**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM 10-Q**

| **x** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                EXCHANGE ACT OF 1934** |
|-------|-------------------------------------------------------------------------------------------------------------------------------------|

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

**Commission      File Number:**

**000-52383**

**FUQI      INTERNATIONAL, INC.**

*(Exact      name of small business issuer as specified in its charter)*

| **Delaware***(State                or other jurisdiction of incorporation**or                organization)*                                                                                                                    |   | **20-1579407***(I.R.S.                Employer Identification**No.)* |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|
|                                                                                                                                                                                                                           |   |                                                                 |
| **5/F.,                Block 1, Shi Hua Industrial Zone,****Cui                Zhu Road North, Shenzhen, 518019,****People’s                Republic of China***(Address                of principal executive offices)* |   |  **N/A***(Zip                Code)*                             |

**86      (755) 2580-1888**

*(Registrant’s      telephone number, including area code)*

| Large                accelerated filer                o |   | Accelerated                filer                o |   | Non-accelerated                filer                x |
|---------------------------------------------------------|--------|---------------------------------------------------|--------|-------------------------------------------------------|

----

**FUQI      INTERNATIONAL, INC.**

**FORM      10-Q QUARTERLY REPORT**

**TABLE      OF CONTENTS**

| PART I                : FINANCIAL INFORMATION | Page                                                                                                                                    |
|----------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|
|                                               | ITEM                1 — FINANCIAL STATEMENTS                                                                                      | 1 |
|                                               |                                                                                                                                    | Condensed                Consolidated Balance                Sheets as of March 31, 2007 (unaudited) and December 31,                2006 | 2 |
|                                               |                                                                                                                                    | Condensed                Consolidated Statements of Income and Comprehensive Income for the                Three                Months Ended March 31, 2007 and 2006 (unaudited) | 3 |
|                                               |                                                                                                                                    | Condensed                Consolidated                Statement of Cash Flows for the Three Months Ended                 March 31, 2007 and 2006                (unaudited) | 4 |
|                                               |                                                                                                                                    | Notes                To Condensed Consolidated Financial Statements | 5 |
|                                               | ITEM                2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND                RESULTS OF OPERATION | 12 |
|                                               | ITEM                3 — QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET                RISK                                  | 17 |
|                                               | ITEM                4 — CONTROLS AND PROCEDURES                                                                                   | 17 |
|                                               |                                                                                                                                    |
| PART II                : OTHER INFORMATION    |                                                                                                                                    |
|                                               |                                                                                                                                    |   |
|                                               | ITEM                1 — LEGAL PROCEEDINGS                                                                                         | 18 |
|                                               | ITEM                1A - RISK FACTORS                                                                                                   | 18 |
|                                               | ITEM                2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS                                | 18 |
|                                               | ITEM                3 — DEFAULTS UPON SENIOR SECURITIES                                                                           | 18 |
|                                               | ITEM                4 — SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                       | 18 |
|                                               | ITEM                5 — OTHER INFORMATION                                                                                         | 18 |
|                                               | ITEM                6 — EXHIBITS                                                                                                  | 19 |
|                                               |                                                                                                                                    |   |
| SIGNATURES                                         | 20                                                                                                                                      |

----

**PART      I –      FINANCIAL INFORMATION**

**ITEM      1 –      FINANCIAL STATEMENTS**

----

| **Fuqi                International, Inc.**              |   |   |
|----------------------------------------------------------|--------|--------|
| **Condensed                Consolidated Balance Sheets** |   |   |

