---

UNITED STATES
  SECURITIES AND EXCHANGE
COMMISSIONWashington, D.C.
20549

FORM 10-Q

Quarterly Report under Section 13 or 15(d) ofThe Securities
Act of 1934

For the quarterly period ended **December 31, 2008**

Commission File Number: **333-149184**

ALDAR GROUP, INC.(Exact
name of registrant as specified in its charter)

|Nevada                   | 20-1379559              
|------------------------ | ------------------------
|(State of Incorporation) | (IRS Employer ID Number)

7230 Indian Creek Lane, Suite 201,
las Vegas, NV 89149Telephone: 253-549-4336(Address and telephone
number of principal executive offices)

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 during the past 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes X No ____

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a small
reporting compamy. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act.

Large Accelerated Filer
    [  ]
    Accelerated Filer
    [  ]Non-accelerated Filer
    [  ] (Do not check if a smaller
      reporting company)
    Smaller Reporting Company
    [X]


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

Yes X No ___

As of December 31, 2008, the registrant had 4,533,000 shares of
common stock, $0.001 par value, issued and outstanding.

---

ITEM 1. FINANCIAL STATEMENTS

The accompanying condensed unaudited financial statements of
Aldar Group, Inc., a Nevada corporation are condensed and, therefore, do not
include all disclosures normally required by accounting principles generally
accepted in the United States of America. These statements should be read in
conjunction with the Company's most recent annual financial statements for the
year ended June 30, 2008 included in our Annual Report on Form 10K filed with
the U.S. Securities and Exchange Commission (SEC) on October 14, 2008. In the
opinion of management, all adjustments necessary for a fair presentation have
been included in the accompanying condensed financial statements and consist of
only normal recurring adjustments. The results of operations presented in the
accompanying condensed financial statements for the period ended December 31,
2008 are not necessarily indicative of the operating results that may be
expected for the full year ending June 30, 2009.

2

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|ALDAR GROUP, INC.            
|-----------------------------
|(A Development Stage Company)
|                             
|BALANCE SHEETS               

|                                                                    |   | December 31, |   |   | June 30, |  
|------------------------------------------------------------------- | - | ------------ | - | - | -------- | -
|                                                                    |   | 2008         |   |   | 2008     |  
|ASSETS                                                              |  
|Current Assets:                                                     |   |              |   |   |          |  
|Cash                                                                | $ | 99           |   | $ | 470      |  
|Accounts receivable (Note 9)                                        |   | 6,458        |   |   | 6,459    |  
|Prepaid expenses                                                    |   | 395          |   |   | 645      |  
|Total current assets                                                |   | 6,952        |   |   | 7,574    |  
|                                                                    |   |              |   |   |          |  
|Property and Equipment (Note 2):                                    |   |              |   |   |          |  
|Horses                                                              |   | 12,500       |   |   | 34,512   |  
|Office furniture                                                    |   | 2,200        |   |   | 2,200    |  
|Total property and equipment                                        |   | 14,700       |   |   | 36,712   |  
|Less: Accumulated depreciation                                      |   | (5,777       | ) |   | (15,863  | )
|Net property and equipment                                          |   | 8,923        |   |   | 20,849   |  
|                                                                    |   |              |   |   |          |  
|Other Assets:                                                       |   | 2,857        |   |   | 6,071    |  
|Stallion syndicates, net of accumulated amortization
      (Note 2) |   |              |   |   |          |  
|                                                                    |   |              |   |   |          |  
|Total Assets                                                        | $ | 18,732       |   | $ | 34,494   |  
|                                                                    |   |              |   |   |          |  
|LIABILITIES AND
      STOCKHOLDERS DEFICIT                         |  
|                                                                    |   |              |   |   |          |  
|Current Liabilities:                                                |   |              |   |   |          |  
|Accounts payable - trade                                            | $ | 29,642       |   | $ | 45,475   |  
|Accounts payable - related party (Note 3)                           |   | 78,764       |   |   | 49,193   |  
|Notes payable - related party (Note 3)                              |   | 7,999        |   |   | 6,715    |  
|Total current liabilities                                           |   | 116,405      |   |   | 101,383  |  
|                                                                    |   |              |   |   |          |  
|Long-term Liabilities:                                              |   |              |   |   |          |  
|Notes payable - related parties (Note 3)                            |   | 20,700       |   |   | 20,000   |  
|                                                                    |   |              |   |   |          |  
|Total liabilities                                                   |   | 137,105      |   |   | 121,383  |  
|                                                                    |   |              |   |   |          |  
|Stockholders
      Deficit (Note 4):                               |   |              |   |   |          |  
|Common stock, $.001 share par value, 75,000,000 shares              |   |              |   |   |          |  
|authorized, 4,533,000 and 4,533,000
      shares issued and         |   |              |   |   |          |  
|outstanding at December 31, 2008 and June 30, 2008                  |   | 4,533        |   |   | 4,533    |  
|Additional paid-in capital                                          |   | 238,977      |   |   | 238,977  |  
|Deficit accumulated during the development stage                    |   | (361,883     | ) |   | (330,399 | )
|Total stockholders deficit                                         |   | (118,373     | ) |   | (86,889  | )
|Total Liabilities and Stockholders
      Deficit                   | $ | 18,732       |   | $ | 34,494   |  

See notes to unaudited financial
statements

3

---

|ALDAR GROUP, INC.            
|-----------------------------
|(A Development Stage Company)
|                             
|STATEMENTS OF OPERATIONS     

