UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
(Mark One)

[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934

                  For the quarterly period ended March 31, 2009

[  ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934

                 For the transition period from _____ to _______

                          Commission File Number: None

                    NEW TAOHUAYUAN CULTURE TOURISM CO., LTD.
              -----------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)

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

                                1# Dongfeng Road
                   Xi'an Weiyang Tourism Development District
                                  Xi'an, China
                  -------------------------------------------
               (Address of Principal Executive Offices) (Zip Code)

       Registrant's telephone number including area code: 0086-29-86671555

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

Indicate by check mark whether the registrant (1) filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 smaller reporting company. See
definition of "large accelerated filer", "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

Larger accelerated filer [  ]       Accelerated filer [  ]
Non-accelerated filer [  ]          Smaller reporting company [X]

Indicate by check mark whether registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).     Yes [  ]     No  [X]

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 18,727,327 shares outstanding
as of May 12, 2009.



<PAGE>

         NEW TAOHUAYUAN CULTURE TOURISM COMPANY LIMIITED AND SUBSIDIARY


                   UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 2009



                                TABLE OF CONTENTS


Unaudited consolidated Balance Sheets as of March 31, 2009
 and December 31,2008                                                       1

Unaudited consolidated Statements of Operations for the
 three month periods ended March 31, 2009 and 2008                          2

Unaudited consolidated Statements of Cash Flows for the
 three month periods ended March 31, 2009 and 2008                          3

Notes to consolidated financial statements                               4-16



<PAGE>

          NEW TAOHUAYUAN CULTURE TOURISM COMPANY LIMITED AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                   AS OF MARCH 31, 2009 AND DECEMBER 31, 2008
                                   (UNAUDITED)

                                              March 31, 2009   December 31, 2008
                                              --------------   -----------------
                             ASSETS
Current assets
   Cash and cash equivalents                  $      55,665    $      89,252
   Accounts receivable, net                          24,646           39,657
   Inventories                                       82,800           77,147
   Prepaid expenses and other current assets          4,310            2,501
   Due from related parties                         574,128          566,748
                                              --------------   --------------
           Total Current Assets                     741,550          775,305

Property & equipment, net                         6,292,108        6,489,210

Construction-in- progress                        14,223,297       13,134,481

Land use right, net                               2,544,535        2,566,063

Deposit for land use right                       17,529,508       17,588,860
                                              --------------   --------------
Total assets                                  $  41,330,997    $  40,553,918
                                              ==============   ==============

                  LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
   Accounts payable and accrued expenses      $     794,627    $     627,391
   Deferred revenue                                 131,861           60,217
   Taxes payable                                  5,643,093        5,461,359
                                              --------------   --------------
   Total Current Liabilities                      6,569,581        6,148,967

Stockholders' equity
   Common stock, $.001 par value,
    50,000,000 shares authorized,
    18,727,327 issued and outstanding
    as of March 31, 2009 and December 31,2008        18,727           18,727
   Preferred stock, $.001 par value,
    10,000,000 shares authorized, none
    issued and outstanding                                -               -
   Additional paid in capital                    15,855,727      15,855,727
   Statutory reserve                              2,332,955       2,285,706
   Other comprehensive income                     5,141,442       5,304,720
   Retained earnings                             11,412,564      10,940,071
                                              --------------   --------------
   Total stockholders' equity                    34,761,416      34,404,951
                                              --------------   --------------
Total liabilities and stockholders' equity    $  41,330,997    $ 40,553,918
                                              ==============   ==============


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



                                       1

<PAGE>

          NEW TAOHUAYUAN CULTURE TOURISM COMPANY LIMITED AND SUBSIDIARY
      CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME
            FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2009 AND 2008
                                   (UNAUDITED)

                                                       2009            2008
                                                  --------------  --------------
Net revenue
 Catering and hotel related services income       $   1,135,224   $   1,026,648
 Management fee income                                  503,900         482,207
                                                  --------------  --------------
       Total net revenue                              1,639,125       1,508,855

Cost of revenue                                         340,094         319,166
                                                  --------------  --------------
Gross profit                                          1,299,030       1,189,689

Operating expenses
   General and administrative expenses                  484,266         304,366
   Depreciation and amortization                        188,046         162,474
                                                  --------------  --------------
       Total operating expenses                         672,312         466,840
                                                  --------------  --------------
Income from operations                                  626,719         722,849
                                                  --------------  --------------
Other Income
  Interest income                                             -             447
  Other income, net                                       3,272           4,530
                                                  --------------  --------------
       Total other income                                 3,272           4,977
                                                  --------------  --------------

Income before income taxes                              629,991         727,826

Provision for income taxes                              157,498         183,832
                                                  --------------  --------------
Net income                                              472,493         543,994

Other comprehensive item:
   Foreign currency translation gain                   (163,278)      1,244,244
                                                  --------------  --------------

Net comprehensive income                          $     309,215   $   1,788,238
                                                  ==============  ==============

Earning per share:
  Basic & diluted earning per share               $        0.03   $        0.03
                                                  ==============  ==============
Weighted average number of shares
outstanding:
   Basic & diluted weighted average
   number of shares                                  18,727,327      18,727,327
                                                  ==============  ==============