|                                                                                                                                                                        |   | **March                31,** |       |                            |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------|---------------------------------|--------|
|                                                                                                                                                                        |   | **2007**                     |       | **December                31,** |   |
|                                                                                                                                                                        |   | **(Unaudited)**              |       | **2006**                        |   |
|                                                                                                                                                                        |   |                         |       |                            |   |
| **Assets**                                                                                                                                                                  |   |                         |       |                            |   |
|                                                                                                                                                                        |   |                         |       |                            |   |
| **Current                assets:**                                                                                                                                          |   |                         |       |                            |   |
| Cash                                                                                                                                                                        |   | $                            | 10,703,126 |                            | $      | 13,354,981 |   |
| Restricted                cash                                                                                                                                              |   |                         | 387,888    |                            |   | - |   |
| Accounts                receivable, net of allowance for doubtful accounts of                $235,000 for 2007 and $195,000 for 2006                                        |   |                         | 9,364,145  |                            |   | 9,363,397 |   |
| Refundable                value added taxes                                                                                                                                 |   |                         | 1,116,763  |                            |   | - |   |
| Inventories                                                                                                                                                                 |   |                         | 14,538,927 |                            |   | 6,066,213 |   |
| Prepaid                expenses                                                                                                                                             |   |                         | 63,891     |                            |   | 89,362 |   |
| Deposits                                                                                                                                                                    |   |                         | 49,782     |                            |   | - |   |
| Deposits                related to borrowings on notes payable                                                                                                              |   |                         | -          |                            |   | 736,358 |   |
| Deferred                taxes                                                                                                                                               |   |                         | 41,679     |                            |   | 29,198 |   |
| Total                current assets                                                                                                                                         |   |                         | 36,266,201 |                            |   | 29,639,509 |   |
|                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| **Property,                equipment, and improvements,**net                                                                                                                |   |                         | 1,295,423  |                            |   | 1,354,313 |   |
|                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| **Deposits**                                                                                                                                                                |   |                         | 92,278     |                            |   | 91,398 |   |
|                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| **Other                assets**                                                                                                                                             |   |                         | 39,475     |                            |   | 40,122 |   |
|                                                                                                                                                                        |   |                         |       |                            |   |   |   |
|                                                                                                                                                                        |   | $                            | 37,693,377 |                            | $      | 31,125,342 |   |
|                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| **Liabilities                and Stockholders' Equity**                                                                                                                     |   |                         |       |                            |   |   |   |
|                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| **Current                liabilities:**                                                                                                                                     |   |                         |       |                            |   |   |   |
| Notes                payable                                                                                                                                                |   | $                            | 14,869,023 |                            | $      | 14,086,852 |   |
| Line                of credit                                                                                                                                               |   |                         | 1,292,959  |                            |   | - |   |
| Accounts                payable and accrued liabilities                                                                                                                     |   |                         | 312,135    |                            |   | 215,092 |   |
| Accrued                business tax                                                                                                                                         |   |                         | 1,220,934  |                            |   | 1,084,078 |   |
| Accrued                estimated penalties                                                                                                                                  |   |                         | 1,129,982  |                            |   | 1,119,201 |   |
| Accrued                value added taxes                                                                                                                                    |   |                         | -          |                            |   | 133,010 |   |
| Customer                deposits                                                                                                                                            |   |                         | 2,856,384  |                            |   | 1,234,424 |   |
| Inventory                loan payable                                                                                                                                       |   |                         | 705,135    |                            |   | - |   |
| Due                to shareholder                                                                                                                                           |   |                         | 130,405    |                            |   | 422,909 |   |
| Income                tax payable                                                                                                                                           |   |                         | 2,248,167  |                            |   | 1,884,837 |   |
| Total                current liabilities                                                                                                                                    |   |                         | 24,765,124 |                            |   | 20,180,403 |   |
|                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| **Stockholders'                equity:**                                                                                                                                    |   |                         |       |                            |   |   |   |
| Preferred                stock, $0.001 par value, 5,000,000 shares authorized,                none issued and outstanding                                                   |   |                         | -          |                            |   | - |   |
| Common                stock, $0.001 par value, 75,000,000 shares authorized, shares issued                and                outstanding - 20,715,384                shares |   |                         | 20,715     |                            |   | 20,715 |   |
|                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| Additional                paid in capital                                                                                                                                   |   |                         | 7,193,673  |                            |   | 7,203,673 |   |
| Accumulated                foreign currency translation adjustments                                                                                                         |   |                         | 542,235    |                            |   | 432,125 |   |
| Retained                earnings                                                                                                                                            |   |                         | 5,171,630  |                            |   | 3,288,426 |   |
|                                                                                                                                                                        |   |                         |       |                            |   |   |   |
| Total                stockholders' equity                                                                                                                                   |   |                         | 12,928,253 |                            |   | 10,944,939 |   |
|                                                                                                                                                                        |   | $                            | 37,693,377 |                            | $      | 31,125,342 |   |

