U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549

                                   FORM 10-KSB

/X/   ANNUAL REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
      ACT OF 1934

                  For The Fiscal Year Ended: December 31, 2004

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

                     For the Transition Period From __ to __

                          Commission File No. 000-50895

                           Lanbo Financial Group, Inc.
                      (Exact name of issuer in its charter)

           Nevada                                           02-0497440
  (State of Incorporation)                          (I.R.S. Employer I.D. No.:)


                      c/o West Windsor Professional Center
                                51 Everett Drive
                                   Suite A-20
                             West Windsor, NJ 08550
                                  609-799-1889
          (Address and telephone number of principal executive offices)

SECURITIES REGISTERED UNDER SECTION 12(B) OF THE EXCHANGE ACT: None.

SECURITIES  REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: Title of each class
to be so registered: Common Stock, par value $0.001 per share

Check  whether  the  issuer  (1) filed all  reports 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. Yes |X| 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
amendments to this Form 10-KSB. |X|

The issuer's revenues for the year ended December 31, 2004 were $40,285,202.

The aggregate market value of the common stock, par value $0.001 per share, held
by  non-affiliates  of the issuer  was  approximately  $29,386,028  based on the
closing  bid price of $1.10 per share of  common  share as  reported  by the OTC
Bulletin  Board on March 28, 2005. As of March 28, 2005,  there were  35,714,285
shares of the issuer's common stock outstanding.

The following documents are incorporated by reference:  None.

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


<PAGE>


                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                          Page
                                                                                                          ----
<S>                                                                                                       <C>
PART I ....................................................................................................1

         Item 1.      Description of Business..............................................................1

         Item 2.      Description of Property.............................................................14

         Item 3.      Legal Proceedings...................................................................14

         Item 4.      Submission of Matters to a Vote of Security Holders.................................14

PART II ..................................................................................................14

         Item 5.      Market for Common Equity and Related Stockholder Matters............................14

         Item 6.      Management Discussion and Analysis and Plan of Operations...........................15

         Item 7.      Financial Statements................................................................15

         Item 8.      Changes in and Disagreements with Accountants on Accounting
                        and Financial Disclosure .........................................................17

         Item 8A.     Controls and Procedures.............................................................17

PART III .................................................................................................18

         Item 9.      Directors and Executive Officers of the Registrant..................................18

         Item 10.     Executive Compensation..............................................................20

         Item 11.     Security Ownership of Certain Beneficial Owners and Management......................21

         Item 12.     Certain Relationships and Related Transactions......................................22

         Item 13.     Exhibits and annual reports on Form 8-K.............................................22

         Item 14.     Principal Accountant Fees and Services..............................................23
</TABLE>

                                       i

<PAGE>

                                     PART I

      Certain   statements   in  this   annual   report  on  Form   10-KSB   are
"forward-looking  statements." These forward-looking statements include, but are
not  limited  to,  statements  about the  plans,  objectives,  expectations  and
intentions  of Lanbo  Financial  Group,  Inc., a Nevada  corporation,  and other
statements  contained  in this  annual  report  that are not  historical  facts.
Forward-looking  statements in this annual report or hereafter included in other
publicly available documents filed with the Securities and Exchange  Commission,
reports to our stockholders and other publicly  available  statements  issued or
released by us involve known and unknown risks,  uncertainties and other factors
which could cause our actual  results,  performance  (financial or operating) or
achievements  to differ  from the  future  results,  performance  (financial  or
operating)  or  achievements   expressed  or  implied  by  such  forward-looking
statements. Such future results are based upon management's best estimates based
upon current conditions and the most recent results of operations.  When used in
this  annual  report,  the  words  "expect,"   "anticipate,"  "intend,"  "plan,"
"believe," "seek," "estimate" and similar  expressions are generally intended to
identify forward-looking  statements,  because these forward-looking  statements
involve risks and  uncertainties.  There are important  factors that could cause
actual  results to differ  materially  from those  expressed or implied by these
forward-looking  statements,  including our plans, objectives,  expectations and
intentions and other factors discussed under "Risk Factors."

ITEM 1. DESCRIPTION OF BUSINESS

                                   THE COMPANY

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

      We intend to use the  strength  of our  Newstar  real  estate  business to
capitalize on the continued privatization trend in residential housing and other
state-owned enterprises in China. We believe that our management's experience in
acquiring  state-owned  enterprises,  coupled  with  greater  access for Chinese
businesses to public capital markets, will provide a competitive  advantage.  We
have   entered   into   letters  of  intent  for  three   business   acquisition
opportunities.  We  prefer  to  concentrate  on the  acquisition  of  additional
state-owned  and private  enterprises,  focusing on  businesses  engaged in real
estate development,  customer electronics and the manufacturing and distribution
of industrial products.

      From 1999 through  2004,  our sales from  property  development  grew from
approximately  $2.4 million to approximately  $40.3 million,  and net income has
grown to over $4.5 million from a loss in 1999.

      Our corporate  offices are located at 6 East  Friendship  Road, Han Garden
4th  Floor,   Xi'an,   China.   Our   telephone   number  at  that  location  is
86-29-8258-2644. We also have an office in the United States at c/o West Windsor
Professional  Center, 51 Everett Drive, Suite A-20, West Windsor,  NJ 08550. Our
telephone number at that location is 609-799-1889.


                                       1
<PAGE>

Background and History

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

      LFIC and Newstar

      LFIC was  incorporated  in September  2003 in the territory of the British
Virgin  Islands.  The  authorized  capital of LFIC is  $10,800,000  divided into
10,800,000  registered  shares  with a par value of $1.00 per share.  LFIC is an
investment  holding  company  and does not have any  activities  other than some
general  administrative  expenses.  As of September  30, 2004,  LFIC through its
wholly  owned  subsidiary,  Newstar,  principally  engaged in the  construction,
development, and sale of residential units in China.

      Newstar was established during May 1992 as a state-owned enterprise, whose
former name is Xian New Star Group Real  Estate  Development  Co.  Ltd,  and was
formerly  subjected to logistics  department  of LAN Zhou  Military  area of the
People's Liberation Army of China.  Newstar was reorganized as a limited company
with equity capital invested by management  personnel in September 1999. Newstar
is a Chinese registered limited liability company with a legal structure similar
to a regular  corporation  and a limited  liability  company.  Its  Articles  of
Association  provide  for a 54  year  term  beginning  September  7,  1999  with
registered capital of approximately US$3,140,000 (RMB 26,000,000).  On March 28,
2002,  the  registered   capital  of  Newstar  was  increased  to  approximately
US$6,050,000 (RMB 50,000,000).

      On  September  16,  2003,  LFIC  acquired  100%  interest  in Newstar  for
US$6,840,000  (RMB  56,505,430).  In  accordance  with  laws  governing  foreign
acquisitions of a Chinese registered  limited liability  company,  there are two
payment terms for this purchase.  The first payment of 15% of the total purchase
price of Newstar was paid on December  31, 2003,  and the second  payment on the
remaining  balance will be payable by June 30, 2005. Lanbo obtained the approval
of the  Foreign  Trade and  Economic  Cooperation  Commission  of Xi'an  City on
December 22, 2003.  The business term is 50 years starting on December 24, 2003.
Newstar's registered capital is $6,050,000 (RMB 50,000,000) and total investment
is approximately  $6,840,000 (RMB  56,505,430).  The first payment of $1,080,000
was made on  December  30,  2003 from  Lanbo to  Newstar.  This  payment  was in
accordance with the requirement of the acquisition,  but the funds have not been
disbursed to the previous stockholders of Newstar.

      Reverse Merger/Takeover

      On November 3, 2004, we consummated the  transactions  contemplated by the
Exchange Agreement,  dated as of September 29, 2004 and subsequently  amended on
October 18, 2004, by and among our company,  LFIC, the LFIC Stockholders and KRM
Fund.

      Pursuant to the terms of the  Exchange  Agreement,  we acquired all of the
outstanding  capital  stock of LFIC in  exchange  for our  issuance  to the LFIC
Stockholders and KRM Fund of 19,285,714 shares of our common stock.  Immediately
following  the  closing  of the  Exchange  Agreement,  we issued  an  additional
13,928,571  shares of our common stock to various  individuals and entities (the
"New Stockholders") who had provided consulting,  legal and advisory services to
LFIC.  The issuance of our shares of common stock to the LFIC  Stockholders  and
the New  Stockholders was exempt from  registration  under the Securities Act of
1933, as amended ("Securities Act") pursuant to Section 4(2) thereof.

      Immediately  following the closing of the Exchange Agreement,  LFIC became
our  wholly-owned  subsidiary  and we had a total of  35,714,285  shares  of its
common stock issued and outstanding. LFIC Stockholders owned approximately 54.0%
of the issued and outstanding  shares of our common stock,  our  stockholders of
immediately   prior  to  the  closing  (the   "Existing   Stockholders")   owned
approximately 7.0% of the shares of our issued and outstanding common stock, and
the New  Stockholders  owned  approximately  39.0% of our issued and outstanding
common stock.


                                       2
<PAGE>

      Effective  as of the closing of the Exchange  Agreement,  Kevin R. Keating
resigned as our sole director. Our current board of directors consists of Pingji
Lu,  Xiaohong  Feng,  Yaru Du and  Genxiang  Xiao  (the  "Management  Members").
Pursuant to the Exchange  Agreement and a certain Voting  Agreement by and among
LFIC,  the LFIC  Stockholders,  the New  Stockholders  and KRM Fund (the "Voting
Agreement"),  one of the vacant  director  positions  will be filled by a person
designated  by KRM Fund,  which  person shall be an  independent  director and a
financial expert, qualified and available to serve on our audit and compensation
committee,  and  otherwise  acceptable  to  the  LFIC  Stockholders  ("KRM  Fund
Designee").  Under the terms of the Voting Agreement,  the LFIC Stockholders and
the New  Stockholders  have agreed to vote their  shares of our common  stock to
elect the KRM Fund  Designee to our board of directors  for a period of one year
following the closing of the Exchange Agreement. Under the terms of the Exchange
Agreement,  the  remaining  two vacant  director  positions  will be filled by a
persons selected by the Management Members and will be independent directors.

Industry and Market Overview

      People's Republic of China

      China has  experienced  rapid  economic  growth in the last twenty  years.
According to China's  Department of Commercial  Affairs,  China's gross domestic
product  ("GDP")  achieved  an  annual  growth  rate of 9.7%  from 1980 to 1999.
According to the National  Statistics  Bureau of China, the GDP of China in 2004
was RMB 13,651.5 billion, up 9.5% over the previous year.

      We believe that the primary  reasons behind China's strong economic growth
are (i) a  robust  domestic  consumer  demand  resulting  from  rising  consumer
confidence and disposable  income,  (ii)  increasing  foreign direct  investment
after accession into the World Trade Organization,  (iii) surging investments in
real estate and  infrastructure,  as  exhibited  by a boom in the real  property
market. We believe that a paradigm shift is taking place in China, characterized
by some major economic and political  improvements,  such as a de-politicization
of Chinese  society,  growing private  business,  an emerging  unified  national
market and integration into the global value chain.

      Real Estate Industry

      China is in the midst of a rapid urbanization process.  There are now over
400 million Chinese living in urban areas.  Despite policies to limit population
growth,  China's urban population has been increasing and real estate investment
has been thriving.  Real estate investment has grown considerably,  but not at a
rate we believe is  excessive  relative to GDP growth.  We believe that there is
still strong growth potential in Chinese real estate  investments.  According to
the  National  Statistics  Bureau  of China,  real  estate  investment  in China
increased  from RMB  15,000  million  in 1978 to RMB  401,017  million  in 1999.
Southnet  News reports in China's  Youth  Newspaper  that from the late 1990s to
2004,  there was an annual  average  growth  rate of  approximately  20% in real
estate investments.

      Since  the late  1990s,  Chinese  government  reforms  in urban  and rural
housing  policies have promoted the concept of the family  residence in allowing
individuals to purchase their own homes,  and  opportunities  for financing such
purchases  through banks and other funds have become  available to  individuals.
Previously,  homes were owned by companies for their employees, and there was no
market for real estate at the individual level. A viable and vibrant real estate
market has  emerged  with these  reforms.  The  effect of the  emerging  housing
industry on the  financial  sector was  considerable.  According to the National
Statistics Bureau of China, in 2004 individuals accounted for 93.3% of the total
sales of commercial buildings.

      Geographically,  our  core  property  business  is  based  in  Xi'an,  the
industrial  heartland of western China. Xi'an is an ancient city, well known for
its terracotta soldiers.  Xi'an is also the largest city in western China with a
population of eight million and is an important  technological,  commercial  and
cultural  center.  Xi'an  plays  an  important  strategic  role  in the  Chinese
government's "Going West" policy.

      Acquisition Opportunities

      We  believe   that  the  economic   growth  in  China  opens   acquisition
opportunities.  We believe that  diversification  by acquisition of undervalued,
privately-owned,  small and mid-sized  enterprises (SMEs) and former state owned
enterprises  (SOEs) in businesses with  potentially  high growth is an effective
strategy to profit from the economic growth in China. In particular,  we believe
that we can take  advantage of such  opportunities  in the consumer  electronics
sectors.


                                       3
<PAGE>

      China is undergoing a national  privatization scheme for SOEs. The Chinese
government  is  encouraging  private and foreign  investors to take over SOEs at
attractive  valuations (less than net book value in some cases) despite the fact
that some SOEs are in good  operating  condition.  The  Chinese  government  has
promulgated a series of incentive  policies for foreign investment in China like
tax rebates.  We believe that a  cost-effective  acquisition of undervalued  SOE
assets has significant  potential for future capital gains.  Xi'an is also known
for  its   concentration   of  SOEs,   which  we  believe  creates   acquisition
opportunities for us as these SOEs become privatized by the Chinese government.

      At the same  time,  China is  already  becoming  a very  important  global
marketplace with its low labor cost and the largest potential consumer market in
the  world.  A large  number of small and  medium  enterprises  (including  some
privatized SOEs) are growing at exponential rates. With such rapid growth,  many
SMEs  are  running  short of  capital  and need  various  alternative  financing
sources. Given the limited bank resources available to SMEs, equity financing is
an  alternative  way that has  provided  the private and foreign  investors  the
opportunity to take over  substantial  portions of equity in these  companies at
attractive valuations.

Current Projects

      Junjing Garden Project

      The Junjing  Garden  project is a community  development  project  with 15
residential buildings in Xi'an City, Shaanxi Province,  the People's Republic of
China.  Construction  on the first five  buildings of the Junjing Garden project
was completed at the end of our fourth quarter for 2004, and construction on the
remaining  buildings is scheduled for  completion at the end of fiscal 2005. The
combined  salable areas of our Xinxing  Gangwan and Junjing Garden  projects may
reach up to 90,000  square  meters.  The sale price ranges from $386 to $483 per
square meter.  The sales for our current projects are subject to factors such as
housing design, location, and sales price.

