UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

|X|   QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR  15(D)  OF THE  SECURITIES
      EXCHANGE ACT OF 1934
      FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2005

|_|   TRANSITION  REPORT PURSUANT TO 13 OR 15(D) OF THE SECURITIES  EXCHANGE ACT
      OF 1934
      FOR THE TRANSITION PERIOD _____________ TO ____________

                        COMMISSION FILE NUMBER 333-52721

                             ----------------------

                           LANBO FINANCIAL GROUP, INC.
        (Exact name of small business issuer as specified in its charter)


            NEVADA                                        02-0497440
(State or other jurisdiction of               (IRS Employer Identification No.)
 incorporation or organization)

                      C/O WEST WINDSOR PROFESSIONAL CENTER
                                51 EVERETT DRIVE
                                   SUITE A-20
                             WEST WINDSOR, NJ 08550
                    (Address of principal executive offices)

                                  609-799-1889
                (Issuer's telephone number, including area code)

      Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days Yes |X| No |_|

      There were 35,714,285 shares of the Company's common stock outstanding as
of May 13, 2005.

      Transitional Small Business Disclosure Format (Check one): Yes |_| No |X|


<PAGE>

PART I - FINANCIAL INFORMATION.................................................3

         Item 1.  Condensed Financial Statements and Notes thereto.............3

         Item 2.  Management's Discussion and Analysis or Plan of Operation...19

         Item 3.  Controls and Procedures.....................................21

PART II - OTHER INFORMATION...................................................22

         Item 1.  Legal Proceedings...........................................22

         Item 2.  Changes in Securities and Use of Proceeds...................22

         Item 3.  Defaults Upon Senior Securities.............................22

         Item 4.  Submission of Matters To a Vote of Security Holders.........22

         Item 5.  Other Information...........................................22

         Item 6.  Exhibits and Reports on Form 8-K............................22


                                       2
<PAGE>

PART I - FINANCIAL INFORMATION

ITEM 1.  CONDENSED FINANCIAL STATEMENTS AND NOTES THERETO.

<TABLE>
<CAPTION>
                                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

                                           CONSOLIDATED BALANCE SHEETS
                                    AS OF JUNE 30, 2005 AND DECEMBER 31, 2004

                                                   A S S E T S
                                                                                         JUNE 30      December 31,
                                                                                          2005            2004
                                                                                      ------------    -----------
<S>                                                                                   <C>             <C>
                                                                                       (Unaudited)     (Audited)
CURRENT ASSETS:
    Cash                                                                              $    206,820    $   199,956
    Cash - restricted                                                                    1,671,705      1,508,376
    Accounts receivable, trade, net of allowance for doubtful
       accounts of $985,133 and $370,246 as of June 30, 2005 and
       December 31, 2004, respectively                                                  10,858,587      3,790,974
    Other receivables, net of allowance for doubtful accounts of $318,183
       and $1,090,852 as of June 30, 2005 and December 31, 2004, respectively            2,282,288         23,313
    Other receivables - related party                                                       14,648             --
    Prepaid expense                                                                      5,010,983      5,952,638
                                                                                      ------------    -----------
       Total current assets                                                             20,045,031     11,475,257
                                                                                      ------------    -----------
REAL ESTATE HELD FOR DEVELOPMENT OR SALE                                                28,252,997     27,571,614
                                                                                      ------------    -----------
PLANT AND EQUIPMENT, net                                                                 5,343,718      2,545,782
                                                                                      ------------    -----------
LONG-TERM INVESTMENT                                                                            --      2,598,430
                                                                                      ------------    -----------
OTHER ASSETS:
    Deferred charges - net                                                                      --            825
                                                                                      ------------    -----------
       Total other assets                                                                       --            825
                                                                                      ------------    -----------
          Total assets                                                                $ 53,641,746    $44,191,908
                                                                                      ============    ===========

                                       LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
    Accounts payable, trade                                                           $  2,453,118    $ 5,789,210
    Advances from customers                                                              1,388,103      2,172,476
    Accrued liability                                                                    7,414,793      5,923,608
    Income and other taxes payable                                                      10,811,695      5,230,841
    Other payables                                                                         481,153        190,655
    Other payables - related party                                                       5,760,000      5,881,000
    Short term loans payable - bank                                                      7,018,000      7,623,000
                                                                                      ------------    -----------
       Total current liabilities                                                        35,326,862     32,810,790
                                                                                      ------------    -----------
    Long term loans payable - bank                                                       6,655,000      4,235,000
                                                                                      ------------    -----------
             Total liabilities                                                          41,981,862     37,045,790
                                                                                      ------------    -----------
SHAREHOLDERS' EQUITY:
    Preferred stock, $0.001 par value, 10,000,000 shares authorized,
       no shares issued and outstanding
    Common stock, $0.001 par value, authorized 50,000,000 shares,
       35,714,286 shares issued and outstanding                                             35,715         35,715
    Paid-in-capital                                                                      8,634,109      8,634,109
    Statutory reserve                                                                    1,859,899      1,859,899
    Retained earnings                                                                    6,890,161      2,376,395
    Owner contribution receivable                                                       (5,760,000)    (5,760,000)
                                                                                      ------------    -----------
       Total shareholders' equity                                                       11,659,884      7,146,118
                                                                                      ------------    -----------
          Total liabilities and shareholders' equity                                  $ 53,641,746    $44,191,908
                                                                                      ============    ===========
</TABLE>



                                                        3
<PAGE>

<TABLE>
<CAPTION>

                              LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
                    FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2005 AND 2004


                                                    Three months ended              Six months ended
                                               ---------------------------   ---------------------------
                                                         June 30                       June 30
                                               ---------------------------   ---------------------------
                                                   2005           2004           2005          2004
                                               ------------   ------------   ------------   ------------
                                               (Unaudited)     (Unaudited)    (Unaudited)    (Unaudited)
                                               ------------   ------------   ------------   ------------
<S>                                            <C>            <C>            <C>            <C>
GROSS REVENUES                                 $ 12,757,874   $ 15,744,699   $ 19,601,200   $ 22,588,025

COST OF SALES                                     7,993,715     11,246,378     11,699,616     14,952,279
                                               ------------   ------------   ------------   ------------
GROSS PROFIT                                      4,764,159      4,498,321      7,901,584      7,635,746
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES        351,671         91,326      1,091,529        831,184
                                               ------------   ------------   ------------   ------------
INCOME FROM OPERATIONS                            4,412,488      4,406,995      6,810,055      6,804,562

OTHER INCOME, net of other expense                  616,240         40,868        183,833       (391,539)
                                               ------------   ------------   ------------   ------------
INCOME BEFORE PROVISION FOR INCOME TAXES          5,028,728      4,447,863      6,993,888      6,413,023

PROVISION FOR INCOME TAXES                        1,695,263      1,352,173      2,480,122      2,137,032
                                               ------------   ------------   ------------   ------------
NET INCOME                                        3,333,465      3,095,690      4,513,766      4,275,991

