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

For the quarterly period ended ~~April~~October 3031, 2010

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

For the transition period from ______to______.

CHINA TIMBER WORK ENTERPRISE, INC.

(Exact name of registrant as specified in Charter)

DELAWARE		000-53419		75-3269180
(State or other jurisdiction of incorporation or organization)		(Commission File No.)		(IRS Employee Identification No.)

Room 405, 4/F., Wing Ming Industrial Centre

15 Cheung Yue Street, Cheung Sha Wan, Kowloon, Hong Kong

(Address of Principal Executive Offices)

_______________

(852) 61218865

(Issuer Telephone number)

_______________

(Former Name or Former Address if Changed Since Last Report)

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company filer. See definition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Exchange Act (Check one):

Large Accelerated Filer o Accelerated Filer o Non-Accelerated Filer o Smaller Reporting Company x

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act.

Yes x No o

State the number of shares outstanding of each of the issuer’s classes of common equity, as of December ~~March 11~~20, 2010: 100,000 shares of Common Stock.

CHINA TIMBER WORK ENTERPRISE, INC.

FORM 10-Q

~~April~~October 3031, 2010

INDEX

PART I-- FINANCIAL INFORMATION

Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition	13
Item 3	Quantitative and Qualitative Disclosures About Market Risk	14
Item 4T.	Control and Procedures	14

PART II-- OTHER INFORMATION

Item 1	Legal Proceedings	15
Item 1A	Risk Factors	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3.	Defaults Upon Senior Securities	15
Item 4.	(Removed and Reserved)	15
Item 5.	Other Information	15
Item 6.	Exhibits ~~and Reports on Form 8-K~~	15
SIGNATURE		16

2SIGNATURE

China Timber Work Enterprise, Inc.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

In the opinion of management, the financial statements contain all material adjustments, consisting only of normal recurring adjustments necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.

The results for the period ended ~~April~~October 3031, 2010 are not necessarily indicative of the results of operations for the full year. These financial statements and related footnotes should be read in conjunction with the financial statements and footnotes thereto included in the Company’s Form 10 filed with the Securities and Exchange Commission for the period ended ~~April~~October 3031, 2010.

China Timber Work Enterprise, Inc.

(A Development Stage Company)

Balance Sheets

	April 30,			July 31,
	October 31, 2010			July 31, 2010
	2010			2009
	(Unaudited)			(Audited)
Liabilities and Stockholder’s Equity (Deficit)
Current Liabilities
Accounts payable	$	(4,~~071~~571	)	$	(24,~~368~~071	)
Loan payable – related party		(23,785	)		(2123,~~528~~785	)
		(27,856	)		(23,896	)
		(28,356	)		(27,856	)
Stockholder’s Deficit:
Preferred stock ( $0.00001 par value, 100,000,000 shares authorized, none issued and outstanding)		-			-
Common stock ( $0.00001 par value, 500,000,000 shares authorized, 100,000 shares issued and outstanding)		1			1
Deficit accumulated during development stage		(2728,~~857~~357	)		(2327,~~897~~857	)
Total Stockholder’s Deficit		(2728,~~856~~356	)		(2327,~~896~~856	)
Total Liabilities and Stockholder’s Deficit	$	-		$	-

See accompanying notes to financial statements

China Timber Work Enterprise, Inc.

(A Development Stage Company)

Statements of Operations

	Three Months Ended April 30, 2010			Three Months Ended April 30, 2009			Nine Months Ended April 30, 2010			Nine Months Ended April 30, 2009			Cumulative from July 28 (Inception) to April 30, 2010
	Three Months Ended October 31, 2010			Three Months Ended October 31, 2009			Cumulative from July 31, 2010 to October 31, 2010
	(Unaudited)			(Unaudited)			(Unaudited)			~~(Unaudited)~~			~~(Unaudited)~~
Operating expenses
General and administrative	$	~~1,169~~500		$	~~993~~514		$	~~3,960~~500		$	~~7,463~~		$	~~27,857~~
Total operating expenses		(~~1,169~~500	)		(~~993~~514	)		(~~3,960~~500	)		~~(7,463~~	)		~~(27,857~~	)
Net loss		(~~1,169~~500	)		(~~993~~514	)		(~~3,960~~500	)		~~(7,463~~	)		~~(27,857~~	)
Net loss per share – basic and diluted		(0.01	)		(0.01	)		(0.0401	)		~~(0.07~~	)		~~(0.28~~	)
Weighted average number of shares outstanding
during the period – basic and diluted		100,000			100,000			100,000			~~100,000~~			~~100,000~~

See accompanying notes to financial statements

China Timber Work Enterprise, Inc.

(A Development Stage Company)

Statement of Changes in Stockholder's Deficit

For the Period ended October 31, 2010


					Deficit
	Common Stock				Accumulated during		Total
	Shares		Amount		Development Stage		Stockholder's Deficit

Balance July 31, 2009		100,000	$	1	$	(23,897)	$	(23,896	)

Net loss for the year		-		-		(3,960)		(3,960	)

Balance July 31, 2010		100,000	$	1	$	(27,857)	$	(27,856	)

Net loss from 1 August 2010 to 31 October 2010,		-		-		(500)		(500	)

Balance October 31, 2010		100,000	$	1	$	(28,357)	$	(28,356	)

See accompanying notes to financial statements

China Timber Work Enterprise, Inc.

