UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      D. C. 20549





**FORM
      10-KSB**





(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, 2006





|_|
      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT


OF
      1934





For
      the
      transition period from ___________ to ___________





Commission
      file number: 000-50818





**ARTCRAFT
      V, INC.**


(Name
      of
      Small Business Issuer in its charter)





DELAWARE(State
                or other jurisdiction of incorporation or organization)
            (I.R.S.
                Employer Identification NumberBaimang
                Checking Station 1st Building
              South
                Mountain Xili Town, Shenzhen, China
            518000(Address
                of principal executive offices)
            (Zip
                code)





011-775
      27653497


Issuer's
      Telephone Number





Securities
      registered under Section 12(b) of the Exchange Act:





Title
                of each class registered:
            Name
                of each exchange on which registered:None
            None





Securities
      registered under Section 12(g) of the Exchange Act:





Common
      Stock, par value $.001


(Title
      of
      class)
















Check
      whether the issuer is not required to file reports pursuant to Section 13 or
      15(d) of the Exchange Act |_|





Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 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. |X| Yes |_| No





Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of
      Regulation S-B contained in this form, and no disclosure will be contained,
      to
      the best of registrant's knowledge, in definitive proxy or information
      statements incorporated by reference in Part III of this Form 10-KSB or any
      amendment to this Form 10-KSB. |X|





Indicate
      by check whether the registrant is a shell company (as defined in Rule 12b-2
      of
      the Exchange Act. |_| Yes |X| No





Issuer's
      revenues for its most recent fiscal year, December 31, 2006, were
      $20,883.




The
        aggregate market value of the voting and non-voting common equity held by
        non-affiliates computed by reference to the price at which the common equity
        was
        sold, or the average bid and asked price of such common equity, as of March
        22,
        2007, was $ -0-


As
        of
        March 22, 2007 the Company had 10,100,000 shares of common stock
        outstanding.




















Forward
      Looking Statements





Certain
      information contained herein should be considered "forward-looking statements"
      within the meaning of the Private Securities Litigation Reform Act of 1995
      which
      is subject to a number of risks and uncertainties. The preparation of
      forward-looking statements requires the use of estimates of future revenues,
      expenses, activity levels and economic and market conditions, many of which
      are
      outside the control of Artcraft V, Inc. (the "Company") control. Specific
      factors that could cause actual results to differ materially from those set
      forth in the forward-looking statements include: economic conditions, labor
      costs; competitive pressures on pricing; consumer perceptions of the Company's
      products; other operational matters discussed herein and other risks and
      uncertainties. Other factors and assumptions not identified above are also
      involved in the preparation of forward-looking statements, and the failure
      of
      such other factors and assumptions to be realized may also cause actual results
      to differ materially from those discussed.


































ARTCRAFT
      V, INC.





TABLE
      OF
      CONTENTS











**PART
                I**
            1ITEM
                1. DESCRIPTION OF BUSINESS
            1ITEM
                2. DESCRIPTION OF PROPERTY
            10ITEM
                3. LEGAL PROCEEDINGS
            10ITEM
                4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
            10**PART
                II**
            11ITEM
                5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
                MATTERS
            11ITEM
                6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
                OPERATION
            11ITEM
                7. FINANCIAL STATEMENTS
            F-1ITEM
                8. CHANGE IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
                FINANCIAL DISCLOSURE
            18ITEM
                8A.CONTROLS AND PROCEDURES
            18**PART
                III**
            16ITEM
                9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
                COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT
            16ITEM
                10.EXECUTIVE COMPENSATION
            17ITEM
                11.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
                MANAGEMENT
            17ITEM
                12.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
            18ITEM
                13:EXHIBITS AND REPORTS ON FORM 8-K
            18ITEM
                14:PRINCIPAL ACCOUNTANT FEES AND SERVICES
            19**SIGNATURES**
            20




























**PART
      I**





**ITEM
      1. DESCRIPTION OF BUSINESS.**




Artcraft
        V Inc. ("Artcraft") was incorporated on June 7, 2004, under the laws of the
        State of Delaware. On November 7, 2005, we purchased all of the outstanding
        shares of Top Interest for a total of 10,000,000 shares of Artcraft common
        stock
        to Top Interest. Pursuant to the agreement, Top Interest became our wholly
        owned
        subsidiary. Top Interest owns 70% of Shenzhen Xin Kai Yuan Information
        Consulting Co., Ltd, which is their operating subsidiary. Shenzhen Xin Kai
        Yuan
        Information Consulting Co., Ltd operates 188Info (http://www.188info.com/),
        a
        professional information searching platform that categorizes the information
        it
        provides based on geographical boundaries. Through the operating subsidiary
        Shenzhen Xin Kai Yuan Information Consulting Co., Ltd, we provide a number
        of
        services including 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.


188Info
      has a strong reputation among Shenzhen residents. Many Shenzhen residents use
      188 Info to publish and search for information. 188Info enjoys several
      competitive advantages including innovative information categorization,
      sophisticated product and service categorization. For example, 188Info's
      categories include career services, real estate, lodging accommodations,
      transportation, computer networking, communications electronics, furniture,
      gifts and apparel, printing presses, and other businesses. Information is
      presented in a variety of ways to enhance readability.





188Info
      has succeeded in becoming one of the major information websites for Chinese
      in a
      relatively short time period. 188Info has achieved its success on the basis
      of a
      modest initial investment.





In
      2006,
      Top Interest will continue to promote 188Info in an effort to expand its
      usefulness among Chinese citizens. The Company's plans include:




o
            Further
                promotion of 188Info and development of related websites to attract
                a
                younger demographic and achieve one million hits on a daily
                basis.o
            Promotion
                of a commercials exchange among various industrieso
            Establishment
                of a community information service in Shenzhen by cooperating with
                communitieso
            Publication
                of "yellow pages" in Shenzhen








Industry
      Background





Internet
      Users in China





The
      number of Internet users in China has grown rapidly. According to CNNIC, there
      were approximately 94 million Internet users in China as of December 31, 2004.
      The number of Internet users is expected to grow at a CAGR of 24.2% from 2005
      to
      2007, according to iResearch. The table below sets forth the number of Internet
      users in China for the periods indicated and the CAGR from 2005 to
      2007.





2005
            2006
            2007
            06-07
              CAGRInternet
                Users (in millions)
            133
            166
            205
            24.2%





Source:
      iResearch: China Internet Search Market Report 2004





Internet
      Search Users in China





China's
      Internet search market is still at an early stage of development but is evolving
      rapidly as an increasing number of users seek information, products and services
      via the Internet. According to iResearch, there were approximately 83 million
      Internet search users in China in 2004, and the number of Internet search users
      is expected to grow at a CAGR of 27.5% from 2005 to 2007. The table below sets
      forth the number of Internet search users in China for the periods indicated
      and
      the CAGR from 2005 to 2007.






1





2002
            2003
            2004
            2005
            2006
            2007
            06-07
              CAGRInternet
                Search Users (in millions)
            38
            56
            83
            115
            149
            187
            27.5%





Source:
      iResearch: China Internet Search Market Report 2004





With
      the
      acceleration of broadband penetration in China and the proliferation of Chinese
      language websites, the number of search queries in China has increased
      significantly. According to iResearch, the total number of queries per day
      was
      estimated to have reached approximately 188 million in 2004 and is expected
      to
      grow at a CAGR of 49.8% from 2005 to 2007, and the total number of queries
      per
      user per day is expected to grow from 2.3 per user in 2004 to 4.3 per user
      in
      2007. The table below sets forth the total number of queries per day and queries
      per user per day for the periods indicated and the respective CAGR from 2005
      to
      2007.





2002
            2003
            2004
            2005
            2006
            2007
            06-07
              CAGRTotal
                Queries Per Day (in millions)(1)
            24
            81
            188
            360
            544
            808
            49.8%Total
                Queries Per User Per Day(1)
            0.6
            1.4
            2.3
            3.1
            3.6
            4.3
            17.8%





(1)
      The
      historical data based on the results of a survey conducted in December of each
      year of Chinese Internet search providers and their estimated number of daily
      search queries processed.





Source:
      iResearch: China Internet Search Market Report 2004





Online
      Marketing in China





Similar
      to the trend in the U.S., Internet search in China has evolved from
      directory-based search to web search. Prior to 2001, Internet search in China
      mainly included directory-based search. Major forms of online marketing
      associated with directory-based search include pay-for-inclusion and fixed
      ranking marketing.





With
      the
      growth of Internet usage and the rapid development of the Internet search market
      in China, online marketing has become a more widely adopted marketing medium.
      IDC reported that in 2003, 43.8% of China's Internet users clicked on various
      forms of online marketing, higher than Internet users in most parts of the
      Asia
      Pacific region (excluding Japan), and total online marketing revenues in China
      would amount to approximately US$130 million in 2004. The paid search market
      is
      expected to be the fastest growing segment of online marketing in the Asia
      Pacific region (excluding Japan) through 2007. Forms of online marketing include
      paid search as well as online advertisements such as text links and graphical
      advertisements. The table below sets forth the various forms of online marketing
      as a percentage of total online marketing revenues in China for the periods
      indicated.





(%
                of Online Marketing Revenues)
            2002
            2003
            2004
            2005
            2006Paid
                Search
            34.7
                %
            37.9
                %
            37.9
                %
            43.3
                %
            45.4
                %Online
                Advertisements
            60.8
                %
            59.3
                %
            60.0
                %
            54.9
                %
            53.1
                %Email
                Advertisements
            4.5
                %
            2.8
                %
            2.1
                %
            1.8
                %
            1.5
                %





Source:
      iResearch: China Internet Search Market Report 2004





Paid
      Search. Paid search is expected to be the fastest-growing segment of online
      marketing in China. iResearch estimates that paid search will comprise
      approximately 45% of online marketing revenues in 2006. The table below sets
      forth the various forms of paid search as a percentage of total paid search
      revenues in China for the periods indicated.





