**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**


_____________




**FORM
      10-QSB**


_____________




(Mark
      One)





x
            **Quarterly
                Report Pursuant to Section 13 or 15(d) of the Securities Exchange
                Act of
                1934.**




**For
      the quarter ended** **September** **30, 2006**





**o**
            **Transition
                Report Pursuant to Section 13 or 15(d) of the Securities Exchange
                Act of
                1934.**




For
      the
      transition period from ________ to __________




Commission
      File Number: 000-30790




**ARTCRAFT
      V, INC.**


(Exact
      name of small business issuer as specified in its charter)




**Delaware**(State
                or other jurisdiction of incorporation or organization)
            (IRS
                Employee Identification No.)




**Baimang
                Checking Station 1****st****Building South Mountain Xili Town, Shenzhen,
                China**(Address
                of principal executive offices)




**011-775
                27653497**(Issuer’s
                telephone number)




(Former
      name, former address and former fiscal year, if changed since last
      report)




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




Yes
            x
            Noo






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




Yes
            o
            Nox







State
      the
      number of shares outstanding of each of the issuer’s classes of common equity,
      as of November
      13 ,
      2006:
      shares of common stock :
      10,250,000



















**ARTCRAFT
      V, INC.**




**FORM
      10-QSB**




**TABLE
      OF CONTENTS**






**PART
                I - FINANCIAL INFORMATION**
            1Item
                1. Financial Information
            1Item
                2. Management’s Discussion and Analysis or Plan of
                Operation
            1Item
                3. Controls and Procedures
            2**PART
                II - OTHER INFORMATION**
            2Item
                1. Legal Proceedings
            2Item
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            2Item
                3. Defaults Upon Senior Securities
            2Item
                4. Submission of Matters to a Vote of Security Holders
            2Item
                5. Other Information
            2Item
                6. Exhibits and Reports on Form 8-K
            2**SIGNATURES**
            4














i









**PART
      I—FINANCIAL INFORMATION**








**Item
      1.**   **Financial
      Statements.**




BASIS
      OF
      PRESENTATION




The
        accompanying reviewed financial statements are presented in accordance with
        generally accepted accounting principles for interim financial information
        and
        the instructions to Form 10-QSB and item 310 under subpart A of Regulation
        S-B.
        Accordingly, they do not include all of the information and footnotes required
        by generally accepted accounting principles for complete financial statements.
        In the opinion of management, all adjustments (consisting only of normal
        occurring accruals) considered necessary in order to make the financial
        statements not misleading, have been included. Operating results for the
        three
        and nine months ended September 30, 2006 are not necessarily indicative of
        results that may be expected for the year ending December 31, 2006. The
        financial statements are presented on the accrual basis.















**ARTCRAFT
        V, INC. AND SUBSIDIARIES**
  
 **CONDENSED
        CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**
 
 **SEPTEMBER
        30, 2006**
 
 
 
 
  
  
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
  **CONDENSED
        CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**
 **SEPTEMBER
        30, 2006**
 
 **TABLE
        OF CONTENTS**
 
 
 Unaudited
                    Condensed Consolidated Balance Sheet
                2Unaudited
                    Condensed Consolidated Statements of Operations
                3Unaudited
                    Condensed Consolidated Statements of Cash Flow
                4Notes
                    to unaudited Condensed Consolidated Financial Statements
                5
 
 
 
  **ARTCRAFT
                    V, INC. AND SUBSIDIARIES****CONSOLIDATED
                    BALANCE SHEET****SEPTEMBER
                    30, 2006****(Unaudited)****ASSETS****Current
                    Assets**Cash
                    and cash equivalents
                
                $
                10,987Other
                    receivables
                
                
                253Note
                    receivable
                
                
                83,591Total
                    Current Assets
                
                
                94,831**Property
                    & equipment, net**
                
                
                22,128**Intangible
                    assets, net**
                
                
                9,191$
                126,150**LIABILITIES
                    AND STOCKHOLDERS' DEFICIT****Current
                    Liabilities**Accounts
                    payable and accrued expenses
                
                $
                13,130Loan
                    payable to related party
                
                
                118,924Deferred
                    revenue
                
                
                1,899Total
                    Current Liabilities
                
                
                133,953Minority
                    Interest
                
                
                33,371**Stockholders'
                    Equity**Common
                    stock, $.001 par value, 100,000,000shares
                    authorized, 10,100,000 issued and outstanding
                
                
                10,100Shares
                    to be issued, 150,000 shares of common stock
                
                
                60,000Additional
                    paid in capital
                
                
                42,700Subscription
                    receivable
                
                
                (110,000
                )Other
                    accumulated comprehensive gain
                
                
                2,365Accumulated
                    deficit
                
                
                (46,339
                )Total
                    Stockholders' Deficit
                
                
                (41,174
                )$
                126,150









F-2




**ARTCRAFT
                  V, INC. AND SUBSIDIARIES****CONSOLIDATED
                  STATEMENTS OF OPERATIONS****(UNAUDITED)****Three
                  Month Periods Ended**
              
              **Nine
                  Month Periods Ended****September
                  30, 2006**
              
              **September
                  30, 2005**
              
              **September
                  30, 2006**
              
              **September
                  30, 2005****Revenue,
                  net**
              
              $
              5,198
              
              $
              5,345
              
              
              16,420
              
              $
              14,991**Operating
                  Expenses:**General
                  and administrative expenses
              
              
              16,806
              
              
              6,242
              
              
              66,543
              
              
              16,672**Loss
                  from operations**
              
              
              (11,608
              )
              
              (897
              )
              
              (50,123
              )
              
              (1,681
              )Other
                  (Income) ExpenseInterest
                  income
              
              
              (1,097
              )
              
              -
              
              
              (3,350
              )
              
