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: June 30, 2002

Or

[ ]                          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: 000-49726

              YELLOWSTONE CORPORATE SERVICES, INC.
           ------------------------------------------
     (Exact name of registrant as specified in its charter)

            Nevada                          88-0491287
       ---------------                   ----------------
(State or other jurisdiction of  (I.R.S. Employer Identification
incorporation or organization)                 No.)

  Suite 1201 Alexandra House,
 16-20 Chater House Road, Hong Kong            N/A
-----------------------------------         -------
(Address of principal executive            (Zip Code)
           offices)

                         (852) 2905-1388
                    -------------------------
       (Registrant's telephone number, including area code)

                               N/A
                           ----------
 (Former name, former address and former fiscal year, if changed
                       since last report)

   Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
  Exchange Act of 1934 during the preceding 12 months (or for such
    shorter period that the registrant was required to file such
 reports), and (2) has been subject to such filing requirements for
                          the past 90 days.
                           Yes [X] No [ ]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING
                      THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents
 and reports required to be filed by Sections 12, 13 or 15(d) of the
  Securities Exchange Act of 1934 subsequent to the distribution of
            securities under a plan confirmed by a court.
                           Yes [ ] No [ ]

                APPLICABLE ONLY TO CORPORATE ISSUERS:
  Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date: 6,219,132



PAGE-1-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                        Report on Form 10-QSB
                          For quarter ended
                            June 30, 2002


                    TABLE OF CONTENTS

                                                             Page

PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements

Condensed Consolidated Balance Sheets - as of June 30,        3
2002 (unaudited) and December 31, 2001 (audited)

Unaudited Condensed Consolidated Statements of Operations     4
- for each of the three and six-month periods ended June
30, 2002 and 2001, and for the period from Inception
(March 14, 2002) to June 30, 2002

Unaudited Condensed Consolidated Statements of Cash Flows     5
- for each of the six-month periods ended June 30, 2002
and 2001, and for the period from Inception (March 14,
2002) to June 30, 2002

Notes to Condensed Consolidated Financial Statements          6

Item 2 - Management's Discussion and Analysis or Plan of      15
Operation

PART II - OTHER INFORMATION

Item 4 - Submission of Matters to a Vote of Security          19
Holders

Item 6 - Exhibits                                             20








PAGE-2-



                   PART I - FINANCIAL INFORMATION

                    Item 1 - Financial Statements

        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
                Condensed Consolidated Balance Sheets
             (Amount expressed in United States dollars)

                                Note    June 30,      December
                                          2002       31, 2001
                                       (Unaudited)
                                       ----------    -----------
                                       $               $
ASSETS
Current assets:
Cash                                   78,126          31,220
Accounts receivable                    10,989          135
Prepayments                            20,808          7,733
Deferred project costs                 ---             46,515
Deferred offering costs         3(b)   ---             45,000
                                       ----------    -----------
Total current assets                   109,923         130,603
Fixed assets:
Office equipment (net of
accumulated
   depreciation of $464 and $32        2,228           733
respectively)
Other assets:
Long-term prepayments           6(a)   7,911           10,811
                                       ----------    -----------
Total assets                           120,062         142,147
                                       ==========    ===========
LIABILITIES, MINORITY  INTEREST
AND
STOCKHOLDERS' EQUITY

Current liabilities:
Clients' deposits                      15,976          10,000
Accounts payable and accrued           4,259           40,348
expenses
Due to a stockholder            5(e)   ---             3,217
                                       ----------    -----------
Total current liabilities              20,235          53,565
                                       ----------    -----------
Minority Interest in                   503             ---
Consolidated Subsidiary                ----------    -----------
Commitments                      6&7
Stockholders' equity:
Preferred  stock, $0.001 par
value, 5,000,000 shares          3(a)
authorized;  no  shares  issued        ---            ---
and outstanding

Common stock, $0.001 par value,
20,000,000 shares authorized;    3(b)
6,219,132 shares and  5,052,632        6,219          5,053
shares  issued and outstanding,
respectively

Additional paid-in capital             146,731         90,967

Deficit   accumulated    during        (53,626)        (7,438)
development stage                      ----------    -----------

Total stockholders' equity              99,324         88,582
                                       ----------    -----------
Total   liabilities,   minority
interest    and   stockholders'        120,062        142,147
equity                                 ==========    ===========


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





PAGE-3-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
      UNAUDITED CONDENSE CONSOLIDATED STATEMENTS OF OPERATIONS
            (Amounts expressed in United States dollars)


                        Note                                   From
                                                             inception
                               Three months     Six months   (March 14,
                              ended June 30,    ended June    2001) to
                                                   30,        June 30,
                              --------------   -------------
                               2002     2001   2002    2001     2002
                              ------   -----   ------  -----  --------
                                $        $      $       ---    $
                                                        ---
Revenue  from  services       9,290      ---   14,024   ---    14,024
provided
Direct cost of services      (2,321)     ---   (5,263)  ---    (5,263)
                              ------   -----   ------  -----  --------
Gross margin                  6,969      ---    8,761   ---     8,761
Other income                    270      ---      675   ---       810
                              ------   -----   ------  -----  --------
                              7,239      ---    9,436   ---     9,571
General and                  (42,489)    ---  (55,624) (550)  (63,197)
administrative expenses       ------   -----   ------  -----  --------
Loss  before cumulative
effect  of  changes  in      (35,250)    ---  (46,188) (550)  (53,626)
accounting principle

Cumulative  effect   on
prior year (to December
31,  2001) of  changing
to  a different revenue
recognition method ,and   4    ---       ---    ---     ---    ---
a   different   expense       ------   -----   ------  -----  --------
recognition method,  on
service           sales
transactions
Loss   from  operations      (35,250)    ---  (46,188) (550)  (53,626)
and net loss                  ======   =====   ======  =====  ========

Amount per common share
Loss  before cumulative
effect  of  changes  in       (0.01)  (0.00)   (0.01) (0.00)   (0.01)
accounting principle
Cumulative  effect   on
prior year (to December
31,  2001) of  changing
to  a different revenue
recognition method ,and   4    ---      ---    ---     ---     ---
a   different   expense       ------   -----   ------  -----  --------
recognition method,  on
service           sales
transactions

Net   loss  per  common       (0.01)  (0.00)   (0.01) (0.00)   (0.01)
share                         ======   =====   ======  =====  ========

Weighted average number
of     common    shares   6,219,132  5,052,632 6,024,715 5,052,632 5,441,465
outstanding               =========  ========= ========= ========= =========

Pro    forma    amounts
assuming    the     new
revenue     recognition
method    and   expense   4
recognition  method  on      (35,250)   ---   (46,188) (550)  (53,626)
service           sales     =========  =====  ======== =====  ========
transactions        are
applied retroactively
      Net loss
        Net  loss   per       (0.01)  (0.00)   (0.01) (0.00)   (0.01)
common share                  ======   =====   ======  =====  ========

   The accompanying notes are an integral part of these financial
                             statements




PAGE-4-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
      UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
            (Amounts expressed in0 United States dollars)


                                                         From
                                                       inception
                                  Six months ended   (March 14, 2001)
                                      June 30,          to June 30,
                                  ----------------
                                   2002      2001        2002
                                  -------  -------    ------------
                                    $        $           $
CASH FLOW FROM OPERATING
ACTIVITIES
Net loss                         (46,188)   (550)       (53,626)