(A Development Stage Company)

Statement of Cash Flows

	Three Months Ended, April 30, 2010			Three Months Ended, April 30, 2009			Nine Months Ended, April 30, 2010			Nine Months Ended, April 30, 2009			Cumulative from July 28, 2008 (Inception) to April 30, 2010
	Three Months Ended October 31, 2010			Three Months Ended October 31, 2009			Cumulative from July 31, 2010 to October 31, 2010
	(Unaudited)			(Unaudited)			(Unaudited)			~~(Unaudited)~~			~~(Unaudited)~~
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(~~1,169~~500	)	$	(~~993~~514	)	$	(~~3,960~~500	)	$	~~(7,463~~	)	$	~~(27,857~~	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock issued for compensation - founder		-			-			-						1
Changes in operating assets and liabilities:
Increase/(decrease) in accounts payable		704			-			1,704			367			4,071
(Decrease)/increase in accounts payable		500			-			500
Net Cash Used In Operating Activities		~~(465~~-	)		(~~993~~514	)		~~(2,257~~-	)		~~(7,096~~	)		~~(23,785~~	)
CASH FLOWS FROM
CASH FLOWS FROM FINANCING ACTIVITIES:
FINANCING ACTIVITIES:
Loan payable - related party		-			514			-
Loan payable - related party		465			993			2,257			7,096			23,785
Net Cash Provided By Financing Activities		-			514			-
Net Cash Provided By Financing Activities		465			993			2,257			7,096			23,785
Net Increase in Cash		-			-			-
Net Increase in Cash		-			-			-			-			-
Cash - Beginning of Period		-			-			-
Cash - Beginning of Period		-			-			-			-			-
Cash - End of Period	$	-		$	-		$	-
Cash - End of Period	$	-		$	-		$	-		$	-		$	-

See accompanying notes to financial statements

China Timber Work Enterprise, Inc.

(A Development Stage Company)

Notes to Financial Statements

~~April~~October 3031, 2010

NOTE 1 – Nature of Operations and Summary of Significant Accounting Policies

Nature of operations

China Timber Work Enterprise, Inc. (the “Company”) is a Delaware corporation that was incorporated on July 28, 2008. ~~The Company intends to effect a business combination with a Chinese based operating company.~~

The Company intends to effect a business combination with a Chinese based operating company.

Development stage

The Company's financial statements are presented as those of a development stage enterprise. Activities during the development stage primarily include related party debt financing and implementing the business plan.

Use of estimates

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

A significant estimate during the period included a 100% valuation allowance for deferred taxes due to the Company’s continuing and expected future losses.

Cash and cash equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less and money market accounts to be cash equivalents.

The Company minimizes its credit risk associated with cash by periodically evaluating the credit quality of its primary financial institution. The balance at times may exceed federally insured limits. At ~~April~~October 3031, 2010, there were no balances that exceeded the federally insured limit.

Earnings per share

Basic loss per share is computed by dividing net loss by weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. At ~~April~~October 3031, 2010, the Company had no common stock equivalents that could potentially dilute future earnings per share; however, if present, a separate computation of diluted loss per share would not have been presented, as these common stock equivalents would have been be anti-dilutive due to the Company’s net loss.

Fair value of financial instruments

Statement of Financial Accounting Standards No. 107, “Disclosures about Fair Value of Financial Instruments,” requires disclosures of information about the fair value of certain financial instruments for which it is practicable to estimate the value. For purpose of this disclosure, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation.

The carrying amount reported in the balance sheet for accounts payable and loan payable – related party approximates fair market value based on the short-term maturity of these instruments.

China Timber Work Enterprise, Inc.

(A Development Stage Company)

Notes to Financial Statements

~~April~~October 3031, 2010

Segment information

The Company follows Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information." During the period from date of incorporation until ~~April~~October 3031, 2010, the Company only operated in one segment; therefore, segment information has not been presented.

Stock-based compensation

All share-based payments to employees is recorded and expensed in the statement of operations as applicable under SFAS No. 123R, “Share-Based Payment”. The Company has not issued any stock based compensation to its employees since inception.

Non-employee stock based compensation

Stock-based compensation awards issued to non-employees for services are recorded at either the fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable, using the measurement date guidelines enumerated in Emerging Issues Task Force Issue EITF No. 96-18, “Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services” (“EITF 96-18”). The Company has not issued any non-employee stock based compensation to any third parties since inception.

Income taxes

The Company accounts for income taxes under the liability method in accordance with Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" under this method, deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

We adopted the provisions of FASB Interpretation No. 48; “Accounting for Uncertainty in Income Taxes-An Interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48 contains a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not, that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount, which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments. At ~~April~~October 3031, 2010, we did not record any liabilities for uncertain tax position.

