UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION





Washington,
D. C. 20549





FORM
10-KSB







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





For the fiscal year ended
December 31, 2007





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





For the
transition period from _______   to________





Commission File No.
0-28181








ORANCO,
INC.





(Name of
Small Business Issuer in its Charter)





Nevada
            87-05744(State
      or Other Jurisdiction of incorporation or organization)
            (I.R.S.
      Employer I.D. No.)








1981 East
4800 South, Suite 110


Salt Lake City, Utah
84117


(Address
of Principal Executive Offices)


Issuer's
Telephone Number: (702) 939-4728





__________


(Former
Name or Former Address, if changed since last Report)





Securities
Registered under Section 12(b) of the Exchange
Act:    None


Name of
Each Exchange on Which
Registered:                            
None


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





Check
whether the Issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the Company was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.





(1)   Yes  [X]    No
[  ]           (2)   Yes
[X]    No  [  ]





Check if
disclosure of delinquent filers in response to Item 405 of Regulation S-B is not
contained in this form, and no disclosure will be contained, to the best of
Company's knowledge, in definitive proxy or information statements incorporated
by reference in Part III of this Form 10-KSB or any amendment to this Form
10-KSB. [ ]








Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act)




Yes [X]
No [  ]





State
Issuer's revenues for its most recent fiscal year. $7,462, including interest
income.




State the
aggregate market value of the voting stock held by non-affiliates computed by
reference to the price at which the stock was sold, or the average bid and asked
prices of such stock, as of a specified date within the past 60
days.





At March
15, 2008, the market value of the voting stock held by non-affiliates is
undeterminable and is considered to be 0.





(APPLICABLE
ONLY TO CORPORATE ISSUERS)





State the
number of shares outstanding of each of the Issuer's classes of common equity,
as of the latest practicable date:





March 15,
2008


4,269,950





DOCUMENTS
INCORPORATED BY REFERENCE





List
hereunder the following documents if incorporated by reference and the part of
the form 10- KSB (e.g., part I, part II, etc.) into which the document is
incorporated: (1) Any annual report to security holders; (2) any proxy or other
information statement; and (3) Any prospectus filed pursuant to rule 424 (b) or
©) under the Securities Act of 1933: None











TABLE
OF CONTENTS




PART
      I
              
              PageITEM
      1.
              DESCRIPTION
      OF BUSINESS
              4ITEM
      2.
              DESCRIPTION
      OF PROPERTIES
              9ITEM
      3.
              LEGAL
      PROCEEDINGS
              9ITEM
      4.
              SUBMISSION
      OF MATTERS TO VOTE OF SECURITY HOLDERS
              9PART
      IIITEM
      5.
              MARKET
      FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
              9ITEM
      6.
              MANAGEMENT'S
      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
              10ITEM
      7.
              FINANCIAL
      STATEMENTS
              12ITEM
      8.
              CHANGES
      IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
      DISCLOSURE
              12ITEM
      8A.
              CONTROLS
      AND PROCEDURES
              12ITEM
      8B.
              OTHER
      INFORMATION
              13PART
      IIIITEM
      9.
              DIRECTORS,
      EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL PERSONS; COMPLIANCE
      WITH SECTION 16 (a) OF THE EXCHANGE ACT
              13ITEM
      10.
              EXECUTIVE
      COMPENSATION
              15ITEM
      11.
              SECURITY
      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
      MANAGEMENT
              16ITEM
      12.
              CERTAIN
      RELATIONSHIPS AND RELATED TRANSACTIONS
              18ITEM
      13.
              EXHIBITS
              18ITEM
      14.
              PRINCIPAL
      ACCOUNTANT FEES AND SERVICES
              19







3




PART I





Item
1.  Description of Business.





Business
Development.





Organization and Charter
Amendments.





Oranco,
Inc., (the "Company") was incorporated under the laws of the State of Nevada, on
June 10, 1977. The purposes for which the corporation was organized were: (1)to
engage in any lawful business from time to time authorized by the board of
directors, (2) to act as principal, agent, partner or joint venturer or in any
other capacity in any transaction, (3) to do business anywhere in the world, and
(4) to have and exercise all rights and powers from time to time granted to the
corporation by law. From 1977 until 1981 the Company was dormant and undertook
no activities. Beginning in 1982 the Company explored the option of entering
into a joint venture to develop a mercury mining property at Mercury Mountain,
Nevada. As a part of these activities the Company, through the sale of its
common stock, raised funds to engage the services of an independent mining
engineer to prepare a report on the feasibility of the project. By late 1983 it
had been determined that the project did not warrant any further investment.
From that time until 1997 the Company’s activities concentrated on maintaining
its corporate existence and looking for other opportunities for the Company. In
May of 1997 new management was appointed, a shareholders’ meeting was held,
amendments to the Company’s articles of incorporation were approved, and
additional effort was made by new management to make the Company a viable merger
candidate. These efforts included engaging the services of a certified Public
Accounting firm to audit the Company’s financial statements, obtaining an
Opinion of Counsel as to the tradability of the Company’s outstanding shares,
preparation of the information required by Rule 15c2-11, and applying to the OTC
Bulletin Board for trading on the medium.





By
September of 1999, no viable acquisitions or merger candidates had been located
for the Company and management became aware that the Company would be required
to register its shares under the Securities Exchange Act of 1934 in order to
maintain its stock on the OTC Bulletin Board. Management determined that the
Company needed new management which might be better positioned to find a
suitable acquisition or merger candidate and which would be in a position of
funding the upcoming expenses of the Company. On September 1, 1999 management of
the Company resigned and Claudio Gianascio was appointed as sole director and
officer. On November 9, 1999 the Company sold 700,000 of its common stock to Mr.
Gianascio for $.05 per share, netting a total of $35,000. On November 18, 1999
the Company filed a registration statement on Form 10SB which became effective
sixty days thereafter.





The
Company had an initial authorized capital of $25,000 consisting of 100,000
shares of $.25 par value common stock. On June 10, 1997 the shareholders
approved an amendment to the Articles of Incorporation of The Company changing
the authorized capital to 100,000,000 shares at a par value of $.001 and
providing for a 10 to 1 share forward split of the outstanding shares. The
Articles of Amendment were filed with the State of Nevada on August 6,
1998.





