                    |  |  |                                   |  | 116,102  |         |  |  |  |  | 237,310  |         |
| Effect of exchange rate changes                                                   |  |  |                                   |  | (5,315   | )  |  |  |  |  | 1,895    |         |
| CASH AND CASH EQUIVALENTS, END OF PERIOD                                          |  |  |                                   |  | 380,372  |         |  |  |  |  | 287,095  |         |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                                  |  |  |                                   |  |     |         |  |  |  |  |     |         |
| Cash paid for interest                                                            |  |  |                                   |  | 9,189    |         |  |  |  |  | 8,403    |         |
| Capital value at inception of new capital lease arrangement                       |  |  |                                   |  | 33,882   |         |  |  |  |  | —  |         |
|                                                                                   |

See notes to the consolidated condensed financial statements.

5

----

Table of Contents

CHINAWE.COM INC.NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTSTHREE MONTHS ENDED MARCH 31, 2007 AND 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, 2006 (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, 2007 are not necessarily indicative of the operating results for the full year.

2.    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 People’s Republic of China (‘‘PRC’’) in April 2005 to service non-performing loans under services agreements with Huizhou One Limited, a subsidiary of Citigroup Financial Products Inc. (‘‘CFP’’).

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, 2007, and its results of operations and cash flows for the three months ended March 31, 2007 and 2006. All inter-company accounts and transactions have been eliminated in consolidation.

(c)    Translation of foreign currencies

The Company’s functional currency is Renminbi (‘‘RMB’’), which is the currency of the primary economic environment in which the Company operates. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of operations. For reporting purposes, the amounts shown in the financial statements are presented in US dollars (‘‘reporting currency’’).

6

----

Table of Contents

CHINAWE.COM INC.NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTSTHREE MONTHS ENDED MARCH 31, 2007 AND 2006(UNAUDITED)

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, 2007 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, 2007, the Company had a negative working capital and stockholders’ deficit of US$1,029,816 and US$968,349, 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 alleviated due to the change in the Company’s business. Management of the Company is confident that the current strategic direction of the Company and the servicing arrangements with a subsidiary of CFP will generate sufficient cash flows for operations, then gradually improve its financial condition, and eventually erase doubts as to the Company’s operating as a going concern.

5.    Property, plant and equipment, net

Property, plant and equipment are summarized as follows:

|                                 |  |  |                      |  |          |         |
|---------------------------------|--|--|----------------------|--|----------|---------|
|                            |  |  | As of March 31, 2007 |
|                            |  |  | US$                  |
| Office equipment                |  |  |                      |  | 10,379   |         |
| Computer equipment              |  |  |                      |  | 10,962   |         |
| Leasehold improvement           |  |  |                      |  | 57,445   |         |
| Motor vehicle                   |  |  |                      |  | 133,002  |         |
|                            |  |  |                      |  | 211,788  |         |
| Accumulated depreciation        |  |  |                      |  | (105,504 | )  |
| Currency translation adjustment |  |  |                      |  | 392      |         |
| Net                             |  |  |                      |  | 106,676  |         |
|                                 |

7

----

Table of Contents

CHINAWE.COM INC.NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTSTHREE MONTHS ENDED MARCH 31, 2007 AND 2006(UNAUDITED)

6.    Long term debt

Long term debt consists of obligation under capital lease for purchase of vehicles with US$65,127 outstanding as of March 31, 2007. The debt is secured by two motor vehicles with an aggregate net book value of US$63,918, bearing interest at 3-5% per annum and is repayable in monthly installments of US$1,984, with the final installments due in February 2010 and January 2011, respectively. Maturity of the debt is as follows:

|                                             |  |  |                      |  |         |         |
|---------------------------------------------|--|--|----------------------|--|---------|---------|
|                                        |  |  | As of March 31, 2007 |
|                                        |  |  | US$                  |
| Within 1 year                               |  |  |                      |  | 23,805  |         |
| Over 1 year but not exceeding 2 years       |  |  |                      |  | 23,805  |         |
| Over 2 years but not exceeding 3 years      |  |  |                      |  | 22,582  |         |
| Over 3 years but not exceeding 4 years      |  |  |                      |  | 7,608   |         |
|                                        |  |  |                      |  | 77,800  |         |
| Less: Amount representing interest          |  |  |                      |  | (12,673 | )  |
| Present value of net minimum lease payments |  |  |                      |  | 65,127  |         |
|                                             |