Recent accounting pronouncements

In ~~March~~July ~~2008~~2010, the FASB issued ~~SFAS~~Accounting Standards Update (“ASU”) No. 2010-20, ~~161~~“Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses” (“ASU No. 2010-20”). ASU No. 2010-20 amends ASC Topic 310-10-50, ~~DISCLOSURES~~“Receivables ~~ABOUT~~– ~~DERIVATIVE~~Overall ~~INSTRUMENTS~~– ~~AND~~Disclosure” ~~HEDGING~~by ~~ACTIVITIES~~requiring that more information be disclosed to facilitate financial statement users’ evaluation of (i) the nature of credit risk inherent in an ~~amendment~~entity’s toportfolio ~~SFAS~~of financing receivables, (ii) how that risk is analyzed and assessed in arriving at the allowance for credit losses, and (iii) the changes and reasons for those changes in the allowance for credit losses. The amendments in ASU No. 2010-20 ~~133)~~affect all entities with financing receivables, excluding short-term trade accounts receivable or receivables measured at fair value or lower of cost or fair value. ~~This~~A ~~statement~~company iswill ~~effective~~need to disaggregate new and existing disclosure based on how it develops its allowance for ~~financial~~credit ~~statements~~losses ~~issued~~related to financing receivables and how it manages credit exposures. Disclosures must be disaggregated by portfolio segment, the level at which an entity develops and documents a systematic method for ~~fiscal~~determining ~~year~~its allowance for credit losses, and ~~interim~~class ~~periods~~of ~~beginning~~financing ~~after~~receivable, ~~November~~which 15is generally a disaggregation of portfolio segment. The required disclosures include, ~~2008~~among other things, a rollforward of the allowance for credit losses as well as information about modified, impaired, non-accrual and past due loans and credit quality indicators. For public entities, ASU No. 2010-20 requires ~~enhanced~~certain disclosures ~~with~~as ~~respect~~of tothe ~~derivative~~end ~~and~~of ~~hedging~~a ~~activities~~reporting period effective for periods ending on or after December 15, 2010. ~~The~~Accordingly, the Company will ~~comply~~adopt ~~with~~such requirements as of the ~~disclosure~~end ~~requirements~~of its first quarter of ~~this~~fiscal ~~statement~~2011. ifOther itrequired ~~utilizes~~disclosures ~~derivative~~about ~~instruments~~activity that occurs during a reporting period are effective for periods beginning on or ~~engages~~after inDecember 15, ~~hedging~~2010. ~~activities~~Accordingly, ~~upon~~the Company will adopt such requirements effective beginning with its ~~effectiveness~~second quarter of fiscal 2011. The Company is currently evaluating the impact of ASU No. 2010-20 on its financial statement disclosures.

In April 2008, the FASB issued FASB Staff Position No. 142-3, DETERMINATION OF THE USEFUL LIFE OF INTANGIBLE ASSETS (“FSP No. 142-3”) to improve the consistency between the useful life of a recognized intangible asset (under SFAS No. 142) and the period of expected cash flows used to measure the fair value of the intangible asset (under SFAS No. 141(R)). FSP No. 142-3 amends the factors to be considered when developing renewal or extension assumptions that are used to estimate an intangible asset’s useful life under SFAS No. 142. The guidance in the new staff position is to be applied prospectively to intangible assets acquired after December 31, 2008. In addition, FSP No.142-3 increases the disclosure requirements related to renewal or extension assumptions. The Company does not believe implementation of FSP No. 142-3 have a material impact on its financial statements.7

China Timber Work Enterprise, Inc.

(A Development Stage Company)

Notes to Financial Statements

~~April~~October 3031, 2010

Recent accounting pronouncements (continued)

In ~~May~~February ~~2008~~2010, the FASB issued ~~statement~~ASU No. ~~162~~ 2010-09, ~~THE~~“Subsequent ~~HIERARCHY~~Events: OFAmendments ~~GENERALLY~~to ~~ACCEPTED~~Certain ~~ACCOUNTING~~Recognition ~~PRINCIPLES.~~and ~~This~~Disclosure ~~statement~~Requirements” ~~identifies~~(“ASU ~~the~~No. 2010-09”), ~~sources~~an ofamendment ~~accounting~~to ~~principles~~ASC ~~and~~Topic ~~the~~855, ~~framework~~“Subsequent ~~for~~Events.” ~~selecting~~ASU ~~the~~No. 2010-09 ~~principles~~amends toASC beTopic ~~used~~855 into remove the ~~preparation~~requirement offor ~~financial~~an ~~statements~~SEC offiler ~~nongovernmental~~to ~~entities~~disclose ~~that~~the ~~are~~date ~~presented~~through inwhich ~~conformity~~subsequent ~~with~~events ~~generally~~have ~~accepted~~been ~~accounting~~evaluated ~~principles (GAAP)~~ in ~~the~~both ~~United~~issued ~~States~~and ~~(the~~revised ~~GAAP~~financial ~~hierarchy)~~statements. ~~This~~The ~~statement~~guidance isin ASU No. 2010-09 became effective 60upon ~~days~~issuance. ~~following~~Accordingly, the ~~SEC’s~~Company ~~approval~~adopted ofASU ~~the~~No. 2010-09 ~~Public~~in ~~Company~~its ~~Accounting~~second ~~Oversight~~quarter ~~Board~~of ~~amendments~~fiscal toyear-end AU2010. ~~Section~~The ~~411,~~adoption ~~“the~~of ~~Meaning~~ASU ofNo. 2010-09 ~~Present~~did ~~Fairly~~not inhave ~~Conformity~~an ~~With~~impact ~~Generally~~on ~~Accepted~~the ~~Accounting~~Company’s ~~Principles”~~consolidated condensed financial statements.

