UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-K





(Mark
One)




x
              ANNUAL
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934




For
the fiscal year ended December 31, 2008




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




For the
transition period from ___________ to ___________




Commission
File No. 000-50818




ARTCRAFT
V, INC.


(Name
of small business issuer in its charter)




DELAWARE
                26-0744863(State
      or other jurisdiction of
                  incorporation
      or organization)
                (IRS
      Employer Identification No.)Room
      1131, XianKeJiDian Building
                  BaGuaSi
      Road Futian District
                  Shenzhen
      City, China
                518029(Address
      of principal executive offices)
                (Zip
      Code)




011-86775
23990959


(Registrant’s
telephone number, including area code)




Securities
      registered under Section 12(b) of the Exchange Act:Title
      of each class registered:
              Name
      of each exchange on which registered:None
              NoneSecurities
      registered under Section 12(g) of the Exchange Act:Common
      Stock, par value $0.001
                (Title
      of class)




Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in
Rule 405 of the Securities Act.       
Yes o    No x




Indicate
by check mark if the registrant is not required to file reports pursuant to
Section 13 or Section 15(d) of the Act.    Yes o     No x




Indicate
by check mark whether the registrant (1) has 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 registrant 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 if disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not
be contained, to the best of registrant’s knowledge, in definitive proxy or
information statements incorporated by reference Part III of this Form 10-K or
any amendment to this Form 10-K.   x





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











Large
      accelerated filer
            o
            
            Accelerated
      filer
            oNon-accelerated
      filer
              (Do
      not check if a smaller reporting company)
            o
            
            Smaller
      reporting company
            x




Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Act). Yes x   No
o




Issuer's
revenues for its most recent fiscal year, December 31, 2008, were $ 0.





The
aggregate market value of the registrant’s voting common stock held by
non-affiliates as of April 13, 2008 based upon the closing price reported for
such date on the OTC Bulletin Board was US$ 0.





As of
April 13, 2009, the registrant had 10,250,000 shares of its common stock
outstanding.





Documents Incorporated by
Reference: None.














TABLE
OF CONTENTS





PAGEPART
      IITEM
      1.
              
              Business
              
              1ITEM
      1A.
              
              Risk Factors
              
              1ITEM
      2.
              
              Properties
              
              2ITEM
      3.
              
              Legal Proceedings
              
              2ITEM
      4.
              
              Submission of Matters to a Vote of
      Security
    Holders
              
              2PART
      IIITEM
      5.
              
              Market for Registrant’s Common
      Equity, Related Stockholder Matters and Issuer Purchasesof Equity Securities
              
              2ITEM
      6.
              
              Selected Financial Data
              
              3ITEM
      7.
              
              Management’s Discussion
      and Analysis of Financial Condition and Results of
      Operation
              
              3ITEM
      7A.
              
              Quantitative
      and Qualitative Disclosures About Market Risk
              
              5ITEM
      8.
              
              Financial Statements and Supplementary
      Data
              
              5ITEM
      9.
              
              Changes in and Disagreements with Accountants on
      Accounting and Financial Disclosure
              
              5ITEM
      9A(T).
              
              Controls and Procedures
              
              5PART
      IIIITEM
      10.
              
              Directors, Executive Officers and Corporate
      Governance
              
              6ITEM
      11.
              
              Executive Compensation
              
              7ITEM
      12.
              
              Security Ownership of Certain Beneficial Owners
      and Management and Related Stockholder Matters
              
              8ITEM
      13.
              
              Certain Relationships and Related Transactions,
      and Director Independence
              
              8ITEM
      14.
              
              Principal Accounting Fees and Services
              
              8PART
      IVITEM
      15.
              
              Exhibits, Financial Statement
      Schedules
              
              9SIGNATURES














PART
I





ITEM 1.      BUSINESS




Artcraft
V, Inc. was incorporated under the laws of the State of Delaware on June 7,
2004. On November 7, 2005, the Company entered into an Exchange Agreement with
Top Interest International Limited (“Top Interest”). Top Interest owned 70%
equity interest of Shenzhen Xin Kai Yuan Info Consult Co., Ltd. (“188info.com”)
which operates 188info.com, a professional information searching platform that
is engaged in the business of providing information search engine, online web
application and image designing, digital network service, online market
research, online promotion and advertising services, and query searches for both
individuals and businesses. Top Interest was incorporated under the laws of the
British Virgin Islands. 188info.com was legally established under the laws of
the People’s Republic of China. When used in these notes, the terms “Company”,
“we”, “our” or “us” mean Artcraft V, Inc. and its subsidiary.
  Pursuant
to the Stock Purchase and Share Exchange Agreement, the Company purchased all of
the issued and outstanding shares of Top Interest from the shareholders for
issuance of a total of 10,000,000 shares of the Company’s common stock, or
approximately 99% of the total issued and outstanding shares.  This
transaction closed on November 7, 2005 and has been accounted for as a reverse
acquisition.
  We
operated our business through our wholly owned subsidiary, Top Interest
International Limited, which owned a 70% interest in 188info.com, which operates
"188Info" service in the PRC.
  On
September 22, 2008 the Company’s board of directors agreed to sell the Company’s
70% interest in 188info.com in order to protect its shareholders’ interest as
“188info.com” continues to generate operating losses and negative cash flow. The
Company entered into an agreement with Shenzhen Dingyi Investment Consulting
Company Co., Ltd on September 22, 2008 to sell them its 70% interest in
188info.com for $0.15 (RMB1) and the assumption of all assets and liabilities of
188info.com. The transaction was completed and approved by the PRC on October
17, 2008.




Due to
the sale of 188info.com we do not expect to generate any revenues over the next
twelve months. Our principal business objective for the next twelve months will
be to seek, investigate and, if such investigation warrants, engage in a
business combination with a private entity whose business presents an
opportunity for our shareholders.




During
the next twelve months we anticipate incurring costs related to filing of
Exchange Act reports, general administrative costs and costs relating to
consummating an acquisition. We believe we will be able to meet these costs
through  loans by  our stockholders, management or other
outside investors. We have no specific plans, understandings or agreements with
respect to the raising of such funds, and we may seek to raise the required
capital by the issuance of equity or debt securities or by other means. Since we
have no such arrangements or plans currently in effect, our inability to raise
funds for the consummation of an acquisition may have a severe negative impact
on our ability to become a viable company.




In the
future, we will attempt to acquire other assets or business operations that will
maximize shareholder value. No specific assets or businesses have been
definitively identified and there is no certainty that any such assets or
business will be identified or any transactions will be
consummated.




We expect
that we will need to raise funds in order to effectuate our business plan. We
will seek to establish or acquire businesses or assets with funds raised either
via the issuance of shares or debt. There can be no assurance that additional
capital will be available to us. We may seek to raise the required capital by
other means. We may have to issue debt or equity or enter into a strategic
arrangement with a third party. We currently have no agreements, arrangements or
understandings with any person to obtain funds through bank loans, lines of
credit or any other sources. Since we have no such arrangements or plans
currently in effect, our inability to raise funds will have a severe negative
impact on our ability to remain a viable company. In pursuing the foregoing
goals, we may seek to expand or change the composition of the Board or make
changes to our current capital structure, including issuing additional shares or
debt and adopting a stock option plan.





Employees





Currently,
the Company has no employees.




ITEM 1A.   RISK FACTORS





Not
applicable because we are a smaller reporting company.






-1-





ITEM 2.      PROPERTIES




The
Company’s corporate office is located at Room 1131, XianKeJiDian Building,
BaGuaSi Road, Futian District, Shenzhen City, China 518029.





ITEM 3.     LEGAL PROCEEDINGS





There are
no pending legal proceedings to which the Company is a party or in which any
director, officer or affiliate of the Company, any owner of record or
beneficially of more than 5% of any class of voting securities of the Company,
or security holder is a party adverse to the Company or has a material interest
adverse to the Company. The Company’s property is not the subject of any pending
legal proceedings.





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





No matter
was submitted to a vote of our security holders through the solicitation of
proxies or otherwise during the fiscal year ended December 31,
2008.





PART
II





ITEM
5.   MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES




Market
Information




Our
common stock was approved for quotation on the OTC Bulletin Board, our stock
symbol is “AFTV”. There is currently no quotation for our shares of common
stock.




