UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-QSB





[xx]

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2003



Commission file Number:  0-50489



FIDELITY CAPITAL CONCEPTS LIMITED

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



Nevada

(State or other jurisdiction of incorporation or organization)



98-0222930

(I.R.S. Employer Identification Number)



Suite 1000, 409 Granville Street

Vancouver, B.C., V6C 1T2     Canada

(Address of principal executive offices)



(604)681-9588

(Issuer's telephone number)





State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:    
5,400,000 common shares as at December 31, 2003





Transitional Small Business Disclosure Format (check one):  Yes [  ]    No [ X ]









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FIDELITY CAPITAL CONCEPTS LIMITED





INDEX



PART 1.

FINANCIAL INFORMATION



Item 1.

Financial Statements



Balance Sheets as of December 31, 2003



Statements of Operations for the three months

ended December 31, 2003



Statements of Stockholders' Equity



Statements of Cash Flows for the period ended

December 31, 2003



Notes to Financial Statements



Item 2

Plan of Operation



Item 3

Controls and Procedures



PART II.

OTHER INFORMATION



Item 1

Legal Proceedings



Item 2

Changes in Securities and Use of Proceeds



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 8K





SIGNATURES





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ITEM 1.

FINANCIAL INFORMATION



Part I

Financial Statements











FIDELITY
CAPITAL CONCEPTS LIMITED

(A
development stage company)



Consolidated
Financial Statements

(Expressed
in U.S. Dollars)



December
31, 2003

(Unaudited
- Prepared by Management)







Index



Consolidated
Balance Sheets



Consolidated
Statements of Stockholders' Equity (Deficit)



Consolidated
Statements of Operations



Consolidated
Statements of Cash Flows



Notes
to Consolidated Financial Statements

























---

FIDELITY CAPITAL
CONCEPTS LIMITED

(A development stage
company)



Consolidated Balance
Sheets

(Expressed in U.S.
Dollars)

(Unaudited - Prepared
by Management)

|                                                       | December
      31 |         | September
      30 |  
|------------------------------------------------------ | ----------------- | ------- | ------------------ | -
|                                                       | 2003              |         | 2003               |  
|ASSETS                                                 |                   |         |                    |  
|                                                       |                   |         |                    |  
|Current assets                                         |                   |         |                    |  
|Cash                                                   | $                 | 113,885 |                    | $
|Accounts receivable                                    |                   | 11,239  |                    |  
|Inventory                                              |                   | 35,967  |                    |  
|                                                       |                   |         |                    |  
|                                                       |                   | 161,091 |                    |  
|                                                       |                   |         |                    |  
|Equipment                                              |                   | 1,575   |                    |  
|                                                       |                   |         |                    |  
|Total Assets                                           | $                 | 162,666 |                    | $
|                                                       |                   |         |                    |  
|LIABILITIES AND STOCKHOLDERS'
      EQUITY             |                   |         |                    |  
|                                                       |                   |         |                    |  
|Liabilities                                            |                   |         |                    |  
|                                                       |                   |         |                    |  
|Current liabilities                                    |                   |         |                    |  
|Accounts payable and accrued
      liabilities         | $                 | 3,348   |                    | $
|Due to related party (note 2)                          |                   | 36,367  |                    |  
|                                                       |                   |         |                    |  
|Total
      Liabilities                                |                   | 39,715  |                    |  
|                                                       |                   |         |                   
|                                                       |                   |         |                    |  
|Stockholders' Equity                                   |                   |         |                    |  
|                                                       |                   |         |                    |  
|Capital stock                                          |                   |         |                    |  
|Authorized:                                            |                   |         |                    |  
|100,000,000 common shares with a par value of $0.001   |                   |         |                    |  
|Issued:                                                |                   | 5,400   |                    |  
|5,400,000 common shares                                |                   |         |                    |  
|Additional paid-in capital                             |                   | 118,899 |                    |  
|                                                       |                   |         |                    |  
|Accumulated other
      comprehensive income           |                   | 717     |                    |  
|                                                       |                   |         |                    |  
|Deficit
      accumulated during the development stage |                   | (2,065) |                    |  
|                                                       |                   |         |                    |  
|Total
      Stockholders' Equity                       |                   | 122,951 |                    |  
|                                                       |                   |         |                    |  
|Total Liabilities and Stockholders'
      Equity       | $                 | 162,666 |                    | $