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

                                       2

<PAGE>

          NEW TAOHUAYUAN CULTURE TOURISM COMPANY LIMITED AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
            FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2009 AND 2008
                                   (UNAUDITED)

                                                       2009            2008
                                                  --------------  --------------

CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                      $     472,493   $     543,994
  Adjustments to reconcile net income to
   net cash provided by operating activities:
  Depreciation and amortization                         188,046         162,474
  Bad debt expense                                       33,639               -
  (Increase) / decrease in current assets:
   Accounts receivables                                 (18,764)         13,249
   Inventory                                             (5,913)         47,763
   Other receivables                                       (460)           (449)
   Prepaid expenses and other current assets              (1358)              -
   Increase/(decrease) in current liabilities:
    Accounts payable and accrued expenses               169,329          45,828
    Taxes payable                                       200,134         220,454
    Deferred revenue                                     71,836         (40,499)
                                                  --------------  --------------
   Total Adjustments                                    636,489         448,821
                                                  --------------  --------------
   Net cash provided by operating activities          1,108,982         992,815
                                                  --------------  --------------
CASH FLOWS FROM INVESTING ACTIVITIES
   Payment for construction in progress              (1,132,973)     (1,020,321)
                                                  --------------  --------------
   Net cash used in investing activities             (1,132,973)     (1,020,321)
                                                  --------------  --------------
CASH FLOWS FROM FINANCING ACTIVITIES
   Advances to related parties                           (9,291)          7,065
                                                  --------------  --------------
   Net cash provided by (used in) financing
    activities                                           (9,291)          7,065
                                                  --------------  --------------
   Effect of exchange rate changes on cash and
    cash equivalents                                       (306)          1,457

   Net increase/(decrease) in cash and cash
    equivalents                                         (33,587)        (18,984)

   Cash and cash equivalents, beginning
    balance                                              89,252          45,680
                                                  --------------  --------------
   Cash and cash equivalents, ending balance      $      55,665   $      26,696
                                                  ==============  ==============
SUPPLEMENTAL NONCASH FINANCIAL DISCLOSURES:

     Cash paid during the year for: $
     Income tax payments                          $           -   $           -
                                                  ==============  ==============
     Interest payments                            $           -   $           -
                                                  ==============  ==============

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

                                       3

<PAGE>

          NEW TAOHUAYUAN CULTURE TOURISM COMPANY LIMITED AND SUBSIDIARY
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                   AS OF MARCH 31, 2009 AND DECEMBER 31, 2008
                                   (UNAUDITED)

<TABLE>
<S>                                   <C>             <C>          <C>            <C>          <C>           <C>           <C>

                                                                Additional       Other                                    Total
                                          Common Stock             Paid      Comprehensive   Statutory     Retained   Stockholders'
                                     Shares          Amount     in Capital       Income       Reserve      Earnings       Equity
                                     ------          ------     ----------   -------------   ---------     --------   -------------

Balance as at
 December 31, 2007               18,727,327          18,727     15,855,727     3,207,587     2,018,901     8,538,825    29,639,767
                               -------------   -------------  ------------- ------------- ------------- ------------- -------------

Change in foreign currency
 translation gain                                                              2,097,133                                 2,097,133

Transfer to statutory
 reserve                                                                                       266,805      (266,805)            -

Net income for the
period ended
December 31, 2008                                                                                          2,668,051     2,668,051
                               -------------   -------------  ------------- ------------- ------------- ------------- -------------
Balance as at
 December 31, 2008               18,727,327    $     18,727   $ 15,855,727  $  5,304,720  $  2,285,706  $ 10,940,071  $ 34,404,951
                               =============   =============  ============= ============= ============= ============= =============

Change in foreign currency
 translation gain                                                               (163,278)                                 (163,278)

Transfer to statutory reserve                                                                   47,249                      47,249

Net income for the period
 ended March 31, 2009                                                                                        472,493       472,493
                               -------------   -------------  ------------- ------------- ------------- ------------- -------------
Balance as at March 31, 2009     18,727,327    $     18,727   $ 15,855,727  $  5,141,442  $  2,332,955  $ 11,412,564  $ 34,761,415
                               =============   =============  ============= ============= ============= ============= =============
</TABLE>


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


                                       4

<PAGE>


Note 1 - ORGANIZATION

  New Taohuayuan Culture Tourism Company Limited (the "Company") was
  incorporated under the laws of the State of Nevada on November 3, 2004. The
  Company is an investment holding company.

  Shaanxi New Taohuayuan Culture Tourism Company Limited ("Shaanxi NTHY") was
  incorporated in the People's Republic of China ("PRC") on August 3, 1997 as a
  limited liability company. Shaanxi NTHY operates a resort in Xi'an, in the
  PRC, providing catering, hotel and related services.

  Pursuant to an agreement and plan of migratory merger between the Company and
  Shaanxi NTHY on November 5, 2004, the Company acquired Shaanxi NTHY by issuing
  17,027,328 shares of its common stock to the original shareholders of Shaanxi
  NTHY in exchange for 100% of their membership interests (the "Merger"). As a
  result, the controlling member of Shaanxi NTHY has effective and actual
  operating control of the Company. The Merger was approved by the Shaanxi
  Ministry of Commerce on November 24, 2004. Since then, Shaanxi NTHY has become
  a wholly owned subsidiary of the Company and its status has changed to a
  wholly owned foreign owned enterprise.