      Newstar has entered in a RMB Fund Borrowing  Contract,  dated November 30,
2004 (the "Loan  Agreement"),  with the  Sub-branch of China  Construction  Bank
located at Xi'an  Zhuque  Road  ("Construction  Bank") and a Mortgage  Contract,
dated November 25, 2004 (the "Mortgage"), with Construction Bank.

      The  Loan  Agreement  provides  for a  loan  of RMB 40  million  from  the
Construction  Bank to be applied to the  construction  investment of our Junjing
Garden  project.  The loan was  funded on  December  7,  2004,  has a term of 30
months, and bears a fixed monthly interest rate of 5.76%,  calculated on a daily
basis.  The loan is subject to a fixed monthly  interest rate of 11.52% if it is
not used for the  construction  investment of the Junjing  Garden  project and a
fixed monthly interest rate of 8.64% on overdue amounts. Newstar may prepay part
of or all of the principal of the loan with 30 days notice to Construction Bank.
The  Loan  Agreement  contains  customary  covenants,  including  disclosure  to
Construction Bank of certain of Newstar's financial and accounting  information,
and  customary  default  provisions.  The loan is secured by the property of and
work in progress on the Junjing Garden project.

      Xidu Tower

      Xidu Tower is a 26 floor  commercial and  residential  structure (with two
floors underground)  situated on 4200 square meters of land in North Jinhua Road
in Xi'an City. Newstar entered into a Transfer Agreement, dated November 4, 2004
(the  "Transfer  Agreement"),  with  Shaanxi  Province  International  Trust and
Investment  Co. Ltd. (the  "Assignor")  and the Xincheng  District  Commerce and
Trade Bureau of Xi'an City (the  "Bureau")  pursuant to which the Assignor shall
transfer  Xidu Tower to Newstar  for  payment of  transfer  expenses  of US$10.8
million  and  approximately  RMB 20.5  million  (a total of RMB  110.0  million.
Newstar paid an initial  installment of US$ 3.6 million and RMB 33.0 million for
the transfer as of January 2005, and the Assignor has agreed to accept  payments
on the  remainder  of the  transfer  expenses  at a later  date than  originally
provided for in the Transfer  Agreement.  The planning and architectural  design
for our  project  on this land  have been  completed.  We  currently  anticipate
opening  quotation and distribution in the second quarter of 2005 and completing
the project in fiscal 2005.


                                       4
<PAGE>

      Tangdu Machine Factory

      In April 2003, Newstar  successfully  acquired the Tangdu Machine Factory.
The Tangdu Machine Factory is situated on more than 60,000 square meters of land
on Jiangong Road in Xi'an City. The documentation for the land transfer has been
completed.  Newstar currently  intends to develop as a residential  community on
this  land,  and we  anticipate  that  the  project  will  begin  in 2007 and be
completed in 2009.

Competition

      We believe that the economic  globality and high growth of China's economy
has  made  market   competition  more  fierce  while   simultaneously   creating
opportunities  for  developing  enterprises.   Competition  is  more  fierce  in
industries in China with higher  potential for growth.  We believe that the real
estate  development in which we are engaged and customer  electronic  sectors in
which we intend to be engaged in through acquisitions are just such industries.

      There are four other real estate  companies  in Xi'an  similar in scale to
our subsidiary,  Newstar.  Competitive factors in our market include the ability
to reserve land for  development,  access capital and develop  quality  products
recognized by consumers.  The Chinese  government has instituted a "Bid, Auction
or  Quotation"  policy which has  increased the cost of land. We believe that we
have more  advantages  and  experience  than our  competitors  in obtaining land
through the acquisition of state-owned enterprise.  For example, we obtained the
land for the In Home project  through the  acquisition  of a factory that was an
SOE. We have reserved more than 60,000 square meters of land in our  acquisition
of the Tangdou Machine Factory.  The large  state-owned real estate  development
companies in our markets, however, often have a competitive advantage over us in
obtaining land through the government.

      We also believe that we have  advantages over our competitors in obtaining
financing.  We believe that we have  maintained good relations with the banks we
have dealt with and, based on our history of good credit,  banks have offered us
favorable  terms on loans.  This has  reduced  our  funding  cost  considerably.
Additionally, as a publicly traded company on a United States market, we believe
that we have better access to capital markets than our competitors.

      On product design,  we have employed  well-known  designers,  such as WSP,
based in Germany,  to develop  residential  houses with  attractive  ergonomics,
technology  and health  and  environmental  protection  for our  consumers.  Our
company  has  won  numerous   awards  for  our   projects,   including  for  our
Xinxing-Mingyuan and Xinxing-Junjingyuan  projects, which we believe demonstrate
our  innovation  and  ability to  satisfy  consumer  requirements  and give us a
competitive advantage in the real estate industry in the Shaanxi province.

      In the  consumer  electronic  industry,  we will face two  major  types of
competitors in China if we succeed in expanding our business into that industry.
First,  foreign  companies  founded  by  well-known   international   electronic
companies will have significant market shares with strong capital and technology
support  from  their  parent  companies.  Second,  Chinese  domestic  electronic
companies,  which are not as  advanced  as their  international  competition  in
technology,  may have  competitive  advantages in manufacture and marketing.  We
cannot assure that we will be able to  successfully  compete against the greater
resources of the foreign companies or the focus of the domestic companies.

Business Strengths

      Innovative Financing Plans and Cost Effective Acquisition Strategies. With
limited  capital  resources and land  reserves,  we have  developed  real estate
projects  with  innovative  financing  plans  and  cost  effective   acquisition
strategies such as  land-apartment  trade offs and acquisitions of bankrupt SOEs
with  sizeable  land  reserves.  By the  end of  2003,  we had  completed  seven
commercial and residential  real estate  projects.  Our sales increased ten fold
from  $2.35  million  in 2000 to $21.24  million in 2003.  Our  developed  areas
totaled  70,844 square meters in 2004 and land  reserves  reached  60,000 square
meters.  Due to our growing influence in the local market,  the Xi'an government
is  currently  seeking  collaboration  with  us  on a  number  of  key  property
development  projects  such as Xi'an Science and  Technology  Park and Logistics
Park.


                                       5
<PAGE>


      Efficiency  in quality and cost  control.  We believe that market share is
best attained  through high quality  products and  services.  We believe that we
have established an  all-encompassing  approach to quality and cost control over
our subsidiaries and  subcontractors.  From the fundamental  corporate level, we
utilize  statistical   methodologies  for  production   efficiency  and  quality
measurement.   We  implement  advanced  quality  control  methods  and  internal
information  management  systems.  We have  adopted  the ISO9002  ISO9001:  2000
standard operation system and ISO14001: 1994 operation system.

      Experienced  Management.  Our  management  team is  comprised  of seasoned
professionals in the real estate  development  industry,  who have experience in
turning struggling businesses profitable.  Approximately,  54% of our staff have
master's  degrees or above and 60% are experienced in Chinese and  international
markets. Most of our staff have experience in mergers and acquisitions,  venture
capital, real estate, infrastructure projects, and high technologies. We believe
that the strength of our  management  team comes from their  innovative  spirit,
entrepreneurial outlook, strong business skills, and relevant expertise.

      A Leading  Name in the Real Estate  Market.  In the current  Chinese  real
estate market,  we believe that we are strong in adhering to quality control and
the client service  principle in the  properties we develop.  We believe that we
have  developed  into a  premium  image  in our  operating  market,  and we have
received  awards in recognition of our  performance.  In September 2003, we were
awarded "the top ten performance enterprise in Xi'an" by both the Association of
Real  Estate of Xi'an and the Center of Societal  and  Economic  Development  in
Xi'an . In December  2004,  we were  recognized  as one of the "Top Ten Flagship
Real Estate  Enterprises of Shaanxi Province" by the Association of Shaanxi Real
Estate.  During  Newstar's ten years of business,  we have received more than 25
awards.

      A  Successful  Track  Record of Real  Estate  Acquisitions.  Historically,
acquisitions  have been an integral part of our property  development  strategy.
Most of our land used and reserves has come from  underperformed SOEs located in
urban areas of China.  We have in the past sought  cost  effective  ways to take
over  the  targeted   companies  and  their  land.  During  the  course  of  our
acquisitions,  we have accumulated  extensive  hands-on  experience in acquiring
SOEs.  All of our  acquisitions  and their ensuing  property  projects have been
profitable to date.

      Good  Bank  Relations.   Banking   facilities  are  limited  for  property
development  in China because  Chinese  banks are selective  towards real estate
developers  and  private  companies.  We believe  that we have  maintained  good
relations  with the banks we have dealt with and,  based on our  history of good
credit,  banks have  offered us favorable  terms on loans.  This has reduced our
funding cost considerably.  Newstar was recognized as a "Good Credit Enterprise"
in 2002,  2003 and 2004 by the China Bank Guild,  comprised of 27 banks.  It was
also  recognized as a "AAA enterprise in the Shaanxi  construction  industry" in
July 2004 by the Shaanxi Province Enterprise Credit Association.

      Comprehensive  Acquisition  and Risk Management  System.  We have formed a
comprehensive  set of  acquisition  and  risk  management  systems,  both on the
operational  and  managerial  level.  On  the  operational   level,  we  have  a
professional and experienced team to screen and select  potential  projects.  On
the corporate level, we have a Strategic  Decision Committee and Risk Management
Committee  comprised of experts from specific  industry fields and financial and
legal advisors in China to evaluate proposed projects. We believe that our board
of directors'  oversight further enhances the risk management on decision making
and supervision of performance. We believe that this system has proven effective
in our past projects.  Considering  the basic elements common to acquisitions of
SOEs  in  China,  we  believe  that  this  system  can  be  readily  applied  to
acquisitions of companies in other industries.

         Depth of Human Capital.  Newstar, our operating company, was originally
an  affiliated  company  of the PRC army.  We have  transitioned  into a private
company  while  still  retaining  key  management  members who used to work in a
military  environment.  As such,  we have  applied  some  approaches  from  this
military  background to our business  operations  regarding target  orientation,
efficiency and  discipline.  We believe that this corporate  culture is critical
for a holding company managing different subordinate entities and projects.


                                       6
<PAGE>


Business Strategy

      Continue  Growth of Core Real Estate  Development  Business.  We intend to
continue  to grow our core  real  estate  development  business.  Simultaneously
continuing our residential real estate development work, we intend to also focus
on the  operational  development  and  utilization  of land and  carry  over our
business  strategy from residential  development  into land operation  projects.
With land operation  projects,  we would focus on commercial and tourism related
project  development.  We intend to continue the steady  development of Xi'an as
our home base, but we intend to gradually penetrate and expand our business into
second class cities in the Yangtze Delta and Bo Sea Bay.

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

      Diversification through Strategic Acquisitions. We intend to evolve into a
diversified  industrial  conglomerate  through low cost  acquisition  strategies
focusing selectively on SOEs and SMEs in high growth sectors in China. We intend
to acquire strategic assets in the fast growing electronic  consumer industry in
order to establish a  counter-cyclical  and  complementary  asset portfolio.  We
currently have letters of intent for three  acquisitions  of Chinese  companies,
subject to our obtaining financing for these acquisitions.

      Investment  in  Long-Term  Growth  Opportunities.   We  believe  our  core
competency lies in the acquisition and management  skills  evidenced in our past
history  of  successful  executions  of  real  estate  acquisitions.  Given  the
long-term return nature of the real estate business,  our strategy is to acquire
SOEs and recently privatized companies at attractive  valuations,  and then grow
the business.

      We divided our procedure of strategic buyouts into three parts.  First, we
intend to target  companies with large  potential  markets,  strong  competitive
advantages  and the  potential  for  high  growth.  Second,  through  horizontal
consolidation and vertical consolidation,  we intend to continue to complete our
internal management,  generate our corporate culture, develop our company into a
profitable and strong diversified investment holding company. Thirdly, we intend
to expand our market  share,  enhance  dominance in the  industries we enter and
utilize economies of scale to generate core competitive advantages in China.

Recent Developments

      We entered into three letters of intent, each dated November 30, 2004, for
the acquisition of 55% of the business of Nanjing Damei Real Estate  Development
Co., Ltd. ("Nanjing Damei"); 65% of the business of Shenzhen Qingbao Science and
Technology  Co.,  Ltd.  ("Shenzhen  Qingbao") and 60% of the business of Weifang
Gongda  Tele-communications Co., Ltd. ("Weifang Gongda"). Under the terms of the
letters of intent,  the closing of the  transactions are anticipated to occur in
the first half of 2005, subject to our obtaining financing. In each transaction,
we have  agreed  to pay  consideration  in the form of stock to  certain  of the
target company's stockholders and make a capital contribution to a joint venture
to be formed by the target company and us.

      We cannot make any assurances  that each of the  acquisitions  will close.
The  closing  of each  of the  acquisitions  remains  subject  to our  obtaining
financing  for the capital  contributions  we will be  obligated  to make to the
joint ventures we will form with each of the target companies. Additionally, the
closing of each acquisition  remains subject to the negotiation and execution of
a  definitive  agreement,  the  completion  of due  diligence  in  all  respects
satisfactory  to us, the  completion of a certified  audit of the target company
according to U.S.  GAAP and the receipt of all required  approvals  and consents
from governmental authorities and agencies and third parties. The final purchase
price  for each  acquisition  will be  subject  to  adjustments  according  to a
financial valuation of each target company.

      Nanjing  Damei is a  privately-held  real  estate  development  company in
Nanjing,  Jiangsu  Province,  China,  mainly engaged in residential  real estate
development  since its  inception  in 1994.  The Nanjing  Damei letter of intent
anticipates  that we will  acquire  55% of the  business  of  Nanjing  Damei  in
consideration for the issuance of $1.0 million in convertible preferred stock of
our company  (bearing 5% interest per annum) to the Nanjing  Damei  stockholders
and a capital  contribution  of $12.0  million in cash to a joint  venture to be
created by Nanjing  Damei and us. It is  anticipated  that $2.0  million will be
paid at the  closing,  $2.436  million  will be paid within six months after the
closing, and the balance to be paid within twelve months after the closing. $0.5
and $0.5 million of the  convertible  preferred stock will be issued as series A
and series B, respectively (each series is further described below).