OTHER COMPREHENSIVE INCOME (LOSS):
    Foreign currency translation adjustment              --             --             --             --
                                               ------------   ------------   ------------   ------------
COMPREHENSIVE INCOME                           $  3,333,465   $  3,095,690   $  4,513,766   $  4,275,991
                                               ============   ============   ============   ============
BASIC AND DILUTED INCOME
    PER COMMON SHARE                                   0.09           0.16           0.13           0.22
                                               ============   ============   ============   ============
BASIC AND DILUTED WEIGHTED AVERAGE
    COMMON SHARES OUTSTANDING                    35,714,286     19,285,714     35,714,286     19,285,714
                                               ============   ============   ============   ============
</TABLE>


                                                    4
<PAGE>

<TABLE>
<CAPTION>
                                      LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

                                     CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                                     FOR THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004


                                                  Number         Common         Paid in       Statutory       Retained
                                                 of shares       stock          capital       reserves        earnings
                                               ------------   ------------   ------------   ------------   -------------
<S>                                            <C>            <C>            <C>            <C>            <C>
BALANCE, January 1, 2004, audited                19,285,714   $     19,286   $  6,085,641   $    686,579   $   2,228,775

     Net Income                                                                                                4,275,991
     Dividend distributed                                                                                     (3,204,548)
                                               ------------   ------------   ------------   ------------   -------------
BALANCE, June 30, 2004                           19,285,714   $     19,286   $  6,085,641   $    686,579   $   3,300,218

     Net Income                                                                                                  249,497
     Recapitalization as a result of merger       2,500,000          2,500            167
     Stock issued for reverse merger expense     13,928,572         13,929      2,548,301
     Adjustment to statutory reserve                                                           1,173,320      (1,173,320)
                                               ------------   ------------   ------------   ------------   -------------
BALANCE, December 31, 2004, audited              35,714,286   $     35,715   $  8,634,109   $  1,859,899   $   2,376,395

     Net Income                                                                                                4,513,766
                                               ------------   ------------   ------------   ------------   -------------
BALANCE, June 30, 2005                           35,714,286   $     35,715   $  8,634,109   $  1,859,899   $   6,890,161
                                               ============   ============   ============   ============   =============
<CAPTION>
                                                                 Accumulated
                                                   Owner           other
                                               contribution    comprehensive
                                                receivable     income (loss)        Totals
                                               -------------   --------------   --------------
<S>                                            <C>             <C>              <C>
BALANCE, January 1, 2004, audited              $  (5,760,000)  $                $    3,260,281

     Net Income                                                                      4,275,991
     Dividend distributed                                                           (3,204,548)
                                               -------------   --------------   --------------
BALANCE, June 30, 2004                         $  (5,760,000)  $                $    4,331,724

     Net Income                                                                        249,497
     Recapitalization as a result of merger                                              2,667
     Stock issued for reverse merger expense                                         2,562,230
     Adjustment to statutory reserve
                                               -------------   --------------   --------------
BALANCE, December 31, 2004, audited            $  (5,760,000)  $                $    7,146,118

     Net Income                                                                      4,513,766
                                               -------------   --------------   --------------
BALANCE, June 30, 2005                         $  (5,760,000)  $                $   11,659,884
                                               =============   ==============   ==============
</TABLE>


                                       5
<PAGE>

<TABLE>
<CAPTION>
                       LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2005 AND 2004


                                                                   2005          2004
                                                               ------------   -----------
                                                                (Unaudited)   (Unaudited)
                                                               ------------   -----------
<S>                                                            <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                                 $  4,513,766   $ 4,275,991
    Adjustments to reconcile net income to cash
       provided by (used in) operating activities:
         Depreciation                                                90,368        83,011
         Gain on sale of investment                                (191,060)           --
       (Increase) decrease in assets:
         Change in restricted cash                                 (163,329)     (439,267)
         Accounts receivable - trade                             (7,067,613)   (4,671,453)
         Other receivables                                       (1,774,975)    1,991,117
         Other receivables - related party                          (14,648)      466,247
         Inventories                                               (681,383)    7,333,310
         Employee advances                                               --        (5,826)
         Prepaid expense                                            941,655       535,657
         Deferred charges                                               825        (2,489)
       Increase (decrease) in liabilities:
         Accounts payable                                        (3,336,092)   (4,331,284)
         Advances from customers                                   (784,373)   (1,090,982)
         Accrued libilities                                       1,491,185       (97,592)
         Other taxes payable                                      5,580,854     2,879,980
         Other payables                                            (366,954)    2,119,673
         Other payables - related parties                                --    (1,201,000)
                                                               ------------   -----------
           Net cash (used in) provided by operating activities   (1,761,774)    7,845,093
                                                               ------------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of equipment and automobiles                           (46,362)   (1,344,432)
                                                               ------------   -----------
           Net cash used in investing activities                    (46,362)   (1,344,432)
                                                               ------------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Dividend distribution                                                --    (3,204,549)
    Proceeds from owners contribution receivable                         --     1,080,000
    Payments on short term loan                                    (605,000)           --
    Borrowing (payments) on long term notes payable               2,420,000    (2,662,000)
                                                               ------------   -----------
           Net cash provided by (used in) financing activities    1,815,000    (4,786,549)
                                                               ------------   -----------
INCREASE IN CASH                                                      6,864     1,714,112

CASH, beginning of period                                           199,956       476,352
                                                               ------------   -----------
CASH, end of period                                            $    206,820   $ 2,190,464
                                                               ============   ===========
</TABLE>


                                       6
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - BACKGROUND

On November 12, 2004,  Lanbo  Financial  Group,  Inc. (the "Company" or "Lanbo")
changed its name from Micro  Interconnect  Technology,  Inc. to Lanbo  Financial
Group, Inc.

The Company was organized  under the laws of the State of Nevada on February 11,
1998. The Company had planned to license internally developed patented processes
that would  improve  the  production  of printed  circuit  boards.  The  Company
discontinued its patent licensing business effective November 4, 2003.

On September 29, 2004, Lanbo entered into a Share Exchange Agreement  ("Exchange
Agreement") with Lanbo Financial Investment Company Group Limited ("LFIC"),  all
of the  stockholders of LFIC ("LFIC  Stockholders"),  and Keating Reverse Merger
Fund, LLC, a Delaware limited liability company ("KRM Fund"). Under the Exchange
Agreement,  the Company acquired all of the outstanding capital stock of LFIC in
exchange for the Company's issuance to LFIC Stockholders of 19,285,714 shares of
the Company's common stock.

The purchase of LFIC and the  issuance of Lanbo common stock has been  accounted
for as a reverse acquisition presented as a recapitalization, except no goodwill
or other intangible assets are recorded.

LFIC was  incorporated  on  September  24, 2003 in the  territory of the British
Virgin  Islands.  The  authorized  capital  of the  Company is  $10,800,000  and
10,800,000 registered shares with a par value of $1.00 per share. The Company is
an investment  holding company and does not have any activities  other than some
general  administrative  expenses.  As of June 30, 2005, LFIC through its wholly
owned subsidiary,  Xian New Star Real Estate Development  Co.,Ltd.  ("Newstar"),
principally  engaged in the construction,  development,  and sale of residential
units in the People's Republic of China ("PRC").