In ~~May~~January ~~2008~~2010, the FASB issued ~~FSP~~ASU ~~Accounting~~No. 2010-06, ~~Principles~~“Improving ~~Board~~Disclosures About Fair Value Measurements” (~~"APB")~~“ASU 14No. 2010-106”), ~~"Accounting~~an ~~for~~amendment ~~Convertible~~to ~~Debt~~ASC ~~instruments~~Topic ~~That~~820. ~~May~~ASU BeNo. 2010-06 ~~Settled~~amends inASC ~~Cash~~Topic ~~upon~~820 ~~Conversion~~to ~~(Including~~add ~~Partial~~new ~~Cash~~requirements ~~Settlement)"~~for: (~~"FSP~~1) disclosures ~~APB~~about ~~14-~~transfers of assets and liabilities measured at fair value into and out of Levels 1" and 2 of the fair value measurement hierarchy, and (2) separate disclosures on a gross basis about purchases, sales, issuances, and settlements relating to Level 3 measurements. ~~FSP~~It ~~APB~~also ~~14-1~~clarifies ~~requires~~existing fair value disclosures about the ~~issuer~~level of ~~certain~~disaggregation ~~convertible~~and ~~debt~~about ~~instruments~~inputs ~~that~~and ~~may~~valuation betechniques ~~settled~~used into ~~cash~~measure ~~(or~~fair ~~other~~value. ~~assets)~~ASU No. 2010-06 also amends guidance on ~~conversion~~employers’ todisclosures ~~separately~~about ~~account~~postretirement ~~for~~benefit ~~the~~plan ~~liability~~assets ~~(debt)~~under ~~and~~ASC ~~equity~~Topic ~~(conversion~~715, ~~option)~~“Compensation ~~components~~– ofRetirement ~~the~~Benefits ~~instrument~~– inDefined aBenefits ~~manner~~Plans – General – Disclosure,” to require that ~~reflects~~disclosures ~~the~~be ~~issuer's~~provided ~~non-convertible~~by ~~debt~~classes ~~borrowing~~of ~~rate~~assets instead of by major categories of assets. ~~FSP~~The ~~APB~~guidance 14in ASU No. 2010-106 is effective for ~~fiscal~~the ~~years~~first reporting period (including interim periods) beginning after December 15, ~~2008~~2009, except for the requirement to provide the Level 3 activity of purchases, sales, issuances, and settlements on a ~~retroactive~~gross basis., Aswhich wewill dobe ~~not~~effective ~~have~~for ~~convertible~~fiscal ~~debt~~years atbeginning ~~this~~after ~~time~~December 15, we2010, ~~currently~~and ~~believe~~for interim periods within those fiscal years. In the ~~adoption~~period of ~~FSP~~initial ~~APB~~adoption, ~~14-1~~entities will ~~have~~not nobe ~~effect~~required onto ~~our~~provide ~~combined~~the ~~results~~amended ofdisclosures ~~operations~~for ~~and~~any ~~financial~~previous ~~condition~~periods presented for comparative purposes. However, those disclosures are required for periods ending after initial adoption.

~~In May 2008~~Accordingly, the ~~FASB~~Company ~~issued~~adopted ~~Statement~~ASU No. 2010-06 ~~163,~~in ~~ACCOUNTING~~its ~~FOR~~second ~~FINANCE~~quarter ~~GUARANTEE~~of ~~INSURANCE~~fiscal ~~CONTRACTS~~ year-end AN2010, ~~INTERPRETATION~~except OFfor ~~FASB~~the ~~STATEMENT~~requirement ~~NO.~~to ~~60.~~provide ~~The~~separate ~~premium~~disclosures ~~revenue~~about ~~recognition~~purchases, ~~approach~~sales, ~~for~~issuances, aand ~~financial~~settlements ~~guarantee~~relating ~~insurance~~to ~~contract~~Level ~~links~~3 ~~premium~~measurements, ~~revenue~~which ~~recognition~~will tobe adopted for the ~~amount~~Company’s offiscal ~~insurance~~year-end ~~protection~~2012. ~~and~~Since the ~~period~~Company indid ~~which~~not ithave isany ~~provided.~~transfers ~~For~~into ~~purposes~~and out of ~~this~~Levels ~~statement~~1 and 2, the ~~amount~~adoption of ~~insurance~~ASU ~~protection~~No. 2010-06 ~~provided~~did isnot ~~assumed~~have toan beimpact aon ~~function~~the ofCompany’s ~~the~~consolidated ~~insured~~condensed ~~principal~~financial ~~amount~~statements. ~~outstanding~~Similarly, since the ~~premium~~Company ~~received~~does ~~requires~~not ~~the~~own ~~insurance~~any ~~enterprise~~Level to3 ~~stand~~financial ~~ready~~instruments, tothe ~~protect~~adoption ~~holders~~ of anthis ~~insured~~portion ~~financial obligation from loss due to default over the period~~ of ~~the~~ASU ~~insured~~No. 2010-06 ~~financial~~for ~~obligation.~~fiscal ~~This~~year-end ~~Statement~~2012 is ~~effective~~not ~~for~~expected ~~financial~~to ~~statements~~have ~~issued~~an ~~for~~impact ~~fiscal~~on ~~years~~the ~~beginning~~Company’s ~~after~~consolidated ~~December~~financial ~~15, 2008~~statements.