                                       7
<PAGE>


      Shenzhen   Qingbao  is  a   privately-held   technology  firm  focused  on
manufacturing  various cards used in computers,  such as sound cards and display
cards.  Shenzhen  Qingbao  also  engages  in system  integration  and  design of
networking  systems,  application  of  networking  production,   development  of
software and  hardware,  and the  assembly  and  marketing on an agency basis of
computers and their accessories and electronic components. The Shenzhen Quingbao
letter  of  intent  anticipates  that we will  acquire  65% of the  business  of
Shenzhen  Quingbao  in  consideration  for  the  issuance  of  $2.0  million  in
convertible preferred stock of our company to the Shenzhen Quingbao stockholders
and a capital  contribution  of $5.12  million in cash to a joint  venture to be
created by Shenzhen  Quingbao and us. It is anticipated  that $1.68 million will
be paid at the closing, and the balance will be paid within six months after the
closing. $1.0 and $1.0 million of the convertible preferred stock will be issued
as series A and series B, respectively.

      Weifang  Gongda  is  a   Sino-foreign   joint  venture   specializing   in
manufacturing  Electrets Condenser Microphones (ECM). Weifang Gongda microphones
can be  found  in a wide  number  of  products  ranging  from  audio  and  video
conferencing  systems to computer monitors and cellular phones.  The microphones
are also used with  different  Bluetooth  technology  items.  The Weifang Gongda
letter of intent anticipates that we will acquire 60% of the business of Weifang
Gongda  at  closing  in  consideration  for  the  issuance  of $2.4  million  in
convertible  preferred  stock of our company  (bearing 5% interest per annum) to
the Weifang Gongda  stockholders  and a capital  contribution of $2.6 million in
cash  to a  joint  venture  to be  created  by  Weifang  Gongda  and  us.  It is
anticipated  that $0.9 million will be paid at the  closing,  and the  remaining
$1.7 million  will be paid within six months  after the  closing.  $1.2 and $1.4
million of the convertible preferred stock will be issued as series A and series
B, respectively.

      The convertible  preferred stock to be issued in the acquisitions  will be
divided into two classes,  with series A convertible  preferred stock redeemable
one  year  after  the  closing  of the  applicable  acquisition,  and  series  B
convertible  preferred stock redeemable  twenty-four months after the closing of
the applicable acquisition.

Government Regulation

      We are subject to all  applicable  laws,  policies  and  regulations  that
govern the  financial  guarantee  industry in China  adopted by China's  central
bank,  the People's  Bank of China  ("PBOC"),  which sets  monetary  policy and,
together with the State  Administration  of Foreign  Exchange,  foreign-exchange
policies.  According to the 1995 Central Bank law, the State  Council  maintains
oversight of PBOC policies.  As a U.S.  public  company,  we are also subject to
Federal and state securities laws.

Employees

      As of December 31, 2004, we had 84 full-time employees.  Our employees are
not represented by a labor union and are not covered by a collective  bargaining
agreement.  We believe that our employee  relations  are good.  We contract with
third  parties on  various  aspects of our land  development  projects,  such as
design and construction.

                                  RISK FACTORS

      In addition to the other  information in this annual report,  our business
is subject to numerous risks which should be considered  carefully in evaluating
our business and  prospects.  The following  matters,  among others,  may have a
material adverse effect on our business, financial condition, liquidity, results
or operations or prospects, financial or otherwise. Reference to this cautionary
statement in the context of a  forward-looking  statement or statements shall be
deemed to be a statement that any one or more of the following factors may cause
actual results to differ materially from those in such forward-looking statement
or statements.


                                       8
<PAGE>


Risks Related to Our Business

      Our  revenues may vary from quarter to quarter due to when our real estate
projects are completed.

      We sell residential real estate units in real estate development projects.
We  recognize  revenue  when a sale is  consummated,  which only  occurs  when a
project is completed. As with revenue, we recognize cost of sales when a sale is
consummated,  which we recognize only when a project is completed. Our sales are
not verified until the completion of our real estate development  projects.  Our
revenues  are  subject  to the  timing  of  when  our  projects  are  completed.
Additionally,  fluctuating  or  inconsistent  demand  for  our  products  by our
customers may affect our revenues.

      Our growth strategy to acquire companies may not be successful,  and if it
is not, our ability to generate revenues through these vehicles may be impaired.

      One  component  of our growth  strategy  is to evolve  into a  diversified
industrial   conglomerate  through  low  cost  acquisition  strategies  focusing
selectively  on SOEs and SMEs in high growth  sectors in China.  There can be no
assurance that we will be able to  successfully  identify,  acquire on favorable
terms or integrate such companies. If any acquisition is completed, there can be
no  assurance  that such  acquisition  will  enhance  our  business,  results of
operations or financial  condition.  Any such future acquisitions may be subject
to a number of risks, including:

      o     the diversion of management time and resources;

      o     the difficulty of  assimilating  the operations and personnel of the
            acquired companies;

      o     the potential disruption of our ongoing business;

      o     the difficulty of incorporating  acquired technology and rights into
            our products and services;

      o     unanticipated expense related to technology integration;

      o     difficulties in maintaining uniform standards,  controls, procedures
            and policies;

      o     the  impairment of  relationships  with employees and customers as a
            result of any integration of new management personnel;

      o     potential unknown liabilities associated with acquired businesses.

      Further,  in connection with these acquisitions we may issue shares of our
common stock or securities  convertible  into our common stock.  If the value of
our stock declines,  or other adverse circumstances arise, we face the risk that
the parties to these  acquisitions  or joint ventures may seek ways to terminate
the  transaction,   or  may  hinder  or  prevent  us  from  accessing  important
information  regarding the financial and business operations of these companies.
Any rights we may have to specific  performance,  or to seek an injunction under
Chinese law, in either of these cases, are severely limited, and without a means
of recourse by virtue of the Chinese legal  system,  we may be unable to prevent
these situations from occurring. Moreover, the resources expended in identifying
and consummating acquisitions may be significant.  Any acquisitions we decide to
pursue  may be  subject  to the  approval  of the  relevant  Chinese  government
authorities,  as well as any  applicable  Chinese  rules  and  regulations.  The
occurrence  of any such  events  could  have a  material  adverse  effect on our
business, financial condition and results of operations.

      We  may  in  the  future  face  increased   competition   for  acquisition
opportunities, which may inhibit our ability to consummate suitable acquisitions
on terms favorable to us. We may require additional debt or equity financing for
future  acquisitions or joint ventures,  which financing may not be available on
terms favorable to us, if at all. We have entered into letters of intent for the
acquisition of Nanjing Damei,  Shenzhen Qingbao and Weifang Gongda.  The closing
of each of the acquisitions  remains subject to our obtaining  financing for the
capital contributions we will be obligated to make to the joint ventures we will
form with each of the target  companies.  While we expect these  acquisitions to
strengthen our company,  the anticipated  benefits of these acquisitions may not
be achieved.


                                       9
<PAGE>


      If our customers do not accept our proposed  designs,  our revenue will be
adversely affected.

      We dedicate  personnel,  management and financial  resources to developing
and designing residential housing projects for our customers. Our time frame for
the development and construction of major real estate projects  typically ranges
from one to three years. If our customers do not accept our proposed designs, we
will fail to  capitalize  on the  invested  resources,  time and effort  that we
expended on a project and our revenue would be adversely affected.

      Our growth and ability to generate  revenue  could be  curtailed if we are
unable to obtain required additional financing.

      We have  entered  into  three  letters of intent  for the  acquisition  of
Nanjing Damei,  Shenzhen Qingbao and Weifang Gongda.  The closing of each of the
acquisitions  remains  subject  to  our  obtaining  financing  for  the  capital
contributions  we will be obligated  to make to the joint  ventures we will form
with each of the target  companies.  We cannot make any assurances  that each of
the acquisitions  will close or that we will achieve our investment  objectives.
We will need to raise  additional  funds  through  public or private  financing,
which may include the sale of equity  securities.  The  issuance of these equity
securities  could  result in dilution to our  stockholders.  If we are unable to
raise capital when needed,  our business strategy will be affected,  which could
severely  limit our  ability to grow the  company  and our  ability to  generate
revenue.

      Additionally,  if we are unable to achieve our investment objectives, your
investment in our company will be concentrated  in a relatively  small number of
projects  and  industry  sectors in China.  Such  concentration  in projects and
sectors may compound any negative  impact to our business,  financial  condition
and results of operations by factors adversely affecting our industry or market.

      Our investment objectives may subject you to risks in multiple industries.

      We are looking to acquire companies operating in various industries. If we
achieve our  investment  objectives,  your  investment  in our  company  will be
subject to the risks of  industries  beyond real  estate.  While we believe that
diversification  will help establish a counter-cyclical  and complementary asset
portfolio, we cannot assure you that this will be the case.

      Moreover,  if we achieve our investment  objectives,  we currently plan on
maintaining the current  management teams of the acquired  companies  because we
believe  they know  their  company's  business  and  industry  well.  We cannot,
however,  eliminate  the risks of our  management's  oversight  of  subsidiaries
operating in diverse industries which they may not be familiar with.

      We may increase our  indebtedness  to fund our  operations  and investment
objectives, which could adversely affect our financial condition.

      To fund our operations and  investment  objectives,  including our current
real estate development projects and future  acquisitions,  we may need to raise
additional  funds  through  public or  private  financing,  including  taking on
additional indebtedness. We cannot assure you that we will incur indebtedness on
commercially  reasonable terms or at all. Additional indebtedness we take on may
make us more  vulnerable to general  adverse  economic and industry  conditions;
require us to dedicate a substantial portion of our cash flow from operations to
payments on our indebtedness, thereby reducing the availability of our cash flow
to fund working  capital,  future  investments,  capital  expenditures and other
general corporate  purposes;  limit our flexibility in planning for, or reacting
to, changes in our business and the industry in which we operate;  place us at a
competitive  disadvantage  compared to our competitors  that have less debt; and
limit our ability to borrow additional funds.  Additionally,  the instruments or
agreements for indebtedness  that we may incur may limit our ability to operate,
change or expand our business,  make future  investments  and make dividends and
distributions to our stockholders.


                                       10
<PAGE>


      Our investment in current and future  subsidiaries not listed on any stock
exchange could impair our exit from such investments.

      Our current  investment  in our  subsidiaries  are not, and if we meet our
investment  objectives,  our future  investment in subsidiaries  will not be, in
companies  listed on any stock exchange,  and we cannot assure you that any such
subsidiaries will be listed on a stock exchange in the future.  The liquidity in
our  investments  is and will be  limited.  This could  impair our exit from our
current and future investments.

      The industry in which we compete is highly concentrated.

      We expect  competition  to persist and intensify in the future.  There are
four other real estate  companies in Xi'an  similar in scale to our  subsidiary,
Newstar.  Competitive  factors in our market include the ability to reserve land
for  development,  access  capital and develop  quality  products  recognized by
consumers.  We believe  that we have more  advantages  and  experience  than our
competitors in obtaining land through the acquisition of state-owned enterprise.
The large state-owned real estate development companies in our markets, however,
often  have a  competitive  advantage  over us in  obtaining  land  through  the
government.  We also believe that we have  advantages  over our  competitors  in
obtaining financing and in product design.  However,  competitive pressures from
current or future competitors could cause our products to lose market acceptance
or require us to  significantly  reduce  the price of our  services  to keep and
attract  clients.  These  factors may adversely  affect our business,  financial
condition and results of operations.

      Our  success  is  highly  dependent  upon the  continuing  service  of our
officers,  management  team and other  personnel,  including our Chairman of the
Board and Chief Executive Officer, Pingji Lu.

      Competition in our industry for  executive-level  personnel is strong, and
recruiting,  training,  and keeping  qualified key personnel with both technical
and market expertise are important  factors in our ongoing success and survival.
Pingji Lu, our Chairman of the Board and Chief Executive Officer,  is key to our
management  and  direction.  We have an employment  agreement  with Mr. Lu which
continues  through December 31, 2006.  Should key employees like Mr. Lu leave we
may lose both an important  internal  asset and revenues from customer  projects
tied to those  employees.  We cannot  assure you that we would be able to find a
replacement for Mr. Lu with his equivalent business experience and skills.

Risks Associated with Doing Business in Greater China

      All of our current, as well as near-term future revenues,  are expected to
be  derived  from  China.  There are  substantial  risks  associated  with doing
business in greater China, as set forth in the following risk factors.

      Our  operations  and assets in greater  China are  subject to  significant
political and economic uncertainties.

      Under its current  leadership,  the Chinese  government  has been pursuing
economic reform policies that encourage  private  economic  activity and greater
economic  decentralization.  There is no  assurance,  however,  that the Chinese
government  will  continue  to  pursue  these  policies,  or that  it  will  not
significantly  alter  these  policies  from  time to  time  without  notice.  In
addition,  although  the  Chinese  government  has in recent  years  implemented
measures  emphasizing the reduction of state ownership of productive  assets,  a
substantial portion of productive assets in China remains government-owned.  For
instance,  all  lands  are  state  owned and  leased  to  business  entities  or
individuals  through  governmental  granting of State-owned Land Use Rights. The
granting  process  is  typically  based on  government  policies  at the time of
granting,  which could be lengthy and complex. This process may adversely affect
our future  manufacturing  expansion.  The  Chinese  government  also  exercises
significant  control over China's  economic  growth  through the  allocation  of
resources,  controlling  payment of foreign currency and providing  preferential
treatment to particular  industries or companies.  Uncertainties  may arise with
changing of governmental policies and measures. In addition, changes in laws and
regulations,  or  their  interpretation,   or  the  imposition  of  confiscatory
taxation,  restrictions on currency  conversion,  imports and sources of supply,
devaluations  of  currency  or the  nationalization  or other  expropriation  of
private  enterprises  could  have a  material  adverse  effect on our  business,
results of operations and financial condition.


                                       11
<PAGE>


      Fluctuations  in the value of the  Chinese  currency  relative  to foreign
currencies could affect our operating results.

      We have historically conducted  transactions with customers,  paid payroll
and other costs of operations in Chinese national currency, the Renminbi. To the
extent our future revenue may be denominated in foreign currencies,  we would be
subject  to  increased  risks  relating  to  foreign   currency   exchange  rate
fluctuations  which  could  have a  material  adverse  affect  on our  financial
condition  and  operating  results.  To date, we have not engaged in any hedging
transactions in connection with our international operations.

      We may have limited legal  recourse  under  Chinese law if disputes  arise
under contracts with third parties.

      The Chinese government has enacted some laws and regulations  dealing with
matters such as  corporate  organization  and  governance,  foreign  investment,
commerce,  taxation  and  trade.  However,  their  experience  in  implementing,
interpreting  and  enforcing  these laws and  regulations  is  limited,  and our
ability  to  enforce  commercial  claims or to resolve  commercial  disputes  is
unpredictable. The resolution of these matters may be subject to the exercise of
considerable  discretion  by  agencies  of the  Chinese  government,  and forces
unrelated to the legal merits of a  particular  matter or dispute may  influence
their determination.  Any rights we may have to specific performance, or to seek
an injunction under Chinese law, in either of these cases, are severely limited,
and without a means of recourse by virtue of the Chinese legal system, we may be
unable to prevent these  situations from  occurring.  The occurrence of any such
events could have a material adverse effect on our business, financial condition
and results of operations.