  Since the Company had no operations or net assets prior to the acquisition,
  the acquisition was considered to be a capital transaction in substance,
  rather than a business combination and no goodwill was recognized. For
  financial reporting purposes, the acquisition was treated as a reverse
  acquisition whereby Shaanxi NTHY is considered to be the accounting survivor
  and the operating entity while the Company is considered to be the legal
  survivor.

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Unaudited Interim Financial Information
     ---------------------------------------

     The  accompanying  unaudited  consolidated  financial  statements have been
     prepared by New Taohuayuan  Tourism Company  Limited  pursuant to the rules
     and regulations of the Securities and Exchange  Commission (the "SEC") Form
     10-QSB and Item 310 of Regulation  S-B, and generally  accepted  accounting
     principles  for interim  financial  reporting.  The  information  furnished
     herein reflects all adjustments  (consisting of normal  recurring  accruals
     and  adjustments)  which are, in the opinion of  management,  necessary  to
     fairly present the operating  results for the respective  periods.  Certain
     information   and   footnote   disclosures   normally   present  in  annual
     consolidated  financial  statements  prepared in accordance with accounting
     principles  generally  accepted in the United  States of America  have been
     omitted  pursuant  to  such  rules  and  regulations.   These  consolidated
     financial  statements  should  be  read in  conjunction  with  the  audited
     consolidated  financial  statements and footnotes included in the Company's
     Annual Report on Form 10-KSB as of December 31,  2009..  The results of the
     three month periods ended March 31, 2009 are not necessarily  indicative of
     the results to be expected for the full year ending December 31, 2009.

  Basis of Presentation
  ---------------------

  The accompanying consolidated financial statements have been prepared in
  conformity with accounting principles generally accepted in the United States
  of America. The Company's functional currency is the Chinese Renminbi (CNY);
  however the accompanying consolidated financial statements have been
  translated and presented in United States Dollars (USD).


                                       5
<PAGE>

  Foreign currency transactions and comprehensive income (loss)
  -------------------------------------------------------------

  As of March 31, 2009, the accounts of Shaanxi NTHY were maintained, and its
  financial statements were expressed, in Chinese Yuan Renminbi (CNY). Such
  financial statements were translated into U.S. Dollars (USD) in accordance
  with Statement of Financial Accounts Standards ("SFAS") No. 52, "Foreign
  Currency Translation," with the CNY as the functional currency. According to
  the Statement, all assets and liabilities were translated at the current
  exchange rate, stockholder's equity are translated at the historical rates and
  income statement items are translated at the average exchange rate for the
  period. The resulting translation adjustments are reported under other
  comprehensive income in accordance with SFAS No. 130, "Reporting Comprehensive
  Income" as a component of shareholders' equity.

  During the three month ended March 31, 2009 and 2008 the transactions of
  Shaanxi NTHY were denominated in foreign currency and were recorded in Chinese
  Yuan Renminbi (CNY) at the rates of exchange in effect when the transactions
  occur. Exchange gains and losses are recognized for the different foreign
  exchange rates applied when the foreign currency assets and liabilities are
  settled. Transaction gains and losses that arise from exchange rate
  fluctuations on transactions denominated in a currency other than the
  functional currency are included in the results of operations as incurred.

  Use of Estimates
  ----------------

  The preparation of financial statements in conformity with generally accepted
  accounting principles in the United States ("GAAP") requires management to
  make certain 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, and such differences may be material to the financial statements.
  Certain prior year amounts have been reclassified to conform to the current
  year presentation.

  Principles of Consolidation
  ---------------------------

  The consolidated financial statements include the accounts of New Taohuayuan
  Culture Tourism Company Limited and its wholly owned subsidiary Shaanxi NTHY,
  collectively referred to within as the Company. All material inter-company
  accounts, transactions and profits have been eliminated in consolidation.

  Revenue Recognition
  -------------------

  The Company generates revenue from catering, hotel, and related services. The
  Company's revenue recognition policies are in compliance with Staff accounting
  bulletin (SAB) 104. Revenue is generally recognized: (a) when persuasive
  evidence of an arrangement exists; (b) when services are rendered; (c) when
  the fee is fixed or determinable; and (d) when collectibility is reasonably
  assured. Such service revenues are recognized net of discounts.

  The Company also generates management fee income in accordance with Shaanxi
  New Taohuayuan Economy Trade Company Limited and its subsidiaries (related
  parties) based on terms stated in the agreement. These companies are
  controlled by a common director and stockholder of the Company. Cost of good
  sold related to management fee income is immaterial comparing with the total
  expenses incurred for the Company during its fiscal year.


                                       6
<PAGE>

  Advertising
  -----------

  Advertising expenses consist primarily of costs of promotion for corporate
  image and product marketing and costs of direct advertising. The Company
  expenses all advertising costs as incurred.