(%
                of Paid Search Revenues)
            2002
            2003
            2004
            2005
            2006Pay-for-performance
            14
                %
            43
                %
            43
                %
            51
                %
            58
                %Fixed
                Ranking
            32
                %
            22
                %
            28
                %
            24
                %
            21
                %Address
                Bar
            50
                %
            29
                %
            24
                %
            19
                %
            15
                %Others
            4
                %
            6
                %
            5
                %
            6
                %
            6
                %





Source:
      iResearch: China Internet Search Market Report 2004






2





Auction-based
      P4P is a cost-effective platform designed to meet the need of businesses to
      reach the increasing number of Internet users. P4P enables a customer to bid
      for
      priority placement of its links in keyword search results. The customer is
      required to pay the amount of its bid when a user clicks on the customer's
      listing in the search results. In the fixed ranking model, a customer pays
      a
      fixed fee to guarantee the display of its listing at a specified position on
      the
      search result page.





Online
      Advertisements. Online advertisements include text links, buttons, banners
      and
      other graphical advertisements. Online advertisements offered by search engines
      include both query sensitive and non-query sensitive advertising products.
      Advertisers purchase online advertising products directly from website operators
      or indirectly through advertising agents. iResearch estimates that online
      advertising revenues will comprise approximately 53% of online marketing
      revenues in 2006.





Unique
      Characteristics of Chinese Internet Search Market





Diverse
      Internet Search Needs. Internet users in China search for a variety of
      information, such as web pages, news and multimedia files. According to a survey
      of Internet search users in China conducted by iResearch in 2004, approximately
      48% of those surveyed searched for MP3 files through search engines and
      approximately 35% of those surveyed searched for pictures. The following chart
      sets forth iResearch's survey results.





Information
      Needs of Internet Search Users in China(1)





(1)
      Represents the percentage of Internet search users who searched for the
      specified type of information in 2004. Source: iResearch: China Internet Search
      Market Report 2004





Complexity
      of the Chinese Language. The complexity of the Chinese language requires special
      language processing technologies to generate relevant results. Sentences in
      Chinese consist of phrases, equivalent to words in English, that are formed
      by
      multiple characters. A search engine must index and segment the Chinese text
      phrases before conducting keyword/phrase searches. Moreover, a Chinese language
      phrase generally has more synonyms and closely associated phrases than an
      English word. As a result, a Chinese language search engine must have a
      comprehensive database of synonyms and closely associated phrases in order
      to
      function effectively.





Large
      Base of SME Customers. While large enterprises represent an important part
      of
      the paid search market, we believe that SMEs comprise a substantial and growing
      portion of China's potential paid search customer base. According to iResearch,
      the number of SMEs in China is estimated to reach 24.8 million by the end of
      2006. iResearch also forecasts that the number of SMEs adopting some form of
      online marketing will grow from 410,000 in 2004 to 680,000 in 2006, representing
      a CAGR of 28.8%. SMEs are generally more likely to adopt paid search as a
      marketing medium given their relatively modest budgets. Paid search allows
      SMEs
      to maximize the return on their spending by reaching potential consumers that
      they otherwise may not be able to reach cost-effectively.





Reliance
      on Distributors. China's paid search market relies heavily on distributors
      to
      acquire customers, collect payments and provide customer service. This is in
      part due to the large, fragmented and less sophisticated SME customer base,
      which is at an early stage of adopting paid search as a marketing medium.
      Moreover, since secure online payment and credit card systems are at early
      stages of development in China, distributors serve as an effective channel
      to
      collect payments from customers.





Our
      Strengths





We
      focus
      on providing Chinese language Internet search and related services. Our services
      are designed to enable our users to find relevant information efficiently online
      and to enable our customers to reach these users cost-effectively. We believe
      that our position in is primarily attributable to the following
      strengths:





Large
      Chinese Language Search Audience. We provide our customers with access to users
      from our websites, which consisted of over 76,000 third-party websites as of
      June 30, 2005. Our search engine significantly enhances our ability to attract
      users and to provide our customers with increased exposure to users who may
      be
      interested in their offerings.





One
      of
      the Most Widely Recognized Internet Search Brands in Shenzhen. 188info is one
      of
      the most widely recognized Internet search brands in Shenzhen. Our brand has
      grown mainly through word-of-mouth among our users and customers. We recently
      initiated marketing campaigns to promote and strengthen our brand. The awareness
      of our "188info" brand enhances our ability to attract more user traffic to
      our
      188info.com website. It also allows us to attract more customers seeking to
      target a broader base of potential consumers.




3


Local
      Market Experience and Expertise. We have a significant understanding of the
      needs and preferences of our users and customers in China. We have expertise
      in
      search technologies that cater to the search behavior of Chinese users and
      address the unique features of Chinese language search. We also have a track
      record of successfully introducing and expanding our services to paid search
      customers across different regions of China. In addition, we have experience
      in
      operating in the highly regulated and rapidly evolving Internet industry in
      China.





Leading
      Technology. Our search technology provides users with relevant search results
      and customers with an efficient way to reach potential consumers. Our
      link-analysis, anti-spamming and Chinese language processing technologies form
      the core of our algorithmic search technology.





Extensive
      and Effective Distribution and Customer Service Network. Our customers can
      access our services directly or through our nationwide network of regional
      distributors. Our distributors sell our services to customers and collect
      payments for us. Our key distributors are restricted from selling similar
      products offered by our competitors during our contractual period. We also
      provide training to our distributors and evaluate their performance to ensure
      high-quality customer service. In addition, we, along with our distributors,
      provide training, keyword analysis and search reports to our customers to help
      them better understand our services and achieve higher ROIs.





Our
      Strategies





Our
      goal
      is to become a platform that provides users with the best way to find
      information and allows businesses to reach a broad base of potential customers.
      We intend to achieve our goal by implementing the following
      strategies:





Enhance
      User Experience and Increase Traffic. We believe that continuous improvement
      of
      our users' experience is essential to increasing traffic to our websites. We
      plan to continue to introduce new features and functions to our search services,
      including new forms of searchable content. We also plan to refine our search
      algorithms and other related technologies, increase the size of our indexes
      and
      improve index refresh rates to enable users to find relevant information more
      efficiently.





Grow
      Online Marketing Business. We intend to grow our online marketing business
      by
      attracting potential customers and increasing spending per customer on our
      services. We plan to address the specific needs of our customers by offering
      individual products and services and tailored solutions to maximize the
      effectiveness of their marketing efforts. We aim to better understand their
      online marketing needs through regular customer dialogues, cross selling of
      our
      various products and services and introduction of new and innovative online
      marketing solutions.





Pursue
      Selective Strategic Acquisitions and Alliances. We intend to pursue selective
      strategic acquisitions of businesses, assets and technologies that complement
      our existing capabilities and business.




Products
      and Services for Users





We
      focus
      on offering products and services that enable our users to find relevant
      information quickly and easily. We offer the following services at 188info.com
      to users free of charge:





Web
      Search. Our web search allows users to locate information, products and services
      using Chinese language search terms. Through our search software, we build
      and
      continuously refine a large database of Chinese synonyms and closely associated
      phrases, which is essential for accurate and efficient execution of Chinese
      language searches. The 188info.com home page prominently features a search
      box
      that is designed to load quickly. After entering a search query, users are
      generally presented with a list of search results, which may include our
      customers' links. Users can then access the desired websites by clicking on
      the
      hypertext links displayed in the search results.





In
      addition to providing access to more than 740 million indexed Chinese language
      web pages, we have integrated additional features into our web search that
      help
      users find information more easily. Our web search includes the following
      features:





o
            Related
                Search - provides alternative search terms based on the original
                queries
                to help users find relevant web pages
                quickly;





o
            Search
                in Results - enables users to conduct additional searches within
                the
                initial search results;





o
            Search
                by Chinese Phonetics (Pinyin) - enables users to conduct quick searches
                by
                entering Chinese phonetics with letters of the English alphabet instead
                of
                Chinese characters;





o
            Advanced
                Search - enables users to create more focused queries by employing
                techniques such as narrowing results to specified words or phrases,
                document formats, geographic regions, time frames or
                websites;






4





o
            Travel
                Information - enables users to check domestic train and flight schedules
                as well as schedules of international flights departing from or arriving
                in China; and




o
            Calculator
                - performs basic arithmetic and complicated math and converts between
                units of measure.





Other
      Prospect Services. We are continuously improving and introducing new products
      to
      make 188info.com more attractive to our users. In 2007, Top Interest will
      continue to promote 188Info in an effort to expand its usefulness among Chinese
      citizens. The Company's plans include:





o
            Further
                promotion of 188Info and of related websites to attract a younger
                demographic and achieve one million hits on a daily
                basis


o
            Promotion
                of a commercials exchange among various
                industries


o
            Establishment
                of a community information service in Shenzhen by cooperating with
                communities


o
            Publication
                of yellow pages in Shenzhen





Competition





The
      Internet search industry in China is rapidly evolving and highly competitive.
      Our primary competitors include U.S.-based Internet search providers and Chinese
      Internet companies. We compete with these entities for both users and customers
      on the basis of user traffic, quality (relevance) and quantity (index size)
      of
      search results, availability and ease of use of our products and services,
      the
      number of customers, distribution channels and the number of associated
      third-party websites. We also face competition from traditional advertising
      media.





U.S.-based
      Internet Search Providers. U.S.-based Internet search providers, such as Google,
      Yahoo! and Microsoft, have a strong global presence, well-established brand
      names, more users and customers and significantly greater financial resources
      than we do. The PRC government regulates the Internet industry extensively,
      including foreign investment and license and permit requirements. We may face
      more intense competition from our U.S. competitors as the regulatory environment
      in China evolves, online payment systems and Internet infrastructure in China
      mature, and our U.S. competitors increase their business activities
      in


China.





Chinese
      Internet Companies. Chinese Internet portals such as Sina, Sohu and Netease
      offer a broad range of online services, including news, wireless value-added
      services, email, online shopping, chat rooms and community networks. Sina
      recently launched its self-developed search engine, "iAsk." Each of our Chinese
      Internet portal competitors has generated significant traffic, a loyal user
      base
      and a large and broad customer base. These portals have widely recognized brand
      names in China and greater financial resources than we do. We compete with
      these
      portals primarily for user traffic and online advertising. We also face growing
      competition from other Internet search service providers such as Sougou, Yisou
      and Zhong Sou. In addition, we compete with B2B service providers such as
      Alibaba.





Traditional
      Advertising Media. Traditional advertising media, such as newspapers, yellow
      pages, magazines, billboards and other forms of outdoor media, television and
      radio, compete for a share of our customers' marketing budgets. Large
      enterprises currently spend a relatively small percentage of their marketing
      budgets on online marketing as compared to the percentage they spend on
      traditional advertising media.