      Failure to comply with the United  States  Foreign  Corrupt  Practices Act
could adversely impact our competitive  position and subject us to penalties and
other adverse consequences.

      We are subject to the United States Foreign  Corrupt  Practices Act, which
generally  prohibits  United States  companies from engaging in bribery or other
prohibited  payments  to  foreign  officials  for the  purpose of  obtaining  or
retaining business. Foreign companies,  including some that may compete with us,
are not subject to these prohibitions. Corruption, extortion, bribery, pay-offs,
theft and other fraudulent  practices occur from time-to-time in mainland China.
We have  attempted  to  implement  safeguards  to prevent  and  discourage  such
practices by our employees and agents. We can make no assurance,  however,  that
our employees or other agents will not engage in such conduct for which we might
be held responsible.  If our employees or other agents are found to have engaged
in such practices,  we could suffer severe penalties and other consequences that
may have a material  adverse  effect on our  business,  financial  condition and
results of operations.

Risks Associated with Investing in Our Common Stock

      Certain of our  stockholders  control a  significant  amount of our common
stock.

      Certain of our stockholders who were originally shareholders of LFIC prior
to the closing of the Exchange Agreement own approximately 54% of our issued and
outstanding  common stock.  Approximately 48% of these shareholders have entered
into a voting trust agreement with Pingji Lu, who has sole investment and voting
power over their  shares of our common  stock.  As a result,  this group has the
ability  to  significantly  influence  the  election  of all  matters  requiring
stockholder  approval,  including  the  election of  directors  and  approval of
significant corporate transactions,  such as mergers, consolidations or the sale
of  substantially  all  of  our  assets.  Consequently,  this  concentration  of
ownership  may have the effect of  delaying or  preventing  a change of control,
including a merger, consolidation or other business combination involving us, or
discouraging  a  potential  acquirer  from  making a tender  offer or  otherwise
attempting to obtain control, even if such a change of control would benefit our
other shareholders.


                                       12
<PAGE>


      Efforts to comply with recently  enacted  changes in  securities  laws and
regulations will increase our costs and require additional management resources,
and we still may fail to comply.

      As  directed  by Section 404 of the  Sarbanes-Oxley  Act of 2002,  the SEC
adopted rules  requiring  public  companies to include a report of management on
the company's internal controls over financial reporting in their annual reports
on Form 10-K.  In addition,  the public  accounting  firm auditing the company's
financial statements must attest to and report on management's assessment of the
effectiveness of the company's internal controls over financial reporting.  This
requirement  will first apply to our annual report on Form 10-KSB for our fiscal
year  ending  December  31,  2006.  If we are  unable to  conclude  that we have
effective  internal  controls  over  financial  reporting or if our  independent
auditors  are  unable  to  provide  us  with  an  unqualified  report  as to the
effectiveness of our internal  controls over financial  reporting as of December
31, 2006 and future  year ends as required by Section 404 of the  Sarbanes-Oxley
Act of 2002, investors could lose confidence in the reliability of our financial
statements,  which could result in a decrease in the value of our securities. We
have not yet begun a formal  process to  evaluate  our  internal  controls  over
financial reporting. Given the status of our efforts, coupled with the fact that
guidance from regulatory  authorities in the area of internal controls continues
to evolve,  substantial  uncertainty  exists  regarding our ability to comply by
applicable deadlines.

      There has not been significant trading in our common stock.

      Our common stock is quoted on the  Over-the-Counter  Bulletin Board and to
date,  there has been a limited trading market for our common stock.  There is a
significant  risk that our stock price may fluctuate  dramatically in the future
in  response  to any of the  following  factors,  some of which are  beyond  our
control:

o     variations in our quarterly operating results;

o     announcements that our revenue or income are below analysts' expectations;

o     general economic slowdowns;

o     changes in market valuations of similar companies;

o     sales of large blocks of our common stock;

o     announcements   by  us  or  our  competitors  of  significant   contracts,
      acquisitions,   strategic   partnerships,   joint   ventures   or  capital
      commitments;

o     fluctuations  in stock market prices and volumes,  which are  particularly
      common  among  highly   volatile   securities   of   internationally-based
      companies.

      Our common stock is subject to  regulations  prescribed by the  Securities
and Exchange Commission relating to "penny stocks".

      The  Securities  and  Exchange  Commission  has adopted  regulations  that
generally define a penny stock to be any equity security that has a market price
(as  defined  in such  regulations)  of less than  $5.00 per  share,  subject to
certain  exceptions.  Our common stock meets the definition of a penny stock and
is  subject  to  these  regulations,  which  impose  additional  sales  practice
requirements  on  broker-dealers  who sell such securities to persons other than
established  customers and  accredited  investor,  generally  institutions  with
assets in excess of  $5,000,000  and  individuals  with a net worth in excess of
$1,000,000  or annual  income  exceeding  $200,000  (individually)  or  $300,000
(jointly with their spouse).

      We do not anticipate paying dividends in the foreseeable future.

      We have never declared or paid any cash dividends or  distributions on our
common  stock.  We  currently  intend to retain our future  earnings  to support
operations and to finance  expansion and therefore do not anticipate  paying any
cash dividends on our common stock in the foreseeable future.

Our board of directors does not have an audit committee.

The  board of  directors  currently  does not have any  committees.  As a public
reporting  company listed on the OTC Bulletin  Board, we are required to have an
audit  committee  pursuant to the Exchange Act. We have  undergone a significant
change in  management  since our recent  completion  of a reverse  merger with a
change in control of the reporting company.  We intend to begin an active search
for individuals who will qualify to serve on our audit committee and as an audit
committee  financial  expert.  If we are unable to establish in timely manner an
audit committee that complies with the  requirements of the Exchange Act, we may
face the consequences of being in violation of listing requirements and the U.S.
federal  securities  laws. We are currently listed on the OTC Bulletin Board and
are  therefore  not  required to have a nominating  committee or a  compensation
committee. We will evaluate establishing such committees in the future.


                                       13
<PAGE>


ITEM 2. DESCRIPTION OF PROPERTY

      Our  headquarters  are located at 6 East  Friendship  Road, Han Garden 4th
Floor,  Xi'an, China. On October 23 2003, Lanbo signed a lease with Newstar Real
Estate Development Inc., to lease 1179.08 square meters as our corporate office.
This lease continues  through October 2005. We also have an office in the United
States at c/o West Windsor  Professional  Center, 51 Everett Drive,  Suite A-20,
West Windsor, NJ 08550. We have an 18 month lease which started in October 2004.
We pay $500 per month for this space of approximately 400 square feet.

      Our current real estate,  on which we have projects or hold in reserve for
future development, are as follows:

<TABLE>
<CAPTION>
       Name of project           Geographic location                   Salable area(m2)      Actual area(m2)
       ---------------           -------------------                   ----------------      ---------------
<S>                              <C>                                   <C>                   <C>
       Xinxng-Junjingyuan
       (second phase)            North Jinhua Road Xi'an City               140,000.00              5,600.00

       Xidu Mansion              East Erhuan of Xi'an City                   45,000.00              8,173.00

       Tangdu Machinery Factory
       Project                   South Erhuan of Xi'an City                 250,000.00             60,666.00

       Xi'an Shimian Factory
       Project                   Dongzhan Road of Xi'an City                250,000.00             68,667.00

       Total                                                                685,028.00            143,106.00
</TABLE>

ITEM 3. LEGAL PROCEEDINGS

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

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

      During the quarter ended December 31, 2004, no matters were submitted to a
vote of our security holders.

                                    PART II

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

      We amended our certificate of incorporation on November 12, 2004, changing
our name from "Micro Interconnect  Technology,  Inc." to "Lanbo Financial Group,
Inc".  Our common  stock is traded on the OTC  Bulletin  Board  under the symbol
"LNBO."  Prior to  November  29,  2004 our  common  stock was  traded on the OTC
Bulletin Board under the symbol "MITR."

      As of December  31,  2004,  our  authorized  capital  stock  consisted  of
50,000,000  shares of common stock,  par value $0.001 per share,  and 35,714,285
shares of common stock were issued and  outstanding.  The  following  table sets
forth,  for the  periods  indicated,  the high and low bid price for our  common
stock  as  reported  on  such  quotation   system,   which  quotations   reflect
inter-dealer prices, without retail mark-up, mark-down or commission and may not
represent actual transactions.


                                       14
<PAGE>


Quarter Ending:                          High                         Low

2003

March 31, 2003                          $ 0.01                      $ 0.01
June 30, 2003                           $ 0.01                      $ 0.01
September 30, 2003                      $ 0.01                      $ 0.01
December 31, 2003                       $ 0.01                      $ 0.01

2004

March 31, 2004                          $ 0.01                      $ 0.01
June 30, 2004                           $ 1.20                      $ 1.20
September 30, 2004                      $ 1.20                      $ 1.20
December 31, 2004                       $ 1.25                      $ 1.25


      There were 67 record  holders of our common stock as of March 28, 2005. We
have not  declared or paid  dividends  on our common stock to date and intend to
retain  future  earnings,  if any, for use in our  business for the  foreseeable
future.

ITEM 6. MANAGEMENT DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS

      Our  company  was  organized  under  the laws of the  State of  Nevada  on
February 11, 1998. On September 29, 2004, we entered into the Exchange Agreement
with  LFIC,  the  LFIC  Stockholders,  and  the KRM  Fund.  Under  the  Exchange
Agreement,  we acquired all of the outstanding capital stock of LFIC in exchange
for our issuance to the LFIC  Stockholders and KRM Fund of 19,285,714  shares of
our common stock.

      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.  Factors  that may cause  future  results to differ
materially from those projected in the forward-looking  statements include,  but
are not limited to, those discussed in "Risk Factors" and elsewhere in this Form
10-KSB.

Critical Accounting Policies and Estimates

      The  discussion  and analysis of our financial  conditions  and results of
operations is based upon our financial  statements,  which have been prepared in
accordance with generally accepted accounting principles in the United States of
America ("GAAP").  The preparation of these financial  statements requires us to
make  estimates  and  judgments  that  affect  the  reported  amounts of assets,
liabilities,  revenues and expenses, and related disclosure of contingent assets
and liabilities.  See "Summary of Significant  Accounting Policies" in the Notes
to  Consolidated  Financial  Statements  in Item to this Report for our critical
accounting policies.  No significant changes in our critical accounting policies
have occurred since September 30, 2003.

Overview - Ongoing Projects

      The table  below  provides  information  on the size and  estimated  sales
volume of our ongoing real estate development projects, as of December 31, 2004.


                                                                  Sales volume
                                        Sales area                (dollars in
         Name of project                  (square meters)          thousands)
         ---------------                  ---------------          ----------
         Xinxing Gangwan                        38,593                $ 14,190
         Xinxing Junjingyuan                    29,360                  10,490
         Xinxing Hanyuan                         8,990                   1,730
         Xinxing in Home                         9,666                   4,180
         Other projects                         17,851                   9,670
           Total                               104,460                $ 40,260


                                       15
<PAGE>


Overview - Results of Operations

      Fiscal Year ended December 31, 2004 Compared to Fiscal Year Ended December
31, 2003.

      Revenues.  Revenues  were  $40,258,202  in fiscal  2004,  as  compared  to
$22,240,129  for fiscal 2003.  The increase in revenues is  attributable  to the
completion  of additional  projects.  For fiscal 2004, we had revenues of $14.19
million for Xinxing  Gangwan,  $10.49  million  for Xinxing  Junjingyuan,  $1.73
million for  Xinxing  Hanyuan,  $4.18 for Xinxing In Home and $9.67  million for
other projects.

      We recognize revenue when a sale is consummated,  which only occurs when a
project is completed.  In fiscal 2004, our sales for some of Xinxing Junjingyuan
were not verified  until the  completion of that project in the first quarter of
fiscal 2005.

      Cost of sales.  The cost of sales  consists  of cost of land  development,
construction  and interior design and decoration.  Cost of sales was $27,259,981
in fiscal 2004, as compared to $13,356,866 for fiscal 2003. The increase in cost
of sales is  attributable  to the  completion  of additional  projects.  As with
revenue,  we  recognize  cost of sales  when a sale is  consummated,  which only
occurs when a project is completed.

      Gross profit.  Gross profit was $12,998,221 in fiscal 2004, as compared to
$7,883,263 for fiscal 2003.

      Net  income.  Net income was  $4,525,488  in fiscal  2004,  as compared to
$3,575,863  for fiscal  2003.  The  increase  in net income is  attributable  to
creative  marketing  strategy  to  promote  the  sales,  ,  reductions  in costs
attributable  to   improvements  in  our  budget  and  cost  management   system
implemented  in  fiscal  2004,  offset by  $2,892,945  in  legal,  auditing  and
transaction  expenses  associated  with our  reverse  merger with LFIC in fiscal
2004.

      Selling,  general  and  administrative  expenses.   Selling,  general  and
administrative  ("SG&A")  expenses  consist  primarily of  advertising  cost for
sales,  management  overhead and general  office  expenses.  SG&A  expenses were
$1,236,856  in fiscal  2004,  as compared to  $2,138,113  for fiscal  2003.  The
decrease in SG&A expenses is attributable to the decrease of management overhead
in payroll for our  administrative  offices and consulting  fees and decrease in
doubtful other receivables.

      As  a  result  of  the  foregoing,  income  before  income  taxes  totaled
$8,084,128 for fiscal 2004 and $5,404,902 for fiscal 2003.  Provision for income
taxes expenses is $3,558,640 for fiscal 2004 and $1,829,039 for fiscal 2003. The
result of the above tax  calculations  resulted in net income of $4,525,488  and
$3,575,863 for fiscal 2004 and 2003, respectively.

Income Taxes

      Provisions of $3,558,640 for taxes have been recorded for fiscal 2004.

Liquidity and Capital Resources

      As of December 31, 2004, we had $199,956 of cash and cash  equivalents and
$(21,335,533)  of working  capital as compared to  $476,352  and  $(27,937,702),
respectively,  at December  31,  2003.  We believe  that we  currently  generate
sufficient cash from operating activities to support our operations.