  Income Taxes
  ------------

  The Company utilizes SFAS No. 109, "Accounting for Income Taxes," which
  requires the recognition of deferred tax assets and liabilities for the
  expected future tax consequences of events that have been included in the
  financial statements or tax returns. Under this method, deferred income taxes
  are recognized for the tax consequences in future years of differences between
  the tax bases of assets and liabilities and their financial reporting amounts
  at each period end based on enacted tax laws and statutory tax rates
  applicable to the periods in which the differences are expected to affect
  taxable income. Valuation allowances are established, when necessary, to
  reduce deferred tax assets to the amount expected to be realized.

  In July 2006, the Financial Accounting Standards Board ("FASB") issued FASB
  Interpretation No. 48, Accounting for Uncertainty in Income Taxes--an
  Interpretation of FASB Statement No. 109 ("FIN 48"). FIN 48 seeks to reduce
  the diversity in practice associated with certain aspects of measuring and
  recognition in accounting for income taxes. In addition, FIN 48 requires
  expanded disclosure with respect to the uncertainty in income taxes and is
  effective

  Beginning January 1, 2008, the new Enterprise Income Tax ("EIT") law will
  replace the existing laws for Domestic Enterprises ("DES") and Foreign
  Invested Enterprises ("FIEs"). The new standard EIT rate of 25% will replace
  the 33% rate currently applicable to both DES and FIEs. The two years tax
  exemption, three years 50% tax reduction tax holiday for production-oriented
  FIEs will continue until it expires.

  Statement of Cash Flows
  -----------------------

  In accordance with SFAS No. 95, "Statement of Cash Flows," cash flows from the
  Company's operations is based upon the local currencies. As a result, amounts
  related to assets and liabilities reported on the statement of cash flows will
  not necessarily agree with changes in the corresponding balances on the
  balance sheet.

  Concentration of Credit Risk
  ----------------------------

  Financial instruments that potentially subject the Company to concentrations
  of credit risk are cash, and other receivables arising from our normal
  business activities. We place our cash in what we believe to be credit-worthy
  financial institutions. We have a diversified customer base, most of which are
  in China. We control credit risk by collecting the revenue in advance. The
  Company routinely assesses the financial strength of its customers and, based
  upon factors surrounding the credit risk, establishes an allowance, if
  required, for uncollectible accounts and, as a consequence, believes that its
  accounts receivable credit risk exposure beyond such allowance is limited.

  Segment Reporting
  -----------------

  Statement of Financial Accounting Standards No. 131 ("SFAS 131"), "Disclosure
  About Segments of an Enterprise and Related Information" requires use of the
  "management approach" model for segment reporting. The management approach
  model is based on the way a company's management organizes segments within the
  company for making operating decisions and assessing performance. Reportable


                                       7
<PAGE>

  segments are based on products and services, geography, legal structure,
  management structure, or any other manner in which management disaggregates a
  company.

  Risks and Uncertainties
  -----------------------

  The Company is subject to substantial risks from, among other things, intense
  competition associated with the industry in general, other risks associated
  with financing, liquidity requirements, rapidly changing customer
  requirements, limited operating history, foreign currency exchange rates and
  the volatility of public markets.

  The Company's operations are carried out in the PRC. Accordingly, the
  Company's business, financial condition and results of operations may be
  influenced by the political, economic and legal environments in the PRC, by
  the general state of the PRC's economy. The Company's business may be
  influenced by changes in governmental policies with respect to laws and
  regulations, anti-inflationary measures, currency conversion and remittance
  abroad, and rates and methods of taxation, among other things.

  Contingencies
  -------------

  Certain conditions may exist as of the date the financial statements are
  issued, which may result in a loss to the Company but which will only be
  resolved when one or more future events occur or fail to occur. The Company's
  management and legal counsel assess such contingent liabilities, and such
  assessment inherently involves an exercise of judgment. In assessing loss
  contingencies related to legal proceedings that are pending against the
  Company or unasserted claims that may result in such proceedings, the
  Company's legal counsel evaluates the perceived merits of any legal
  proceedings or unasserted claims as well as the perceived merits of the amount
  of relief sought or expected to be sought.

  If the assessment of a contingency indicates that it is probable that a
  material loss has been incurred and the amount of the liability can be
  estimated, then the estimated liability would be accrued in the Company's
  financial statements. If the assessment indicates that a potential material
  loss contingency is not probable but is reasonably possible, or is probable
  but cannot be estimated, then the nature of the contingent liability, together
  with an estimate of the range of possible loss if determinable and material
  would be disclosed.

  Loss contingencies considered to be remote by management are generally not
  disclosed unless they involve guarantees, in which case the guarantee would be
  disclosed.

  Cash and Cash Equivalents
  -------------------------

  Cash and cash equivalents include cash in hand and cash in time deposits,
  certificates of deposit and all highly liquid debt instruments with original
  maturities of three months or less.

  Allowance for Doubtful Accounts
  -------------------------------

  Management reviews the composition of accounts receivable, loans and prepaid
  expense and analyzes historical bad debts, aging analysis, current economic
  trends and changes in payment patterns to evaluate the adequacy of these
  reserves. Reserves are recorded primarily on a specific identification basis.
  Allowance for doubtful accounts amounted to $93,405 and $28,258 at March 31,
  2009 and 2008 respectively.