In the
summer of 2000, the Company completed a private placement of 2,500,000 units for
which it received $250,000 Each unit consisted of one share of common stock; one
“a” warrant giving the holder thereof the right to purchase, upon a minimum of
60 days prior notice of exercise, one share of common stock at $.10 per share
within two years of the date of issuance; and one “b” warrant giving the holder
thereof the right to purchase, upon a minimum of 60 days prior notice of
exercise, one share of common stock at $.25 per share within two years of the
date of issuance. Both “a” & “b” warrants expired without
exercise.


4





Business.





Other
than the above-referenced matters and seeking and investigating potential
assets, properties or businesses to acquire, the Company has had no business
operations since inception. To provide revenue on an interim basis, on March 29,
2004 the Company entered into an agreement with Air Packaging Technologies, Inc.
(“AIRP”) to fund an evaluation of a lawsuit by it against 3M Corp. for 3M’s
failure to use reasonable efforts to sell the products of AIRP to which it had
exclusive rights, thus causing the failure of AIRP’s business plan for lack of
revenue. The cause of action was settled in September of 2005. All amounts
advanced by the Company on this matter were considered loans with interest at
12% per annum and secured by a lien against the assets of AIRP. In the event of
a recovery, the Company was entitled to a return of all amounts advanced and 60%
of the net proceeds from the recovery. As of September 30, 2002 the Company had
advanced $99,327, including accrued interest. In November 2005 the Company
received payment of $178,833, which repaid the Company for all amounts advanced,
12% interest, and 60% of the net proceeds received from the
recovery.





To the
extent that the Company intends to continue to seek the acquisition of assets,
property or business that may benefit the Company and its stockholders, it is
essentially a "blank check" company. Because the Company has limited assets and
conducts no business, management anticipates that any such acquisition would
require it to issue shares of its common stock as the sole consideration for the
acquisition. This may result in substantial dilution of the shares of current
stockholders. The Company's Board of Directors shall make the final
determination whether to complete any such acquisition; the approval of
stockholders will not be sought unless required by applicable laws, rules and
regulations, its Articles of Incorporation or Bylaws, or contract. The Company
makes no assurance that any future enterprise will be profitable or
successful.





The
Company is not currently engaging in any substantive business activity and has
no plans to engage in any such activity in the foreseeable future. In its
present form, the Company may be deemed to be a vehicle to acquire or merge with
a business or company. The Company does not intend to restrict its search to any
particular business or industry, and the areas in which it will seek out
acquisitions, reorganizations or mergers may include, but will not be limited
to, the fields of high technology, manufacturing, natural resources, service,
research and development, communications, transportation, insurance, brokerage,
finance and all medically related fields, among others. The Company recognizes
that the number of suitable potential business ventures that may be available to
it may be extremely limited, and may be restricted to entities who desire to
avoid what these entities may deem to be the adverse factors related to an
initial public offering ("IPO"). The most prevalent of these factors include
substantial time requirements, legal and accounting costs, the inability to
obtain an underwriter who is willing to publicly offer and sell shares, the lack
of or the inability to obtain the required financial statements for such an
undertaking, limitations on the amount of dilution to public investors in
comparison to the stockholders of any such entities, along with other conditions
or requirements imposed by various federal and state securities laws, rules and
regulations. Any of these types of entities, regardless of their prospects,
would require the Company to issue a substantial number of shares of its common
stock to complete any such acquisition, reorganization or merger, usually
amounting to between 80 and 95 percent of the outstanding shares of the Company
following the completion of any such transaction; accordingly, investments in
any such private entity, if available, would be much more favorable than any
investment in the Company.


5





In the
event that the Company engages in any transaction resulting in a change of
control of the Company and/or the acquisition of a business, the Company will be
required to file with the Commission a Current Report on Form 8-K within 15 days
of such transaction. A filing on Form 8-K also requires the filing of audited
financial statements of the business acquired, as well as pro forma financial
information consisting of a pro forma condensed balance sheet, pro forma
statements of income and accompanying explanatory notes.





Management
intends to consider a number of factors prior to making any decision as to
whether to participate in any specific business endeavor, none of which may be
determinative or provide any assurance of success. These may include, but will
not be limited to an analysis of the quality of the entity's management
personnel; the anticipated acceptability of any new products or marketing
concepts; the merit of technological changes; its present financial condition,
projected growth potential and available technical, financial and managerial
resources; its working capital, history of operations and future prospects; the
nature of its present and expected competition; the quality and experience of
its management services and the depth of its management; its potential for
further research, development or exploration; risk factors specifically related
to its business operations; its potential for growth, expansion and profit; the
perceived public recognition or acceptance of its products, services, trademarks
and name identification; and numerous other factors which are difficult, if not
impossible, to properly or accurately analyze, let alone describe or identify,
without referring to specific objective criteria.




Regardless,
the results of operations of any specific entity may not necessarily be
indicative of what may occur in the future, by reason of changing market
strategies, plant or product expansion, changes in product emphasis, future
management personnel and changes in innumerable other factors. Further, in the
case of a new business venture or one that is in a research and development
mode, the risks will be substantial, and there will be no objective criteria to
examine the effectiveness or the abilities of its management or its business
objectives. Also, a firm market for its products or services may yet need to be
established, and with no past track record, the profitability of any such entity
will be unproven and cannot be predicted with any certainty.
 
 Management
will attempt to meet personally with management and key personnel of the entity
sponsoring any business opportunity afforded to the Company, visit and inspect
material facilities, obtain independent analysis or verification of information
provided and gathered, check references of management and key personnel and
conduct other reasonably prudent measures calculated to ensure a reasonably
thorough review of any particular business opportunity; however, due to time
constraints of management, these activities may be limited.
 
 The
Company is unable to predict the time as to when and if it may actually
participate in any specific business endeavor. The Company anticipates that
proposed business ventures will be made available to it through personal
contacts of directors, executive officers and principal stockholders,
professional advisors, broker dealers in securities, venture capital personnel,
members of the financial community and others who may present unsolicited
proposals. In certain cases, the Company may agree to pay a finder's fee or to
otherwise compensate the persons who submit a potential business endeavor in
which the Company eventually participates. Such persons may include the
Company's directors, executive officers, beneficial owners or their affiliates.
In this event, such fees may become a factor in negotiations regarding a
potential acquisition and, accordingly, may present a conflict of interest for
such individuals.
 
 Although
the Company has not identified any potential acquisition target, the possibility
exists that the Company may acquire or merge with a business or company in which
the Company's executive officers, directors, beneficial owners or their
affiliates may have an ownership interest. Current Company policy does not
prohibit such transactions. Because no such transaction is currently
contemplated, it is impossible to estimate the potential pecuniary benefits to
these persons.


