---

As filed with the Securities and Exchange Commission on May 15,
2006

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-QSB

(Mark One)

[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
  SECURITIES EXCHANGE ACT OF 1934

For the quarter ended March 31, 2006

OR

[]
  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 **333-120926**

SOLAR ENERTECH CORP.(Exact name of registrant as specified in its charter)

|Nevada                         | 98-0434357         
|------------------------------ | -------------------
|State or other jurisdiction of | (I.R.S. Employer   
|incorporation or organization  | Identification No.)

**1600 Adams Drive Menlo Park, CA
94025**(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code
**(650) 688-5800**

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

Indicate by check mark whether the registrant (1) has filed all
  reports required to be filed by Section 13 or 
  15(d) of the Securities Exchange Act of 1934 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 [ x ] No []

Number of shares outstanding of the registrants class of common
stock as of May 15, 2006: **73,700,012**

Authorized share capital of the registrant: 200,000,000
common shares , par value of $0.001

The Company recorded $nil revenue for the quarter ended March
31, 2006

---

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS



|                                         | Page Number
|---------------------------------------- | -----------
|                                         |            
|Balance Sheet                            | F-2        
|                                         |            
|Statements of
      Operations           | F-3        
|                                         |            
|Statement of Cash Flows                  | F-4        
|                                         |            
|Statements of
      Stockholders Equity | F-5        
|                                         |            
|Notes to the Financial
      Statements  | F-6        

2

---

|SOLAR ENERTECH CORP.                  
|--------------------------------------
|                                      
|(Formerly Safer Residence Corporation)
|                                      
|(A Development Stage Company)         
|                                      
|SECOND QUARTER FINANCIAL STATEMENTS   
|                                      
|MARCH 31, 2006                        
|(Stated in U.S. Dollars)              
|(Unaudited)                           

---

|SOLAR ENERTECH CORP.                  
|--------------------------------------
|(Formerly Safer Residence Corporation)
|(A Development Stage Company)         
|                                      
|INTERIM BALANCE SHEET                 
|(Stated in U.S. Dollars)              
|(Unaudited)                           

|                                                            |   | MARCH 31 |   |   | SEPTEMBER 30 |  
|----------------------------------------------------------- | - | -------- | - | - | ------------ | -
|                                                            |   | 2006     |   |   | 2005         |  
|ASSETS                                                      |   |          |   |   |              |  
|                                                            |   |          |   |   |              |  
|Current                                                     |   |          |   |   |              |  
|Cash and cash equivalent                                    | $ | 34,367   |   | $ | 48,401       |  
|                                                            |   |          |   |   |              |  
|Equipment, Net                                              |   | 6,394    |   |   | 7,592        |  
|                                                            | $ | 40,761   |   | $ | 55,993       |  
|LIABILITIES                                                 |   |          |   |   |              |  
|                                                            |   |          |   |   |              |  
|Current                                                     |   |          |   |   |              |  
|Accounts payable and accrued liabilities                    | $ | 9,209    |   | $ | 3,400        |  
|                                                            |   |          |   |   |              |  
|STOCKHOLDERS EQUITY                                        |   |          |   |   |              |  
|                                                            |   |          |   |   |              |  
|Capital Stock                                               |   |          |   |   |              |  
|Authorized:                                                 |   |          |   |   |              |  
|200,000,000
      common shares, par value $0.001 per share |   |          |   |   |              |  
|                                                            |   |          |   |   |              |  
|Issued and outstanding:                                     |   |          |   |   |              |  
|72,700,012 common shares at March 31, 2006                  |   |          |   |   |              |  
|136,400,000
      common shares at September 30, 2005       |   | 72,700   |   |   | 136,400      |  
|                                                            |   |          |   |   |              |  
|Additional paid-in capital                                  |   | 30,300   |   |   | (33,400      | )
|                                                            |   |          |   |   |              |  
|Deficit Accumulated During the Development Stage            |   | (71,448  | ) |   | (50,407      | )
|                                                            |   | 31,552   |   |   | 52,593       |  
|                                                            |   |          |   |   |              |  
|                                                            | $ | 40,761   |   | $ | 55,993       |  

The accompanying notes are an integral part of the financial statements.