                                       8
<PAGE>

  Inventory
  ---------

  Inventory is valued at the lower of cost or market. Inventory includes gift
  cards, raw materials and consumables.

  Potential losses from obsolete and slow-moving inventories are provided for
  when identified. Cost, which comprises all costs of purchase and, where
  applicable, other costs that has been incurred in bringing their inventories
  to their present location and condition, is calculated using the first-in,
  first-out method.

  Property, Plant & Equipment
  ---------------------------

  Property and equipment are stated at cost. Expenditures for maintenance and
  repairs are charged to earnings as incurred; additions, renewals and
  betterments are capitalized. When property and equipment are retired or
  otherwise disposed of, the related cost and accumulated depreciation are
  removed from the respective accounts, and any gain or loss is included in
  operations. Depreciation of property and equipment is provided using the
  straight-line method for substantially all assets with estimated lives of:

  Buildings                                                        40 years
  Infrastructures and leasehold improvement                        15 years
  Equipment (including electronic facilities,
   sports, education and recreation facilities)                   5-7 years
  Automobile                                                        7 years
  Furniture and Fixtures                                            5 years

  Intangible Assets
  -----------------

  The Company applies criteria specified in SFAS No. 141, "Business
  Combinations" to determine whether an intangible asset should be recognized
  separately from goodwill. Intangible assets acquired through business
  acquisitions are recognized as assets separate from goodwill if they satisfy
  either the "contractual-legal" or "separability" criterion. Per SFAS 142,
  intangible assets with definite lives are amortized over their estimated
  useful life and reviewed for impairment in accordance with SFAS No. 144,
  "Accounting for the Impairment or Disposal of Long-lived Assets." Intangible
  assets, such as purchased technology, trademark, customer list, user base and
  non-compete agreements, arising from the acquisitions of subsidiaries and
  variable interest entities are recognized and measured at fair value upon
  acquisition. Intangible assets are amortized over their estimated useful lives
  from one to ten years. The Company reviews the amortization methods and
  estimated useful lives of intangible assets at least annually or when events
  or changes in circumstances indicate that assets may be impaired. The
  recoverability of an intangible asset to be held and used is evaluated by
  comparing the carrying amount of the intangible asset to its future net
  undiscounted cash flows. If the intangible asset is considered to be impaired,
  the impairment loss is measured as the amount by which the carrying amount of
  the intangible asset exceeds the fair value of the intangible asset,
  calculated using a discounted future cash flow analysis. The Company uses
  estimates and judgments in its impairment tests, and if different estimates or
  judgments had been utilized, the timing or the amount of the impairment
  charges could be different.

  Effective January 1, 2002, the Company adopted Statement of Financial
  Accounting Standards No. 144, "Accounting for the Impairment or Disposal of
  Long-Lived Assets" ("SFAS 144"), which addresses financial accounting and
  reporting for the impairment or disposal of long-lived assets and supersedes
  SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for


                                       9
<PAGE>

  Long-Lived Assets to be Disposed Of," and the accounting and reporting
  provisions of APB Opinion No. 30, "Reporting the Results of Operations for a
  Disposal of a Segment of a Business." The Company periodically evaluates the
  carrying value of long-lived assets to be held and used in accordance with
  SFAS 144. SFAS 144 requires impairment losses to be recorded on long-lived
  assets used in operations when indicators of impairment are present and the
  undiscounted cash flows estimated to be generated by those assets are less
  than the assets' carrying amounts. In that event, a loss is recognized based
  on the amount by which the carrying amount exceeds the fair market value of
  the long-lived assets. Loss on long-lived assets to be disposed of is
  determined in a similar manner, except that fair market values are reduced for
  the cost of disposal.

  Basic and Diluted Earnings Per Share
  ------------------------------------

  Earnings per share are calculated in accordance with the Statement of
  financial accounting standards No. 128 (SFAS No. 128), "Earnings per share".
  SFAS No. 128 superseded Accounting Principles Board Opinion No.15 (APB 15).
  Net income (loss) per share for all periods presented has been restated to
  reflect the adoption of SFAS No. 128. Basic net income (loss) per share is
  based upon the weighted average number of common shares outstanding. Diluted
  net loss per share is based on the assumption that all dilutive convertible
  shares and stock options were converted or exercised. Dilution is computed by
  applying the treasury stock method. Under this method, options and warrants
  are assumed to be exercised at the beginning of the period (or at the time of
  issuance, if later), and as if funds obtained thereby were used to purchase
  common stock at the average market price during the period. Basic and diluted
  earnings per share were $0.03 and $0.03 for the three month periods ended
  March 31, 2009 and 2008 respectively.

  Recent Accounting Pronouncements
  --------------------------------

  In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in
  Consolidated Financial Statements". This Statement amends ARB 51 to establish
  accounting and reporting standards for the noncontrolling (minority) 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. SFAS No. 160 is effective for the Company's fiscal year
  beginning January 1, 2009. Management does not believe this pronouncement will
  have a material effect on the Company's financial statements.