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

---

FIDELITY CAPITAL
CONCEPTS LIMITED

(A development stage
company)



Consolidated
Statements of Shareholders' Equity

Period from Inception
(April 25, 2003) to December 31, 2003

(Expressed in U.S.
Dollars)

(Unaudited - Prepared
by Management)





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

---

FIDELITY CAPITAL
CONCEPTS LIMITED

(A development stage
company)



Consolidated
Statements of Operations

(Expressed in U.S.
Dollars)

(Unaudited - Prepared
by Management)

|                                            | Cumulative           |         |                   |       |                    |                      |          |          
|------------------------------------------- | -------------------- | ------- | ----------------- | ----- | ------------------ | -------------------- | -------- | ---------
|                                            | from
      April 25  |         |                   | Three |                    |                      | April 25 |          
|                                            |                      | 2003    |                   |       | Months             |                      |          | 2003     
|                                            | (inception)
      to |         |                   | Ended |                    | (inception)
      to |         
|                                            | December
      31    |         | December
      31 |       | September
      30 |                     
|                                            |                      | 2003    |                   | 2003  |                    |                      | 2003     |          
|                                            |                      |         |                   |       |                    |                      |          |          
|Sales                                       | $                    | 54,663  |                   | $     | 28,972             |                      | $        | 25,691   
|                                            |                      |         |                   |       |                    |                      |          |          
|Cost
      of sales                         |                      | 27,535  |                   |       | 13,867             |                      |          | 13,668   
|                                            |                      |         |                   |       |                    |                      |          |          
|Gross
      profit                          |                      | 27,128  |                   |       | 15,105             |                      |          | 12,023   
|                                            |                      |         |                   |       |                    |                      |          |          
|Expenses                                    |                      |         |                   |       |                    |                      |          |          
|Advertising and
      promotion             |                      | 6,247   |                   |       | 4,287              |                      |          | 1,960    
|Amortization                                |                      | 415     |                   |       | 126                |                      |          | 289      
|Automotive                                  |                      | 2,787   |                   |       | 1,669              |                      |          | 1,118    
|Imputed
      interest expense              |                      | 1,545   |                   |       | 545                |                      |          | 1,000    
|Interest
      expense and bank charges     |                      | 607     |                   |       | 607                |                      |          | -        
|Management fee                              |                      | 1,520   |                   |       | 1,520              |                      |          | -        
|Office and
      miscellaneous              |                      | 2,784   |                   |       | 2,185              |                      |          | 599      
|Professional
      fees                     |                      | 3,379   |                   |       | 247                |                      |          | 3,132    
|Rent                                        |                      | 1,082   |                   |       | 1,082              |                      |          | -        
|Repairs &
      Maintenance                 |                      | 194     |                   |       | 194                |                      |          | -        
|Sales
      commissions                     |                      | 2,928   |                   |       | 2,928              |                      |          | -        
|Utilities                                   |                      | 1,582   |                   |       | 1,135              |                      |          | 447      
|Website
      design                        |                      | 4,123   |                   |       | 847                |                      |          | 3,276    
|                                            |                      |         |                   |       |                    |                      |          |          
|                                            |                      | 29,193  |                   |       | 17,372             |                      |          | 11,821   
|                                            |                      |         |                   |       |                    |                      |          |          
|Net
      income (loss) for the period      | $                    | (2,065) |                   | $     | (2,267)            |                      | $        | 202      
|                                            |                      |         |                   |       |                    |                      |          |          
|Earnings
      per share- basic and diluted |                      |         |                   | $     | 0.00               |                      | $        | 0.00     
|Weighted average number of                  |                      |         |                   |       |                    |                      |          |          
|shares
      outstanding- basic and diluted |                      |         |                   |       | 5,400,000          |                      |          | 4,710,548

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

---

FIDELITY CAPITAL
CONCEPTS LIMITED

(A development stage
company)



Consolidated
Statements of Cash Flows

(Expressed in U.S.
Dollars)