Adjustments to reconcile net
loss to net cash paid
   for operating activities:
Depreciation                         432     ---          464
Decrease/(increase) in
operating assets:
Accounts receivable              (10,854)    ---         (10,989)
Prepayments                      (10,175)    (1,850)     (28,719)
Deferred project costs            46,514     ---
Increase/(decrease) in
operating liabilities:
Clients' deposits                  5,976     ---          15,976
Accounts payable and accrued     (36,089)    ---           4,259
expenses                          -------  -------    ------------
Net cash paid for operating      (50,384)    (2,400)     (72,635)
activities

CASH    FLOW   FROM   INVESTING
ACTIVITIES
Purchases of office equipment     (1,927)    ---         (2,692)

CASH FLOW FROM FINANCING
ACTIVITIES
Net proceeds from issuance of    101,930     51,020      152,950
common stock
Amount due to a stockholder       12,383                 15,599
Repayment of amount due to a     (15,599)    ---         (15,599)
stockholder
Minority interest                   503      ---         503
                                  -------  -------    ------------
Net increase in cash              46,906     48,620      78,126
Cash as of beginning of period    31,220     ---         ---
                                  -------  -------    ------------
Cash as of end of period          78,126     48,620      78,126
                                  =======  =======    ============
Non-cash investing  and
financing activities:

Common stock issued in exchange    ---       45,000      45,000
for corporate consulting and      =======  =======    ============
document preparation services


   The accompanying notes are an integral part of these financial
                             statements





PAGE-5-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
        NOTES TO CONDENSED COPNSOLIDATED FINANCIAL STATEMENTS
            (Amounts expressed in United States dollars)

1           ORGANIZATION AND PRINCIPAL ACTIVITIES

    Yellowstone   Corporate  Services,  Inc.  (the   "Company")   was
    incorporated  in  the  State of Nevada on March  14,  2001.   The
    Company's  major  business objectives are to provide  consulting,
    liaison,  and  coordination services to foreign small  to  medium
    size  companies  to  assist  them  in  becoming  publicly  traded
    companies  in the United States.  Its initial geographical  focus
    includes  Hong  Kong,  the People's Republic  of  China  and  the
    Republic  of  Korea.   After the clients become  publicly  traded
    companies,  the  Company will also provide continuing  consulting
    services  for  compliance  and  reporting  requirements  in   the
    pertinent  jurisdictions.  Additionally, the  Company  will  also
    provide   advisory  services  to  clients  on  general  corporate
    financial matters.


    The  Company  incorporated five companies as stockholders  during
    February  of  2002 to May of 2002. The key information  on  these
    four companies are:-



        Name of company        Place of     Amount of   Percentage
                            incorporation     Share      of Equity
                                             Capital      held by
                                                            the
                                                          Company
    ---------------------------------------------------------------
     Yellowstone (Hong      Hong Kong      $    2 HKD   100.00%
     Kong) Limited

     StoneOne, Inc.         State of       $ 622 USD    100.00%
                            Nevada

     StarLightOne, Inc.     State of       $ 622 USD    100.00%
                            Nevada

     CEP (USA), Inc.        State of       $1,125 USD    55.30%
                            Nevada

     Westpark (Hong  Kong)  Hong Kong      $    2 HKD   100.00%
     Limited

    Yellowstone (Hong Kong) Limited ("YHK") was formed in  Hong  Kong
    to  serve  local  clients  in Hong Kong by  providing  consulting
    services   which  include  maintenance  of  secretarial  records,
    bookkeeping,  preparation of financial  analysis  for  management
    purposes,   and  business  plan  preparation.  YHK  is  currently
    negotiating  with a Hong Kong consulting firm to  become  a  sub-
    contractor  on  consulting services for a fixed  monthly  fee  of
    $10,000 HKD.

    StoneOne,  Inc.  and  StarLightOne,  Inc.  were  formed  with  no
    specific  business objectives other than to seek for  merger  and
    acquisition  opportunities. The Company  is  currently  the  sole
    stockholder  of  both  companies.  The  Company's  Directors  and
    Officers,  Kai  Hon Chan and Ka Yiu Ip, also serve  as  Directors
    and  Officers of StoneOne, Inc. at no compensation. The Company's
    Director  and  President, King Kwok Yu, currently serves  as  the
    sole   Director  and  Officer  of  StarLightOne,   Inc.   at   no
    compensation.  The  Company  anticipates  it  will  experience  a
    change  of control in and management of these two companies  upon
    the  closing  of a merger or acquisition. When any of  these  two
    companies  enters  into  negotiation with merger  or  acquisition
    targets,  the  Company  will  offer its  services  as  a  Project
    Manager  to  these  targets to assist the  merged  entity  attain
    listing on the OTC Bulletin Board after the consummation  of  the
    merger  or  acquisition for a negotiated project management  fee.
    It  is,  however, not a pre-requisite condition for the Company's
    appointment  as  a  Project Manager for  any  one  of  these  two
    companies  to  enter  into  a merger or acquisition  transaction.
    StoneOne,  Inc. filed a Registration Statement on Form 10SB  with
    the  SEC  on  June  17, 2002 on a voluntary  basis  to  become  a
    Reporting Company under the Securities and Exchange Act  of  1934
    (the  "Exchange Act"). The Company engaged the legal firm, Harold
    P.  Gewerter,  Esq., Ltd. to develop this registration  statement
    at  a cost of  $5,000 USD plus 30,000 shares of restricted common
    stock of StoneOne,




PAGE-6-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
        NOTES TO CONDENSED COPNSOLIDATED FINANCIAL STATEMENTS
            (Amounts expressed in United States dollars)


1           ORGANIZATION AND PRINCIPAL ACTIVITIES (cont'd)

    Inc.  The  Company has made a full payment on the cash  component
    of  the  fee. StoneOne, Inc. has not issued any common  stock  to
    the  legal  firm.  After issuance of these common  stock  to  the
    legal firm, the Company's equity interest in StoneOne, Inc.  will
    decrease  from 100% to 99.52%. The Company's total investment  in
    StonOne,  Inc. was $8,292 USD as of June 30, 2002.  StarLightOne,
    Inc.  has  not  taken  any action to become a  Reporting  Company
    under  the  Exchange  Act.  Othe Company's  total  investment  in
    StarLightOne, Inc. was $1,382 USD as of June 30, 2002.  StoneOne,
    Inc.  and  StarLightOne, Inc. have not commenced any  negotiation
    for a merger or an acquisition.

    CEP  (USA),  Inc.  was formed between the Company,  as  a  55.30%
    shareholder,  and  several  individuals  who  collectively   hold
    44.70%  of the equity in the CEP (USA), Inc.. The names of  these
    individual  shareholders and the percentage  of  equity  held  by
    each  of  them are: (a) Guang Xin Wu - 22.35%, (b) Karlson  Po  -
    8.94%,  (c) So Ha Tsang - 8.94%, and (d) Frank Sherman  -  4.47%.
    Karlson  Po,  So  Ha  Tsang,  and  Frank  Sherman  are  Mr.  Wu's
    designees to become shareholders of CEP (USA), Inc.  Mr. Wu is  a
    major  equity  owner  and  the  President  of  Foshan  Hung   Law
    Investment  Planning  Limited  with  which  the  Company  has   a
    Representative  Office and Name-use Right Agreement.  Mr.  Po  is
    the  Company's  employee and the nephew  of  King  Kwok  Yu,  the
    Company's  Director  and  President.  Mr.  Sherman  is  a   major
    shareholder   and  the  President  of  Yellowstone  Incorporating
    Services,  Inc. with which the Company has a Sub-contracting  and
    Name-use  Right  Agreement. Mr. Sherman has  been  the  Company's
    stockholder  since May of 2002, and the Company's  sub-contractor
    for a Korean project since July of 2002. Currently, King Kwok  Yu
    and  Guang  Xin  Wu  are the Directors and Officers  of  the  CEP
    (USA), Inc.

