UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-Q





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





For the
quarterly period ended September 30, 2010





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





For the
transition period from ___ to ___





Commission
file number:  53111





CHINA
QUEST ACQUISITION CORP.


(Exact
name of registrant as specified in its charter)





Delaware
                        
                        to be applied(State
      or other jurisdiction of incorporation or
                        
                        (I.R.S.
      Employer Identification No.)organization)Room
      2119 Mingyong Building, No.60 XianRoad, Shekekou District, Dalian,
      China
                        
                        116021(Address
      of principal executive offices)
                        
                        (Zip
      Code)





Registrant’s
telephone number, including area code:  13909840703





The
registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
    Yes  þ   No
o





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting
company:





Large
      accelerated filer  ̈
            Accelerated filed ̈Non-accelerated
      filer    ̈
            Smaller
      reporting company þ





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





The
number of shares outstanding of the registrant’s common stock as of was
31,340,000 shares with $.0001 par value per share.








TABLE
OF CONTENTS





PART
      I – FINANCIAL INFORMATIONItem
      1.  Financial Statements
                    
                    3Balance Sheets
                    
                    6Statements of Operations
                    
                    7Statements of Cash Flows
                    
                    8Notes to the Financial Statements
                    
                    9Item
      2.  Management’s Discussion and Analysis of Financial Condition
      and Results of Operations
                    
                    10Item
      3.  Quantitative and Qualitative Disclosures About Market
      Risk
                    
                    12Item
      4.  Controls and Procedures
                    
                    12PART
      II – OTHER INFORMATIONItem
      1. Legal Proceedings
                    
                    13Item
      1A Risk Factors
                    
                    13Item
      2. Unregistered Sales of Equity Securities and Use of
      Proceeds
                    
                    13Item
      3. Defaults Upon Senior Securities
                    
                    13Item
      4.  Submission of Matters to a Vote of Security
      Holders
                    
                    13Item
      5.  Other Information
                    
                    13Item
      6.  Exhibits
                    
                    13Signatures
                    
                    14


2




PART
I – FINANCIAL INFORMATION





Item
1. Financial Statements





The
accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial reporting
and pursuant to the rules and regulations of the United States Securities and
Exchange Commission ("Commission"). While these statements reflect all normal
recurring adjustments which are, in the opinion of management, necessary for
fair presentation of the results of the interim period, they do not include all
of the information and footnotes required by generally accepted accounting
principles for complete financial statements. For further information, refer to
the financial statements and footnotes thereto, contained in the registration
statement filed with the Commission on Form 10-SB.




3




Stan J.H.
Lee, CPA
 2160 North Central
Rd.  Suite 203 tFort
Lee tNJ 07024
 P.O. Box
436402 tSan Diego tCA t92143-6402
 619-623-7799
Fax 619-564-3408 E-mail) stan2u@gmail.com
  
 To Whom
It May Concerns;
 
 The firm
of Stan J.H. Lee, Certified Public Accountant,  consents to the
inclusion of our report of September 20, 2010  , on the reviewed
interim condensed financial statements of China Quest Acquisition Corp. as of
September 30, 2010  in any filings that are necessary now or in the
near future with the U.S. Securities and Exchange Commission.
 
 Very
      truly yours,/s/ Stan J.H. Lee, CPAStan
      J.H. Lee, CPAOctober
      2, 2010Fort
      Lee, NJ 07024
 
 Registered
with the Public Company Accounting Oversight Board
 Member
of New Jersey Society of CPAs
  4
  Stan
J.H. Lee, CPA
 2160 North Central Rd.
Suite # 203 tFort
Lee tNJ 07024
 P.O. Box
436402 t
San Diego tCA 92143
 619-623-7799
tFax
619-564-3408 tE-mail)
stan2u@gmail.com
 
 
  Report of Independent
Registered Public Accounting Firm
 
 To the
Board of Directors of
 China
Quest Acquisition Corp.
 
 We have
reviewed the accompanying condensed balance sheet of China Quest Acquisition
Corp. as of September 30,  2010, and the related interim condensed
statements of operations and cash flows for the 9-months period then ended.
These financial statements are the representation of the management
..
 