Web
      Search Technology





Our
      web
      search technology applies a combination of techniques to determine the
      importance of a web page independent of a particular search query and the
      relevance of that page to a particular search query.





Link
      Analysis Techniques. Link analysis is a technique that determines the relevance
      between a user query and a web page by evaluating the combination of the anchor
      texts and the number of web pages linked to that web page. We treat a link
      from
      web page A to web page B as a "vote" by page A in favor of page B. The subject
      of the "vote" is described in the anchor texts of that link. The more "votes"
      a
      web page gets, the higher the relevance. We compare search queries with the
      content of web pages to help determine relevance. Our text-based scoring
      techniques do more than count the number of times a search term appears on
      a web
      page. For example, our technology determines the proximity of individual search
      terms to each other on a given web page, and prioritizes results that have
      the
      search terms near each other. Other aspects of a page's content are also
      considered. By combining link analysis with our information extraction
      techniques, we are able to deliver relevant search results.





5


Information
      Extraction Techniques. We extract information from a web page using high
      performance algorithms and information extraction techniques. Our techniques
      enable us to understand web page content, delete extraneous data, build link
      structures, identify duplicate and junk pages and decide whether to include
      or
      exclude a web page based on its quality. Our techniques can process millions
      of
      web pages quickly. In addition, our anti-spamming algorithms and tools can
      identify and respond to spamming web pages quickly and effectively.





Web
      Crawling Techniques. Our powerful computer clusters and intelligent scheduling
      algorithms allow us to crawl Chinese web pages efficiently. We can easily scale
      up our system to collect billions of Chinese web pages. Our spider technology
      enables us to refresh web indices at intervals ranging from every few minutes
      to
      every few weeks. We set the index refresh frequency rate based on our knowledge
      of Internet search users' needs and the nature of the information. For example,
      our news index is typically updated every three to six minutes throughout the
      day given the importance of timely information for news. We also mine multimedia
      and other forms of files from web page repositories.





Chinese
      Language Processing Techniques. We analyze and understand Chinese web pages
      by
      processing word-segmentation and utilizing an encoding method based on Chinese
      language characteristics. For example, we can identify Chinese names on a web
      page. When a user searches for a person based on the person's Chinese name,
      we
      can display the web pages that are specifically related to that person. We
      also
      mine user behavior and search interests from our large search query logs. We
      provide additional web search features such as advanced search, spell check
      and
      search by Chinese phonetics (Pinyin).





Large-Scale
      Systems Technology





We
      currently use a combination of off-the-shelf and custom software running on
      clusters of low-cost computers. Our investment in our large-scale system
      infrastructure has several key benefits: simplification of the storage and
      processing of large amounts of data, facilitation of the deployment and
      operation of large-scale products and services, automation of much of the
      administration of large-scale clusters of computers. Moreover, this large
      infrastructure is easily scalable to increases in traffic and dataset
      volume.





Our
      large-scale system infrastructure uses distributed software and high performance
      parallel computing technologies to provide high-quality web search services
      and
      web page collection with low cost computer clusters on a Linux operating system.
      We also have management information systems that enable us to perform tasks
      such
      as service operations, administrations, trouble-shootings and filtering with
      relative ease and efficiency. In addition, we have software systems that can
      test new ideas with real search queries to evaluate the actual effects without
      affecting live services.





Our
      infrastructure significantly improves the relevance of our search and
      advertising results by allowing us to apply superior search and retrieval
      algorithms that are computationally intensive. We believe this infrastructure
      also shortens our product development cycle and allows us to innovate more
      cost-effectively. We also constantly evaluate new hardware alternatives and
      software techniques to help further reduce our computational costs.





Operations





We
      maintain our computer system at our corporate headquarters. Our operations
      are
      dependent upon our ability to protect our systems against damage from fire,
      hurricanes, power loss, telecommunications failure, break-ins, computer viruses
      and other events beyond our control. We maintain access to the Internet through
      third-party providers. Any disruption in our Internet access, failure of our
      third party providers to handle higher volumes of users or damage or failure
      that causes system disruptions or other significant interruptions in our
      operations could have an adverse effect on our business.





GOVERNMENT
      AND STATE REGULATION





Internet
      Law





Our
      website is not currently subject to direct federal laws or regulations
      applicable to access, content or commerce on the Internet. However, due to
      the
      increasing popularity and use of the Internet, it is possible that a number
      of
      laws and regulations may be adopted with respect to the Internet covering issues
      such as:





*
      user
      privacy;


*
      freedom
      of expression;


*
      pricing;


*
      content
      and quality of products and services;


*
      taxation;


*
      advertising;


*
      intellectual property rights; and


*
      information security






6





The
      adoption of any such laws or regulations might decrease the rate of growth
      of
      internet use, which in turn could decrease the demand for our services, increase
      the cost of doing business or in some other manner have a material adverse
      effect on our business, financial condition and operating results. In addition,
      applicability to the Internet of existing laws governing issues such as property
      ownership, copyrights and other intellectual property issues, taxation, libel,
      obscenity and personal privacy is uncertain. The vast majority of such laws
      were
      adopted prior to the advent of the Internet and related technologies and, as
      a
      result, do not contemplate or address the unique issues of the Internet and
      related technologies. Regulations on News Display





Displaying
      news on a website and disseminating news through the Internet are highly
      regulated in the PRC. In November 2000, the State Council News Office and the
      Ministry of Information Industry promulgated the Provisional Measures for
      Administrating Internet Websites Carrying on the News Displaying Business.
      These
      measures require an ICP operator (other than a government authorized news unit)
      to obtain State Council News Office approval to post news on its website or
      disseminate news through the Internet. Furthermore, the disseminated news must
      come from government-approved sources pursuant to contracts between the ICP
      operator and these sources, copies of which must be filed with the relevant
      government authorities.





We
      provide our search users with links to other domestic websites that display
      news. According to our PRC legal counsel, providing links to news stories in
      response to a search query does not constitute displaying news on a website
      or
      disseminating news through the Internet. Therefore, we are not required to
      obtain governmental approval for providing our search users with these
      news


links.





Regulation
      on Internet Culture Activities On May 10, 2003, the Ministry of Culture
      promulgated the Internet Culture Administration Tentative Measures, or the
      Internet Culture Measures. The Internet Culture Measures require ICP operators
      engaging in "Internet culture activities" to obtain a license from the Ministry
      of Culture. The term "Internet culture activities" includes, among other things,
      online dissemination of Internet cultural products (such as audio-video
      products, gaming products, performances of plays or programs, works of art
      and
      cartoons) and the production, reproduction, importation, sale (wholesale or
      retail), leasing and broadcasting of Internet cultural products. The Internet
      Culture Measures do not state whether the measures apply to Internet search
      services that provide links to Internet cultural products, such as online
      audio-video products offered by third-party websites.





According
      to our PRC legal counsel, Internet search services that provide links to
      third-party websites do not currently constitute engaging in Internet culture
      activities under the Internet Culture Measures. We therefore believe that we
      do
      not need to obtain an Internet culture business operation license.





Regulation
      on Broadcasting Audio-Video Programs through the Internet





On
      January 7, 2003, the State Administration of Radio, Film and Television
      promulgated the Rules for Administration of Broadcasting of Audio-Video Programs
      Through the Internet and Other Information Networks, or the Broadcasting Rules.
      The Broadcasting Rules regulate Internet broadcasting of audio-video programs.
      According to the Broadcasting Rules, anyone who wishes to engage in Internet
      broadcasting activities must first obtain a license.





On
      April
      23, 2005, the State Council announced a policy regarding investment by
      non-state-owned companies in culture-related business in China. The policy
      restricts investment by non-state-owned companies in audio-video broadcasting
      business or website news business, whether the business is conducted via
      Internet or otherwise. The policy authorizes the Ministry of Culture, the State
      Administration of Radio, Film and Television and the State Council News Office
      to adopt detailed implementation rules according to the policy. As we provide
      algorithm-generated links to third-party websites, we do not believe this policy
      would have direct adverse impact on our business and operations.





Regulations
      on Advertisements





The
      PRC
      government regulates online advertising, principally through the State
      Administration for Industry and Commerce, or the SAIC. Under the Rules for
      Administration of Foreign Invested Advertising Enterprise, promulgated by the
      SAIC and Ministry of Commerce on March 2, 2004, and the Guidance Catalogue,
      foreign investors are currently permitted to own up to 70% of the equity
      interest, individually or collectively, in a PRC advertising company. Starting
      December 10, 2005, there will be no limit on the percentage of foreign
      equity


ownership.





7


Any
      entity that wishes to conduct advertising business in the PRC must first obtain
      approval from the SAIC or its local counterpart. Although the PRC laws or
      regulations at the national level do not specifically regulate online
      advertising businesses, certain provincial government authorities, such as
      the
      Beijing Administration for Industry and Commerce, or Beijing AIC, regulate
      online advertising businesses. In March 2001, Beijing AIC promulgated the Online
      Advertising Tentative Administrative Measures, which require ICP operators
      that
      provide online advertising services within the municipality of Beijing to obtain
      an advertising operations license.





Regulation
      on Software Products





On
      October 27, 2000, the Ministry of Information Industry issued the Administrative
      Measures on Software Products, or the Software Measures, to strengthen the
      regulation of software products and to encourage the development of the PRC
      software industry. Under the Software Measures, a software developer must have
      all software products imported into or sold in the PRC tested by a testing
      organization approved by the Ministry of Information Industry. The software
      products must be registered with the Ministry of Information Industry or with
      its provincial branch. The sale of unregistered software products in the PRC
      is
      forbidden. Software products can be registered for five years, and the
      registration is renewable upon expiration.





Regulations
      on Intellectual Property Rights





China
      has
      adopted legislation governing intellectual property rights, including
      trademarks, patents and copyrights. China is a signatory to the main
      international conventions on intellectual property rights and became a member
      of
      the Agreement on Trade Related Aspects of Intellectual Property Rights upon
      its
      accession to the WTO in December 2001.