      Newstar is  currently  developing  several  projects  which  will  require
financing.  First, in connection  with our Junjing Garden  project,  Newstar has
entered in a Loan Agreement with Construction  Bank and a Mortgage  Construction
Bank.  The  Loan  Agreement  provides  for a loan  of RMB 40  million  from  the
Construction  Bank to be applied to the  construction  investment of our Junjing
Garden  project.  The loan was  funded on  December  7,  2004,  has a term of 30
months, and bears a fixed monthly interest rate of 5.76%,  calculated on a daily
basis.  The loan is subject to a fixed monthly  interest rate of 11.52% if it is
not used for the  construction  investment of the Junjing  Garden  project and a
fixed monthly interest rate of 8.64% on overdue amounts.  The loan is secured by
the property of and work in progress on the Junjing Garden project.  We are also
financing the Junjing Garden project with approximately  $216.5 million from the
proceeds of our  previously  completed  projects.  At December 31, 2004,  we had
invested  approximately $19.3 million in the Junjing Garden project.  Second, we
will require  approximately  $14.5  million to finance our  acquisition  of Xidu
Tower.  Third,  we will need  approximately  $2.2 million for the project on the
Tangdu Machine  Factory land. We believe that we will be able to obtain adequate
funding sources to support the three above named projects.


                                       16
<PAGE>


      The Chinese government has increasingly tightened its credit policies over
the real estate development industry in China to attempt to limit overexpansion.
We believe that these credit policies will increase  pressure on financing needs
for our future development projects.

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

      We have  entered  into  three  letters of intent  for the  acquisition  of
Nanjing Damei,  Shenzhen Qingbao and Weifang Gongda.  The closing of each of the
acquisitions  remains  subject  to  our  obtaining  financing  for  the  capital
contributions  we will be obligated  to make to the joint  ventures we will form
with each of the target  companies.  We cannot make any assurances  that each of
the acquisitions  will close or that we will achieve our investment  objectives.
We will need to raise  additional  funds  through  public or private  financing,
which may  include the sale of equity  securities  and/or  taking on  additional
indebtedness.

Off-Balance Sheet Arrangements

      We do not have any off-balance sheet arrangements.

ITEM 7. FINANCIAL STATEMENTS

      The following  financial  statements required by this item are included in
the section beginning on page F-1.

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

      None.

ITEM 8A. CONTROLS AND PROCEDURES

      Under  the  supervision  and  with  the  participation  of  the  Company's
management,  including  our chief  executive  officer  and the  chief  financial
officer,  the Company conducted an evaluation of the effectiveness of the design
and operation of its  disclosure  controls and  procedures,  as defined in Rules
13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as of the end
of the period  covered by this report  (the  "Evaluation  Date").  Based on this
evaluation,  the Company's chief executive  officer and chief financial  officer
concluded as of the Evaluation Date that the Company's  disclosure  controls and
procedures  were  effective  such that the material  information  required to be
included in our Securities and Exchange  Commission ("SEC") reports is recorded,
processed,  summarized  and reported  within the time  periods  specified in SEC
rules  and  forms   relating  to  the  Company,   including  our   consolidating
subsidiaries,  and was  made  known to them by  others  within  those  entities,
particularly during the period when this report was being prepared.

      Additionally,  there were no significant changes in the Company's internal
controls or in other  factors that could  significantly  affect  these  controls
subsequent  to the  Evaluation  Date.  We have not  identified  any  significant
deficiencies  or material  weaknesses  in our internal  controls,  and therefore
there were no corrective actions taken.


                                       17
<PAGE>


ITEM 8A. OTHER INFORMATION

      None.

                                    PART III

ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

Directors and Executive Officers

      The following table sets forth certain information regarding our directors
and executive officers as of March 28, 2004:

<TABLE>
<CAPTION>

             Name                   Age                          Position
             ----                   ---                          --------
<S>                                 <C>      <C>
                                             Chairman of the Board and Chief Executive

Pingji Lu                           54       Officer

Yulong Wan                          41       Chief Financial Officer
                                             Executive Vice President, Chief Operating

Genxiang Xiao                       42       Officer and Director

Xiaohong Feng                       40       Director

Yaru Du                             33       Director
</TABLE>

      Pingji Lu has been our Chairman of the Board and Chief  Executive  Officer
since November  2004. He is the founder of LFIC,  where he has been the Chairman
of the Board and Chief Executive  Officer since its formation in September 2003,
and  Newstar,  where he has been the  Chairman of the Board and Chief  Executive
Officer since 1998 and previously  General  Manager from 1992. Mr. Lu skillfully
grew  Newstar  by  purchasing  land  at  low  cost,  exchanging  future  housing
development for land,  implementing  mergers and  reorganizations,  constructing
high-quality   buildings,   resolving   investment  obstacles  with  credit  and
accelerating  turnover.  He adopted  the  business  strategy of  dominating  the
regional  market  and  introducing  European  style  housing.  He has  developed
commercial and  residential  projects  covering more than 500,000 square meters,
which have earned 19 awards such as "Good  Credit  Company" in Shanxi  Province,
and "Top 10 Best  Performance  Company" in Xian City. He is also a member of the
Enterprise Credit  Association of Shanxi Province.  Mr. Lu also has more than 30
years of  military  work  experience  from 1969 to 1999 where he acted as Senior
Colonel.  Mr. Lu graduated from Xian Army College with a major in  architectural
engineering.

      Yulong Wan has been our Chief  Financial  Officer since  November 2004 and
Chief Financial Officer of LFIC since 2003. Mr. Wan is a senior accountant, CPA,
director  of  the   Accountant   Association   of  Shanxi   Foreign   Investment
Corporations,  and  member of China's  CPA  Association.  Prior to  joining  our
company,  he served as the Chief  Financial  Officer  for Xi'an Royal Hotel from
1999 to 2003,  worked for Xi'an Huadi  Accountant  Office from 1996 to 1999, was
the Financial  Director and Vice President of Xi'an Xingda Minerals  Development
Company of National  Architecture-Material Bureau from 1993 to 1995, and was the
Financial    Director   of    Northwest    Geological    Company   of   National
Architecture-Material Bureau from 1984 to 1993. Mr. Wan has an accounting degree
from Shanghai  Construction  Material  Institute,  and an MBA from Xian Jiaotong
University.

      Genxiang  Xiao has been our  Executive  Vice  President,  Chief  Operating
Officer and a director  since  November 2004 and a director and  Executive  Vice
President of LFIC since October 2003. He was a director and President of Newstar
from January 1999 to October 2003.  Mr. Xiao was a director of Newstar from 1999
to 2003, where he was responsible for developing real estate and debt financing.
Mr. Xiao has successfully increased cash flows while decreasing land development
costs. He is experienced in acquiring and purchasing  real estate,  employee and
staff reorganization, and property restructuring. Mr. Xiao received his MBA from
Xian Jiaotong University.


                                       18
<PAGE>


      Xiaohong Feng has been a director  since  November  2004.  Mr. Feng joined
Newstar  in January  2003 as  President  and a  director.  Prior to joining  our
company, he was a director and President of Xian Hong Hua Industry, Inc. He is a
member of the China Architecture Association,  Vice-President of the Real Estate
Association of Shaanxi Province, and Vice-Director of the Decoration Association
of Xi'an.  Under Mr. Feng's  leadership,  since 2002,  Newstar has won 13 awards
including   "China's   Best-Known  Real  Estate  Brand"  awarded  by  the  Xi'an
municipality  and the Association of the Real Estate  Industry.  He also won the
coveted Elite of Shaanxi Real Estate  Industry award in 2004 by the  Association
of the Real Estate  Industry of the Shaanxi  Province.  Mr. Feng  graduated from
Xian  Architecture  and Technology  University,  and holds a master's  degree in
Architecture Science.

      Yaru Du has been a director  since November 2004, a director of LFIC since
2003. Mrs. Du is also a director of Shaanxi Aidi Financial Investment Consulting
Co.,  Ltd,  where she was a financial  manager from  February  2003 through June
2004.  Previously she was a financial manager with Xianyang Pianzhuan Group Co.,
Ltd from 1999  through  2003.  She  graduated  from the  Shaanzi  Broadcast  and
Television University in 1993 with a degree in finance and accounting.

      The directors  named above will serve until the next annual meeting of our
shareholders  and until his  successor  shall have been  elected and  qualified.
Executive  officers of the Company are appointed at the  discretion of the Board
of Directors for a term of one year or until their  successors are duly elected.
There are no family relationships among the officers and directors.

      Board Composition

      Our by-laws allow for up to nine directors, as such number may be fixed by
our  board of  directors.  Our board of  directors  currently  consists  of four
directors,  Pingji Lu, Xiaohong Feng, Yaru Du and Genxiang Xiao. Pursuant to the
Exchange  Agreement  and  the  Voting  Agreement,  one  of the  vacant  director
positions will be filled by a person  designated by KRM Fund, which person shall
be an independent  director and a financial  expert,  qualified and available to
serve on our audit and compensation  committee,  and otherwise acceptable to the
LFIC  Stockholders.   Under  the  terms  of  the  Voting  Agreement,   the  LFIC
Stockholders  and the New  Stockholders  have agreed to vote their shares of our
common  stock to elect the KRM Fund  Designee  to our board of  directors  for a
period of one year following the closing of the Exchange Agreement. KRM Fund has
not  designated  a KRM Fund  Designee to date.  Under the terms of the  Exchange
Agreement, the remaining two vacant director positions will be filled by persons
selected by the Management Members and will be independent directors.

      Our business and affairs are managed  under the  direction of our board of
directors. The primary responsibilities of our board of directors are to provide
oversight, strategic guidance, counseling and direction to our management. It is
our  expectation  that the board of directors will meet regularly on a quarterly
basis and additionally as required.

      Because we are currently listed on the Over-the-Counter Bulletin Board, we
are eligible  for  exemptions  from  provisions  of the  Exchange Act  requiring
independent directors, certain independent board committees and written charters
addressing  certain  corporate  governance  matters.  We  have  elected  to take
advantage of these exemptions at this time.

      Director Compensation

      We currently do not have a policy on outside director compensation, but we
will establish one when we add such new directors to our board.

      Audit Committee Financial Expert

      We do  not  currently  have  an  audit  committee.  We  have  undergone  a
significant change in management since our recent completion of a reverse merger
with a change in control of the reporting company.  We intend to begin an active
search for  individuals  who will qualify to serve on our audit committee and as
an audit committee financial expert.


                                       19
<PAGE>


      Employment Agreements

      We have  employment  agreements with each of our executive  officers.  Our
employment  agreement with Mr. Lu continues  until December 31, 2006.  Under his
employment  contract,  Mr. Lu earns a basic  salary of RMB  7,000 per  month,  a
salary  of up to RMB 7,000 per month  for  meeting  his  employment  obligations
during the applicable month, and a bonus payable at the end of the year based on
performance  meeting  his  employment  obligations  during  the  year,  with all
components  capped at RMB  500,000  in the  aggregate  for one  year.  Under his
employment  contract,  Mr. Wan earns a basic  salary of RMB 3,125 per  month,  a
salary  of up to RMB 3,125 per month  for  meeting  his  employment  obligations
during the applicable month, and a bonus payable at the end of the year based on
performance during the year, with all salary components capped at RMB 150,000 in
the  aggregate for one year.  Our board of directors  evaluates  Messrs.  Lu and
Wan's performance for the year.

      Compliance with Section 16(a) of the Exchange Act

      Section  16(a) of the  Securities  Exchange Act  requires  our  directors,
executive officers and persons who own more than 10% of our common stock to file
reports of  ownership  and  changes in  ownership  of our common  stock with the
Securities and Exchange  Commission.  Directors,  executive officers and persons
who own more  than 10% of our  common  stock  are  required  by  Securities  and
Exchange  Commission  regulations  to furnish to us copies of all Section  16(a)
forms they file.

      There  was a  failure  by each  of the  following  to  timely  file  their
respective Form 3's: Pingji Lu, Yulong Wan,  Genxiang Xiao,  Xiaohong Feng, Yaru
Du, Xuesong Li and Zhiyong Shi. To our knowledge,  based solely on our review of
such forms furnished to us and written  representations  from certain  reporting
persons,  we  believe  that all  other  filing  requirements  applicable  to our
executive  officers,  directors  and  greater  than 10%  beneficial  owners were
complied with during 2004.

ITEM 10. EXECUTIVE COMPENSATION

      The  following  summary   compensation  table  sets  forth  the  aggregate
compensation  awarded  to,  earned by, or paid to the  Chairman of the Board and
Chief  Executive  Officer.  There are no other  executive  officers whose annual
compensation  exceeded  $100,000 for the fiscal  years ended  December 31, 2004,
2003 and 2002:

<TABLE>
<CAPTION>

                                                                              Long Term Compensation

                                               Annual Compensation           Awards         Payouts
                                               -------------------           ------         -------

                                                                           Restricted                           All
                             Fiscal         Salary                           Stock       Stock                 Other
  Name/Principal Position     Year           ($)      Bonus ($)  Other ($)  Award ($)    Options   LTIP ($)   Comp. ($)
----------------------------------------------------------------------------------------------------------------------
<S>                           <C>         <C>        <C>         <C>        <C>          <C>       <C>       <C>
Pingji Lu                     2004        $ 60,000   $ 40,000      --          --         --         --         --
                              2003        $ 30,000         --      --          --         --         --         --
                              2002        $ 30,000         --      --          --         --         --         --
</TABLE>

      None of our  executive  officers  received any stock options in the fiscal
year ended December 31, 2004, nor did they exercise any such options in the same
period.

Option/SAR Granted During the Last Fiscal Year

      None.


                                       20
<PAGE>


Long Term Incentive Plans/Awards in the Last Fiscal Year

      None.

Equity Incentive Plan

      None.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

      As of March 28, 2005, we had 35,714,285  shares of common stock issued and
outstanding.  Set forth below is information  regarding the beneficial ownership
of our common  stock as of March 28, 2005 by (i) each person  known by us to own
beneficially  more than 5% of our common stock,  (ii) each of the our directors,
and (iii) each of the our executive  officers.  The term "executive  officer" is
defined as the Chief Executive Officer and the Chief Financial  Officer.  Unless
otherwise  indicated,  the  address for each  person  listed  below is c/o Lanbo
Financial  Company  Group,  Ltd., 6 Youyi Donglu,  Xinxing  Hanyuan,  Xi'an,  F4
710054,  People's  Republic of China.  Each  individual or entity named has sole
investment and voting power with respect to shares of common stock  indicated as
beneficially   owned  by  them,   subject  to  community  property  laws,  where
applicable, except where otherwise noted.

      The  following  table  sets  forth,  as of  March  28,  2004,  information
regarding the  beneficial  ownership of our common stock with respect to each of
our executive  officers,  each of our directors,  each person known by us to own
beneficially  more than 5% of the common  stock,  and all of our  directors  and
executive officers as a group.