    The  business  objective  of CEP (USA),  Inc.  is  to  develop  a
    distributorship  business  on environmental  protection  products
    and  processes. The Company has an understanding with  Guang  Xin
    Wu and his designees on the followings:

*    The Company would bear the cost of incorporating CEP (USA), Inc.

*    The Company would assist CEP (USA), Inc. in its expenses to
establish a shareholder base comprising of at least 50 shareholders;

*    Guang Xin Wu would secure distributorship on environmental
protection products and processes for CEP (USA) Inc. with his best
effort at no compensation;

*    Karlson Po and So Ha Tsang would perform bookkeeping and
administrative function for CEP (USA), Inc. at no compensation;

*    Frank Sherman would assist CEP (USA), Inc. to deal with matters
in the US at no compensation;

*    Outside financial resources should be secured as and when it is
needed to support CEP (USA), Inc.'s operations; and

*    CEP (USA), Inc. should seek for listing on either the Pink Sheet
or the OTC Bulletin Board as and when it is qualified to do so.




PAGE-7-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
        NOTES TO CONDENSED COPNSOLIDATED FINANCIAL STATEMENTS
            (Amounts expressed in United States dollars)

1           ORGANIZATION AND PRINCIPAL ACTIVITIES (cont'd)

    The  Company  has  appointed  the  legal  firm,  David  Wagner  &
    Associates, P.C., to give it legal advice on the distribution  of
    its  shareholding  in  CEP (USA), Inc. to its  stockholders.  The
    Company's  total investment in CEP (USA), Inc. was $3,382  as  of
    June  30, 2002. Guang Xin Wu has caused Fohan Hung Law Investment
    Planning  Limited,  to  which he is the major  equity  owner  and
    President,  to  grant to CEP (USA), Inc. distributorship  on  two
    environmental  protection  related  products  outside  of  China.
    Foshan  Hung  Law  Investment  Planning  Limited  secured   these
    distributorship rights before CEP (USA), Inc. was formed.  As  of
    June  30,  2002, CEP (USA), Inc. had not commenced  any  business
    activities.

    As  and  when  CEP  (USA),  Inc. has  become  a  publicly  traded
    company,  the  Company plans to obtain a consulting  contract  to
    help   CEP   (USA),   Inc.   fulfill  its   statutory   reporting
    requirements.

    Westpark  (Hong  Kong) Limited was incorporate as  the  Company's
    vehicle to have transactions with WestPark Capital, Inc.  of  the
    United  States.  Westpark  (Hong Kong)  Limited  will  receive  a
    finder's fee at pre-determined rates for the purposes of  finding
    suitable  company  clients for both private and  public  funding,
    identifying  and securing sources of institution, private  equity
    and venture capital on behalf of WestPark Capital, Inc.

2          SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

             (a)        Development Stage Company

         The  Company  has performed services for compensation  since
         January  of  2002  but the revenue earned  to  date  is  not
         consider  as  significant.  As  a  result,  The  Company  is
         considered  a development stage company, as defined  in  the
         Statement of Financial Accounting Standards No.7

    (b)         Use of Estimates

         The  preparation of the financial statements  in  conformity
         with  accounting principles generally accepted in the United
         States of America 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.  Accordingly, actual results could  differ
         from  those estimates.  An estimate was used in valuing  the
         amount  of  shares  to be issued in return for  professional
         services rendered [note 3(b)].  The directors estimate  this
         approximates  the  cost  an independent  professional  would
         charge for these services.

    (c)         Revenue Recognition

         The   Company  previously  had  an  accounting   policy   to
         recognize  project revenues when the projects are completed.
         This  policy  was adopted to apply the Completed Performance
         Method  for  service sales transactions.  During the  second
         quarter  of  2002,  the  Company adopted  a  new  accounting
         policy   to   recognize  project  revenues  based   on   the
         Proportional  Performance Method. This method applies  to  a
         service  transaction involving a specific number of  defined
         but   not   identical  or  similar  acts,  and  the  revenue
         recognized for each act is based on the following formula:

          Direct cost of individual act
          ------------------------------  x   Total revenues from Complete
          Total   estimated  direct           transaction
          costs of the transaction

         Please  refer to note 4 for additional details on the  above
         change in accounting policy.

         Revenue  from  granting name use rights is  recognized  when
         the right to receive payment is established.



PAGE-8-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
        NOTES TO CONDENSED COPNSOLIDATED FINANCIAL STATEMENTS
            (Amounts expressed in United States dollars)


2           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

              (d)       Deferred Project Costs

         The  Company  previously had an accounting policy  to  defer
         expenditures  specifically  identifiable  to  a  project-in-
         progress   until  the  completion  of  the   project.   This
         accounting  policy  was  adopted  in  conjunction  with  the
         Completed    Performance   Method   for   project    revenue
         recognition.   Due  to  the  adoption  of  the  Proportional
         Performance  Method  for recognition of project  revenue  in
         the  second  quarter of 2002, the Company also  changed  its
         accounting policy on the expense recognition for project-in-
         progress.  Under  the  Proportional Performance  Method  for
         recognition  of project revenue, indirect costs relating  to
         the  project  are  required  to be  charged  to  expense  as
         incurred,  initial direct costs are required to  be  charged
         to  expense at the time revenues are recognized, and  direct
         costs  are required to be recognized as expense as incurred.
         (note 4)

             (e)        Fair Value of Financial Instruments

         All  financial  instruments of the Company  are  carried  at
         cost, which approximate their fair values.

    (f)         Fixed Assets

         Fixed assets, consisting of office equipment, are stated  at
         cost,  net  of  accumulated depreciation.   Depreciation  is
         provided  using the straight-line method over the  estimated
         useful life of 2 years.

              (g)      Deferred Offering Costs

         The  Company  defers costs associated with  the  raising  of
         capital  until  such time as the offering is  completed,  at
         which  time  the  costs  are  charged  against  the  capital
         raised.   Should the offering be terminated, the  costs  are
         charged  to  operations during the period when the  offering
         is terminated.

              (h)       Net Loss Per Share

         Basic  net  loss  per share is computed in  accordance  with
         Statement  of  Financial  Accounting  Standards   No.128   "
         Earnings  Per  Share" by dividing net loss by  the  weighted
         average number of shares of common stock outstanding  during
         the period.


3.   STOCKHOLDERS' EQUITY

              (a)       Preferred Stock

         The  Company  is  authorized to issue  5,000,000  shares  of
         preferred  stock with a par value of $0.001 each, with  such
         designations,  voting and other rights  and  preferences  as
         may  be  determined  from  time to  time  by  the  Board  of
         Directors.