6




Further,
substantial fees are often paid in connection with the completion of these types
of acquisitions, reorganizations or mergers, ranging from a small amount to as
much as $250,000. These fees are usually divided among promoters or founders,
after deduction of legal, accounting and other related expenses, and it is not
unusual for a portion of these fees to be paid to members of management or to
principal stockholders as consideration for their agreement to retire a portion
of the shares of common stock owned by them. In the event that such fees are
paid, they may become a factor in negotiations regarding any potential
acquisition by the Company and, accordingly, may present a conflict of interest
for such individuals.


Principal
Products and Services.





The
limited business operations of the Company, as now contemplated, involve those
of a "blank check" company. The only activities to be conducted by the Company
are to manage its current limited assets and to seek out and investigate the
acquisition of any viable business opportunity by purchase and exchange for
securities of the Company or pursuant to a reorganization or merger through
which securities of the Company will be issued or exchanged.





Distribution Methods of the
Products or Services.





Management
will seek out and investigate business opportunities through every reasonably
available fashion, including personal contacts, professionals, securities broker
dealers, venture capital personnel, members of the financial community and
others who may present unsolicited proposals; the Company may also advertise its
availability as a vehicle to bring a company to the public market through a
"reverse" reorganization or merger.


Status of any Publicly
Announced New Product or Service.





None; not
applicable.





Competitive Business
Conditions.





Management
believes that there are literally thousands of "blank check" companies engaged
in endeavors similar to those engaged in by the Company; many of these companies
have substantial current assets and cash reserves. Competitors also include
thousands of other publicly-held companies whose business operations have proven
unsuccessful, and whose only viable business opportunity is that of providing a
publicly-held vehicle through which a private entity may have access to the
public capital markets. There is no reasonable way to predict the competitive
position of the Company or any other entity in the strata of these endeavors;
however, the Company, having limited assets and cash reserves, will no doubt be
at a competitive disadvantage in competing with entities which have recently
completed IPO's, have significant cash resources and have recent operating
histories when compared with the complete lack of any substantive operations by
the Company for the past several years.






7


Sources and Availability of
Raw Materials and Names of Principal Suppliers.





None; not
applicable.





Dependence on One or a Few
Major Customers.





None; not
applicable.





Patents, Trademarks,
Licenses, Franchises, Concessions, Royalty Agreements or Labor
Contracts.





None; not
applicable.





Need for any Governmental
Approval of Principal Products or Services.





Because
the Company currently produces no products or services, it is not presently
subject to any governmental regulation in this regard. However, in the event
that the Company engages in a merger or acquisition transaction with an entity
that engages in such activities, it will become subject to all governmental
approval requirements to which the merged or acquired entity is
subject.





Effect of Existing or
Probable Governmental Regulations on Business.





The
integrated disclosure system for small business issuers adopted by the
Commission in Release No. 34-30968 and effective as of August 13, 1992,
substantially modified the information and financial requirements of a "Small
Business Issuer," defined to be an issuer that has revenues of less than $25
million; is a U.S. or Canadian issuer; is not an investment company; and if a
majority-owned subsidiary, the parent is also a small business issuer; provided,
however, an entity is not a small business issuer if it has a public float (the
aggregate market value of the issuer's outstanding securities held by
non-affiliates) of $25 million or more.





The
Commission, state securities commissions and the North American Securities
Administrators Association, Inc. ("NASAA") have expressed an interest in
adopting policies that will streamline the registration process and make it
easier for a small business issuer to have access to the public capital markets.
The present laws, rules and regulations designed to promote availability to the
small business issuer of these capital markets and similar laws, rules and
regulations that may be adopted in the future will substantially limit the
demand for "blank check" companies like the Company, and may make the use of
these companies obsolete.





Research and
Development.





None; not
applicable.





Cost and Effects of
Compliance with Environmental Laws.





None; not
applicable. However, environmental laws, rules and regulations may have an
adverse effect on any business venture viewed by the Company as an attractive
acquisition, reorganization or merger candidate, and these factors may further
limit the number of potential candidates available to the Company for
acquisition, reorganization or merger.


8





Number of
Employees.





None.





Item
2.  Description of Property.





The
Company has no assets, property or business; its principal executive office
address and is the business office address of its transfer agent, Interwest
Transfer Co., Inc., and is currently provided at no cost. Because the Company
has had no business, its activities will be limited to keeping itself in good
standing in the State of Nevada, seeking out acquisitions, reorganizations or
mergers and preparing and filing the appropriate reports with the Securities and
Exchange Commission. These activities have consumed an insubstantial amount of
management's time.





Item
3.  Legal Proceedings.





The
Company is not a party to any pending legal proceeding. To the knowledge of
management, no federal, state or local governmental agency is presently
contemplating any proceeding against the Company. No director, executive officer
or affiliate of the Company or owner of record or beneficially of more than five
percent of the Company's common stock is a party adverse to the Company or has a
material interest adverse to the Company in any proceeding.





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





No matter
was submitted to a vote of the Company's security holders during the fourth
quarter of the calendar year covered by this Report.








PART II





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





Market
Information





There is
no "public market" for shares of common stock of the Company. Although the
Company’s shares are quoted on the OTC Bulletin Board of the National
Association of Securities Dealers, the Company is aware of only two transactions
having taken place, one in the year 2000 and the other in 2005. In any event, no
assurance can be given that any market for the Company's common stock will
develop or be maintained.





The
ability of an individual shareholder to trade their shares in a particular state
may be subject to various rules and regulations of that state. A number of
states require that an issuer's securities be registered in their state or
appropriately exempted from registration before the securities are permitted to
trade in that state. Presently, the Company has no plans to register its
securities in any particular state. Further, most likely the Company's shares
will be subject to the provisions of Section 15(g) and Rule 15g-9 of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), commonly
referred to as the "penny stock" rule. Section 15(g) sets forth certain
requirements for transactions in penny stocks and Rule 15g-9(d)(1) incorporates
the definition of penny stock as that used in Rule 3a51-1 of the Exchange
Act.


