Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

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

                                  August 7, 2007
                Date of Report (Date of earliest event reported)

                                SOYO GROUP, INC.
             (Exact name of registrant as specified in its charter)

         Nevada                       333-42036                  95-4502724
----------------------------  ----------------------------  --------------------
(State or other jurisdiction  (Commission File Number)          (IRS Employer
of incorporation)                                            Identification No.)

                            1420 South Vintage Avenue
                         Ontario, California 91761-3646
          (Address of principal executive offices, including zip code)

                                 (909) 292-2500
              (Registrant's telephone number, including area code)

          (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:

[ ] Written communications pursuant to Rule 425 under the Securities Act
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange

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

     On or about May 18, 2007, SOYO Group Inc. (the  "Company")  determined that
certain items on the audited  consolidated  financial  statements of the Company
included in the Company's  Form 10-K for the year ended  December 31, 2006 filed
on April 2, 2007 and  Quarterly  Report on Form 10-Q for the quarter ended March
31,  2007 filed on May 15, 2007 should no longer be relied upon based on reasons
as described below.

     Nancy Chu, CFO, communicated to our independent auditors, Vasquez & Company
LLP,  management and our Audit Committee that the Company  inadvertently made an
error by  treating  the  advances  received  from its factor,  Accord  Financial
Services,  as being sold without recourse,  when in fact, all such advances were
sold  with  recourse.  As a  result,  the  Company  understated  both its  trade
receivables and payables.

     The  Company's  CEO agreed to restate the  financial  statements  for these
periods and have filed the amended Form 10-K and Form 10-Q on August 6, 2007.

     The error in  treatment  of advances  received  from factor  indicates  the
existence  of an internal  control  deficiency  that may  constitute  a material
weakness under standards  established by the Public Company Accounting Oversight
Board.  A material  weakness is a  significant  deficiency  or  combindation  of
significant  deficiencies  that results in more than a remote  likelihood that a
material misstatement of financial statements will not be prevented or detected.
Management  and  Vasquez & Company  LLP have  discussed  the  possible  material
weakness with the Audit Committee.  By implementing  remedial measures discussed
below,  management  intends to  improve  its  internal  control  over  financial
reporting and to avoid future material  misstatements  of financial  statements.
The Company has implemented or implementing the following measures:

     On an ongoing  basis,  the  Controller  will  continue  to review in detail
significant  transactions entered into by the Company, and review SEC accounting
rules, including rules changes and interpretations,  to determine  applicability
to the Company.  The Company will obtain general educational  guidance regarding
applicable SEC accounting rules from its independent auditors, Vasquez & Company
LLP. After obtaining general educational guidance,  the Company may also consult
with other auditors for detailed  educational  guidance and implementation.  The
Controller will report changes in SEC accounting rules, GAAP and interpretations
of SEC accounting rules and GAAP, that may be applicable to the Company with the
Chief Executive Officer, the Chief Financial Officer and the Audit Committee.

     The Company has  discussed  the matters  disclosed  under Item 4.02 in this
current  report on Form 8-K with Vasquez & Co., LLP, the  Company's  independent
registered public accounting firm.


     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.

                                            SOYO GROUP, INC.

Date:  August 7, 2007                       By: /s/ MING CHOK
     ---------------                           -------------------
                                               Ming Chok, CEO

Date:  August 7, 2007                       By: /s/ NANCY CHU
     ---------------                           -------------------
                                               Nancy Chu, CFO