Holders




As of
April 13, 2009, we had 50 shareholders holding an aggregate of 10,250,000 shares
of our common stock




Dividends




We have
never paid a cash dividend on our common stock. It is our present policy to
retain earnings, if any, to finance the development and growth of our business.
Accordingly, we do not anticipate that cash dividends will be paid until our
earnings and financial condition justify such dividends. There can be no
assurance that we can achieve such earnings.




Recent Sales of Unregistered
Securities




None.




Equity Compensation Plan
Information




The
following table sets forth certain information as of April 13, 2009, with
respect to compensation plans under which our equity securities are authorized
for issuance:




(a)
            (b)
            (c)_________________
            _________________
            _________________Number
      of securities to be issued upon exercise of outstanding options, warrants
      and rights
            Weighted-average
      exercise price of outstanding options, warrants and rights
            Number
      of securities remaining available for future issuance under equity
      compensation plans (excluding securities reflected in column
      (a))Equity
      compensation
            NonePlans
      approved bySecurity
      holdersEquity
      compensation
            NonePlans
      not approvedBy
      security holdersTotal







-2-







ITEM
6.      SELECTED FIANANCIAL DATA




Not
applicable because we are a smaller reporting company.





ITEM 7.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS.





The
following discussion should be read in conjunction with the Consolidated
Financial Statements and Notes thereto appearing elsewhere in this Form 10-K.
The following discussion contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 relating to future events or our future performance. 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
prospectus. 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.





BUSINESS
OVERVIEW




Artcraft
V, Inc. was incorporated under the laws of the State of Delaware on June 7,
2004. On November 7, 2005, the Company entered into an Exchange Agreement with
Top Interest International Limited (“Top Interest”). Top Interest owned 70%
equity interest of Shenzhen Xin Kai Yuan Info Consult Co., Ltd. (“188info.com”)
which operates 188info.com, a professional information searching platform that
is engaged in the business of providing information search engine, online web
application and image designing, digital network service, online market
research, online promotion and advertising services, and query searches for both
individuals and businesses. Top Interest was incorporated under the laws of the
British Virgin Islands. 188info.com was legally established under the laws of
the People’s Republic of China. When used in these notes, the terms “Company”,
“we”, “our” or “us” mean Artcraft V, Inc. and its subsidiary.
  Pursuant
to the Stock Purchase and Share Exchange Agreement, the Company purchased all of
the issued and outstanding shares of Top Interest from the shareholders for
issuance of a total of 10,000,000 shares of the Company’s common stock, or
approximately 99% of the total issued and outstanding shares. This transaction
closed on November 7, 2005 and has been accounted for as a reverse
acquisition.
  We
operated our business through our wholly owned subsidiary, Top Interest
International Limited, which owned a 70% interest in 188info.com, which operates
"188Info" service in the PRC.
  On
September 22, 2008 the Company’s board of directors agreed to sell the Company’s
70% interest in 188info.com in order to protect its shareholders’ interest as
“188info.com” continues to generate operating losses and negative cash flow. The
Company entered into an agreement with Shenzhen Dingyi Investment Consulting
Company Co., Ltd on September 22, 2008 to sell them its 70% interest in
188info.com for $0.15 (RMB1) and the assumption of all assets and liabilities of
188info.com. The transaction was completed and approved by the PRC on October
17, 2008.




Due to
the sale of 188info.com we do not expect to generate any revenues over the next
twelve months. Our principal business objective for the next twelve months will
be to seek, investigate and, if such investigation warrants, engage in a
business combination with a private entity whose business presents an
opportunity for our shareholders.




During
the next twelve months we anticipate incurring costs related to filing of
Exchange Act reports, general administrative costs and costs relating to
consummating an acquisition. We believe we will be able to meet these costs
through  loans by  our stockholders, management or other
outside investors. We have no specific plans, understandings or agreements with
respect to the raising of such funds, and we may seek to raise the required
capital by the issuance of equity or debt securities or by other means. Since we
have no such arrangements or plans currently in effect, our inability to raise
funds for the consummation of an acquisition may have a severe negative impact
on our ability to become a viable company.




In the
future, we will attempt to acquire other assets or business operations that will
maximize shareholder value. No specific assets or businesses have been
definitively identified and there is no certainty that any such assets or
business will be identified or any transactions will be
consummated.






-3-





We expect
that we will need to raise funds in order to effectuate our business plan. We
will seek to establish or acquire businesses or assets with funds raised either
via the issuance of shares or debt. There can be no assurance that additional
capital will be available to us. We may seek to raise the required capital by
other means. We may have to issue debt or equity or enter into a strategic
arrangement with a third party. We currently have no agreements, arrangements or
understandings with any person to obtain funds through bank loans, lines of
credit or any other sources. Since we have no such arrangements or plans
currently in effect, our inability to raise funds will have a severe negative
impact on our ability to remain a viable company. In pursuing the foregoing
goals, we may seek to expand or change the composition of the Board or make
changes to our current capital structure, including issuing additional shares or
debt and adopting a stock option plan.





Employees





Currently,
the Company has no employees.




RESULTS OF OPERATIONS FOR
THE YEAR S ENDED DECEMBER 31, 2008 AND 2007





The
following table presents certain consolidated statement of operations
information for the years ended December 31, 2008 and 2007. The discussion
following the table is based on these results. Certain columns may not add due
to rounding.




Years
      ended December 31,2008
                  
                  
                  2007Revenue,
      net
                  
                  $
                  -
                  
                  
                  $
                  -Operating
      Expenses:General
      and administrative expenses
                  
                  
                  75,930
                  
                  
                  
                  87,002Loss
      from operations
                  
                  
                  (75,930
                  )
                  
                  
                  (87,002
                  )Discontinued
      OperationLoss
      from Operations
                  
                  
                  (7,548
                  )
                  
                  
                  (131,494
                  )Loss
      on disposal
                  
                  
                  (89,004
                  )
                  
                  
                  -Loss
      on discontinued operations
                  
                  
                  (96,552
                  )
                  
                  
                  (131,494
                  )Net
      loss
                  
                  
                  
                  (172,482
                  )
                  
                  
                  (218,496
                  )Other
      comprehensive income (loss)Foreign
      currency translation
                  
                  
                  (6,673
                  )
                  
                  
                  3,092Comprehensive
      loss
                  
                  
                  (179,155
                  )
                  
                  
                  (215,404
                  )




Operating
Expense


General
and administrative expenses for the year ended December 31, 2008 totaled $75,930
compared to $87,002 for the year ended December 31, 2007.  The
decrease in operating expense of $11,072 or approximately 13% was due to lower
operation fees related to SEC filing in the U.S. stock market.





Income
(Loss) from Operations


Loss from
operations for the year ended December 31, 2008 totaled $75,930 compared to
$87,002 for the year ended December 31, 2007.  The decrease in
operating expense of $11,072 or approximately 13% was due to lower operation
fees related to SEC filing in the U.S. stock market.





Discontinued
Operation





Loss from
discontinued operations for the year ended December 31, 2008 totaled $96,552
compared to $131,494 for the year ended December 31, 2007, a decrease of
$34,942. The decrease in loss from discontinued operations is due to the fact
the operation was sold in October and we only recognized 10 months of loss
rather than the full year.





Net
Income (Loss)


Net loss
for the year ended December 31, 2008 totaled $(172,482) compared to $(218,496)
for the year ended December 31, 2007, a decrease of $46,014 or approximately
21%. The decrease in net loss was primarily due to the reasons described
above.






-4-




LIQUIDTY
AND CAPITAL RESOURCES




Cash has
historically been generated from operations. Operations and liquidity needs are
funded primarily through cash flows from operations and short-term borrowings.
Cash and cash equivalents were $91 at December 31, 2008 and current assets
totaled $91 at December 31, 2008. The Company's total current liabilities were
$411,129 at December 31, 2008. Working capital at December 31, 2008 was
$(411,038). During the year ended December 31, 2008, net cash used in operating
activities was $(99,240).





We will
continue to evaluate alternative sources of capital to meet our growth
requirements, including other asset or debt financing, issuing equity securities
and entering into other financing arrangements. There can be no assurance,
however, that any of the contemplated financing arrangements described herein
will be available and, if available, can be obtained on terms favorable to
us.




Our
operations and short term financing does not currently meet our cash
needs.  We believe we will be able to generate revenues from sales and
raise capital through private placement offerings of its equity securities to
provide the necessary cash flow to meet anticipated working capital
requirements.  Our actual working capital needs for the long and short
term will depend upon numerous factors, including our operating results,
competition, and the availability of credit facilities, none of which can be
predicted with certainty.  Our future expansion will depend on
operating results and will be limited by its ability to enter into financings
and raise capital.