---

|SOLAR ENERTECH CORP.                  
|--------------------------------------
|(Formerly Safer Residence Corporation)
|(A Development Stage Company)         
|                                      
|INTERIM STATEMENT OF OPERATIONS       
|(Stated in U.S. Dollars)              
|(Unaudited)                           

|                                 |   |                    |   |   |                  |   |   |                 |   |   |             |   |   | CUMULATIVE     |  
|-------------------------------- | - | ------------------ | - | - | ---------------- | - | - | --------------- | - | - | ----------- | - | - | -------------- | -
|                                 |   |                    |   |   |                  |   |   |                 |   |   |             |   |   | PERIOD FROM    |  
|                                 |   | THREE MONTHS ENDED |   |   | SIX MONTHS ENDED |   |   | INCEPTION ON    |  
|                                 |   | MARCH 31           |   |   | MARCH 31         |   |   | JULY 7, 2004 TO |  
|                                 |   | 2006               |   |   | 2005             |   |   | 2006            |   |   | 2005        |   |   | MARCH 31, 2006 |  
|                                 |   |                    |   |   |                  |   |   |                 |   |   |             |   |   |                |  
|                                 |   |                    |   |   |                  |   |   |                 |   |   |             |   |   |                |  
|                                 |   |                    |   |   |                  |   |   |                 |   |   |             |   |   |                |  
|Revenue                          | $ | -                  |   | $ | -                |   | $ | -               |   | $ | -           |   | $ | -              |  
|                                 |   |                    |   |   |                  |   |   |                 |   |   |             |   |   |                |  
|                                 |   |                    |   |   |                  |   |   |                 |   |   |             |   |   |                |  
|Expenses                         |   |                    |   |   |                  |   |   |                 |   |   |             |   |   |                |  
|Organizational costs             | $ | -                  |   | $ | -                |   | $ | -               |   | $ | -           |   | $ | 936            |  
|Professional fees                |   | 8,492              |   |   | 1,715            |   |   | 11,715          |   |   | 9,008       |   |   | 27,201         |  
|Office and administration        |   | 2,337              |   |   | 61               |   |   | 5,128           |   |   | 148         |   |   | 9,645          |  
|Management fees                  |   | 3,000              |   |   | -                |   |   | 3,000           |   |   | -           |   |   | 3,000          |  
|Marketing                        |   | -                  |   |   | -                |   |   | -               |   |   | -           |   |   | 29,068         |  
|Amortization                     |   | 599                |   |   | -                |   |   | 1,198           |   |   | -           |   |   | 1,598          |  
|                                 |   | 14,428             |   |   | 1,776            |   |   | 21,041          |   |   | 9,156       |   |   | 71,448         |  
|                                 |   |                    |   |   |                  |   |   |                 |   |   |             |   |   |                |  
|Net Loss for the Period          | $ | (14,428            | ) | $ | (1,776           | ) | $ | (21,041         | ) | $ | (9,156      | ) | $ | (71,448        | )
|                                 |   |                    |   |   |                  |   |   |                 |   |   |             |   |   |                |  
|                                 |   |                    |   |   |                  |   |   |                 |   |   |             |   |   |                |  
|Basic and Diluted Loss per Share | $ | (0.00              | ) | $ | (0.00            | ) | $ | (0.00           | ) | $ | (0.00       | ) |   |                |  
|                                 |   |                    |   |   |                  |   |   |                 |   |   |             |   |   |                |  
|Weighted Average Number of       |   |                    |   |   |                  |   |   |                 |   |   |             |   |   |                |  
|Shares Outstanding *             |   | 111,627,782        |   |   | 101,200,000      |   |   | 124,150,002     |   |   | 101,200,000 |   |   |                |  

* The weighted average number of shares
  outstanding for the prior years has been retroactively restated to reflect a
  forward stock split of 44 new shares for one old share, effective February 27,
  2006 (Note 5).