 We
conducted our review in accordance with the standards of the Public Company
Accounting Oversight Board (United States). A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with the standards of the Public Company Accounting Oversight Board (United
States) , the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an
opinion.
 
 Based on
our review, we are not aware of any material modifications that should be made
to the accompanying condensed consolidated financial statements for them to be
in conformity with accounting principles generally accepted in the United States
of America.
 
 The
financial statements have been prepared assuming that the Company will continue
as a going concern.  The Company’s lack of operations to date and
liquidity raise substantial doubt about its ability to continue as a going
concern.  The financial statements do not include any adjustments that
might result from the outcome of this uncertainty.
  /s/ Stan J.H. Lee, CPAStan
      J.H. Lee, CPAOctober
      2, 2010Fort
      Lee, New Jersey
 
 Registered
with the Public Company Accounting Oversight Board
 Member of
New Jersey Society of Certified Public Accountants
  5
  China
Quest Acquisition Corp.
 Balance
Sheets
 
 as
      of September 30
                            
                            
                            as
      of December 31,2010
                            
                            
                            2009(Unaudited)
                            
                            
                            (Audited)Assets:Current
      Assets:Cash
      and Cash Equivalent
                            
                            $
                            -
                            
                            
                            $
                            -Total
      Assets
                            
                            $
                            -
                            
                            
                            $
                            -Liabilities
      and Shareholders' Equity:Total
      Liabilities
                            
                            $
                            -
                            
                            
                            $
                            -Shareholders'
      Equity;Preferred
      stock ( $.0001 par value) 20,000,000 shares autorixed and none issued and
      outstandingCommon
      Stock ( $.0001 par value)  250,000,000 shares authorized and
      31,340,000 shares issued and outstanding, respectively
                            
                            
                            3,134
                            
                            
                            
                            3,134Paid-in
      capital
                            
                            
                            -
                            
                            
                            
                            -Deficit
      during Development Stage
                            
                            
                            (3,134
                            )
                            
                            
                            (3,134
                            )-
                            
                            
                            
                            -Total
      Liabilities and Shareholders' Equity
                            
                            $
                            -
                            
                            
                            $
                            -
 
 See Notes
to Financial Statements
  6
 
 China
Quest Acquisition Corp.
 Statement
of Operations
 
 Cummulative
      since3-months
      ended
                          
                          
                          9-months
      ended
                          
                          
                          January
      11, 2008September
      30
                          
                          
                          September
      30
                          
                          
                          September
      30
                          
                          
                          September
      30
                          
                          
                          (
      inception)2010
                          
                          
                          2009
                          
                          
                          2010
                          
                          
                          2009
                          
                          
                          to
      September 30, 2010Revenue
                          
                          $
                          -
                          
                          
                          $
                          -
                          
                          
                          $
                          -
                          
                          
                          $
                          -
                          
                          
                          $
                          -Operating
      Expenses:General
      and administration expense
                          
                          
                          -
                          
                          
                          
                          -
                          
                          
                          
                          -
                          
                          
                          
                          -
                          
                          
                          
                          3,134Total
      Expenses:Income
      ( Loss) before income taxes
                          
                          
                          -
                          
                          
                          
                          -
                          
                          
                          
                          -
                          
                          
                          
                          -
                          
                          
                          
                          (3,134
                          )Provision
      for income taxes
                          
                          
                          -
                          
                          
                          
                          -
                          
                          
                          
                          -
                          
                          
                          
                          -Net
      loss
                          
                          $
                          -
                          
                          
                          $
                          -
                          
                          
                          $
                          -
                          
                          
                          $
                          -
                          
                          
                          $
                          (3,134
                          )Earning
      (loss) per share - Basic and Diluted
                          
                          
                          -
                          
                          
                          
                          -
                          
                          
                          
                          -
                          
                          
                          
                          -
                          
                          
                          
                          (0.00
                          )Weighted
      average common shares ( basic and diluted)
                          
                          
                          3,134,000
                          
                          
                          
                          3,134,000
                          
                          
                          
                          3,134,000
                          
                          
                          
                          3,134,000
                          
                          
                          
                          3,134,000
 
 See Notes
to Financial Statements
  7
  China
Quest Acquisition Corp.
 ( a
Development Stage Company)
 Statement
of Operations
 
