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 quarterly period ended August 31, 2005. or  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 000-50818  ARTCRAFT V INC. (Exact name of registrant as specified in its charter)  Delaware(State or other jurisdiction of
        (I.R.S. Employer Identification No.)incorporation or organization)  Baimang Checking Station 1st Building              South Mountain Xili Town, Shenzhen, China(Address of principal executive offices)
        (Zip Code)  (775)27653497 (Registrants telephone number, including area code)  (Former name, former address and former fiscal year, if changed since last report)  Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YesxNoo  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.  YesxNoo  State the number of shares outstanding of each of the issuers classes of common equity, as of October 10, 2005: 250,000 shares of common stock.            ARTCRAFT V, INC.



FINANCIAL STATEMENTS



INDEX



PART I-- FINANCIAL INFORMATION




Item 1.
        Financial Statements


Item 2.
        Managements Discussion and Analysis of Financial Condition


Item 3.
        Control and Procedures

PART II-- OTHER INFORMATION




Item 1.
        Legal Proceedings


Item 2.
        Changes in Securities


Item 3.
        Defaults Upon Senior Securities


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


Item 5.
        Other Information


Item 6.
        Exhibits and Reports on Form 8-K

SIGNATURE



Item 1. Financial Information



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 months ended August 31, 2005 are not necessarily indicative of results that may be expected for the year ending May 31, 2006. The financial statements are presented on the accrual basis.











































ARTCRAFT V, INC.

(A DEVELOPMENT STAGE COMPANY)

FINANCIAL STATEMENTS

AS OF AUGUST 31, 2005

(UNAUDITED)






ARTCRAFT V, INC.

(A DEVELOPMENT STAGE COMPANY)





CONTENTS






PAGE
        1
        BALANCE SHEET AS OF AUGUST 31, 2005 (UNAUDITED)PAGE
        2
        STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED AUGUST 31, 2005, FOR THE PERIOD FROM JUNE 7, 2004 (INCEPTION) TO AUGUST 31, 2004 AND FOR THE PERIOD FROM JUNE 7, 2004 (INCEPTION) TO AUGUST 31, 2005 (UNAUDITED)PAGE
        3
        STATEMENTS OF CHANGES IN STOCKHOLDERS DEFICIENCY FOR THE PERIOD FROM JUNE 7, 2004 (INCEPTION) TO AUGUST 31, 2005 (UNAUDITED)PAGE
        4
        STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED AUGUST 31, 2005, FOR THE PERIOD FROM JUNE 7, 2004 (INCEPTION) TO AUGUST 31, 2004 AND FOR THE PERIOD FROM JUNE 7, 2004 (INCEPTION) TO AUGUST 31, 2005 (UNAUDITED)PAGES
        5 - 7
        NOTES TO FINANCIAL STATEMENTS (UNAUDITED)



ARTCRAFT V, INC.

(A DEVELOPMENT STAGE COMPANY)

BALANCE SHEET

AS OF AUGUST 31, 2005

(UNAUDITED)










ASSETSCURRENT ASSETSPrepaid expense
        $
        -TOTAL CURRENT ASSETS
        $
        -LIABILITIES AND STOCKHOLDERS DEFICIENCYCURRENT LIABILITIESAccounts payable
        $
        2,086Stockholder loans
        
        16,005TOTAL CURRENT LIABILITIES
        $
        18,091STOCKHOLDERS DEFICIENCYPreferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding, respectively
        
        -Common stock, $0.001 par value, 100,000,000 shares authorized, 250,000 shares issued and outstanding, respectively
        
        250Additional paid in capital
        
        62,650Subscriptions receivable
        
        (60,000)Accumulated deficit during development stage
        
        (20,991)Total Stockholders Deficiency
        
        (18,091)TOTAL LIABILITIES AND STOCKHOLDERS DEFICIENCY
        $
        -



See accompanying notes to financial statements.

1


ARTCRAFT V, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF OPERATIONS

(UNAUDITED)













For the Three Months Ended
August 31, 2005
        
        For the Period from
June 7, 2004 (Inception) to
August 31, 2004
        
        For the Period from
June 7, 2004 (Inception) to
August 31, 2005REVENUE
        $
        -
        $
        -
        $
        -OPERATING EXPENSESProfessional fees
        
        13,782
        
        850
        
        19,191In-kind contribution of services
        
        600
        
        -
        
        1,800Total Operating Expenses
        
        14,382
        
        850
        
        20,991LOSS FROM OPERATIONS
        
        (14,382)
        
        (850)
        
        (20,991)Provision for Income Taxes
        
        -
        
        -
        
        -NET LOSS
        $
        (14,382)
        $
        (850)
        $
        (20,991)Net loss per share - basic and diluted
        $
        (0.06)
        $
        -
        $
        (0.16)Weighted average number of shares outstanding during the period  basic and diluted
        
        250,000
        
        100,000
        
        130,667

See accompanying notes to financial statements.