The accompanying notes are an integral part of the financial statements.

---

|SOLAR ENERTECH CORP.                  
|--------------------------------------
|(Formerly Safer Residence Corporation)
|(A Development Stage Company)         
|                                      
|INTERIM STATEMENT OF CASH FLOWS       
|(Stated in U.S. Dollars)              
|(Unaudited)                           

CUMULATIVEPERIOD FROMTHREE MONTHS ENDED
      
      
      SIX MONTHS ENDED
      
      
      INCEPTION ONMARCH 31
      
      
      MARCH 31
      
      
      JULY 7, 2004 TO2006
      
      
      2005
      
      
      2006
      
      
      2005
      
      
      MARCH 31, 2006Cash Flows from Operation ActivityNet Loss for the Period
      $
      (14,428
      )
      $
      (1,776
      )
      $
      (21,041
      )
      $
      (9,156
      )
      $
      (71,448
      )Adjustments to reconcile net loss tonet cash used in operating activitiesAmortization
      
      599
      
      
      -
      
      
      1,198
      
      
      -
      
      
      1,598Accounts payable andaccrued liabilities
      
      5,586
      
      
      (348
      )
      
      5,809
      
      
      (55
      )
      
      9,209(8,243
      )
      
      (2,124
      )
      
      (14,034
      )
      
      (9,211
      )
      
      (60,641
      )Cash Flows Used in Investing ActivityAdditions to capital assets
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (7,992
      )Cash Flows from Financing ActivityIssuance of common shares
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      103,000Increase (Decrease) in Cash Duringthe Period
      
      (8,243
      )
      
      (2,124
      )
      
      (14,034
      )
      
      (9,211
      )
      
      34,367Cash, Beginning of Period
      
      42,610
      
      
      14,712
      
      
      48,401
      
      
      21,799
      
      
      -Cash, End of
        Period
      $
      34,367
      
      $
      12,588
      
      $
      34,367
      
      $
      12,588
      
      $
      34,367Supplemental Disclosure of CashFlow InformationCash paid for:Interest
      $
      -
      
      $
      -
      
      $
      -
      
      $
      -
      
      $
      -Income taxes
      $
      -
      
      $
      -
      
      $
      -
      
      $
      -
      
      $
      -


The accompanying notes are an integral part of the financial statements.

---

|SOLAR ENERTECH CORP.                                        
|------------------------------------------------------------
|(Formerly Safer Residence Corporation)                      
|(A Development Stage Company)                               
|                                                            
|INTERIM STATEMENT OF STOCKHOLDERS EQUITY                   
|PERIOD FROM INCEPTION, JULY 7, 2004, TO MARCH
      31, 2006
|(Stated in U.S. Dollars)                                    
|(Unaudited)                                                 

DEFICITCAPITAL STOCK
      
      ACCUMULATEDNUMBER
      
      
      
      
      
      ADDITIONAL
      
      
      DURING THEOF
      
      
      
      
      
      PAID-IN
      
      
      DEVELOPMENTSHARES *
      
      
      AMOUNT
      
      
      CAPITAL
      
      
      STAGE
      
      
      TOTALInception, July 7, 2004
      
      -
      
      $
      -
      
      $
      -
      
      $
      -
      
      $
      -July 7, 2004  Shares issued
        for cash
      
      74,800,000
      
      
      74,800
      
      
      (57,800
      )
      
      -
      
      
      17,000August 20, 2004  Shares
        issued for cash
      
      26,400,000
      
      
      26,400
      
      
      (20,400
      )
      
      -
      
      
      6,000Net loss for the period
      
      -
      
      
      -
      
      
      -
      
      
      (2,701
      )
      
      (2,701
      )Balance, September 30, 2004
      
      101,200,000
      
      
      101,200
      
      
      (78,200
      )
      
      (2,701
      )
      