|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   | July 15,     |  
|----------------------------------------------- | - | ------------ | - | - | ------------ | - | - | ------------ | - | - | ------------ | - | - | ------------ | -
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   | 2004         |  
|                                                |   | Three months |   |   | Six months   |   |   | Three months |   |   | Six months   |   |   | (Inception)  |  
|                                                |   | Ended        |   |   | Ended        |   |   | Ended        |   |   | Ended        |   |   | to           |  
|                                                |   | December 31, |   |   | December 31, |   |   | December 31, |   |   | December 31, |   |   | December 31, |  
|                                                |   | 2008         |   |   | 2008         |   |   | 2007         |   |   | 2007         |   |   | 2008         |  
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Income                                          |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Race winnings                                   | $ | 923          |   | $ | 2,440        |   | $ | -            |   | $ | 7,999        |   | $ | 13,430       |  
|Breeding sales                                  |   | -            |   |   | -            |   |   | 6,200        |   |   | 6,200        |   |   | 6,200        |  
|Total Income                                    |   | 923          |   |   | 2,440        |   |   | 6,200        |   |   | 14,199       |   |   | 19,630       |  
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Operating Expenses                              |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Boarding fees                                   |   | 4,213        |   |   | 8,549        |   |   | 12,856       |   |   | 22,371       |   |   | 74,268       |  
|Training fees                                   |   | -            |   |   | 1,820        |   |   | 50           |   |   | 5,378        |   |   | 19,750       |  
|Depreciation & amortization                     |   | 704          |   |   | 1,898        |   |   | 2,997        |   |   | 4,977        |   |   | 21,836       |  
|Breeding fees                                   |   | -            |   |   | -            |   |   | -            |   |   | -            |   |   | 4,500        |  
|Consulting expense - related party              |   | 6            |   |   | 2,109        |   |   | 7,500        |   |   | 15,483       |   |   | 108,756      |  
|Consulting expense - other                      |   | -            |   |   | -            |   |   | -            |   |   | -            |   |   | 27,397       |  
|Other general and administrative
      expenses |   | 9,734        |   |   | 16,769       |   |   | 14,152       |   |   | 21,438       |   |   | 127,025      |  
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Total Operating Expenses                        |   | 14,657       |   |   | 31,145       |   |   | 37,555       |   |   | 69,647       |   |   | 383,532      |  
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Other Income
      (Expenses)                   |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Interest expense - related party                |   | (379         | ) |   | (704         | ) |   | -            |   |   | -            |   |   | (919         | )
|Gain (Loss) on sale of assets (Note
      2)    |   | 1,786        |   |   | (2,075       | ) |   |              |   |   | -            |   |   | (2,430       | )
|Insurance proceeds (Note 9)                     |   | -            |   |   | -            |   |   | -            |   |   | -            |   |   | 5,000        |  
|Other income                                    |   | -            |   |   | -            |   |   | 368          |   |   | -            |   |   | 368          |  
|Total Other Income (Expenses)                   |   | 1,407        |   |   | (2,779       | ) |   | 368          |   |   | -            |   |   | 2,019        |  
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Net Loss Before Provision
      for             |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Income
      Taxes                              |   | (12,327      | ) |   | (31,484      | ) |   | (30,987      | ) |   | (55,448      | ) |   | (361,883     | )
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Provision for Income
      Taxes                |   | -            |   |   | -            |   |   | -            |   |   | -            |   |   | -            |  
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Net Loss                                        | $ | (12,327      | ) | $ | (31,484      | ) | $ | (30,987      | ) | $ | (55,448      | ) | $ | (361,883     | )
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Net Loss Per Basic
      and Diluted Share      | $ | (0.00        | ) | $ | (0.01        | ) | $ | (0.01        | ) | $ | (0.01        | ) |   |              |  
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Weighted Average
      Number of Common         |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|                                                |   |              |   |   |              |   |   |              |   |   |              |   |   |              |  
|Shares
      Outstanding                        |   | 4,533,000    |   |   | 4,533,000    |   |   | 4,525,000    |   |   | 4,500,543    |   |   |              |  

See notes to unaudited financial
statements

4

---

|ALDAR GROUP, INC.                                           
|------------------------------------------------------------
|(A Development Stage Company)                               
|                                                            
|STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY
      (DEFICIT)

|                                 |  |                 |  |   |        |  |   |            |   |   | Deficit     |   |   |          |  
|-------------------------------- |  | --------------- |  | - | ------ |  | - | ---------- | - | - | ----------- | - | - | -------- | -
|                                 |  |                 |  |   |        |  |   |            |   |   | Accumulated |   |   |          |  
|                                 |  |                 |  |   |        |  |   | Additional |   |   | During      |   |   |          |  
|                                 |  | Number          |  |   | Common |  |   | Paid-In    |   |   | Development |   |   |          |  
|                                 |  | of
      Shares |  |   | Stock  |  |   | Capital    |   |   | Stage       |   |   | Total    |  
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Balance at July 15, 2004         |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|(Date of
      Inception)        |  | -               |  | $ | -      |  | $ | -          |   | $ | -           |   | $ | -        |  
|Common
      Stock:              |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Shares issued for cash           |  | 1,000,000       |  |   | 1,000  |  |   | -          |   |   | -           |   |   | 1,000    |  
|Shares issued for services       |  | 10,000          |  |   | 10     |  |   | -          |   |   | -           |   |   | 10       |  
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Net Loss                         |  | -               |  |   | -      |  |   | -          |   |   | (26,944     | ) |   | (26,944  | )
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Balance, June 30,
      2005     |  | 1,010,000       |  |   | 1,010  |  |   | -          |   |   | (26,944     | ) |   | (25,934  | )
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Common
      Stock:              |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Shares issued for cash           |  | 1,050,000       |  |   | 1,050  |  |   | 103,950    |   |   | -           |   |   | 105,000  |  
|Stock dividend                   |  | 1,260,000       |  |   | 1,260  |  |   | (1,260     | ) |   | -           |   |   | -        |  
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Net Loss                         |  | -               |  |   | -      |  |   | -          |   |   | (68,843     | ) |   | (68,843  | )
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Balance, June 30,
      2006     |  | 3,320,000       |  |   | 3,320  |  |   | 102,690    |   |   | (95,787     | ) |   | 10,223   |  
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Common
      Stock:              |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Shares issued for cash           |  | 1,105,000       |  |   | 1,105  |  |   | 109,395    |   |   | -           |   |   | 110,500  |  
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Net Loss                         |  | -               |  |   | -      |  |   | -          |   |   | (132,458    | ) |   | (132,458 | )
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Balance, June 30,
      2007     |  | 4,425,000       |  |   | 4,425  |  |   | 212,085    |   |   | (228,245    | ) |   | (11,735  | )
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Common
      Stock:              |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Shares issued for cash           |  | 108,000         |  |   | 108    |  |   | 26,892     |   |   | -           |   |   | 27,000   |  
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Net Loss                         |  | -               |  |   | -      |  |   | -          |   |   | (102,154    | ) |   | (102,154 | )
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Balance, June 30,
      2008     |  | 4,533,000       |  | $ | 4,533  |  | $ | 238,977    |   | $ | (330,399    | ) | $ | (86,889  | )
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Net Loss                         |  | -               |  |   | -      |  |   | -          |   |   | (31,484     | ) |   | (31,484  | )
|                                 |  |                 |  |   |        |  |   |            |   |   |             |   |   |          |  
|Balance, December
      31, 2008 |  | 4,533,000       |  | $ | 4,533  |  | $ | 238,977    |   | $ | (361,883    | ) | $ | (118,373 | )

