U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                     FORM 8-K

                                  CURRENT REPORT

   Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

                                 December 7, 2006
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                 Date of Report (Date of Earliest Event Reported)

                                    DAHUA INC.
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            (Name of small business issuer as specified in its charter)

          Delaware                  000-49852                 04-3616479
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(State or other jurisdiction     (Commission             (I.R.S. Employer
   of incorporation)               File Number)           Identification No.)

           19th Floor, Building C, Tianchuangshiyuan, Huizhongbeili,
                   Chaoyang District, Beijing, China, 100012
                  (Address of principal executive offices)
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           Registrant's telephone number, including area code: 86-10-6480-1527

                                         N/A
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         (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ]  Written communications pursuant to Rule 425 under the Securities Act
     (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
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[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c)).




Item 4.02.  Non-Reliance on Previously Issued Financial Statements or a Related
            Audit Report or Completed Interim Review


On December 6, 2006, the management and the Board of the Directors of Dahua
Inc. (the "Company") concluded that previously issued unaudited financial
statements contained in the Company's Quarterly Report on Form 10-QSB for the
quarter ended March 31, 2006 should not be relied upon because of an error in
the statements.

The Company expects the restated financial statements to correct the error
primarily relating to accounting for certain interest, which was previously
incorrectly capitalized subsequent to the substantial completion of
construction. The restatement is expected to result in (i) an increase in net
loss of $40,736 for the quarter ended March 31, 2006; (ii) a decrease in total
assets of $50,920; and (iii) a decrease in stockholders' equity of $40,736. The
restatement has no impact on the statement of cash flows. The Company will file
the amended Form 10-QSB for the quarter ended March 31, 2006 shortly.

The restatement to the financial statements disclosed above were, in part, was
caused by a material weakness in the Company's internal control over financing
reporting, i.e, there is a lack of specific US GAAP knowledge related to
construction accounting. The Company is committed to remedying the deficiency
and weakness and has planned to implement certain remedial measures, including
(i) the provision of additional training to our accounting personnel on the
requirements of US GAAP to increase their familiarity with those standards,
(ii) the expansion of our finance and accounting team by seeking to recruit
additional qualified personnel, and (iii) the reassessment of our existing
finance and accounting policies and procedures.

The Company's Board of Directors has reviewed and discussed the error, as well
as the required accounting treatment and disclosures, with Child, Van Wagoner &
Bradshaw, PLLC, the Company's independent registered public accounting firm.




                              SIGNATURES


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


Date:    December 7, 2006

By: /s/ Yonglin Du
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 Yonglin Du, President & CEO


By: /s/ Hua Meng
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Hua Meng, Chief Financial Officer