Newstar  was  established  during May 1992 as a  state-owned  enterprise,  whose
former name is Xian New Star Group Real  Estate  Development  Co.  Ltd,  and was
formerly  subjected to logistics  department  of Lan Zhou  Military  area of the
People's  Liberation  Army  of  China.  Newstar  was  reorganized  as a  limited
liability  company  with equity  capital  invested by  management  personnel  in
September 1999. Newstar is a Chinese registered limited liability company with a
legal  structure  similar  to a  regular  corporation  and a  limited  liability
company.  The  Articles  of  Association  provide  for a 54 year term  beginning
September  7,  1999  with  registered   capital  of   approximately   $3,140,000
(RMB26,000,000).  On March 28,  2002,  the  registered  capital of  Newstar  was
increased to approximately $6,050,000 (RMB50,000,000).

On  September  16, 2003,  LFIC,  a  non-operating  investment  holding  company,
acquired  a 100%  interest  in  Newstar  for  $6,840,000  (RMB  56,505,430).  In
accordance  with laws governing  foreign  acquisitions  of a Chinese  registered
limited liability company,  there were two payment terms for this purchase.  The
first payment was equal to at least 15% of the total  purchase  price of Newstar
and was paid on December 31, 2003. The second  payment of the remaining  balance
was due on December 31, 2004.  The Company  obtained the approval of the Foreign
Trade and Economic  Cooperation  Commission  of Xi'an City on December 22, 2003.
The  business  term  is 50  years  starting  on  December  24,  2003.  Newstar's
registered  capital is $6,050,000 (RMB  50,000,000) and the total  investment is
approximately  $6,840,000 (RMB 56,505,430).  The first payment of $1,080,000 was
made on  December  30,  2003  from LFIC to  Newstar.  This  payment  was made in
accordance  with the  requirements  of the  acquisition;  the  funds  have  been
disbursed to the previous stockholders of Newstar as of June 30, 2005.


                                       7
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BACKGROUND, (CONTINUED)

During  November  2003,  LFIC  issued  6,840,000  shares of common  stock to the
identical  owners of Newstar in  consideration of a promissory note payable from
the former Newstar owners  totaling  $6,840,000 with a first payment equal to at
least 15% of the total  promissory  note  payable on  December  31, 2003 and the
second  payment of the  remaining  balance  payable on December 31,  2004.  As a
result of this transaction,  the former owners of Newstar exercised control over
LFIC.  The initial  payment of $1,080,000  was made during  November  2003.  The
remaining balance of $5,760,000 was due on December 31, 2004 and is secured by a
pledge of the common stock in LFIC issued to the LFIC  Stockholders.  The former
owners of Newstar extended this payment to June 30, 2006.

The purchase of Newstar and the issuance of LFIC common stock has been accounted
for as a reverse acquisition presented as a recapitalization, except no goodwill
or other intangible assets are recorded.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The reporting entity

The consolidated  financial  statements of the Company reflect the activities of
its 100% owned subsidiary,  LFIC and LFIC's 100% owned subsidiary,  Newstar. The
consolidated  financial  statements have been presented as if the acquisition of
the subsidiary occurred during 1999 due to common management and ownership.  The
consolidated  financial  statements  generally  reflect only the  activities  of
Newstar at its historical cost since the parent company,  LFIC had no activities
for the  years  ended  December  31,  2002 and  2001.  The  Company's  financial
statements  are prepared in  conformity  with  accounting  principles  generally
accepted in the United States of America.

Real estate held for development and sale

Real estate consists of finished  residential  unit sites and  residential  unit
sites under development, completed residential units and residential units under
construction.  The Company leases the land for the residential  unit sites under
land  right  leases  with  various  terms  from the PRC.  Real  estate  held for
development  and sale is stated at the  lower of cost or net  realizable  value.
Expenditures  for land  development are capitalized and allocated to development
projects by the specific  identification method. Costs are allocated to specific
units based on the ratio of the unit sales price to the estimated  total project
sales price times the total project costs.


                                       8
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (CONTINUED)

Real estate held for development and sale, (continued)

The following  summarizes  the  components of real estate  inventory at June 30,
2005 and December 31, 2004:

                                       June 30,    December 31,
                                         2005         2004
                                     -----------   -----------
                                     (Unaudited)    (Audited)
                                     -----------   -----------
XingXing Litu Ming Yuan              $   146,926   $   146,926
XingXing Ming Yuan
                                              --        45,133
XingXing Home In                         752,582     2,000,413
XingXing Gang Wen                      2,304,267     2,755,720
XingXing JunJin Yuan                  12,203,268    16,722,369
                                     -----------   -----------
REAL ESTATE HELD FOR SALE AND RENT    15,407,043    21,670,561
                                     -----------   -----------
XingXing JunJin Yuan                   5,331,128     2,371,571
TownDu Machine Manufacture             3,526,063     3,529,482
Xidu Tower                             3,988,763            --
                                     -----------   -----------
REAL ESTATE UNDER CONSTRUCTION        12,845,954     5,901,053
                                     -----------   -----------
Total                                $28,252,997   $27,571,614
                                     ===========   ===========


The Company capitalizes interest which is expensed as housing units and building
lots are  sold.  For the six  months  ended  June 30,  2005 and  2004,  interest
incurred and capitalized by the Company was $597,994 and $437,248, respectively.
Capitalized  interest  expensed for the same periods was $265,646 and  $317,520,
respectively.

Management  evaluates the  recoverability  of its real estate  inventories using
several factors  including,  but not limited to,  management's  plans for future
operations,  recent operating  results and projected cash flows. The Company has
not recognized any impairment loss of real estate inventories for the six months
ended June 30, 2005 and 2004.

Foreign currency translation

The  reporting  currency of the Company is the US dollar.  The Company  uses its
local currency,  Renminbi,  as their functional currency.  Results of operations
and cash flow are translated at average  exchange  rates during the period,  and
assets and  liabilities  are  translated  at the end of period  exchange  rates.
Translation  adjustments resulting from this process are included in accumulated
other comprehensive income in the statement of shareholders' equity. Transaction
gains and losses that arise from  exchange  rate  fluctuations  on  transactions
denominated in a currency other than the functional currency are included in the
results of  operations  as  incurred.  These  amounts  are not  material  to the
financial statements.


                                       9
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (CONTINUED)

Revenue recognition

Real estate sales are reported in accordance with the provisions of Statement of
Financial  Accounting  Standard No. 66,  "Accounting  for Sales of Real Estate".
Profit  from the sales of  development  properties,  less 5%  business  tax,  is
recognized by the full accrual  method when the sale is  consummated.  A sale is
not  considered  consummated  until (a) the  parties are bound by the terms of a
contract, (b) all consideration has been exchanged,  (c) any permanent financing
of which  the  seller  is  responsible  has been  arranged,  (d) all  conditions
precedent  to  closing  have  been  performed,  (e) the  seller  does  not  have
substantial  continuing  involvement with the property,  and (f) the usual risks
and rewards of ownership have been transferred to the buyer.