See notes to unaudited financial
statements

5

---

|ALDAR GROUP, INC.            
|-----------------------------
|(A Development Stage Company)
|STATEMENTS OF CASH FLOWS     

|                                                      |   |              |   |   |              |   |   | 2004         |  
|----------------------------------------------------- | - | ------------ | - | - | ------------ | - | - | ------------ | -
|                                                      |   | Six months   |   |   | Six months   |   |   | (Inception)  |  
|                                                      |   | Ended        |   |   | Ended        |   |   | to           |  
|                                                      |   | December 31, |   |   | December 31, |   |   | December 31, |  
|                                                      |   | 2008         |   |   | 2007         |   |   | 2008         |  
|Cash Flows from Operating
      Activities:           |   |              |   |   |              |   |   |              |  
|Net loss                                              |   | (31,484      | ) | $ | (55,448      | ) | $ | (361,883     | )
|Adjustments to reconcile net loss to net cash         |   |              |   |   |              |   |   |              |  
|used in operating activities:                         |   |              |   |   |              |   |   |              |  
|Depreciation and amortization                         |   | 1,898        |   |   | 5,135        |   |   | 21,836       |  
|Loss on sale of assets                                |   | 2,075        |   |   | -            |   |   | 2,430        |  
|Common stock issued for services                      |   |              |   |   | -            |   |   | 10           |  
|Changes in operating assets and
      liabilities:    |   |              |   |   |              |   |   |              |  
|(Increase) decrease in:                               |   |              |   |   |              |   |   |              |  
|Accounts receivable                                   |   | -            |   |   | (5,682       | ) |   | (6,458       | )
|Prepaid expenses                                      |   | 250          |   |   | 1,347        |   |   | (395         | )
|Deposits                                              |   | -            |   |   | -            |   |   | -            |  
|Increase (decrease) in:                               |   |              |   |   |              |   |   |              |  
|Notes payable, accrued
      interest - related party |   | 704          |   |   | -            |   |   | 919          |  
|Accounts payable                                      |   | (15,132      | ) |   | 16,515       |   |   | 30,341       |  
|Accounts payable - related
      party                |   | 30,150       |   |   | 14,907       |   |   | 77,843       |  
|Net Cash Used in Operating
      Activities           |   | (11,539      | ) |   | (23,226      | ) |   | (235,357     | )
|                                                      |   |              |   |   |              |   |   |              |  
|Cash Flows from Investing
      Activities:           |   |              |   |   |              |   |   |              |  
|Purchase of horses and stallion syndicates            |   | -            |   |   | -            |   |   | (49,012      | )
|Proceeds from sale of assets                          |   | 11,168       |   |   | -            |   |   | 15,168       |  
|Purchase of office furniture                          |   | -            |   |   | -            |   |   | (2,200       | )
|Net Cash Provided by (Used in)
      Investing        |   |              |   |   |              |   |   |              |  
|Activities                                            |   | 11,168       |   |   | -            |   |   | (36,044      | )
|                                                      |   |              |   |   |              |   |   |              |  
|Cash Flows from
      Financing Activities:           |   |              |   |   |              |   |   |              |  
|Proceeds from sale of common stock                    |   | -            |   |   | 25,000       |   |   | 243,500      |  
|Proceeds from related party notes payable             |   | -            |   |   | -            |   |   | 40,500       |  
|Payments on related party notes payable               |   | -            |   |   | -            |   |   | (12,500      | )
|Net Cash Provided by
      Financing Activities       |   | -            |   |   | 25,000       |   |   | 271,500      |  
|                                                      |   |              |   |   |              |   |   |              |  
|Net (Decrease)
      Increase in Cash                 |   | (371         | ) |   | 1,774        |   |   | 99           |  
|Cash, Beginning of the
      Period                   |   | 470          |   |   | 710          |   |   | -            |  
|                                                      |   |              |   |   |              |   |   |              |  
|Cash, End of the Period                               | $ | 99           |   | $ | 2,484        |   | $ | 99           |  
|                                                      |   |              |   |   |              |   |   |              |  
|Supplemental Cash Flow
      Information:             |   |              |   |   |              |   |   |              |  
|                                                      |   |              |   |   |              |   |   |              |  
|Cash paid for interest                                | $ | -            |   | $ | -            |   | $ | -            |  
|Cash paid for income taxes                            | $ | -            |   | $ | -            |   | $ | -            |  
|                                                      |   |              |   |   |              |   |   |              |  
|Non-Cash Investing
      and Financing Activities:    |   |              |   |   |              |   |   |              |  
|1,260,000 common shares issued as stock dividend      | $ | -            |   | $ | -            |   | $ | 1,260        |  

See notes to unaudited financial
statements

6

---

|ALDAR GROUP, INC.                                                     
|----------------------------------------------------------------------
|(A Development Stage Company)                                         
|NOTES TO UNAUDITED FINANCIAL
      STATEMENTS                         
|For the six months ended December 31,
      2008                      
|and the Period of July 15, 2004 (Inception) to December 31,
      2008

NOTE 1:Summary of Significant Accounting Policies

Nature of Operations:

Aldar Group, Inc. (the Company) is a
Nevada corporation organized on July 15, 2004 for the purpose of purchasing and
selling thoroughbred horses. The Company operates in Washington State, and may
also conduct operations in other areas of the horse and thoroughbred industry,
such as purchasing, training, breeding, racing and selling of mares, weanlings,
yearlings, adult race horses, and stallion shares and syndications.

Development Stage Company:

The Company has realized minimal
revenues from its planned business purpose and, accordingly, is considered to be
in its development stage as defined in SFAS No. 7, Accounting and Reporting
by Development Stage Companies.

Property and Equipment:

Property and equipment consists of
office equipment, horses, and partial interest in a race horse, all of which are
stated at cost. Depreciation is calculated over the estimated useful lives
ranging from 3 to 7 years using the straight-line method (see Note 2).

Stallion Syndicates:

The Company owns syndicate shares in
stallions, which represent rights to breed the Companys mares with specific
stallions. The syndicates are considered intangible assets and are amortized
over their determinable finite life of 7 years in accordance with SFAS No. 142,
Goodwill and Other Intangible Assets (see Note 2).

Use of Estimates:

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

Income Taxes:

The Company is taxed as a C
corporation under the Internal Revenue Code. Accordingly, a provision has been
made for the tax effects of transactions reported in the financial statements
(see Note 5).