Working Capital
Requirements




Historically
operations and short term financing have been sufficient to meet our cash needs.
We believe that we will be able to generate revenues from sales and raise
capital through private placement offerings of its equity securities to provide
the necessary cash flow to meet anticipated working capital requirements.
However, our actual working capital needs for the long and short term will
depend upon numerous factors, including operating results, competition, and the
availability of credit facilities, none of which can be predicted with
certainty. Future expansion will be limited by the availability of financing
products and raising capital.




OFF-BALANCE
SHEET ARRANGEMENTS




We have
never entered into any off-balance sheet financing arrangements and have never
established any special purpose entities. We have not guaranteed any debt or
commitments of other entities or entered into any options on non-financial
assets.




ITEM 7A.  QUANTITIATIVE AND QUALITATIVE DISCLOUSURES ABOUT
MARKET RISK





Not
applicable because we are a smaller reporting company.




ITEM 8.      FINANCIAL STATEMENTS AND
SUPPLEMENTARY DATA.




The
Company's Financial Statements and Notes to Financial Statements are attached
hereto beginning with page F-1.





ITEM 9.     CHANGES IN AND DISAGREEMENTS WITH
ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE





Our
accountant is Kabani & Company, Inc. of Los Angeles, California, a certified
public accountant. We do not presently intend to change accountant. At no time
have there been any disagreements with such accountants regarding any matter of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedure.





ITEM
9A(T).  CONTROLS AND PROCEDURES





Evaluation
of Disclosure Controls and Procedures





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.




-5-




Management's
Annual Report on Internal Control Over Financial Reporting.





The
management of the Company is responsible for establishing and maintaining
adequate internal control over financial reporting for the
Company.  Our internal control system was designed to, in general,
provide reasonable assurance to the Company’s management and board regarding the
preparation and fair presentation of published financial statements, but because
of its inherent limitations, internal control over financial reporting may not
prevent or detect misstatements.  Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.





Our
management assessed the effectiveness of the Company’s internal control over
financial reporting as of December 31, 2008.  The framework used by
management in making that assessment was the criteria set forth in the document
entitled “ Internal Control – Integrated Framework” issued by the Committee of
Sponsoring Organizations of the Treadway Commission. Based on that assessment,
our management has determined that as of December 31, 2008, the Company’s
internal control over financial reporting was effective for the purposes for
which it is intended.





This
annual report does not include an attestation report of the Company’s registered
public accounting firm regarding internal control over financial reporting.
Management's report was not subject to attestation by the Company's registered
public accounting firm pursuant to temporary rules of the Securities and
Exchange Commission that permit the Company to provide only management's report
in this annual report.




Changes
in Internal Control over Financial Reporting





No change
in our system of internal control over financial reporting occurred during the
period covered by this report, fourth quarter of the fiscal year ended December
31, 2008 that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.





PART
III





ITEM
10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE
GOVERNANCE




The
following table sets forth information about our executive officers and
directors as of April 13, 2009.




NAME
              AGE
              POSITIONLi
      Te Xiao
              31
              President,
      Chief Executive Officer, Chief Financial Officer, Secretary and
      Director




The above
listed officer and director will remain in office until the next annual meeting
of our stockholders, and until their successors have been duly elected and
qualified. There are no agreements with respect to the election of Directors. We
have not compensated our Director for service on our Board of Directors, any
committee thereof, or reimbursed for expenses incurred for attendance at
meetings of our Board of Directors and/or any committee of our Board of
Directors. Officers are appointed annually by our Board of Directors and each
Executive Officer serves at the discretion of our Board of Directors. We do not
have any standing committees.




Li Te Xiao was appointed as
our Chief Executive Officer, Chief Financial Officer, President, Secretary and
Director effective December 20, 2004. Li Te Xiao has been the General Manager
for Shenzhen E'Jinie Technology Development Co., Ltd from 2001 to October, 2004.
From 1999 to 2001, he also worked as the General Manager for Shun De Taiwan Fan
Sai Te Lamp Manufacture, in Shun De, Guang Dong, China. Li Te Xiao Graduated
with a bachelor degree in 1997 from Hubei Province Normal School with a major in
English.





Involvement in Certain Legal
Proceedings





To our
knowledge, during the past five (5) years, none of our directors, executive
officers, promoters, control persons, or nominees has been:




§
            the
      subject of any bankruptcy petition filed by or against any business of
      which such person was a general partner or executive officer either at the
      time of the bankruptcy or within two years prior to that
    time;




§
            convicted
      in a criminal proceeding or is subject to a pending criminal proceeding
      (excluding traffic violations and other minor
  offenses);






-6-




§
            subject
      to any order, judgment, or decree, not subsequently reversed, suspended or
      vacated, of any court of competent jurisdiction, permanently or
      temporarily enjoining, barring, suspending or otherwise limiting his
      involvement in any type of business, securities or banking activities;
      or




§
            found
      by a court of competent jurisdiction (in a civil action), the Commission
      or the Commodity Futures Trading Commission to have violated a federal or
      state securities or commodities
law.




Compliance
with Section 16(a) of the Securities Exchange Act of 1934




The
Company knows of no person, who at any time during the period from January 1,
2003, to the present, was a director, officer, beneficial owner of more than ten
percent of any class of equity securities of the Company (a "Reporting Person"),
that failed to file on a timely basis any reports required to be furnished
pursuant to Section 16(a). Based upon a review of Forms 3, 4 and 5 furnished to
the Company under Rule 16(a)-3(d) the Company knows of no Reporting Person that
failed to file the required reports within the required time
limits.





Auditors;
Code of Ethics; Financial Expert





We do not
have an audit committee financial expert.  We do not have an audit
committee financial expert because we believe the cost related to retaining a
financial expert at this time is prohibitive.  Furthermore, because we
are only beginning our commercial operations, at the present time, we believe
the services of a financial expert are not warranted.




Potential
Conflicts of Interest





We are
not aware of any current or potential conflicts of interest with any of our
executives or directors.





ITEM 11.   EXECUTIVE COMPENSATION





Compensation of Executive
Officers




To date,
we have not entered into any employment agreements with our officers and do not
presently intend to do so. Our officer does not receive any compensation for his
services rendered and has not received such compensation in the past, and is not
accruing any compensation pursuant to any agreement with us.




No
retirement, pension, profit sharing, stock option or insurance programs or other
similar programs have been adopted by us for the benefit of our
employees.




The table
below summarizes all compensation awarded to, earned by, or paid to our
executive officers by any person for all services rendered in all capacities to
us from the date of our inception until the year ended December 31,
2008.




SUMMARY
COMPENSATION TABLE




Annual
      CompensationName
      and Principal Position
                    Year
                    
                    Salary
                    
                    
                    Bonus
                    
                    
                    Stock
      Awards
                      ($)
                    
                    
                    Option
      Awards
                      ($)
                    
                    
                    Non-Equity
      Incentive Plan Compensation ($)
                    
                    
                    Non-Qualified
      Deferred Compensation Earnings
                      ($)
                    
                    
                    All
      Other Compensation
                      ($)
                    
                    
                    Totals
                      ($)Li
      Te Xiao President Chief Executive
                      Officer
      and Director2008
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    02007
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    0
                    
                    
                    $
                    0




Our
shareholders may in the future determine to pay Directors’ fees and reimburse
Directors for expenses related to their activities




Option Grants
Table.There were
no individual grants of stock options to purchase our common stock made to the
executive officer named in the Summary Compensation Table through April 13,
2009.




Aggregated
Option Exercises and Fiscal Year-End Option Value Table.There were no stock options
exercised during period ending March __, 2009 by the executive officer named in
the Summary Compensation Table.




Long-Term Incentive Plan
(“LTIP”) Awards Table.There were no awards made to a named executive officer in the last
completed fiscal year under any LTIP






-7-
 
  Stock
Options
  We do not
have, nor do we anticipate adopting a stock option plan. Additionally, we do not
have any retirement, pension, profit sharing, stock option or other similar
programs.




Employment
Agreements




We do not
have any employment agreements with our officer or director
currently.