7.    Related party transactions

The balances with related parties are as follows:

|                                          |  |  |        |  |        |                      |  |  |  |  |         |  |
|------------------------------------------|--|--|--------|--|--------|----------------------|--|--|--|--|---------|--|
|                                     |  |  | NOTE   |  |        | As of March 31, 2007 |
|                                     |  |  |   |  |        | US$                  |
| At cost:                                 |  |  |        |  |   |                      |  |  |  |  |    |  |
| Loan from a director, including interest |  |  |        |  | (a     | )               |  |  |  |  | 138,074 |  |
| Advances from stockholders               |  |  |        |  | (b     | )               |  |  |  |  | 358,993 |  |
|                                     |  |  |        |  |   |                      |  |  |  |  | 497,067 |  |
|                                          |

|  |
|--|
|  |  |
|  |

| (a) | The loan from a director is unsecured, interest bearing at 23% per annum and is repayable on June 30, 2007. Interest expense charged for the three months ended March 31, 2007 and 2006 was US$7,731 and US$7,791, respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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, 2007 and 2006, the Company received advances from related parties of US$0 and US$202,642, respectively. In addition, during the three months ended March 31, 2007 and 2006, the Company repaid advances of US$6,348 and US$258,285 to related parties, 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.

8

----

Table of Contents

CHINAWE.COM INC.NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTSTHREE MONTHS ENDED MARCH 31, 2007 AND 2006(UNAUDITED)

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%.

No income taxes have been provided for subsidiaries in Hong Kong and PRC as they have incurred losses since commencement of their operations.

The Company’s deferred taxation is as follows:

|                                        |  |  |                              |  |          |         |
|----------------------------------------|--|--|------------------------------|--|----------|---------|
|                                   |  |  | As of December 31, 2007 |
|                                   |  |  | US$                          |
| Hong Kong operating loss carry forward |  |  |                              |  | 165,833  |         |
| Deferred tax asset valuation allowance |  |  |                              |  | (165,833 | )  |
| Net deferred tax asset                 |  |  |                              |  | —  |         |
|                                        |

In July 2006, the Financial Accounting Standards Board (‘‘FASB’’) issued Interpretation No. 48, ‘‘Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109’’ (‘‘FIN 48’’), which clarifies the accounting and disclosure for uncertainty in tax positions, as defined, and prescribes the measurement process and a minimum recognition threshold for a tax position, taken or expected to be taken in a tax return, that is required to be met before being recognized in the financial statements. Under FIN 48, the Company must recognize the tax benefit from an uncertain position only if it is more likely than not the tax position will be sustained on examination by the taxing authority, based on the technical merits of the position. The tax benefits recognized in the financial statements attributable to such position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon the ultimate resolution of the position.

As of January 1, 2007, the Company is subject to the provisions of FIN 48, and has analyzed its filing positions in all of the federal, state and foreign jurisdictions where it is required to file income tax returns. As of December 31, 2006, and March 31, 2007, the Company has identified the following jurisdictions as ‘‘major’’ tax jurisdictions, as defined, in which it is required to file income tax returns: United States; Hong Kong and China. Based on the evaluations noted above, the Company has concluded that there are no significant uncertain tax positions requiring recognition in its consolidated financial statements. Based on a review of tax positions for all open years, no reserves for uncertain income tax positions have been recorded pursuant to FIN 48 during the three months ended March 31, 2007, and the Company does not anticipate that it is reasonably possible that any material increase or decrease in its unrecognized tax benefits will occur within twelve months.

Upon adoption of FIN 48 on January 1, 2007, and as of March 31, 2007, the Company had no unrecognized tax benefits or accruals for a potential payment or surcharge. The Company’s policy is to record a surcharge in this connection as a component of the provision for income tax expense. For the three months ended March 31, 2007, no surcharge was recorded. Further details concerning contingencies in respect of potential penalties is set out in Note 9 to these financial statements.

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, 2007, 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 surcharge that may be levied on the Company at a daily rate of 0.05% of the underpaid taxes.

9

----

Table of Contents

CHINAWE.COM INC.NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTSTHREE MONTHS ENDED MARCH 31, 2007 AND 2006(UNAUDITED)

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.

The Company is currently suspended in the State of California due to failure to file tax reports with the Franchise Tax Board. The Company is in the process of preparing the required reports and expects to be back in good standing shortly. The Company does not believe that the amount of taxes and penalties owed will be material.

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, 2007, no awards have been made under the Plan.

10

----

Table of Contents

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 elsewhere in this document.

Overview — Results of Operations

The Company’s financial statements for the three months ended March 31, 2007 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, 2007, the Company reported a net loss of US$79,221 and as of March 31, 2007 had a negative working capital and stockholders’ deficit of US$1,029,816 and US$968,349, respectively.