In ~~June~~December ~~2008~~2009, the FASB issued ~~FASB~~ASU ~~Staff Position Emerging Issues Task Force (EITF)~~ No. 032009-~~6-1~~17, ~~DETERMINING~~“Improvements ~~WHETHER~~to ~~INSTRUMENTS~~Financial ~~GRANTED~~Reporting INby ~~SHARE-BASED~~Enterprises ~~PAYMENT~~Involved ~~TRANSACTIONS~~with ~~ARE~~Variable ~~PARTICIPATING~~Interest ~~SECURITIES~~Entities (“~~FSP~~ASU ~~EITF No. 03~~2009-~~6-1~~17”)”. ~~Under~~ASU ~~FSP~~2009-17 ~~EITF~~amends ~~No.~~the 03variable-~~6-1,~~interest ~~unvested~~entity ~~share-based~~guidance ~~payment~~in ~~awards~~FASB ~~that~~ASC ~~contain~~810-10-05-8 ~~rights~~ to ~~receive~~clarify ~~nonforfeitable~~the ~~dividends~~accounting ~~(whether~~treatment ~~paid~~for orlegal ~~unpaid)~~entities ~~are~~in ~~participating~~which ~~securities,~~equity ~~and~~investors ~~should~~do benot ~~included~~have insufficient equity at risk for the ~~two-class~~entity ~~method~~to offinance ~~computing~~its ~~EPS.~~activities ~~FSP~~without ~~EITF~~financial Nosupport. 03ASU 2009-~~6-1~~17 isshall be effective ~~for~~as ~~fiscal~~of ~~years~~the beginning of each reporting entity’s first annual reporting period that begins after ~~December~~November 15, ~~2008,~~2009. ~~and~~ASU ~~interim~~2009-17 ~~periods~~is ~~within~~effective ~~those~~for ~~years,~~the ~~and~~Company isin ~~not~~the ~~expected~~first toquarter ~~have~~of afiscal ~~significant~~2011. ~~impact~~The onCompany is currently evaluating the ~~Company’s~~effect of ASU 2009-17 on its financial statements and results of operation and is currently not yet in a position to determine such effects.

In ~~April~~ August 2009, the FASB issued ~~FSP~~Accounting ~~157~~Standards Update (“ASU”) No. 2009-405, ~~DETERMINING~~“Measuring ~~FAIR~~Liabilities ~~VALUE~~at ~~WHEN~~Fair ~~THE~~Value”, ~~VOLUME~~which ~~AND~~is ~~LEVEL~~codified OFas ~~ACTIVITY~~ASC ~~FOR~~820, ~~THE~~“Fair ~~ASSET~~Value ORMeasurements ~~LIABILITY~~and ~~HAVE~~Disclosures”. ~~SIGNIFICANTLY~~This ~~DECREASED~~Update ~~AND~~provides ~~IDENTIFYING~~amendments ~~TRANSACTIONS~~to ~~THAT~~ASC ~~ARE~~820-10, ~~NOT~~Fair ~~ORDERLY~~Value ~~(“FSP~~Measurements ~~157-4”)~~and Disclosures –Overall, for the fair value measurement of liabilities. ~~FSP~~This ~~157-4~~Update provides ~~additional~~clarification ~~guidance~~that in circumstances in which a quoted price in an active market for ~~estimating~~the identical liability is not available, a reporting entity is required to measure fair value inusing ~~accordance~~a ~~with~~valuation ~~SFAS~~technique ~~157~~that ~~when~~uses the ~~volume~~quoted ~~and~~price ~~level~~ of ~~activity~~the ~~for~~identical ~~the~~liability when traded as an asset, quoted prices for similar liabilities or ~~liability~~similar ~~have~~liabilities ~~significantly~~when ~~decreased~~traded as assets, or that is consistent with the principles of ASC 820. ~~FSP~~The ~~157-4~~amendments in this Update also ~~includes~~clarify ~~guidance~~that onwhen ~~identifying~~estimating ~~circumstances~~the ~~that~~fair ~~indicate~~value of a ~~transaction~~liability, a reporting entity is not ~~orderly.~~required ~~FSP~~to ~~157-4~~include isa ~~effective~~separate ~~for~~input ~~interim~~or ~~and~~adjustment ~~annual~~to ~~reporting~~other ~~periods~~inputs ~~ending~~relating ~~after~~to ~~June 15,~~the ~~2009,~~existence ~~with~~of ~~early~~a ~~adoption~~restriction ~~permitted~~that ~~for~~prevents ~~periods~~transfer ~~ending~~of ~~after~~the ~~March~~liability. ~~15,~~The ~~2009.~~amendments ~~FSP~~in ~~157-4~~this ~~does~~Update ~~not~~also ~~require~~clarify ~~disclosures~~that ~~for~~both ~~earlier~~a ~~periods~~quoted ~~presented~~price in an active market for ~~comparative~~the ~~purposes~~identical liability at ~~initial~~the ~~adoption.~~measurement Indate ~~periods~~and ~~after~~the ~~initial~~quoted ~~adoption,~~price ~~FSP~~for ~~157-4~~the ~~requires~~identical ~~comparative~~liability ~~disclosures~~when ~~only~~traded ~~for~~as ~~periods~~an ~~ending~~asset ~~after~~in ~~initial~~an ~~adoption.~~active ~~The~~market ~~adoption~~when ofno adjustments to the ~~provisions~~quoted price of ~~FSP~~the ~~157-4~~assets isare ~~not~~required ~~anticipated~~are toLevel ~~materially~~1 ~~impact~~fair onvalue ~~the~~measurements. ~~Company’s~~ASC ~~results~~820 ofis ~~operations~~effective orfor the ~~fair~~first ~~values~~reporting period (including interim periods) beginning after August 28, 2009. The adoption of ~~its~~this ~~assets~~Update ~~and~~did ~~liabilities~~not have a significant impact to the Company’s financial statements.