ITEM 12.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT





The
following table sets forth certain information regarding the ownership of our
capital stock, as of March __, 2009, for: (i) each director; (ii) each person
who is known to us to be the beneficial owner of more than 5%of our outstanding
common stock; (iii) each of our executive officers named in the Summary
Compensation Table; and (iv) all of our current executive officers and directors
of as a group. Except as otherwise indicated in the footnotes, all information
with respect to share ownership and voting and investment power has been
furnished to us by the persons listed. Except as otherwise indicated in the
footnotes, each person listed has sole voting power with respect to the shares
shown as beneficially owned.




NAME
      AND ADDRESS OF
                  BENEFICIAL
      OWNER
                AMOUNT
      AND NATURE OF
                  BENEFICIAL
      OWNERSHIP
                PERCENT
      OF
                  OUTSTANDING
      SHARES (1)5%
      STOCKHOLDERS -Zu
      Da Xu
                  Baimang
      Checking Station
                  1st
      Building South
                  Mountain
      Xili Town,
                  Shenzhen,
      China
                10,000,000
                97.56%Li
      Te Xiao
                  Baimang
      Checking Station
                  1st
      Building South
                  Mountain
      Xili Town,
                  Shenzhen,
      China
                36,000
                0.35%Officers
      and Directors as a Group (1 person)
                36,000
                0.35%
  (1) Based
on 10,250,000 shares of common stock issued and outstanding as of April 13,
2009.




Securities
authorized for issuance under equity compensation plans.





We have
no equity compensation plans





ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
DIRECTOR INDEPENDENCE




None.




ITEM 14.   PRINCIPAL ACCOUNTING FEES AND
SERVICES




Audit
Fees




For the
Company’s fiscal years ended December 31, 2008 and 2007, we were billed
approximately $ 27,500 and $27, 500 for professional services rendered for the
audit and review of our financial statements.




Audit
Related Fees




There
were no fees for audit related services for the years ended December 31, 2008
and 2007.








-8-




Tax
Fees




For the
Company’s fiscal years ended December 31, 2008 and 2007, we were not billed for
professional services rendered for tax compliance, tax advice, and tax
planning




All
Other Fees





The
Company did not incur any other fees related to services rendered by our
principal accountant for the fiscal years ended December 31, 2008 and
2007.




Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.





Effective
May 6, 2003, the Securities and Exchange Commission adopted rules that require
that before our auditor is engaged by us to render any auditing or permitted
non-audit related service, the engagement be:





-
            approved
      by our audit committee; or





-
            entered
      into pursuant to pre-approval policies and procedures established by the
      audit committee, provided the policies and procedures are detailed as to
      the particular  service,  the  audit
      committee is informed of each service, and such policies and procedures do
      not include delegation of the audit committee's responsibilities to
      management.





We do not
have an audit committee.  Our entire board of directors pre-approves
all services provided by our independent auditors. The pre-approval process has
just been implemented in response to the new rules. Therefore, our board of
directors does  not  have  records
of  what percentage of the above fees were
pre-approved.  However, all of the above services and fees were
reviewed and approved by the entire board of directors either before or after
the respective services were rendered.







PART
IV





ITEM 15.   EXHIBITS, FINANCIAL STATEMENT
SCHEDULES.




a)
Documents filed as part of this Annual Report




1.
Financial Statements




2.
Financial Statement Schedules




3.
Exhibits





Exhibit No.
                Title
      of Document10.1
                Share
      Transfer Agreement between Shenzhen Xin Kai Yuan Info Consul Co., Ltd. and
      Shenzhen Dingyi Investment Consulting Company Co., Ltd. ,
      dated  September 22, 2008.31.1
                Rule
      13a-14(a)/ 15d-14(a) Certification of Chief Executive
    Officer31.2
                Rule
      13a-14(a)/ 15d-14(a) Certification of Chief Financial
    Officer32.1
                Section
      1350 Certification of Chief Executive Officer32.2
                Section
      1350 Certification of Chief Financial
Officer






-9-








SIGNATURES





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







ARTCRAFT
      V, INC.Date:
      April 14, 2009
                  By:
                  /s/ LI
      Te XiaoLi
      Te Xiao, President, Chief Executive Officer,
                    Chief
      Financial Officer and Director





Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.




Signature
                  
                  Title
                  
                  Date/s/ Li
      Te Xiao
                  
                  President,
      Chief Executive Officer,
                  
                  April
      14, 2009Li
      Te Xiao
                  
                  Chief Financial Officer and
    Director











-10-






ARTCRAFT
V, INC. AND SUBSIDIARY







CONSOLIDATED
FINANCIAL STATEMENTS





DECEMBER
31, 2008























TABLE
OF CONTENTS













Report of
      Independent Registered Public Accounting Firm
              F2Consolidated Balance
      Sheets
              F3Consolidated
      Statements of Operations
              F4Consolidated
      Statements of Cash Flows
              F5Consolidated
      Statements of Stockholders’ Deficit
              F6Notes to
      Consolidated Financial Statements
              F7-F17










F1




Report
of Independent Registered Public Accounting Firm






Board of
Directors and Stockholders of


Artcraft
V Inc. and Subsidiary





We have
audited the accompanying consolidated balance sheet of Artcraft V Inc. and
Subsidiary (a Delaware corporation) as of December 31, 2008 and 2007, and the
related consolidated statements of operations, stockholders' deficit, and cash
flows for the two years period ended December 31, 2008. These consolidated
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits.




We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall consolidated financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.




In our
opinion, the consolidated financial statements referred to above present fairly,
in all material respects, the consolidated financial position of Artcraft V Inc.
and Subsidiary as of December 31, 2008, and the consolidated results of their
operations, stockholders' deficit and their consolidated cash flows for the two
years period ended December 31, 2008, in conformity with U.S. generally accepted
accounting principles.




The
Company’s consolidated financial statements are prepared using the generally
accepted accounting principles applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of
business. The company has accumulated deficit of $486,447 at December 31, 2008
including a net loss of $172,482 during the year ended December 31, 2008. These
factors as discussed in Note 10 to the financial statements raise substantial
doubt about the Company’s ability to continue as a going concern. Management’s
plans in regard to these matters are also described in Note 10. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.




/s/
Kabani & Company, Inc.


Certified
Public Accountants





Los
Angeles, California


March 11,
2009






F2


ARTCRAFT
      V, INC. AND SUBSIDIARIESCONSOLIDATED
      BALANCE SHEETSASSETSDecember
      31,
                            
                            
                            December
      31,2008
                            
                            
                            2007Current AssetsCash and cash equivalents
                            
                            $
                            91
                            
                            
                            $
                            14,707Current assets of entity disposed off
                            
                            
                            -
                            
                            
                            
                            3,637Other receivable, net
                            
                            
                            -
                            
                            
                            
                            26,250Total
      Current Assets
                            
                            
                            91
                            
                            
                            
                            44,594Non-current
      assets of entity disposed off
                            
                            
                            -
                            
                            
                            
                            22,412Total
      Asset
                            
                            $
                            91
                            
                            
                            $
                            67,007LIABILITIES AND STOCKHOLDERS'
      DEFICITCurrent
      LiabilitiesAccounts payable and accrued expenses
                            
                            $
                            41,001
                            
                            
                            $
                            26,344Loan payable to related parties
                            
                            
                            370,128
                            
                            
                            
                            265,721Current Liability of the entity disposed off
                            
                            
                            -
                            
                            
                            13,111Total
      Current Liabilities
                            
                            
                            411,129
                            
                            
                            
                            305,176Stockholders'
      DeficitCommon stock, $.001 par value, 100,000,000shares
      authorized, 10,250,000 issued and outstanding
                            
                            
                            10,250
                            
                            
                            
                            10,250Additional paid in capital
                            
                            
                            115,159
                            
                            
                            
                            108,872Subscription receivable
                            
                            
                            (50,000
                            )
                            
                            
                            (50,000
                            )Other accumulated comprehensive gain
                            
                            
                            -
                            
                            
                            
                            6,673Accumulated deficit
                            
                            
                            (486,447
                            )
                            
                            
                            (313,965
                            )Total
      Stockholders' Deficit
                            
                            
                            (411,038
                            )
                            
                            
                            (238,170
                            )Total
      Liabilities & Stockholders’ Equity
                            
                            $
                            91
                            
                            
                            $
                            67,007




The
accompanying notes are an integral part of these audited consolidated financial
statements






F3









ARTCRAFT
      V, INC. AND SUBSIDIARIESCONSOLIDATED
      STATEMENTS OF OPERATIONSFor
      the Year ended December 31,2008
                    