**The      accompanying notes are an integral part of these condensed consolidated      financial statements.**

----

| **Fuqi****International,                Inc.**                                                                     |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| **Condensed                Consolidated Statements of Income and Comprehensive Income                (Unaudited)** |

|                                                                                                                        |   | **Three                Months Ended****March                31,** |       |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|------------|
|                                                                                                                        |   | **2007**                                                          |       | **2006** |   |
|                                                                                                                        |   |                                                              |       |   |   |
| **Net                sales**                                                                                                |   | $                                                                 | 27,960,269 |   | $ | 24,303,605 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Cost                of sales**                                                                                            |   |                                                              | 24,796,149 |   |   | 21,086,613 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Gross                profit**                                                                                             |   |                                                              | 3,164,120  |   |   | 3,216,992 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Operating                expenses:**                                                                                      |   |                                                              |       |   |   |   |   |
| Selling                and marketing                                                                                        |   |                                                              | 193,757    |   |   | 106,260 |   |
| General                and administrative                                                                                   |   |                                                              | 421,512    |   |   | 268,473 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| Total                operating expenses                                                                                     |   |                                                              | 615,269    |   |   | 374,733 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Income                from operations**                                                                                   |   |                                                              | 2,548,851  |   |   | 2,842,259 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Other                income (expenses):**                                                                                 |   |                                                              |       |   |   |   |   |
| Interest                expense                                                                                             |   |                                                              | (247,167   | ) |   | (210,415 | ) |
| Change                of fair value on inventory loan payable                                                               |   |                                                              | (41,161    | ) |   | - |   |
| Miscellaneous                                                                                                               |   |                                                              | -          |   |   | 12,438 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| Total                other expenses                                                                                         |   |                                                              | (288,328   | ) |   | (197,977 | ) |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Income                before provision for income taxes**                                                                 |   |                                                              | 2,260,523  |   |   | 2,644,282 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Provision                for income taxes**                                                                               |   |                                                              | 377,319    |   |   | 369,841 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Net                income**                                                                                               |   |                                                              | 1,883,204  |   |   | 2,274,441 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Other              comprehensive income** –              foreign              currency translation adjustments |   |                                                              | 110,060    |   |   | 56,816 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Comprehensive                income**                                                                                     |   | $                                                                 | 1,993,264  |   | $ | 2,331,257 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Earnings                per share - basic**                                                                               |   | $                                                                 | 0.09       |   | $ | 0.12 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| **Earnings                per share - diluted**                                                                             |   | $                                                                 | 0.07       |   | $ | 0.12 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| ****Weighted                average number of common shares -                 b**asic**                                |   |                                                              | 20,715,384 |   |   | 18,886,666 |   |
|                                                                                                                        |   |                                                              |       |   |   |   |   |
| ****Weighted                average number of common shares -                d**iluted**                                    |   |                                                              | 26,582,024 |   |   | 18,886,666 |   |

**The      accompanying notes are an integral part of these condensed consolidated      financial statements.**

----

| **Fuqi                International, Inc.**                                    |   |   |   |   |
|--------------------------------------------------------------------------------|--------|--------|--------|--------|
| **Condensed                Consolidated Statements of Cash Flows (Unaudited)** |   |   |   |   |
| **Increase                (Decrease) in Cash**                                 |