Cash Equivalents:

The Company considers all short-term
investments with an original maturity of three months or less to be cash
equivalents.

Reclassifications

Certain immaterial amounts from prior
years have been reclassified to conform to current year financial statement
presentation.

(continued)

7

---

|ALDAR GROUP, INC.                                                     
|----------------------------------------------------------------------
|(A Development Stage Company)                                         
|NOTES TO UNAUDITED FINANCIAL STATEMENTS
      (continued)             
|For the six months ended December 31,
      2008                      
|and the Period of July 15, 2004 (Inception) to December 31,
      2008

NOTE 1:Summary of Significant Accounting Policies
(continued)

Recently Issued Accounting
Pronouncements

In May 2008, the FASB issued SFAS No.
163, Accounting for Financial Guarantee Insurance Contractes  an
interpretation of FASB Statement No. 60.This Statement requires that an
insurance enterprise recognize a claim liability prior to an event of default
(insured event) when there is evidence that credit deterioration has occurred in
an insured financial obligation. This Statement also clarifies how Statement No.
60, Accounting and Reporting by Insurance Enterprises, applies to
financial guarantee insurance contracts, including the recongnition and
measurement to be used to account for premium revenue and claim liabilities.
This Statement is effective for financial statements issued for fiscal years
beginning after December 15, 2008, and all interim periods within those fiscal
years.

In May 2008, the FASB issued SFAS No.
162, The Hierarchy of Generally Accepted Accounting Principles.This
Statement identifies the sources of accounting principles and the framework for
selecting the principles to be used in the preparation of financial statements
of nongovernmental entities that are presented in conformity with generally
accepted accounting principles (GAAP) in the United States (the GAAP hierarchy).
This Statement is effective 60 days following the SECs approval of the Public
Company Accounting Oversight Board amendments to AU Section 411, The Meaning
of Present Fairly in Conformity With Generally Accepted Accounting
Principles.

In March 2008, the FASB issued SFAS
No. 161, Disclosures about Derivative Instruments and Hedging Activities.This new standard is intended to improve financial reporting about
derivative instruments and hedging activities by requiring enhanced disclosures
to enable investors to better understand their effects on an entitys financial
position, financial performance, and cash flows. This statement is effective for
financial statements issued for fiscal years and interim periods beginning after
November 15, 2008.

In December 2007, the FASB issued SFAS
No. 160, Noncontrolling Interests in Consolidated Financial Statements  an
amendment of ARB No. 51. This statement amends ARB 51 to establish
accounting and reporting standards for the noncontrolling interest in a
subsidiary and for the deconsolidation of a subsidiary. It clarifies that a
noncontrolling interest in a subsidiary is an ownership interest in the
consolidated entity that should be reported as equity in the consolidated
financial statements. The statement requires consolidated net income to be
reported at amounts that include the amounts attributable to both the parent and
the noncontrolling interest. It also requires disclosure, on the face of the
consolidated statement of income, of the amounts of consolidated net income
attributable to the parent and to the noncontrolling interest. This statement is
effective for fiscal years beginning on or after December 15, 2008.

*(continued)*

8

---

|ALDAR GROUP, INC.                                                     
|----------------------------------------------------------------------
|(A Development Stage Company)                                         
|NOTES TO UNAUDITED FINANCIAL STATEMENTS
      (continued)             
|For the six months ended December 31,
      2008                      
|and the Period of July 15, 2004 (Inception) to December 31,
      2008

NOTE 1:Summary of Significant Accounting Policies
(continued)

Recently Issued Accounting
Pronouncements

In February 2007, the FASB issued SFAS
No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities  Including an amendment of FASB Statement No. 115. The fair
value option established by this Statement permits all entities to choose to
measure eligible items at fair value at specified election dates. A business
entity shall report unrealized gains and losses on items for which the fair
value option has been elected in earnings (or another performance indicator) at
each subsequent reporting date. This Statement is effective as of the beginning
of an entitys first fiscal year that begins after November 15, 2007.

In December 2007, the FASB issued SFAS
No. 141(R) Business Combinations, which replaces FASB Statement No.
141, Business Combinations. This Statement defines the acquirer as the
entity that obtains control of one or more businesses in the business
combination and establishes the acquisition date as the date that the acquirer
achieves control. This Statement requires an acquirer to recognize the assets
acquired, the liabilities assumed, and any noncontrolling interest in the
acquiree at the acquisition date, measured at their fair values as of that date.
This Statement requires acquisition and restructuring costs to be recognized
separately from the acquisition. This Statement applies prospectively to
business combinations for which the acquisition date is on or after the
beginning of the first annual reporting period beginning on or after December
15, 2008.

In September 2006, the FASB issued
SFAS No. 157,Fair Value Measurements.This Statement defines fair
value, establishes a framework for measuring fair value in generally accepted
accounting principles (GAAP), and expands disclosures about fair value
measurements. This statement is effective for financial statements issued for
fiscal years beginning after November 15, 2007.

None of the above recently-issued
pronouncements has current application to the Company, but will be implemented
in the future as necessary.

Net Earnings (Loss) Per
Share:

The Company has adopted SFAS No. 128,
Earnings per Share, (EPS) which requires presentation of basic and
diluted EPS on the face of the income statement, and a reconciliation of the
numerator and denominator of the basic EPS computation to the numerator and
denominator of the diluted EPS computation. In the accompanying financial
statements, basic earnings (loss) per share is computed by dividing net
income/loss by the weighted average number of shares of common stock outstanding
during the period. The Company has no potentially dilutive securities, such as
options or warrants, currently issued and outstanding.

(continued)

9

---

|ALDAR GROUP, INC.                                                     
|----------------------------------------------------------------------
|(A Development Stage Company)                                         
|NOTES TO UNAUDITED FINANCIAL STATEMENTS
      (continued)             
|For the six months ended December 31,
      2008                      
|and the Period of July 15, 2004 (Inception) to December 31,
      2008