 Cummulative
      sinceJanuary
      11, 20089-months
      ended
                                                                  
                                                                  
                                                                  (
      inception)September
      30, 2010
                                                                  
                                                                  
                                                                  September 30,
      2009
                                                                  
                                                                  
                                                                  to
      September 30, 2010Cash Flows From Operating
      ActivitiesNet
      loss
                                                                  
                                                                  $
                                                                  -
                                                                  
                                                                  
                                                                  $
                                                                  -
                                                                  
                                                                  
                                                                  $
                                                                  (3,134
                                                                  )Changein
      non-cash working capital items:stock issued for service
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  3,134-
                                                                  
                                                                  
                                                                  
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  -Net
      Cash provided by (used in) operations
                                                                  
                                                                  
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  --
                                                                  
                                                                  
                                                                  
                                                                  -Cash Flows From  Investing
      ActivitiesNet
      cash provided by investing activities
                                                                  
                                                                  
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  -Cash Flows From  Financing
      ActivitiesNet
      cash provided by  financing activities
                                                                  
                                                                  
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  -Net
      increase (decrease)Cash
      at the Beginning of the Period:
                                                                  
                                                                  
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  -Cash
      at the End of the Period
                                                                  
                                                                  
                                                                  -
                                                                  
                                                                  
                                                                  
                                                                  -Supplemental Disclosures of Cash Flow
      InformationInterest
      paid
                                                                  
                                                                  $
                                                                  -
                                                                  
                                                                  
                                                                  $
                                                                  -
                                                                  
                                                                  
                                                                  $
                                                                  -Income
      taxes paid
                                                                  
                                                                  $
                                                                  -
                                                                  
                                                                  
                                                                  $
                                                                  -
                                                                  
                                                                  
                                                                  $
                                                                  -
 
 See Notes
to Financial Statements
  8




CHINA
QUEST ACQUISITION CORP.


(A
DEVELOPMENT STAGE COMPANY)


NOTES
TO FINANCIAL STATEMENTS


AS OFSeptember30,2010





NOTE
1 - DESCRIPTION OF BUSINESS





Basis of
Presentation





China
Quest Acquisition Corp. (the "Company") was incorporated under the laws of the
State of Delaware on January 11, 2008.  The Company has been inactive since
inception and intends to serve as a vehicle to effect an asset acquisition,
merger, exchange of capital stock or other business combination with a domestic
or foreign business.





The
Company has not earned any revenue from operations.  Accordingly, the
Company's activities have been accounted for as those of a “Development Stage
Enterprise" as set forth in Financial Accounting Standards Board Statement No. 7
("SFAS 7").  The Company's financial statements are identified as those of
a development stage company, and that the statements of operations,
stockholders' equity and cash flows disclose activity since the date of the
Company's inception.





NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





Accounting
Method





The
Company's financial statements are prepared using the accrual method of
accounting. The Company has elected a fiscal year ending on December
31.





Use of
Estimates





The
preparation of financial statements in conformity with generally accepted
accounting  principles  requires  management to make estimates
and  assumptions that affect the reported amounts of  assets  and
 liabilities, disclosure of contingent assets and liabilities at the date
of the  financial  statements and the reported amounts of revenues and
expenses during the reporting  period.  Actual results could differ
from those estimates.





Cash
Equivalents





The
Company considers all highly liquid investments with maturity of three months or
less when purchased to be cash equivalents.





Income
Taxes





Income
taxes are provided in accordance with Statement of Financial Accounting
Standards No. 109 (SFAS 109), Accounting for Income Taxes.  A deferred tax
asset or liability is recorded for all temporary differences between financial
and tax reporting and net operating loss carry forwards.  Deferred tax
expense (benefit) results from the net change during the year of deferred tax
assets and liabilities. Deferred tax assets are reduced by a valuation allowance
when, in the opinion of management, it is more likely than not that some portion
of all of the deferred tax assets will be realized.  Deferred tax assets
and liabilities are adjusted for the effects of changes in tax laws and rates on
the date of enactment. There were no current or deferred income tax expenses or
benefits due to the Company not having any material operations for period ended
September 30, 2008.