|                                                                                                                 |   | **Three                Months Ended****March                31,** |       |
|----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|------------|
|                                                                                                                 |   | **2007**                                                          |       | **2006** |   |
|                                                                                                                 |   |                                                              |       |   |   |
| **Cash                flows provided by operating activities:**                                                      |   |                                                              |       |   |   |   |   |
| Net                income                                                                                            |   | $                                                                 | 1,883,204  |   | $ | 2,274,441 |   |
|                                                                                                                 |   |                                                              |       |   |   |   |   |
| **Adjustments                to reconcile net income to net cash **used                for operating activities:**** |   |                                                              |       |   |   |   |   |
| Depreciation                and amortization                                                                         |   |                                                              | 79,417     |   |   | 80,398 |   |
| Change                of fair value on inventory loan payable                                                        |   |                                                              | 41,161     |   |   | - |   |
| Bad                debt                                                                                              |   |                                                              | 39,995     |   |   | 100,746 |   |
|                                                                                                                 |   |                                                              |       |   |   |   |   |
| **Changes                in operating assets and liabilities:**                                                      |   |                                                              |       |   |   |   |   |
| Accounts                receivable                                                                                   |   |                                                              | 49,256     |   |   | (1,534,505 | ) |
| Refundable                value added taxes                                                                          |   |                                                              | (1,248,343 | ) |   | (70,826 | ) |
| Inventories                                                                                                          |   |                                                              | (8,396,043 | ) |   | (1,915,699 | ) |
| Prepaid                expenses                                                                                      |   |                                                              | 26,275     |   |   | (47,950 | ) |
| Deposits                - short term                                                                                 |   |                                                              | 49,782     |   |   | - |   |
| Deposits                related to borrowings on notes payable                                                       |   |                                                              | 642,276    |   |   | (93,284 | ) |
| Deferred                taxes                                                                                        |   |                                                              | (12,173    | ) |   | (37,935 | ) |
| Other                current assets                                                                                  |   |                                                              | -          |   |   | 2,153 |   |
| Deposits                                                                                                             |   |                                                              | -          |   |   | (7,923 | ) |
| Other                assets                                                                                          |   |                                                              | 1,031      |   |   | 2,817 |   |
| Accounts                payable, accrued expenses, accrued business tax and accrued                penalties         |   |                                                              | 221,495    |   |   | 119,339 |   |
| Inventory                loan payable                                                                                |   |                                                              | 662,446    |   |   | - |   |
| Customer                deposits                                                                                     |   |                                                              | 1,606,579  |   |   | 614,210 |   |
| Income                tax payable                                                                                    |   |                                                              | 344,426    |   |   | 384,187 |   |
| Net                cash used for operating activities                                                                |   |                                                              | (4,009,216 | ) |   | (129,831 | ) |
|                                                                                                                 |   |                                                              |       |   |   |   |   |
| **Cash                flows provided by (used for) investing                activities:**                            |   |                                                              |       |   |   |   |   |
| Purchase                of property, equipment and improvements                                                      |   |                                                              | (7,638     | ) |   | (429 | ) |
| Disbursements                on loans to stockholder                                                                 |   |                                                              | -          |   |   | (20,780,410 | ) |
| Proceeds                from collections on loans to stockholder                                                     |   |                                                              | -          |   |   | 21,923,187 |   |
| Decrease                (Increase) in restricted cash                                                                |   |                                                              | (387,047   | ) |   | 1,741,294 |   |
| Net                cash provided by (used for) investing activities                                                  |   |                                                              | (394,685   | ) |   | 2,883,642 |   |
|                                                                                                                 |   |                                                              |       |   |   |   |   |
| **Cash                flows provided by (used for) financing                activities:**                            |   |                                                              |       |   |   |   |   |
| Proceeds                from short-term borrowing                                                                    |   |                                                              | 1,935,234  |   |   | - |   |
| Loan                from (repayment to) a related party                                                              |   |                                                              | -          |   |   | (995,025 | ) |
| Proceeds                from loans borrowed from stockholder                                                         |   |                                                              | 202,272    |   |   | - |   |
| Repayments                to loans payable to stockholder                                                            |   |                                                              | (508,249   | ) |   | - |   |
| Net                cash provided by (used for) financing activities                                                  |   |                                                              | 1,629,257  |   |   | (995,025 | ) |
|                                                                                                                 |   |                                                              |       |   |   |   |   |
| **Effect                of exchange rate changes on cash**                                                           |   |                                                              | 122,789    |   |   | 5,518 |   |
|                                                                                                                 |   |                                                              |       |   |   |   |   |
| **Net                increase (decrease) in cash**                                                                   |   |                                                              | (2,651,855 | ) |   | 1,764,304 |   |
|                                                                                                                 |   |                                                              |       |   |   |   |   |
| **Cash,**beginning                of the period                                                                      |   |                                                              | 13,354,981 |   |   | 71,479 |   |
|                                                                                                                 |   |                                                              |       |   |   |   |   |
| **Cash,**end                of the period                                                                            |   | $                                                                 | 10,703,126 |   | $ | 1,835,783 |   |
|                                                                                                                 |   |                                                              |       |   |   |   |   |
| **Supplemental                disclosure of cash flow information:**                                                 |   |                                                              |       |   |   |   |   |
|                                                                                                                 |   |                                                              |       |   |   |   |   |
| Interest                paid                                                                                         |   | $                                                                 | 231,172    |   | $ | 183,869 |   |
| Income                taxes paid                                                                                     |   | $                                                                 | 45,067     |   | $ | 23,590 |   |