NOTE 2:Property and Equipment, Stallion Syndicates

| |                                                  |   | December 31 |   |   | June 30, |  
| | ------------------------------------------------ | - | ----------- | - | - | -------- | -
| |                                                  |   | 2008        |   |   | 2008     |  
| | Property and equipment is summarized as follows: |   |             |   |   |          |  
| |                                                  |   |             |   |   |          |  
| | Property and equipment:                          |   |             |   |   |          |  
| | Horses                                           | $ | 12,500      |   | $ | 34,512   |  
| | Office furniture                                 |   | 2,200       |   |   | 2,200    |  
| | Total property and equipment                     |   | 14,700      |   |   | 36,712   |  
| |                                                  |   |             |   |   |          |  
| | Accumulated
      depreciation:                  |   |             |   |   |          |  
| | Horses                                           |   | 5,060       |   |   | 15,303   |  
| | Office furniture                                 |   | 717         |   |   | 560      |  
| | Total property and equipment                     |   | 5,777       |   |   | 15,863   |  
| |                                                  |   |             |   |   |          |  
| | Net property and equipment                       | $ | 8,923       |   | $ | 20,849   |  
| |                                                  |   |             |   |   |          |  
| | Stallion syndicates are summarized as follows:   |   |             |   |   |          |  
| |                                                  |   |             |   |   |          |  
| | Stallion syndicates                              | $ | 5,000       |   | $ | 9,000    |  
| | Accumulated amortization                         |   | (2,143      | ) |   | (2,929   | )
| |                                                  |   |             |   |   |          |  
| | Net stallion syndicates                          | $ | 2,857       |   | $ | 6,071    |  

Horse depreciation of $2,132 and $3,762
and stallion syndicate amortization of $500 and $1,215 are included in operating
expenses in the statement of operations for the six months ended December 31,
2008 and 2007, respectively, while office furniture depreciation of $159 and
$158 is included in general and administrative expenses for the six months ended
December 31, 2008 and 2007, respectively. No additional impairment beyond
straight-line amortization on the stallion syndicates was noted for the periods
ended December 31, 2008 and 2007.

On September 30, 2008, the Company sold
one of its horses to an unrelated party to settle debt of $5,000. The horse had
a historical cost of $12,500 and net book value of $7,887 at the time of the
sale, resulting in a loss on the sale of $2,887.

In September 2008, the Company sold one
of its horses to an unrelated party to settle debt of $1,668. The horse had a
historical cost of $9,512 and net book value of $2,642 at the time of the sale,
resulting in a loss on the sale of $974.

In October 2008, the Company sold its
share in one of its stallion syndicates to an unrelated party to settle debt of
$4,500. The share had a historical cost of $4,000 and net book value of $2,714
at the time of the sale, resulting in a gain on the sale of $1,786.

(continued)

10

---

|ALDAR GROUP, INC.                                                     
|----------------------------------------------------------------------
|(A Development Stage Company)                                         
|NOTES TO UNAUDITED FINANCIAL STATEMENTS
      (continued)             
|For the six months ended December 31,
      2008                      
|and the Period of July 15, 2004 (Inception) to December 31,
      2008

NOTE 3:Related Party Transactions

On August 19, 2004 the Company entered
into a consulting agreement with an entity affiliated with a stockholder (the
Affiliate). The Affiliate was engaged to perform consulting services for the
Company for a term of six months commencing August 19, 2004, in exchange for
$15,000 and 10,000 shares of common stock. This agreement has been renewed for
various periods since inception with payment terms equating to $2,500 per month.
The agreement expired December 31, 2007 and was not renewed for another term.
Since the expiration of the consulting services agreement, the Company has been
charged service-specific fees by the Affiliate on an as needed basis.

During the year ended June 30, 2006,
the Affiliate advanced the Company $14,000, of which $1,500 and $11,000 was
repaid during the years ended June 30, 2007 and 2006, respectively, resulting in
an outstanding balance of $1,500 at June 30, 2008 and 2007. Interest has not
been imputed on the notes due to their nominal amounts.

In February and March 2008, the Company
entered into notes payable totaling $20,000 with two stockholders. The notes
bear 7% annual interest (which will start accruing in July 2008) and are due in
February and March 2011. No principal payments had been made as of September 30,
2008 and interest in the amount of $700 has been accrued.

On March 27, 2008, the Company entered
into a demand promissory note with the Companys President for $6,500 due
October 31, 2008. The note bears interest of 10% during the term of the note, or
25% per annum on the unpaid balance after maturity. The note is secured against
the Companys one-third ownership interest in Russian, a three year old racing
filly. Interest in the amount of $215 has been accrued for the year ended June
30, 2008. Interest in the amount of $704 has been accrued for the six months
ended December 30, 2008. Russian was sold to an unrelated party to satisfy
creditor debt and the demand promissory note has been converted to an unsecured
note payable to the Companys President.

The Affiliate leased office space in
behalf of the Company at $400 per month during the period of November 2005
through March 2008, and as of June 30, 2008 and 2007 the Company owed the
Affiliate for these lease payments (see Note 8).

The Affiliate regularly incurs expenses
in behalf of the Company in the normal course of business. Activity with the
Affiliate is summarized as follows:

| | Payable to Affiliate July 15, 2004 (Inception)       | $ | -      |  
| | ---------------------------------------------------- | - | ------ | -
| | Consulting fees                                      |   | 26,250 |  
| | Operating expenses incurred in behalf of the Company |   | 809    |  
| | Amounts paid to Affiliate                            |   | (609   | )
| | Payable to Affiliate June 30, 2005                   |   | 26,450 |  

(continued)

11

---

|ALDAR GROUP, INC.                                                     
|----------------------------------------------------------------------
|(A Development Stage Company)                                         
|NOTES TO UNAUDITED FINANCIAL STATEMENTS
      (continued)             
|For the six months ended December 31,
      2008                      
|and the Period of July 15, 2004 (Inception) to December 31,
      2008

NOTE 3:Related Party Transactions (continued)

| | Consulting fees                                      | $ | 30,000  |  
| | ---------------------------------------------------- | - | ------- | -
| | Lease expense                                        |   | 3,300   |  
| | Proceeds from notes payable                          |   | 14,000  |  
| | Operating expenses incurred in behalf of the Company |   | 11,327  |  
| | Amounts paid to Affiliate                            |   | (38,579 | )
| | Payable to Affiliate June 30, 2006                   |   | 46,498  |  
| |                                                      |   |         |  
| | Consulting fees                                      |   | 30,000  |  
| | Lease expense                                        |   | 4,800   |  
| | Operating expenses incurred in behalf of the Company |   | 16,640  |  
| | Amounts paid to Affiliate                            |   | (58,856 | )
| | Payable to Affiliate June 30, 2007                   |   | 39,082  |  
| |                                                      |   |         |  
| | Consulting fees                                      |   | 18,000  |  
| | Lease expense                                        |   | 3,600   |  
| | Operating expenses incurred in behalf of the Company |   | 8,937   |  
| | Amounts paid to Affiliate                            |   | (20,426 | )
| | Payable to Affiliate June 30, 2008                   |   | 49,193  |  
| |                                                      |   |         |  
| | Operating expenses incurred in behalf of the Company |   | 14,514  |  
| | Amounts paid to Affiliate                            |   | (49     | )
| | Payable to Affiliate December 31, 2008               | $ | 63,756  |  

NOTE 4:Stockholders Equity and Equity
Transactions

From the date of inception, July 15,
2004, through December 31, 2008 the Company had the following equity
transactions:

On July 16, 2004, the Company issued
175,000 shares of common stock at $.001 par value for $175 in cash.