Patent.
      The National People's Congress adopted the Patent Law in 1984, and amended
      it in
      1992 and 2000. The purpose of the Patent Law is to protect and encourage
      invention, foster applications of invention and promote the development of
      science and technology. To be patentable, invention or utility models must
      meet
      three conditions: novelty, inventiveness and practical applicability. Patents
      cannot be granted for scientific discoveries, rules and methods for intellectual
      activities, methods used to diagnose or treat diseases, animal and plant breeds
      or substances obtained by means of nuclear transformation. The Patent Office
      under the State Council is responsible for receiving, examining and approving
      patent applications. A patent is valid for a term of twenty years in the case
      of
      an invention and a term of ten years in the case of utility models and designs.
      A third-party user must obtain consent or a proper license from the patent
      owner
      to use the patent. Otherwise, the use constitutes an infringement of patent
      rights.





Copyright.
      The National People's Congress amended the Copyright Law in 2001 to widen the
      scope of works and rights that are eligible for copyright protection. The
      amended Copyright Law extends copyright protection to Internet activities,
      products disseminated over the Internet and software products. In addition,
      there is a voluntary registration system administered by the China Copyright
      Protection Center.





To
      address copyright issues relating to the Internet, the PRC Supreme People's
      Court on November 11, 2000 issued the Interpretations on Some Issues Concerning
      Applicable Laws for Trial of Disputes Over Internet Copyright, or the
      Interpretations, which were subsequently amended on December 23, 2003. The
      Interpretations establish joint liability for ICP operators if they knowingly
      participate in, assist in or incite infringing activities or fail to remove
      infringing content from their websites after receiving notice from the rights
      holder. In addition, any act intended to bypass circumvention technologies
      designed to protect copyrights constitutes copyright infringement.




To
      address the problem of copyright infringement related to the content posted
      or
      transmitted over the Internet, the PRC National Copyright Administration and
      the
      Ministry of Information Industry jointly promulgated the Administrative Measures
      for Copyright Protection Related to the Internet on April 30, 2005. This measure
      became effective on May 30, 2005.





This
      measure applies to situations where an ICP operator (i) allows another person
      to
      post or store any works, recordings, audio or video programs on the websites
      operated by such ICP operator or (ii) provides links to, or search results
      for,
      the works, recordings, audio or video programs posted or transmitted by such
      person, without editing, revising or selecting the content of such material.
      Upon receipt of an infringement notice from a legitimate copyright holder,
      an
      ICP operator must take remedial actions immediately by removing or disabling
      access to the infringing content. If an ICP operator knowingly transmits
      infringing content or fails to take remedial actions after receipt of a notice
      of infringement, the ICP operator could be subject to administrative penalties,
      including: cessation of infringement activities; confiscation by the authorities
      of all income derived from the infringement activities; and payment of a fine
      of
      up to three times the unlawful income or, in cases where the amount of unlawful
      income cannot be determined, a fine of up to RMB100,000. An ICP operator is
      also
      required to retain all infringement notices for a minimum of six months and
      to
      record the content, display time and IP addresses or the domain names related
      to
      the infringement for a minimum of 60 days. Failure to comply with this
      requirement could result in an administrative warning and a fine of up to
      RMB30,000.





8


Under
      PRC
      copyright laws, a copyright holder can sue Internet service providers for
      copyright infringement. For example, in 2004, a Chinese record company sued
      a
      Chinese Internet music content provider, alleging that the defendant enabled
      users to download certain MP3 music files without the plaintiff's authorization.
      The Beijing Municipal Supreme People's Court found the defendant liable for
      knowingly participating in infringing activities and fined the defendant
      RMB100,000 (US$12,082). On the other hand, in a 2001 case in which an author
      sued a Chinese Internet company for providing search links to a third-party
      website which displayed his book online without his authorization, the Haidian
      District People's Court in Beijing held that the Internet company was not liable
      for providing algorithm-generated search links to the third-party website
      without knowledge of the website's infringing activities. However, if an
      Internet search provider does not promptly remove links to the infringing
      content after receiving notices from the copyright holders, the Internet search
      provider can be held liable by a PRC court. For example, in 2000, a copyright
      holder of a book brought a copyright infringement claim against another Chinese
      Internet company in the Beijing Intermediate People's Court, alleging that
      the
      defendant provided search links to certain third-party websites that posted
      the
      plaintiff's book without authorization and refused to remove such links to
      the
      infringing websites after the plaintiff requested the defendant to do so. The
      court found the defendant liable based primarily on the fact that it received
      notices of infringement from the plaintiff but did not timely remove the search
      links, and ordered the defendant to pay RMB3,000 (US$362.5) to the plaintiff
      as
      compensatory damage.





We
      do not
      host MP3 music files or movies on our servers. We provide algorithm-generated
      links to MP3 music files and provide index to movies located on third-party
      websites in response to our users' search queries. We have adopted measures
      to
      mitigate copyright infringement risks.




For
      example, our policy is to remove links to web pages if we know these web pages
      contain materials that infringe third-party rights or if we are notified by
      the
      legitimate copyright holder of the infringement.





Regulation
      of Information Security





The
      National People's Congress has enacted legislation that prohibits use of the
      Internet that breaches the public security, disseminates socially destabilizing
      content or leaks state secrets. Breach of public security includes breach of
      national security and infringement on legal rights and interests of the state,
      society or citizens. Socially destabilizing content includes any content that
      incites defiance or violations of PRC laws or subversion of the PRC government
      or its political system, spreads socially disruptive rumors or involves cult
      activities, superstition, obscenities, pornography, gambling or violence. State
      secrets are defined broadly to include information concerning PRC national
      defense, state affairs and other matters as determined by the PRC
      authorities.





According
      to this legislation and other relevant regulations, ICP operators must complete
      mandatory security filing procedures with local public security authorities
      and
      must also report any public dissemination of prohibited content.




Regulations
      on Internet Privacy





The
      PRC
      Constitution states that PRC laws protect the freedom and privacy of
      communications of citizens and prohibits infringement of such rights. In recent
      years, PRC government authorities have enacted legislation on Internet use
      to
      protect personal information from any unauthorized disclosure. The Internet
      Measures prohibit an ICP operator from insulting or slandering a third party
      or
      infringing upon the lawful rights and interests of a third party. Pursuant
      to
      the BBS Measures, ICP operators that provide electronic messaging services
      must
      keep users' personal information confidential and must not disclose such
      personal information to any third party without the users' consent or unless
      required by law. The regulations further authorize the relevant
      telecommunications authorities to order ICP operators to rectify unauthorized
      disclosure. ICP operators are subject to legal liability if the unauthorized
      disclosure results in damages or losses to users. The PRC government, however,
      has the power and authority to order ICP operators to turn over personal
      information if an Internet user posts any prohibited content or engages in
      illegal activities on the Internet.





Regulations
      on Foreign Exchange





Foreign
      Currency Exchange





Pursuant
      to the Foreign Currency Administration Rules promulgated in 1996 and amended
      in
      1997 and various regulations issued by the State Administration of Foreign
      Exchange, or the SAFE, and other relevant PRC government authorities, RMB is
      freely convertible only to the extent of current account items, such as trade
      related receipts and payments, interest and dividends. Capital account items,
      such as direct equity investments, loans and repatriation of investment, require
      prior approval from the SAFE or its provincial branch for conversion of RMB
      into
      a foreign currency, such as U.S. dollars, and remittance of the foreign currency
      outside the PRC.





Payments
      for transactions that take place within the PRC must be made in RMB. Unless
      otherwise approved, PRC companies must repatriate foreign currency payments
      received from abroad. Foreign-invested enterprises may retain foreign exchange
      in accounts with designated foreign exchange banks subject to a cap set by
      SAFE
      or its local counterpart.


9


Unless
      otherwise approved, domestic enterprises must convert all of their foreign
      currency receipts into RMB.





Employees





As
      of
      March 22, 2007, we have 10 full time employees located in China. We will hire
      additional employees as we continue to implement our plan of operation. None
      of
      our employees are represented under a collective bargaining agreement, and
      we
      believe that our relationship with our employees is satisfactory.





**ITEM
      2. DESCRIPTION OF PROPERTY**





We
      currently operate our business from our corporate office located at Baimang
      Checking Station 1st Building, South Mountain Xili Town, Shenzhen, China. The
      office space is approximately 1,000 square feet, at no cost to the company.
      There presently is no lease for the premises. Management has agreed to continue
      this arrangement until we expand to a level exceeding the capacity of our
      current office space. We do not own or lease any properties at this time and
      have no agreements to acquire any properties.





**ITEM
      3. LEGAL PROCEEDINGS** .





There
      are
      no legal proceedings pending or threatened by or against us.





**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,
      2006.











10


**PART
      II**





**ITEM
      5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
      MATTERS.**





Market
      Information





Our
      common stock is presently not trading on any public market or securities
      exchange. We filed a Registration Statement on Form SB-2 on January 13, 2006
      (File No. 3330131019), which was declared effective on February 12, 2007,
      registering 500,000 shares of our common stock at a price of $.49 per share
      for
      a maximum aggregate offering price of $245,000. We have started the process
      for
      applying for quotation on the OTC Bulletin Board. There is no assurance that
      our
      shares of common stock will be quoted on the OTC Bulletin Board.





Holders


As
        of
        March 22, 2007, we had 50 shareholders holding an aggregate of 10,100,000
        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 March 22, 2007, 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





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





In
      this
      section, "Management's Discussion and Analysis or Plan of Operation," references
      to "we," "us," "our," and "ours" refer to Artcraft V, Inc. and its
      subsidiary.





The
      following discussion should be read in conjunction with the Consolidated
      Financial Statements and Notes thereto appearing elsewhere in this Form 10-KSB.
      The following discussion contains forward-looking statements. Our actual results
      may differ significantly from those projected in the forward-looking
      statements.





11


Critical
      Accounting Policies:





Our
      discussion and analysis of our financial condition and results of operations
      are
      based upon our financial statements, which have been prepared in accordance
      with
      generally accepted accounting principles in the United States of America. The
      preparation of these financial statements requires us to make estimates and
      judgments that affect the reported amount of assets, liabilities and expenses,
      and related disclosure of contingent assets and liabilities. We bases our
      estimates on historical experience and on other various assumptions that are
      believed to be reasonable under the circumstances, the results of which form
      the
      basis from making judgments about carrying values of assets and liabilities
      that
      are not readily apparent from other sources. Actual results may differ from
      these estimates under difference assumptions or conditions.