Sales transactions not meeting all the conditions of the full accrual method are
accounted for using the deposit method of accounting.  Under the deposit method,
all costs are capitalized as incurred,  and payments received from the buyer are
recorded as a deposit  liability.  Real estate rental  income,  less 5% business
tax,  is  recognized  on the  straight-line  basis over the terms of the tenancy
agreements.

Plant and equipment, net

Plant and equipment  are recorded at cost.  Depreciation  is computed  using the
straight-line method over the estimated useful lives of the assets. Depreciation
expense for the six months ended June 30, 2005 and 2004  amounted to $90,368 and
$83,011, respectively. Estimated useful lives of the assets are as follows:

                                 Estimated Useful Life
Buildings                            20 years
Machinery and equipment              1-3 years
Vehicles                             5-6 years
Electronic equipment                 2-5 years
Office furniture                     4-5 years

Construction in progress includes  engineering  costs,  insurance costs,  wages,
interests and other costs relating to construction in progress.  Construction in
progress balances are transferred to equipment when the related assets are ready
for their  intended  use.  No  depreciation  is  provided  for  construction  in
progress.

Maintenance,  repairs and minor  renewals  are  charged  directly to expenses as
incurred.   Major  additions  and  betterment  to  property  and  equipment  are
capitalized.

Long-term  assets of the  Company  are  reviewed  annually  as to whether  their
carrying value has become impaired.  The Company considers assets to be impaired
if  the  carrying  value  exceeds  projected  future  cash  flows  from  related
operations.  The  Company  also  re-evaluates  the  periods of  amortization  to
determine whether subsequent events and circumstances  warrant revised estimates
of useful lives. No impairment loss was recognized for the six months ended June
30, 2005 and 2004.


                                       10
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (CONTINUED)

Plant and equipment, net (continued)

Plant and  equipment  consist of the following at June 30, 2005 and December 31,
2004:

                                       June 30,    December 31,
                                        2005          2004
                                    ------------   -----------
                                     (Unaudited)    (Audited)
                                    -----------    -----------
Buildings and improvements          $ 6,095,858    $ 3,253,916
Machinery and equipment                 120,369         99,436
Transportation equipment                145,313        156,667
Furniture and fixture                    86,107         89,477
                                    -----------    -----------
      Totals                          6,447,647      3,599,496
Accumulated depreciation               (799,966)      (749,751)
Reserve for impaired assets            (303,963)      (303,963)
                                    -----------    -----------
      Property and equipment, net   $ 5,343,718    $ 2,545,782
                                    ===========    ===========

Accounts receivable, trade

Accounts receivable,  trade consists of balances due from customers for the sale
of residential  units in the PRC. In cases where the customers deposit more than
50% of the total purchase  price,  the Company may defer the remaining  purchase
price.  These  deferred  balances  are  unsecured,  bear no interest and are due
within one year from the date of the sale.

Accounts  receivables  of the Company are reviewed  annually as to whether their
carrying  value has become  impaired.  The  Company  considers  the assets to be
impaired if the balances are greater than one year old.

Accounts  receivable  consist of the following at June 30, 2005 and December 31,
2004:


                                       June 30,    December 31,
                                        2005          2004
                                     -----------   -----------
                                     (Unaudited)    (Audited)
                                     -----------   -----------
Accounts receivable                  $11,843,720   $ 4,161,220
  Allowance for bad debts               (985,133)     (370,246)
                                     -----------   -----------
Accounts receivable, net             $10,858,587   $ 3,790,974
                                     ===========   ===========


Other receivables

Other  receivables  consist of various cash advances to unrelated  companies and
individuals which management of the Company have business  relationships.  These
amounts  are  not  related  to  operations  of  the  Company,   are   unsecured,
non-interest bearing and generally are short term in nature.

Other  receivables are reviewed  annually as to whether their carrying value has
become impaired. The Company considers the assets to be impaired if the balances
are greater than one year old. As of June 30, 2005 and  December  31, 2004,  the
Company has  established  an  allowance  for  doubtful  accounts of $318,183 and
$1,090,852, respectively.


                                       11
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (CONTINUED)

Prepaid expenses

Prepaid  expenses  consist of  balances  paid to  contractors  and  vendors  for
services and  materials  that have not been  performed or received and generally
relate to the development and construction of residential units in the PRC.

Long term Investment

During the year 2003, Newstar made the following investments. In accordance with
Accounting Research Bulletin 51, as amended, the Company has accounted for these
two  investments  based on the equity method due to control not resting with the
Company and governmentally imposed uncertainties which cast significant doubt on
the Company's ability to control the subsidiary.  During 2004, the Company began
to transfer the ownership,  however due to  restrictions  imposed by the Chinese
government  and  approvals  required  from  former  employees,  control  of  the
investments  does not rest with the Company.  According  to a resolution  of the
board of directors  of Newstar  dated May 10,  2004,  Newstar will  transfer its
whole equity capital in the above two  investment  companies in the near future.
On December  26,  2004 the board of  directors  reevaluated  and  confirmed  its
decision.

In  accordance  with a resolution of the board of directors of Newstar dated May
18, 2005 and the investments  transfer  agreements dated June 21, 2005,  Newstar
sold its investment in Xian Xin Da Di Science  Development  Ltd. and Xian Xin Li
Moca Material Ltd. to Shanxi XinXing  Construction  Company ($2,178,000) and Mr.
Liu Shao  Ming  ($484,000)  for the  total  consideration  of  $2,662,000  which
resulted  in a gain of  $191,060.  As of  June  21,  2005,  the  balance  of the
investments are as follows:

<TABLE>
<CAPTION>

                           Initial                    December 31,                    June 21,
Investee                    Cost        Ownership        2004           (Loss)         2005
----------------------   -----------   -----------    -----------    -----------    -----------
<S>                      <C>           <C>            <C>            <C>            <C>
Xian Xin Da Di Science
   Development Ltd.      $ 2,299,000            95%   $ 2,107,940    $    (3,460)   $ 2,104,480

Xian Xin Li Moca
   Material Ltd              484,000            80%       490,490        (15,255)
                                                                                        475,235
                         -----------                  -----------    -----------    -----------
Totals                   $ 2,783,000                  $ 2,598,430    $   (18,715)   $ 2,579,715
                         ===========                  ===========    ===========    ===========
</TABLE>

Shanxi XinXing Construction Company has transferred a building at an agreed upon
value (90% of appraised value) amounting to $2,841,942 to Newstar as payment for
acquiring the above investments.  The agreed upon value of the building exceeded
the purchase  price by $663,942,  this amount has been reflected as a payable to
Shanxi XinXing Construction Company on the accompanying balance sheet.

Use of estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting  principles  of the United States of America  requires  management to
make  estimates  and  assumptions  that  affect  the  amounts  reported  in  the
consolidated  financial  statements and accompanying notes.  Management believes
that the estimates utilized in preparing its financial statements are reasonable
and prudent. Actual results could differ from these estimates.