              (38
              )Other
                  income
              
              
              -
              
              
              -
              
              
              (525
              )
              
              (116
              )Interest
                  expense
              
              
              50
              
              
              -
              
              
              123
              
              
              -Total
                  Other Expense
              
              
              (1,047
              )
              
              -
              
              
              (3,752
              )
              
              (154
              )**Net
                  loss before minority interest**
              
              
              (10,561
              )
              
              (897
              )
              
              (46,371
              )
              
              (1,527
              )Minority
                  interest
              
              
              825
              
              
              258
              
              
              2,689
              
              
              458**Net
                  loss**
              
              
              (9,736
              )
              
              (639
              )
              
              (43,682
              )
              
              (1,069
              )Other
                  comprehensive incomeForeign
                  currency translation
              
              
              1,269
              
              
              3,838
              
              
              2,403
              
              
              3,838**Comprehensive
                  Income**
              
              $
              (8,467
              )
              $
              3,199
              
              
              (41,279
              )
              $
              2,769**Net
                  loss per share:**Basic
                  & diluted
              
              $
              (0.001
              )
              $
              0.000
              
              
              (0.004
              )
              $
              0.000**Weighted
                  average number of shares outstanding:**Basic
                  & diluted
              
              
              10,100,000
              
              
              10,000,000
              
              
              10,100,000
              
              
              10,000,000Weighted
                  average number of shares for dilutive securities has not been taken
                  since
                  the effect of dilutive securities is anti-dilutive
 
    F-3




**ARTCRAFT
                  V, INC. AND SUBSIDIARIES****CONSOLIDATED
                  STATEMENTS OF CASH FLOWS****FOR
                  THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2006 AND
                  2005****(UNAUDITED)****2006**
              
              **2005****CASH
                  FLOWS FROM OPERATING ACTIVITIES**Net
                  Loss
              
              $
              (43,682
              )
              $
              (1,069
              )Adjustments
                  to
                  reconcile net loss to net cashprovided
                  by
                  (used in) operating activities:Depreciation
                  & amortization
              
              
              6,293
              
              
              1,075Minority
                  interest
              
              
              (2,689
              )
              
              (458
              )(Increase)
                  /
                  decrease in assets:Prepaid
                  expense
              
              
              -
              
              
              109Increase/
                  (decrease) in current liabilities:Accounts
                  payable and accrued expenses
              
              
              8,104
              
              
              964Deferred
                  revenue
              
              
              (208
              )
              
              160Total
                  Adjustments
              
              
              11,500
              
              
              1,850**Net
                  cash provided by (used in) operations**
              
              
              (32,182
              )
              
              781**CASH
                  FLOWS FROM INVESTING ACTIVITIES**Purchase
                  of
                  intangible assets
              
              
              -
              
              
              (11,190
              )Purchase
                  of
                  property & equipment
              
              
              -
              
              
              (10,610
              )**Net
                  cash used in investing activities**
              
              
              -
              
              
              (21,800
              )**CASH
                  FLOWS FROM FINANCING ACTIVITIES**Note
                  receivables
              
              
              (9,836
              )
              
              (90,113
              )Loan
                  from related party
              
              
              34,924
              
              
              -**Net
                  cash provided by (used in) financing activities**
              
              
              25,088
              
              
              (90,113
              )Effect
                  of exchange rate changes on cash and cash equivalents
              
              
              462
              
              
              828**Net
                  increase/(decrease) in cash and cash equivalents**
              
              
              (6,632
              )
              
              (110,304
              )**Cash
                  and cash equivalents, beginning balance**
              
              
              17,619
              
              
              119,446**Cash
                  and cash equivalents, ending balance**
              
              $
              10,987
              
              $
              9,142**SUPPLEMENTAL
                  DISCLOSURES:**Cash
                  paid during the year for:Income
                  tax payments
              
              $
              -
              
              $
              -Interest
                  payments
              
              $
              123
              
              $
              -










F-4




**ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 **Note
        A -** **ORGANIZATION**
  Artcraft
        V, Inc. was incorporated under the laws of the State of Delaware on June
        7,
        2004. On November 7, 2005, the Company entered into an Exchange Agreement
        with
        Top Interest International Limited (“Top Interest”). Top Interest owns 70%
        equity interest of Shenzhen Xin Kai Yuen Info Consult Co., Ltd. (“188.com”)
        which operates 188info.com, a professional information searching platform
        that
        is engaged in the business of providing information search engine, online
        web
        application and image designing, digital network service, online market
        research, online promotion and advertising services, and query searches for
        both
        individuals and businesses. Top Interest was incorporated under the laws
        of the
        British Virgin Islands. 188.com was legally established under the laws of
        the
        People’s Republic of China. When used in these notes, the terms “Company”, “we”,
“our” or “us” mean Artcraft V, Inc. and its subsidiaries.
  Pursuant
        to the Stock Purchase and Share Exchange Agreement, the Company purchased
        all of
        the issued and outstanding shares of Top Interest from the shareholders for
        issuance of a total of 10,000,000 shares of the Company’s common stock, or
        approximately 99% of the total issued and outstanding shares. This transaction
        closed on November 7, 2005 and has been accounted for as a reverse
        acquisition.
  **Note
        B -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES**
  Unaudited
        Interim Financial Information
 The
        accompanying unaudited consolidated financial statements have been prepared
        by
        Artcraft V, Inc., pursuant to the rules and regulations of the Securities
        and
        Exchange Commission (the “SEC”) Form 10-QSB and Item 310 of Regulation S-B, and
        generally accepted accounting principles for interim financial reporting.
        The
        information furnished herein reflects all adjustments (consisting of normal
        recurring accruals and adjustments) which are, in the opinion of management,
        necessary to fairly present the operating results for the respective periods.
        Certain information and footnote disclosures normally present in annual
        consolidated financial statements prepared in accordance with accounting
        principles generally accepted in the United States of America have been omitted
        pursuant to such rules and regulations. These consolidated financial statements
        should be read in conjunction with the audited consolidated financial statements
        and footnotes included in the Company’s Annual Report on Form 10-KSB. The
        results of the three months and nine months ended September 30, 2006 are
        not
        necessarily indicative of the results to be expected for the full year ending
        December 31, 2006.
  Basis
        of Consolidation
 The
        consolidated financial statements include the accounts of Artcraft V, Inc.
        and
        its wholly owned subsidiary Top Interest International and majority owned
        subsidiary Shenzhen Xin Kai Yuen Info Consult Co., Ltd., collectively referred
        to within as the Company. All material intercompany accounts, transactions
        and
        profits have been eliminated in consolidation.
  Revenue
        Recognition
 The
        Company’s revenue recognition policies are in compliance with Staff accounting
        bulletin (SAB) 104. Sales revenue is recognized at the date of shipment to
        customers when a formal arrangement exists, the price is fixed or determinable,
        the delivery is completed, no other significant obligations of the Company
        exist
        and collectibility is reasonably assured. Payments received before all of
        the
        relevant criteria for revenue recognition are satisfied are recorded as unearned
        revenue.
 
