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 September 30, 2006

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

     For the transition period from _________________ to _____________________

     Commission file number:                       000-50559
                            __________________________________________________

                         SCIENTIFIC ENERGY, INC.
------------------------------------------------------------------------------
      (Exact name of small business issuer as specified in its charter)

              Utah                                   87-0680657
-------------------------------------------------------------------------------
State or other jurisdiction               (I.R.S. Employer Identification No.)
  of incorporation or organization)

                27 Weldon Street, Jersey City, New Jersey 07306
-------------------------------------------------------------------------------
                   (Address of principal executive offices)

                                (201) 985-8100
-------------------------------------------------------------------------------
                           (Issuer's telephone number)

                                     N/A
-------------------------------------------------------------------------------
          (Former name, former address and former fiscal year, if changed
                               since last report)

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15 (d) of the Exchange Act during the past 12 months (or for such shorter
period that the Registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.   Yes [X]    No [ ]

                 APPLICABLE ONLY TO CORPORATE ISSUERS

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

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 49,158,488 shares of common stock,
par value $0.01, as of November 15, 2006.

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





                             SCIENTIFIC ENERGY, INC.


                                Table of Contents




Part I. Financial Information

Item1.  Financial Statements

  Balance Sheet as of September 30, 2006 (unaudited)....................       3

  Statements of Operations (unaudited) for the Three and
    Nine Months Ended September 30, 2006 and 2005.......................       4

  Statements of Cash Flows (unaudited) for the Nine Months
    Ended September 30, 2006 and 2005...................................       5

  Notes to Financial Statements.........................................       6


Item 2. Management's Discussion and Analysis or Plan of Operation.......      10

Item 3. Controls and Procedures.........................................      12

Part II.   Other Information

Item 1.  Legal Information...............................................     13
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.....     13
Item 3.  Defaults Upon Senior Securities.................................     13
Item 4.  Submission of Matters to a Vote of Security Holders.............     13
Item 5.  Other Information...............................................     13
Item 6.  Exhibits and Reports on Form 8-K................................     13

Signatures...............................................................     14








                      PART I.   FINANCIAL INFORMATION



ITEM 1.  Financial Statements



                            SCIENTIFIC ENERGY, INC.
                        (A Development Stage Company)
                          Balance Sheet (Unaudited)
                             September 30, 2006


                                   ASSETS
Current Assets:
Cash and cash equivalents...............................         $      375,039
                                                                 --------------
   Total Current Assets.................................                375,039

Property, Plant, & Equipment:
Furniture and fixtures..................................                    152
Office equipment........................................                  1,222
                                                                 --------------
   Total Property, Plant, & Equipment...................                  1,374
   Less: Accumulated depreciation.......................                   (89)
                                                                 --------------
   Net Fixed Assets.....................................                  1,285
                                                                 --------------

Total Assets............................................         $      376,324
                                                                 ==============


                      LIABILITIES AND STOCKHOLDERS' EQUITY


Current Liabilities:
Accounts payable........................................          $         245
                                                                 --------------
   Total Current Liabilities............................                    245

Stockholders' Equity:
 Preferred stock: par value $0.01, 25,000,000 shares
   authorized; none issued and outstanding..............                      -
Common stock: par value $0.01; 100,000,000 shares
   authorized; 49,158,488 shares issued and outstanding.                491,585
Additional paid-in capital..............................                791,604
Deficit accumulated during the development stage........              (907,110)
                                                                 --------------
    Total stockholders' equity..........................                376,079
                                                                 --------------

Total Liabilities and Stockholders' Equity..............         $      376,324
                                                                 ==============



           See accompanying notes to unaudited financial statements







                          SCIENTIFIC ENERGY, INC.
                       (A Development Stage Company)
                          Statements of Operations
                                (Unaudited)


<TABLE>
<CAPTION>

                                                       Three months ended         Nine months ended           Cumulative
                                                          September 30,              September 30,         Since May 30, 2001
                                                 --------------------------  ----------------------------    Inception of
                                                     2006           2005          2006            2005     Development stage
                                                 -------------- ------------ -------------- ------------- -------------------

                                                    <c>          <c>           <c>           <c>                <c>

Revenue......................................    $           -  $         -   $           -  $          -   $              -
                                                 -------------  -----------   -------------  ------------  ------------------

Expenses
Research and development.....................                -            -               -             -              68,090
General and administrative...................           10,159        1,858          30,099        10,009             568,273
                                                 -------------  -----------   -------------  ------------    ----------------
   Total expenses............................           10,159        1,858          30,099        10,009             636,363

Loss from operations.........................         (10,159)      (1,858)        (30,099)      (10,009)           (636,363)