                    
                    2007Revenue,
      net
                    
                    $
                    -
                    
                    
                    $
                    -Operating
      Expenses:General
      and administrative expenses
                    
                    
                    75,930
                    
                    
                    
                    87,002Loss
      from continued operations
                    
                    
                    (75,930
                    )
                    
                    
                    (87,002
                    )Discontinued
      OperationLoss
      from Operations
                    
                    
                    (7,548
                    )
                    
                    
                    (131,494
                    )Loss
      on Disposal
                    
                    
                    (89,004
                    )
                    
                    
                    -Loss
      on Discontinued Operations
                    
                    
                    (96,552
                    )
                    
                    
                    (131,494
                    )Net
      Loss
                    
                    
                    (172,482
                    )
                    
                    
                    (218,496
                    )Other
      Comprehensive IncomeForeign
      Currency Translation
                    
                    
                    (6,673
                    )
                    
                    
                    3,092Comprehensive
      loss
                    
                    $
                    (179,155
                    )
                    
                    $
                    (215,404
                    )Loss
      per share:Basic
      & Diluted loss per share from continued operations
                    
                    $
                    (0.01
                    )
                    
                    $
                    (0.01
                    )Basic
      & Diluted loss per share from discontinued operations
                    
                    $
                    (0.01
                    )
                    
                    $
                    (0.01
                    )Basic
      & diluted per share
                    
                    $
                    (0.02
                    )
                    
                    $
                    (0.02
                    )Weighted
      average number of shares outstanding:Basic
      & diluted weighted average number of shares
                    
                    
                    10,250,000
                    
                    
                    
                    10,153,836








Weighted
average number of shares for dilutive securities has not been taken since the
effect of dilutive securities is anti-dilutive




The
accompanying notes are an integral part of these audited consolidated financial
statements








F4




ARTCRAFT
      V, INC. AND SUBSIDIARIESCONSOLIDATED
      STATEMENTS OF CASH FLOWSFOR
      THE YEARS ENDED DECEMBER 31, 2008 AND 20072008
                      
                      
                      2007CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      Loss
                      
                      $
                      (172,482
                      )
                      
                      $
                      (218,496
                      )Adjustments
      to reconcile net loss to net cashused
      in operating activities:Payment
      of rental by an officer
                      
                      
                      6,287
                      
                      
                      
                      -Changes
      in current assets:Other
      receivables
                      
                      
                      26,250
                      
                      
                      
                      -Changes
      in current liabilities:Accounts
      payable and accrued expenses
                      
                      
                      14,656
                      
                      
                      
                      20,478Total
      Adjustments
                      
                      
                      47,193
                      
                      
                      
                      20,478Net
      cash used in operating activities from continuing
    operations
                      
                      
                      (125,289
                      )
                      
                      
                      (198,018
                      )Net
      cash provided by operations of entity sold
                      
                      
                      26,049
                      
                      
                      
                      21,726Net
      cash used in operating activities
                      
                      
                      (99,240
                      )
                      
                      
                      (176,292
                      )CASH
      FLOWS FROM FINANCING ACTIVITIESCash
      received from subscription
                      
                      
                      -
                      
                      
                      
                      60,000Loan
      from related party
                      
                      
                      104,407
                      
                      
                      
                      40,766Net
      cash provided by financing activities from continuing
      operations
                      
                      
                      104,407
                      
                      
                      
                      100,766Net
      cash provided by financing activities from entity held for
      sale
                      
                      
                      (13,111
                      )
                      
                      
                      90,199Net
      cash provided by financing activities
                      
                      
                      91,296
                      
                      
                      
                      190,965Effect
      of exchange rate changes on cash and cash equivalents
                      
                      
                      (6,672
                      )
                      
                      
                      15Net
      increase (decrease) in cash and cash equivalents
                      
                      
                      (14,616
                      )
                      
                      
                      14,688Cash
      and cash equivalents, beginning balance
                      
                      
                      14,707
                      
                      
                      
                      19Cash
      and cash equivalents, ending balance
                      
                      $
                      91
                      
                      
                      $
                      14,707SUPPLEMENTAL
      DISCLOSURES:Cash
      paid during the year for:Income
      tax
                      
                      $
                      -
                      
                      
                      $
                      -Interest
      expense
                      
                      $
                      -
                      
                      
                      $
                      -








The
accompanying notes are an integral part of these audited consolidated financial
statement








F5








ARTCRAFT
      V, INC. AND SUBSIDIARIESCONSOLIDATED
      STATEMENT OF STOCKHOLDERS' DEFICITFOR
      THE YEARS ENDED DECEMBER 31, 2008 AND 2007Additional
                
                
                Other
                
                
                
                
                
                
                
                
                
                
                
                TotalCommon
      Stock
                
                
                Paid-In
                
                
                Comprehensive
                
                
                Shares
                
                
                Subscription
                
                
                Accumulated
                
                
                Stockholders'Shares
                
                
                Amount
                
                
                Capital
                
                
                Gain
      (Loss)
                
                
                To
      be Issued
                
                
                Receivable
                
                
                Deficit
                
                
                DeficitBalance
      December 31, 2006
                
                
                10,100,000
                
                
                
                10,100
                
                
                
                42,700
                
                
                
                3,581
                
                
                
                60,000
                
                
                
                (110,000
                )
                
                
                (95,469
                )
                
                
                (89,088
                )Issuance
      of common stock
                
                
                150,000
                
                
                
                150
                
                
                
                59,850
                
                
                
                -
                
                
                
                (60,000
                )
                
                
                60,000
                
                
                
                -
                
                
                
                60,000Director
      contribution
                
                
                -
                
                
                
                -
                
                
                
                6,322
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                6,322Foreign
      currency translation adjustments
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                3,092
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                3,092Net
      loss for the year ended December 31, 2007
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (218,496
                )
                
                
                (218,496
                )Balance
      December 31, 2007
                
                
                10,250,000
                
                
                $
                10,250
                
                
                $
                108,872
                
                
                $
                6,673
                
                
                $
                -
                
                
                $
                (50,000
                )
                
                $
                (313,965
                )
                
                $
                (238,170
                )Director
      contribution
                
                
                -
                
                
                
                -
                
                
                
                6,287
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                6,287Foreign
      currency translation adjustments
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (6,673
                )
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (6,673
                )Net
      loss for the year ended December 31, 2008
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (172,482
                )
                
                
                (172,482
                )10,250,000
                
                
                $
                10,250
                
                
                $
                115,159
                
                
                $
                
                
                
                $
                -
                
                
                $
                (50,000
                )
                
                $
                (486,447
                )
                
                $
                (411,038
                )
  The
accompanying notes are an integral part of these audited consolidated financial
statements.








F6


ARTCRAFT
V INC. AND SUBSIDIARY
   NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS


Note
1 – ORGANIZATION





Artcraft
V, Inc. was incorporated under the laws of the State of Delaware on June 7,
2004.  On November 7, 2005, the Company entered into an Exchange
Agreement with Top Interest International Limited (“Top
Interest”).  Top Interest owns 70% equity interest of Shenzhen Xin Kai
Yuan Info Consult Co., Ltd. (“188info.com”) which operates 188info.com, a
professional information searching platform that is engaged in the business of
providing information search engine, online web application and image designing,
digital network service, online market research, online promotion and
advertising services, and query searches for both individuals and
businesses.  Top Interest was incorporated under the laws of the
British Virgin Islands.  188info.com was legally established under the
laws of the People’s Republic of China.  When used in these notes, the
terms “Company”, “we”, “our” or “us” mean Artcraft V, Inc. and its
subsidiaries.





Pursuant
to the Stock Purchase and Share Exchange Agreement, the Company purchased all of
the issued and outstanding shares of Top Interest from the shareholders for
issuance of a total of 10,000,000 shares of the Company’s common stock, or
approximately 99% of the total issued and outstanding shares.  This
transaction closed on November 7, 2005 and has been accounted for as a reverse
acquisition.





On
September 22, 2008 the Company’s board of directors agreed to sell the Company’s
70% interest in 188info.com.  The Company entered into an agreement
with Shenzhen Dingyi Investment Consulting Company Co., Ltd  on
September 22, 2008 to sell its 70% interest in 188info.com for $0.15 (RMB1)
and the assumption of all assets and liabilities of 188info.com. The transaction
was completed and approved by the PRC on October 17, 2008 (See note
11).