On July 22, 2004, the Company issued
175,000 shares of common stock at $.001 par value for $175 in cash.

On August 19, 2004, the Company issued
10,000 shares of common stock at $.001 par value to an Affiliate of the Company
for services rendered, valued at $10 in connection with the consulting agreement
described in Note 3 above.

On November 4, 2004, the Company issued
650,000 shares of common stock at $.001 par value for $650 in cash.

On December 19, 2005, the Company
issued 150,000 shares of common stock at a price of $.10 per share for
$15,000.

(continued)

12

---

|ALDAR GROUP, INC.                                                     
|----------------------------------------------------------------------
|(A Development Stage Company)                                         
|NOTES TO UNAUDITED FINANCIAL STATEMENTS
      (continued)             
|For the six months ended December 31,
      2008                      
|and the Period of July 15, 2004 (Inception) to December 31,
      2008

NOTE 4:Stockholders Equity and Equity Transactions
(continued)

On December 31, 2005, the Company
issued 50,000 shares of common stock at a price of $.10 per share for
$5,000.

On December 31, 2005, the Company
issued 50,000 shares of common stock at a price of $.10 per share for
$5,000.

On March 3, 2006, the Company issued
20,000 shares of common stock at a price of $.10 per share for $2,000.

On April 17, 2006, the Company issued
150,000 shares of common stock at a price of $.10 per share for $15,000.

On May 8, 2006, the Company issued
30,000 shares of common stock at a price of $.10 per share for $3,000.

On June 23, 2006, the Company issued
300,000 shares of common stock at a price of $.10 per share for $30,000.

On June 23, 2006, the Company issued
300,000 shares of common stock at a price of $.10 per share for $30,000.

On January 31, 2006, the Company
declared and issued a common stock dividend of 1,260,000 shares at $.001 par
value to stockholders of record as of January 31, 2006.

On August 11, 2006, the Company issued
5,000 shares of common stock at a price of $.10 per share for $500.

On August 18, 2006, the Company issued
150,000 shares of common stock at a price of $.10 per share for $15,000.

On August 18, 2006, the Company issued
150,000 shares of common stock at a price of $.10 per share for $15,000.

On August 18, 2006, the Company issued
5,000 shares of common stock at a price of $.10 per share for $500.

On September 18, 2006, the Company
issued 5,000 shares of common stock at a price of $.10 per share for $500.

On September 18, 2006, the Company
issued 5,000 shares of common stock at a price of $.10 per share for $500.

(continued)

13

---

|ALDAR GROUP, INC.                                                     
|----------------------------------------------------------------------
|(A Development Stage Company)                                         
|NOTES TO AUDITED FINANCIAL STATEMENTS
      (continued)               
|For the six months ended December 31,
      2008                      
|and the Period of July 15, 2004 (Inception) to December 31,
      2008

NOTE 4:Stockholders Equity and Equity Transactions
(continued)

On September 18, 2006, the Company
issued 5,000 shares of common stock at a price of $.10 per share for $500.

On September 19, 2006, the Company
issued 20,000 shares of common stock at a price of $.10 per share for
$2,000.

On September 19, 2006, the Company
issued 20,000 shares of common stock at a price of $.10 per share for
$2,000.

On October 24, 2006, the Company issued
10,000 shares of common stock at a price of $.10 per share for $1,000.

On November 20, 2006, the Company
issued 25,000 shares of common stock at a price of $.10 per share for
$2,500.

On February 8, 2007, the Company issued
10,000 shares of common stock at a price of $.10 per share for $1,000.

On February 8, 2007, the Company issued
25,000 shares of common stock at a price of $.10 per share for $2,500.

On February 8, 2007, the Company issued
25,000 shares of common stock at a price of $.10 per share for $2,500.

On February 8, 2007, the Company issued
450,000 shares of common stock at a price of $.10 per share for $45,000.

On February 8, 2007, the Company issued
5,000 shares of common stock at a price of $.10 per share for $500.

On February 8, 2007, the Company issued
100,000 shares of common stock at a price of $.10 per share for $10,000.

On February 22, 2007, the Company
issued 10,000 shares of common stock at a price of $.10 per share for
$1,000.

On February 22, 2007, the Company
issued 5,000 shares of common stock at a price of $.10 per share for $500.

On February 22, 2007, the Company
issued 10,000 shares of common stock at a price of $.10 per share for
$1,000.

On May 1, 2007, the Company issued
65,000 shares of common stock at a price of $.10 per share for $6,500.

(continued)

14

---

|ALDAR GROUP, INC.                                                     
|----------------------------------------------------------------------
|(A Development Stage Company)                                         
|NOTES TO UNAUDITED FINANCIAL STATEMENTS
      (continued)             
|For the six months ended December 31,
      2008                      
|and the Period of July 15, 2004 (Inception) to December 31,
      2008

NOTE 4:Stockholders Equity and Equity Transactions
(continued)

On August 14, 2007, the Company issued
100,000 shares of common stock at a price of $.25 per share for $25,000.

On February 13, 2008, the Company
issued 8,000 shares of common stock at a price of $.25 per share for $2,000.

The above issuances resulted in
4,533,000 shares issued and outstanding at December 31, 2008 and June 30, 2008,
respectively.

NOTE 5:Income Taxes (continued)

The Company recognizes the tax effects
of transactions in the year in which such transactions enter into the
determination of net income, regardless of when reported for tax purposes.
Deferred taxes are provided in the financial statements under SFAS No. 109 to
give effect to the resulting temporary differences which may arise from
differences in the bases of various assets and liabilities based on the income
taxes expected to be payable in future years.

Development stage deferred tax assets
arising as a result of net operating loss carry forwards have been offset
completely by a valuation allowance due to the uncertainty of their utilization
in future periods. Operating loss carry forwards generated during the period
from July 15, 2004 (date of inception) through December 31, 2008 of $361,833
will begin to expire in 2024. Accordingly, deferred tax assets of approximately
$116,000 were offset by a valuation allowance, which increased by approximately
$10,700 and $19,300 during the six months ended December 31, 2008 and 2007,
respectively.