Other income (expense)
Interest, net................................                -        (677)           (100)       (2,168)            (20,207)
Write-down of technology and royalties.......                -            -               -             -           (250,040)
                                                 -------------  -----------   -------------  -------------   ----------------
    Total other expense......................                -        (677)           (100)       (2,168)           (270,247)

Net loss before taxes........................         (10,159)      (2,535)        (30,199)      (12,177)           (906,610)

Income tax expense...........................                -            -               -             -               (500)
                                                 -------------  -----------    ------------  ------------    ----------------

Net loss.....................................    $    (10,159)  $   (2,535)    $   (30,199)  $   (12,177)    $      (907,110)
                                                 =============  ===========    ============  ============    ================



Basic and diluted loss per share.............    $      (0.00)  $    (0.00)    $     (0.00)  $     (0.01)
                                                 =============  ===========    ============  ============

Weighted average common shares outstanding...       49,158,488    1,243,488      28,352,622     1,243,488
                                                 =============  ===========    ============  ============




                          See accompanying notes to unaudited financial statements


</TABLE>







                                   SCIENTIFIC ENERGY, INC.
                                (A Development Stage Company)
                                   Statements of Cash Flows
                                          (Unaudited)

<TABLE>
<CAPTION>

                                                               Nine months ended September 30,      Since May 30, 2001
                                                             ----------------------------------        Inception of
                                                                  2006               2005           Development stage
                                                             ----------------  ----------------  ---------------------

                                                                 <c>                <c>                <c>
Cash Flows from Operating Activities:
Net loss..............................................       $       (30,199)  $       (12,177)    $        (907,110)
Adjustments to reconcile net income to net cash
 used in operating activities:
   Depreciation.......................................                     89                 -                    89
   Write-down of technology and royalties.............                      -                 -               250,040
   Stock issued for expenses..........................                      -                 -                31,200
Changes in operating assets and liabilities:
   Increase (decrease) in accounts payable............                (1,223)          (20,219)                   245
   Increase (decrease) in income tax payable..........                  (100)             (100)                     -
   Increase (decrease) in accrued expenses............                      -             1,752                     -
                                                             ----------------  ----------------   --------------------
Net cash used in operating activities.................               (31,433)          (30,744)              (625,536)
                                                             ----------------  ----------------   --------------------

Cash Flows from Investing Activities:
Purchase of property, plant and equipment.............                (1,374)                 -                (1,374)
                                                             ----------------  ----------------   --------------------
Net cash used in investing activities.................                (1,374)                 -                (1,374)
                                                             ----------------  ----------------   --------------------

Cash Flows from Financing Activities:
Payment on shareholder loan...........................                      -                 -               (38,617)
Note payable shareholder..............................                (3,720)            30,700                629,543
Issuance of common stock..............................                400,000                 -                400,000
Contributed capital by shareholder....................                 11,023                 -                 11,023
                                                             ----------------  ----------------   --------------------
Net cash provided by financing activities.............                407,303            30,700              1,001,949
                                                             ----------------  ----------------   --------------------


Increase (decrease) in cash and cash equivalents......                374,496              (44)                375,519
                                                             ----------------  ----------------   ---------------------

Cash and cash equivalents, beginning of period........                    543                62                      -

Cash and cash equivalents, end of period..............        $       375,039  $             18    $           375,039
                                                             ================  ================   ====================


Supplemental disclosure of cash flow information:

  Interest paid in cash...............................        $             -  $              -    $             6,620
                                                             ================  ================    ===================
  Income taxes paid in cash...........................        $           100  $              -    $               400
                                                             ================  ================    ===================


Supplemental Disclosure of non-cash investing and financing activities:

  Common stock exchanged for technology...............        $             -   $             -     $          250,040
                                                             ================   ===============     ==================
  Note payable converted to parent company stock......        $             -   $             -     $          541,344
                                                             =================  ===============     ==================




                          See accompanying notes to unaudited financial statements

</TABLE>






                           SCIENTIFIC ENERGY, INC.
                       (A Development Stage Company)

                        NOTES TO FINANCIAL STATEMENTS



Note 1.   NATURE OF OPERATIONS

Scientific Energy, Inc. (the "Company") was incorporated under the laws of the
State of Utah on May 30, 2001. The current business plan of the Company is to
acquire energy - related technologies, equipment and crude oil or natural gas
fields.  As of September 30, 2006, the Company was in the development stage and
no agreements have been reached.

Separation from Parent Company

On June 6, 2001, Scientific Energy, Inc. (Utah) and Electronic Game Card, Inc.
entered into an agreement and plan of reorganization.  Pursuant to the
agreement, Scientific Energy, Inc. (Utah) acquired 20,000,000 shares of
Electronic Game Card, Inc. in exchange for 100% of the issued and outstanding
shares of Scientific Energy (Utah). On December 5, 2003, the Company entered
into an agreement wherein the Company would receive 100% of its shares back
from Electronic Game Card, Inc.  As a result, the Company was no longer a
wholly owned subsidiary of Electronic Game Card, Inc.