9





Earnings
per Share





The
Company adopted the provisions of SFAS No. 128, "Earnings Per Share" ("EPS").
 SFAS No. 128 provides for the calculation of basic and diluted earnings
per share.   Basic EPS includes no dilution and is computed by
dividing income or loss available to common stockholders by the weighted average
number of common shares outstanding for the period.  Diluted EPS reflects
the potential dilution of securities that could share in the earnings or losses
of the entity.  Such amounts include shares potentially issuable pursuant
to shares to be issued, convertible debentures and outstanding options and
warrants.





Impact of
New Accounting Standards





The
 Company  does  not  expect  the  adoption
 of recently  issued  accounting pronouncements  to
 have  a  material  impact on the  Company's
 results  of operations, financial position, or cash
flow.





NOTE
3 - GOING CONCERN





The
Company's consolidated financial statements are prepared using the accrual
method of accounting in accordance with accounting principles generally accepted
in the United States of America ("GAAP"), and have been prepared on a going
concern basis, which contemplates the realization of assets and the settlement
of liabilities in the normal course of business.  The Company currently has
no source of revenue to cover its costs.  The Company will limit all
operational activities to searching and consummating a business combination.
 The Company will offer non-cash consideration and seek equity lines as the
sole method of financing for the near term.  If the Company is unable to
secure financing until a business combination is consummated, it may
substantially limit or terminate its operations or seek other business
opportunities through strategic alliances, acquisitions or other arrangements
that may dilute the interests of existing stockholders.





NOTE
4 - SHAREHOLDER'S EQUITY





On
January 11, 2008, the Board of Directors issued 31,340,000 shares of common
stock for $3,134 in services to the founding shareholder of the Company to fund
organizational start-up costs.





The
Company has the following classes of capital stock as of September 30, 2010:





Common
stock – 250,000,000 shares authorized; $0.0001 par value; 31,340,000 shares
issued and outstanding.





Preferred
stock – 20,000,000 shares authorized; $0.0001 par value; no shares issued and
outstanding.




Item
2. Management’s Discussion and Analysis of Financial Condition and Results of
Operations





In this
report references to “China Quest Acquisition”, “the Company”, “we,” “us,” and
“our” refer to China Quest Acquisition Corp., a Delaware
corporation.





FORWARD
LOOKING STATEMENTS





The U.S.
Securities and Exchange Commission (“SEC”) encourages companies to disclose
forward-looking information so that investors can better understand future
prospects and make informed investment decisions.  This report contains
these types of statements.  Words such as “may,” “will,” “intend,”
 “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or
comparable terminology used in connection with any discussion of future
operating results or financial performance identify forward-looking statements.
 You are cautioned not to place undue reliance on the forward-looking
statements, which speak only as of the date of this report.  All
forward-looking statements reflect our present expectation of future events and
are subject to a number of important factors and uncertainties that could cause
actual results to differ materially from those described in the forward-looking
statements.


10





The
following discussion and analysis should be read in conjunction with our
financial statements and notes to the financial statements included elsewhere in
this report as well as the 10-KSB annual report.  This report contains
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, or the Securities Act, and Section 21E of the
Securities Exchange Act of 1934, as amended, or the Exchange Act.  We
intend that the forward-looking statements be subject to the safe harbors
created by those sections.





COMPANY
OVERVIEW





We were
organized on January 11, 2008, as a blank check or shell company under the Laws
of the State of Delaware.  We do not currently engage in any business
activities that provide cash flow.  From inception, our primary activity
has been directed towards organizational efforts, compliance matters and
locating potential merger or acquisition candidates.  Our primary purpose
is to engage in a merger with or acquisition of one or more private domestic or
foreign companies.





BUSINESS
COMBINATION





Our main
objective is to achieve long-term growth potential through a combination with a
business.  We will not restrict the potential candidate target companies to
any specific business, industry or geographical location and, thus, may acquire
any type of business.  At present, we have no business opportunities under
contemplation for acquisitions.  No assurances can be given that we will be
successful in locating or negotiating with any target business.





We may
consider a business which has recently commenced operations, is a developing
company in need of working capital, is seeking to develop a new product or
service, or is an established business which may be experiencing financial or
operating difficulties and is in need of additional capital.
 Alternatively, a business combination may involve the acquisition of, or
merger with, a company which does not need substantial financing, but which
desires to establish a public trading market for its shares.