  In December 2007, the FASB issued SFAS No. 141(R), "Business Combinations".
  This Statement replaces SFAS No. 141, Business Combinations. This Statement
  retains the fundamental requirements in Statement 141 that the acquisition
  method of accounting (which Statement 141 called the purchase method) be used
  for all business combinations and for an acquirer to be identified for each
  business combination. This Statement also establishes principles and
  requirements for how the acquirer: a) recognizes and measures in its financial
  statements the identifiable assets acquired, the liabilities assumed, and any
  noncontrolling interest in the acquiree; b) recognizes and measures the
  goodwill acquired in the business combination or a gain from a bargain
  purchase and c) determines what information to disclose to enable users of the
  financial statements to evaluate the nature and financial effects of the
  business combination. SFAS No. 141(R) will apply prospectively to business
  combinations for which the acquisition date is on or after Company's fiscal
  year beginning January 1, 2009. The Company will be required to expense costs
  related to any acquisitions after December 31, 2008. Management does not
  believe this pronouncement will have a material effect on the Company's
  financial statements.


                                       10
<PAGE>

  In May 0f 2008, FSAB issued SFASB No.162, The Hierarchy of Generally Accepted
  Accounting Principles. The pronouncement mandates the GAAP hierarchy reside in
  the accounting literature as opposed to the audit literature. This has the
  practical impact of elevating FASB Statements of Financial Accounting Concepts
  in the GAAP hierarchy. This pronouncement will become effective 60 days
  following SEC approval. The Company does not believe this pronouncement will
  impact its financial statements.

  Note 3 - DEPOSIT FOR LAND USE RIGHT
           --------------------------

  The company has deposited amounts with the local government, for land use
  rights amounting $17,529,508 and $17,588,860 (RMB 120,000,000) at March 31,
  2009 and December 31, 2008, respectively, for the acquisition of a piece of
  land in PRC. The Company intends to acquire the land for the development of
  new project. To obtain the land use right from the Government, the Company is
  required to pay the demolish fee associated with the acquisition of the land
  use right amounting $21,911,885 (RMB 150,000,000). As of March 31, 2009, the
  demolish fee was not deposited with the government, therefore, the official
  title of land use right has not been transferred to the Company.

  Note 4 - PROPERTY AND EQUIPMENT
           ----------------------

  As of March 31, 2009 and December 31, 2008, the property and equipment of the
  Company consisted of the following:

                                               3/31/2009    12/31/2008
                                               ---------    -----------
Buildings                                      7,195,622     7,219,985
Infrastructure and Leasehold Improvement       1,779,281     1,785,306
Furniture and fixtures                         1,635,602     1,641,140
Equipments                                     1,972,878     1,979,558
Automobiles                                      312,613       313,672
                                              -----------   -----------
                                              12,895,997    12,939,661
Accumulated Depreciation                      (6,603,889)   (6,450,451)
                                              -----------   -----------
Property and Equipment, net                   $6,292,108    $6,489,210
                                              ===========   ===========

  The Company had depreciation expenses of $175,179 and $147,101 for the three
  month ended March 31, 2009 and 2008 respectively.

  Note 5 - LAND USE RIGHT
           --------------

  According to the laws of China, the government owns all the land in China.
  Companies or individuals are authorized to possess and use the land only
  through land use rights granted by the Chinese government. Land use rights are
  being amortized using the straight-line method over the lease term of 40 to 68
  years.

  As of March 31, 2009 and December 31, 2008, the intangible assets of the
  Company consisted of the following:

                                                3-31-2009   12-31-2008

          Land use rights                       3,331,809   $3,343,090
          Accumulated amortization               (787,274)    (777,027)
                                                ----------   ----------

                    Land use rights, net        2,544,535   $2,566,063
                                                ---------   ----------


                                       11
<PAGE>

  The Company had amortization expenses of $12,867 and $15,373 as of March 31,
  2009 and 2008. The amortization expenses for land use right for next five
  years after March 31, 2009 are as follows:

                2010                         $   51,468
                2011                             51,468
                2012                             51,468
                2013                             51,468
                2014                             51,468
                After                         2,287,195
                                              ----------
    Total                                    $2,544,535
                                             ===========

  Note 6 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES
           -------------------------------------

  The Company's accounts payable and accrued expenses as of March 31, 2009 and
  December 31, 2008 are summarized as follows:

         ---------------------------------------------------------------
                                                3-31-2009     12-31-08
         ---------------------------------------------------------------
           Accounts payables                    $ 247,811    $ 141,761
         ---------------------------------------------------------------
           Other payables                          433,583      372,014
         ---------------------------------------------------------------
           Accrued payroll                          40,880       41,019
         ---------------------------------------------------------------
           Accrued expenses                         72,353       72,597
         ---------------------------------------------------------------
           Total accounts payables and
           accrued expenses                      $ 794,627    $ 627,391
         ---------------------------------------------------------------

  Note 7 - DEFERRED REVENUE
           ----------------

  The company has recorded deferred revenue of $131,861 and $60,217 as of March
  31, 2009 and December 31, 2008. Deferred revenue represents advances from
  customers for using the resort facilities within the next twelve month period.