<TABLE>
<CAPTION>

              Name of Beneficial Owner                 Amount of beneficial ownership         Percent of class
--------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>                                    <C>
Meiyi Xia
2416 Ravens Crest Drive
Plainsboro, NJ 08536                                             3,035,714                             8.5%

Yingshing To
c/o Shannxi Aidi Investment Consulting Co. Ltd
11th floor, Xinxing Mansion
No. 88 Jianguo Road, Xi'an 710001
People's Republic of China                                       2,857,143                             8.0%

Keating Reverse Merger Fund
5251 DTC Parkway, Suite 1090
Greenwood Village, CO 80111-2739                                 2,000,000                             5.6%

Pingji Lu (2)                                                   17,208,714                            48.2%

Yulong Wan                                                              --                               *

Genxiang Xiao (3)                                                1,099,286                             3.1%

Xiaohong Feng (3)                                                  979,714                             2.7%

Yaru Du (3)                                                      2,857,143                             8.0%
c/o Shannxi Aidi Investment Consulting Co. Ltd.
11th Floor, Xinxing Mansion
No. 88 Jianguo Road, Xi'an 710001
People's Republic of China

All directors  and  executive  officers as a group
(5 persons)                                                     22,144,857                            62.0%
</TABLE>

                                       21
<PAGE>


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

* Represents less than one percent (1%)

(1) In  computing  the number of shares  beneficially  owned by a person and the
percentage  ownership of a person,  shares of common stock subject to options or
warrants  held by that  person that are  currently  exercisable  or  exercisable
within 60 days are deemed  outstanding.  Such  shares,  however,  are not deemed
outstanding  for purposes of computing  the  percentage  ownership of each other
person.  Except as  indicated  in the  footnotes  to this table and  pursuant to
applicable  community  property  laws,  the persons named in the table have sole
voting and investment power with respect to all shares of common stock.

(2) 4,061,571 shares of common stock were issued to Mr. Lu at the closing of the
Exchange Agreement, and 13,145,143 shares of common stock were issued to certain
stockholders of LFIC, at the closing of the Exchange  Agreement.  Mr. Lu, as the
Voting Trustee pursuant to that certain Voting Trust Agreement, by and among Mr.
Lu and LFIC  Stockholders,  dated  September 28, 2004,  has sole  investment and
voting power over those stockholders' shares of our common stock.

(3) These  shares of common stock are subject to the Voting  Agreement,  whereby
Mr. Lu, as the Voting  Trustee,  has sole investment and voting power over these
shares of common stock.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

      In connection with the closing of the Exchange Agreement,  we entered into
a  financial   advisory  agreement  with  Keating   Securities,   LLC  ("Keating
Securities"),  a registered  broker-dealer and affiliate of one of our principal
stockholders,  Keating Reverse Merger Fund, under which Keating Securities would
be compensated by us for its advisory services rendered to us in connection with
the Exchange Agreement. The transaction advisory fee was $150,000. The financial
advisory agreement also appointed Keating Securities as our exclusive  placement
agent for private and public  offerings  of our  securities  during the one year
period  following  the closing of the  Exchange  Agreement.

      In  connection  with the  closing of the  Exchange  Agreement,  Meiyi Xia,
Yingshing To and Yaru Du each received shares of our common stock equal to 8% of
our issued and  outstanding  common  stock in exchange for  consulting  services
pursuant to the terms of the Exchange Agreement.

ITEM 13. EXHIBITS AND ANNUAL REPORTS ON FORM 8-K

      (a)   Exhibits.


<TABLE>
<CAPTION>
<S>                       <C>
        3.1 (1)           Articles of Incorporation.

        3.2 (2)           Articles of Merger, amending the Articles of Incorporation.

        3.2 (3)           Amended and Restated By-laws.

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

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

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

        32.2              Certification  of Chief  Financial  Officer  pursuant to Section 906 of
                          Sarbanes-Oxley Act of 2002.
</TABLE>


                                       22
<PAGE>


      (1) Previously  filed with the Commission as an Exhibit to Amendment No. 3
      of the  Company's  Registration  Statement  on Form  SB-2/A  (SEC File No.
      333-52721) filed on February 1, 1999 and incorporated herein by reference.

      (2)  Previously  filed with the  Commission as an Exhibit to the Company's
      Report on Form 8-K filed  November 19, 2004,  and  incorporated  herein by
      reference.

      (3)  Previously  filed with the  Commission as an Exhibit to the Company's
      Report on Form 8-K filed  January  7,  2005,  and  incorporated  herein by
      reference.

      (b)   Current reports on Form 8-K.

      Report  on  Form  8-K  filed  October  10,  2004  reporting  entry  into a
definitive  agreement  in  connection  with the reverse  merger/takeover  of the
Company by LFIC.

      Report on Form 8-K  filed  November  5, 2004  reporting  the  issuance  of
securities in connection with the reverse merger/takeover of the Company by LFIC
and a change in control of the Company.

      Report  on Form 8-K  filed  November  5,  2004  reporting  a change in the
Company's certifying accountants.

      Report on Form 8-K  filed  November  19,  2004  reporting  a filing of the
articles of merger  merging  Lanbo  Financial  Group,  Inc. into the Company and
related amendment to the Company's articles of incorporation  change its name to
"Lanbo Financial Group, Inc."

      Report on Form 8-K filed December 17, 2004 reporting entry into definitive
agreements in connection  with the Junjing Garden  Project,  the  acquisition of
Xidu Tower and three acquisitions of Chinese companies.

      We are a reporting company and file annual, quarterly and special reports,
proxy statements and other information with the Commission.  You may inspect and
copy these  materials at the Public  Reference Room maintained by the Commission
at 450 Fifth Street, N.W., Washington, D.C. 20549. Please call the Commission at
1-800-SEC-0330  for more  information on the Public Reference Room. You can also
find our  Commission  filings at the  Commission's  website at  www.sec.gov.  We
intend to furnish  our  stockholders  with  annual  reports  containing  audited
financial  statements and such other periodic  reports as we may determine to be
appropriate or as may be required by law.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

      During  fiscal  2003 and the  first  two  quarters  of  fiscal  2004,  our
principal  independent auditor was Pritchett,  Silver & Hardy, P.C. The audit of
our annual financial  statement and review of our financial  statements for this
10-KSB and our 10-QSB for the period ended  September  30,  2004,  respectively,
were  performed by our current  principal  independent  auditor L.L.  Bradford &
Company, LLC. The following are the services provided and the amount billed:


                                       23
<PAGE>


Audit Fee

      The  aggregate  fees  billed for  professional  services  rendered by L.L.
Bradford &  Company,  LLC for the audit of our annual  financial  statement  and
review of financial statements included in this 10-KSB and our 10-QSB report for
the period  ended  September  30,  2004,  respectively,  and  services  normally
provided by the accountant in connection  with statutory and regulatory  filings
or engagements was $148,000.

      The aggregate fees for professional services rendered by Pritchett, Silver
& Hardy,  P.C. for each of the last two fiscal years for the audit of our annual
financial  statement and review of financial  statements  included in our 10-KSB
and  10-QSBs  prior to our  engagement  with L.L.  Bradford &  Company,  LLC and
services  normally  provided by the accountant in connection  with statutory and
regulatory filings or engagements were $3,356 for the fiscal year ended December
31, 2004 and $10,697 for the fiscal year ended December 31, 2003.

Audit-Related Fees

      Other than as disclosed under "Audit Fee" above, there were no fees billed
in either of the last two fiscal years for other audit related services.

Tax Fees

      There  were no fees  billed  in each of the  last  two  fiscal  years  for
professional  services rendered by the principal  accountant for tax compliance,
tax advice, or tax planning.

All Other Fees

      There  were no fees  billed  in either  of the last two  fiscal  years for
products  and  services  provided by the  principal  accountant,  other than the
services reported above.

      We do not have an audit  committee  currently  serving and as a result our
board of directors performs the duties of an audit committee.


                                       24
<PAGE>


                                   SIGNATURES

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

                                   LANBO FINANCIAL GROUP, INC.
                                   (Registrant)

Date:  March 31, 2005              By: /s/ Pingji Lu
                                       -------------------------------------

                                   Name: Pingji Lu
                                   Title: Chairman and Chief Executive Officer
                                   (Principal Executive Officer)

Date:  March 31, 2005              By: /s/ Yulong Wan
                                       --------------------------------------
                                   Name: Yulong Wan
                                   Title: Chief Financial Officer
                                  (Principal Financial Officer)

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


<TABLE>
<CAPTION>
                   Signature                         Capacity in Which Signed                     Date
-----------------------------------------------------------------------------------------------------------------
<S>                                              <C>                                         <C>
By:   /s/ Pingji Lu                              Chairman of the Board and Chief Executive
      ---------------------------------------
Pingji Lu                                        Officer                                     March 31, 2005

By:   /s/ Yulong Wan                             Chief Financial Officer                     March 31, 2005
      ---------------------------------------
          Yulong Wan

By:   /s/ Genxiang Xiao
      ---------------------------------------
Genxiang Xiao                                    Director                                    March 31, 2005


By:   /s/ Xiaohong Feng
      ---------------------------------------
Xiaohong Feng                                    Director                                    March 31, 2005


By:   /s/ Yaru Du
      ---------------------------------------
Yaru Du                                          Director                                    March 31, 2005
</TABLE>


<PAGE>


               REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS

To the Board of Directors and Stockholders
Lanbo Financial Group, Inc.
(Formerly known as Micro Interconnect Technology, Inc.)
Xi'an City, China

We have audited the accompanying  consolidated balance sheets of Lanbo Financial
Group,  Inc.  (Formerly  known as  Micro  Interconnect  Technology,  Inc.) as of
December 31, 2004 and 2003 and the related consolidated statements of income and
other comprehensive income (loss),  shareholders' equity, and cash flows for the
years then ended. 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 financial
statements  are free of material  misstatement.  The Company is not  required to
have,  nor were we engaged to perform,  an audit of its  internal  control  over
financial reporting.  Our audit included  consideration of internal control over
financial  reporting  as  a  basis  for  designing  audit  procedures  that  are
appropriate  in the  circumstances,  but not for the  purpose of  expressing  an
opinion on the  effectiveness  of the Company's  internal control over financial
reporting. Accordingly, we express no such opinion. 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 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 financial  position of Lanbo  Financial
Group,  Inc.  (Formerly  known as  Micro  Interconnect  Technology,  Inc.) as of
December 31, 2004 and 2003, and the  consolidated  results of its operations and
cash flows for the years then ended in  conformity  with  accounting  principles
generally accepted in the United States.

L.L. Bradford & Company, LLC
March 5, 2005
Las Vegas, Nevada

                                      F-1-
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                           CONSOLIDATED BALANCE SHEETS
                        AS OF DECEMBER 31, 2004 AND 2003

<TABLE>
<CAPTION>
                                     ASSETS

                                                                                   2004              2003
                                                                               ------------      ------------
<S>                                                                            <C>               <C>
CURRENT ASSETS:
   Cash                                                                        $    199,956      $    476,352
   Cash - restricted                                                              1,508,376           854,536
   Accounts receivable, trade, net of allowance for doubtful
     accounts of $370,246 and $314,768 as of December 31, 2004 and 2003,
     respectively                                                                 3,790,974           768,617
   Other receivables, net of allowance for doubtful accounts of $1,090,852
     and $1,090,852 as of December 31, 2004 and 2003, respectively                   23,313         3,431,423
   Other receivables - related party                                                     --           466,247
   Employee advances                                                                     --           146,912
   Prepaid expense                                                                5,952,638         2,085,945
                                                                               ------------      ------------
     Total current assets                                                        11,475,257         8,230,032
                                                                               ------------      ------------

REAL ESTATE HELD FOR DEVELOPMENT OR SALE                                         27,571,614        32,960,243

PLANT AND EQUIPMENT, net                                                          2,545,782         1,348,827

LONG-TERM INVESTMENT                                                              2,598,430         2,695,847

OTHER ASSETS:
   Deferred charges - net                                                               825             1,066
                                                                               ------------      ------------
     Total other assets                                                                 825             1,066
                                                                               ------------      ------------

       Total assets                                                            $ 44,191,908      $ 45,236,015
                                                                               ============      ============

                      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
   Accounts payable, trade                                                     $  5,789,210      $  9,596,591
   Advances from customers                                                        2,172,476         5,510,463
   Accrued Liability                                                              5,923,608           243,314
   Income and other taxes payable                                                 5,230,841         2,588,877
   Other payables                                                                   190,655         2,071,489
   Other payables - related party                                                 5,881,000         6,961,000
   Short term loans payable - bank                                                7,623,000         9,196,000
                                                                               ------------      ------------
     Total current liabilities                                                   32,810,790        36,167,734
                                                                               ------------      ------------

   Long term loans payable - bank                                                 4,235,000         5,808,000
                                                                               ------------      ------------

          Total liabilities                                                      37,045,790        41,975,734

COMMITMENTS AND CONTINGENCIES                                                            --                --

SHAREHOLDERS' EQUITY:
   Common stock, $1.00 par value, authorized 10,800,000 shares,
     35,714,286 shares issued and outstanding                                        35,715            19,286
   Paid-in-capital                                                                8,634,109         6,085,641
   Statutory reserve                                                              1,859,899           686,579
   Retained earnings                                                              2,376,395         2,228,775
   Owner contribution receivable                                                 (5,760,000)       (5,760,000)
   Accumulated other comprehensive income                                                --                --
                                                                               ------------      ------------
     Total shareholders' equity                                                   7,146,118         3,260,281
                                                                               ------------      ------------
       Total liabilities and shareholders' equity                              $ 44,191,908      $ 45,236,015
                                                                               ============      ============
</TABLE>

The accompanying notes are an integral part of this statement.

                                      F-2-
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

     CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (LOSS)
                 FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003

<TABLE>
<CAPTION>
                                                               2004              2003
                                                           ------------      ------------
<S>                                                        <C>               <C>
GROSS REVENUES                                             $ 40,258,202      $ 21,240,129

COST OF SALES                                                27,259,981        13,356,866
                                                           ------------      ------------

GROSS PROFIT                                                 12,998,221         7,883,263

OTHER OPERATING INCOME                                               --           190,148

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES                  1,236,856         2,138,113
                                                           ------------      ------------

INCOME FROM OPERATIONS                                       11,761,365         5,935,298

REVERSE MERGER TRANSACTION EXPENSE                           (2,892,945)               --

OTHER EXPENSE, net of other income                             (784,292)         (530,396)
                                                           ------------      ------------

INCOME BEFORE INCOME TAX                                      8,084,128         5,404,902

PROVISION FOR INCOME TAXES                                    3,558,640         1,829,039
                                                           ------------      ------------

NET INCOME                                                    4,525,488         3,575,863

OTHER COMPREHENSIVE INCOME (LOSS):
         Foreign currency translation adjustment                     --                --
                                                           ------------      ------------
COMPREHENSIVE INCOME                                       $  4,525,488      $  3,575,863
                                                           ============      ============

BASIC AND DILUTED INCOME
    PER COMMON SHARE                                               0.21              0.19
                                                           ============      ============

BASIC AND DILUTED WEIGHTED AVERAGE
    COMMON SHARES OUTSTANDING                                21,105,675        19,285,714
                                                           ============      ============
</TABLE>

The accompanying notes are an integral part of this statement.