(Unaudited - Prepared
by Management)

|                                                    | Cumulative     |          |             |       |              |                |          |         
|--------------------------------------------------- | -------------- | -------- | ----------- | ----- | ------------ | -------------- | -------- | --------
|                                                    | from April 25  |          |             | Three |              |                | April 25 |         
|                                                    |                | 2003     |             |       | Months       |                |          | 2003    
|                                                    | (inception) to |          |             | Ended |              | (inception) to |         
|                                                    | December 31    |          | December 31 |       | September 30 |               
|                                                    |                | 2003     |             | 2003  |              |                | 2003     |         
|                                                    |                |          |             |       |              |                |          |         
|Cash flow from (used in) operating
      activities |                |          |             |       |              |                |          |         
|Net income (loss) for the
      period              | $              | (2,065)  |             | $     | (2,267)      |                | $        | 202     
|Adjustment for items not
      involving cash:      |                |          |             |       |              |                |          |         
|- amortization                                      |                | 415      |             |       | 126          |                |          | 289     
|- imputed interest expense                          |                | 1,545    |             |       | 545          |                |          | 1,000   
|Change in non-cash working
      capital items:     |                |          |             |       |              |                |          |         
|- decrease (increase) in
      accounts receivable  |                | (11,239) |             |       | 7,617        |                |          | (18,856)
|- increase in inventory                             |                | (35,967) |             |       | (19,511)     |                |          | (16,456)
|- increase (decrease) in
      accounts payable and |                |          |             |       |              |                |          |         
|accrued
      liabilities                           |                | 3,348    |             |       | (5,411)      |                |          | 8,759   
|- net effect of the
      acquisition of            |                |          |             |       |              |                |          |         
|Fidelity
      Capital Concepts Limited             |                | (2,346)  |             |       | -            |                |          | (2,346) 
|                                                    |                |          |             |       |              |                |          |         
|                                                    |                | (46,309) |             |       | (18,901)     |                |          | (27,408)
|                                                    |                |          |             |       |              |                |          |         
|Cash flows (used in) investing activities           |                |          |             |       |              |                |          |         
|Purchase
      of equipment                         |                | (1,925)  |             |       | -            |                |          | (1,925) 
|                                                    |                |          |             |       |              |                |          |         
|Cash flow from financing activities                 |                |          |             |       |              |                |          |         
|Increase in due to related
      party              |                | 36,467   |             |       | 7,690        |                |          | 28,777  
|Proceeds
      from share issuance                  |                | 125,000  |             |       | -            |                |          | 125,000 
|                                                    |                |          |             |       |              |                |          |         
|                                                    |                | 161,467  |             |       | 7,690        |                |          | 153,777 
|                                                    |                |          |             |       |              |                |          |         
|Effect of exchange rate changes                     |                | 652      |             |       | 572          |                |          | 80      
|                                                    |                |          |             |       |              |                |          |         
|Change in cash position during the period           |                | 113,233  |             |       | (11,211)     |                |          | 124,444 
|                                                    |                |          |             |       |              |                |          |         
|Cash
      position,beginning of period             |                | -        |             |       | 124,524      |                |          | -       
|Cash
      position,end of period                   | $              | 113,885  |             | $     | 113,885      |                | $        | 124,524 

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

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FIDELITY CAPITAL
CONCEPTS LIMITED

(A development stage
company)



Notes to Consolidated
Financial Statements December 31, 2003

(Expressed in U.S.
Dollars)

(Unaudited - Prepared by Management)



1.                
Basis of Presentation

The accompanying unaudited interim consolidated balance
sheets, statement of operations and cash flows reflected all adjustments,
consisting of normal recurring adjustments and other adjustments, that are, in
the opinion of management, necessary for a fair presentation of the financial
position of the Company, at December 31, 2003, and the results of operations and
cash flows for the interim periods ended December 31, 2003. The accompanying
unaudited consolidated financial statements have been prepared in accordance
with the instruction from Form 10-QSB pursuant to the rules and regulations of
Securities and Exchange Commission and, therefore, do not include all
information and notes normally provided in audited financial statements and
should be read in conjunction with the company's consolidated financial
statements for the fiscal period ended September 30, 2003 included in the annual
report previously filed on Form 10-KSB. The result of operations for the interim
periods presented are not necessarily indicative of the results to be expected
for the full year.



|2. | Related Party Transactions
|-- | --------------------------
|   | (a)                       
|   | (b)                       



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Item 2 - Plan of Operation



We currently hold working capital of approximately $120,000 which will be sufficient to fund the continuing operations and expansion of our silk garment sales division and possible additional acquisitions.  The funds which we have on hand are also sufficient to pay the expenses associated with our reporting company obligations including increased accounting and legal fees.