Note 2.   BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America
for interim financial information and with the instructions to Form 10-QSB and
item 310 of Regulation SB. Accordingly, they do not include all of the
information and footnotes required by accounting principles generally accepted
in the United States of America for annual financial statements. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. The operating
results for the nine months ended September 30, 2006 are not necessarily
indicative of the results that may be expected for the year ending December 31,
2006. For further information, refer to the financial statements and footnotes
thereto included in the Company's Form 10-KSB for the year ended December 31,
2005.

Note 3.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents

For purposes of the statements of cash flows, cash and cash equivalents includes
cash on hand and demand deposits held by banks.

Concentration of Credit Risk

The Company has no significant off-balance-sheet concentrations of credit risk
such as foreign exchange contracts, options contracts or other foreign hedging
arrangements.

Pervasiveness of Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles required management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and 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.

Property, Plant, and Equipment

Property, plant, and equipment are carried at cost less accumulated
depreciation, which is computed using the straight-line method over the useful
lives of the assets. Upon disposal of assets, the cost and related accumulated
depreciation are removed from the accounts and any gain or loss is included in
income.  Property and equipment are depreciated over their estimated useful
lives as follows:

       Computer equipment             5 years
       Furniture and fixtures         7 years

Depreciation expense for the nine months ended September 30, 2006 and 2005 was
$67 and $0, respectively.

Loss per Share

Basic loss per share has been computed by dividing the loss for the periods
applicable to the common stockholders by the weighted average number of common
shares outstanding during the years.  There were no common equivalent shares
outstanding at September 30, 2006 and 2005.

Reclassification

Certain reclassifications have been made in the 2005 financial statements to
conform with the September 30, 2006 presentation.

Note 4 - COMMON STOCK TRANSACTIONS

On September 4, 2005, the Company issued 3,000,000 shares of common stock to
its four directors for services rendered.  In connection with the issuance of
the shares, $30,000 was recorded as consulting expense.

On May 23, 2006, the Company entered into a Stock Purchase Agreement with each
of Kelton Capital Group Ltd., the controlling shareholder of the Company, and
each of ten individual investors in a private placement. Pursuant to the
Agreement, the Company sold and investors purchased an aggregate of 40,000,000
shares of the Company's common stock for an aggregate consideration of
$400,000.

Note 5 - ADDITIONAL PAID-IN CAPITAL

On January 1, 2004, the president of the Company gave the Company an unsecured
line of credit of up to $250,000.  The Line carries interest at prime.  On
September 4, 2005, $49,150 of the note was converted into 4,915,000 shares of
the Company's common stock.

In connection with the change in control of the Company, on May 31, 2006, the
selling shareholders paid off all liabilities (Accounts Payable, Note Payable-
Shareholder) of the Company by using their personal funds in an aggregate amount
of $11,023, which was recorded as additional paid-in capital.


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

This report contains certain forward-looking statements that involve risks and
uncertainties. We use words such as "anticipate," "believe", "expect", "future",
"intend", "plan", and similar expressions to identify forward - looking
statements. These statements are only predictions. Although we believe that the
expectations reflected in these forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or
achievements. You should not place undue reliance on these forward-looking
statements, which apply only as of the date of this prospectus. Our actual
results could differ materially from those anticipated in these forward-looking
statements.

Overview
--------

The Company is a development stage company that has not engaged in material
operations or realized revenues for several years. On April 13, 2006, Kelton
Capital Group Limited acquired 7,905,000 shares of the Company's issued and
outstanding common stock, which represented approximately 86.3% of the Company's
outstanding shares, for the aggregate cash purchase price of $539,929, from four
majority shareholders of the Company. Subsequent to the closing of the change
in control, the four members of the Company's Board of Directors, Dodd Crosland,
Jana Meyer, Mark Clawson and Dale Gledhill, tendered their resignations as the
Company's directors and executive officers, and on May 1, 2006, Mary Jiang was
elected as a Director and Corporate Secretary, and on May 8, 2006, Stanley Chan
was elected as the Company's President, Chief Executive Officer, Chief Financial
Officer and a Director.

Prior to the share acquisition in April 2006, the Company was to develop and
manufacture various energy generation devices and energy efficient mechanisms
for use in currently available products. The current business plan of the
Company is to acquire energy related technologies, equipment and crude oil or
natural gas fields. As of the date of this Report, no agreements have been
reached.

Results of Operations
---------------------

Three Months Ended September 30, 2006 Compared to Three Months Ended
--------------------------------------------------------------------
September 30, 2005:
------------------

Revenue

For the three months ended September 30, 2006, the Company had generated no
revenue as well as for the same period of prior year.