PAGE-9-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
        NOTES TO CONDENSED COPNSOLIDATED FINANCIAL STATEMENTS
            (Amounts expressed in United States dollars)



3.   STOCKHOLDERS' EQUITY (cont'd)

              (b)       Common Stock

         The  Company  is  authorized to issue 20,000,000  shares  of
         common  stock with a par value of $0.001 each.  The  Company
         issued  5,052,632 shares on March 28, 2001 for a total  cash
         consideration  of  $51,020  and  for  professional  services
         valued  by  the  Company's Board of  Directors  at  $45,000,
         which  was recorded as deferred offering costs under current
         assets  [note  2(b)] as of December 31,  2001.  In  January,
         2002,  The Company completed a public offering of shares  of
         common  stock in accordance with Regulation D, Rule  504  of
         the   Securities   Act  of  1933,  as   amended,   and   the
         registration by qualification of the offering in  the  State
         of  Nevada.   The  Company sold 1,166,500 shares  of  common
         stock, par value, at a price of $0.10 per share for a  gross
         proceed  of  $116,650 in cash. The cost of this offering  of
         $59,720,  which  included  the  deferred  offering  cost  of
         $45,000, was charged against additional paid-in capital.



4.   CHANGE IN PROJECT REVENUE RECOGNITION METHOD AND PROJECT EXPENSE
     RECOGNITION METHOD

     During  the  second  quarter of 2002,  the  Company  decided  to
     change  the  method  of  recognizing project  revenue  from  the
     Completed  Performance  Method to the  Proportional  Performance
     Method.  In  connection  with  this  change,  the  Company  also
     changed  the method of recognizing project expenses as  required
     under  the  Completed  Performance  Method  to  the  method   of
     recognizing  project expenses as required under the Proportional
     Performance Method. The changes were made to better reflect  the
     effort  of  our  management  in the financial  statements  on  a
     timely  basis.  The operating result for the  first  quarter  of
     2002  had  been  restated to reflect the newly adopted  methods.
     The  retroactive  application of the new methods,  however,  did
     not  result  in  any cumulative effect in the operating  results
     because  the  Company did not carry out any  project  management
     activities,  which  generated revenues during  the  period  from
     March  14,  2001 (date of Incorporation) to December  31,  2001.
     The  effect  of the changes on the three months ended  June  30,
     2002  was  to  decrease net loss by $6,969 ($0.0011 per  share);
     the  effect of the changes on the six months ended June 30, 2002
     was  to decrease net loss by $8,761 ($0.0015 per share). The pro
     forma  amounts reflect the effect of retroactive application  on
     project revenue  and project expenses that would have been  made
     in 2001 had the new methods been in effect.








PAGE-10-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
        NOTES TO CONDENSED COPNSOLIDATED FINANCIAL STATEMENTS
            (Amounts expressed in United States dollars)



4.   CHANGE IN PROJECT REVENUE RECOGNITION METHOD AND PROJECT EXPENSE
     RECOGNITION METHOD (cont'd)

     The  effect  of the changes on the first quarter of 2002  is  as
     follows:

             Loss  before cumulative effect
             of   a  change  in  accounting     (10,938)
             principle

             Cumulative  effect  on   prior
             year (to December 31, 2001) of
             changing    to   a   different
             revenue   recognition   method
             ,and   a   different   expense        ---
             recognition method, on service   --------------
             sales transactions

              Loss from operations and net      (10,938)
                          loss                ==============

             Amount per common share

             Loss  before cumulative effect
             of   a  change  in  accounting     (0.0018)
             principle

             Cumulative  effect  on   prior
             year (to December 31, 2001) of
             changing    to   a   different
             revenue   recognition  method,
             and   a   different   expense         ---
             recognition method, on service  --------------
             sales transactions

             Net loss per common share          (0.0018)
                                             ==============
             Weight average number of          5,830,298
             common shares outstanding       ==============

5             RELATED PARTY TRANSACTIONS

     In  addition  to  the  related party transaction  regarding  CEP
     (USA),  Inc.  as disclosed in note 1, the Company also  has  the
     following related party transactions:

     (a)     The  Company's Board of Directors has adopted a  policy
        to  pay  a  referral  fee  to  its  stockholders,  officers,
        directors,  and employees in the event that the Company  has
        successfully   completed an assignment  as  either  a  Joint
        Project  Manager or a Sole Project Manager as  a  result  of
        receiving a referral from any of these parties The amount of
        referral  fee payable to any of these parties is  determined
        on  a  negotiated basis and is in line with that payable  to
        independent consultants, which has a maximum of 15%  on  the
        Company's project management fee.

    (b) In  September  2001,  through Mr. William  Lam,  the  Company
         secured  an engagement as Joint Project Manager with Jupiter
         Capital  Korea  Limited to assist a Korean based  client  to
         seek  for quotation on the OTC Bulletin Board in the  United
         States  (the  "Korean Project").  The Company has  commenced
         work   on   this  engagement.   Upon  completion   of   this
         engagement,  the  Company will pay a  referral  fee  to  Mr.
         William Lam (note 7). In addition, we secured the right  for
         a  company  owned  by Mr. Lam to acquire  30,000  shares  of
         restricted common stock of the company to be listed for  the
         Korean  Project.   Mr. William Lam and his wife,  Mrs.  Lisa
         Lam,  beneficially  own  700,000  shares  of  the  Company's
         common stock.



PAGE-11-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
        NOTES TO CONDENSED COPNSOLIDATED FINANCIAL STATEMENTS
            (Amounts expressed in United States dollars)


5           RELATED PARTY TRANSACTIONS (Cont'd)

    (c)       In  connection with the Korean Project, the Company has
         engaged  Qu  Corp.,  which is a registered  stockholder  for
         2,052,632  shares of the Company's common stock, to  act  as
         the  Company's coordinator in the United States at a fee  of
         $45,000,  which is included as part of the deferred  project
         costs  under  current assets. In May of  2002,  the  Company
         reached a decision to terminate the services of Qu Corp  for
         the  Korean Project because the Company wished to work  with
         professional  firms which could pay more  attention  to  the
         progress  of the project. Agreement was reached in the  same
         month  with Qu Corp that they should only be compensated  at
         a   cash  payment  of  $10,000  USD  for  the  work  already
         completed   which  included  formation  of  a   new   Nevada
         corporation  and drafting of documents required  under  Rule
         504  of  Regulation D of the Securities Act  of  1933.  This
         payment  was  made in September of 2001 as a prepayment  and
         was recognized as expense in the second quarter of 2002.  In
         May  of 2002, Qu Corp distributed the whole 2,052,632 shares
         to the following persons :-

                                                  As a percent
                    Name             Number of      to total
                                     shares of     Yellowstone
                                    Yellowstone   common stock
                                   common stock     as of May
                                                    26, 2002
             ----------------      -------------  -------------
            Brett Bleazard                 8,500      0.14%
            Nick Pelletiere               18,000      0.29%
            Ron Davis                     27,500      0.44%
            Cheryl Curtis                200,000      3.22%
            Tia  Owen  (President
            and sole owner of  Qu        317,632      5.11%
            Corp)
            Dana Anderson                160,000      2.57%
            Eileen Anderson              105,000      1.69%
            Nicole Anderson               25,000      0.40%
            Eric Anderson                 25,000      0.40%
            Kyle Anderson                 25,000      0.40%
            Destiny Anderson              25,000      0.40%
            Ballycastle                   75,000      1.21%
            Enterprises
            Redmoor     Holdings,         75,000      1.21%
            Ltd.
            Coalition   Partners,         50,000      0.80%
            Inc.
            Omawag, Inc.                  40,000      0.64%
            Steel On Target, Inc.         40,000      0.64%
            Delos Capital Growth,        100,000      1.61%
            LLC
            William R. Cook              100,000      1.61%
            Ray Nance                    257,500      4.14%
            Frank Sherman                121,000      1.95%
            Gary Tovar                    10,000      0.16%
            Jeff Bradley                 247,500      3.98%
                                   -------------  ------------

                    Total              2,052,632     33.01%
                                        ========     =======

         Mr.  Frank  Sherman,  who received  121,000  shares  of  the
         Company's common stock from the above distribution,  is  the
         President of Yellowstone Incorporating Services, Inc.  which
         serves  as  our  representative office in Las Vegas,  Nevada
         (note  6(a)). Mr. Sherman also holds 4.47% of the equity  in
         one of the Company's subsidiary, CEP (USA), Inc. (note 1).