 
 F-5
  **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        B -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED** **)**
 
 Risks
        and Uncertainties
 The
        Company is subject to substantial risks from, among other things, intense
        competition associated with the industry in general, other risks associated
        with
        financing, liquidity requirements, rapidly changing customer requirements,
        limited operating history, foreign currency exchange rates and the volatility
        of
        public markets.
  Contingencies
 Certain
        conditions may exist as of the date the financial statements are issued,
        which
        may result in a loss to the Company but which will only be resolved when
        one or
        more future events occur or fail to occur. The Company’s management and legal
        counsel assess such contingent liabilities, and such assessment inherently
        involves an exercise of judgment. In assessing loss contingencies related
        to
        legal proceedings that are pending against the Company or unasserted claims
        that
        may result in such proceedings, the Company’s legal counsel evaluates the
        perceived merits of any legal proceedings or unasserted claims as well as
        the
        perceived merits of the amount of relief sought or expected to be
        sought.
  If
        the
        assessment of a contingency indicates that it is probable that a material
        loss
        has been incurred and the amount of the liability can be estimated, then
        the
        estimated liability would be accrued in the Company’s financial statements. If
        the assessment indicates that a potential material loss contingency is not
        probable but is reasonably possible, or is probable but cannot be estimated,
        then the nature of the contingent liability, together with an estimate of
        the
        range of possible loss if determinable and material would be disclosed.
  Loss
        contingencies considered to be remote by management are generally not disclosed
        unless they involve guarantees, in which case the guarantee would be
        disclosed.
  Use
        of
        Estimates
 The
        preparation of financial statements in conformity with generally accepted
        accounting principles requires management to make estimates and assumptions
        that
        affect the reported amounts of assets and liabilities and disclosure of
        contingent assets and liabilities at the date of the financial statements
        and
        the reported amounts of revenues and expenses during the reporting period.
        Actual results could differ from those estimates.
  Exchange
        Gain (Loss)
 During
        the nine month periods ended September 30, 2006, the transactions of 188.com
        were denominated in foreign currency and were recorded in Chinese Yuan Renminbi
        (CNY) at the rates of exchange in effect when the transactions occur. Exchange
        gains and losses are recognized for the different foreign exchange rates
        applied
        when the foreign currency assets and liabilities are settled.
 
 
 
 F-6
  
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        B -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED** **)**
 
 Translation
        Adjustment
 As
        of
        September 30, 2006, the accounts of 188.com were maintained, and its financial
        statements were expressed, in Chinese Yuan Renminbi (CNY). Such financial
        statements were translated into U.S. Dollars (USD) in accordance with Statement
        of Financial Accounts Standards (“SFAS”) No. 52, “Foreign Currency Translation,”
with the CNY as the functional currency. According to the Statement, all
        assets
        and liabilities were translated at the current exchange rate, stockholder’s
        equity are translated at the historical rates and income statement items
        are
        translated at the average exchange rate for the period. The resulting
        translation adjustments are reported under other comprehensive income in
        accordance with SFAS No. 130, “Reporting Comprehensive Income” as a component of
        shareholders’ equity.
 
 Concentration
        of Credit Risk
 Financial
        instruments that potentially subject the Company to concentrations of credit
        risk are cash, accounts receivable and other receivables arising from its
        normal
        business activities. The Company places its cash in what it believes to be
        credit-worthy financial institutions. The Company has a diversified customer
        base. The Company controls credit risk related to accounts receivable through
        credit approvals, credit limits and monitoring procedures. The Company routinely
        assesses the financial strength of its customers and, based upon factors
        surrounding the credit risk, establishes an allowance, if required, for
        uncollectible accounts and, as a consequence, believes that its accounts
        receivable credit risk exposure beyond such allowance is limited.
 
 
 Cash
        and Cash Equivalents
  Cash
        and
        cash equivalents include cash in hand and cash in time deposits, certificates
        of
        deposit and all highly liquid debt instruments with original maturities of
        three
        months or less.
  Property
        & Equipment
 Property
        and equipment are stated at cost less accumulated depreciation. Expenditures
        for
        major additions and improvements are capitalized, and minor replacements,
        maintenance and repairs are charged to expense as incurred. Depreciation
        is
        provided on the straight-line method over the estimated useful lives of the
        assets, or the remaining term of the lease, as follows:
  Furniture
                  and
                  Fixtures
              5
                  yearsEquipment
              5
                  yearsComputer
                  Hardware and Software
              5
                  years
  Depreciation
        expenses were $4,478 and $1,075 for the nine month periods ended September
        30,
        2006 and 2005, respectively.
  Advertising
 Advertising
        expenses consist primarily of costs of promotion for corporate image and
        product
        marketing and costs of direct advertising. The Company expenses all advertising
        costs as incurred.
 