Note
2 – SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES





Basis of
Presentation





The
accompanying consolidated financial statements have been prepared in conformity
with accounting principles generally accepted in the United States of
America.  The Company’s functional currency is the Chinese Renminbi
(CNY); however the accompanying consolidated financial statements have been
translated and presented in United States Dollars.





Principles of
Consolidation





The
consolidated financial statements include the accounts of Artcraft V, Inc. and
its wholly owned subsidiary, collectively referred to within as the Company. All
material intercompany accounts, transactions and profits have been eliminated in
consolidation.





Exchange Gain
(Loss)





During
the years ended December 31, 2008 and 2007, the transactions of Shenzhen were
denominated in foreign currency and were recorded in CNY at the rates of
exchange in effect when the transactions occur. Exchange gains and losses are
recognized for the different foreign exchange rates applied when the foreign
currency assets and liabilities are settled.






F7


ARTCRAFT
V INC. AND SUBSIDIARY
   NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




Translation
Adjustment




As of
December 31, 2008 and 2007, the accounts of Shenzhen were maintained, and its
financial statements were expressed, in CNY. Such financial statements were
translated into U.S. Dollars (USD) in accordance with Statement of Financial
Accounts Standards (“SFAS”) No. 52, “Foreign Currency Translation,” with the CNY
as the functional currency. According to the Statement, all assets and
liabilities were translated at the current exchange rate, stockholder’s equity
are translated at the historical rates and income statement items are translated
at the average exchange rate for the period. The resulting translation
adjustments are reported under other comprehensive income in accordance with
SFAS No. 130, “Reporting Comprehensive Income” as a component of shareholders’
equity.





Use of
Estimates





The
preparation of financial statements in conformity with generally accepted
accounting principles 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 revenues and expenses during the reporting period.
Actual results could differ from those estimates.





Risks and
Uncertainties





The
Company is subject to substantial risks from, among other things, intense
competition associated with the industry in general, other risks associated with
financing, liquidity requirements, rapidly changing customer requirements,
limited operating history, foreign currency exchange rates and the volatility of
public markets.





Contingencies





Certain
conditions may exist as of the date the financial statements are issued, which
may result in a loss to the Company but which will only be resolved when one or
more future events occur or fail to occur.  The Company’s management
and legal counsel assess such contingent liabilities, and such assessment
inherently involves an exercise of judgment.  In assessing loss
contingencies related to legal proceedings that are pending against the Company
or unasserted claims that may result in such proceedings, the Company’s legal
counsel evaluates the perceived merits of any legal proceedings or unasserted
claims as well as the perceived merits of the amount of relief sought or
expected to be sought.





If the
assessment of a contingency indicates that it is probable that a material loss
has been incurred and the amount of the liability can be estimated, then the
estimated liability would be accrued in the Company’s financial
statements.  If the assessment indicates that a potential material
loss contingency is not probable but is reasonably possible, or is probable but
cannot be estimated, then the nature of the contingent liability, together with
an estimate of the range of possible loss if determinable and material would be
disclosed.





Loss
contingencies considered to be remote by management are generally not disclosed
unless they involve guarantees, in which case the guarantee would be
disclosed.





Cash and Cash
Equivalents





Cash and
cash equivalents include cash in hand and cash in time deposits, certificates of
deposit and all highly liquid debt instruments with original maturities of three
months or less.








F8


ARTCRAFT
V INC. AND SUBSIDIARY
   NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS






Intangible
Assets





Intangible
assets consist of software for information search engine and online web
application. The Company evaluates intangible assets for impairment, at least on
an annual basis and whenever events or changes in circumstances indicate that
the carrying value may not be recoverable from its estimated future cash flows.
Recoverability of intangible assets, other long-lived assets and, goodwill is
measured by comparing their net book value to the related projected undiscounted
cash flows from these assets, considering a number of factors including past
operating results, budgets, economic projections, market trends and product
development cycles. The intangible assets amounted to $0 and $6,636 belonged to
the entity disposed off and included under non-current assets as at December 31,
2008 and 2007.





Long-Lived
Assets




Effective
January 1, 2002, the Company adopted Statement of Financial Accounting Standards
No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“SFAS
144”), which addresses financial accounting and reporting for the impairment or
disposal of long-lived assets and supersedes SFAS No. 121, “Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of,”
and the accounting and reporting provisions of APB Opinion No. 30, “Reporting
the Results of Operations for a Disposal of a Segment of a Business.” The
Company periodically evaluates the carrying value of long-lived assets to be
held and used in accordance with SFAS 144. SFAS 144 requires impairment losses
to be recorded on long-lived assets used in operations when indicators of
impairment are present and the undiscounted cash flows estimated to be generated
by those assets are less than the assets’ carrying amounts. In that event, a
loss is recognized based on the amount by which the carrying amount exceeds the
fair market value of the long-lived assets. Loss on long-lived assets to be
disposed of is determined in a similar manner, except that fair market values
are reduced for the cost of disposal




Long
lived assets at the end of December 31, 2008 and 2007 were $0 and $22,412
respectively. Long lived assets at December 31, 2007 belonged to the entity
disposed off.




Fair Value of Financial
Instruments




Statement
of financial accounting standard No. 107, Disclosures about fair value of
financial instruments, requires that the Company disclose estimated fair values
of financial instruments.




The
carrying amounts reported in the statements of financial position for current
assets and current liabilities qualifying as financial instruments are a
reasonable estimate of fair value.




Revenue
Recognition





The
Company’s revenue recognition policies are in compliance with Staff accounting
bulletin (SAB) 104. Revenue from marketing services through World Wide Web is
recognized when services are rendered. Payments received before all of the
relevant criteria for revenue recognition are satisfied are recorded as deferred
revenue. As of December 31, 2008 and December 31,2007, deferred revenue was $0.
Revenue for the years ended December 31, 2008 and 2007 were $29,327 and $24,116
respectively, related to the entity diposed off and reclassified as part of loss
from discontinued operations.











F9





ARTCRAFT
V INC. AND SUBSIDIARY
   NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




Stock-Based
Compensation






In
October 1995, the FASB issued SFAS No. 123, “Accounting for Stock-Based
Compensation”. SFAS No. 123 prescribes accounting and reporting standards for
all stock-based compensation plans, including employee stock options, restricted
stock, employee stock purchase plans and stock appreciation rights. SFAS No. 123
requires compensation expense to be recorded (i) using the new fair value method
or (ii) using the existing accounting rules prescribed by Accounting Principles
Board Opinion No. 25, “Accounting for stock issued to employees” (APB 25) and
related interpretations with proforma disclosure of what net income and earnings
per share would have been had the Company adopted the new fair value method. The
Company uses the intrinsic value method prescribed by APB 25 and has opted for
the disclosure provisions of SFAS No.123. During the year ended December 31,
2008, the company did not grant or issue any option or warrant.




Advertising





Advertising
expenses consist primarily of costs of promotion for corporate image and product
marketing and costs of direct advertising. The Company expenses all advertising
costs as incurred. The company did not incur any advertising expense during the
year ended December 31, 2008 and 2007.




Income
Taxes




The
Company utilizes SFAS No. 109, “Accounting for Income Taxes,” which requires the
recognition of deferred tax assets and liabilities for the expected future tax
consequences of events that have been included in the financial statements or
tax returns. Under this method, deferred income taxes are recognized for the tax
consequences in future years of differences between the tax bases of assets and
liabilities and their financial reporting amounts at each period end based on
enacted tax laws and statutory tax rates applicable to the periods in which the
differences are expected to affect taxable income. Valuation allowances are
established, when necessary, to reduce deferred tax assets to the amount
expected to be realized.




Basic and Diluted Earnings
(Loss) Per Share




Earnings
(loss) per share is calculated in accordance with the Statement of financial
accounting standards No. 128 (SFAS No. 128), “Earnings per share”. SFAS No. 128
superseded Accounting Principles Board Opinion No.15 (APB 15). Net income (loss)
per share for all periods presented has been restated to reflect the adoption of
SFAS No. 128. Basic net loss per share is based upon the weighted average number
of common shares outstanding. Diluted net loss per share is based on the
assumption that all dilutive convertible shares and stock options were converted
or exercised. Dilution is computed by applying the treasury stock method. Under
this method, options and warrants are assumed to be exercised at the beginning
of the period (or at the time of issuance, if later), and as if funds obtained
thereby were used to purchase common stock at the average market price during
the period. Basic and diluted loss per share were $(0.02) and $(0.02) for the
years ended December 31, 2008 and 2007 respectively.