PAGE-12-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
        NOTES TO CONDENSED COPNSOLIDATED FINANCIAL STATEMENTS
            (Amounts expressed in United States dollars)


5          RELATED PARTY TRANSACTIONS (Cont'd)


    (d)       On  October  26,  2001,  the  Company  entered  into  a
         Representative   Office  Agreement  with   Jupiter   Capital
         Limited  ("Jupiter Hong Kong"), which is beneficially  owned
         by   Mr.  William  Lam  and  Mrs.  Lisa  Lam.   Under   this
         agreement,  Jupiter  Hong  Kong provides  the  Company  with
         various kinds of office services in Hong Kong including  but
         not  limited to reception services, mail forwarding and  use
         of  office space upon request at a monthly charge of  $1,181
         per  month.   Since November of 2001, the Company  has  been
         using  about 80 square feet of office space on a  continuous
         and  exclusive basis and common space on a sharing basis  as
         provided  by  Jupiter Capital Limited.  On  July  15,  2001,
         Jupiter  Capital Limited served a one month  notice  to  the
         Company  to  terminate the Representative  Office  Agreement
         with effect on August 15, 2002 because it is relocating  its
         office.  On  July  25,  2002, the  Company  entered  into  a
         Monthly  Rental  Agreement with Jupiter Capital  Limited  to
         rent  480  square feet of space for exclusive use and  2,552
         square  feet of space for common use at a monthly rental  of
         US$3,369. (note 6(c) and note 8).

    (e)  Details of amount due to a stockholder of the Company were as
         follows:

                                         June 30,     December
                                           2002      31, 2001
                                        (Unaudited)
                                        -----------  ---------
                                            $         $

         Mr. King Kwok Yu                  ---        3,217
                                        ===========  =========

         The  amount due as of December 31, 2001 arose from  payments
         made  by  Mr. Yu on behalf of the Company during the  normal
         course  of  business   This  banlance  was  unsecured,  non-
         interest bearing and without pre-determined repayment term.

     (f)  In February of 2002, the Company reached agreement with Supply
       Chain Services, Inc. ("SCS") to buy 618,497 shares of its common
       stock for a total cash consideration of $5,000 USD, after SCS has
       registered  these  shares for distribution  to  the  Company's
       stockholders under the Securities Act of 1933. The Company further
       agreed to introduce a Market Maker to SCS to sponsor it to apply for
       quotation of its common stock on the OTC Bulletin Board after the
       registration of the 618,497 shares of its common stock becomes
       effective. During February of 2002, the Company made a non-refundable
       deposit to SCS which will be applied towards the Company's purchase
       of SCS's common stock, and SCS engaged the legal firm, Harold P.
       Gewerter, Esq., Ltd., to develop documents for registration of the
       shares the Company agreed to purchase. SCS is a Reporting Company
       under the Securities and Exchange Act of 1934, but its common stock
       is not publicly traded. The major business of SCS is to provide
       supply chain management services to US companies buying merchandizes
       from Asia. SCS was introduced to the Company by King Kwok Yu, its
       Director and President. Mr. Yu was a Director of SCS from May of 1999
       to September of  2000, and the Treasurer, Controller and Secretary of
       SCS from May of 1999 to January of 2002. Mr. Yu holds 2,000,000
       shares out of SCS's total issued and outstanding common stock of
       35,533,333 shares. As of June 30, 2002, the documents to register the
       SCS common stock the Company agreed to purchase was still under
       preparation. The Company will not receive any fees from SCS for this
       transaction since it is not providing any consulting services to SCS.




PAGE-13-



        YELLOWSTONE CORPORATE SERVICES, INC. AND SUBSIDIARIES
                    (A DEVELOPMENT STAGE COMPANY)
        NOTES TO CONDENSED COPNSOLIDATED FINANCIAL STATEMENTS
            (Amounts expressed in United States dollars)


6           OPERATING LEASES

    (a)  In November of 2001, the Company entered into a Sub-contracting
         and Name Use Right Agreement with Yellowstone Incorporating Services,
         Inc. ("YIS) which is a Nevada company providing new corporation
         formation and resident agency services. *YIS has to maintain offices
         at its own expenses for business purposes providing the Company a
         business presence in Las Vegas, Nevada; United States. YIS also has
         to provide the Company with mail sorting/forwarding, photocopying and
         facsimile transmitting services The Company has non-exclusive right
         to use the office space occupied by YIS. The total charge under this
         agreement is $17,400 for three years from November 12, 2001 to
         November 11, 2004.  Full payment on the charges, including for the
         non-exclusive use of YIS's office space by the Company, had been made
         of which $7,911 included under long-term prepayments and $5,800
         included under current prepayments ($10,811 and $5,800 as of December
         31, 2001, respectively).

    (b)  In November of 2001, the Company entered into a Representative
         Office and Name-use Right Agreement with Foshan Hung Law Investment
         Planning Limited ("Foshan Hung Law").  Foshan Hung Law has to
         maintain offices at its own expenses for business purposes providing
         the Company a business presence in Foshan, Guangdong, China. Foshan
         Hung   Law  also  has  to  provide  the  Company  with  mail
         sorting/forwarding, photocopying and facsimile transmitting services
         The Company has non-exclusive right to use the office space occupied
         by Foshan Hung Law. This agreement will expire on November 30, 2002.
         Minimum future payments under this agreement in effect were $2,500 as
         of June 30, 2002 and $5,500 as of December 31, 2001.

    (c)  On October 26, 2001, the Company entered into a Representative
         Office Agreement with Jupiter Capital Limited ("Jupiter Hong Kong"),
         which is beneficially owned by Mr. William Lam and Mrs. Lisa Lam.
         Under this agreement, Jupiter Hong Kong provides the Company with
         various kinds of office services in Hong Kong including but not
         limited to reception services, mail forwarding and use of office
         space at a monthly charge of $1,181 per month.  Since November of
         2001, the Company has been using about 80 square feet of office space
         on a continuous and exclusive basis and common space on a sharing
         basis as provided by Jupiter Capital Limited Company. On July 15,
         2001, Jupiter Capital Limited served a one month notice to the
         Company to terminate the agreement with effect on August 15, 2002.
         (note 5(d) and note 8).

    (d)  The company had incurred a total charge of $16,634 for use of
         office space, both on a exclusive basis and non-exclusive basis, and
         for  other office services in relation to the abovementioned
         agreements for the period from March 14, 2001 (date of incorporation)
         to June 30, 2002.

7           COMMITMENTS

    The  Company is committed to pay a referral fee of $4,500 to  Mr.
    William  Lam  if  the  Korean Project is  successfully  completed
    (note 5(b)).