 
 
 
 F-7
 
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        B -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED** **)**
 
 Income
        Taxes
 The
        Company utilizes SFAS No. 109, “Accounting for Income Taxes,” which requires the
        recognition of deferred tax assets and liabilities for the expected future
        tax
        consequences of events that have been included in the financial statements
        or
        tax returns. Under this method, deferred income taxes are recognized for
        the tax
        consequences in future years of differences between the tax bases of assets
        and
        liabilities and their financial reporting amounts at each period end based
        on
        enacted tax laws and statutory tax rates applicable to the periods in which
        the
        differences are expected to affect taxable income. Valuation allowances are
        established, when necessary, to reduce deferred tax assets to the amount
        expected to be realized.
 
 Basic
        and Diluted Earnings Per Share
 Earnings
        per share is calculated in accordance with the Statement of financial accounting
        standards No. 128 (SFAS No. 128), “Earnings per share”. SFAS No. 128 superseded
        Accounting Principles Board Opinion No.15 (APB 15). Net loss per share for
        all
        periods presented has been restated to reflect the adoption of SFAS No. 128.
        Basic net loss per share is based upon the weighted average number of common
        shares outstanding. Diluted net loss per share is based on the assumption
        that
        all dilutive convertible shares and stock options were converted or exercised.
        Dilution is computed by applying the treasury stock method. Under this method,
        options and warrants are assumed to be exercised at the beginning of the
        period
        (or at the time of issuance, if later), and as if funds obtained thereby
        were
        used to purchase common stock at the average market price during the period.
 
 Statement
        of Cash Flows
 In
        accordance with SFAS No. 95, “Statement of Cash Flows,” cash flows from the
        Company’s operations is based upon the local currencies. As a result, amounts
        related to assets and liabilities reported on the statement of cash flows
        will
        not necessarily agree with changes in the corresponding balances on the balance
        sheet.
 
 Segment
        Reporting
  Statement
        of Financial Accounting Standards No. 131 (“SFAS 131”), “Disclosure About
        Segments of an Enterprise and Related Information” requires use of the
“management approach” model for segment reporting. The management approach model
        is based on the way a company’s management organizes segments within the company
        for making operating decisions and assessing performance. Reportable segments
        are based on products and services, geography, legal structure, management
        structure, or any other manner in which management disaggregates a company.
        SFAS
        131 has no effect on the Company’s consolidated financial statements as the
        Company consists of one reportable business segment.
  
 F-8
 
 
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        B -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED** **)**
 
 Intangible
        assets
 The
        Company applies the criteria specified in SFAS No. 141, “Business
        Combinations” to determine whether an intangible asset should be recognized
        separately from goodwill. Intangible assets acquired through business
        acquisitions are recognized as assets separate from goodwill if they satisfy
        either the “contractual-legal” or “separability” criterion. Per SFAS 142,
        intangible assets with definite lives are amortized over their estimated
        useful
        life and reviewed for impairment in accordance with SFAS No. 144,
“Accounting for the Impairment or Disposal of Long-lived Assets.” Intangible
        assets, such as purchased technology, trademark, customer list, user base
        and
        non-compete agreements, arising from the acquisitions of subsidiaries and
        variable interest entities are recognized and measured at fair value upon
        acquisition. Intangible assets are amortized over their estimated useful
        lives
        from one to ten years. The Company reviews the amortization methods and
        estimated useful lives of intangible assets at least annually or when events
        or
        changes in circumstances indicate that it might be impaired. The recoverability
        of an intangible asset to be held and used is evaluated by comparing the
        carrying amount of the intangible asset to its future net undiscounted cash
        flows. If the intangible asset is considered to be impaired, the impairment
        loss
        is measured as the amount by which the carrying amount of the intangible
        asset
        exceeds the fair value of the intangible asset, calculated using a discounted
        future cash flow analysis. The Company uses estimates and judgments in its
        impairment tests, and if different estimates or judgments had been utilized,
        the
        timing or the amount of the impairment charges could be different.
  Long-Lived
        Assets ******
 Effective
        January 1, 2002, the Company adopted Statement of Financial Accounting Standards
        No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” (“SFAS
        144”), which addresses financial accounting and reporting for the impairment
        or
        disposal of long-lived assets and supersedes SFAS No. 121, “Accounting for the
        Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
        Of,”
and the accounting and reporting provisions of APB Opinion No. 30, “Reporting
        the Results of Operations for a Disposal of a Segment of a Business.” The
        Company periodically evaluates the carrying value of long-lived assets to
        be
        held and used in accordance with SFAS 144. SFAS 144 requires impairment losses
        to be recorded on long-lived assets used in operations when indicators of
        impairment are present and the undiscounted cash flows estimated to be generated
        by those assets are less than the assets’ carrying amounts. In that event, a
        loss is recognized based on the amount by which the carrying amount exceeds
        the
        fair market value of the long-lived assets. Loss on long-lived assets to
        be
        disposed of is determined in a similar manner, except that fair market values
        are reduced for the cost of disposal. Based on its review, the Company believes
        that, as of September 30, 2006 there were no significant impairments of its
        long-lived assets.
  