**The      accompanying notes are an integral part of these condensed consolidated      financial statements.**

----

**Fuqi      International, Inc.**

**Notes      to Condensed Consolidated Financial Statements**

| **(1)** | **Summary                of Significant Accounting                Policies:** |
|---------|-------------------------------------------------------------------------------|

**Basis      of Presentation and Nature of Business Operations **

**Basis      of Presentation **

**Nature      of Business**

**Revenue      Recognition**

**Currency      Reporting**

----

**Basic      and Diluted Earnings Per Share**

|                                                    |   | 2007   |       | 2006   |   |
|---------------------------------------------------------|--------|--------|------------|--------|--------|
|                                                    |   |   |       |   |   |
| Basic                weighted average shares            |   |   | 20,715,384 |   |   | 18,886,666 |   |
| Effect                of dilutive securities - warrants |   |   | 5,866,640  |   |   | - |   |
|                                                    |   |   |       |   |   |   |   |
| Dilutive                potential common shares         |   |   | 26,582,024 |   |   | 18,886,666 |   |

**Inventory      Loan Payable**

**New      Accounting Pronouncements**

----

| **(2)** | **Inventories:** |
|---------|------------------|

|                           |   | March                31, 2007 |       | December                31, 2006 |   |
|--------------------------------|--------|-------------------------------|------------|----------------------------------|--------|
|                           |   |                          |       |                             |   |
| Raw                materials   |   | $                             | 12,107,398 |                             | $      | 743 |   |
| Work                in process |   |                          | 1,271,360  |                             |   | 3,917,795 |   |
| Finished                goods  |   |                          | 1,160,169  |                             |   | 2,147,675 |   |
|                           |   |                          |       |                             |   |   |   |
|                           |   | $                             | 14,538,927 |                             | $      | 6,066,213 |   |

| **(3)** | **Property,                Equipment, and                Improvements:** |
|---------|--------------------------------------------------------------------------|

|                                                          |   | March                31, 2007 |      | December                31, 2006 |   |
|---------------------------------------------------------------|--------|-------------------------------|-----------|----------------------------------|--------|
|                                                          |   |                          |      |                             |   |
| Production                equipment                           |   | $                             | 963,772   |                             | $      | 950,479 |   |
| Computers                                                     |   |                          | 15,534    |                             |   | 14,976 |   |
| Office                equipment and furniture                 |   |                          | 105,368   |                             |   | 101,289 |   |
| Automobiles                                                   |   |                          | 257,296   |                             |   | 254,841 |   |
| Leasehold                improvements                         |   |                          | 386,652   |                             |   | 382,963 |   |
| Building                                                      |   |                          | 550,509   |                             |   | 545,257 |   |
|                                                          |   |                          |      |                             |   |   |   |
|                                                          |   |                          | 2,279,131 |                             |   | 2,249,805 |   |
| Less                accumulated depreciation and amortization |   |                          | 983,708   |                             |   | 895,492 |   |
|                                                          |   |                          |      |                             |   |   |   |
|                                                          |   | $                             | 1,295,423 |                             | $      | 1,354,313 |   |

| **(4)** | **Line                of Credit:** |
|---------|------------------------------------|