                                      F-3-
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                 FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003

<TABLE>
<CAPTION>
                                                               Number           Common          Paid in        Statutory
                                                             of shares           stock          capital         reserves
                                                            -----------      -----------      -----------     -----------
<S>                                                          <C>             <C>              <C>             <C>
BALANCE, December 31, 2002                                   19,285,714      $    19,286      $ 6,081,888     $   150,199
                                                            ===========      ===========      ===========     ===========

     Net Income
     Capital contribution                                                                           3,753
     Adjustment to statutory reserve                                                                              536,380
     Stock receivable
     Cash received in consideration of stock receivable
     Foreign currency translation adjustments
                                                            -----------      -----------      -----------     -----------
BALANCE, December 31, 2003                                   19,285,714      $    19,286      $ 6,085,641     $   686,579
                                                            ===========      ===========      ===========     ===========

     Net income
     Recapitalization as a result of merger                   2,500,000            2,500              167
     Stock issued for reverse merger expense                 13,928,572           13,929        2,548,301
     Adjustment to statutory reserve                                                                            1,173,320
     Dividend distributed
     Stock receivable
     Foreign currency translation adjustments
                                                            -----------      -----------      -----------     -----------
BALANCE, December 31, 2004                                   35,714,286      $    35,715      $ 8,634,109     $ 1,859,899
                                                            ===========      ===========      ===========     ===========
<CAPTION>
                                                                                              Accumulated
                                                                                Owner           other
                                                              Retained       Contribution    comprehensive
                                                              earnings        Receivable     income (loss)       Totals
                                                            -----------      -----------     -------------     -----------
<S>                                                         <C>              <C>                 <C>           <C>
BALANCE, December 31, 2002                                  $  (810,708)     $        --      $        --      $ 5,440,665
                                                            ===========      ===========      ===========     ===========

     Net Income                                               3,575,863                                          3,575,863
     Capital contribution                                                                                            3,753
     Adjustment to statutory reserve                           (536,380)                                                --
     Stock receivable                                                         (6,840,000)                       (6,840,000)
     Cash received in consideration of stock receivable                        1,080,000                         1,080,000
     Foreign currency translation adjustments                                                                           --
                                                            -----------      -----------      -----------     -----------

BALANCE, December 31, 2003                                  $ 2,228,775      $(5,760,000)     $        --     $ 3,260,281
                                                            ===========      ===========      ===========     ===========

     Net income                                               4,525,488                                          4,525,488
     Recapitalization as a result of merger                                                                          2,667
     Stock issued for reverse merger expense                                                                     2,562,230
     Adjustment to statutory reserve                         (1,173,320)                                                --
     Dividend distributed                                    (3,204,548)                                        (3,204,548)
     Stock receivable                                                                                                   --
     Foreign currency translation adjustments                                                                           --
                                                            -----------      -----------      -----------     -----------
BALANCE, December 31, 2004                                  $ 2,376,395      $(5,760,000)     $        --     $ 7,146,118
                                                            ===========      ===========      ===========     ===========
</TABLE>

The accompanying notes are an integral part of this statement.

                                      F-4-
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003

<TABLE>
<CAPTION>
                                                               2004              2003
                                                           ------------      ------------
<S>                                                        <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                             $  4,525,488      $  3,575,863
    Adjustments to reconcile net income to cash
      provided by (used in) operating activities:
        Depreciation                                            209,113           156,714
        Loss on disposal of fixed assets                                            3,979
      (Increase) decrease in assets:
        Change in restricted cash                              (653,840)         (692,212)
        Accounts receivable - trade                          (3,566,857)          627,852
        Other receivables                                     3,408,110           617,492
        Other receivables - related party                       466,247          (466,247)
        Inventories                                           5,388,629       (16,394,365)
        Employee advances                                       146,912           (96,828)
        Prepaid expenses                                     (3,866,693)         (782,191)
        Deferred charges                                            241             2,232
      Increase (decrease) in liabilities:
        Accounts payable                                     (3,807,381)        7,153,780
        Advances from customers                              (3,337,987)        1,043,039
        Wages and benefits payable                            5,680,294            29,690
        Other taxes payable                                   2,641,964         2,562,420
        Accrued liability                                                              --
        Other payables                                       (1,880,834)       (1,998,541)
        Other payables - related party                       (1,080,000)          121,000
                                                           ------------      ------------
          Net cash used in operating activities               4,273,406        (4,536,323)
                                                           ------------      ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Increase (decrease) in Long-term investments                 97,417        (2,695,847)
    Increase in registered capital                            2,564,897                --
    Purchase of equipment and automobiles                    (1,406,068)          (33,565)
                                                           ------------      ------------
          Net cash used in investing activities               1,256,246        (2,729,412)
                                                           ------------      ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Dividend paid                                            (3,204,548)               --
    Cash received in consideration of stock receivable                          1,080,000
    Borrowings (payments) on short term notes payable        (2,601,500)        5,929,000
                                                           ------------      ------------
          Net cash provided by financing activities          (5,806,048)        7,009,000
                                                           ------------      ------------

INCREASE (DECREASE) IN CASH                                    (276,396)         (256,735)

CASH, beginning of year                                         476,352           733,087
                                                           ------------      ------------

CASH, end of year                                          $    199,956      $    476,352
                                                           ============      ============
</TABLE>

The accompany notes are an integral part of this statement.

                                      F-5-
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - Summary of significant accounting policies

Background

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

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

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

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

LFIC was  incorporated  on  September  24, 2003 in the  territory of the British
Virgin  Islands.  The authorized  capital of the Company is $10,800,000  divided
into  10,800,000  registered  shares  with a par value of $1.00 per  share.  The
Company is an investment  holding company and does not have any activities other
than some  general  administrative  expenses.  As of September  30,  2004,  LFIC
through its wholly owned subsidiary,  Xian New Star Real Estate Development Co.,
Ltd ("Newstar"), principally engaged in the construction,  development, and sale
of residential units in the People's Republic of China ("PRC").

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

On  September  16, 2003,  LFIC,  a  non-operating  investment  holding  company,
acquired  100%  interest in Newstar,  an operating  Chinese  registered  limited
liability  company,  for US$6,840,000 (RMB 56,505,430).  In accordance with laws
governing  foreign  acquisitions  of  a  Chinese  registered  limited  liability
company, there were two payment terms for this purchase. The first payment equal
to at least 15% of the total  purchase  price of Newstar was payable on December
31, 2003 and the second payment of the remaining balance payable on December 31,
2004.  The Company  obtained  the  approval of the  Foreign  Trade and  Economic
Cooperation  Commission of Xi'an City on December 22, 2003. The business term is
50 years  starting  on  December  24,  2003.  Newstar's  registered  capital  is
$6,050,000 (RMB  50,000,000) and total  investment is  approximately  $6,840,000
(RMB 56,505,430).  The first payment of $1,080,000 was made on December 30, 2003
from LFIC to Newstar. This payment was in accordance with the requirement of the
acquisition;  however  the  funds  have  not  been  disbursed  to  the  previous
stockholders of Newstar.


                                     - 6 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

During  November  2003,  LFIC  issued  6,840,000  shares of common  stock to the
identical  owners of Newstar in  consideration of a promissory note payable from
the former Newstar owners  totaling  $6,840,000 with a first payment equal to at
least 15% of the total  promissory  note  payable on  December  31, 2003 and the
second  payment of the  remaining  balance  payable on December 31,  2004.  As a
result of this transaction,  the former owners of Newstar exercised control over
LFIC.  The  initial  payment  under  the notes for  $1,080,000  was made  during
November 2003. The remaining  balance of $5,760,000 was due on December 31, 2004
and is  secured  by a pledge  of the  common  stock in LFIC  issued  to the LFIC
Stockholders.  The former  owners of Newstar  extended  this payment to June 30,
2005.

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

The reporting entity

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

Real estate held for development and sale

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

The following summarizes the components of real estate inventory at December 31:


                                     - 7 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                                                       2004              2003
                                                   -----------       -----------

XingXing Mansion                                    $       --       $ 1,848,442
XingXing Litu Ming Yuan                                146,926           177,693
Zhang An District project                                              1,043,044
XingXing Ming Yuan                                      45,133           377,291
XingXing Han Yuan                                                      2,326,645
XingXing Home In                                     2,000,413         4,658,388
XingXing Gang Wen                                    2,755,720
XingXing JunJin Yuan                                16,722,369
                                                   -----------       -----------

Real estate held for sale and rent                  21,670,561        10,431,503
XingXing Hotel                                              --           760,252
XingXing Gang Wen                                           --         3,082,128
XingXing JunJin Yuan                                 2,371,571        15,318,356
TownDu Machine Manufacture                           3,529,482         3,368,004
                                                   -----------       -----------

Real estate under construction                       5,901,053        22,528,740
                                                   -----------       -----------

Total                                              $27,571,614       $32,960,243
                                                   ===========       ===========

The Company capitalizes interest which is expensed as housing units and building
lots are sold. For the years ended December 31, 2004 and 2003, interest incurred
and capitalized by the Company was $352,540 and $323,141, respectively.

Management  evaluates the  recoverability  of its real estate  inventories using
several factors  including,  but not limited to,  management's  plans for future
operations,  recent operating  results and projected cash flows. The Company has
not  recognized  any impairment  loss of real estate  inventories  for the years
ended December 31, 2004 and 2003.

Foreign currency translation

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


                                     - 8 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Revenue recognition

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

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

Plant and equipment, net

Plant and equipment  are recorded at cost.  Depreciation  is computed  using the
straight-line method over the estimated useful lives of the assets. Depreciation
expense for the years ended  December 31, 2004 and 2003 amounted to $209,113 and
$156,714, respectively. Estimated useful lives of the assets are as follows:

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

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

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

Long-term  assets of the  Company  are  reviewed  annually  as to whether  their
carrying value has become impaired.  The Company considers assets to be impaired
if  the  carrying  value  exceeds  projected  future  cash  flows  from  related
operations.  The  Company  also  re-evaluates  the  periods of  amortization  to
determine whether subsequent events and circumstances  warrant revised estimates
of useful lives.  In 2001,  2002 and 2003, the Company  recognized an impairment
loss of approximately $303,963.

Plant and equipment consist of the following at December 31:


                                     - 9 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                                            2004              2003
                                        -----------       -----------
<S>                                     <C>               <C>
Buildings and improvements              $ 3,253,916       $ 1,971,939
Machinery and equipment                      99,436            90,648
Transportation equipment                    156,667            84,067
Furniture and fixture                        89,477            46,675
                                        -----------       -----------
       Totals                             3,599,496         2,193,329

Accumulated depreciation                   (749,751)         (540,539)
Reserve for impaired assets                (303,963)         (303,963)
                                        -----------       -----------
       Property and equipment, net      $ 2,545,782       $ 1,348,827
                                        ===========       ===========
</TABLE>

Accounts receivable, trade

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

Accounts  receivables  of the Company are reviewed  annually as to whether their
carrying  value has become  impaired.  The  Company  considers  the assets to be
impaired if the  balances are greater than one year old. As of December 31, 2004
and 2003,  the Company has  established  an allowance  for doubtful  accounts of
$370,246 and $314,768, respectively.

Other receivables

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

Other  receivables are reviewed  annually as to whether their carrying value has
become impaired. The Company considers the assets to be impaired if the balances
are greater than one year old. As of December 31, 2004 and 2003, the Company has
established an allowance for doubtful accounts of $1,090,852.

Prepaid expenses

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

Long term Investment

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


                                     - 10 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
        Investee            Initial Cost    Ownership      AS 12/31/2003      (loss)income     AS 12/31/2004
        --------            ------------    ---------      -------------      ------------     -------------
<S>                         <C>               <C>          <C>                 <C>              <C>
Xian Xin Da Di Science
 Development Ltd            $ 2,299,000       95%          $ 2,227,276.00      $ (119,336)      $ 2,107,940

Xian Xin Li Moca
 Material Ltd                   484,000       80%              468,572.00          21,918           490,490
                            -----------                    --------------      ----------       -----------
Total                       $ 2,783,000                    $ 2,695,848.00      $  (97,418)      $ 2,598,430
                            ===========                    ==============      ==========       ===========
</TABLE>

During  September 2003,  Newstar  invested  $2,299,000 in Xian Xin Da Di Science
Development, Ltd. The operations of Xian Xin Da Di Science Development, Ltd. are
primarily related to project investment.

During 2003,  Newstar  advanced  $466,247 to Xian Xin Da Di Science  Development
Ltd. The balance is unsecured, non-interest bearing and due on demand.

During July 2003,  Newstar invested $484,000 in Xian Xin Li Moca Material,  Ltd.
The  operation  of Xian Xin Li Moca  Material,  Ltd.  is  related  to  producing
equipment.

As of  December  31,  2004,  Newstar had an unpaid  balance of $121,000  for the
investment in Xian Xin Li Moca Material Ltd.

Use of estimates

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

Recently issued accounting pronouncements

In  March  2004,   the  FASB  issued  EITF  Issue  No.  03-1,   The  Meaning  of
Other-Than-Temporary Impairment and Its Application to Certain Investments. EITF
03-1 includes new guidance for  evaluating  and recording  impairment  losses on
debt  and  equity  investments,  as  well  as new  disclosure  requirements  for
investments that are deemed to be temporarily  impaired.  In September 2004, the
FASB issued Staff  Position EITF 03-1-1,  which delays the effective  date until
additional  guidance  is  issued  for the  application  of the  recognition  and
measurement  provisions  of EITF  03-1 to  investments  in  securities  that are
impaired;  however, the disclosure requirements are effective for annual periods
ending after June 15, 2004.  Although the Company will  continue to evaluate the
application of EITF 03-1,  management does not currently  believe  adoption will
have a  material  impact on the  Company's  financial  position  or  results  of
operations.


                                     - 11 -

<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


In November 2004, the FASB issued SFAS No. 151, Inventory Costs, an amendment of
ARB No. 43, Chapter 4. This statement amends the guidance in ARB No. 43, Chapter
4, Inventory  Pricing,  to clarify the  accounting for abnormal  amounts of idle
facility  expense,  freight,  handling costs,  and wasted  material  (spoilage).
Paragraph 5 of ARB No. 43,  Chapter 4,  previously  stated that  "...under  some
circumstances,  items such as idle facility expense,  excessive spoilage, double
freight,  and  rehandling  costs may be so abnormal as to require  treatment  as
current period  charges..." SFAS No. 151 requires that those items be recognized
as current-period  charges  regardless of whether they meet the criterion of "so
abnormal."  In addition,  this  requires  that  allocation  of fixed  production
overhead  to the costs of  conversion  be based on the  normal  capacity  of the
production facilities.