 
 F-9
 
 
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        B -** **SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED** **)**
 
 Recent
        accounting pronouncements
 In
        May
        2005, the FASB issued SFAS No. 154, “Accounting Changes and Error Corrections.”
This statement applies to all voluntary changes in accounting principle and
        requires retrospective application to prior periods’ financial statements of
        changes in accounting principle, unless this would be impracticable. This
        statement also makes a distinction between “retrospective application” of an
        accounting principle and the “restatement” of financial statements to reflect
        the correction of an error. This statement is effective for accounting changes
        and corrections of errors made in fiscal years beginning after December 15,
        2005.
 
 In
        February 2006, FASB issued SFAS No. 155, “Accounting for Certain Hybrid
        Financial Instruments”. SFAS No. 155 amends SFAS No 133, “Accounting for
        Derivative Instruments and Hedging Activities”, and SFAF No. 140, “Accounting
        for Transfers and Servicing of Financial Assets and Extinguishments of
        Liabilities”. SFAS No. 155, permits fair value remeasurement for any hybrid
        financial instrument that contains an embedded derivative that otherwise
        would
        require bifurcation, clarifies which interest-only strips and principal-only
        strips are not subject to the requirements of SFAS No. 133, establishes a
        requirement to evaluate interest in securitized financial assets to identify
        interests that are freestanding derivatives or that are hybrid financial
        instruments that contain an embedded derivative requiring bifurcation, clarifies
        that concentrations of credit risk in the form of subordination are not embedded
        derivatives, and amends SFAS No. 140 to eliminate the prohibition on the
        qualifying special-purpose entity from holding a derivative financial instrument
        that pertains to a beneficial interest other than another derivative financial
        instrument. This statement is effective for all financial instruments acquired
        or issued after the beginning of the Company’s first fiscal year that begins
        after September 15, 2006.
  In
        March
        2006 FASB issued SFAS 156 ‘Accounting for Servicing of Financial Assets’ this
        Statement amends FASB Statement No. 140, Accounting for Transfers and Servicing
        of Financial Assets and Extinguishments of Liabilities, with respect to the
        accounting for separately recognized servicing assets and servicing liabilities.
        This Statement:
 
 1.
            Requires
                an entity to recognize a servicing asset or servicing liability each
                time
                it undertakes an obligation to service a financial asset by entering
                into
                a servicing contract. 2.
            Requires
                all separately recognized servicing assets and servicing liabilities
                to be
                initially measured at fair value, if practicable. 3.
            Permits
                an entity to choose ‘Amortization method’ or  Fair value measurement
                method’ for each class of separately recognized servicing assets and
                servicing liabilities: 4.
            At
                its initial adoption, permits a one-time reclassification of
                available-for-sale securities to trading securities by entities with
                recognized servicing rights, without calling into question the treatment
                of other available-for-sale securities under Statement 115, provided
                that
                the available-for-sale securities are identified in some manner as
                offsetting the entity’s exposure to changes in fair value of servicing
                assets or servicing liabilities that a servicer elects to subsequently
                measure at fair value. 5.
            Requires
                separate presentation of servicing assets and servicing liabilities
                subsequently measured at fair value in the statement of financial
                position
                and additional disclosures for all separately recognized servicing
                assets
                and servicing liabilities. 
 This
        Statement is effective as of the beginning of the Company’s first fiscal year
        that begins after September 15, 2006. Management believes that this statement
        will not have a significant impact on the consolidated financial
        statements.
   F-10
   **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 In
        September 2006, FASB issued SFAS 157 ‘Fair Value Measurements’. This Statement
        defines fair value, establishes a framework for measuring fair value in
        generally accepted accounting principles (GAAP), and expands disclosures
        about
        fair value measurements. This Statement applies under other accounting
        pronouncements that require or permit fair value measurements, the Board
        having
        previously concluded in those accounting pronouncements that fair value is
        the
        relevant measurement attribute. Accordingly, this Statement does not require
        any
        new fair value measurements. However, for some entities, the application
        of this
        Statement will change current practice. This Statement is effective for
        financial statements issued for fiscal years beginning after November 15,
        2007,
        and interim periods within those fiscal years. The management is currently
        evaluating the effect of this pronouncement on financial
        statements.
 
 In
        September 2006, FASB issued SFAS 158 ‘Employers’ Accounting for Defined Benefit
        Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87,
        88, 106, and 132(R)’ This Statement improves financial reporting by requiring an
        employer to recognize the over funded or under funded status of a defined
        benefit postretirement plan (other than a multiemployer plan) as an asset
        or
        liability in its statement of financial position and to recognize changes
        in
        that funded status in the year in which the changes occur through comprehensive
        income of a business entity or changes in unrestricted net assets of a
        not-for-profit organization. This Statement also improves financial reporting
        by
        requiring an employer to measure the funded status of a plan as of the date
        of
        its year-end statement of financial position, with limited exceptions. An
        employer with publicly traded equity securities is required to initially
        recognize the funded status of a defined benefit postretirement plan and
        to
        provide the required disclosures as of the end of the fiscal year ending
        after
        December 15, 2006. An employer without publicly traded equity securities
        is
        required to recognize the funded status of a defined benefit postretirement
        plan
        and to provide the required disclosures as of the end of the fiscal year
        ending
        after June 15, 2007. However, an employer without publicly traded equity
        securities is required to disclose the following information in the notes
        to
        financial statements for a fiscal year ending after December 15, 2006, but
        before June 16, 2007, unless it has applied the recognition provisions of
        this
        Statement in preparing those financial statements:
  a.  A brief
        description of the provisions of this Statement
  b.  The date
        that adoption is required
  c.  The date
        the employer plans to adopt the recognition provisions of this Statement,
        if
        earlier.
  The
        requirement to measure plan assets and benefit obligations as of the date
        of the
        employer’s fiscal year-end statement of financial position is effective for
        fiscal years ending after December 15, 2008. The management is currently
        evaluating the effect of this pronouncement on financial
        statements.
 