Overview:





We
      operate our business through our wholly owned subsidiary, Top Interest
      International Limited, which operates our "188Info" service. 188Info provides
      a
      number of services including 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.





188Info
      has a strong reputation among Shenzhen residents. Many Shenzhen residents use
      188Info to publish and search for information.





188Info
      enjoys several competitive advantages including innovative information
      categorization, sophisticated product and service categorization. For example,
      188Info's categories include career services, real estate, lodging
      accommodations, transportation, computer networking, communications electronics,
      furniture, gifts and apparel, printing presses, and other businesses.
      Information is presented in a variety of ways to enhance
      readability.




188Info
      has succeeded in becoming one of the major information websites for Chinese
      in a
      relatively short time period. 188Info has achieved its success on the basis
      of a
      modest initial investment.





We
      are
      also completing a website to be utilized in various real estate services such
      as
      relocation, listings of real estate sales or rentals, mortgage information
      and
      other real estate related information or content. We have not spent any money
      for research and development.





Plan
      of Operation:





We
      intend
      to grow through internal development and strategic alliances. Because of
      uncertainties surrounding our growth and limited operating history, we
      anticipate incurring losses in the foreseeable future. We have already incurred
      significant net losses, with a net loss of $1,781 in 2005 and a net loss of
      $92,812 in 2006. The difference was due to an increase in operating expenses,
      and as we attempt to grow are business, these expenses will certainly increase.
      Also, we may incur substantial net losses in the future due to the relatively
      high risk associated with our revenue and the high level of planned operating
      and capital expenditures, including sales and marketing costs, personnel hires,
      and product development. Also, maintaining and further expanding our brand
      is
      critical to our ability to expand our user base and our revenues. We believe
      that the importance of brand recognition will increase as the number of Internet
      users in China grows. In order to attract and retain Internet users,
      advertisers, subscribers, and wireless and e-commerce customers, we may need
      to
      substantially increase our expenditures for creating and maintaining brand
      loyalty. If our revenues do not increase proportionately, our results of
      operations and liquidity will suffer. For some periods, we may have net profits;
      however, we may not sustain profitability over time.




Accordingly,
      our ability to achieve our business objectives is contingent upon our success
      in
      raising additional capital until adequate revenues are realized from operations.
      During the next twelve months, we expect to take the following steps in
      connection with the expansion of our business and the continuance of our
      operations:


1)
        Initiate
        substantive construction of our corporate website. We currently have constructed
        a comprehensive and well designed site webpage at www.188info.com which outlines
        the products and services that we offer and such website includes additional
        sub-pages, our phone and email information, navigational tools and a more
        detailed description of our products and services. 188 infonet features a
        wide
        range of Web advertisement. Web advertising can reach any part of the world
        equally fast, which is an impossible feat for conventional advertisement.
        Our
        multimedia presentation is rich in audio, and video. Our web content is
        interactive by nature. Current programs such as Flash, Shockwave provide
        vivid,
        animated interaction.





The
      next stage of web expansion will focus on promoting 188 infonet and expand
      its
      influence into people’s daily activities. Including a plan to discuss with
      various industries consultants to assist us, as well as companies within the
      industry to partner with; further promote of 188Info and develop related
      websites to attract a younger demographic and achieve one million hits on a
      daily basis; Establish a community information service in Shenzhen by
      cooperating with communities, Such as publish yellow pages in
      Shenzhen.






12




Incorporation
      of these services could run from $2,500 to $100,000 depending upon the level
      of
      detail in these services and the nature of the partnerships reached. If we
      reach
      partnerships whereby we incorporate other company’s services into our site and
      co-brand with partners, programming will be far simpler and thereby cheaper
      than
      if we have to offer users the ability to design their own service
      requests.




Further
      website expansion 2007 will be in various phases subject to revenue and capital
      availability.




2)
      Since
      our SB-2 Registration Statement was recently declared effective, we are seeking
      a quotation for our common shares on the OTC Bulletin Board. We anticipate
      that
      the date of the application for the quotation will be in the second quarter
      of
      2007 and there are no fees to us for such filing. We will also begin discussions
      with various potential real estate consultants to assist us, as well as
      companies within the industry to partner with. We have already commenced the
      process of searching for consultants and partners and will continue to do so
      in
      an ongoing manner and we believe that such consultants will also be secured
      by
      the end of year. Our preference would be to structure deals that have little
      cash outlays and reward consultants with stock and percentages of revenue and
      profits, however, consultants could require monthly fees of $2,000 to $8,000
      a
      month. We do not anticipate any costs being involved with our initial
      partnership as we will attempt to strike partnership deals that are revenue
      and
      profit-sharing arrangements;




3) We
      are currently identifying funding options to raise additional capital for the
      company and key geographic markets to target during our first phase of
      operations. We intend to seek funding options such as equity or debt financing.
      However, currently we have had no preliminary discussions with any group
      regarding such financing. As we grow and the overall economic climate improves,
      we expect to be in a better position to raise outside capital later in 2006
      or
      early 2007. The only associated costs for such funding may be the due diligence
      costs or expenses associated with putting a financing deal together. The costs
      would be as much as 5%-6% of the funding raised, but any such fees would be
      taken out of the closing of the funding transaction. Searching for capital
      will
      likely be an ongoing process even if we raise an initial amount of funds. The
      only potential expenses would be if we decide to pay for outside research or
      if
      business trips are required.




4)
      Hire
      and train additional staff, including management, marketing staff, and
      administrative personnel; we anticipate hiring at a minimum 10 employees in
      the
      next twelve months. The number of employees hired will be dependent upon a
      variety of factors including our progress in implementing our business plan
      and
      available capital. Ultimately, we expect to require approximately $10,000 per
      month for payroll. We will need additional capital to meet these expenses and
      will scale down accordingly until we are in such a position. The hiring of
      employees will be an ongoing process during the company’s
      existence.




We
      intend
      to grow through internal development and strategic alliances. Because of
      uncertainties surrounding our growth and strong competition, we anticipate
      incurring losses in the foreseeable future. Our ability to achieve our business
      objectives is contingent upon its success in raising additional capital until
      adequate revenues are realized from operations.





Employees





As
      of
      March 22, 2007, we have 10 full time employees located in China. We intend
      to
      hire and train additional staff, including management, marketing staff, and
      administrative personnel. We anticipate hiring a minimum of 10 employees in
      the
      next twelve months, beginning in early 2007. The number of employees hired
      will
      depend on a variety of factors including our progress in implementing our
      business plan and available capital. Ultimately, we expect to require
      approximately $10,000 per month for payroll. We will need additional capital
      to
      meet these expenses and will scale down accordingly until we are in such a
      position. The hiring of employees will be an ongoing process during the
      Company's existence.





Each
      of
      these steps present significant risks with respect to our ability to implement
      our plan of operations, which are discussed in the "Risk Factors" section of
      this 10-KSB.





Liquidity
      and Capital Resources





We
      have
      limited liquidity and capital resources. Earnings were insufficient in years
      2005 and 2006 to meet the liquidity needs of operations in those periods. 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.





On
      November 7, 2005, pursuant to the closing of the Stock Purchase Agreement and
      Share Exchange with Top Interest International Limited, we ceased being a "blank
      check" company, as that term is defined in rule 419 of Regulation C under the
      rules of the Securities Act of 1933, and began operating an a professional
      information searching platform that categorizes the information it provides
      based on geographical boundaries.






13





Our
      cash
      requirements consist of general and administrative expenses, and professional
      fees, which are expected to average $1,700 per month for the next 12 months.
      We
      believe we have sufficient cash to meet our minimum development and operating
      costs for the next 12 months. We will need to raise additional capital to
      continue our operations past 12 months, and there is no assurance we will be
      successful in raising the needed capital. Due to difficult market conditions,
      we
      are focusing on growing through strategic alliances without the necessity of
      outlaying cash.





RESULTS
      OF OPERATIONS





The
      following table presents certain consolidated statement of operations
      information stated as a percentage of total revenues. Certain columns may not
      add due to rounding.




2006
              
              2005Net
                  Revenue
              
              $
              20,883
              
              $
              20,494General
                  and Administrative Expense
              
              $
              120,992
              
              
              24,131Income
                  (Loss) from Operations
              
              $
              (100,109
              )
              $
              (3,
                  637
              )




Net
      Revenue





Net
      sales
      for 2006 totaled $20,883 compared to $20,494 as of 2005, an increase of $389.
      The increase was due to the expansion of the business which resulted in more
      member users and more customers.





Operating
      Expense




General
        and administrative expense for 2006 totaled $120,992, compared to $24,131
        or
        approximately or 401.4% for 2005. The increase in operating expense of $96,861
        was due to increased
        expenses incurred during expansion of the business and the increase in
        accounting and, legal, and other professional fees related to being a public
        company and responding to SEC comment letters related to our financial
        statements that was only included since November 7, 2005 for the December
        31,
        2005 numbers.


Income
      (Loss) from Operations




Loss
        from
        operations for 2006 was $(100,109) as compared to loss from operations of
        $(3,637) for 2005, a decrease of $(96,472). The increase was due to the increase
        in operating expenses stated above.


Interest
      Expense




Interest
        expense for 2006 totaled $138 compared to $157 for 2005, a decrease of $19.


Net
      Loss




Net
        loss
        was $(92,812) for 2006 compared to $(1,781) for 2005, an increase of $(91,031)
        The decrease was due to increase of operation expense


Taxes





We
      reflected no provision for income taxes in the first quarter of 2006 because
      of
      the availability of a significant net operating loss carry forward to offset
      any
      taxable income.





Off-Balance
      Sheet Arrangements





We
      do not
      have, and do not have any present plans to implement, any off-balance sheet
      arrangements.





**ITEM
      7. FINANCIAL STATEMENTS**





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





14


**ITEM
      8. CHANGE IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
      DISCLOSURE**





On
      January 4, 2006, we terminated the client-auditor relationship with Webb &
Company, P.A. ("Webb & Company") effective January 4, 2006. We engaged
      Kabani & Company, Inc. of Los Angeles, California, as our new independent
      auditors as of January 4, 2006. Prior to such date, we did not consult with
      Kabani & Company, Inc. regarding (i) the application of accounting
      principles, (ii) the type of audit opinion that might be rendered by Kabani
      & Company, Inc. or (iii) any other matter that was the subject of a
      disagreement between us and our former auditor as described in Item
      304(a)(1)(iv) of Regulation S-B.