NOTE 6:Going Concern Considerations

The accompanying financial statements
have been prepared in conformity with generally accepted accounting principles,
which contemplate continuation of the Company as a going concern. However, the
Company has incurred losses since its inception and has not yet been successful
in establishing profitable operations. These factors raise substantial doubt
about the ability of the Company to continue as a going concern. Unanticipated
costs and expenses or the inability to generate revenues could require
additional financing, which would be sought through bank borrowings, equity or
debt financing, or asset sales. To the extent financing is not available, the
Company may not be able to or may be delayed in developing its services and
meeting its obligations. The Company will continue to evaluate its projected
expenditures relative to its available cash and to evaluate additional means of
financing in order to satisfy its working capital and other cash requirements.
The accompanying financial statements do not reflect any adjustments that might
result from the outcome of these uncertainties.

(continued)

15

---

|ALDAR GROUP, INC.                                                     
|----------------------------------------------------------------------
|(A Development Stage Company)                                         
|NOTES TO UNAUDITED FINANCIAL STATEMENTS
      (continued)             
|For the six months ended December 31,
      2008                      
|and the Period of July 15, 2004 (Inception) to December 31,
      2008

NOTE 7:Subsequent Events

On January 16, 2009, the Company
received a share subscription for 100,000 shares at $0.10 for total proceeds of
$10,000.

On January 23, 2009, the Company
entered into a loan agreement with an unrelated party in which the Company
advanced $8,000. This loan is non interest bearing and is due on January 1,
2010.

NOTE 8:Operating Leases

As described at Note 3, the Company has
entered into an agreement with an affiliate whereby the Company leases office
space located in Las Vegas, Nevada. The term of the agreement is one year,
commencing April 1, 2007, and requires monthly lease payments of $400 and a
refundable security deposit of $1,200. In the year ended June 30, 2008, the
security deposit was applied to rent owing. The lease was not renewed for
another term. Rent expense with the affiliate for the years ended June 30, 2008
and 2007 totaled $3,600 and $4,800, respectively, all of which is still owed to
the affiliate.

NOTE 9:Revenue Recognition and Other Income

The Companys current sources of income
are derived from winnings earned by race horses in which the Company owns either
full or partial interest and sale of foals from its breeding program. Income
from race winnings is recorded on the race dates with an accompanying receivable
to be reduced when checks are subsequently cut and distributed to all interest
owners. Income from the sale of foals is recorded on the sale date. During the
six months ended December 31, 2008 and 2007, the Company earned race winnings of
$2,440 and $7,999 respectively.

(concluded)

16

---

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION ANDRESULTS OF OPERATIONS

The following plan of operation should be read in conjunction
with our financial statements and the notes thereto included elsewhere in this
annual report. Statements contained herein which are not historical facts are
forward-looking statements, as that term is defined by the Private Securities
Litigation Reform Act of 1995, including statements relating to our plans,
objectives, expectations and intentions. Although we believe that the
expectations reflected in such forward-looking statements are reasonable,
forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ from those projected. We caution investors that
any forward-looking statements made by us are not guarantees of future
performance and that actual results may differ materially from those in the
forward-looking statements. Such risks and uncertainties include, without
limitation: established competitors who have substantially greater financial
resources and operating histories, regulatory delays or denials, ability to
compete as a start-up company in a highly competitive market, and access to
sources of capital.

Results of Operations

We have generated revenues from operations of $19,630 since
inception and have incurred $381,513in expenses
through December 31, 2008.

Plan of Operation

We have developed a plan of operations reflecting our
objectives and anticipated growth for the next 12 months and beyond. In our
plan, we identify our cash requirements, our anticipated purchases of new
horses, and our required staffing and additional funding requirements to fulfill
our business objectives.

Cash Requirements

We estimate that we require a minimum of approximately $150,000
and a maximum of approximately $250,000 to operate for the next 12 months from
the date of this annual report. The minimum of $150,000 is required for
operating expenses, training and care and boarding of our thoroughbreds. The
maximum will be required, however, if we attend upcoming Thoroughbred Auctions.
This estimate of required funds includes the $5,000 for commissions to our
bloodstock agent, $25,000 in estimated operating expenses including office rent,
boarding, training, sales preparation and $95,000 in additional overheads for
purchases and/or racing our horses. Additionally, as of December 31, 2008, we
held full title to two thoroughbreds and ownership interests in one stallion
syndicate. On October 2, 2008 the Company sold its ownership interest in one of
the stallion syndicates. We expect to generate revenue from the sales of these
horses and their foals. Specifically, we successfully bred our two mares and
delivered two foals on April 14 and April 15, 2006, and one foal in April 2007.
In July of 2006, upon the advice of our Vet, Mr. Bob Campbell, we put down our
colt by Lois Laner, out of Cahill Road, due to an incurable infection. The foal
born April 14, 2006 was sold at auction in December 2007 at the WBTA sale for
$6,200. To date, we have not generated a net profit and have sold one broodmare
and its foal to an unrelated party. We generated limited revenue in the second
quarter of 2008 from our racing program.

17

---

To the extent we are unable to meet our operating expenses, we
may borrow funds from our president Mr. Murphy or others, or we may attempt to
raise capital from private individuals or institutional investment equity funds.
Any funds generated from sales of horses or from equity investments, if any, in
our company that exceeds our operating expenses and debt repayments will be used
to purchase additional thoroughbred horses.

We have developed a plan of operations reflecting our
objectives and anticipated growth for the next 12 months and beyond. In our
plan, we identify our cash requirements, our anticipated purchases of new
horses, and our required staffing and additional funding requirements to fulfill
our business objectives.

Management attended and competitively bid on 1-4 Yearlings at
the Sept. 2008 WBTA Summer Yearling Sale, but was unable to purchase any new
thoroughbreds. The Company did not send a representative to Keeneland, Kentucky
for their Yearling Sale held over a two-week period in September 2008.. The
Company purchased a one-third interest in a filly named RUSSIAN to train and
race at Emerald downs in 2007. RUSSIAN placed fourth or better in four of her
six races and won $18,326. Russian was returned to Emerald downs in January 2008
to train for the April-October Emerald downs racing season. Russian had limited
success and was sold in late September of 2008 as a broodmare. The Company
purchased a filly named CASCADE PARK at the September 2006 WBTA Summer Yearling
Sale at Emerald Downs. That filly was in training to race in 2007 and placed in
both her races run in September 2007. The Company sold Cascade Park for $4,000
to a Canadian racing interest in March 2008. The Company had a one-year-old
filly we had bred and planned to sell at the coming 2008 auctions but due to a
pasture accident, the filly was euthanized in February 2008 on advice from the
attending veterinarian. The filly was insured for $8,000 and we received a
$5,000 reimbursement under that policy.