9





The
Commission generally defines penny stock to be any equity security that has a
market price less than $5.00 per share, subject to certain exceptions. Rule
3a51-1 provides that any equity security is considered to be a penny stock
unless that security is: registered and traded on a national securities exchange
meeting specified criteria set by the Commission; authorized for quotation on
The NASDAQ Stock Market; issued by a registered investment company; excluded
from the definition on the basis of price (at least $5.00 per share) or the
issuer's net tangible assets; or exempted from the definition by the Commission.
If the Company's shares are deemed to be a penny stock, trading in the shares
will be subject to additional sales practice requirements on broker- dealers who
sell penny stocks to persons other than established customers and accredited
investors, generally persons with assets in excess of $1,000,000 or annual
income exceeding $200,000, or $300,000 together with their spouse.





For
transactions covered by these rules, broker-dealers must make a special
suitability determination for the purchase of such securities and must have
received the purchaser's written consent to the transaction prior to the
purchase. Additionally, for any transaction involving a penny stock, unless
exempt, the rules require the delivery, prior to the first transaction, of a
risk disclosure document relating to the penny stock market. A broker- dealer
also must disclose the commissions payable to both the broker-dealer and the
registered representative, and current quotations for the securities. Finally,
monthly statements must be sent disclosing recent price information for the
penny stocks held in the account and information on the limited market in penny
stocks. Consequently, these rules may restrict the ability of broker-dealers to
trade and/or maintain a market in the Company's Common stock and may affect the
ability of shareholders to sell their shares.





Holders





The
number of record holders of the Company's common stock as of the date of this
Report is approximately 45.





Dividends





The
Company has not declared any cash dividends with respect to its common stock and
does not intend to declare dividends in the foreseeable future. The future
dividend policy of the Company cannot be ascertained with any certainty, and
until the Company completes any acquisition, reorganization or merger, as to
which no assurance may be given, no such policy will be formulated. There are no
material restrictions limiting, or that are likely to limit, the Company's
ability to pay dividends on its common stock.





Sales of "Unregistered" and
"Restricted" Securities Over The Past Three Years.





In March
2005 the Company issued 250,000 shares of stock pursuant to the exercise of
outstanding employee stock options issued pursuant to Rule 701 of the Securities
Act of 1933. The purchase price was $0.10 per share or an aggregate of $25,000.
This increased the outstanding shares to 4,269,950.





Item 6.
Management's Discussion and Analysis or Plan of
Operation.





Plan of
Operation.





The
Company has not engaged in any material operations or had any revenues from
operations since inception. The Company's plan of operation for the next 12
months is to continue to seek the acquisition of assets, properties or
businesses that may benefit the Company and its stockholders. Management intends
to focus is efforts in Europe both because management is located there and
because management believes that the Company can locate superior acquisition
opportunities in Europe. Management anticipates that to achieve any such
acquisition, the Company will issue shares of its common stock as the sole
consideration for such acquisition.


10





During
the next 12 months, the Company's only foreseeable cash requirements will relate
to maintaining the Company in good standing or the payment of expenses
associated with reviewing or investigating any potential business venture, which
the Company expects to pay from its cash resources. As of December 31, 2007, it
had $307,4251 in cash or cash equivalents. Management believes that these funds
are sufficient to cover its cash needs for the next 12 months. If additional
funds are required during this period, such funds may be advanced by management
or stockholders as loans to the Company. Because the Company has not identified
any such venture as of the date of this Report, it is impossible to predict the
amount of any such loan. However, any such loan will be on terms no less
favorable to the Company than would be available from a commercial lender in an
arm's length transaction. As of the date of this Report, the Company is not
engaged in any negotiations with any person regarding any venture.





Results of
Operations.





Other
than restoring and maintaining its good corporate standing in the State of
Nevada, obtaining an audit of the Company’s financial statements, submitting the
Company’s common stock for quotation on the NASD OTC Bulleting Board, the filing
of a Form 10 Registration, the completion of a private placement and the seeking
of an appropriate acquisition candidate, merger partner, or business venture,
the Company has had no material business operations in the two most recent
calendar years.





Year ended December 31, 2007
compared to year ended December 31, 2006





Revenues,
Including Interest, for the year ended December 31, 2007 were $7,462 compared to
$7,389 for the year ended December 31, 2006, a negligable increase.





Expenses
for the year ended December 31, 2007 were $27,336 compared to $15,737 for the
year ended December 31, 2006. This represents a increase of $11,611 or 73.8% and
is attributable to a increase in travel and exploratory costs, together with
increased costs of complying with the SEC compliance requirements.





Net loss
for the year ended December 31, 2007 was $19,884 compared to a net loss of
$8,348 for the year ended December 31, 2006. This loss represents an increase of
$11,559 or138%. This loss is attributable to increased travel and exploratory
costs and increased costs for SEC compliance.





Liquidity.





The
Company’s primary need for capital has been to pay the ongoing administrative
expenses associated with being a reporting company such as legal, accounting and
EDGAR filing. The Company, although more aggressively seeking an acquisition or
merger partner and incurring travel and other expenses in relation thereto, does
not anticipate this changing in the next 12 months, unless a suitable
acquisition or merger candidate is located. However, because of the limited
amount available no assurance can be given that this will be the
case.




During
the fiscal years ended December 31, 2007 the Company has been able to pay its
expenses and costs through it cash on hand. As of December 31, 2007 had $307,425
in cash or cash equivalents compared to $328,691 at December 31, 2006, an
decrease of $21,266. This decrease is primarily attributed ongoing expenses
exceeding interest income


11





Item 7.
Financial Statements.





The
financial statements of the Company are included following the signature pages
to this form 10-KSB.





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





NONE





Item 8A. Controls and
Procedures





(A) Our Chief Executive Officer/Chief
Financial Officer, as of the date of the end of the period covered by this Form
10-KSB, conducted an evaluation of the effectiveness of the design and operation
of our disclosure controls and procedures, as required by Exchange Act Rule
13a-15. In making this assessment, our Chief Executive Officer/Chief Financial
Officerused the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) in Internal Control — Integrated
Framework.




Based on
that evaluation, our Chief Executive Officer/ Chief Financial Officer concluded
that our disclosure controls and procedures were effective to ensure that
information required to be disclosed by us in the reports that we file or submit
under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified by the SEC’s rules and forms. In addition, he has
concluded that these controls and procedures are also effective to ensure that
the information required to be disclosed in the reports that we file or submit
under the Exchange Act is accumulated and communicated to management, including
the Chief Executive Officer, to allow timely decisions regarding required
disclosure.


This
annual report does not include an attestation report of the company’s registered
public accounting firm regarding internal control over financial reporting.
Management’s report was not subject to attestation by the company’s registered
public accounting firm pursuant to temporary rules of the Securities and
Exchange Commission that permit the company to provide only management’s report
in this annual report.
 