Management does not anticipate the need to conduct any product research and development with respect to our silk garment sales division over the next 12 months.  Management does not anticipate the purchase or sale of any significant equipment or significant changes in the number of the company's employees over the next 12 months.  Currently, we maintain sufficient office and warehouse space to accommodate up to a 100% increase in our projected sales over the next 24 months.  Contract employees may be hired during peak retail sales periods to assist in receiving orders and processing shipments.  One of the principal advantages to running wholesale and retail silk garment sales through the internet and via mail order is the ability to maintain low warehousing and payroll expenses.



The following is a discussion of our general plan of operation for the next 12 months.  This plan of operation will be implemented by our Vice-President of Operations and Product Development and is based on her prior experience in internet and mail order wholesale and retail silk garment sales.



There are two primary target groups for KAS products; wholesale customers and retail/internet customers.

Wholesale customers may include some of the following:

- Lingerie stores
    - full product line
- Sporting Goods stores
    - turtlenecks, long leggings for wear under winter sports clothing for children and adults
- Motorcycle stores
    - for wear under leather garments
- Movie Industry supply stores
    - undergarments for industry (set personnel)



Retail Customers we will target include the following:

- Females primarily ages 25 to 85 years
- Males primarily ages 25 to 85 years
- Children primarily ages 10 to 16 years



KAS supplies its products at a 60% markup for wholesale customers and 100% markup for retail and internet customers.



Wholesale Sales



Our target wholesale group is small retail outlets or special orders for movie/television productions, etc.  We provide our wholesale clients with products within one or five days of receipt of order depending on their location in North America.



Management markets to these outlets from our warehouse.  To complement management's marketing efforts, we use the services of sales representatives in key North American markets.  KAS has secured the services of a successful and industry respected agent for our product in BC, Alberta, Saskatchewan and Ontario.  We may retain similar sales representatives in other key markets in North America (i.e., New York, Los Angeles).



Retail Sales

---

Our target retail customer group is middle to upper income women from all age groups.  Our market research indicates that women could account for approximately 80% of the total retail customer sales of KAS.  It is management's experience that women may also order silk undergarments for their children.  Although the primary target group is women, we intend to also market to men.  This is an emerging market we intend to develop.  Previous experience has indicated there is a demand for men's products.



Our retail prices should be particularly attractive to American customers who, due to favourable exchange rates receive our products at an additional 25% off (depending upon exchange rates).



The design and maintenance of a good web site is crucial to the success of our business.  The domain name kimallansilk.com is in use.  The KAS website is readily available, easy to navigate, informative, easy to order from and visually simulating.  It is important that KAS be found easily by the wide range of search engines/Internet surfing web sites.  It will be the web master's responsibility to maintain a high access level in the search engine directories.



Our main marketing tool for retail sales will be the Internet and web-based sales making full use of available search engines.  Promotion and publicity will reinforce the website address.  We will be focusing on the North American market.



In addition to our focus on Internet based retail sales, we also intend to continue to offer over the counter' sales services.  Product purchase of KAS products can be made directly from our warehouse site.  We have also developed a system to allow for home party sales and joint event sales (i.e., ski or motorcycle shows).  Our first home parties were held in November, 2003.  Individuals or corporations who host home parties or joint events receive 10% of gross sales generated in the form of free KAS products.  Party hosts are required to sign a simple agreement covering the terms of the event.



Growth



During the first 12 months of operation, our primary focus will be to build our market share of the wholesale North American customer base.  We look to expand this customer base through a combination of management's industry connections and our sales representatives and promotional marketing efforts.  We are currently screening candidates to act as our sales representative in Eastern Canada.  We are also currently considering hiring a sportswear representative to introduce our product line outside of our normal loungewear/lingerie and underwear sector.  We expect to employ a minimum of two sales representatives during the next 12 months.  We will be conducting an advertising mailout to approximately 4,000 private customers and approximately 200 loungewear/lingerie and underwear stores by the end of April, 2004.  Our private customer list and retail store list was built by Ms. Allan following her involvement in E-retail of silk products over the period 1997 to 2002.  There are no legal or contractual restrictions on Ms. Allan's right to use this private customer and retail store list.  Ms. Allan has five years experience managing the day to day operations of an E-business retail operation including sales and customer relations, stock control and ordering, product orders, shipping, customer account reconciliation as well as product design and manufacturing.