The provisions of SFAS 151 shall be applied  prospectively and are effective for
inventory costs incurred during fiscal years beginning after June 15, 2005, with
earlier  application  permitted for inventory costs incurred during fiscal years
beginning  after the date this Statement was issued.  The Company's  adoption of
SFAS  No.  151 is not  currently  expected  to  have a  material  impact  on the
Company's financial position or results of operations.

In December 2004, the FASB issued SFAS No. 123(R) (revised  2004),  "Share-Based
Payment",  which amends FASB  Statement No. 123 and will be effective for public
companies  for interim or annual  periods  beginning  after June 15,  2005.  The
revised  standard  requires,  among  other  things  that  compensation  cost for
employee  stock  options be measured at fair value on the grant date and charged
to expense over the employee's  requisite service period for the option.  Due to
the absence of observable market prices for employee stock options, the standard
indicates that the fair value of most stock options will be determined  using an
option-pricing model. The Company's adoption of SFAS No. 123(R) is not currently
expected  to have a  material  impact on the  Company's  financial  position  or
results of operations.

In December 2004, the FASB issued SFAS No. 153, Exchanges of Nonmonetary Assets,
an  amendment  of APB  Opinion  No.  29. The  guidance  in APB  Opinion  No. 29,
Accounting  for  Nonmonetary  Transactions,  is  based  on  the  principle  that
exchanges of  nonmonetary  assets should be measured  based on the fair value of
assets  exchanged.  The  guidance in that  Opinion,  however,  included  certain
exceptions to that principle.

This  Statement  amends  Opinion 29 to eliminate the  exception for  nonmonetary
exchanges of similar productive assets that do not have commercial substance.  A
nonmonetary  exchange has  commercial  substance if the future cash flows of the
entity are expected to change  significantly  as a result of the exchange.  SFAS
No. 153 is effective  for  nonmonetary  exchanges  occurring  in fiscal  periods
beginning  after June 15, 2005.  The  Company's  adoption of SFAS No. 153 is not
expected  to have a  material  impact on the  Company's  financial  position  or
results of operations.

Cash and concentration of risk

Cash  includes  cash on hand and demand  deposits  in accounts  maintained  with
state-owned  banks  within  the  People's  Republic  of  China.  Total  cash  in
state-owned  banks at  December  31,  2004  and 2003  amounted  to  $40,515  and
$475,352,  respectively,  of which no  deposits  are covered by  insurance.  The
Company has not  experienced  any losses in such accounts and believes it is not
exposed to any risks on its cash in bank accounts.


                                     - 12 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Cash-restricted

The  Company,  through its bank  agreements,  is  required  to maintain  certain
amounts which buyers have  deposited with the Company which allows the buyers to
obtain  mortgage  loans from the bank.  These balances are subject to withdrawal
restrictions totaling $1,508,376 and $854,536, as of December 31, 2004 and 2003,
respectively.

Advertising cost

The Company expenses advertising costs as incurred. For the years ended December
31, 2004, 2003, the Company incurred advertising costs of $869,816 and $674,402,
respectively.

Financial instruments

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

Income taxes

The Company has adopted  Statement of Financial  Accounting  Standards  No. 109,
"Accounting  for Income Taxes" (SFAS 109).  SFAS 109 requires the recognition of
deferred  income  tax  liabilities  and  assets  for  the  expected  future  tax
consequences  of temporary  differences  between  income tax basis and financial
reporting basis of assets and liabilities. Provision for income taxes consist of
taxes  currently due plus deferred  taxes.  There are no deferred tax amounts at
December 31, 2004, 2003.

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

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

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

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


                                     - 13 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

The provision for income taxes at December 31 consisted of the following:

                                                        2004             2003
                                                     ----------       ----------
Provision for China Income and local tax             $3,558,640       $1,829,039
Deferred taxes                                               --               --
                                                     ----------       ----------
       Total provision for income taxes              $3,558,640       $1,829,039
                                                     ==========       ==========

Income taxes, (continued)

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

                                                     2004             2003
                                                    ------           ------
U.S. Statutory rates                                  34.0%            34.0%
Foreign income not recognized in USA                 (34.0)           (34.0)
China income taxes                                    33.0             33.0
                                                    ------           ------
       Totals                                         33.0%            33.0%
                                                    ======           ======

Advances from customers

Advances from  customers  consist of amounts paid to the Company for the sale of
residential  units in the PRC. In the PRC, the customer  will  generally  obtain
permanent  financing  for the  purchase of their  residential  unit prior to the
completion of the project.  The lending  institution will provide the funding to
the Company upon the  completion of the financing  rather than the completion of
the project.  The Company  receives these funds and recognizes them as a current
liability  until the revenue can be recognized in accordance  with  Statement of
Financial Accounting Standard No. 66 (Accounting for Sales of Real Estate).

Other payables

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

Earnings per share

The  Company  adopted  Statement  of  Financial  Accounting  Standards  No. 128,
"Earnings Per Share" (SFAS 128). SFAS 128 requires the  presentation of earnings
per share (EPS) as Basic EPS and Diluted EPS. There are no  differences  between
Basic and Diluted EPS for the years ended December 31, 2004 and 2003.


                                     - 14 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


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

Note 2 - Supplemental disclosure of cash flow information

Income taxes paid  amounted to $80,950 and 130,712 for the years ended  December
31, 2004 and 2003, respectively.  Interest paid for the years ended December 31,
2004 and 2003 amounted to $672,079 and $920,945 respectively.

Note 3 - Employee advances

Other non-current  assets represents cash advances to officers and employees for
cash based business  transactions incurred for the payment of operating expenses
and purchases from various vendors.

Note 4 - Short-term loans payable - bank

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


                                     - 15 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                                                         2004            2003
                                                      ----------      ----------

Commercial Bank Weilai  Branch
       due July 27, 2005  monthly  interest
       at 0.57525%, guaranteed by the Company
       Xing Xing Mansion and Ming Yuan Projects       $5,445,000      $       --

Commercial Bank Weilai Branch
       due January 16, 2005 monthly interest
       at 0.59474%, guaranteed by the Company
       Xing Xing Home In Project                       2,178,000              --

Construction Bank Zhuque Road Branch
       Due October 16, 2004,  monthly  interest
       at 0.460%, guaranteed by the Company
       Xing Xing Han Yuan Project                             --       1,815,000

Construction Bank Zhuque Road Branch
       Due Novermber 26, 2004, monthly interest
       at 0.460%, guaranteed by the Company
       Xing Xing Han Yuan Project                             --         726,000

Commercial Bank Weilai Branch
       Due July 28, 2004, monthly interest
       at 0,57525%, guaranteed by the Company
       Xing Xing Ming Yuan Project                            --       5,445,000

Commercial Bank Weilai Branch
       Due July 30, 2004, monthly interest
       at 0,57525%, guaranteed by the Company
       Xing Xing Ming Home In Project                         --       1,210,000
                                                      ----------      ----------
          Total                                       $7,623,000      $9,196,000
                                                      ==========      ==========

Note 5 - Long Term debt

Long term debt at December 31, consisted of the following:


                                     - 16 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                                                         2004            2003
                                                      ----------      ----------

Construction Bank  Zhuque  Road  Branch
       Due May 25, 2007,  monthly  interest
       at 0.5758%, guaranteed by the Company
       Xing Xing JunJin Yuan Project                   4,235,000              --

Construction Bank  Zhuque Road  Branch
       Due March 21, 2006 monthly  interest
       at 0.4575%, guaranteed by the Company
       Xing Xing Gang Wen Project                             --       3,630,000

Commercial Bank South Two Ring Road Branch
       Due January 16, 2005, montly interest
       at 0.59475%, Guaranteed by the Company
       Xing Xing Home In Project                              --       2,178,000
                                                      ----------      ----------
          Total                                       $4,235,000      $5,808,000
                                                      ==========      ==========

As of December 31, 2004, principal payments on long term debt are as follows:

                         2005               $       --
                         2006                       --
                         2007                4,235,000
                                            ----------
                                            $4,235,000
                                            ==========

Total interest  expense on all bank debt for the years ending  December 31, 2004
and 2003 amounted to $1,025,597 and $920,945, respectively.

Note 6 - Reserves and dividends

In accordance with the laws and  regulations of the PRC, a wholly-owned  Foreign
Invested  Enterprises'  income, 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 funds is no less
than 10  percent  of the  profit  after  tax  until  the  accumulated  amount of
allocation  for  statutory  surplus  reserve  funds  reaches  50  percent of the
registered capital.

The  proportion of allocation  for statutory  public welfare fund and enterprise
expansion  fund is decided by the  enterprise  itself.  A  wholly-owned  Foreign
Invested  Enterprise  does not have to establish or  contribute to an enterprise
expansion fund.

Statutory  surplus reserves are to be utilized to offset prior years' losses, or
to increase its share  capital.  When the  statutory  surplus  reserve fund of a
limited liability company converts its surplus reserves to capital in accordance
with a shareholders'  resolution,  the company will either distribute new shares
in proportion to the number of shares held by the each shareholder,  or increase
the par value of each share.  Except for the reduction of losses  incurred,  any
other usage should not result in this reserve  balance  falling below 25% of the
registered capital.


                                     - 17 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Pursuant to the board of directors'  resolution,  Newstar transferred 10% of its
net income,  as  determined  in  accordance  with the PRC  accounting  rules and
regulations,  to a statutory  surplus  reserve fund until such  reserve  balance
reaches 50% of Newstar's registered capital.

The transfer to this reserve must be made before  distributions of any dividends
to  shareholders.  For the years  ended  December  31,  2004 and  2003,  Newstar
transferred  $782,214 and $357,586,  respectively  which  represents  10% of the
years'  net  income  determined  in  accordance  with PRC  accounting  rules and
regulations  to this  surplus  reserve.  In  addition,  the Company  voluntarily
transferred  $391,106 and $178,794 to a statutory  surplus  reserve fund for the
year ended December 31, 2004 and 2003, respectively.

Pursuant to the board of directors'  resolution,  a total dividend of $3,204,548
was paid for the year ended December 31, 2004.

Note 7 - Retirement benefit plans

Regulations  in  the  PRC  require  the  Company  to  contribute  to  a  defined
contribution  retirement  plan for all  permanent  employees.  During 2002,  the
Company  established a retirement  pension  insurance,  unemployment  insurance,
health insurance and house  accumulation  fund for the employees during the term
they are employed.  The amount of those benefits is made at 34% of monthly basic
salaries of the current  employees.  For the years ended  December  31, 2004 and
2003,  the  Company  made  contributions  in the  amount  of  $8,623and  $7,095,
respectively.

Note 8 - Related party transactions and contingencies

During  November  2003,  LFIC  issued  6,840,000  shares of common  stock to the
identical  owners of Newstar in  consideration of a promissory note payable from
the former Newstar owners  totaling  $6,840,000 with a first payment equal to at
least 15% of the total  promissory  note  payable on  December  31, 2003 and the
second  payment of the  remaining  balance  payable on December 31,  2004.  As a
result of this transaction,  the former owners of Newstar exercised control over
LFIC.  The  initial  payment  under  the notes for  $1,080,000  was made  during
November 2003. The remaining  balance of $5,760,000 was due on December 31, 2004
and is  secured  by a pledge  of the  common  stock in LFIC  issued  to the LFIC
Stockholders.  The former  Newstar  owners agreed to extend this payment to June
30, 2005.

During 2003,  Newstar  advanced  $466,247 to Xian Xin Da Di Science  Development
Ltd. The balance is  unsecured,  non-interest  bearing and due on demand and was
paid off during 2004.

As of  December  31,  2004,  Newstar had an unpaid  balance of $121,000  for the
investment in Xian Xin Li Moca Material Ltd.

Note 9- Shareholders' equity

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


                                     - 18 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

On  September  16, 2003,  LFIC,  a  non-operating  investment  holding  company,
acquired  100%  interest in Newstar,  an operating  Chinese  registered  limited
liability  company,  for US$6,840,000 (RMB 56,505,430).  In accordance with laws
governing  foreign  acquisitions  of  a  Chinese  registered  limited  liability
company, there were two payment terms for this purchase. The first payment equal
to at least 15% of the total  purchase  price of Newstar was payable on December
31, 2003 and the second payment of the remaining balance payable on December 31,
2004.  The Company  obtained  the  approval of the  Foreign  Trade and  Economic
Cooperation  Commission of Xi'an City on December 22, 2003. The business term is
50 years  starting  on  December  24,  2003.  Newstar's  registered  capital  is
$6,050,000 (RMB  50,000,000) and total  investment is  approximately  $6,840,000
(RMB 56,505,430).  The first payment of $1,080,000 was made on December 30, 2003
from LFIC to Newstar. This payment was in accordance with the requirement of the
acquisition;  however  the  funds  have  not  been  disbursed  to  the  previous
stockholders of Newstar.

During  November  2003,  LFIC  issued  6,840,000  shares of common  stock to the
identical  owners of Newstar in  consideration of a promissory note payable from
the former Newstar owners  totaling  $6,840,000 with a first payment equal to at
least 15% of the total  promissory  note  payable on  December  31, 2003 and the
second  payment of the  remaining  balance  payable on December 31,  2004.  As a
result of this transaction,  the former owners of Newstar exercised control over
LFIC.  The  initial  payment  under  the notes for  $1,080,000  was made  during
November 2003. The remaining  balance of $5,760,000 was due on December 31, 2004
and is  secured  by a pledge  of the  common  stock in LFIC  issued  to the LFIC
Stockholders.  The former  Newstar  owners agreed to extend this payment to June
30, 2005.

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

The Company has not granted warrants or options for the years ended December 31,
2004 and 2003. The Company has no warrants or options outstanding as of December
31, 2004 and 2003.

Note 10- Purchase of 100% interest

On September 16, 2003,  LFIC acquired 100% interest in Newstar for  US$6,840,000
(RMB 56,505,430).  There were two payment terms for this purchase. LFIC obtained
the approval of the Foreign Trade and Economic  Cooperation  Commission of Xi'an
City on December 22, 2003.  The business term is 50 years starting on the date a
new  business  certificate  issued on December 24,  2003.  Newstar's  registered
capital is $6,050,000  (RMB  50,000,000) and total  investment is  approximately
$6,840,000 (RMB 56,505,430).  The initial payment under the notes for $1,080,000
was made during  November 2003.  The remaining  balance of $5,760,000 was due on
December  31, 2004 and is secured by a pledge of the common stock in LFIC issued
to the LFIC  Stockholders.  The  former  Newstar  owners  agreed to extend  this
payment to June 30, 2005

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


                                     - 19 -
<PAGE>

                   LANBO FINANCIAL GROUP, INC. AND SUBSIDIARY
             (FORMERLY KNOWN AS MICRO INTERCONNECT TECHNOLOGY, INC.)

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

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

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


                                     - 20 -