 (B) Changes in Internal
Controls
 
 There
were no significant changes in our internal controls over financial reporting
that occurred during the quarter and year ended December 31, 2006 that have
materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.
 
 (C) Limitations on the Effectiveness of
Controls
 
 We
believe that a control system, no matter how well designed and operated, cannot
provide absolute assurance that the objectives of the control system are met,
and no evaluation of controls can provide absolute assurance that all control
issues and instances of fraud, if any, within a company have been detected.
However, we believe that our controls and procedures are designed to provide
reasonable assurance that the objectives of the controls and procedures are met
and the Chief Executive Officer/Chief Financial Officer has concluded that our
disclosure controls and procedures are effective at that reasonable assurance
level.


12




Item 8b. Other
Information





None





PART
III








Item 9. Directors, Executive
Officers, Promoters and Control Persons; Compliance With Section 16(a) of the
Exchange Act.





Identification of Directors
and Executive Officers





The
following table sets forth the names of all current directors and executive
officers of the Company. These persons will serve until the next annual meeting
of the stockholders or until their successors are elected or appointed and
qualified, or their prior resignation or termination.





NAME
            
            POSITION(S)
            
            DATE ELECTED OR
APPOINTEDClaudio
      Gianascio
            
            President,
      Secretary, Treasurer, Director
            
            09/01/99Alfredo
      M. Villa
            
            Director
            
            01/10/2000




Business
Experience
 
 Since
2005 Mr. Gianascio has been the owner and director of Green Park Corporation
LLP, a London based financial advisory firm. Formerly he was CEO and Chairman of
the Board of Givigest Fiduciaria S.A., a Swiss financial services company he
co-founded in 1990. Until 2002 he was also a board member of III Intermediazioni
Immobiliari Internazionali S.A., a real estate company; Until 2000 he was a
board member of SCF Societa di Consulenza Finanziaria S.A., a Swiss private
banking company and a board member of Zandano and Partners S.A., a Swiss
financial consulting company. Mr. Gianascio holds a Masters Degree in Economics
which he received from the University of Geneva, Switzerland and was a
Fiduciario Finanziario within the state of Ticino, Switzerland. Prior to
co-founding Givigest Fiduciaria S.A., Mr. Gianascio was employed within the
banking and financial industries by Union Bank of Switzerland, Manufacturers
Hanover (Suisse) S.A., and Chemical Bank (Suisse) S.A..
 
 Presently,
Mr. Villa is an owner, officer and director of RCF Research, Consulting &
Forcasting SA, A swiss financial company based in Lugano, Switzerland. He is
also a board member and partner of Gabrielli & Associati in Milan, Italy, a
financial consulting company. In 1990 he co-founded Givigest Fiduciaria SA, a
Swiss financial services company and in 1994 he co-founded SCF SA, a financial
consulting firm offering asset management services, which was sold in 2001. He
is a ‘Chartered Technical Analyst’ (CTA) qualified by US Market Technicians
Association in New York,, as well as an authorised Financial & Commercial
Fiduciary in the Swiss Canton of Ticino. Mr. Villa graduated in Economics at
University of Geneva, Switzerland. Mr. Villa’s career started at Banca della
Svizzera Italiana as currency option dealer, and then joined Soginvest Banca
(CIAL Group) Mr. Villa is also Chairman of “Fondazione Settembre Onlus” and VP
of “Homes for Hope” Charities.





13




Significant
Employees.





The
Company has no employees who are not executive officers, but who are expected to
make a significant contribution to the Company's business.





Family
Relationships.





There are
no family relationships between any current directors or executive officers of
the Company, either by blood or by marriage.





Audit
Committee





The
Company has no audit committee financial expert, as defined under Section
228.401, serving on its audit committee because it has no audit committee and is
not required to have an audit committee because it is not a listed security as
defined in Section 240.10A-3.





Code of
Ethics





The
Company has adopted a code of ethics that applies to the Company’s principal
executive officer, principal financial officer, principal accounting officer or
controller which was attached hereto as Exhibit 99.1 to the 2003 10KSB of the
Company.




Involvement in Certain Legal
Proceedings.
  Except as
stated above, during the past five years, no director, person nominated to
become a director, executive officer, promoter or control person of the
Company:
 
 (1) was a
general partner or executive officer of any business against which any
bankruptcy petition was filed, either at the time of the bankruptcy or two years
prior to that time;
 
 (2) was
convicted in a criminal proceeding or named subject to a pending criminal
proceeding (excluding traffic violations and other minor offenses);
 
 (3) was
subject to any order, judgment or decree, not subsequently reversed, suspended
or vacated, of any court of competent jurisdiction, permanently or temporarily
enjoining, barring, suspending or otherwise limiting his involvement in any type
of business, securities or banking activities; or
 
 (4) was
found by a court of competent jurisdiction (in a civil action), the Securities
and Exchange Commission or the Commodity Futures Trading Commission to have
violated a federal or state securities or commodities law, and the judgment has
not been reversed, suspended or vacated.
 
 Compliance with Section
16(a) of the Exchange Act
  Since the
Company ceased operations in 1990, the Company knows of no person, who at any
time during the subsequent fiscal years, was a director, officer, beneficial
owner of more than ten percent of any class of equity securities of the
registrant registered pursuant to Section 12 ("Reporting Person"), that failed
to file on a timely basis any reports required to be furnished pursuant to
Section 16 (a). Based upon a review of Forms 3 and 4 furnished to the registrant
under Rule 16a-3(d) during its most recent fiscal year, other than disclosed
below, the registrant knows of no Reporting Person that failed to file the
required reports during the most recent fiscal year or prior years.


14




The
following table sets forth as of December 31, 2007, the name and position of
each Reporting Person that failed to file on a timely basis any reports required
pursuant to Section 16(a) during the most recent fiscal year or prior
years.





Name
            Position
            Reports  FiledNONE




Item 10.
Executive Compensation.





The
following table sets forth the aggregate compensation paid by the Company for
services rendered during the periods indicated





SUMMARY
COMPENSATION TABLE





Annual Compensation
            
            Awards
            
            Payouts(a)
            
            (b)
            
            (c)
            
            (d)
            
            (e)
            
            (f)
            
            (g)
            
            (h)
            
            (I)Name
      and Principal Position
            
            Year
      or Period Ended
            
            Salary
      ($)
            
            Bonus
      ($)
            
            Other
      Annual Compensation
            
            Restricted
      Stock
            
            Securities
      Underlying Options(#)
            
            LTIP
      Payouts
            
            All
      Other CompensationClaudio
      Gianascio,
            
            12/31/2007
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0Pres,
      Sec,
            
            12/31/2006
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0Treas,
      Dir
            
            12/31/2005
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0
            
            0**
      Claudio Gianascio became an officer and director of the Company on
      September 1, 1999.