                                       12
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (CONTINUED)

Cash and concentration of risk

Cash  includes  cash on hand and demand  deposits  in accounts  maintained  with
state-owned  banks within the PRC. Total cash in  state-owned  banks at June 30,
2005 and December 31, 2004 amounted to $138,120 and $100,309,  respectively,  of
which no deposits are covered by insurance.  The Company has not experienced any
losses in such  accounts and believes it is not exposed to any risks on its cash
in bank accounts.

Cash-restricted

The  Company,  through its bank  agreements,  is  required  to maintain  certain
amounts which buyers have  deposited with the Company which allows the buyers to
obtain  mortgage  loans from the bank.  These balances are subject to withdrawal
restrictions  totaling  $1,671,705  and  $1,508,376,  as of June  30,  2005  and
December 31, 2004, respectively.

Financial instruments

Statement of Financial  Accounting  Standards No. 107,  "Disclosures  About Fair
Value  of  Financial  Instruments"  requires  disclosure  of the  fair  value of
financial  instruments  held by the Company.  SFAS 107 defines the fair value of
financial  instruments as the amount at which the instrument  could be exchanged
in a current  transaction  between willing  parties.  The Company  considers the
carrying  amount  of cash,  accounts  receivable,  other  receivables,  accounts
payable, accrued liabilities and other payables to approximate their fair values
because of the short period of time between the origination of such  instruments
and their expected realization and their current market rate of interest.

Income taxes

The Company has adopted  Statement of Financial  Accounting  Standards  No. 109,
"Accounting  for Income Taxes" (SFAS 109).  SFAS 109 requires the recognition of
deferred  income  tax  liabilities  and  assets  for  the  expected  future  tax
consequences  of temporary  differences  between  income tax basis and financial
reporting basis of assets and liabilities. Provision for income taxes consist of
taxes  currently due plus deferred  taxes.  There are no deferred tax amounts at
June 30, 2005 and 2004.

The charge for  taxation is based on the  results  for the year as adjusted  for
items, which are non-assessable or disallowed.  It is calculated using tax rates
that have been enacted or substantively enacted by the balance sheet date.

Deferred  tax is  accounted  for using the  balance  sheet  liability  method in
respect of temporary  differences  arising from differences between the carrying
amount  of  assets  and   liabilities  in  the  financial   statements  and  the
corresponding tax basis used in the computation of assessable tax profit.

In principle,  deferred tax liabilities are recognized for all taxable temporary
differences,  and  deferred tax assets are  recognized  to the extent that it is
probably  that  taxable  profit  will  be  available  against  which  deductible
temporary differences can be utilized.


                                       13
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (CONTINUED)

Income taxes, (continued)

Deferred  tax is  calculated  at the tax rates that are expected to apply to the
period when the asset is realized or the  liability is settled.  Deferred tax is
charged or credited to the income statement,  except when it is related to items
credited or charged  directly to equity,  in which case the deferred tax is also
dealt with in equity.  Deferred tax assets and  liabilities are offset when they
relate to income taxes  levied by the same  taxation  authority  and the Company
intends to settle its current tax assets and liabilities on a net basis.

The Company through its subsidiary,  Newstar,  is governed by the Income Tax Law
of the PRC concerning  Chinese  registered  limited  liability  company prior to
December 24, 2003. Under the Income Tax Laws of the PRC, Chinese enterprises are
generally subject to an income tax at an effective rate of 33% (30% state income
taxes plus 3% local income taxes) on income reported in the statutory  financial
statements after  appropriate tax adjustments,  unless the enterprise is located
in a specially  designated  region for which more favorable  effective tax rates
are applicable.

The provision for income taxes at June 30, consisted of the following:

                                              2005         2004
                                           ----------   ----------
Provision for China income and local tax   $2,480,122   $2,137,032
Deferred taxes                                     --           --
                                           ----------   ----------
      Total provision for income taxes     $2,480,122   $2,137,032
                                           ==========   ==========


The  following  table  reconciles  the U.S.  statutory  rates  to the  Company's
effective tax rate at June 30:

                                              2005         2004
                                           ----------   ----------
U.S. statutory rates                             34.0%       34.0%
Foreign income not recognized in USA            (34.0)       (34.0)
China income taxes                               33.0         33.0
                                           ----------   ----------
      Totals                                     33.0%        33.0%
                                           ==========   ==========

Advances from customers

Advances from  customers  consist of amounts paid to the Company for the sale of
residential  units in the PRC. In the PRC, the customer  will  generally  obtain
permanent  financing  for the  purchase of their  residential  unit prior to the
completion of the project.  The lending  institution will provide the funding to
the Company upon the  completion of the financing  rather than the completion of
the project.  The Company  receives these funds and recognizes them as a current
liability  until the revenue can be recognized in accordance  with  Statement of
Financial  Accounting Standard No. 66, "Accounting for Sales of Real Estate". As
of June 30, 2005 and December 31, 2004,  the Company has advance  payments  from
customer which amounted to $1,388,103 and $2,172,476, respectively.


                                       14
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (CONTINUED)

Other payables

Other  payables  consist of various cash advances from  unrelated  companies and
individuals which management of the Company have business  relationships.  These
amounts  are  not  related  to  operations  of  the  Company,   are   unsecured,
non-interest  bearing and  generally  are short term in nature.  Other  payables
amounted to $481,153  and  $190,655 as of June 30, 2005 and  December  31, 2004,
respectively.

NOTE 3 - CONSOLIDATED FINANCIAL STATEMENTS AND CONDENSED FOOTNOTES

The  interim  consolidated  financial  statements  presented  herein  have  been
prepared by the Company  and include the  unaudited  accounts of the Company and
its subsidiaries.  All significant  inter-company accounts and transactions have
been eliminated in the consolidation.

These  consolidated  financial  statements have been prepared in accordance with
generally  accepted  accounting  principles  in the United  States  for  interim
financial  information  and the  instructions  to Form  10-QSB and Article 10 of
Regulation S-X. Certain information and footnote  disclosures  normally included
in  financial   statements  presented  in  accordance  with  generally  accepted
accounting principles have been condensed or omitted.  Management of the Company
believes the disclosures made are adequate to make the information presented not
misleading.  The condensed  consolidated  financial statements should be read in
conjunction  with  Lanbo's  audited  financial  statements  for the years  ended
December  31, 2004 and 2003 and notes  thereto  included in Lanbo's Form 10-KSB,
dated March 31, 2005.

In the opinion of management,  the unaudited  consolidated  financial statements
reflect  all  adjustments  (which  include  only normal  recurring  adjustments)
necessary to present fairly the financial position of the Company as of June 30,
2005 and the results of  operations  for the three  months and six months  ended
June 30,  2005 and  2004,  respectively.  Interim  results  are not  necessarily
indicative  of full year  performance  because  of the  impact of  seasonal  and
short-term variations.

NOTE 4 - SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Income taxes paid  amounted to $53,198 and $81,070 for the six months ended June
30, 2005 and 2004, respectively. Interest paid for the six months ended June 30,
2005 and 2004 amounted to $863,640 and $437,248, respectively.