In ~~May~~June 2009, the FASB ~~issued~~established ~~SFAS~~the ~~No.~~FASB ~~165,~~Accounting ~~SUBSEQUENT~~Standards ~~EVENTS~~Codification (~~“SFAS 165”~~ASC). ~~SFAS 165~~as ~~establishes~~the ~~general~~single ~~standards~~source ~~for~~of ~~accounting~~authoritative ~~for~~U.S ~~and~~generally ~~disclosure~~accepted ofaccounting ~~events~~principles ~~that~~(GAAP) ~~occur~~recognized ~~after~~by the ~~balance~~FASB ~~sheet~~to ~~date~~be ~~but~~applied ~~before~~to ~~financial~~nongovernmental ~~statements~~entities. ~~are~~Rules ~~issued~~and orinterpretive ~~available~~releases toof bethe ~~issued~~Securities and ~~was~~Exchange ~~effective~~Commission ~~for~~(“SEC”) ~~interim~~under ~~and~~authority ~~annual~~of ~~periods~~federal ~~ending~~securities ~~after~~laws ~~June~~are ~~15,~~also ~~2009~~sources of authoritative GAAP for SEC registrants. The ~~adoption~~ASC ofsuperseded ~~SFAS~~all ~~No.~~previously ~~165~~existing ~~did~~non-SEC ~~not~~accounting ~~have~~and anreporting ~~impact~~standards, onand ~~the~~any ~~Company’s~~prior ~~results~~sources of ~~operations~~U.S. GAAP not included in the ASC or ~~financial~~grandfathered ~~condition~~are not authoritative. ~~The~~New ~~Company~~accounting ~~evaluated~~standards ~~all~~issued subsequent ~~events~~to ~~that~~June ~~occurred~~30, ~~from~~2009 ~~July~~are 1,communicated ~~2009~~by the FASB through ~~September~~Accounting ~~30,~~Standards ~~2009,~~Updates ~~inclusive,~~(ASUs). ~~and~~The ~~does~~ASC did not ~~found~~change ~~any~~current ~~material~~U.S. ~~subsequent~~GAAP ~~events~~but ~~are~~changes ~~required~~the toapproach ~~disclose~~by referencing authoritative literature by topic (each a “Topic”) rather than by type of standard.

China Timber Work Enterprise, Inc.

(A Development Stage Company)

Notes to Financial Statements

~~April~~October 3031, 2010

Recent accounting pronouncements (continued)

InAdoption June 2009, the FASB issued SFAS No. 166 ACCOUNTING FOR TRANSFERS OF FINANCIAL ASSETS (“SFAS 166). This statement is intended to improve the relevance, representational faithfulness, and comparability of the ~~information~~ASC ~~that~~did anot ~~reporting~~have ~~entity provides in its financial reports about~~ a ~~transfer~~material ofimpact ~~financial~~on ~~assets;~~ the ~~effects~~Company’s ~~of a transfer on its~~ financial ~~position~~statements, ~~financial~~but ~~performance,~~references ~~and cash flows; and a transferor’s continuing involvement~~ in ~~transferred financial assets. This Statement must be applied as of~~ the ~~beginning of each reporting entity~~Company’s ~~first~~notes ~~annual~~to ~~reporting~~financial ~~period~~statements ~~that~~to ~~begins~~former ~~after~~FASB ~~November 15~~positions, ~~2009~~statements, ~~and~~interpretations, isopinions, ~~required~~bulletins toor beother ~~adopted~~pronouncements byare ~~the~~now ~~Company~~presented inas ~~the~~references ~~first quarter of fiscal year 2011. Earlier application is prohibited. This Statement must be applied~~ to ~~transfers occurring on or after~~ the ~~effective~~corresponding ~~date.~~Topic ~~The~~in ~~Company does not expect~~ the ~~adoption of SFAS 166 to have a material impact on the Company’s financial position, results of operations and cash flows~~ASC.

InEffective ~~June~~January 1, 2009, ~~the~~ FASB issued ~~SFAS No. 168, THE~~ FASB ~~ACCOUNTING~~ASC ~~STANDARDS~~350-30 ~~CODIFICATION~~and ~~AND~~ASC ~~THE~~275-10-50 ~~HIERARCHY~~(formerly OFFSP ~~GENERALLY~~FAS ~~ACCEPTED~~142-3, ~~ACCOUNTING PRINCIPLES (~~“~~SFAS~~Determination ~~No.~~of ~~168”). SFAS No. 168 will become~~ the ~~single~~Useful ~~source~~Life of ~~authoritative~~Intangible ~~nongovernmental U.S. generally accepted accounting principles (“GAAP~~Assets”), ~~superseding~~which ~~existing~~amends ~~FASB,~~the ~~American~~factors ~~Institute~~that ofshould ~~Certified~~be ~~Public~~considered ~~Accountants,~~in ~~Emerging~~developing ~~Issues~~renewal ~~Task~~or ~~Force~~extension ~~(“EITF”),~~assumptions ~~and~~used ~~related~~to ~~accounting~~determine ~~literature. SFAS No. 168 reorganizes~~ the ~~thousands~~useful life of ~~GAAP pronouncements into roughly 90 accounting topics and displays them using~~ a ~~consistent~~recognized ~~structure.~~intangible ~~Also~~asset ~~included~~under ~~is relevant Securities and Exchange Commission guidance organized using the same topical structure in separate sections.~~ SFAS No. ~~168~~142 ~~will~~("SFAS be142"), ~~effective~~“Goodwill ~~for~~and ~~financial~~Other ~~statements~~Intangible ~~issued for reporting periods that end after September 15, 2009~~Assets.” The adoption of ~~SFAS~~these ~~No.~~revised ~~168~~provisions isdid not ~~expected to~~ have a material impact on the Company’s ~~consolidated~~Financial ~~results of operations and financial condition~~Statements.