Option/SAR Grants in Last
Fiscal Year


Individual
Grants





Name
            
            No.
      Of Sec. Underlying Options/SARs Granted (#)
            
            %
      of Total Options/SARs Granted to Employees In FiscalYear
            
            Exercise
      or Base Price($/Sh)
            
            ExpirationDateNONE





15




Compensation of
Directors.





There are
no standard arrangements pursuant to which the Company's directors are
compensated for any services provided as director. No additional amounts are
payable to the Company's directors for committee participation or special
assignments.




There are
no arrangements pursuant to which any of the Company's directors was compensated
during the Company's last completed calendar year for any service provided as
director.




Employment Contracts and
Termination of Employment and Change-in-Control
Arrangements.





There are
no employment contracts, compensatory plans or arrangements, including payments
to be received from the Company, with respect to any director or executive
officer of the Company which would in any way result in payments to any such
person because of his or her resignation, retirement or other termination of
employment with the Company or any subsidiary, any change in control of the
Company, or a change in the person's responsibilities following a change in
control of the Company.




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





Security Ownership of
Certain Beneficial Owners.





The
following table sets forth the shareholdings of those persons who beneficially
own more than five percent of the Company's common stock as of the date of this
Report, with the computations being based upon 4,269,950 shares of common stock
being outstanding on March 15, 2007, unless otherwise noted.





Name and Address
            
            Number
      of SharesBeneficially
      Owned
            
            Percentageof Class (1)Claudio
      Gianascio
            
            825,000
            
            19.32%La
      Pleta de Sant PereEl
      Tartar, Canillo, AndorraComprehensive
      Ventures Inc. Ltd.
            
            400,000
            
            9.36%Clinch’s
      House Lord StreetDouglas,
      Isle of ManBritish
      Isles IM99 1RZProgressive
      Emerging Ventures Ltd.
            
            400,000
            
            9.36%Suite
      743, EuroportP.O.
      Box 629GibraltarCapital
      One International SA
            
            350,000
            
            8.19%Torre
      Banco GermanicoP.O.
      Box 850048Calle
      50 Y 55 Este, 8th
      FloorPanama,
      Republic of PanamaPrestige
      Underwriters NV
            
            350,000
            
            8.19%Middenstraat
      1A,P.O.
      Box 97Willemstad,
      CuracaoNetherland
      AntillesOTC
      Opportunities Limited
            
            350,000
            
            8.19%The
      Lake Building, First FloorP.O.
      Box 915Roadtown,
      BVI(1)  Percentage
      is calculated upon the 4,269,950 shares
  outstanding.




16


Security Ownership of
Management.





The
following table sets forth the shareholdings of the Company's directors and
executive officers as of the date of this Report:





Name and Address
            
            Number
      of Shares Beneficially
      Owned
            
            Percentage
      of Class(1)Claudio
      Gianascio
            
            825,000
            
            19.32%La
      Pleta de Sant PereEl
      Tartar, Canillo, AndorraAlfredo
      M. Villa
            
            125,000
            
            2.93%Chelsea
      Court No. 2262Triq
      1-1M6HAZEL, SwiequiMaltaAll
      directors and executive officers as a group (2 people)
            
            950,000
            
            22.25%(1)
      Percentage is calculated upon the 4,269,950 shares
      outstanding.











Changes in
Control.





There are
no present arrangements or pledges of the Company's securities which may result
in a change in control of the Company.





17


Item 12.
Certain Relationships and Related Transactions.





Transactions with Management
and Others.





For a
description of transactions between members of management, five percent
stockholders, "affiliates", promoters and finders, see captions "Sales of
'Unregistered' and 'Restricted' Securities Over the Past Three Years" under Item
5.





Item 13.
Exhibits and Reports on Form 8-K.





Reports on Form
8-K





NONE





Exhibits





ExhibitNumber
            
            Description*3.1
      *
            
            Initial
      Articles of Incorporation,3.2
      *
            
            Articles
      of Amendment to the Articles of Incorporation,3.3
      *
            
            By-Laws10.1
      **
            
            2000
      non-Qualified Key Man Stock Option Plan10.2
      **
            
            Form
      of Option Certificate delivered in connection with the grant of individual
      options.31.1
            
            Rule
      13a-14(a)/15d-14(a) Certification.32.1
            
            Certification
      by the Chief Executive Officer/Acting Chief Financial Officer Relating to
      a Periodic Report Containing Financial Statements.***99.1****
            
            Code
      of Ethics





*** The
Exhibit attached to this Form 10-Q shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or
otherwise subject to liability under that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as expressly set forth by specific
reference in such filing.





DOCUMENTS
INCORPORATED BY REFERENCE





*
Documents previously filed as exhibits to Form 10 filed on November 18, 1999 and
incorporated herein by this reference.


**
Documents previously filed as exhibits to Form 10KSB annual report for year
ending 12/31/99.


****
Documents previously filed as exhibit to Form 10KSB annual report for year
ending 12/31/2003.




18


Item 14. Principal
Accountant Fees and Services





Audit
Fee





The
aggregate fees billed for each of the last two fiscal years for professional
services rendered by the principal account for the audit of Oranco’s annual
financial statement and review of financial statements included in Oranco’s
10-QSB reports and services normally provided by the accountant in connection
with statutory and regulatory filings or engagements were $4,070 for fiscal year
ended 2006 and $4,055 for fiscal year ended 2007.





Audit-Related
Fees





The
aggregate fees billed in each of the last two fiscal years for assurance and
related services by the principal accountant that are reasonably related to the
performance of the audit or review of Oranco’s financial statements that are not
reported above were $ -0- for fiscal years ended 2005 and 2006.





Tax Fees





The
aggregate fees billed in each of the last two fiscal years for professional
services rendered by the principal accountant for tax compliance, tax advise,
and tax planning were $150.00 for fiscal year ended 2006 and $150.00 for fiscal
year ended 2007.





All Other
Fees





The
aggregate fees billed in each of the last two fiscal years for products and
services provided by the principal accountant, other than the services reported
above were $ -0- for fiscal years ended 2005 and 2006.