Operating Expenses

For the three months ended September 30, 2006, general and administrative
expenses were $10,159 as compared to $1,858 for the three months ended
September 30, 2005. The increase in general and administrative expenses of
$8,301 was largely due to professional fees of $5,800 in connection with the
filing of the Company's Information Statement with the US Securities and
Exchange Commission and auditors' fee for the review of the Company's quarterly
report.

Interest Expenses

For the three months ended September 30, 2006, no interest expense was incurred
because all shareholder loans have been repaid, as compared to $677 for the
same period of the previous year.

Net Loss

For the three months ended September 30, 2006, the Company had a net loss of
$10,159, or $0.00 per share, as compared to a net loss of $2,535, or $0.00 per
share, for the same period of the prior year.


Nine Months Ended September 30, 2006 Compared to Nine Months Ended
-----------------------------------------------------------------
September 30, 2005:
------------------

Revenue

For the nine months ended September 30, 2006, the Company had generated no
revenue as well as for the same period of the previous year.

Operating Expenses

For the nine months ended September 30, 2006, general and administrative
expenses were $30,099 as compared to $10,009 for the nine months ended
September 30, 2005. The increase in general and administrative expenses of
$20,090 was largely due to the professional fee of $17,188 in connection with
the share acquisition in May 2006 and a variety of the SEC filings.

Interest Expenses

For the nine months ended September 30, 2006, no interest expense was incurred
because all loans were paid off, as compared to $2,168 for the same period of
the previous year.

Net Loss

For the nine months ended September 30, 2006, the Company had a net loss of
$30,199, or $0.00 per share, as compared to a net loss of $12,177, or $0.01 per
share, for the same period of the prior year.

LIQUIDITY AND CAPITAL RESOURCES

For the past two years, the Company was primarily funded by private sale of its
common stock and an unsecured line of credit of up to $250,000 from the former
president of the Company. The loan was repayable on demand with interest at
prime rate. On September 4, 2005, $49,150 of the note was converted into
4,915,000 shares of the Company's common stock. As of September 30, 2006, all
shareholder loans have been paid off.

On May 23, 2006, the Company entered into a Stock Purchase Agreement with each
of Kelton Capital Group Ltd., the controlling shareholder of the Company, and
each of ten individual investors in a private placement. Pursuant to the
Agreement, the Company sold and investors purchased an aggregate of 40,000,000
shares of the Company's common stock for an aggregate consideration of
$400,000.

For the nine months ended September 30, 2006, the Company's operating activities
used net cash of $31,433, primarily due to net loss of $30,199 and decrease in
accounts payable of $1,223. For the same period, the Company used $1,374 in
investing activities for purchase of office furniture and equipment. During the
nine-month period ended September 30, 2006, the Company's financing activities
provided $407,303 of cash, largely by issuing 40,000,000 shares of its common
stock at a price of $0.01 per share.

In implementing its business plan, the Company may need additional capital,
most likely the only method available will be the private sale of its
securities. Because of the nature of the Company as a development stage company,
it is unlikely that it could make a public sale of securities or be able to
borrow any significant sum from either a commercial or private lender.  There
can be no assurance that the Company will be able to obtain additional funding
when and if needed, or that such funding, if available, can be obtained on
terms acceptable to the Company.


ITEM 3.  CONTROLS AND PROCEDURES

The Company's Chief Executive Officer and Chief Financial Officer are
responsible for establishing and maintaining disclosure controls and procedures
for the Company.

(a) Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, the Company carried out an
evaluation, under the supervision and with the participation of the Company's
management, including the Company's President, of the effectiveness of the
design and operation of the Company's disclosure controls and procedures
pursuant to Rule 13a-15 under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"). Based upon the evaluation, the Company's President
concluded that, as of the end of the period, the Company's disclosure controls
and procedures were effective in timely alerting him to material information
relating to the Company required to be included in the reports that the Company
files and submits pursuant to the Exchange Act.

(b) Changes in Internal Controls

Based on this evaluation as of September 30, 2006, there were no significant
changes in the Company's internal controls over financial reporting or in any
other areas that could significantly affect the Company's internal controls
subsequent to the date of his most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.



                      PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

         None.

Item 2.  Changes in 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 and Reports on Form 8-K

 (a)    Exhibits:

Exhibit No.          Title of Document
----------      --------------------------------
  31              Section 302 Certification
  32              Section 906 Certification

(b)    Reports on Form 8-K.

On July 28, 2006, the Company filed a Form 8-K under Item 3.03 and 5.03 to
report that the Board of Directors of the Company unanimously voted to amend
the Articles of Incorporation of the Company to effect an one-for-ten reverse
stock split of its issued and outstanding common stock.




                                   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.



SCIENTIFIC ENERGY, INC.


Date:  November 16, 2006



By: /s/ Stanley Chan
------------------------------------
 Stanley Chan
 President and Chief Financial Officer