~~Other~~Effective ~~accounting~~January ~~standards~~1, ~~that~~2009, ~~have~~the ~~been~~Company ~~issued~~adopted orFASB ~~proposed~~ASC by805-10, (formerly SFAS 141R, "Business Combinations"), which establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the ~~FASB~~identifiable orassets ~~other~~acquired, ~~standards~~the liabilities assumed, any non-~~setting~~controlling ~~bodies~~interest ~~that~~in doan ~~not~~acquiree and the goodwill acquired. In addition, the provisions in this ASC require ~~adoption~~that ~~until~~any additional reversal of deferred tax asset valuation allowance established in connection with fresh start reporting on January 7, 1998 be recorded as a ~~future~~component ~~date~~of income ~~and~~tax ~~are~~expense ~~not~~rather ~~expected~~than as a reduction to ~~have~~the agoodwill ~~material~~established ~~impact~~in onconnection with the ~~financial~~fresh ~~statements~~start ~~upon~~reporting. The Company will apply ASC 805-10 to any business combinations subsequent to adoption.

Effective July 1, 2009, the Company adopted FASB ASC 825-10-65 (formerly FASB Staff Position (“FSP”) No. FAS 107-1 and Accounting Principles Board 28-1, "Interim Disclosures about Fair Value of Financial Instruments"), which amends previous guidance to require disclosures about fair value of financial instruments for interim reporting periods of publicly traded companies as well as in annual financial statements. The adoption of FASB ASC 825-10-65 did not have a material impact on the Company’s financial statements.

Effective July 1, 2009, the Company adopted FASB ASC 820-10-65 (formerly FSP FAS 157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly"), which provides guidance on how to determine the fair value of assets and liabilities when the volume and level of activity for the asset or liability has significantly decreased when compared with normal market activity for the asset or liability as well as guidance on identifying circumstances that indicate a transaction is not orderly. The adoption of ASC 820-10-65 did not have a material impact on the Company’s financial statements.

Effective July 1, 2009, the Company adopted FASB ASC 855-10 (formerly SFAS 165, “Subsequent Events”), which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date, but before financial statements are issued or are available to be issued. Adoption of ASC 855-10 did not have a material impact on the Company’s financial statements.

Other accounting standards that have issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date and are not expected to have a material impact on the financial statements upon adoption.

China Timber Work Enterprise, Inc.

(A Development Stage Company)

Notes to Financial Statements

~~April~~October 3031, 2010

Note 2 Going Concern

As reflected in the accompanying financial statements, the Company has a net loss of $~~3,960~~500 ~~and net cash used in operations of $2,257~~ for the period ended ~~April~~October 3031, 2010; and a working capital deficit of $2728,~~856~~356, deficit accumulated during the development stage of $2728,~~856~~357 and a stockholder’s deficit of $2728,~~857~~356 at ~~April~~October 3031, 2010. In addition, the Company is in the development stage and has not yet generated any revenues. The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and to continue to raise funds through debt or equity raises. The financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

Note 3 Loan Payable – Related Party

During the period ended ~~April~~October 3031, 2010, the Company’s stockholder loaned the Company $23,785. These advances are non-interest bearing, unsecured and due on demand.

Note 4 Stockholder’s Deficit

During the period ended ~~April~~October 3031, 2010, the Company issued 100,000 shares of common stock to its founder, having a fair value of $1 ($0.00001/share), for pre-incorporation services.

Note 5 Income Taxes

SFAS 109 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit ~~carryforwards~~carry forwards. SFAS 109 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets.

The Company has a net operating loss ~~carryforward~~carry forward for tax purposes totaling $2728,~~857~~357 at ~~April~~October 3031, 2010, expiring through the year 2028. Internal Revenue Code Section 382 places a limitation on the amount of taxable income that can be offset by ~~carryforwards~~carry forwards after a change in control (generally greater than a 50% change in ownership). Temporary differences, which give rise to a net deferred tax asset, are as follows:

Significant deferred tax assets at ~~April~~July 3031, 2010 are as follows:

Gross deferred tax assets:
Net operating loss carryforwards	$	9,~~471~~641
Total deferred tax assets		9,~~471~~641
Less: valuation allowance		(9,~~471~~641	)
Net deferred tax asset recorded	$	-

The valuation allowance at ~~January~~July 31, 2010 was $9,~~074~~471. The net change in valuation allowance during the period ended ~~April~~October 3031, 2010, was an increase of $~~397~~170. In assessing the ~~realizability~~reliability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of ~~April~~October 3031, 2010.

1110

China Timber Work Enterprise, Inc.