Once we have established a solid wholesale customer base, we predict the main growth of KAS will be in the retail customer Internet sales.  Although retail outlets and wholesale clients will be the base of our business, this initiative is seen as a desirable direction of growth given the potential customer base, considerably higher profit margin and the fact that payment is immediate (i.e., credit card).



The guiding principal behind our business is customer service.  Our goal is to provide no-hassle' ordering, delivery and return service for all our customers.  Our business structure is attractive to customers who seem to be looking to get away from the large department and big box store atmosphere.  This is achieved by our customers always being able to immediately talk to someone or receive a response soon after the customer's initial contact (either by toll-free phone or email).  Management's

---

experience in an E-business retail environment has demonstrated that it can be successful if you ensure a quality product, timely free delivery and hassle free shopping anytime of the day.



Sales and Payment



All product sales are made directly out of our warehouse.  For retail sales, KAS accepts cash, cheque, and credit card.  Payment for direct Internet sales is by credit card only, entered with a secure code Internet payment method.  For wholesale customers (e.g., retail outlets), our policy will be cash on delivery' (COD) or credit card.



Inventory



Our inventory management plan is to keep our stock level as low as possible and institute frequent inventory purchases in smaller amounts.  To ensure that KAS has all items in stock at sufficient quantities, we intend to keep our inventory around the $40,000 level (plus or minus approximately $5,000 worth of stock) for the first year of our plan of operation.  Given that our manufacturer requires no minimum order and that delivery is included in the price of our product, after the initial purchase of $40,000, we intend to order small amounts frequently rather than carrying large amounts of inventory from month to month.  As sales increase, KAS will require an increase in its inventory level.  We anticipate increasing our inventory level to $50,000 at the end of our first full year of operations.



Shipping



We use Canada Post Express Post Service for all deliveries.  With express post, delivery is guaranteed within two days for Canada and mainland US.  A reliable network for post office deliveries and pick-up sites exists throughout Canada and the United States.  Canada Post provides a pick up service, at no charge, for all orders from the warehouse.  If required, parcels can also be dropped in any post office box or postal outlet.



Receiving and Warehousing



All products are received at KAS's warehouse.  Our warehouse is co-located with our West Vancouver office and will serve as the primary storage area for our products.  Should large scale expansion of the business occur, a new warehouse/shipping facility will be sourced with all order processing and customer service to remain in the West Vancouver office.





SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

Certain statements in this section and elsewhere in this quarterly report on Form 10-QSB are forward-looking in nature and relate to our plans, objectives, estimates and goals.  Words such as expects, anticipates, intends, plans, projects, forecasts, believes, and estimates, and variations of such words and similar expressions, identify such forward-looking statements.  Such statements are made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995 and speak only as of the date of this report.  The statements are based on current expectations, are inherently uncertain, are subject to risks and uncertainties and should be viewed with caution.  Actual results and experience may differ materially from those expressed or implied by the forward-looking statements as a result of many factors, including, without limitation, those set forth under business -- additional factors that may affect our business and future results in our most recent annual report on Form 10-KSB and under risk factors.  We make no commitment to update any forward-looking statement or to disclose any facts, events, or circumstances after the date hereof that may affect the accuracy of any forward-looking statement.



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Item 3 - Controls and Procedures



Our Chief Executive Officer and Chief Financial Officer have concluded that our controls and other procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms are effective, based upon their evaluation of these controls and procedures as of a date within 90 days of the filing date of this Form 10-QSB.



There were no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of this evaluation, including any corrective actions with regard to significant deficiencies and weaknesses.





PART II

OTHER INFORMATION



Item 1.

LEGAL PROCEEDINGS



None



Item 2

CHANGES IN SECURITIES AND USE OF PROCEEDS



None



Item 3

DEFAULTS UPON SENIOR SECURITIES



None



Item 4

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



None



Item 5

OTHER INFORMATION



None



Item 6

EXHIBITS AND REPORTS ON FORM 8-K



(a)

Exhibits



31.1

Section 302 - Certification of Disclosure by the Company's Chief Executive Officer



31.2

Section 302 - Certification of Disclosure by the Company's Chief Financial Officer



32

Section 906 Certification



(b)

Reports on Form 8-K



None

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SIGNATURES



In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



FIDELITY CAPITAL CONCEPTS LIMITED





Dated:  March 22, 2004

Per:

/s/Gerald R. Tuskey



Gerald R. Tuskey,

C.F.O., Secretary and Director