  Note 8- TAX PAYABLES
          ------------

  As of March 31, 2009 and December 31, 2008, tax payables are summarized as
  follows:

                                        3/31/2009      12/31/2008
                                     -------------  --------------
Income tax payable                    $ 4,574,823     $ 4,432,281
Business tax payable                      942,616         904,104
VAT payable                                    76             109
Other taxes payable                       125,578         124,865
                                     -------------  --------------
Tax payable                           $ 5,643,093     $ 5,461,359
                                     =============  ==============

  Note 9 - INCOME TAXES
           ------------

  The Company is registered in the State of Nevada and has registered primarily
  in two tax jurisdictions - the PRC and the United States. For certain
  operations in US and China, the Company has incurred net accumulated operating
  losses for income tax purposes The Company believes that it is more likely


                                       12
<PAGE>

  than not that these net accumulated operating losses will not be utilized in
  the future. Therefore, the Company has provided full valuation allowance for
  the deferred tax assets arising from the losses at these locations as of March
  31, 2009. Accordingly, the Company has no net deferred tax assets.

  The provision for income taxes from operations on income consists of the
  following for the year three month periods ended March 31, 2009 and 2008:

         US Current Income Tax       3-31-2009      3-31-2008
         Expense (Benefit)
         -----------------------------------------------------
           Federal                   $      -       $      -
         -----------------------------------------------------
           State                            -              -
         -----------------------------------------------------
                                            -              -
         -----------------------------------------------------
           PRC Current Income
           Expense (Benefit)          157,498        183,832
         -----------------------------------------------------
           Total Provision for       $157,498       $183,832
           Income Tax
         -----------------------------------------------------

  The following is a reconciliation of the provision for income taxes at the
  U.S. federal income tax rate to the income taxes reflected in the Statement of
  Operations:

            -------------------------------------------------------------
                                                 3-31-2009    3-31-2008
            -------------------------------------------------------------
              Tax expense (credit) at               34%          34%
              statutory rate - federal
            -------------------------------------------------------------
              State tax expense net of              6%            6%
              federal tax
            -------------------------------------------------------------
              Valuation allowance                  (40%)        (40%)
            -------------------------------------------------------------
              Foreign income tax - PRC              25%          25%
            -------------------------------------------------------------
              Tax expense (benefit) at              25%          25%
              actual rate
            -------------------------------------------------------------

  United States of America
  ------------------------

  As of March 31, 2009, the Company in the United States had approximately
  $84,495 in net operating loss carry forwards available to offset future
  taxable income. Federal net operating losses can generally be carried forward
  20 years. The deferred tax assets for the United States entities at March 31,
  2009 consists mainly of net operating loss carry forwards and were fully
  reserved as the management believes it is more likely than not that these
  assets will not be realized in the future.

  The following table sets forth the significant components of the net deferred
  tax assets for operation in the US as of March 31, 2009 and December 31, 2008.

               ---------------------------------------------------------
                                               3-31-2009      12-31-2008
               ---------------------------------------------------------
                 Net operation loss carry
                 forward                      $1,159,535      $ 933,500
               ---------------------------------------------------------
                 Total deferred tax assets       394,242        317,500
               ---------------------------------------------------------
                 Less: valuation allowance      (394,242)      (317,500)
               ---------------------------------------------------------
                 Net deferred tax assets      $        -      $       -
               ---------------------------------------------------------


                                       13
<PAGE>

  People's Republic of China (PRC)
  --------------------------------

  Pursuant to the PRC Income Tax Laws, the Enterprise Income Tax ("EIT") is at a
  statutory rate of 33%, which is comprises of 30% national income tax and 3%
  local income tax. Beginning January 1, 2008, the new Enterprise Income Tax
  ("EIT") law will replace the existing laws for Domestic Enterprises ("DES")
  and Foreign Invested Enterprises ("FIEs"). The new standard EIT rate of 25%
  replaced the 33% rate currently applicable to both DES and FIEs. The two years
  tax exemption, three years 50% tax reduction tax holiday for
  production-oriented FIEs will continue until the tax exemption period expires.
  The applicable new EIT for the Company is 25%. The Company paid $0 of income
  tax payable as of March 31, 2009 and 2008.

  Deferred income tax assets
  --------------------------

  Deferred income taxes are determined using the liability method for the
  temporary differences between the financial reporting basis and income tax
  basis of the Company's assets and liabilities. Deferred income taxes are
  measured based on the tax rates expected to be in effect when the temporary
  differences are included in the Company's tax return. Deferred tax assets and
  liabilities are recognized based on anticipated future tax consequences
  attributable to differences between financial statement carrying amounts of
  assets and liabilities and their respective tax bases. The Company's deferred
  tax assets represent deductible temporary differences arising mainly from the
  other payables.

       The Company did not have any significant deferred income tax in PRC as of
       March 31, 2009 and December 31, 2008.

  Note 10 - MANAGEMENT FEE AGREEMENTS
            -------------------------

  The Company entered into five management agreements with Shaanxi New
  Taohuayuan Economy Trade Company Limited and Shaanxi Wenhao Group and its
  subsidiary on various time for a period of five years. Shaanxi New Taohuayuan
  Economy Trade Company Limited and Shaanxi Wenhao Group and its subsidiary are
  related parties. The annual management fees are fixed at approximately
  $2,015,602 (RMB13,800,000). For the three-month periods ended March 31, 2009
  and 2008, the Company earned $503,900 and $482,207 in management fees,
  respectively. There is a bonus management fee clause contained in the
  agreement calculated at 15% on the excess of the actual revenue over targeted
  revenue, as defined therein. No bonus management fees have been earned to date
  (See Note 12 for details).