2


ARTCRAFT V, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENT OF STOCKHOLDERS DEFICIENCY

FOR THE PERIOD FROM JUNE 7, 2004 (INCEPTION) TO AUGUST 31, 2005

(UNAUDITED)










Preferred Stock
        
        Common Stock
        
        Additional Paid-In
        
        Subscriptions
        
        Accumulated Deficit During DevelopmentShares
        
        Amount
        
        Shares
        
        Amount
        
        Capital
        
        Receivable
        
        Stage
        
        TotalCommon stock issued to founder for incorporation expense ($0.001 per share)
        
        -
        $
        -
        
        100,000
        $
        100
        $
        -
        $
        -
        $
        -
        $
        100In-kind contribution
        
        -
        
        -
        
        -
        
        -
        
        2,200
        
        -
        
        -
        
        2,200Common stock issued for cash ($0.40 per share)
        
        -
        
        -
        
        150,000
        
        150
        
        59,850
        
        (60,000)
        
        -
        
        -Net loss for the period from June 7, 2004 (inception) to May 31, 2005
        
        -
        
        -
        
        -
        
        -
        
        -
        
        -
        
        (6,609)
        
        (6,609)Balance, May 31, 2005
        
        -
        
        -
        
        250,000
        
        250
        
        62,050
        
        (60,000)
        
        (6,609)
        
        (4,309)In-kind contribution
        
        -
        
        -
        
        -
        
        -
        
        600
        
        -
        
        -
        
        600Net loss for the three months ended August 31, 2005
        
        -
        
        -
        
        -
        
        -
        
        -
        
        -
        
        (14,382)
        
        (14,382)BALANCE, AUGUST 31, 2005
        
        -
        $
        -
        
        250,000
        $
        250
        $
        62,650
        $
        (60,000)
        $
        (20,991)
        $
        (18,091)




See accompanying notes to financial statements.

3


ARTCRAFT V, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF CASH FLOWS

(UNAUDITED)












For the Three Months Ended
August 31, 2005
        
        For the Period from
June 7, 2004 (Inception) to
August 31, 2004
        
        For the Period from
June 7, 2004 (Inception) to
August 31, 2005CASH FLOWS FROM OPERATING ACTIVITIES:Net loss
        
        (14,382)
        $
        (850)
        $
        (20,991)Adjustments to reconcile net loss to net cash used in operating activities:In-kind contribution
        
        600
        
        -
        
        2,800Changes in operating assets and liabilities:Prepaid expenses
        
        10,000
        
        -
        
        -Increase (decrease) in accounts payable
        
        2,086
        
        750
        
        2,086Net Cash Used In Operating Activities
        
        (1,696)
        
        (100)
        
        (16,105)CASH FLOWS FROM INVESTING ACTIVITIES
        
        -
        
        -
        
        -CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issuance of common stock
        
        -
        
        100
        
        100Stockholder loan
        
        1,696
        
        -
        
        16,005Net Cash Provided By Financing Activities
        
        1,696
        
        100
        
        16,105NET INCREASE (DECREASE) IN CASH
        
        -
        
        -
        
        -CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
        
        -
        
        -
        
        -CASH AND CASH EQUIVALENTS AT END OF PERIOD
        $
        -
        $
        -
        $
        -



See accompanying notes to financial statements.

4


ARTCRAFT V, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

AS OF AUGUST 31, 2005

(UNAUDITED)









NOTE 1
        SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

(A) Basis of Presentation



The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in The United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.



It is managements opinion, however that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the year.



(B) Use of Estimates



In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates.



(C) Loss Per Share



Basic and diluted net loss per common share is computed based upon the weighted average common shares outstanding as defined by Financial Accounting Standards No. 128, Earnings Per Share.  As of August 31, 2005, there were no common share equivalents outstanding.



(D) Income Taxes



The Company accounts for income taxes under the Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes (Statement 109). Under Statement 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under Statement 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.





5


ARTCRAFT V, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

AS OF AUGUST 31, 2005

(UNAUDITED)







(E) Business Segments



The Company operates in one segment and therefore segment information is not presented.



(F) Recent Accounting Pronouncements



Statement of Financial Accounting Standards (SFAS) No. 151, Inventory Costs  an amendment of ARB No. 43, Chapter 4 SFAS No. 152, Accounting for Real Estate Time-Sharing Transactions - an amendment of FASB Statements No. 66 and 67, SFAS No. 153, Exchanges of Non-monetary Assets  an amendment of APB Opinion No. 29, SFAS No. 154, Accounting for Changes and Error Corrections  a replacement of APB Opinion No. 20 and FASB Statement No. 3 and SFAS No. 123 (revised 2004), Share-Based Payment, were recently issued. SFAS No. 151, 152, 153, 154 and 123 (revised 2004) have no current applicability to the Company and have no effect on the financial statements.