Any
selected target business may be a financially unstable company or an entity in
its early stages of development or growth, including entities without
established records of sales or earnings. In that event, we will be subject to
numerous risks inherent in the business and operations of financially unstable
and early stage or potential emerging growth companies. In addition, we may
effect a business combination with an entity in an industry characterized by a
high level of risk, and, although management will endeavor to evaluate the risks
inherent in a particular target business, there can be no assurance that
management will properly ascertain or assess all significant risks.





The
business combination will most likely take the form of a non-cash merger, stock
swap or stock-for-assets exchange.  It is anticipated that any securities
issued in any such business combination would be issued in reliance upon
exemption from registration under applicable federal and state securities laws.
 As may dictate by the transaction, the surviving company may register all
or a part of such securities immediately after the transaction is consummated or
at specified times thereafter.





RESULTS
OF OPERATION





Net
Revenue





The net
revenues for the three months ended September30, 2010 was
$0.





The net
revenues for the three months ended September 30 , 2010  was
$0.





The net
revenues for the nine months ended September 30,
2010  was $0.


11





The net
revenues for the nine months ended September 30 , 2010  was
$0.





Operating
Expenses





The
operating expenses for the three months ended September30, 2010  was
$0.





The
operating expenses for the nine months ended September 30, 2010  was
$0.





Net
Income





As a
result of the above, the net income for the three months ended September30,
2010   was $0.  The basic and diluted income per share was
$0 during the three months ended September 30, 2010


Liquidity
and Capital Resources





As of
September 30, 2010  ,
we have $0 in cash and assets and $0 in current liabilities.





Cash
Flows from Operating Activities





We do not
currently engage in any business activities that provide cash flow.  The
costs of investigating and analyzing business combinations will be financed by
our stockholders, management or other investors.





Item 3.
Quantitative and Qualitative Disclosures About Market Risk





Not
applicable.





Item
4. Controls and Procedures





Disclosure
Controls and Procedures





We
maintains disclosure controls and procedures that are designed to ensure that
information required to be disclosed in our filings under the Exchange Act is
recorded, processed, summarized and reported within the periods specified in the
rules and forms of the SEC.  This information is accumulated to allow
timely decisions regarding required disclosure.  Our Chief Executive
Officer and principal financial officer evaluated the effectiveness of our
disclosure controls and procedures as of the end of the period covered by this
report.  Based on that evaluation, our CEO concluded that our disclosure
controls and procedures were effective.





Management’s
Report on Internal Control over Financial Reporting





Our CEO
is responsible to design or supervise a process to be effected by our board of
directors that provides reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles.  The
policies and procedures include:





•
maintenance of records in reasonable detail to accurately and fairly reflect the
transactions and dispositions of assets,





•
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures are being made only in
accordance with authorizations of management and directors, and





•
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of assets that could have a material effect on
our financial statements.





Our
management determined that there were no changes made in our internal controls
over financial reporting during the third quarter of 2008 that have materially
affected, or are reasonably likely to materially affect our internal control
over financial reporting.




12





PART
II – OTHER INFORMATION





Item
1.  Legal Proceedings





None.





Item
1A.  Risk Factors





Not
applicable.





Item
2.  Unregistered Sales of Equity Securities and Use of
Proceeds





None.





Item
3.  Defaults Upon Senior Securities





None.





Item
4.  Submission of Matters to a Vote of Security Holders





None.





Item
5.  Other Information





None.





Item
6.  Exhibits





Exhibit
Number, Name and/or Identification of Exhibit




31
            
            Certification
      of the Chief Executive Officer and Chief Financial Officer pursuant to
      Section 302 of the Sarbanes-Oxley Act of 200232
            
            Certification
      of the Chief Executive Officer and Chief Financial Officer pursuant to
      U.S.C. Section 1350 as adopted pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002




13




SIGNATURES





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





CHINA
      QUEST ACQUISITION CORP.(Registrant)Date:
      October 7, 2008By:
                    /s/
      Chin Yung KongName:
      Chin Yung KongTitle:
      Chief Executive Officer,Principal
      Financial Officer and
Director




14