Non cash transaction

The  Company  received a building  with a value of  $2,841,942  as payment  from
ShanXi  XinXing  Construction  for  purchasing  the  investment  in XinDaDi  and
XinLiMoCa  for the amount of  $2,178,000.  The agreed upon value of the building
exceeded the purchase  price by  $663,942,  this amount has been  reflected as a
payable  to Shanxi  XinXing  Construction  Company on the  accompanying  balance
sheet.  The  portion of the  investment  sold to Mr. Liu Shao Ming  generated  a
receivable of $484,000 which has been reflected as other receivable from Mr. Liu
Shao Ming on the accompanying balance sheet.


                                       15
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5 - SHORT-TERM LOANS PAYABLE - BANK

Short term loans payable  represent  amounts due to various banks and are due on
demand or normally  within one year.  These loans  generally can be renewed with
the banks.  Short term loans  payable at June 30, 2005 and  December  31,  2004,
consisted of the following:

                                                      June 30,    December 31
                                                        2005         2004
                                                     ----------   ----------
                                                     (Unaudited)   (Audited)
                                                     ----------   ----------
Commercial Bank Weilai  Branch due July 27, 2005
       monthly  interest at 0.57525%,
      guaranteed by the Company
      Xing Xing Mansion and Ming Yuan Projects       $5,445,000   $5,445,000

Commercial Bank Weilai Branch due January 16, 2005
      monthly interest at 0.59474%,
      guaranteed by the Company
      Xing Xing Home In Project                       1,573,000    2,178,000
                                                     ----------   ----------
          Total                                      $7,018,000   $7,623,000
                                                     ==========   ==========

NOTE 6 - LONG-TERM LOANS PAYABLE - BANK

Long  term  debt at June 30,  2005  and  December  31,  2004,  consisted  of the
following:

                                                      June 30,    December 31
                                                        2005         2004
                                                     ----------   ----------
                                                     (Unaudited)   (Audited)
                                                     ----------   ----------
Construction  Bank  Zhuque Road  Branch Due
      May 25, 2007,  monthly  interest at
      0.5758%, guaranteed by the Company
      Xing Xing JunJin Yuan Project                  $4,235,000   $4,235,000

Construction  Bank  Zhuque  Road  Branch Due
      July 6, 2007,  monthly  interest at
      0.576%, guaranteed by the Company
      Xing Xing JunJin Yuan Project                   2,420,000           --
                                                     ----------   ----------
          Total                                      $6,655,000   $4,235,000
                                                     ==========   ==========


                                       16
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6 - LONG-TERM LOANS PAYABLE - BANK, (CONTINUED)

As of June 30, 2005, principal payments on long term debt are as follows:


                     2005                            $       --
                     2006                                    --
                     2007                             6,655,000
                                                     ----------
                                                     $6,655,000
                                                     ==========

Total interest  expense on all bank debt for the six months ending June 30, 2005
and 2004 amounted to $863,640 and $437,748, respectively.

NOTE 7 - EARNINGS PER SHARE

The  Company  adopted  Statement  of  Financial  Accounting  Standards  No. 128,
"Earnings per Share" (SFAS 128). SFAS 128 requires the  presentation of earnings
per share (EPS) as Basic EPS and Diluted EPS. There are no  differences  between
Basic and  Diluted EPS for the three  months and six months  ended June 30, 2005
and 2004.

The weighted average numbers of shares used calculate EPS reflect the additional
shares  issue  from the  merger  acquisition  on  September  2004  retroactively
starting January 1, 2003.

NOTE 8 - RETIREMENT BENEFIT PLANS

Regulations  in  the  PRC  require  the  Company  to  contribute  to  a  defined
contribution  retirement  plan for all  permanent  employees.  During 2002,  the
Company  established a retirement  pension  insurance,  unemployment  insurance,
health insurance and house  accumulation  fund for the employees during the term
they are employed.  The amount of those benefits is made at 34% of monthly basic
salaries of the current  employees.  For the six months  ended June 30, 2005 and
2004,  the  Company  made  contributions  in the amount of $22,252  and  $1,387,
respectively.

NOTE 9 - RELATED PARTY TRANSACTIONS AND CONTINGENCIES

During  November  2003,  LFIC  issued  6,840,000  shares of common  stock to the
identical  owners of Newstar in  consideration of a promissory note payable from
the former Newstar owners  totaling  $6,840,000 with a first payment equal to at
least 15% of the total  promissory  note  payable on  December  31, 2003 and the
second  payment of the  remaining  balance  payable on December 31,  2004.  As a
result of this transaction,  the former owners of Newstar exercised control over
LFIC.  The initial  payment of $1,080,000  was made during  November  2003.  The
remaining balance of $5,760,000 was due on December 31, 2004 and is secured by a
pledge of the common stock in LFIC issued to the LFIC  Stockholders.  The former
Newstar owners agreed to extend this payment to June 30, 2006.

NOTE 10 - SHAREHOLDERS' EQUITY

On September 29, 2004, Lanbo entered into the Exchange Agreement with LFIC, LFIC
Stockholders,  and the KRM  Fund.  Under the  Exchange  Agreement,  the  Company
acquired  all of the  outstanding  capital  stock  of LFIC in  exchange  for the
Company's  issuance to LFIC  Stockholders of 19,285,714  shares of the Company's
common stock.


                                       17
<PAGE>

                  LANBO FINANCIAL GROUP, INC. AND SUBSIDIARIES

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 - SHAREHOLDERS' EQUITY, (CONTINUED)

During 2003, the Company  entered into  agreements  with certain  individuals to
render services in connection with a reverse merger  transaction and obtaining a
public  company  listing in the United  States.  On September  27,  2004,  these
agreements were terminated and replaced by a single agreement to render services
in connection  with a reverse  merger  transaction,  obtaining a public  company
listing in the United States,  assistance with obtaining capital, and assistance
with potential  future  acquisition  targets.  Pursuant to the  agreement,  LFIC
agreed to pay a consultant  fee  totaling  $193,600,  a commission  fee of 2% of
total funds raised by LFIC and 39% equity  interest in the United  States public
company.  For the year ended December 31, 2004, the Company has recognized  this
expense as a reverse merger transaction expense.

In  connection  with the  Exchange  Agreement,  the Company  also entered into a
financial   advisory   agreement   with  Keating   Securities,   LLC   ("Keating
Securities"), a registered broker-dealer, under which Keating Securities will be
compensated by the Company for its advisory  services rendered to the Company in
connection with this transaction.  The transaction advisory fee is $150,000. The
financial  advisory  agreement also appoints Keating Securities as the Company's
exclusive  placement  agent for private and public  offerings  of the  Company's
securities  during the one year period  following  the  closing of the  Exchange
Agreement. As of December 31, 2004, the Company has accrued expenses of $115,000
related to this agreement. For the year ended December 31, 2004, the Company has
recognized this expense as a reverse merger transaction expense.

Based on the  Exchange  Agreement,  the  Company  agreed to issue an  additional
13,928,572  shares of the  Company's  common  stock to various  individuals  and
entities  (the "New  Stockholders")  that have  provided  consulting,  legal and
advisory  services  to LFIC in  connection  with the  merger.  The  Company  has
determined  the value of these  shares to be equal to the book  value of the net
value  of the  Company  at  the  date  of  the  Exchange  Agreement,  which  was
approximately  $0.18 per share.  During  November 2004, the Company issued these
shares in accordance  with the  agreement.  As of December 31, 2004, the Company
has recognized a reverse merger transaction expense of $2,534,345.