8          SUBSEQUENT EVENTS

    On  July  25,  2002, the Company entered into  a  Monthly  Rental
    Agreement  with Jupiter Capital Limited to rent 480  square  feet
    of  space  for exclusive use and 2,552 square feet of  space  for
    common  use  at  a monthly rental of US$3,369 (note  5(d)).  This
    agreement  will  become  effective on August  16,  2002,  and  is
    terminable by serving a one month notice.





PAGE-14-



                   PART I - FINANCIAL INFORMATION

Item 2 - Management's Discussion and Analysis or Plan of Operation

Forward Looking Statements

     Some  of  the statements contained in this Form 10-QSB that  are
not  historical facts are "forward-looking statements" which  can  be
identified by the use of terminology such as "estimates," "projects,"
"plans,"  "believes,"  "expects," "anticipates,"  "intends,"  or  the
negative  or  other variations, or by discussions  of  strategy  that
involve risks and uncertainties.  We urge you to be cautious  of  the
forward-looking statements, that such statements, which are contained
in  this  Form  10-QSB, reflect our current beliefs with  respect  to
future events and involve known and unknown risks, uncertainties  and
other  factors  affecting  our operations, market  growth,  services,
products  and  licenses.  No assurances can be  given  regarding  the
achievement  of  future  results,  as  actual  results   may   differ
materially  as a result of the risks we face, and actual  events  may
differ from the assumptions underlying the statements that have  been
made regarding anticipated events.

Business overview

     We were incorporated in the State of Nevada on March 14, 2001,
under the name Yellowstone Corporate Services, Inc.

     Our goal is to assist small- and medium-sized foreign businesses
in  accessing  international  capital  markets  through  listings  on
nationally  recognized stock exchanges such as  the  Nasdaq  National
Market,  Nasdaq  Small  Cap,  OTCBBr, Bulletin  Board  ExchangeSM  or
American  Stock Exchange.  We intend to initially offer our  services
to  clients in a focused geographical region, which will include Hong
Kong,  the People's Republic of China and the Republic of Korea.   We
plan  to  facilitate  this goal by acting as  a  Project  Manager  to
provide  consulting,  liaison and coordination  services  to  foreign
companies.   In  addition, after our clients become  publicly  traded
companies,  we will provide them with continuing consulting  services
related  to maintaining compliance with the requirements of pertinent
jurisdictions and regulatory agencies.  Such consulting, liaison  and
coordination services that we intend to provide include  or  address,
without exclusivity, the following:

1.   Organizing and incorporating client companies;
2.   Development and preparation of business and operational plans;
3.   Establishing accounting control systems;
4.   Referring clients to independent accounting firms;
5.   Hiring of independent third-party legal and professional
services firms as our sub-contractor for preparation of documents for
initial listing exercises.
6.   Referring clients to independent third-party legal and other
professional services firms after they become public traded
companies;
7.   Acting as the intermediary for the flow of information and
documentation between clients and professional services firms; and
8.   Other general advisory services, as required or requested by
clients.

     We  do  not  have  pre-arranged agreements with any  independent
third-party  accounting, legal or other professional  services  firms
for  the  provision of services to our clients. We will select  these
professionals  and recommend them to our clients  when  we  start  an
assignment.    Our   clients  are  not  obligated   to   follow   our
recommendations, and have the freedom to decide whether to accept  or
reject  our recommendations.  For initial listing exercises, after  a
selection is made, we will hire directly legal and other professional
services  firms  as  our  sub-contractors to  prepare  the  necessary
listing  documents because the charges for documents preparation  are
included  in  our project management fees.  After becoming  publicly-
traded  companies,  our clients will have to appoint  the  legal  and
other  professional  services  firm  directly  for  their  continuing
services.   Under  all circumstances, our clients  have  to  directly
appoint  accounting firms as their principal certifying  accountants.
Since  inception, we have not received any compensation for referring
our  clients  to  accounting,  legal  firms  and  other  professional
services  firms.   We have adopted a policy not to  receive  referral
fees from accounting firms and legal firms.

     In  September  of 2001, we and Jupiter Capital  Korea  Co.  Ltd.
collectively  entered into a contract as Joint  Project  Managers  to
assist  an  operating Korean corporation attain listing  on  the  OTC
Bulletin  Boardr in the United States of America.  Up to December  of
2001,  we  only  concentrated on familiarizing  ourselves  with  this
client  and  did  not render any service. Our work  on  this  project
commenced  in  January 2002. As of June 30, 2002,  this  project  was
still in progress.



PAGE-15-



     In  June  of 2002, we and Jupiter Korea secured another contract
as Joint Project Managers to assist another Korean corporation attain
listing  on  the  OTC  Bulletin Boardr.  We  have  not  received  our
required cash deposit from our client.  We will not commence any work
on  this  project until we are paid with a cash deposit.   We  cannot
give assurance that we will receive this cash deposit.

     Other than on the Korean Project, we did not provide any revenue
generating services for the period from inception to June 30, 2002.

     In  July  of  2002, we provided consulting services through  our
wholly   owned  subsidiary,  Yellowstone  (Hong  Kong)  Limited,   in
assisting a Hong Kong consulting firm to prepare a business plan  for
its client.

     We  consider our company as a Development Stage Company  because
we   have  not  generated  significant  revenue  from  our  principal
business.

Results of operations

Revenue  from  services provided, direct cost of services  and  gross
    margin

    Our  revenue  from  services provided was $9,290  for  the  three
months ended June 30, 2002.  This revenue was generated from the work
we  had performed on the Korean Project.  Our direct cost of services
was   $2,321  for  the  three  months  ended  June  30,  2002,  which
represented  the  direct costs incurred on the Korean  Project.   The
gross margin for the three months ended June 30, 2002, at $6,969, was
75%  of our revenue from services.  We did not have any revenue  from
services provided, direct cost of services and gross margin  for  the
three  months  ended June 30, 2001 because we did  not  rendered  any
service during this period.

    For  the six months ended June 30, 2002, we generated $14,024  in
revenues from services provided.  This revenue was generated from the
work  we  had  performed on the Korean Project.  Our direct  cost  of
services  was  $5,263 for the six months ended June 30,  2002,  which
represented  the  direct costs incurred on the Korean  Project.   The
resulting  gross margin for the six months ended June  30,  2002  was
$8,761,  or  62% of our revenue from services.  We did not  have  any
revenue  from  services provided, direct cost of services  and  gross
margin  for  the six months ended June 30, 2001 because  we  did  not
rendered any service during this period.

    During  the period from our inception on March 14, 2001  to  June
30,  2002  we  generated revenues from services provided of  $14,024.
This  revenue  was  generated from the work we had performed  on  the
Korean  Project.   Our direct cost of services  was  $5,263  for  the
period  from  March 14, 2001 to June 30, 2002, which represented  the
direct  costs incurred on the Korean Project.  The gross  margin  for
the period from inception to June 30, 2002, at $8,761, was 62% of our
revenue from services.

Other income

    We  had other income of $270 for the three months ended June  30,
2002.  This was attributable to the name-use right fee paid to us  by
Yellowstone  Incorporating Services, Inc.  There was no other  income
for  the  three  months  ended  June  30,  2001  because  Yellowstone
Incorporating Services, Inc. was not in existence then.