      20,299August 23, 2005 - Shares issued
        for cash
      
      35,200,000
      
      
      35,200
      
      
      44,800
      
      
      -
      
      
      80,000Net loss for the year
      
      -
      
      
      -
      
      
      -
      
      
      (47,706
      )
      
      (47,706
      )Balance, September 30, 2005
      
      136,400,000
      
      
      136,400
      
      
      (33,400
      )
      
      (50,407
      )
      
      52,593Capital stock returned to the
        treasury
      
      (63,699,988
      )
      
      (63,700
      )
      
      63,700
      
      
      -
      
      
      -Net loss for the period
      
      -
      
      
      -
      
      
      -
      
      
      (21,041
      )
      
      (21,041
      )Balance, March 31, 2006
      
      72,700,012
      
      $
      72,700
      
      $
      30,300
      
      $
      (71,448
      )
      $
      31,552


* The common stock issued has been retroactively restated to
  reflect a forward stock split of 44 new shares for one old share, effective
  February 27, 2006 (Note 5).

The accompanying notes are an integral part of the financial statements.

---

|SOLAR ENERTECH CORP.                  
|--------------------------------------
|(Formerly Safer Residence Corporation)
|(A Development Stage Company)         
|                                      
|NOTES TO INTERIM FINANCIAL STATEMENTS 
|MARCH 31, 2006                        
|(Unaudited)                           
|(Stated in U.S. Dollars)              

|1. | BASIS OF PRESENTATION AND NATURE OF OPERATIONS
|-- | ----------------------------------------------
|   |                                               
|   | a)                                            
|   |                                               
|   |                                               
|   |                                               
|   | b)                                            
|   |                                               
|   |                                               
|   |                                               
|   | c)                                            
|   |                                               
|   |                                               
|   |                                               
|   | d)                                            
|   |                                               
|   |                                               
|   |                                               
|   |                                               

---

|SOLAR ENERTECH CORP.                  
|--------------------------------------
|(Formerly Safer Residence Corporation)
|(A Development Stage Company)         
|                                      
|NOTES TO INTERIM FINANCIAL STATEMENTS 
|MARCH 31, 2006                        
|(Unaudited)                           
|(Stated in U.S. Dollars)              

|2. | SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | The financial statements of the Company have
        been prepared in accordance with generally accepted accounting principles
        in the United States of America. Because a precise determination of many
        assets and liabilities is dependent upon future events, the preparation
        of financial statements for a period necessarily involves the use of estimates,
        which have been made using careful judgment. Actual results may vary from
        these estimates.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | The financial statements have, in managements
        opinion, been properly prepared within reasonable limits of materiality
        and within the framework of the significant accounting policies summarized
        below:                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

---

|SOLAR ENERTECH CORP.                  
|--------------------------------------
|(Formerly Safer Residence Corporation)
|(A Development Stage Company)         
|                                      
|NOTES TO INTERIM FINANCIAL STATEMENTS 
|MARCH 31, 2006                        
|(Unaudited)                           
|(Stated in U.S. Dollars)              

|2. | SIGNIFICANT ACCOUNTING POLICIES(Continued)                            
|-- | ----------------------------------------------------------------------
|   |                                                                       
|   | e)                                                                    
|   |                                                                       
|   |                                                                       
|   |                                                                       
|3. | EQUIPMENT                                                             
|   |                                                                       
|   | The equipment is stated at cost less accumulated
        depreciation.

MARCH 31
      
      SEPTEMBER 302006
      
      2005(Unaudited)
      
      (Audited)Accumulated
      Net Book
      Net BookCost
      Depreciation
      Value
      ValueVideo equipment
      $
        7,992
      $
        1,598
      $6,394
      $
        7,592


|4. | RELATED PARTY TRANSACTIONS                                                                                                                                                                                                                                                                                                                        
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                   
|   | During the period ended March 31, 2006, $3,000 was accrued
        to a director for management of the Companys affairs (2005 - $nil).
        As at March 31, 2006, $3,000 is owed to a director and is included in
        accounts payable and accrued liabilities (2005 - $nil).                                                             
|   |                                                                                                                                                                                                                                                                                                                                                   
|5. | CAPITAL STOCK                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                   
|   | On February 24, 2006, 3 previous directors returned
        1,447,727 (pre-forward stock split) common shares to the treasury for
        cancellation.                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                   
|   | Effective February 27, 2006, the Company forward split
        its issued common shares on the basis of forty-four new for one old share.
        The number of shares referred to in these financial statements has been
        restated wherever applicable, except where noted, to give retroactive
        effect on the forward stock split.