| **(5)** | **Notes                Payable:** |
|---------|-----------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                      |   | March                31, 2007 |    | December                31, 2006 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|----------------------------------|--------|
| A                note payable to a bank, including interest at a rate of 5.76%, secured                by                the Company’s inventories and certain real estate properties owned by an                affiliated company, matured in January 2007. The loan was repaid                upon                expiry and was not renewed.                                    |   |                          | -       |                             | $      | 1,280,623 |   |
|                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |    |                             |   |   |   |
| Two                notes payable to a bank, including interest at a rate of 5.85%, guaranteed                by affiliated companies and personally guaranteed by the stockholder,                matured in February 2007                                                                                                                                                                |   |                          | -       |                             |   | 2,561,246 |   |
|                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |    |                             |   |   |   |
| Four                notes payable to a bank, including interest at a rate of 5.832%,                secured                by the Company’s inventories and certain real estate properties owned by                an affiliated company and guaranteed by affiliated companies and                personally guaranteed by the stockholder, matured in January                2007 |   |                          | -       |                             |   | 3,841,869 |   |
|                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |    |                             |   |   |   |
| A                note payable to a bank, including interest at a rate of 6.138%, guaranteed                by affiliated companies and secured by certain real estate properties                owned by an affiliated company, matured in March 2007                                                                                                                                     |   |                          | -       |                             |   | 1,280,623 |   |
|                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |    |                             |   |   |   |
| A                note payable to a bank, including interest at a rate of 6.732%, guaranteed                by affiliated companies and secured by the Company’s inventories and                certain real estate properties owned by an affiliated company and                personally guaranteed by the stockholder, matures in July                2007                       |   |                          | -       |                             |   | 960,467 |   |
|                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |    |                             |   |   |   |
| A                note payable to a bank, including interest at a rate of 6.732%, secured                by                the Company’s inventories and certain real estate properties owned by                affiliated companies, guaranteed by affiliated companies and personally                guaranteed by the stockholder, matures in September 2007                      |   |                          | -       |                             |   | 960,467 |   |
|                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |    |                             |   |   |   |
| A                note payable to a bank, including interest at a rate of 6.426%, secured                by                the Company’s inventories and certain real estate properties owned by                affiliated companies, guaranteed by affiliated companies and personally                guaranteed by the stockholder, matures in September 2007                      |   |                          | -       |                             |   | 1,024,498 |   |
|                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |    |                             |   |   |   |
| A                note payable to a bank, including interest at a rate of 6.426%, secured                by                the Company’s inventories and certain real estate properties owned by                affiliated companies, guaranteed by affiliated companies and personally                guaranteed by the stockholder, matures in October 2007                        |   |                          | -       |                             |   | 896,436 |   |
|                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |    |                             |   |   |   |
| A                note payable to a bank, including interest at a rate of 6.732%, secured                by                the Company’s inventories, guaranteed by affiliated companies and                personally guaranteed by the stockholder, matures in December                2007                                                                                        |   |                          | -       |                             |   | 1,280,623 |   |
|                                                                                                                                                                                                                                                                                                                                                                                      |   |                          |    |                             |   |   |   |
| A                note payable to a bank, including interest at a rate of 6.732%, secured                by                the Company’s inventories and certain real estate properties owned by                affiliated companies, guaranteed by affiliated companies and personally                guaranteed by the stockholder, matures in July 2007                           |   |                          | 969,719 |                             |   | - |   |