(A Development Stage Company)

Notes to Financial Statements

~~April~~October 3031, 2010

The actual tax benefit differs from the expected tax benefit for the ~~period~~year ended ~~April~~October 3031, 2010 (computed by applying the U.S. Federal Corporate tax rate of 34% to income before taxes) as follows:

Expected tax expense (benefit) - Federal	$	(~~9,471~~170	)
Change in valuation allowance		~~9,471~~170
Actual tax expense (benefit)	$	-

1211

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The information contained in Item 2 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this report. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

Description of Business

The Company was incorporated in the State of Delaware on July 28, 2008 and maintains its principal executive office at Room 405, 4/F., Wing Ming Industrial Centre, 15 Cheung Yue Street, Cheung Sha Wan, Kowloon, Hong Kong. Since inception, the Company has been engaged in organizational efforts and obtaining initial financing. The Company was formed as a vehicle to pursue a business combination through the acquisition of, or merger with, an operating business. The Company filed a registration statement on Form 10-SB with the U.S. Securities and Exchange Commission (the “SEC”) on September 15, 2008, and since its effectiveness, the Company has focused its efforts to identify a possible business combination.

The Company, based on proposed business activities, is a “blank check” company. The SEC defines those companies as "any development stage company that is issuing a penny stock, within the meaning of Section 3(a)(51) of the Securities Exchange Act 1934, as amended (the “Exchange Act”), and that has no specific business plan or purpose, or has indicated that its business plan is to merge with an unidentified company or companies." Many states have enacted statutes, rules and regulations limiting the sale of securities of "blank check" companies in their respective jurisdictions. The Company is also a “shell company,” defined in Rule 12b-2 under the Exchange Act as a company with no or nominal assets (other than cash) and no or nominal operations. Management does not intend to undertake any efforts to cause a market to develop in our securities, either debt or equity, until we have successfully concluded a business combination. The Company intends to comply with the periodic reporting requirements of the Exchange Act for so long as we are subject to those requirements.

The Company was organized as a vehicle to investigate and, if such investigation warrants, acquire a target company or business seeking the perceived advantages of being a publicly held corporation. The Company’s principal business objective for the next 12 months and beyond such time will be to achieve long-term growth potential through a combination with an operating business. The Company will not restrict its potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.

Liquidity and Capital Resources

As of ~~April~~October 3031, 2010, the Company’s current liabilities totaled $2628,~~687~~356, comprised exclusively of monies due to stockholders. The following is a summary of the Company's cash flows provided by (used in) operating, investing, and financing activities:

Three Months Ended April 30, 2010

Three Months Ended April 30, 2009

Cumulative From July 28, 2008 (Inception) to April 30, 2010

Three Months Ended October 31, 2010

Three Months Ended October 31, 2009

Cumulative From July 31, 2010 to October 31, 2010

Net Cash (Used in) Operating Activities

~~(465~~-

)

(~~7,463~~514

)

~~(23,785~~-

)

Net Cash (Used in) Investing Activities

Net Cash Provided by Financing Activities

~~465~~-

~~7463~~514

~~23,785~~-

Net Increase in Cash and Cash Equivalents

The Company has no assets and has generated no revenues since inception. The Company is also dependent upon the receipt of capital investment or other financing to fund its ongoing operations and to execute its business plan of seeking a combination with a private operating company. In addition, the Company is dependent upon certain related parties to provide continued funding and capital resources. If continued funding and capital resources are unavailable at reasonable terms, the Company may not be able to implement its plan of operations.

1312

Results of Operation

The Company has not conducted any active operations since inception, except for its efforts to locate suitable acquisition candidates. No revenue has been generated by the Company from July 28, 2008 (Inception) to ~~April~~October 3031, 2010. It is unlikely the Company will have any revenues unless it is able to effect an acquisition or merger with an operating company, of which there can be no assurance. It is management's assertion that these circumstances may hinder the Company's ability to continue as a going concern. The Company’s plan of operation for the next twelve months shall be to continue its efforts to locate suitable acquisition candidates. For the period ended from July 28, 2008 (Inception) to ~~April~~October 3031, 2010, the Company had a net loss of $2728,~~857~~357 ~~comprised exclusively of legal, accounting, audit, and other professional service fees incurred in relation to the filling of the~~ Company’s Registration Statement on Form 10-SB and other related documents.

Management anticipates seeking out a target company through solicitation. Such solicitation may include newspaper or magazine For the period ended from July 28, 2008 (Inception) to ~~April~~October 3031, 2010, the Company had a net loss of $2728,~~857~~357 comprised exclusively of legal, accounting, audit, and other professional service fees incurred in relation to the filling of the Company’s Registration Statement on Form 10-SB and other related documents.

For the three months ending ~~April~~October 3031, 2010, the Company had no activities that produced revenues from operations.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Contractual Obligations

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not required for Smaller Reporting Companies.

Item 4T. Controls and Procedures

a) Evaluation of Disclosure Controls. Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (“Exchange Act”), the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

(b) Changes in internal control over financial reporting. There have been no changes in our internal control over financial reporting that occurred during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

1413

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

Currently we are not aware of any litigation pending or threatened by or against the Company.

Item 1A. Risk Factors.

None.

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

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. (Removed and Reserved).

None.

Item 5. Other Information.

None

Item 6. Exhibits ~~and Reports of Form 8-K~~.

(a) Exhibits

31.1 Certifications pursuant to Section 302 of Sarbanes Oxley Act of 2002

32.1 Certifications pursuant to Section 906 of Sarbanes Oxley Act of 2002

(b) Reports of Form 8-K

None.

1514

SIGNATURES

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

	CHINA TIMBER WORK ENTERPRISE, INC.
Date: June 21, 2010	By:	/s/ Wong Wa Kei Anthony
Date: December 20, 2010	By:	/s/ Wong Wa Kei Anthony
		Wong Wa Kei Anthony
		President, Secretary, Chief Financial Officer and Director

1615

Filing Compare · China Timber Work Enterprises Inc.