    For  the  six months ended June 30, 2002 we had other  income  of
$675.   This was generated from the name-use right fee payable to  us
by  Yellowstone Incorporating Services, Inc. for its right to include
Yellowstone  in its company name, and its right to claim  to  be  our
affiliate  when it conducts business.  There was no other income  for
the  six months ended June 30, 2001 because Yellowstone Incorporating
Services, Inc. was not in existence at that time.

    We  had  other income of $810 for the period from our  inception,
March  14,  2001, to June 30, 2002.  This was attributable solely  to
the  name-use  right  fee payable to us by Yellowstone  Incorporating
Services,  Inc. for its right to include Yellowstone in  its  company
name,  and  its right to claim to be our affiliate when  it  conducts
business.

General and administrative expenses

    General  and administrative expenses totaled to $42,489  for  the
three months ended June 30, 2002.  For the six months ended June  30,
2002,  general  and administrative expenses totaled to  $55,624.   In
addition,  G&A  expenses totaled to $63,197 for the period  from  our
inception  on March 14, 2001 to June 30, 2002.  The most  significant
item  included  in the G&A expenses we have incurred was  $10,000  of
charges  we  paid  to  Qu Corp for sub-contract  work  on  the  Koran
Project.  We contracted Qu Corp to perform certain services including
document preparation for the Korean Project in September of 2001.  We
terminated  all our contracts with Qu Corp for the Korean Project  in
May  of  2002.   Qu  Corp  agreed with us  that  it  should  only  be
compensated  for  work  already performed for $10,000,  and  that  we
should  be  released from any further liabilities under all contracts
we  entered  with  it for the Korean Project.  We only  incurred  G&A
expenses  of  $550  for  the six months ended June  30,  2001,  which
represented the cost of incorporation of our company.



PAGE-16-



    Other items included in the G&A expenses were as follows:

                          Three Months   Six Months Ended   From March 14,
                             Ended                             2001 to
      Expense            June 30, 2002   June 30, 2002      June 30, 2002
  ---------------        -------------   -------------      -------------
Audit fees                   $2,035          $2,035         $4,035
Legal fees                   $3,000          $3,000         $3,000
Salaries                     $7,419          $7,419         $7,419
SEC filing expenses          $5,852          $5,852         $5,852
Fees  for representative     $6,492         $12,984         $16,634
offices(1)
Traveling expense            $2,898          $5,942         $6,113
Stock transfer agent fees     $966            $966           $966
Web site expense                -              -            $1,101
Incorporation Expenses          -            $3,655         $4,205
Office and other expenses    $3,827          $3,771         $3,872

Footnote:

  (1)   Includes exclusive and non-exclusive use of office spaces  in
     Hong Kong, China, and Las Vegas.

Loss before cumulative effect on prior year, to December 31, 2001, of
    changes in accounting principle

    Our  loss  before cumulative effect on prior year ended  December
31,  2001  of  changes in accounting principles was $35,250  for  the
three months ended June 30, 2002.  For the six months ended June  30,
2002,  our  loss before cumulative effect on the year ended  2001  of
changes in accounting principles was $46,188.  Since our formation on
March 14, 2001 to June 30, 2002, our loss before cumulative effect on
the  year ended December 31, 2001 of changes in accounting principles
was  $53,626.   We incurred these losses because we did not  generate
sufficient revenue for services provided to cover all our  costs  and
expenses.

    There  was no profit or loss for the three months ended June  30,
2001  because we did not generate revenue and/or incur any  cost  and
expense during this period.  The loss before cumulative effect on the
year  ended December 31, 2001 due to changes in accounting principles
was  $550 for the six months ended June 30, 2001, because we did  not
generate  revenue, but we incurred $550 of incorporation expense  for
incorporating our company.

Cumulative effect on the year ended December 31, 2001 due to changing
to  a  different revenue recognition method, and a different  expense
recognition on service sales transactions

    During  the  second  quarter of 2002, we decided  to  change  the
method  of recognizing project revenue from the Completed Performance
Method  to  the Proportional Performance Method.  In connection  with
this  change,  we  also  changed the method  of  recognizing  project
expenses  as required under the Completed Performance Method  to  the
method  of  recognizing  project  expenses  as  required  under   the
Proportional Performance Method.  Please see note 4 to the  unaudited
financial  statements for the three months and six months ended  June
30,  2002.  The changes were made to better reflect the effort of our
management  in  the  financial statements on  a  timely  basis.   The
cumulative effect on the year ended December 31, 2001, resulting from
these  changes for the three and six months ended June 30,  2002  and
2001 were both zero.  Additionally, the cumulative effect on the year
ended  December 31, 2001 resulting from these changes for the  period
from  March 14, 2001, the date of our incorporation, to June 30, 2002
was zero.

Liquidity and Capital Resources

Cash

    We  had a net increase of $46,906 in our cash position during the
six  months  ended  June 30, 2002 as compared to a  net  increase  of
$48,620  during  the  six  months ended June  30,  2001.   Since  our
inception  on March 14, 2001 to June 30, 2002, our net cash  position
increased by $78,126.



PAGE-17-



Net cash paid for operating activities

    We  used  $50,384 of cash for operating activities  for  the  six
months  ended June 30, 2002 as compared to $2,400 for the six  months
ended  June  30,  2001.   The  amount  of  cash  used  for  operating
activities during the period from our inception to June 30, 2002  was
$72,635.

Cash flow from investing activities

    We  purchased office equipment with cash in the amount of  $1,927
during the six months ended June 30, 2002.  We did not spend any cash
on  investing  activities,  including purchase  of  office  equipment
during the six months end June 30, 2001.  Our total cash purchase  of
office equipment was $2,692 for the period from inception (March  14,
2001) to June 30, 2002.

Cash flow from financing activities

    We  received  net  cash  proceeds of $101,930  from  issuance  of
1,166,500  shares  of  our common stock and cash  of  $503  from  the
minority stockholders of one of our subsidiaries, CEP (USA), Inc. for
their  equity investment in this company during the six months  ended
June  30, 2002.  During this period, one of our stockholders advanced
cash of $12,383 to us to pay for our expenditures incurred during the
normal course of business.  During this period, we fully repaid  this
amount  and  $3,216 of amount due to this stockholder outstanding  at
the beginning of this period.

    We  received cash proceeds of $51,020 from issuance of  3,000,000
shares of our common stock during the six months ended June 30, 2001.
There were no other financing activities in this period.

    From  March 14, 2001 to June 30, 2002, we raised cash of $152,950
from issuance of a total of 4,166,500 shares of our common stock, and
received  cash of $503 from the minority stockholders of one  of  our
subsidiaries,  CEP  (USA), Inc. for their equity investment  in  this
company.   During this period, one of our stockholders advanced  cash
of  $15,599  to  us to pay for our expenditures incurred  during  the
normal  course  of business.  We fully repaid this  amount  prior  to
June 30, 2002

Cash needs for the next 12 months

     As  of  June 30, 2002, we had $78,126 of cash.  This  amount  of
cash  will  not  be sufficient to cover our cash needs for  operating
activities  before  accounting for revenues, which  is  estimated  at
approximately  $220,000,  and investing activities  of  approximately
$4,500, which are for the purchase of equipment and furniture, in the
next  12  months.  In order to meet our estimated cash needs,  during
this period, we need to accomplish all of the following:

     1.   Completion of the Korean Project currently in progress;

     2.   Commencement upon receipt of the required cash deposit from
       client, and completion of the project we were contracted for in June
       of 2002 to assist another Korean corporation attain listing on the
       OTCBB;

     3.   Our wholly owned subsidiary, Yellowstone (Hong Kong) Limited, is
       successfully in securing the contract currently under negotiation
       with a Hong Kong consulting firm to become a sub-contractor on
       consulting services for a fixed monthly fee of HK$10,000; and

     4.   Securing and completion of an additional assignment which will
       generate cash revenue to us of at least $30,000.