In
      connection with its review of financial statements through August 31, 2005,
      there have been no disagreements with Webb & Company on any matter of
      accounting principles or practices, financial statement disclosure, or auditing
      scope or procedure, which disagreements if not resolved to the satisfaction
      of
      Webb & Company would have caused them to make reference thereto in their
      report on the financial statements. During the most recent review period and
      the
      interim period subsequent to January 4, 2006, there have been no reportable
      events with us as set forth in Item 304(a)(i)(v) of Regulation S-K. Webb &
Company's audit of our financial statements on Form 10-KSB for the year ending
      May 31, 2005 contained an explanatory paragraph expressing substantial doubt
      about our ability to continue as a going concern. Except as noted in the
      previous sentence, the reports of Webb & Company, P.A. contained no adverse
      opinion or disclaimer of opinion and was not qualified or modified as to audit
      scope or accounting principles.





On
      January 4, 2006, we elected to change our fiscal year end to December
      31 st based on
      the fiscal year end of our operating subsidiary.





**ITEM
      8A. CONTROLS AND PROCEDURES**





Evaluation
      of disclosure controls and procedures





Our
      chief
      executive officer and chief financial officer have each evaluated our disclosure
      controls and procedures (as defined in rule 13a-14(c) and 15d-14(c) under the
      Securities Exchange Act of 1934, as amended) as of a date within 90 days before
      the filing of this annual report (the Evaluation Date). Based on that
      evaluation, our principal executive officer and principal financial officer
      concluded that, as of the Evaluation Date, the disclosure controls and
      procedures in place were adequate to ensure that information required to be
      disclosed by us, including our consolidated subsidiaries, in reports that we
      file or submit under the Exchange Act, is recorded, processed, summarized and
      reported on a timely basis in accordance with applicable rules and regulations.
      Although our principal executive officer and principal financial officer
      believes our existing disclosure controls and procedures are adequate to enable
      us to comply with our disclosure obligations, we intend to formalize and
      document the procedures already in place and establish a disclosure
      committee.





Changes
      in internal controls





We
      have
      not made any significant changes to our internal controls subsequent to the
      Evaluation Date. We have not identified any significant deficiencies or material
      weaknesses or other factors that could significantly affect these controls,
      and
      therefore, no corrective action was taken.





**ITEM
      8B. OTHER INFORMATION** .





There
      is
      no information required to be disclosed in a report on Form 8-K during the
      fourth quarter of the fiscal year covered by this Form 10-KSB but not
      reported.










15











**PART
      III**





**ITEM
      9.DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
      WITH
      SECTION 16(a) OF THE EXCHANGE ACT**





Directors
      and Executive Officers





The
      following table sets forth information about our executive officers and
      directors.







**NAME**
            **AGE**
            **POSITION**Li
                Te Xiao
            29
            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.





Our
      sole
      Director and Executive Officer has not during the past five years:




(a)
            Had
                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;(b)
            Been
                convicted in a criminal proceeding or subject to a pending criminal
                proceeding;(c)
            Been
                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;
                and(d)
            Been
                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, and the judgment
                has not
                been reversed, suspended, or
                vacated.





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.





Audit
      Committee and Audit Committee Financial Expert





We
      do not
      currently have a standing audit committee. The entire board of directors of
      the
      Company acts as the audit committee. Currently, due to the recent changes,
      we do
      not have an audit committee financial expert. We are actively conducting a
      search for a suitable individual to join the board of directors who qualifies
      as
      an audit committee financial expert.





16


Code
      of
      Ethics





The
      Company has adopted a Code of Ethics applicable to its Chief Executive Officer
      and Chief Financial Officer. This Code of Ethics is filed herewith as an
      exhibit.





**ITEM
      10. EXECUTIVE COMPENSATION**





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
      following table sets forth information concerning annual and long-term
      compensation, on an annualized basis for the 2004 and 2005 fiscal year, for
      our
      Chief Executive Officer and for each of our other executive officers (the “Named
      Executive Officers”) whose compensation on an annualized basis is anticipated to
      exceed $100,000 during fiscal 2005 and 2006. Because the company is still in
      the
      developmental stages and is not generating substantial revenue, the Board of
      Directors has decided that compensation will not be provided to our employees
      at
      this time. In the future, the Board of Directors may determine that compensation
      is to be provided, depending on the Company’s financial status, however, there
      are no current plans to do so.




**SUMMARY
      COMPENSATION TABLE**







**Annual
                Compensation****Name
                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 Director2005
            $0
            $0
            $0
            $0
            $0
            $0
            $0
            $02006
            $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


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
      Contracts





We
      presently have no employment agreements.





**ITEM
      11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
      MANAGEMENT**





The
      following table sets forth certain information derived from the named person,
      or
      Company, concerning the ownership of common stock as of April 13, 2006, of
      (i)
      each person who is known to us to be the beneficial owner of more than 5% of
      the
      common stock; (ii) all directors and executive officers; and (iii) directors
      and
      executive officers as a group:








17











**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 10,100,000 shares of common stock issued and outstanding as of March 22,
        2007.


**ITEM
      12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.**





None.





**ITEM
      13: EXHIBITS AND REPORTS ON FORM 8-K**





(a)   Reports
      on Form 8-K




On
        January 4, 2006, we
        filed an 8K dismissing
        Webb & Company, P.A. (“Webb & Company”) as the independent auditor for
        the Company and engaging Kabani & Company, Inc. of Los Angeles, California,
        as our new independent auditors as of January 4, 2006. We also elected to
        change
        our fiscal year end to December 31 st based on
        the fiscal year end of our operating subsidiary.


(b)   Exhibits





3.1
            Articles
                of Incorporation and Amendments (1)3.2
            By-Laws
                (1)10.1
            Securities
                purchase Agreement with Top Interest (3)International
                Limited (1)10.2
            Amendment
                One to the Securities Purchase Agreement with Top Interest International
                Limited (2)14
            Code
                of Ethics21
            List
                of Subsidiaries (1)31
            Certification32
            Certification








(1)
      Filed
      with Form SB-2 registration statement on January 13, 2006 (SEC File No.
      333-131019) and incorporated by reference.





(2)
      Filed
      with Amendment 2 to Form SB-2 registration statement on December 12, 2006 (SEC
      File No. 333-131019) and incorporated by reference.





(3)


18





**ITEM
      14: PRINCIPAL ACCOUNTANT FEES AND SERVICES**





Audit
      Fees





The
      aggregate fees billed for each of the last two fiscal years for professional
      services rendered by the principal accountant for the audit of the registrant's
      annual financial statements and review of financial statements included in
      the
      registrant's 10-QSB (17 CFR 249.308b) or services that are normally provided
      by
      the accountant in connection with statutory and regulatory filings or
      engagements for those fiscal years are:





2005
      Audit and Review fees - $ 20,000


2006
      Audit and Review fees - $ 20,000





Audit
      Related Fees





The
      aggregate fees billed in each of the last two fiscal years for assurance and
      related services by the principal accountant that are reasonably related to
      the
      performance of the audit or review of the registrant's financial statements
      and
      are not reported under Item 9(e)(1) of Schedule 14A are: $-0-





Tax
      Fees




The
      Company was billed $0 for professional services rendered for tax compliance,
      tax
      advice, and tax planning in each of the last two fiscal years.





All
      Other
      Fees





The
      Company did not incur any other fees in each of the last two fiscal years for
      products and services provided by the principal accountant, other than the
      services reported in Items 9(e)(1) through 9(e)(3) of Schedule 14A.











19


**SIGNATURES**





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





**Artcraft
      V, Inc.**


(Registrant)





By:  */s/
      Li Te Xiao*


Li
      Te
      Xiao, President, Chief Executive Officer,


Chief
      Financial Officer and Director








In
      accordance with 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.





*/s/
      Li Te Xiao*


Li
      Te
      Xiao, Director








Dated:
      March 22, 2007













20




**ARTCRAFT
      V, INC. AND SUBSIDIARIES**




**CONSOLIDATED
      FINANCIAL STATEMENTS**




**DECEMBER
      31, 2006**

























**TABLE
      OF CONTENTS**






Report
                    of Independent Registered Public Accounting Firm
              F-2Consolidated
                  Balance Sheet
              F-4Consolidated
                    Statements of Operations
              F-5Consolidated
                  Statements of Cash Flow
              F-6Consolidated
                    Statements of Changes in Stockholders’ Deficit
              F-7Notes
                  to Consolidated Financial Statements
              F-8










F-1








**Report
        of Independent Registered Public Accounting Firm**





Board
        of
        Directors and Stockholders of
 Artcraft
        V Inc. and Subsidiaries
  We
        have
        audited the accompanying consolidated balance sheet of Artcraft V Inc. and
        Subsidiaries (a Delaware corporation) as of December 31, 2006, and the related
        consolidated statements of income, stockholders' deficit, and cash flows
        for the
        two year ended period ended December 31, 2006. 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 audit.
  We
        conducted our audit 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 audit provides 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 Subsidiaries as of December 31, 2006, and the consolidated results of
        their
        operations and their consolidated cash flows for the two year period ended
        December 31, 2006, 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 $95,469 at December 31,
          2006
          including a net loss of $92,812 during the year ended December 31, 2006.
          These
          factors as discussed in Note 12 to the financial statements, raises 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 12. 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
        21,
        2007








F-2






**ARTCRAFT
                  V, INC. AND SUBSIDIARIES****CONSOLIDATED
                  BALANCE SHEET****DECEMBER
                  31, 2006****ASSETS****Current
                  Assets**Cash
                  and cash equivalents
              
              $
              7,750Other
                  receivables
              
              
              256Note
                  receivable
              
              
              83,203Total
                  Current Assets
              
              
              91,209**Property
                  & equipment, net**
              
              
              20,866**Intangible
                  assets, net**
              
              
              8,683$
              120,758**LIABILITIES
                  AND STOCKHOLDERS' DEFICIT****Current
                  Liabilities**Accounts
                  payable and accrued expenses
              
              $
              34,129Loan
                  payable to related party
              
              
              139,123Shares
                  to be issued, 150,000 shares of common stock
              
              
              60,000Deferred
                  revenue
              
              
              5,980Total
                  Current Liabilities
              
              
              239,232Minority
                  Interest
              
              
              30,614**Stockholders'
                  Deficit**Common
                  stock, $.001 par value, 100,000,000shares
                  authorized, 10,100,000 issued and outstanding
              