We do not
have an audit committee currently serving and as a result our board of directors
performs the duties of an audit committee. Our board of directors will evaluate
and approve in advance, the scope and cost of the engagement of an auditor
before the auditor renders audit and non-audit services. We do not rely on
pre-approval policies and procedures.


19




SIGNATURES





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





ORANCO,
      INC.Date:
      March 24, 2008
            By: S/ Claudio
      GianascioClaudio
      GianascioPresident,
      Secretary, Treasurer and Director





Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, this
Report has been signed below by the following persons on behalf of the Company
and in the capacities and on the dates indicated:





ORANCO,
      INC.Date:
      March 24, 2008
            S/ Claudio
      GiansacioClaudio
      GianascioPresident,
      Secretary,Treasurer
      and DirectorDate:
      March 24, 2008
            S/ Alfredo M.
      VillaAlfredo
      M. VillaDirector





20





MADSEN &
      ASSOCIATES, CPA’s INC.
            684
      East Vine St, # 3Certified
      Public Accountants and Business Consultants
            Murray,
      Utah 84107Telephone
      801-268-2632Fax
      801-262-3978

















Board of
Directors


Oranco,
Inc.


Las
Vegas, Nevada








REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM





We have
audited the accompanying balance sheet of Oranco, Inc. (development stage
company) at December 31, 2007 and the statement of operations, stockholders'
equity, and cash flows for the years ended December 31, 2007, and 2006 and the
period June 16, 1977 (date of inception) to December 31, 2007. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these 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. 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 financial statements referred to above present fairly, in all
material respects, the financial position of Oranco, Inc. at December 31, 2007
and the results of operations, and cash flows for the years ended December 31,
2007 and 2006 and the period June 16, 1977 (date of inception) to December 31,
2007, in conformity with accounting principles generally accepted in the United
States of America.











March
      24, 2008Salt
      Lake City, Utah
            /s/
      Madsen & Associates, CPA’s Inc.











21


ORANCO,  INC.


(Development
Stage Company)


BALANCE
SHEET


December
31, 2007









ASSETSCURRENT
      ASSETSCash
            
            $
            307,425Total
      Current Assets
            
            $
            307,425LIABILITIES
      AND STOCKHOLDERS' EQUITYCURRENT
      LIABILITIESAccounts
      payable
            
            $
            2,935Total
      Current Liabilities
            
            
            2,935STOCKHOLDERS'
      EQUITYCommon
      stock100,000,000
      shares authorized, at $0.001 par value; 4,269,950 shares issued and
      outstanding
            
            
            4,270Capital
      in excess of par value
            
            
            349,898Deficit
      accumulated during the development stage
            
            
            (49,678
            )Total
      Stockholders' Equity
            
            
            304,490$
            307,425











The
accompanying notes are an integral part of these financial
statements





22





ORANCO,  INC.


(
Development Stage Company)


STATEMENTS
OF OPERATIONS


For
the Years  Ended December 31, 2007,  and 2006 and
the


Period
June 16, 1977 (Date of Inception) to December 31, 2007









Dec
      31, 2007
            
            
            Dec
      31, 2006
            
            
            Jun
      16, 1977 to Dec 31,
      2007REVENUES
            
            $
            -
            
            
            $
            -
            
            
            $
            -EXPENSESAdministrative
            
            
            27,346
            
            
            
            15,737
            
            
            
            190,564Valuation
      adjustment- available-for-sale securities
            
            
            -
            
            
            
            -
            
            
            
            30,40127,346
            
            
            
            15,737
            
            
            
            220,965NET LOSS -from
      operations
            
            
            (27,346
            )
            
            
            (15,737
            )
            
            
            (220,965
            )INTEREST
      AND CONTRACT INCOME
            
            
            7,462
            
            
            
            7,389
            
            
            
            171,287NET
      LOSS
            
            $
            (19,884
            )
            
            $
            (8,348
            )
            
            $
            (49,678
            )NET
      LOSS PER COMMON SHAREBasic
      and diluted
            
            $
            -
            
            
            $
            -AVERAGE
      OUTSTANDING SHARESBasic
            
            
            4,269,950
            
            
            
            4,269,950











The
accompanying notes are an integral part of these financial
statements





23


ORANCO,  INC.


(
Development Stage Company)


STATEMENT
OF CHANGES IN STOCKHOLDERS' EQUITY


Period  June
16, 1977 (date of inception) to December 31, 2007










Capital in ExcessCommon Stock
            
            
            of
      Par
            
            
            AccumulatedShares
            
            
            Amount
            
            
            Value
            
            
            DeficitBalance June 16, 1977(date of inception)
            
            
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -Issuance
      of common stock for cash at $.034 - July  9,
      1982
            
            
            231,300
            
            
            
            231
            
            
            
            7,594
            
            
            
            -Issuance
      of common stock for cash at $.079 - November 12, 1982
            
            
            143,650
            
            
            
            144
            
            
            
            11,199
            
            
            
            -Issuance
      of common stock for cash at $.025 December 12, 1983
            
            
            40,000
            
            
            
            40
            
            
            
            960
            
            
            
            -Net
      operating loss for the year ended December  31,
    1983
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (20,168
            )Issuance
      of common stock for cash at $.019 June 6, 1984
            
            
            40,000
            
            
            
            40
            
            
            
            710
            
            
            
            -Net
      operating loss for the year ended December 31, 1984
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (750
            )Issuance
      of common stock for cash at $.019 January 15, 1985
            
            
            40,000
            
            
            
            40
            
            
            
            710
            
            
            
            -Net
      operating loss for the year ended December 31, 1985
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (750
            )Issuance
      of common stock for cash at $.05 - May 16, 1997
            
            
            200,000
            
            
            
            200
            
            
            
            9,800
            
            
            
            -Net
      operating loss for the year ended December 31, 1997
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (2,290
            )Net
      operating loss for the year ended December 31, 1998
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (7,710
            )Issuance
      of common stock for cash at $.05 - November 12, 1999
            
            
            700,000
            
            
            
            700
            
            
            
            34,300
            
            
            
            -Net
      operating loss for the year ended December 31, 1999
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (7,671
            )Issuance
      of common stock for cash at $.10 - June and July 2000
            
            
            2,500,000
            
            
            
            2,500
            
            
            
            247,500
            
            
            
            -Issuance
      of common stock for cash at $.10 - July 5, 2000
            
            
            125,000
            
            
            
            125
            
            
            
            12,375
            
            
            
            -Net
      operating loss for the year ended December 31, 2000
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (7,497
            )









The
accompanying notes are an integral part of these financial
statements





24


ORANCO,  INC.