The Company has not  granted  warrants or options for the six months  ended June
30, 2005 and for the year ended  December 31, 2004 and 2003.  The Company has no
warrants or options outstanding as of June 30, 2005 and December 31, 2004.


                                       18
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

FORWARD-LOOKING STATEMENTS

      This Discussion and Analysis or Plan of Operation contains forward-looking
statements  within the meaning of Section 27A of the  Securities Act and Section
21E of the Exchange Act, including our statements  regarding  increases in sales
and marketing expenditures,  commitment of resources, and reduction in operating
costs and the possible  further  reduction of personnel and suspension of salary
increases and capital expenditures. Any statements contained herein that are not
statements of historical  fact may be deemed to be  forward-looking  statements.
For example,  words such as "may," "will,"  "should,"  "estimates,"  "predicts,"
"potential,"   "continue,"  "strategy,"   "believes,"   "anticipates,"  "plans,"
"expects,"   "intends,"  and  similar   expressions  are  intended  to  identify
forward-looking  statements.  You  should  not  place  undue  reliance  on these
forward-looking  statements.  Actual results could differ  materially from those
anticipated  in these  forward-looking  statements  as a result  of a number  of
factors,  including:  our good faith assumptions being incorrect, our ability to
design and produce products  accepted by customers,  our business expenses being
greater  than   anticipated   due  to  competitive   factors  or   unanticipated
developments,  changes in  political  and  economic  conditions  in the People's
Republic of China, our ability to retain  management and key personnel,  and our
ability to meet our growth  strategies  and the raising of  additional  funds in
connection therewith. The forward-looking statements may also be impacted by the
additional risks faced by us as described in this Report and in our filings with
the  Securities  and  Exchange   Commission  (the  "SEC").  All  forward-looking
statements  included in this Report are based on information  available to us on
the date hereof, and we assume no obligation to update any such  forward-looking
statements.

CRITICAL ACCOUNTING POLICIES

      The  discussion  and analysis of our financial  conditions  and results of
operations is based upon our financial  statements,  which have been prepared in
accordance with generally accepted accounting principles in the United States of
America ("GAAP").  The preparation of these financial  statements requires us to
make  estimates  and  judgments  that  affect  the  reported  amounts of assets,
liabilities,  revenues and expenses, and related disclosure of contingent assets
and liabilities.  See "Summary of Significant  Accounting Policies" in the Notes
to Consolidated  Financial Statements in this Report for our critical accounting
policies.  No  significant  changes in our  critical  accounting  policies  have
occurred since December 31, 2004.

BACKGROUND

      Lanbo  Financial Group Inc.  ("Lanbo,"  "we," "our" or "us"),  through our
wholly owned  subsidiary  New Star Real Estate  Development  Co.  ("Newstar"  or
"Xinxing"), is principally engaged in the construction,  development and sale of
residential  real estate units in the  People's  Republic of China (the "PRC" or
"China"). Newstar originally operated as a state-owned enterprise,  during which
time  it  completed  a  number  of  significant  real  estate   development  and
construction  projects  in Xi'an,  including  the Xinxing  Great Wall  Building,
Xinxing  Residential  Community,  Xinxing Mansion and Xinxing  Merchants Square.
Newstar has a leading position in the regional Xi'an real estate market,  and we
intend to continue investing in the Xi'an market, as well as neighboring areas.

      We intend to use the  strength  of our  Newstar  real  estate  business to
capitalize on the continued privatization trend in residential housing and other
state-owned enterprises in China. We believe that our management's experience in
acquiring  state-owned  enterprises,  coupled  with  greater  access for Chinese
businesses to public capital markets, will provide a competitive advantage.


                                       19
<PAGE>

      Our  company  was  organized  under  the laws of the  State of  Nevada  on
February 11,  1998.  On September  29,  2004,  we entered into a Share  Exchange
Agreement (the "Exchange  Agreement")  with Lanbo Financial  Investment  Company
Group  Limited   ("LFIC"),   all  of  the   stockholders   of  LFIC  (the  "LFIC
Stockholders"),  and  Keating  Reverse  Merger  Fund,  LLC, a  Delaware  limited
liability company ("KRM Fund"). Under the Exchange Agreement, we acquired all of
the  outstanding  capital stock of LFIC in exchange for our issuance to the LFIC
Stockholders and KRM Fund of 19,285,714 shares of our common stock.

      OVERVIEW - ONGOING PROJECTS

      The table below  provides  information on the remaining size and estimated
sales volume of our ongoing real estate  development  projects as of June 30 31,
2005.


-------------------------- ------------------- -----------------------
                                Remaining           Remaining
                               sales area          sales volume
       Name of project       (square meters)    (dollars thousands)
-------------------------- ------------------- -----------------------
    Xinxing Junjingyuan         19,689                     $ 7,788
-------------------------- ------------------- -----------------------
    Xinxing 24G                  6,686                       9,336
-------------------------- ------------------- -----------------------
    Xinxing Gangwan              3,209                       2,051
-------------------------- ------------------- -----------------------
    Other projects               1,284                         426
-------------------------- ------------------- -----------------------
            Total               30,868                      $19,601
-------------------------- ------------------- -----------------------


RESULTS OF  OPERATIONS  FOR THE SIX-MONTH  PERIODS ENDED  JUNE 30, 2005 AND JUNE
30, 2004

      REVENUES. Revenues were $19,601,200 in the six-month period ended June 30,
2005, a decrease of 13.22% from $22,588,025 for the same period in 2004. For the
six-month  period  ended June 30,  2005,  we had  revenues of $7.79  million for
Xinxing  Junjingyuan,  $9.34 million for Xinxing 24G,  $2.05 million for Xinxing
Gangwan and $0.43 million for other projects.  We recognize  revenue when a sale
is consummated,  which only occurs when a project is completed.  The decrease in
sales  compared to the same  period last year was due to several new  regulatory
policies  governing the real estate market issued by the Chinese government this
year. For example,  the People's Bank of China raised mortgage interest rates on
March 16,  2005,  thereby  increasing  the cost of  acquiring  a  residence.  In
addition "The Notice of  Stabilizing  House Price" and "Further  Strengthen  the
Macro  Controlling  on Real Estate  Market" issued by the State Council on March
26, 2005 and April 27,  2005,  respectively,  negatively  impacted  our revenues
because potential buyers are delaying  purchases in anticipation of a decline in
housing prices.

      COST OF SALES. The cost of sales consists of the cost of land development,
construction  and interior design and decoration.  Cost of sales was $11,699,616
in the  six-month  period  ended  June 30,  2005,  a  decrease  of  21.75%  from
$14,952,279  for the same period in 2004. As with revenue,  we recognize cost of
sales when a sale is consummated, which only occurs when a project is completed.
The  decrease  in cost  is due to the  lower  unit  cost of  units  for  Xinxing
Junjingyuan and Xinxing 24G sold in this quarter.