              
              10,100Additional
                  paid in capital
              
              
              42,700Subscription
                  receivable
              
              
              (110,000
              )Other
                  accumulated comprehensive gain
              
              
              3,581Accumulated
                  deficit
              
              
              (95,469
              )Total
                  Stockholders' Deficit
              
              
              (149,088
              )$
              120,758






The
          accompanying notes are an integral part of these consolidated financial
          statements.
  F-3
  **ARTCRAFT
                    V, INC. AND SUBSIDIARIES****CONSOLIDATED
                    STATEMENTS OF OPERATIONS****FOR
                    THE YEARS ENDED DECEMBER 31, 2006 AND 2005****2006**
                
                **2005****Revenue,
                    net**
                
                $
                20,883
                
                $
                20,494**Operating
                    Expenses:**General
                    and administrative expenses
                
                
                120,992
                
                
                24,131**Loss
                    from operations**
                
                
                (100,109
                )
                
                (3,637
                )Other
                    (Income) ExpenseInterest
                    income
                
                
                (1,989
                )
                
                (1,249
                )Minority
                    interest
                
                
                (5,446
                )
                
                (764
                )Interest
                    expense
                
                
                138
                
                
                157Total
                    Other Expense
                
                
                (7,297
                )
                
                (1,856
                )**Net
                    loss**
                
                
                (92,812
                )
                
                (1,781
                )Other
                    comprehensive incomeForeign
                    currency translation
                
                
                3,619
                
                
                (38
                )**Comprehensive Loss**
                
                $
                (89,193
                )
                $
                (1,819
                )**Net
                    loss per share:**Basic
                    & diluted
                
                $
                (0.0092
                )
                $
                (0.0002
                )**Weighted
                    average number of shares outstanding:**Basic
                    & diluted
                
                
                10,100,000
                
                
                10,100,000
  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 consolidated financial
            statements.


F-4




**ARTCRAFT
                  V, INC. AND SUBSIDIARIES****CONSOLIDATED
                  STATEMENTS OF CASH FLOWS****FOR
                  THE YEARS ENDED DECEMBER 31, 2006 AND 2005****2006**
              
              **2005****CASH
                  FLOWS FROM OPERATING ACTIVITIES**Net
                  Loss
              
              $
              (92,812
              )
              $
              (1,781
              )Adjustments
                  to
                  reconcile net loss to net cashused
                  in
                  operating activities:Depreciation
                  & amortization
              
              
              8,421
              
              
              4,437Minority
                  interest
              
              
              (5,446
              )
              
              (764
              )(Increase)
                  /
                  decrease in assets:Prepaid
                  expense
              
              
              -
              
              
              109Increase/
                  (decrease) in current liabilities:Accounts
                  payable and accrued expenses
              
              
              28,964
              
              
              2,164Deferred
                  revenue
              
              
              3,763
              
              
              1,777Total
                  Adjustments
              
              
              35,703
              
              
              7,723**Net
                    cash provided by (used in) operations**
              
              
              (57,109
              )
              
              5,942**CASH
                  FLOWS FROM INVESTING ACTIVITIES**Note
                receivables
              
              
              (8,247
              )
              
              (71,310
              )Purchase
                  of
                  intangible assets
              
              
              -
              
              
              (11,810
              )Purchase
                  of
                  property & equipment
              
              
              -
              
              
              (25,889
              )**Net
                  cash used in investing activities**
              
              
              (8,247
              )
              
              (109,009
              )**CASH
                  FLOWS FROM FINANCING ACTIVITIES**Loan
                  from related party
              
              
              55,123
              
              
              -**Net
                  cash provided by financing activities**
              
              
              55,123
              
              
              -Effect
                  of exchange rate changes on cash and cash equivalents
              
              
              363
              
              
              1,240**Net
                  decrease in cash and cash equivalents**
              
              
              (9,869
              )
              
              (101,827
              )**Cash
                  and cash equivalents, beginning balance**
              
              
              17,619
              
              
              119,446**Cash
                  and cash equivalents, ending balance**
              
              $
              7,750
              
              $
              17,619**SUPPLEMENTAL
                  DISCLOSURES:**Cash
                  paid during the year for:Income
                  tax payments
              
              $
              -
              
              $
              -Interest
                  payments
              
              $
              138
              
              $
              157






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




F-5






**ARTCRAFT
                  V, INC. AND SUBSIDIARIES****CONSOLIDATED
                  STATEMENT OF STOCKHOLDERS' DEFICIT****FOR
                  THE YEARS ENDED DECEMBER 31, 2006 AND 2005****Additional**
              
              **Other**
              
              
              
              
              
              **Total****Common
                  Stock**
              
              **Paid-In**
              
              **Comprehensive**
              
              **Subscription**
              
              **Accumulated**
              
              **Stockholders'****Shares**
              
              **Amount**
              
              **Capital**
              
              **Gain
                  (Loss)**
              
              **Receivable**
              
              **Deficit**
              
              **Deficit****Balance
                  December 31, 2004**
              
              
              10,000,000
              
              $
              10,000
              
              $
              76,800
              
              $
              -
              
              $
              -
              
              $
              (877
              )
              $
              85,923Capital
                  contribution
              
              
              100,000
              
              
              100
              
              
              (34,100
              )
              
              -
              
              
              -
              
              
              -
              
              
              (34,000
              )Shares
                  to be issued
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (60,000
              )
              
              -
              
              
              (60,000
              )Stock
                  subscription receivable
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (50,000
              )
              
              -
              
              
              (50,000
              )Foreign
                  currency translation adjustments
              
              
              
              
              
              
              
              
              
              
              
              (38
              )
              
              
              
              
              
              
              
              (38
              )Net
                  loss for the year ended December 31, 2005
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (1,781
              )
              
              (1,781
              )**Balance
                  December 31, 2005**
              
              
              10,100,000
              
              
              10,100
              
              
              42,700
              
              
              (38
              )
              
              (110,000
              )
              
              (2,658
              )
              
              (59,896
              )Foreign
                  currency translation adjustments
              
              
              -
              
              
              -
              
              
              -
              
              
              3,619
              
              
              -
              
              
              -
              
              
              3,619Net
                  loss for the year ended December 31, 2006
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (92,812
              )
              
              (92,812
              )**Balance
                  December 31, 2006**
              
              
              10,100,000
              
              $
              10,100
              
              $
              42,700
              
              $
              3,581
              
              $
              (110,000
              )
              $
              (95,469
              )
              $
              (149,088
              )








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






F-6


**ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006**
 
 **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.
 
 **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; 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 Top Interest International and majority owned
        subsidiary Shenzhen Xin Kai Yuan Info Consult Co., Ltd., 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, 2006 and 2005, the transactions of Shenzhen
        were
        denominated in foreign currency and were recorded in Chinese Yuan Renminbi
        (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.
 
 
 
 
 F-7
 
 
 
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006**
 
 **Note
        2 -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**
 
 Translation
        Adjustment
 
 As
        of
        December 31, 2006 and 2005, the accounts of Shenzhen were maintained, and
        its
        financial statements were expressed, in Chinese Yuan Renminbi (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.
 
 
 F-8
   **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006**
 
 **Note
        2 -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED** **)**
 
 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.
 
 Property,
        Plant & Equipment
 
 Property
        and equipment are stated at cost. Expenditures for maintenance and repairs
        are
        charged to earnings as incurred; additions, renewals and betterments are
        capitalized. When property and equipment are retired or otherwise disposed
        of,
        the related cost and accumulated depreciation are removed from the respective
        accounts, and any gain or loss is included in operations. Depreciation of
        property and equipment is provided using the straight-line method for
        substantially all assets with estimated lives of:
 Automobile
                5
                    yearsOffice
                    equipment
                5
                    years
  As
        of
        December 31, 2006 Property, Plant & Equipment consist of the
        following:
  Automobile
                
                $
                11,213Office
                    equipment
                
                
                19,50230,715Accumulated
                    depreciation
                
                
                (9,776
                )$
                20,939
  Depreciation
        expenses were $5,993 and $3,544 for the years ended December 31, 2006, and
        2005,
 
 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. If the net book value of the asset exceeds the related
        undiscounted cash flows, the asset is considered impaired, and a second test
        is
        performed to measure the amount of impairment loss. As of December 31, 2006,
        there is no impairment of intangible assets.
 
 
 
 F-9
 
 
 
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006**
  **Note
        2 -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED** **)**
 
 As
        of
        December 31, 2006 Intangible Assets consist of the following:
  Software
                
                $
                12,44712,447Accumulated
                    amortization
                
                
                (3,643
                )$
                8,804
  Amortization
        expenses were $2,428 and $1,214 for the years ended December 31, 2006 and
        2005.
 Amortization
        expenses for the next 4 years are as follows:
 
 Year
        ending
 
 2007   $2,428
 2008   2,428
 2009   2,428
 2010    1,520
 Total   $8,804
 
 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. Based on its review, the Company believes
        that, as of December 31, 2006 there were no significant impairments of its
        long-lived assets.
  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.
   
  F-10
  
  **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006**
  **Note
        2 -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED** **)**
 
 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, 2006, deferred revenue was $5,980.
  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,
        2006, 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
        years ended December 31, 2006 and 2005.
  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.
   
   F-11
 
   **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006**
  **Note
        2 -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED** **)**
  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 $0.0092 and $0.0002 for
          the
          years ended December 31, 2006 and 2005 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.
  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. The Company has a diversified customer
        base. The Company controls credit risk related to accounts receivable through
        credit approvals, credit limits and monitoring procedures. The Company routinely
        assesses the financial strength of its customers and, based upon factors
        surrounding the credit risk, establishes an allowance, if required, for
        uncollectible accounts and, as a consequence, believes that its accounts
        receivable credit risk exposure beyond such allowance is limited.
  Segment
        Reporting
 
 Statement
        of Financial Accounting Standards No. 131 (“SFAS 131”), “Disclosure about
        Segments of an Enterprise and Related Information” requires use of the
“management approach” model for segment reporting. The management approach model
        is based on the way a company’s management organizes segments within the company
        for making operating decisions and assessing performance. Reportable segments
        are based on products and services, geography, legal structure, management
        structure, or any other manner in which management disaggregates a company.
        SFAS
        131 has no effect on the Company’s consolidated financial statements as the
        Company consists of one reportable business segment. All revenue is from
        customers in People’s Republic of China. All of the Company’s assets are located
        in People’s Republic of China.
 