----

| A                note payable to a bank, including interest at a rate of 6.732%, secured                by                the Company’s inventories and certain real estate properties owned by                affiliated companies, guaranteed by affiliated companies and personally                guaranteed by the stockholder, matures in September 2007 |   |   | 969,719    |   |   | -          |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |       |   |
| A                note payable to a bank, including interest at a rate of 6.426%, secured                by                the Company’s inventories and certain real estate properties owned by                affiliated companies, guaranteed by affiliated companies and personally                guaranteed by the stockholder, matures in September 2007 |   |   | 1,034,367  |   |   | -          |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |       |   |
| A                note payable to a bank, including interest at a rate of 6.426%, secured                by                the Company’s inventories and certain real estate properties owned by                affiliated companies, guaranteed by affiliated companies and personally                guaranteed by the stockholder, matures in October 2007   |   |   | 905,071    |   |   | -          |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |       |   |
| A                note payable to a bank, including interest at a rate of 6.732%, secured                by                the Company’s inventories, guaranteed by affiliated companies and                personally guaranteed by the stockholder, matures in December                2007                                                                   |   |   | 1,292,959  |   |   | -          |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |       |   |
| A                note payable to a bank, including interest at a rate of 6.732%, secured                by                the Company’s inventories and certain real estate properties owned by                affiliated companies, guaranteed by affiliated companies and personally                guaranteed by the stockholder, matures in January 2008   |   |   | 1,745,494  |   |   | -          |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |       |   |
| A                note payable to a bank, including interest at a rate of 6.4728%,                secured                by the Company’s inventories and certain real estate properties owned by                affiliated companies, guaranteed by affiliated companies and personally                guaranteed by the stockholder, matures in July 2007     |   |   | 840,423    |   |   | -          |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |       |   |
| A                note payable to a bank, including interest at a rate of 6.4728%,                secured                by the Company’s inventories, guaranteed by affiliated companies and                personally guaranteed by the stockholder, matures in July                2007                                                                      |   |   | 1,292,959  |   |   | -          |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |       |   |
| A                note payable to a bank, including interest at a rate of 6.4728%,                secured                by the Company’s inventories, guaranteed by affiliated companies and                personally guaranteed by the stockholder, matures in July                2007                                                                      |   |   | 1,292,959  |   |   | -          |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |       |   |
| A                note payable to a bank, including interest at a rate of 6.732%, secured                by                the Company’s inventories, guaranteed by affiliated companies and                personally guaranteed by the stockholder, matures in October                2007                                                                    |   |   | 1,292,959  |   |   | -          |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |       |   |
| A                note payable to a bank, including interest at a rate of 6.732%, guaranteed                by affiliated companies, matures in January 2008                                                                                                                                                                                                          |   |   | 1,939,438  |   |   | -          |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   |   |       |   |   |       |   |
| A                note payable to a bank, including interest at a rate of 6.732%, secured                by                the Company’s inventories, guaranteed by affiliated companies and                personally guaranteed by the stockholder, matures in November                2007                                                                   |   |   | 1,292,956  |   |   | -          |   |
|                                                                                                                                                                                                                                                                                                                                                                 |   | $      | 14,869,023 |   | $      | 14,086,852 |   |

----

| **(6)** | **Related-Party                Transactions:** |
|---------|------------------------------------------------|

| **(7)** | **Income                Taxes:** |
|---------|----------------------------------|

*Accounting      for Uncertainty in Income Taxes*

----

----

**ITEM      2 –      MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATION**

**Overview**

----

**Corporate      History **

*VCC*
*Visitalk      Plan*
*isitalk.com*
*Effective      Date*
*Bay      Peak Sale*
*Reverse      Split*