Statement of Cash
Flows




In
accordance with SFAS No. 95, “Statement of Cash Flows,” cash flows from the
Company’s operations is based upon the local currencies. As a result, amounts
related to assets and liabilities reported on the statement of cash flows will
not necessarily agree with changes in the corresponding balances on the balance
sheet.






F10





ARTCRAFT
V INC. AND SUBSIDIARY
   NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




Concentration of Credit
Risk






Financial
instruments that potentially subject the Company to concentrations of credit
risk are cash, accounts receivable and other receivables arising from its normal
business activities. The Company places its cash in what it believes to be
credit-worthy financial institutions. As at December 31, 2008 and 2007 the
Company is not exposed to such risk.




Recent accounting
pronouncements





In
September 2006, FASB issued SFAS 158 ‘Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87,
88, 106, and 132(R)’ This Statement improves financial reporting by requiring an
employer to recognize the over funded or under funded status of a defined
benefit postretirement plan (other than a multiemployer plan) as an asset or
liability in its statement of financial position and to recognize changes in
that funded status in the year in which the changes occur through comprehensive
income of a business entity or changes in unrestricted net assets of a
not-for-profit organization. This Statement also improves financial reporting by
requiring an employer to measure the funded status of a plan as of the date of
its year-end statement of financial position, with limited exceptions. An
employer with publicly traded equity securities is required to initially
recognize the funded status of a defined benefit postretirement plan and to
provide the required disclosures as of the end of the fiscal year ending after
December 15, 2006. An employer without publicly traded equity securities is
required to recognize the funded status of a defined benefit postretirement plan
and to provide the required disclosures as of the end of the fiscal year ending
after June 15, 2007. However, an employer without publicly traded equity
securities is required to disclose the following information in the notes to
financial statements for a fiscal year ending after December 15, 2006, but
before June 16, 2007, unless it has applied the recognition provisions of this
Statement in preparing those financial statements:




a.  A
brief description of the provisions of this Statement


b.  The
date that adoption is required


c.  The
date the employer plans to adopt the recognition provisions of this Statement,
if earlier.





The
requirement to measure plan assets and benefit obligations as of the date of the
employer’s fiscal year-end statement of financial position is effective for
fiscal years ending after December 15, 2008.




In
December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in
Consolidated Financial Statements”. This Statement amends ARB 51 to establish
accounting and reporting standards for the noncontrolling (minority) interest in
a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a
noncontrolling interest in a subsidiary is an ownership interest in the
consolidated entity that should be reported as equity in the consolidated
financial statements. SFAS No. 160 is effective for the Company’s fiscal year
beginning October 1, 2009. Management is currently evaluating the effect of this
pronouncement on financial statements.





In
December 2007, the FASB issued SFAS No. 141(R), “Business Combinations”. This
Statement replaces SFAS No. 141, Business Combinations. This Statement retains
the fundamental requirements in Statement 141 that the acquisition method of
accounting (which Statement 141 called the purchase method) be used for all
business combinations and for an acquirer to be identified for each business
combination. This Statement also establishes principles and requirements for how
the acquirer: a) recognizes and measures in its financial statements the
identifiable assets acquired, the liabilities assumed, and any noncontrolling
interest in the acquiree; b) recognizes and measures the goodwill acquired in
the business combination or a gain from a bargain purchase and c) determines
what information to disclose to enable users of the financial statements to
evaluate the nature and financial effects of the business combination. SFAS No.
141(R) will apply prospectively to business combinations for which the
acquisition date is on or after Company’s fiscal year beginning October 1, 2009.
While the Company has not yet evaluated this statement for the impact, if any,
that SFAS No. 141(R) will have on its consolidated financial statements, the
Company will be required to expense costs related to any acquisitions after
September 30, 2009.






F11


ARTCRAFT
V INC. AND SUBSIDIARY
   NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS


On March
19, 2008, the FASB issued FASB Statement No. 161, Disclosures about Derivative
Instruments and Hedging Activities. The new standard is intended to improve
financial reporting about derivative instruments and hedging activities by
requiring enhanced disclosures to enable investors to better understand their
effects on an entity’s financial position, financial performance, and cash
flows. It is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008, with early application
encouraged. "Use and complexity of derivative instruments and hedging activities
have increased significantly over the past several years. This has led to
concerns among investors that the existing disclosure requirements in FASB
Statement No. 133, Accounting for Derivative Instruments and Hedging Activities,
do not provide enough information about how these instruments and activities
affect the entity’s financial position and performance," explained Kevin
Stoklosa, project manager. "By requiring additional information about how and
why derivative instruments are being used, the new standard gives investors
better information upon which to base their decisions." The new standard also
improves transparency about the location and amounts of derivative instruments
in an entity’s financial statements; how derivative instruments and related
hedged items are accounted for under Statement 133; and how derivative
instruments and related hedged items affect its
financial position, financial performance, and cash flows. FASB Statement No.
161 achieves these improvements by requiring disclosure of the fair values of
derivative instruments and their gains and losses in a tabular format. It also
provides more information about an entity’s liquidity by requiring disclosure of
derivative features that are credit risk-related. Finally, it requires
cross-referencing within footnotes to enable financial statement users to locate
important information about derivative instruments. Management is currently
evaluating the effect of this pronouncement on financial
statements.





In May 0f
2008, FSAB issued SFASB No.162, The Hierarchy of Generally Accepted Accounting
Principles. The pronouncement mandates the GAAP hierarchy reside in the
accounting literature as opposed to the audit literature. This has the practical
impact of elevating FASB Statements of Financial Accounting Concepts in the GAAP
hierarchy. This pronouncement will become effective 60 days following SEC
approval. The company does not believe this pronouncement will impact its
financial statements.





In May of
2008, FASB issued SFASB No. 163, Accounting for Financial Guarantee Insurance
Contracts-an interpretation of FASB Statement No. 60. The scope of the statement
is limited to financial guarantee insurance (and reinsurance) contracts. The
pronouncement is effective for fiscal years beginning after December 31, 2008.
The company does not believe this pronouncement will impact its financial
statements.





Reclassifications





Certain
amounts in the 2007 financial
statements have been reclassified to conform to the 2008 presentation. These
reclassifications had no effect on previously reported results of operations or
retained earnings.








F12


ARTCRAFT
V INC. AND SUBSIDIARY
   NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS





Note
3 – ACCOUNTS PAYABLE
AND ACCRUED EXPENSES





As of
December 31, 2008, account payable and accrued expenses were $41,001, including
accrued  legal, audit, and accounting expenses .





As of
December 31, 2007, account payable and accrued expenses were $26,344, including
accrued  legal, audit, and accounting expenses .





Note
4 – LOAN PAYBLE TO
RELATED PARTIES





As of
December 31, 2008, total loan payable to related parties were $370,128,
including a non interest-bearing, unsecured and due on demand note payable to an
officer of a subsidiary amouting $168,000 and a non interest-bearing,
unsecured and due on demand note payable to a shareholder of the Company in the
amount of $202,128.





As of
December 31, 2007, total loan payable to related parties were $265,721,
including a non interest-bearing, unsecured and due on demand note payable to an
officer of a subsidiary amounting $84,000 and a non interest-bearing,
unsecured and due on demand note payable to a shareholder of the Company in the
amount of $181,721.





Note
5 – COMMON
STOCK





On May
17, 2005, the Company agreed to issue 150,000 shares of common stock to
individuals forsubscriptions receivable
of $60,000 ($0.40 per share). The shares were issued and cash received in the
month of August 2007.





Subscription
receivable from the share holder of Top Interest International Limited amounted
to $50,000 in the accompanied financial statements.





No new
shares have been issued during the year ended December 31, 2008.




Note
6 – ADDITIONAL PAID-IN
CAPITAL








The
      Company utilizes office space arranged by an officer of the Company in
      188info.com, free of charge. The fair maket rent value amounting $6,287
      and $6,322 have been taken as a contribution to the capital from the
      officer and credited to the additional paid in capital as of December 31,
      2008 and December 31, 2007
respectively.