 **Note
        C -** **NOTES
        RECEIVABLE**
  Other
        receivable includes unsecured cash loan of $82,481 to an ex shareholder.
        Interest receivable of $1,110 has been accrued as of September 30, 2006 on
        the
        loan at the prevailing bank rate of 5.52% per China Renmin Bank. The loan
        is due
        on November 10, 2006.
  **Note
        D -** **RELATED
        PARTY TRANSACTIONS**
  Throughout
        the history of the Company, certain members of the Board of Directors and
        general management have made loans to the Company to cover operating expenses
        or
        operating deficiencies. As of September 30, 2006, the Company has non
        interest-bearing, unsecured and due on demand note payable to former
        shareholders of 188.com in the amount of $84,000.
 
 On
        May 2,
        2006 the Company entered into a Promissory note with the Chief Executive
        Officer
        of the Company for $34,924. The note is non interest-bearing, unsecured and
        due
        and payable on December 31, 2007.
  **Note
        E -** **COMMON
        STOCK**
  On
        May
        17, 2005, the Company issued 150,000 shares of common stock to individuals
        for
        subscriptions receivable of $60,000 ($0.40 per share). However, the physical
        certificates were not issued as the company is still waiting for its
        registration statement to become effective. The amount received has been
        reflected as shares to be issued in the equity section in the accompanying
        consolidated financial statements.
  On
        November 7, 2005, the Company issued 10,000,000 shares of common stock at
        par of
        $0.001 per share for purchase all of the issued and outstanding shares of
        Top
        Interest from its shareholders.
 
 
 
 F-11
 
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        F -** **STOCK** ****** **EXCHANGE
        AGREEMENT**
  On
        November 7, 2005, the Company entered into an Exchange Agreement with Top
        Interest, a company incorporated under the laws of the British Virgin Islands.
        Top Interest owns 70% of equity interest of 188.com which is incorporated
        under
        the laws of the People’s Republic of China, and is engaged in the business of
        providing information search engine, online web application and image designing,
        digital network service, online market research, online promotion and
        advertising services, and query searches for both individuals and
        businesses.
  Pursuant
        to the Stock Purchase and Share Exchange Agreement, the Company purchased
        all of
        the issued and outstanding shares of Top Interest form the shareholders for
        issuance of a total of 10,000,000 shares of the Company’s common stock, or
        approximately 99% of the total issued and outstanding shares. This transaction
        closed on November 7, 2005.
  As
        a
        result of the exchange agreement, the reorganization was treated as an
        acquisition by the accounting acquiree that is being accounted for as a
        recapitalization and as a reverse merger by the legal acquirer for accounting
        purposes. Pursuant to the recapitalization, all capital stock shares and
        amounts
        and per share data have been retroactively restated. Accordingly, the financial
        statements include the following:
  (1)
        The
        balance sheet consists of the net assets of the accounting acquirer at
        historical cost and the net assets of the legal acquirer at historical
        cost.
  (2)
        The
        statements of operations include the operations of the accounting acquirer
        for
        the period presented and the operations of the legal acquirer from the date
        of
        the merger.
  **Note
        G -** **PROPERTY
        & EQUIPMENT**
  Property
        & equipment consist of the following at September 30, 2006:
  Automobile
              
              $
              11,040Office
                  equipment
              
              
              19,20230,242Accumulated
                  depreciation
              
              
              (8,114
              )$
              22,128
 
 
 
 
 F-12
 
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        H - INTANGIBLE** **ASSETS**
  Intangible
        assets consist of the following at September 30, 2006:
  September
                  30, 2006Software
              
              $
              12,25512,255Accumulated
                  amortization
              
              
              (3,064
              )$
              9,191
   Amortization
        expense for the Company’s intangible assets over the next five fiscal years is
        estimated to be: 2007-$2,416, 2008-$2,416, 2009-$2,416, 2010-$2,416 and
        2011-$605.
  **Note
        I -** **INCOME
        TAXES**
 The
        Company through its subsidiary, 188.com, is governed by the Income Tax Laws
        of
        the PRC. Operations in the United States of America have incurred net
        accumulated operating losses for income tax purposes. The Company believes
        that
        it is more likely than not that these net accumulated operating losses will
        not
        be utilized in the future and hence the Company has not recorded any deferred
        assets as of September 30, 2006.
 
 Pursuant
        to the PRC Income Tax Laws, the Enterprise Income Tax (“EIT”) is at a statutory
        rate of 33%, which is comprises of 30% national income tax and 3% local income
        tax. 188.com qualified as a new technology enterprise and under PRC Income
        Tax
        Laws, they are subject to a preferential tax rate of 15%.
  Income
        tax provision for the nine months ended September 30, 2006:
  September
                  30, 2006Provision
                  for
                  PRC Income and local taxes
              
              $
              0U.S
                  Statutory rates
              
              
              34
              %Foreign
                  income not recognized in USA
              
              
              (34
              %)PRC
                  income tax
              
              
              0
              %
   
 F-13
 
 
 
 
 **ARTCRAFT
        V, INC. AND SUBSIDIARIES**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 **(UNAUDITED)**
 
 **Note
        J -** **STATUTORY
        COMMON WELFARE FUND**
  In
        accordance with the laws and regulations of the PRC, after the payment of
        the
        PRC income taxes shall be allocated to the statutory surplus reserves and
        statutory public welfare fund for staff and workers. The proportion of
        allocation for reserve is 5 to 10 percent of the profit after tax until the
        accumulated amount of allocation for statutory reserve reaches 50 percent
        of the
        registered capital. Statutory surplus reserves are to be utilized to offset
        prior years’ losses, or to increase its share capital.
  General
        reserve fund and statutory surplus fund are restricted for set off against
        losses, expansion of production and operation or increase in register capital
        of
        the respective company. Statutory public welfare fund is restricted to the
        capital expenditures for the collective welfare of employees. These reserves
        are
        not transferable to the Company in the form of cash dividends, loans or
        advances. These reserves are therefore not available for distribution except
        in
        liquidation. As of September 30, 2006, the Company had no reserves to these
        non-distributable reserve funds since it had no income from operations.
  **Note
        K -** **OTHER
        COMPREHENSIVE INCOME**
  Balances
        of related after-tax components comprising accumulated other comprehensive
        income (loss), included in stockholders’ equity, at September 30, 2006 are as
        follows:
  *Foreign
                  Currency Translation Adjustment*Balance
                  at December 31, 2005
              