 
 
 F-12
 
 
 
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006**
  **Note
        2 -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED** **)**
 
 Recent
        accounting pronouncements
 
 In
        February 2006, FASB issued SFAS No. 155, “Accounting for Certain Hybrid
        Financial Instruments”. SFAS No. 155 amends SFAS No 133, “Accounting for
        Derivative Instruments and Hedging Activities”, and SFAF No. 140, “Accounting
        for Transfers and Servicing of Financial Assets and Extinguishments of
        Liabilities”. SFAS No. 155, permits fair value remeasurement for any hybrid
        financial instrument that contains an embedded derivative that otherwise
        would
        require bifurcation, clarifies which interest-only strips and principal-only
        strips are not subject to the requirements of SFAS No. 133, establishes a
        requirement to evaluate interest in securitized financial assets to identify
        interests that are freestanding derivatives or that are hybrid financial
        instruments that contain an embedded derivative requiring bifurcation, clarifies
        that concentrations of credit risk in the form of subordination are not embedded
        derivatives, and amends SFAS No. 140 to eliminate the prohibition on the
        qualifying special-purpose entity from holding a derivative financial instrument
        that pertains to a beneficial interest other than another derivative financial
        instrument. This statement is effective for all financial instruments acquired
        or issued after the beginning of the Company’s first fiscal year that begins
        after September 15, 2006.
 
 In
        March
        2006 FASB issued SFAS 156 ‘Accounting for Servicing of Financial Assets’ this
        Statement amends FASB Statement No. 140, Accounting for Transfers and Servicing
        of Financial Assets and Extinguishments of Liabilities, with respect to the
        accounting for separately recognized servicing assets and servicing liabilities.
        This Statement:
 
 1.
            Requires
                an entity to recognize a servicing asset or servicing liability each
                time
                it undertakes an obligation to service a financial asset by entering
                into
                a servicing contract. 2.
            Requires
                all separately recognized servicing assets and servicing liabilities
                to be
                initially measured at fair value, if practicable. 3.
            Permits
                an entity to choose ‘Amortization method’ or  Fair value measurement
                method’ for each class of separately recognized servicing assets and
                servicing liabilities: 4.
            At
                its initial adoption, permits a one-time reclassification of
                available-for-sale securities to trading securities by entities with
                recognized servicing rights, without calling into question the treatment
                of other available-for-sale securities under Statement 115, provided
                that
                the available-for-sale securities are identified in some manner as
                offsetting the entity’s exposure to changes in fair value of servicing
                assets or servicing liabilities that a servicer elects to subsequently
                measure at fair value. 5.
            Requires
                separate presentation of servicing assets and servicing liabilities
                subsequently measured at fair value in the statement of financial
                position
                and additional disclosures for all separately recognized servicing
                assets
                and servicing liabilities. 
 This
        Statement is effective as of the beginning of the Company’s first fiscal year
        that begins after September 15, 2006. Management believes that this statement
        will not have a significant impact on the consolidated financial
        statements.
 
 
 
 
 F-13
 
 
 
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006**
  **Note
        2 -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED** **)**
 
 In
        September 2006, FASB issued SFAS 157 ‘Fair Value Measurements’. This Statement
        defines fair value, establishes a framework for measuring fair value in
        generally accepted accounting principles (GAAP), and expands disclosures
        about
        fair value measurements. This Statement applies under other accounting
        pronouncements that require or permit fair value measurements, the Board
        having
        previously concluded in those accounting pronouncements that fair value is
        the
        relevant measurement attribute. Accordingly, this Statement does not require
        any
        new fair value measurements. However, for some entities, the application
        of this
        Statement will change current practice. This Statement is effective for
        financial statements issued for fiscal years beginning after November 15,
        2007,
        and interim periods within those fiscal years. The management is currently
        evaluating the effect of this pronouncement on financial
        statements.
 
 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. The management is currently
        evaluating the effect of this pronouncement on financial
        statements.
  In
        February 2007, FASB issued FASB Statement No. 159, The Fair Value Option
        for
        Financial Assets and Financial Liabilities. FAS 159 is effective for fiscal
        years beginning after November 15, 2007. Early adoption is permitted subject
        to
        specific requirements outlined in the new Statement. Therefore, calendar-year
        companies may be able to adopt FAS 159 for their first quarter 2007 financial
        statements.
 The
          new
          Statement allows entities to choose, at specified election dates, to measure
          eligible financial assets and liabilities at fair value that are not otherwise
          required to be measured at fair value. If a company elects the fair value
          option
          for an eligible item, changes in that item's fair value in subsequent reporting
          periods must be recognized in current earnings. FAS 159 also establishes
          presentation and disclosure requirements designed to draw comparison between
          entities that elect different measurement attributes for similar assets
          and
          liabilities.
  **Note
        3-** **NOTE
        RECEIVABLE**
  Note
          receivable includes unsecured cash loan of $83,203 to a former shareholder
          which
          is due on demand with prevailing bank deposit rate. Effective date of the
          note
          was October 11, 2005. Interest incomes were $1,976 and $1,063 for the years
          ended December 31, 2006 and 2005 respectively.
 
 F-14
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006**
  **Note
        4 -** **ACCOUNTS
        PAYABLE AND ACCRUED EXPENSES**
 
 As
        of
        December 31, 2006, account payable and accrued expenses were $34,129, including
        $25,000 accrued professional expenses and $9,129 accrued payroll and welfare
        expenses.
 
 **Note
        5 -** **LOAN
        PAYBLE TO RELATED PARTIES**
  As
        of
        December 31, 2006, total loan payable to related parties were $139,123,
        including a non interest-bearing, unsecured and due on demand note payable
        to an
        officer of Top Interest in the amount of $84,000 and a non
        interest-bearing, unsecured and due on demand note payable to a shareholder
        of
        Artcraft V Inc. in the amount of $55,123.
  **Note
        6 -** **COMMON
        STOCK**
  On
        May
        17, 2005, the Company issued 150,000 shares of common stock to individuals
        for  subscriptions
        receivable of $60,000 ($0.40 per share). However, the physical certificates
        were
        not issued as the company was still waiting for the SB-2 filing to become
        effective. The Company plans to issue the certificates in next few
        months.
 
 On
        November 7, 2005, the Company issued 10,000,000 shares of common stock at
        par of
        $0.001 per share for purchase all of the issued and outstanding shares of
        Top
        Interest from its shareholders.
 
 **Note
        7 -** **STOCK** ****** **EXCHANGE
        AGREEMENT**
 
 On
        November 7, 2005, the Company entered into an Exchange Agreement with Top
        Interest, a company incorporated under the laws of the British Virgin Islands.
        Top Interest owns 70% of equity interest of 188info.com which is incorporated
        under the laws of the People’s Republic of China, and 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.
 
 Pursuant
        to the Stock Purchase and Share Exchange Agreement, the Company purchased
        all of
        the issued and outstanding shares of Top Interest form 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.
 
 As
        a
        result of the exchange agreement, the reorganization was treated as an
        acquisition by the accounting acquiree that is being accounted for as a
        recapitalization and as a reverse merger by the legal acquirer for accounting
        purposes. Pursuant to the recapitalization, all capital stock shares and
        amounts
        and per share data have been retroactively restated. Accordingly, the financial
        statements include the following:
 
 (1)
        The
        balance sheet consists of the net assets of the accounting acquirer at
        historical cost and the net assets of the legal acquirer at historical
        cost.
 
 (2)
        The
        statements of operations include the operations of the accounting acquirer
        for
        the period presented and the operations of the legal acquirer from the date
        of
        the merger.
 
 
 F-15
 
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006**
 
 **Note
        8 -** **INCOME
        TAXES**
 
  The
        Company through its subsidiary, 188info.com, is governed by the Income Tax
        Laws
        of the PRC. Operations in the United States of America have 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 and hence the Company has not recorded any deferred
        assets as of December 31, 2006.
  Pursuant
        to the PRC Income Tax Laws, the Enterprise Income Tax (“EIT”) is at a statutory
        rate of 33%, which is comprises of 30% national income tax and 3% local income
        tax.
  December
                  31, 2006Provision
                  for
                  PRC Income and local taxes
              
              $0U.S
                  Statutory rates
              
              
              34
              %Foreign
                  income not recognized in USA
              
              
              (34
              %)PRC
                  income tax
              
              
              33
              %
  **Note
        9 -** **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.
 
 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, 2006, the Company had no reserves to these
        non-distributable reserve funds since it had no income from operations.
 
 
 
 F-16
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006**
 
 **Note
        10 -** **OTHER
        COMPREHENSIVE INCOME (LOSS)**
 
 Balances
        of related after-tax components comprising accumulated other comprehensive
        income (loss), included in stockholders’ equity, at December 31, 2006 are as
        follows:
  *Foreign
                  Currency Translation Adjustment*Balance
                  at December 31, 2005
              
              $
              (38
              )Change
                  for 2006
              
              
              3,619Balance
                  at December 31, 2006
              
              $
              3,581
 
 **Note
        11 -** **CURRENT
        VULNERABILITY DUE TO RISK FACTORS**
 
 The
        Company’s operations are carried out in the PRC. Accordingly, the Company’s
        business, financial condition and results of operations may be influenced
        by the
        political, economic and legal environments in the PRC, by the general state
        of
        the PRC’s economy. The Company’s business may be influenced by changes in
        governmental policies with respect to laws and regulations, anti-inflationary
        measures, currency conversion and remittance abroad, and rates and methods
        of
        taxation, among other things.
 
 **Note
        12 -** **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 $95,469 as of December 31, 2006 including losses of $92,812and $1,781for
          the
          years ended December 31, 2006 and 2005. The Company’s total liabilities exceed
          its total assets by $118,474. 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 the year ended December 31, 2006, towards obtaining
        additional equity and management of accrued expenses and accounts
        payable.
 
 Management
        believes that actions presently being taken to obtain additional funding
        and
        implement its strategic plans provide the opportunity for the Company to
        continue as a going concern.
    F-17