Note
7 – INCOME
TAXES





The
Company is registered in the State of Delaware and has operations in primarily
two tax jurisdictions - the PRC and the United States. For certain operations in
the US and PRC, the Company has incurred net accumulated operating losses for
income tax purposes The Company believes that it is more likely than not that
these net accumulated operating losses will not be utilized in the future.
Therefore, the Company has provided full valuation allowance for the deferred
tax assets arising from the losses at these locations as of December 31, 2008
and 2007, and the Company has recorded income tax provisions for the periods as
follows:






F13


ARTCRAFT
V INC. AND SUBSIDIARY
   NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS


The provision for income taxes from continuing operations on
income consists of the following for the years ended December 31, 2008 and
2007:


12/31/2008
                            
                            
                            12/31/2007US
      Current Tax Expense (Benefit)Federal
                            
                            $
                            -
                            
                            
                            $
                            -State
                            
                            
                            -
                            
                            
                            
                            -PRC
      Current Income Expense (Benefit)
                            
                            
                            -
                            
                            
                            
                            -Total
      Provision for Income tax
                            
                            $
                            -
                            
                            
                            $
                            -Tax
      expense (credit) at staturory rate - federal
                            
                            
                            34
                            %
                            
                            
                            34
                            %State
      tax expense net of federal tax
                            
                            
                            6
                            %
                            
                            
                            6
                            %Changes
      in valuation allowance
                            
                            
                            (40
                            %)
                            
                            
                            (40
                            %)Foreign
      income tax - PRC
                            
                            
                            18
                            %
                            
                            
                            15
                            %Exempt
      from income tax due to net loss
                            
                            
                            (18
                            %)
                            
                            
                            (15
                            %)Tax
      expense at actual rate
                            
                            
                            0
                            %
                            
                            
                            0
                            %





United States of
America




As of
December 31, 2008, the Company in the United States had approximately $243,000
in net operating loss carry forwards available to offset future taxable income.
Federal net operating losses can generally be carried forward 20 years. The
deferred tax assets for the United States entities at December 31, 2008 consists
mainly of net operating loss carry forwards and were fully reserved as the
management believes it is more likely than not that these assets will not be
realized in the future.





The
following table sets forth the significant components of the net deferred tax
assets for operation in the US as of December 31, 2008 and December 31,
2007.





December
      31, 2008
                    
                    
                    December
      31, 2007Net
      operation loss carry forward
                    
                    $
                    243,000
                    
                    
                    $
                    107,000Total
      deferred tax assets
                    
                    
                    83,000
                    
                    
                    
                    37,000Less:
      valuation allowance
                    
                    
                    (83,000
                    )
                    
                    
                    (37,000
                    )Net
      deferred tax assets
                    
                    $
                    -
                    
                    
                    $
                    -




F14




ARTCRAFT
V INC. AND SUBSIDIARY
   NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS







People’s Republic of China
(PRC)





Pursuant
to the PRC Income Tax Laws, the Company's subsidiary is generally subject to
Enterprise Income Taxes ("EIT") at a statutory rate of 33%, which comprises 30%
national income tax and 3% local income tax. The subsidiary is qualified as a
new technology enterprises and under PRC Income Tax Laws, it subject to a
preferential tax rate of 15%.





Beginning
January 1, 2008, the new Enterprise Income Tax ("EIT") law will replace the
existing laws for Domestic Enterprises ("DES") and Foreign Invested Enterprises
("FIEs"). The new standard EIT rate of 25% will replace the 33% rate currently
applicable to both DES and FIEs. The Company’s applicable EIT rate under new EIT
law is different from the amounts computed by applying the EIT primarily. The
local government has implemented a special tax rate based on income rather than
net income for the enterprises reported operation loss continuously for more
than two years.  Pursuant to the special tax rate, the Company’s
subsidiary is first subject to a tax rate of 6% on their income and then
multiply that by the standard tax rate of 25% or simply 1.5% of income. Income
tax expenses for the years ended December 31, 2008 and 2007 were $ 395 and $0
respectively, related to the entity disposed off and included as part of loss
from discontinued operations.







December
      31, 2008
                    
                    
                    December
      31, 2007Loss
      from China before income tax
                    
                    $
                    (7,153
                    )
                    
                    $
                    (162,107
                    )Income
      tax expense for operation in the PRC
                    
                    $
                    395
                    
                    
                    $
                    -Tax
      expense at actual rate
                    
                    
                    6
                    %
                    
                    
                    -


Note
8 – STATUTORY
RESERVE





In
accordance with the laws and regulations of the PRC, after the payment of the
PRC income taxes shall be allocated to the statutory surplus reserves and
statutory public welfare fund for staff and workers.  The proportion
of allocation for reserve is 5 to 10 percent of the profit after tax until the
accumulated amount of allocation for statutory reserve reaches 50 percent of the
registered capital.  Statutory surplus reserves are to be utilized to
offset prior years’ losses, or to increase its share capital. Statutory public
welfare fund is no longer requested for the companies invested by foreign
countries in 2006.





General
reserve fund and statutory surplus fund are restricted for set off against
losses, expansion of production and operation or increase in register capital of
the respective company. Statutory public welfare fund is restricted to the
capital expenditures for the collective welfare of employees. These reserves are
not transferable to the Company in the form of cash dividends, loans or
advances. These reserves are therefore not available for distribution except in
liquidation. As of December 31, 2008, the Company had no reserves to these
non-distributable reserve funds since it had no income from
operations.






F15




ARTCRAFT
V INC. AND SUBSIDIARY
   NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS





Note
9 – OTHER
COMPREHENSIVE INCOME (LOSS)





Balances
of related after-tax components comprising accumulated other comprehensive
income (loss), included in Stockholders’ Deficit, at December 31, 2008 are
as follows:





Foreign
      Currency Translation AdjustmentBalance
      at December 31, 2007
                      
                      $
                      6,673Change
      for 2008
                      
                      
                      (6,673
                      )Balance
      at December 31, 2008
                      
                      $
                      -





Note
10  – GOING
CONCERN





The
accompanying consolidated financial statements have been prepared in conformity
with generally accepted accounting principles which contemplate continuation of
the company as a going concern.  However, the Company has an
accumulated deficit of $486,447 and $313,965 as of December 31, 2008 and
December 31, 2007 including losses of $172,482 and $218,494 for the years ended
December 31, 2008 and December 31, 2007. The Company’s current liabilities
exceed its current assets by $411,038 and $260,582 as of December 31, 2008 and
December 31, 2007. In view of the matters described above, recoverability of a
major portion of the recorded asset amounts shown in the accompanying
consolidated balance sheet is dependent upon continued operations of the
company, which in turn is dependent upon the Company’s ability to raise
additional capital, obtain financing and succeed in its future operations, The
financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts or amounts and
classification of liabilities that might be necessary should the Company be
unable to continue as a going concern.





Management
has taken the following steps to revise its operating and financial
requirements, which it believes are sufficient to provide the Company with the
ability to continue as a going concern.  Management devoted
considerable effort from inception through December 31, 2008, towards obtaining
additional equity and management of accrued expenses and accounts
payable.





Management
believes that actions presently being taken to obtain additional funding to
implement its strategic plans provide the opportunity for the Company to
continue as a going concern.




Note
11 – DISCONTINUED
OPERATIONS








On
September 22, 2008 the Company’s board of directors agreed to sell the Company’s
70% interest in 188info.com.  The Company entered into an agreement
with Shenzhen Dingyi Investment Consulting Company Co., Ltd  on
September 22, 2008 to sell our 70% interest in 188info.com for $0.15 (RMB1) and
the assumption of all assets and liabilities of 188info.com. The transaction was
completed and approved by the PRC on October 17, 2008.





The
Company has reclassified the assets and liabilities of the entity disposed off
in the accompanied financial statements.





Following
table summarizes the classification of assets and liabilities of the disposed
entity as at December 31, 2007.






F16




ARTCRAFT
V INC. AND SUBSIDIARY
   NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS


Current
      assetsCash
                  $3,363Receivable
      from related part
                  274Current
      assets of entity disposed off
                  $3,637Non-current
      assetProperty,
      plan & equipment
                  $15,776Intangible
      assets
                  6,636Non-current
      assets of entity disposed off
                  22,412Current
      liabilitiesDeferred
      revenue
                  $3,313Accured
      expenses
                  9,798Current
      liabilities of entity disposed off
                  $13,111





At the
date of disposal October 17, 2008, the Company recorded $7,548 as loss from
operations of discontinued entity and $89,004 as loss on disposal of
discontinued entity.











F17