---

|SOLAR ENERTECH CORP.                  
|--------------------------------------
|(Formerly Safer Residence Corporation)
|(A Development Stage Company)         
|                                      
|NOTES TO INTERIM FINANCIAL STATEMENTS 
|MARCH 31, 2006                        
|(Unaudited)                           
|(Stated in U.S. Dollars)              

|5. | CAPITAL STOCK (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | The retroactive restatement of the issued common shares
        is required by the Securities and Exchange Commissions Staff Accounting
        Bulletin, Topic 4(c). The number of common shares outstanding pre-forward
        stock split was 1,652,273 and after giving effect to the forward split,
        the outstanding common shares totaled 72,700,012.                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | On March 1, 2006, the Company authorized the increase
        of its authorized capital stock from 75,000,000 common shares with a par
        value of $0.001 to 200,000,000 common shares with a par value of $0.001.                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|6. | MERGER                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | On March 27, 2006, the officers of the Company approved
        a plan of merger between Safer Residence Corporation and Solar Enertech
        Corp. The Company intends to focus on the implementation of its business
        plan concentrating on the development of a sales network and construction
        of a manufacturing facility for the production of Solar cells in order
        that the company can capitalize on certain opportunities present in the
        photovoltaic (PV) energy industry.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|7. | COMMITMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | During the period ended March 31, 2006, the Company
        entered into a contract for management services with a director and officer
        of the Company requiring the payment of $3,000 per month for a period
        of two years, expiring on February 28, 2008. This commitment can be terminated
        by either the Company or the director with 30 days notice.                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|8. | SUBSEQUENT EVENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | On May 1, 2006, the Company sold 500,000 units at $1.00
        per unit. Each unit consisted of one common share and one common share
        purchase warrant entitling the holder to acquire an additional common
        share at an exercise price of $1.60, expiring on April 30, 2007. The Company
        received cash proceeds of $500,000 in April 2006.                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | On May 4, 2006, the Company sold 500,000 units at $1.00
        per unit. Each unit consisted of one common share and one common share
        purchase warrant entitling the holder to acquire an additional common
        share at an exercise price of $1.60, expiring on May 3, 2007. The Company
        received cash proceeds of $500,000 in May 2006.                                                                                                                                                      

---

Item 2. MANAGEMENTS PLAN OF OPERATION

We have not generated any revenues from products, services or
operations since the inception of our company. The foregoing analysis should be
read jointly with the financial statements, related notes, and the cautionary
statement regarding forward-looking statements, which appear elsewhere in this
filing.

Plan of Operation for the Next Six Months

In March of 2006, the Company decided to abandon its previous
business relating to residential security and alarm systems and instead decided
to attempt to develop a business in the photovoltaic (PV) or solar industry.

In May of 2006, the Company raised $1,000,000 from the sale of
  1,000,000 units (the units being comprised of 1,000,000 common shares at $1.00
  per share and 1,000,000 share purchase warrants exercisable for a period of
  one year at an exercise price of $1.60 per share (none of which have yet been
  exercised)) under a Regulation S offering. These funds, the Company believes,
  will allow it to proceed in the development of its solar business for the next
  six to twelve months.