Three Months ended March 31, 2007 compared to the Three Months ended March 31, 2006

Revenues.    Revenue for the three months ended March 31, 2007 was US$245,357 as compared to that of US$376,920 for the three months ended March 31, 2006, a decrease of 35%. The decrease in revenue was mainly due to the implementation of amendments to certain aspects of the compensation formula under the Asset Consulting Agreement, dated as of April 20, 2005, by and between Huizhou One Limited and CAM (PRC). Pursuant to such amendments, the base fee payable to CAM (PRC) has been significantly reduced but the collection fee has been increased at varying rates dependent upon the date of collection. Accordingly, whether or not the Company will be profitable in a given quarter will depend on the amounts collected in such quarter. The majority of collections made during this quarter were under terms of settlement agreements that provided that repayments are due in future quarters. Accordingly, the Company’s revenues related to such collections will not be realized until then.

Expenses.    Administrative and general expenses for the three months ended March 31, 2007 were US$300,647 as compared to US$282,026 for the three months ended March 31, 2006, an increase of 7%. The increase in administrative and general expenses was mainly comprised of the increase in rental expense from US$12,844 to US$25,613.

As a result of loans advanced to the Company by Vivian Chu in the third quarter of 2003, the Company has incurred interest expense of US$7,731 and US$7,791 payable to Ms. Chu, a director and the Chief Financial Officer of the Company, for the three months ended March 31, 2007 and 2006, respectively.

Taxation.    No income tax expense for the three months ended March 31, 2007 was incurred because the PRC enterprise incurred a loss from asset management and related services earned in the PRC.

As a consequence of the foregoing, we had a loss from operations for the three months ended March 31, 2007 of US$70,256 as compared to income from operations of US$83,039 for the three months ended March 31, 2006. Our net loss for the three months ended March 31, 2007 was US$79,221 as compared to net income of US$20,026 for the three months ended March 31, 2006.

Liquidity and Capital Resources

The Company’s financial statements for the three months ended March 31, 2007 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, 2007, the Company reported a net loss of US$79,221 and as of March 31, 2007 had a negative working capital and a stockholders’ deficit of US$1,029,816 and US$968,349, respectively. Although the Company has experienced difficulty in meeting its liquidity needs, management have 

11

----

Table of Contents

confidence that it will improve its financial situation in the following period by better cost control. In addition to a loan to the Company made by Vivian Chu, a director and the Company’s Chief Financial Officer, Ms. Chu and other members of management have, from time to time, made unsecured, interest-free advances to the Company to provide working capital. The advances are repayable upon demand, however, the parties making the advances have indicated their intention to not demand repayment if such repayment would have a material adverse effect on the Company’s financial condition. In the event additional advances are required, such parties may, but are not obligated to, make further advances on an unsecured and interest-free basis. See ‘‘Related Party Transactions’’ below.

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.

The Chinese central government imposes control over its foreign currency reserves through control over imports and through direct regulation of the conversion of its national currency into foreign currencies. As a result, the RMB is not freely convertible into foreign currencies.

The PRC subsidiary conducts substantially all of its business in the PRC, and its financial performance and condition is measured in terms of RMB. The revenues and profits of the subsidiary are predominantly denominated in RMB, and will have to be converted to pay dividends to the Company in US Dollars or Hong Kong Dollars. Should the RMB devalue against these currencies, such devaluation would have a material adverse effect on the Company’s profits and the foreign currency equivalent of such profits repatriated by the PRC subsidiary to the Company. The Company currently is not able to hedge its exchange rate exposure in the PRC because neither the banks in the PRC nor any other financial institution authorized to engage in foreign exchange transactions offer forward exchange contracts.

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 result 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.

12

----

Table of Contents

Related party transactions

We do not have any of the following:

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

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

Vivian Chu, a director and the Company’s Chief Financial Officer, made an unsecured loan to the Company in 2003 in an original principal amount of US$154,000. The loan bears interest at 23% per annum. The maturity date of the loan has been extended through June 2007 and is now the obligation of Chinawe Asset Management Limited, a wholly-owned subsidiary of the Company. At March 31, 2007, the balance of principal and interest on this loan was US$138,074.

From time to time members of management or affiliates thereof have made unsecured, interest-free advances to the Company to provide working capital. As of March 31, 2007, the total outstanding advances were US$358,993. During the three months ended March 31, 2007, the Company repaid aggregate advances of US$6,348.

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 Securities and Exchange Commission. 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, 2007 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.

13

----

Table of Contents

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 |
|      |

14

----

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 21, 2007                                                             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) |
|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

15

----