NOTE 2
        STOCKHOLDER LOAN

During 2005, the Company received a loan of $1,696 from its stockholder for operating expenses. The total loan as of August 31, 2005 is $16,005. The loan is non-interest bearing, unsecured and due on demand.




NOTE 3
        STOCKHOLDERS EQUITY

(A) Common Stock Issued for Cash



On December 17, 1999, the Company issued 100,000 shares of common stock to its founder for expenses incurred in the formation of the Company valued at $100 ($0.001 per share).



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).



(B) In-Kind Contribution



During 2005, the Company recorded an in-kind contribution of $1,200 for the fair value of services contributed by its officer and $1,000 for expenses paid on behalf of the Company.



During the three months ended August 31, 2005, the Company recorded an in-kind contribution of $600 for the value of services contributed by its officer.





6


ARTCRAFT V, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

AS OF AUGUST 31, 2005

(UNAUDITED)








NOTE 4
        RELATED PARTY TRANSACTIONS

A stockholder of the Company paid $16,005 of expenses on behalf of the Company from inception (See Note 2).



During the three months ended August 31, 2005, a stockholder loaned the Company $1,696 for operating expenses (See Note 2).




NOTE 5
        GOING CONCERN

As reflected in the accompanying financial statements, the Company is in the development stage with no operations. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Companys ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.



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





7












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



Plan of Operation



We intend to enter into a business combination with a target company in exchange for cash and/or our securities. As of the initial filing date of this Registration Statement, neither our officer and director nor any affiliate has engaged in any negotiations with any representative of any specific entity regarding the possibility of a business combination with us.



Management anticipates seeking out a target company through solicitation. Such solicitation may include newspaper or magazine advertisements, mailings and other distributions to law firms, accounting firms, investment bankers, financial advisors and similar persons, the use of one or more World Wide Web sites and similar methods. No estimate can be made as to the number of persons who will be contacted or solicited. Management may engage in such solicitation directly or may employ one or more other entities to conduct or assist in such solicitation. Management and its affiliates will pay referral fees to consultants and others who refer target businesses for mergers into public companies in which management and its affiliates have an interest. Payments are made if a business combination occurs, and may consist of cash or a portion of the stock in the Company retained by management and its affiliates, or both.



We have no full time employees. Our president and vice president have agreed to allocate a portion of their time to the activities of the Company, without compensation. Management anticipates that our business plan can be implemented by devoting no more than 10 hours per month to the business affairs of the Company and, consequently, conflicts of interest may arise with respect to the limited time commitment by each officer.



Our Certificate of Incorporation provides that we may indemnify our officers and/or directors for liabilities, which can include liabilities arising under the securities laws. Therefore, our assets could be used or attached to satisfy any liabilities subject to such indemnification.



Results of Operation



We did not have any operating income from inception through August 31, 2005. For the period ended August 31, 2005, expenses were comprised of costs mainly associated with legal and accounting services and general office expenses.



Liquidity and Capital Resources



At August 31, 2005, we had limited capital resources and will rely upon the issuance of common stock and additional capital contributions from shareholders to fund administrative expenses pending acquisition of an operating company.



In May 2005, we completed a Regulation D Rule 506 offering in which we issued a total of 150,000 shares of our common stock to a total of 48 investors at a price per share of $.40 for an aggregate offering price of $60,000. As of August 31, 2005, these amounts have been recorded as a subscription receivable.



Critical Accounting Policies



Our 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 our financial condition and results of operations, Our views certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our 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




(a)
        Evaluation of disclosure controls and procedures.

Our Chief Executive Officer and Chief Financial Officer (collectively the Certifying Officers) maintain a system of disclosure controls and procedures that is designed to provide reasonable assurance that information, which is required to be disclosed, is accumulated and communicated to management timely. Under the supervision and with the participation of management, the Certifying Officers evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule [13a-14(c)/15d-14(c)]under the Exchange Act) within 90 days prior to the filing date of this report. Based upon that evaluation, the Certifying Officers concluded that our disclosure controls and procedures are effective in timely alerting them to material information relative to our company required to be disclosed in our periodic filings with the SEC.




(b)
        Changes in internal controls.

Our Certifying Officer has indicated that there were no significant changes in our internal controls or other factors that could significantly affect such controls subsequent to the date of his evaluation, and there were no such control actions with regard to significant deficiencies and material weaknesses.




PART II - OTHER INFORMATION



Item 1. Legal Proceedings.



The Company is currently not a party to any pending legal proceedings and no such action by, or to the best of its knowledge, against the Company has been threatened.



Item 2. Changes in Securities.



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 August 31, 2005, 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



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




ARTCRAFT V, INC.


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


Dated:
        October 11, 2005