The Companys priorities in developing operations are as
follows:

| | (a) | invest approximately $600,000 of the $1,000,000 proceeds
        of our recent sale of shares of common stock build infrastructure at our
        recently leased factory in Shanghai, China, including hi-voltage power
        supply system, hi-volume water supply system, waster-water processing
        system, air-conditioning system, temperature/moist control system for
        solar cell production workshops, and office interior remodeling.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | (b) | Architecture design of a solar-powered showroom on the
        roof of our leased factory.                                                                                                                                                                                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | (c) | recruit additional personnel experienced in the solar or PV industry in
      the areas of research and development with the view to having research and
      development functions in twelve to eighteen months; and                                                                                                                                                                                                                                       
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | (d) | establish materials purchasing and sales distribution
        capabilities in California, where April Zheng and Leo Shi Young are presently
        resident and have begun to look at the feasibility of marketing and distributing
        PV products in the United States.                                                                                                                                                                               

Our future operations are dependent upon the identification and
successful completion of additional long-term or permanent equity financing, the
support of creditors and shareholders, and, ultimately, the achievement of
profitable operations. There can be no assurances that we will be successful,
which would in turn significantly affect our ability to roll out our business
plan. If not, we will likely be required to reduce operations or liquidate
assets. We will continue to evaluate our projected expenditures relative to our
available cash and to seek additional means of financing in order to satisfy our
working capital and other cash requirements.

The following discussion of the plan of operation, financial
condition, results of operations, cash flows and changes in financial position
of our Company should be read in conjunction with our most recent financial
statements and notes appearing elsewhere in this Form 10-QSB; and Reports on
Form 8-K filed during our most recent quarter and subsequent to the period end
of that quarter.

We continue to operate with very limited administrative
support, and our current officers and directors continue to be responsible for
many duties to preserve our working capital.

Expenditures

The following chart provides an overview of our budgeted expenditures
  by major area of activity, for the next 12 months from the date of this annual
  report:

3

---

| | (a)    | Personnel costs
      in Shanghai, China and the United States: | $   160,000    
| | ------ | --------------------------------------------------------------- | ---------------
| | (b)    | Production development / factory
      leasing costs:           | $   175,000    
| | (c)    | General and
      administrative expenses:                      | $   100,000    
| | (d)    | Partial PV production and manufacturing equipment:              | $     40,000   
| | (e)    | Infrastructure building at leased
      factory                 | $   300,000 (1)
| | (f)    | Professional fees and expenses,
      regulatory expenses:      | $     55,000   
| | (g)    | Shareholder
      communications:                               | $   120,000    
| | (h)    | Travel, Miscellaneous,
      Unallocated                        | $     50,000   
| |        |                                                                 |                
| | Total: | $1,000,000                                                     
| | (1)    | already expended
      as of May 15, 2006                       |                

The amounts noted above reflect our current cash resources. As
  at March 31, 2006, we had $34,367 in cash and cash equivalents in current assets
  and approximately $14,000 of our cash was utilized for our operations in the
  past six months.

Other than as detailed above, we do not anticipate making any
major purchases of capital assets in the next 12 months, or conducting any
research and development. Any development of research and development functions
would be dependent upon securing additional equity or other financing to add to
our working capital. Any purchases of additional capital equipment will depend
upon securing additional equity or other financing.

We believe we have sufficient cash resources to satisfy our
needs over the next 6 - 12 months. Our ability to satisfy cash requirements
thereafter and the need for additional funding is dependent on our ability to
generate revenue from our business in sufficient quantity and on a profitable
basis. Should we require additional cash in the future, there can be no
assurance that we will be successful in raising additional debt or equity
financing on terms acceptable to our company, if at all.

Management Discussion and Analysis

At March 31, 2006, we had working capital of $25,158, compared
  to working capital of $11,143 at March 31, 2005. At March 31, 2006, our total
  assets consisted of $34,367 in cash and cash equivalents and capital assets
  of $6,394. This compares with total assets at March 31, 2005 consisting solely
  of $12,588 in cash and cash equivalents.

At March 31, 2006, our total current liabilities, including all
  accounts payable, were $9,209 as compared to $1,445 at March 31, 2005.

We have not had revenues from inception. Our short and long
term survival is dependent on funding from sales of securities and, as
necessary, or from shareholder loans.