              $
              (38
              )Change
                  for 2006
              
              
              2,403Balance
                  at September 30, 2006
              
              $
              2,365









F-14


**Item
      2.**   **Management’s
      Discussion and Analysis or Plan of Operation**




**SAFE
      HARBOR REGARDING FORWARD-LOOKING STATEMENTS**






*The
      information contained in Item 2 contains forward-looking statements within
      the
      meaning of Section 27A of the Securities Act of 1933, as amended, and Section
      21E of the Securities Exchange Act of 1934, as amended. Actual results may
      materially differ from those projected in the forward-looking statements as
      a
      result of certain risks and uncertainties set forth in this report. Although
      management believes that the assumptions made and expectations reflected in
      the
      forward-looking statements are reasonable, there is no assurance that the
      underlying assumptions will, in fact, prove to be correct or that actual results
      will not be different from expectations expressed in this
      report.*




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





The
      following management’s discussion and analysis of financial condition and
      results of operations (“MD&A”) should be read in conjunction with the
      December 31, 2005 consolidated financial statements and notes thereto (the
      2005
      Consolidated Financial Statements), along with the MD&A included in Artcraft
      V, Inc.’s 2005 Annual Report on Form 10-KSB for the period ended December 31,
      2005 and the Quarterly Report on Form 10-QSB for the period ended March 31,
      2006
      and June 30, 2006. The discussion of results, causes and trends should not
      be
      construed to imply any conclusion that such results or trends will necessarily
      continue in the future.





The
      information contained in this MD&A, other than historical information,
      contains “forward looking statements” within the meaning of The Private
      Securities Litigation Reform Act of 1995 that are based on management’s current
      expectations and assumptions. This MD&A should be read in conjunction with
      the sections entitled “Additional Factors That May Affect Future Results” and
“Forward-Looking Statements.”




**OVERVIEW**




Artcraft
      V, Inc. was incorporated under the laws of the State of Delaware on June 7,
      2004. On November 7, 2005, the Company entered into an Exchange Agreement with
      Top Interest International Limited (“Top Interest”). Top Interest owns 70%
      equity interest of Shenzhen Xin Kai Yuen Info Consult Co., Ltd. (“188.com”)
      which operates 188info.com, a professional information searching platform that
      categorized the information it provides based on geographical. Top Interest
      was
      incorporated under the laws of the British Virgin Islands. 188.com was legally
      established under the laws of the People’s Republic of China. When used in these
      notes, the terms “Company”, “we”, “our” or “us” mean Artcraft V, Inc. and its
      subsidiaries.





On
      November 7, 2005, the Company entered into an Exchange Agreement with Top
      Interest, a company incorporated under the laws of the British Virgin Islands.
      Top Interest owns 70% of equity interest of 188.com which is incorporated under
      the laws of the People’s Republic of China, and is engaged in the business of
      providing information search engine, online web application and image designing,
      digital network service, online market research, online promotion and
      advertising services, and query searches for both individuals and
      businesses.





Pursuant
      to the Stock Purchase and Share Exchange Agreement, the Company purchased all
      of
      the issued and outstanding shares of Top Interest form the shareholders for
      issuance of a total of 10,000,000 shares of the Company’s common stock, or
      approximately 97.56% of the total issued and outstanding shares. This
      transaction closed on November 7, 2005.












As
      a
      result of the exchange agreement, the reorganization was treated as an
      acquisition by the accounting acquiree that is being accounted for as a
      recapitalization and as a reverse merger by the legal acquirer for accounting
      purposes. Pursuant to the recapitalization, all capital stock shares and amounts
      and per share data have been retroactively restated. Accordingly, the financial
      statements include the following:





(1)
      The
      balance sheet consists of the net assets of the accounting acquirer at
      historical cost and the net assets of the legal acquirer at historical
      cost.





(2)
      The
      statements of operations include the operations of the accounting acquirer
      for
      the period presented and the operations of the legal acquirer from the date
      of
      the merger.





The
      Company is now engaged in the business of mobile phone, facsimile machines
      distribution.





**RESULTS
      OF OPERATIONS**




The
      following table presents certain consolidated statement of operations
      information for the nine months ended September 30, 2006 and 2005. Certain
      columns may not add due to rounding.





**2006**
            
            **2005**Sales, net
            
            $
            16,420
            
            $
            14,991General and Administrative Expense
            
            
            66,543
            
            
            16,672Income (Loss) from Operations
            
            $
            (50,123
            )
            $
            (1,681
            )





**Net
      sales**





Net
      sales
      for the nine months ended September 30, 2006 totaled $16,420 compared to $14,991
      as of the nine months ended September 30, 2005, an increase of $1,429 or
      approximately 9.5%. The increase was due to the increase in the number of new
      clients.





**Operating
      Expense**





Operating
      expense for nine months ended September 30, 2006 totaled $66,543 or
      approximately 405.3% of net sales, compared to $16,672 or approximately 111.2%
      for the nine months ended September 30, 2005. The increase in operating expense
      of $49,871 or approximately 299.1% was due to increased expenses incurred during
      expansion of the business.