(Development
Stage Company)


STATEMENT OF CHANGES IN STOCKHOLDERS'
EQUITY -continued


Period  June
16, 1977 (date of inception) to December 31, 2007




Capital in ExcessCommon Stock
            
            
            of
      Par
            
            
            AccumulatedShares
            
            
            Amount
            
            
            Value
            
            
            DeficitNet
      operating profit for the yearended December 31,
      2001
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            11,247Net
      operating profit for the year ended December 31, 2002
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            3,910Net
      operating loss for the year ended December 31, 2003
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (15,238
            )Net
      operating loss for the year ended December 31, 2004
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (7,927
            )Issuance
      of common stock for cashat $.10 - March
      2005
            
            
            250,000
            
            
            
            250
            
            
            
            24,750
            
            
            
            -Net
      operating profit for the year ended December 31, 2005
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            33,398Net
      operating loss for the yearended December 31,
      2006
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (8,348
            )Balance
      December 31, 2006
            
            
            4,269,950
            
            
            
            4,270
            
            
            
            349,898
            
            
            
            (29,794
            )Net
      operating loss for the yearended December 31,
      2007
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (19,884
            )Balance
      December 31, 2007
            
            
            4,269,950
            
            
            $
            4,270
            
            
            $
            349,898
            
            
            $
            (49,678
            )











The
accompanying notes are an integral part of these financial
statements





25


ORANCO,
INC.


(Development
Stage Company)


STATEMENT
OF CASH FLOWS


For
the Years Ended December 31, 2007, and 2006 and the


Period
June 16, 1977 (Date  of  Inception) to December 31,
2007










Jun
      16, 1977Dec
      31,
            
            
            Dec
      31,
            
            
            to
      Dec 31,2007
            
            
            2006
            
            
            2007CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      profit (loss)
            
            $
            (19,884
            )
            
            $
            (8,348
            )
            
            $
            (49,678
            )Adjustments
      to reconcile net loss to net cash provided by operating
      activitiesChanges
      in accounts payable
            
            
            (1,382
            )
            
            
            1,945
            
            
            
            2,935Net
      Change in Cash from Operations
            
            
            (21,266
            )
            
            
            (6,403
            )
            
            
            (46,743
            )CASH
      FLOWS FROM INVESTING ACTIVITIESNet
      changes in long term note receivable
            
            
            -
            
            
            
            -
            
            
            
            -CASH
      FLOWS FROM FINANCING ACTIVITIESProceeds
      from issuance of common stock
            
            
            -
            
            
            
            -
            
            
            
            354,168Net
      Change in Cash
            
            
            (21,266
            )
            
            
            (6,403
            )
            
            
            307,425Cash
      at Beginning of Period
            
            
            328,691
            
            
            
            335,094
            
            
            
            -Cash
      at End of Period
            
            $
            307,425
            
            
            $
            328,691
            
            
            $
            307,425











The
accompanying notes are an integral part of these financial
statements





26


ORANCO,  INC.


(Development
Stage Company)


NOTES
TO FINANCIAL STATEMENTS


December
31, 2007










1.  ORGANIZATION





The
Company was incorporated under the laws of the state of Nevada on June 16, 1977
with authorized common stock of 100,000 shares at a par value of $.25. On June
10, 1997 the authorized common stock was increased to 100,000,000 shares with a
par value of $.001.





The
Company has been in the business of the development of mineral deposits. During
1983 all activities were abandoned and the Company has remained inactive since
that time.





The
Company is in the development stage.





2.  SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES





Accounting
Methods





The
Company recognizes income and expenses based on the accrual method of
accounting.





Dividend
Policy





The
Company has not yet adopted a policy regarding payment of
dividends.





Income
Taxes





The
Company utilizes the liability method of accounting for income taxes. Under the
liability method deferred tax assets and liabilities are determined based on the
differences between financial reporting and the tax bases of the assets and
liabilities and are measured using the enacted tax rates and laws that will be
in effect, when the differences are expected to reverse. An allowance against
deferred tax assets is recorded, when it is more likely than not, that such tax
benefits will not be realized.





On December 31, 2007 the
Company had a net operating loss available for carryforward of $ 49,678. The tax
benefit of approximately $ 15,000 from the carryforwardhas been fully
offset by a valuation reserve because the use of the future tax benefit is
doubtful since the Company has not started full operations. The net operating
loss will expire starting in 2018 through 2028.





Financial and Concentrations
Risk





The
Company does not have any concentration or related financial credit risk except
that the Company maintains cash in banks over the insured amounts of $100,000,
however they are considered to be in banks of high quality.





27


ORANCO,  INC.


(
Development Stage Company)


NOTES
TO FINANCIAL STATEMENTS (Continued)


December
31, 2007









2.  SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES(continued)





Basic and Diluted Net Income
(Loss) Per Share





Basic net
income (loss) per share amounts are computed based on the weighted average
number of shares actually outstanding. Diluted net income (loss) per share
amounts are computed using the weighted average number of common shares and
common equivalent shares outstanding as if shares had been issued on the
exercise of any common share rights unless the exercise becomes antidilutive and
then only the basic per share amounts are shown in the report.





Statement of Cash
Flows





For the
purposes of the statement of cash flows, the Company considers all highly liquid
investments with a maturity of three months or less to be cash
equivalents.





Revenue
Recognition





Revenue
will be recognized on the sale and delivery of a product or the completion of a
service provided.





Advertising and Market
Development





The
company will expense advertising and market development costs as
incurred.





Estimates and
Assumptions





Management
uses estimates and assumptions in preparing financial statements in accordance
with accounting principles generally accepted in the United States of America.
Those estimates and assumptions affect the reported amounts of the assets and
liabilities, the disclosure of contingent assets and liabilities, and the
reported revenues and expenses. Actual results could vary from the estimates
that were assumed in preparing these financial statements.





Financial
Instruments





The
carrying amounts of financial instruments are considered by management to be
their estimated fair values due to their short term maturities.





28


ORANCO,  INC.


(
Development Stage Company)


NOTES
TO FINANCIAL STATEMENTS (Continued)


December
31, 2007









Recent Accounting
Pronouncements





The
Company does not expect that the adoption of other recent accounting
pronouncements will


have a
material impact on its financial statements.





3. 
SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES





Officers-directors
have acquired 22% of the outstanding common stock.
























29


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