Results of Operations

Our company posted a net loss for the period of ($14,428) for
  the quarter ended March 31, 2006 compared to $1,776 for the quarter ended March
  31, 2005. From inception to March 31, 2006 we have incurred losses of $(71,448).
  The principal component of losses were organizational costs, professional fees,
  office and administration expenses, marketing expenses and amortization.

As of the date of this report, our net cash balance is approximately
  $1,000,000. Cash on hand is currently our only source of liquidity. We do not
  have any lending arrangements in place with banking or financial institutions
  and we do not anticipate that we will be able to secure these funding arrangements
  in the near future.

4

---

We believe our existing cash balances are sufficient to carry
our normal operations for the next 6 - 9 months. To the extent that we require
additional funds to support our operations or the expansion of our business, we
may attempt to sell additional equity shares or issue debt. Any sale of
additional equity securities will result in dilution to our stockholders. There
can be no assurance that additional financing, if required, will be available to
our company or on acceptable terms.

ITEM 3. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed in our Exchange Act
reports is recorded, processed, summarized and reported within the time periods
specified in the United States Securities and Exchange Commission rules and
forms, and that such information is accumulated and communicated to our
management; including our President and acting Chief Financial Officer, as
appropriate, to allow timely decisions regarding required disclosure.

We carried out an evaluation, under the supervision and with
the participation of our management, including our President and acting Chief
Financial Officer, of the effectiveness of the design and operation of our
disclosure controls and procedures pursuant to Exchange Act Rule 13a-14 as of
the end of period covered by this report. Based upon the foregoing, our
President and our acting Chief Financial Officer concluded that our disclosure
controls and procedures are effective.

There were no changes in our internal control over financial
reporting identified in connection with the evaluation referred to in the
immediately preceding paragraph that occurred during our last fiscal quarter
that has materially affected or is reasonably likely to materially affect, our
internal control over financial reporting.

PART II  OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

In May of 2006, we completed the sale of 1,000,000 shares of
  common stock at a price of $1.00 per share for proceeds of $1,000,000 which
  represent our present working capital. Accompanying these shares of common stock
  were 1,000,000 share purchase warrants exercisable for a period of one year
  at an exercise price of $1.60. To date, none of these share purchase warrants
  have been exercised.

The sale of 1,000,000 shares of common stock was undertaken pursuant
  to the exemptions from registration made available by Regulation S to non-US
  residents. No advertising or solicitation accompanied these sales.

5

---

The proceeds from our offering of 1,000,000 shares of common
stock are to be used to fund our operations as described in Expenditures
above.

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) Pursuant to Rule 601 of Regulation SB, the following
exhibits are included herein or incorporated by reference.

Exhibit Number
      Description3.1
      Articles of Incorporation*3.2
      By-laws*5
      Opinion re: Legality*31.1
      CERTIFICATION OF CEO
        PURSUANT TO 18 U.S.C. ss. 1350, SECTION 302**31.2
      CERTIFICATION OF CFO
        PURSUANT TO 18 U.S.C. ss. 1350, SECTION 302**32.1.
      CERTIFICATION PURSUANT
        TO 18 U.S.C. ss.1350, SECTION 906**32.2
      CERTIFICATION PURSUANT
        TO 18 U.S.C. ss.1350, SECTION 906**


* Incorporated by reference to our Form SB2 Registration
  Statement Amendment No. 7, File Number 33-120926, filed on May 5, 2005. 
  ** Filed herewith.

(b) The Registrant filed Reports on Form 8-K in the quarter ending
  March 31, 2006 and subsequently to the date hereof on the following dates: March
  10, 2006, May 12, 2006, May 12, 2006, May 15, 2006

6

---

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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, on this
15th day of May, 2006.

|                   | **SOLAR ENERTECH CORP.**
|------------------ | ------------------------
|                   |                         
|                   |                         
|Date: May 15, 2006 |                         
|                   | By:                     
|                   |                         
|                   |                         
|                   |                         
|                   |                         
|Date: May 15, 2006 |                         
|                   | By:                     
|                   |                         
|                   |                         

7

---