      GROSS PROFIT.  Gross profit was  $7,901,584 in the six-month  period ended
June 30, 2005, an increase of 3.48% over $7,635,746 for the same period in 2004.
The  increase  in  gross  profit  is due to the  drop  of  our  cost  of  sales,
particularly Xinxing 24G, which were all from businesses with perceived location
advantages.  The higher  sales prices led to a higher  gross  profit.  The gross
profit of sales for the  six-month  period  ended June 30, 2005 from Xinxing 24G
was $4.83 million and $2.03 million from Xinxing Junjingyuan.

      NET INCOME.  Net income was $4,513,766 in the six-month  period ended June
30, 2005, an increase of 5.56% from  $4,275,991 for the same period in 2004. The
increase  in net  income  is  mainly  due to the  decrease  in the cost of sales
between the two periods.

      SELLING,  GENERAL  AND  ADMINISTRATIVE  EXPENSES.  SG&A  expenses  consist
primarily of advertising cost for sales,  management overhead and general office
expenses.  SG&A expenses were $1,091,529 in the six-month  period ended June 30,
2005,  an  increase of 31.32% over  $831,184  for the same period in 2004.  SG&A
expenses  have  increased  since we became a U.S.  publicly  traded  company  in
September  2004.  The increased  expenses are mainly due to legal,  auditing and
consulting  expenses in connection with our public reporting  company status and
U.S. office. In addition,  we incurred $280,000 in marketing expenses related to
the Xinxing-24G project.


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<PAGE>

INCOME TAXES

      Provisions  of  $2,480,122  for taxes have been recorded for the six-month
period ended June 30, 2005.

LIQUIDITY AND CAPITAL RESOURCES

      As of June 30,  2005,  we had  $206,820 of cash and cash  equivalents  and
$(15,281,831)  of working  capital as compared to  $199,956  and  $(21,335,533),
respectively,  at December  31,  2004.  We believe  that we  currently  generate
sufficient cash from operating activities to support our operations.

      Newstar is  currently  developing  several  projects  which  will  require
financing.  First, in connection with our Xinxing Junjingyuan  project,  Newstar
has entered into a Loan  Agreement  with  Construction  Bank. The Loan Agreement
provides  for a loan of RMB 35 million from  Construction  Bank to be applied to
the construction investment of our Xinxing Junjingyuan project. The loan, funded
on December 7, 2004, has a term of 30 months and bears a fixed monthly  interest
rate of  0.576%,  calculated  on a daily  basis.  The loan is subject to a fixed
monthly  interest  rate  of  1.152%  if it is  not  used  for  the  construction
investment of the Xinxing  Junjingyuan project and a fixed monthly interest rate
of 0.864% on overdue amounts.  We also have a second loan with Construction Bank
for RMB 20 million on the same terms as the RMB 35 million loan described above.
The loans are  secured by the  property  of and work in  progress on the Xinxing
Junjingyuan project.

      As of June 30, 2005,  we had invested  approximately  $27.6 million in the
Xinxing  Junjingyuan  project.  We have already  invested  $3.98  million in the
Xinxing 24G project, and we will require  approximately $7.50 million to finance
our acquisition of Xinxing 24G . We will need approximately $2.2 million for the
project of the Tangdu  Machine  Factory land. We believe that we will be able to
obtain adequate funding sources to support these projects.

      With  economic  growth,   the  Chinese   government  has  implemented  new
investment  policies that allow for certain  credit lines to finance real estate
projects, allow certain enterprises to use their equity as collateral to finance
projects and encourage  companies to attract  foreign  capital.  Land developers
will have alternative ways of financing real estate development. We believe that
we will be able to take advantage of some of these  opportunities in the future.
Additionally,  our clients are  increasingly  financing their purchases  through
mortgages  and  installment  payment  plans with  favorable  low interest  rates
financed  by banks,  and are  borrowing  from the Chinese  government's  housing
reserve funds.

OFF-BALANCE SHEET ARRANGEMENT

      We do not have any off-balance sheet arrangements.

ITEM 3. CONTROLS AND PROCEDURES

      We maintain  "disclosure controls and procedures," as such term is defined
under Exchange Act Rule 13a-15(e),  that are designed to ensure that information
required to be disclosed  in our  Exchange  Act reports is recorded,  processed,
summarized,  and reported  within the time periods  specified in the SEC's rules
and forms,  and that such  information is accumulated  and  communicated  to our
management,  including our Chief Executive Officer and Chief Financial  Officer,
as appropriate,  to allow timely decisions  regarding required  disclosures.  In
designing and evaluating the disclosure controls and procedures,  our management
recognized  that any controls and  procedures,  no matter how well  designed and
operated, can provide only reasonable assurance of achieving the desired control
objectives  and in  reaching a  reasonable  level of  assurance  our  management
necessarily  was required to apply its judgment in evaluating  the  cost-benefit
relationship  of  possible  controls  and  procedures.  We have  carried  out an
evaluation  under the supervision and with the  participation of our management,
including  our Chief  Executive  Officer  and Chief  Financial  Officer,  of the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures as of June 30, 2005.  Based upon their  evaluation and subject to the
foregoing,  the Chief Executive  Officer and Chief Financial  Officer  concluded
that as of June 30, 2005 our disclosure  controls and procedures  were effective
at the reasonable assurance level in ensuring that material information relating
to us is made known to the Chief Executive  Officer and Chief Financial  Officer
by others  within our  company  during the period in which this report was being
prepared.


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<PAGE>

      There were no changes in our internal  controls or in other factors during
the most recent quarter that has materially affected, or is reasonably likely to
materially affect, our internal controls over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

         We are not currently a party to any pending material legal proceeding.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS.

         Not applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

         Not applicable.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         Not applicable.

ITEM 5.  OTHER INFORMATION.

         Not applicable.

ITEM 6.  EXHIBITS.

            31.1  Certification of the Principal  Executive  Officer pursuant to
                  Section 302 of the Sarbanes-Oxley Act of 2002.

            31.2  Certification of the Principal  Financial  Officer pursuant to
                  Section 302 of the Sarbanes-Oxley Act of 2002.

            32.1  Certification of the Principal  Executive  Officer pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002.

            32.2  Certification of the Principal  Financial  Officer pursuant to
                  Section 906 of the Sarbanes-Oxley Act of 2002.


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<PAGE>

                                   SIGNATURES

      In accordance  with Section 13 or 15(d) of the Securities  Exchange Act of
1934,  the  Registrant  caused  this  report to be  signed on its  behalf by the
undersigned, thereunto duly authorized.

                                  LANBO FINANCIAL GROUP, INC.
                                  (Registrant)

Date:  August 15, 2005            By:  /s/ Pingji Lu
                                     -------------------------------------------
                                     Name:  Pingji Lu
                                     Title: Chairman and Chief Executive Officer
                                           (Principal Executive Officer)

Date:  August 15, 2005            By:  /s/ Yulong Wan
                                     -------------------------------------------
                                     Name:  Yulong Wan
                                     Title: Chief Financial Officer
                                           (Principal Financial Officer)


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