**Loss
      from Operations**




Loss
      from
      operations for the nine months ended September 30, 2006 was $50,123 as compared
      to loss from operations of $1,681 for the nine months ended September 30, 2005,
      a decrease of $48,442 or approximately 2,881.7%. The decrease was due reasons
      stated above.





**Interest
      Expense**





Interest
      expense for the nine months ended September 30, 2006 totaled $123 compared
      to $0
      for the nine months ended September 30, 2005, an increase of $123. The increase
      in interest expense was due to the indebtedness related to the acquisition
      of
      fixed assets .












**Net
      Loss**





Net
        loss
        was $43,682 for the nine months ended September 30, 2006 compared to net
        loss of
        $1,069 for the nine months ended September 30, 2005, a increase of $42,613
        or
        3,986.2%. The increase was due to the increased operating
        expenses.





**LIQUIDTY
      AND CAPITAL RESOURCES**




Cash
      has
      historically been generated from operations. Operations and liquidity needs
      are
      funded primarily through cash flows from operations and short-term borrowings.
      Cash and cash equivalents were $10,987 at September 30, 2006 and current assets
      totaled $94,831 at September 30, 2006. The Company's total current liabilities
      were $133,953 at September 30, 2006. Working capital at September 30, 2006
      was
      $(39,122). During the nine months ended September 30, 2006, net cash used in
      operating activities was $32,182.




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




**Capital
      expenditures**




Total
      capital expenditures during the nine months ended September 30, 2006 and 2005
      was $0 and $21,800, respectively for the purchase of fixed assets.




**Working
      Capital Requirements**




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





**OFF-BALANCE
      SHEET ARRANGEMENTS**




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






**Critical
      Accounting Policies**




Artcraft
      V, Inc.’s financial statements and related public financial information are
      based on the application of accounting principles generally accepted in the
      United States (“GAAP”). GAAP requires the use of estimates; assumptions,
      judgments and subjective interpretations of accounting principles that have
      an
      impact on the assets, liabilities, revenue and expense amounts reported. These
      estimates can also affect supplemental information contained in our external
      disclosures including information regarding contingencies, risk and financial
      condition. We believe our use if estimates and underlying accounting assumptions
      adhere to GAAP and are consistently and conservatively applied. We base our
      estimates on historical experience and on various other assumptions that we
      believe to be reasonable under the circumstances. Actual results may differ
      materially from these estimates under different assumptions or conditions.
      We
      continue to monitor significant estimates made during the preparation of our
      financial statements.




Our
      significant accounting policies are summarized in Note 1 of our financial
      statements. While all these significant accounting policies impact its financial
      condition and results of operations, Artcraft V. views certain of these policies
      as critical. Policies determined to be critical are those policies that have
      the
      most significant impact on Artcraft V, Inc.’s consolidated financial statements
      and require management to use a greater degree of judgment and estimates. Actual
      results may differ from those estimates. Our management believes that given
      current facts and circumstances, it is unlikely that applying any other
      reasonable judgments or estimate methodologies would cause effect on our
      consolidated results of operations, financial position or liquidity for the
      periods presented in this report.










**Item
      3.**  **Controls
      and Procedures**




Under
      the
      supervision and with the participation of our management, including our
      principal executive officer and principal financial officer, we conducted an
      evaluation of our disclosure controls and procedures, as such term is defined
      under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities
      Exchange Act of 1934, as amended (Exchange Act), as of September
      30 ,
      2006.
      Based on this evaluation, our principal executive officer and principal
      financial officer have concluded that our disclosure controls and procedures
      are
      effective to ensure that information required to be disclosed by us in the
      reports we file or submit under the Exchange Act is recorded, processed,
      summarized, and reported within the time periods specified in the Securities
      and
      Exchange Commission’s rules and forms and that our disclosure and controls are
      designed to ensure that information required to be disclosed by us in the
      reports that we file or submit under the Exchange Act is accumulated and
      communicated to our management, including our principal executive officer and
      principal financial officer, or persons performing similar functions, as
      appropriate to allow timely decisions regarding required
      disclosure.






There
      were no changes (including corrective actions with regard to significant
      deficiencies or material weaknesses) in our internal controls over financial
      reporting that occurred during the second quarter of fiscal 2006 that has
      materially affected, or is reasonably likely to materially affect, our internal
      control over financial reporting.






**PART
      II - OTHER INFORMATION**


**Item
        1.**   **Legal
        Proceedings.**
  We
        are
        currently not a party to any pending legal proceedings and no such action
        by, or
        to the best of our knowledge, against us has been threatened.
 
 **Item
        2.**   **Unregistered
        Sales of Equity Securities and Use of Proceeds.**
  None.
 
 **Item
        3.**  **Defaults
        Upon Senior Securities.**
 
 None.
 
 **Item
        4.**   **Submission
        of Matters to a Vote of Security Holders.**
  No
        matter
        was submitted during the quarter ending September 30,
        2006,
        covered by this report to a vote of the Company’s shareholders, through the
        solicitation of proxies or otherwise.
 
 **Item
        5.**   **Other
        Information.**
 
 None.
 
 **Item
        6.**   **Exhibits
        and Reports of Form 8-K.**
  **(a)**   **Exhibits**
 
 31.1
        Certification pursuant to Section 302 of Sarbanes Oxley Act of
        2002
 32.1
        Certification pursuant to Section 906 of Sarbanes Oxley Act of 2002
  **(b)**  **Reports
        of Form 8-K**
 
 None.











**SIGNATURES**




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




**ARTCRAFT
                V, INC.**




By:*/s/
                Li Te Xiao*Li
                Te XiaoPresident,
                Chief Executive Officer,Chief
                Financial Officer and Director






Date: November 14,
      2006