    We  cannot give assurance that we can accomplish all of the above
four  tasks  to  generate the cash we need for the  next  12  months.
There  will  be a shortfall in our cash if we fail to accomplish  any
one  of these four tasks.  We may need to obtain additional financing
in  the  event  that we are unable to realize sufficient  revenue  or
collect accounts receivable.  Furthermore, our ability to satisfy the
redemption of future debt obligations that we may enter into will  be
primarily   dependent  upon  the  future  financial   and   operating
performance  of  our  Company.  Such performance  is  dependent  upon
financial, business and other general economic factors, many of which
are beyond our control.  If we are unable to generate sufficient cash
flow  to meet our future debt service obligations or provide adequate
long-term liquidity, we will have to pursue one or more alternatives,
such  as reducing or delaying capital expenditures, refinancing debt,
selling assets or operations or raising equity capital.  There can be
no   assurance   that  such  alternatives  can  be  accomplished   on
satisfactory terms, if at all, or in a timely manner.  If we  do  not
have  sufficient cash resources when needed, we will not be  able  to
continue our operations as a going concern.



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    Our priorities for the next 12 months of operations are:

     1.   Completion of the Korean Project currently in progress - The
       registration statement for this project to be filed with the SEC is
       presently under development.  We cannot give assurance that this
       project can be complete within the next 12 months.

     2.   Commencement and completion of the project we were contracted
       for in June of 2002 to assist another Korean corporation attain
       listing on the OTCBB.  We have not received our required cash deposit
       from our client.  We will not commence any work on this project until
       we are paid with a cash deposit.  We cannot give assurance that we
       will ever commence work on this project, or if we start work, we can
       complete this project within the next 12 months.

     3.   Assisting our wholly owned subsidiary, Yellowstone (Hong Kong)
       Limited,  to successfully secure the contract currently  under
       negotiation with a Hong Kong consulting firm to become a  sub-
       contractor on consulting services for a fixed monthly  fee  of
       HK$10,000; and

     4.   Secure and completion of an additional assignment which will
       generate cash revenue to us of at least $30,000

     5.   Organizing seminars to educate potential clients - Most people
       in Asia recognize the importance of American capital markets in terms
       of stability and liquidity.  Unfortunately, these same people are not
       familiar with (a) the procedure to access US markets, (b)  the
       responsibilities of a fully reporting company registered with the
       United  States Securities and Exchange Commission and (c)  the
       regulations and laws governing the raising of capital in the US.  We
       plan to organize seminars to educate potential clients about the
       risks, benefits and responsibilities related to raising capital and
       being listed on an exchange in the United States.  No seminars have
       been organized or planned as of yet.  We target to host our first
       seminar during the last quarter of 2002.  Thereafter, we plan to have
       one seminar in each quarter.  We will start the seminars on a small
       scale with a targeted number of five to ten attendants per seminar.
       The attendants will be invited to come to our seminars free of
       charge.  We estimate that the cost for each seminar is approximately
       $1,000.

     6.   Developing our network of contacts - We are a service oriented
       company and our assignments involve the participation of qualified
       professionals.  Our network of contacts to provide these services
       consists of two groups: (1) professional firms such as law firms,
       accountants, broker/dealers and transfer agents, which are required
       for publicly-traded companies; and (2) corporate finance houses,
       individual professionals and friends and family.  The first group of
       professionals will assist our clients with the process of becoming
       fully reporting and publicly-traded.  The second group will be relied
       upon to offer referrals and to generate word of mouth advertising.
       We are developing our network of contacts through introduction of
       contacts by the friends and past business associates of our directors
       and officers.  We also receive leads of contacts through referrals
       from organizations having a working relationship with us such as
       Westpark Capital, Inc. and Yellowstone Incorporating Services, Inc.
       We do pay any introduction or referral fees to any parties for
       introducing contacts to us.

     7.   Raising of equity capital for cash.



PAGE-19-



                     PART II - OTHER INFORMATION

Item 4 - Submission of Matters to a Vote of Security Holder

     We held an annual meeting of the stockholders held at 2980 South
Rainbow Blvd., Las Vegas, State of Nevada, United States, on May  31,
2002  at  2:30p.m.   During the meeting, the following  matters  were
submitted to voting of our common stock holders:

  1.   Appointment of the following persons as our directors for until
     our next Annual Stockholders' Meeting:

       a.   King Kwok Yu;
       b.   Kai Hon Chan; and
       c.   Ka Yiu Ip

  2.   Appointment of Areson & Co. as our auditors for the year ending
     December 31, 2002.

     The  quorum for the meeting as required in the Company's By-laws
was  met.   The result of the voting on each of the matters submitted
to voting during the meeting were:

                                                     Number of votes (A)
             Matters submitted to voting            For   Against  Abstain
   -------------------------------------------     -----  -------  -------

   1. Appointment of King Kwok Yu as director       All    None     None
      of the Company for Year 2002

   2. Appointment of Kai Hon Chan as director       All    None     None
      of the Company for Year 2002

   3. Appointment of Ka Yiu Ip as director of       All    None     None
      the Company for Year 2002

   4. Appointment  of Areson & Co. as auditors      All    None     None
      of the Company for the year ending
      December 31, 2002

   (A)   Each  share  of common stock of the Company held  represents
   one vote.

     As a result of the voting, it was resolved that:

  1.   The following persons were appointed as our directors for until
     next Annual Stockholders' Meeting:

       a.   King Kwok Yu;
       b.   Kai Hon Chan; and
       c.   Ka Yiu Ip

  2.   Areson & Co. was appointed as our auditors for the year ending
     December 31, 2002.

Item 6 - Exhibits

Exhibit Name and/or Identification of Exhibit
Number

3      Articles of Incorporation & By-Laws
         a.   Articles  of Incorporation of the Company filed  March
              13, 2001*
         b.  By-Laws of the Company adopted March 28, 2001*

99     Certification  under Section 906 of the Sarbanes-Oxley  Act
       (18 U.S.C. Section 1350)

*   Incorporated by reference to the exhibits to our General Form For
Registration  Of  Securities Of Small Business Issuers  on  Form  10-
SB12G, previously filed with the Commission.



PAGE-20-



                             SIGNATURES

     Pursuant  to  the requirements of Section 12 of  the  Securities
Exchange   Act  of  1934,  the  registrant  has  duly   caused   this
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized.

              YELLOWSTONE CORPORATE SERVICES, INC.
                          (Registrant)

By: /s/ King Kwok Yu
-----------------------
King Kwok Yu, President

     In  accordance  with the requirements of the Securities  Act  of
1933, this Registration Statement was signed by the following persons
in the capacities and on the dates stated:


     Signature               Title                  Date
     ---------               -----                  ----

  /s/ King Kwok Yu    President & Director     August 13, 2002
  ----------------
    King Kwok Yu

/s/ Roy Kai Hon Chan    COO and Director       August 13, 2002
--------------------
  Roy Kai Hon Chan

   /s/ Ka Yiu Ip        CFO and Director       August 13, 2002
   -------------
     Ka Yiu Ip














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