*Fuqi      BVI*
*Exchange      Transaction*
*Share      Exchange Agreement*

**Critical      Accounting Policies, Estimates and Assumptions**

***Revenue      Recognition***

***Currency      Reporting***

----

***Allowance      for Doubtful Accounts***

***Inventory***

**Results      of Operations **

**Three      Months Ended March 31, 2007 As Compared To The Three Months Ended March 31,      2006**

|                                                                                                            |   | **Three                  Months Ended March 31,**                                                             |       |
|------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                       |   | **2007**                                                                                                      |       | **2006** |   |
|                                                                                                       |   | (unaudited)                                                                                                   |       | (unaudited) |   |
|                                                                                                       |   | ***(in                  thousands, except earnings per******share******and                  share amounts)*** |       |
| **Net                  sales**                                                                             |   | $                                                                                                             | 27,960     |   | $ | 24,304 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Cost                  of sales**                                                                         |   |                                                                                                          | 24,796     |   |   | 21,087 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Gross                  profit**                                                                          |   |                                                                                                          | 3,164      |   |   | 3,217 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Operating                  expenses:**                                                                   |   |                                                                                                          |       |   |   |   |   |
| Selling                  and marketing                                                                     |   |                                                                                                          | 194        |   |   | 106 |   |
| General                  and administrative                                                                |   |                                                                                                          | 421        |   |   | 269 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| Total                  operating expenses                                                                  |   |                                                                                                          | 615        |   |   | 375 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Income                  from operations**                                                                |   |                                                                                                          | 2,549      |   |   | 2,842 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Other                  income (expenses):**                                                              |   |                                                                                                          |       |   |   |   |   |
| Interest                  expense                                                                          |   |                                                                                                          | (247       | ) |   | (210 | ) |
| Change                  of fair value of inventory loan payable                                            |   |                                                                                                          | (41        | ) |   | - |   |
| Miscellaneous                                                                                              |   |                                                                                                          | -          |   |   | 12 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| Total                  other expenses                                                                      |   |                                                                                                          | (288       | ) |   | (198 | ) |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Income                  before provision for income taxes**                                              |   |                                                                                                          | 2,261      |   |   | 2,644 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Provision                  for income taxes**                                                            |   |                                                                                                          | 377        |   |   | 370 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Net                  income**                                                                            |   |                                                                                                          | 1,884      |   |   | 2,274 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Other                  comprehensive income -**foreign                  currency translation adjustments |   |                                                                                                          | 110        |   |   | 57 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Comprehensive                  income**                                                                  |   | $                                                                                                             | 1,994      |   | $ | 2,331 |   |
| **Earnings                  per share - basic**                                                            |   | $                                                                                                             | 0.09       |   | $ | 0.12 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Earnings                  per share - diluted**                                                          |   | $                                                                                                             | 0.07       |   | $ | 0.12 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Weighted                  average number of common shares - basic**                                      |   |                                                                                                          | 20,715,384 |   |   | 18,886,666 |   |
|                                                                                                       |   |                                                                                                          |       |   |   |   |   |
| **Weighted                  average number of common shares - diluted**                                    |   |                                                                                                          | 26,582,024 |   |   | 18,886,666 |   |

----

|                                          | **Three                Months Ended March 31,** |
|-----------------------------------------------|-------------------------------------------------|
|                                          | **2007**                                        |   | **2006** |
|                                          | **Amount                in $**                  |   | **%** |   | **Amount                in $** |   | **%** |
| **Platinum**                                  | 5.56                                            |   | 19.86 |   | 5.44 |   | 22.39 |
| **Gold**                                      | 14.70                                           |   | 52.50 |   | 11.59 |   | 47.70 |
| **K-gold                and Studded Jewelry** | 7.74                                            |   | 27.64 |   | 7.27 |   | 29.91 |
| **Total**                                     | 28.00                                           |   | 100.00 |   | 24.30 |   | 100.00 |

----

**Liquidity      and Capital Resources**

----

**New      Accounting Pronouncements**

**ITEM      3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK**

*Foreign      Currency Risk. *

*Credit      Risk*

*Country      Risk. *

*Inflation.*

**ITEM      4 — CONTROLS AND PROCEDURES**

**(a)      Evaluation of disclosure controls and procedures**

----

**(b)      Changes in internal control over financial reporting**

**PART II      — OTHER INFORMATION**

**ITEM      1 — LEGAL PROCEEDINGS**

**ITEM      2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS**

**ITEM      3 — DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM      4 — SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

**ITEM      5 — OTHER INFORMATION**

----

**ITEM      6 — EXHIBITS**

| 31.1   | Certification                of Chief Executive Officer pursuant to Section 302(a) of the                Sarbanes-Oxley Act of 2002  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                 |
| 31.2   | Certification                of Chief Financial Officer pursuant to Section 302(a) of the                Sarbanes-Oxley Act of 2002. |
|   |                                                                                                                                 |
| 32.1   | Certification                of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley                Act of 2002.*   |

----

----

**SIGNATURES**

|                              | **FUQI                INTERNATIONAL, INC.** |
|-----------------------------------|---------------------------------------------|
|                              |                                        |   |
|                              |                                        |   |
| Date:                May 21, 2007 | By:                                         | /s/                Yu Kwai Chong |
|                              |                                        | Yu                Kwai Chong |
|                              |                                        | Chief                Executive Officer |
|                              |                                        |   |
| Date:                May 21, 2007 | By:                                         | /s/                Ching Wan Wong |
|                              |                                        | Ching                Wan Wong |
|                              |                                        | Chief                Financial Officer |

----