We have terminated our breeding program due to its limited
success over the last 2 years, but will retain our Stud rights in Private Gold.
We had purchased breeding rights to Matty-G for Lois Laner, which we consider
our best mare but were unsuccessful in bringing the pregnancy to a full term.
Matty-G was purchased by a Washington syndicate from Kentucky to stand in
Washington. We had planned on re-breeding Baby Alice to Cahill Road, but were
able to breed Baby Alice to Matty G a highly sought Stallion with a proven
record of delivering high value foals. Baby Alice who was bred to Matty G, had a
Filly foal in May of 2008. Both Mares were bred back to Matty G., but only the
Baby Alice breeding was successful. Aldar sold Lois Lane, and her foal privately
prior to the Washington Thoroughbred Breeders Association (WBTA) auction
scheduled for December 3, 2008. Aldar will receive State of Washington revenue
bonuss for races run in Washington race tracks from the winnings of
thoroughbreds they have bred. Aldar Group has previously received from the State
of Washington for breeding a successful race horse from a special Breeders
Program ($368).

Revenues

The Company has recorded $19,630 in
revenues from operations as of December 31, 2008, which was generated from race
winnings and the sale of one bred foal.

18

---

The Company had purchased two broodmares who were with foals
and two individual syndicate shares in established Stallions for breeding
purposes. The mares and their foals were for breeding purposes and possible
racing or re-sale, as were the Stallion syndicate shares. Two foals were born in
April 2006, one of which died in June 2006 due to an incurable virus, and was
uninsured. Another foal was born in April 2007 and had to be euthanized in 2008
because of a pasture accident. This foal was insured and the death resulted in
collection of $5,000 in insurance proceeds. The deaths may cause a substantial
loss in future sales. The foal born in 2006 was sold at auction in December 2007
for $6,200. Two more foals were born in May 2008 and one was sold with its
mother during this quarter. The other broodmare and its foal are being held for
sale anticipated in December 2008.

The Company currently has full ownership in one thoroughbred
filly weanling and one mare (Baby Alice). The two-year-old filly it bought at
the Sept 2006 WBTA Auction (Cascade Park), was sold to a Canadian racing
interest in March 2008. The Company owns syndicate shares in one stallion
(Private Gold). The Company has received revenue from the one-third interest in
the winnings from RUSSIAN ($8,644), and from the State of Washington for
breeding a successful race horse from a special Breeders Program ($368). Aldar
also has received revenue from the winnings of CASCADE PARK ($2,345) in 2007. An
Amazon book selling agreement has generated no sales to date.

Operating and General & Administrative Expenses

Operating expenses consisting of boarding, training,
depreciation and amortization, breeding, consulting, and other general
administrative expenses totaled $33,924 for the six
months ended December 31, 2008. Since inception through December 31, 2008, we
have incurred operating expenses totaling $381,513

Income Taxes

The Company does not anticipate having to pay income taxes in
the upcoming years due to our absence of net profits.

Capital and Liquidity

As of December 31, 2008, we had total current assets of $6,952, and total current liabilities of $116,405.

During the year ended June 30, 2008, the Company received
$27,000, in cash from the sale of its common stock, and $243,500 since inception
through September 30, 2008. These proceeds are being used for operating and
general and administrative expenses to sustain the Company through its
development stage until it establishes profitable operations or receives cash
from the issuance of additional common stock.

We had cash on hand of $99as of
December 31, 2008. We do not have sufficient cash to meet our short-term
expansion needs over the next 12 months, which are to expand our weanling
purchase program, our pinhooking sales and purchase program, our mare and foal
purchase program, our stallion breeding program, and our syndicate programs, and
also to expand our website presence and our book sale program.

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We believe we can meet our payment schedules for current
boarding, care and syndicate share costs through additional sales. The Company
will require additional cash, either from stock sales, racing profits, operating
activities or cash advances from stockholders and officers, to meet our
immediate expansions and financial needs and our long-term goals. Our long-term
goals will be to expand our weanling purchase program, our pinhooking sales and
purchase program ("Pinhooking" involves the purchase of a yearling, that is, a
horse that is between one and two years old, with a view towards training and
then reselling that horse as a two-year-old.), our mare and foal purchase
program, our stallion breeding program, our partnership/syndicate programs,
website presence, and our book sale program, and to advertise their
availability. The Company may not be able to obtain additional financing, either
in the form of racing profits, debt or equity, or guarantee that, if such
financing is obtained, it will be available to us on reasonable terms. If we are
able to obtain additional financing or structure strategic relationships in
order to fund current or future projects, existing stockholders will likely
experience further dilution of their percentage ownership of the Company.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK

Not applicable to smaller reporting companies.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and
Procedures

Disclosure Controls and Procedures

Under the supervision and with the participation of our
management, including our principal executive officer and the principal
financial officer, we have conducted an evaluation of the effectiveness of the
design and operation of our disclosure controls and procedures, as defined in
Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as of
the end of the period covered by this report. Based on this evaluation, Kevin
Murphy (our principal executive officer and principal financial officer)
concluded as of the evaluation date that our disclosure controls and procedures
were effective such that the material information required to be included in our
Securities and Exchange Commission reports is recorded, processed, summarized
and reported within the time periods specified in SEC rules and forms relating
to our company, and was made known to us by others within those entities,
particularly during the period when this report was being prepared.

Changes in Internal Control Over Financial
Reporting.

There were no significant changes in our internal controls or
in other factors that could significantly affect these controls subsequent to
the evaluation date. We have not identified any significant deficiencies or
material weaknesses in our internal controls, and therefore there were no
corrective actions taken.

PART II  OTHER INFORMATION

ITEM 6. EXHIBITS

20

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|ExhibitNumber | Description                                   
|------------- | ----------------------------------------------
|              |                                               
|31            | Rule 13a-14(a)/15d-14a(a)
      Certifications
|32            | Section 1350 Certifications                   

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SIGNATURES

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

|February 15, 2009 | Aldar Group, Inc.                                             
|----------------- | --------------------------------------------------------------
|                  |                                                               
|                  |                                                               
|By:               | /s/ Kevin M. Murphy                                           
|                  | Kevin M. Murphy, President (principal executive
      officer)

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