  Note 11 -RELATED PARTIES TRANSACTIONS
           ----------------------------

  The Company has identified the following related parties:

  Chen Jingmin - a  director and stockholder of the Company.
  Dongjin Taoyuan - a stockholder of the Company in which Chen Jingmin has
  control and a beneficial interest.

  Shaanxi New Taohuayuan Economy Trade Company Limited - the principal
  stockholder of the Company in which ChenJingmin has control and a beneficial
  interest.

  Shaanxi Wenhao Zaliang Shifu Co., Limited - a stockholder of the Company in
  which Chen Jingmin has control and a financial interest. The Wenhao Group has
  various entities as noted below:

  Shaanxi Wenhao Dongjin Taohuyuan - part of Wenhao Group.
  Shaanxi Wenhao Naner Huan Wenhao - part of Wenhao Group.
  Shaanxi Wenhao Xijiao Wenhao(Taoyuan Nanlu Branch) - part of Wenhao Group.
  Shaanxi Wenhao Yuan Taizu - part of Wenhao Group

                                       14
<PAGE>

  Shaanxi Kangze Economic and Trade Co., Limited - a stockholder of the Company
  in which Chen Jingmin has control and a beneficial interest.
  Shaanxi Xianyong Luye Developing Co., Limited - a stockholder of the Company
  in which Chen Jingmin has control and a beneficial interest.

  The Company as of March 31, 2009 had receivable $174,432 from Shaani NTHY -
  Dongjing Taoyuan Co., $380,647 from the Wenhao Group, $19,048 from Shaanxi
  Xianyong Luye Developing Co., Ltd. These receivables are unsecured,
  interest-free and have no fixed repayment terms. The Company has classified
  these receivables as due from related parties under current assets.

       The Company as of December 31, 2008 had receivable $128,460 from Shaani
       NTHY - Dongjing Taoyuan Co., $381,785 from the Wenhao Group, and $56,503
       from Shaanxi Xianyong Luye Developing Co., Ltd. These receivables are
       unsecured, interest-free and have no fixed repayment terms. The Company
       has classified these receivables as due from related parties under
       current assets.

  As of March 31, 2009 and December 31, 2008, there were no related parties'
payables.

  Note 12 -COMMITMENTS
           -----------

  Following are some of the significant commitments as of March 31, 2009 and
2008:

1. Management  Agreements with Shaanxi New Taohuayuan Tourism & Trading Co. Ltd.
- Dongjin Taoyuan Branch and Shaanxi Wenhao Taoyuan Nanlu Branch

  On January 15, 2004 the Company signed two five-year agreements with Shannxi
  New Taohuayuan Tourism & Trading Co. Ltd - Dongjin Taoyuan Branch and Xi'an
  Taoyuan Nanlu Branch to manage the restaurants. The company will perform
  management and operation function including advertising, marketing, human
  resources and accounting on monthly basis. The Company will receive RMB
  3,500,000 from each of the restaurant respectively as basic annual management
  fees, paid quarterly. In addition, if the annual revenue exceeds the targeted
  amount, the company will be compensated for additional 15% of the revenue as
  bonus. The agreements expired on Jan 14, 2009. The Company extended the
  agreements for 5 years and the new agreements will expire on January 9, 2014.
  For the three-month period ended March 31, 2009, the management fees earned
  amounted to $127,801 and $127,801 respectively based upon the agreements.

2. Management Agreements with Shaanxi Wenhao Zaliang Co. Ltd - Xi'an Nanerhuan
  Branch, Yuantaizu Branch and Beijing Branch

  On January 10, 2006 the Company signed three five-year agreements with Shaanxi
  Wenhao Zaliang Co. Ltd - Xi'an Nanerhuan Branch, Yuantaizu Branch and Beijing
  Branch respectively to manage the restaurants. The company will perform
  management and operation function including advertising, marketing, human
  resources and accounting on monthly basis. The Company will receive RMB
  3,600,000, RMB 1,800,000 and RMB 1,400,000 from each of these restaurants
  respectively as basic annual management compensation, paid quarterly. In
  addition, if the annual revenue exceeds the targeted amount, the company will
  be compensated for additional 15% of the revenue as bonus. The agreements will
  expire on January 9, 2010. For the three-month period ended March 31, 2009,
  the management fees earned amounting $131,452, $65,726 and $51,120
  respectively based upon the agreements.


                                       15
<PAGE>

  3. Lantian Xintianyou Garden Decoration Project agreements with Shaanxi
  Traditional Decoration Co., Ltd.

  On Mar. 15, 2006, the company signed a decoration agreement with Shannxi
  Traditional Decoration Co. Ltd for Shannxi Lantian Xintianyou Garden
  Decoration Project. The company hired the Shannxi Traditional Decoration Co.
  Ltd., to do decoration work on its property with the commitment to pay RMB
  80,000,000 as total compensation. The company will pay 30% of the amount at
  the beginning of the construction, 30% will be paid on 50% completion and 40%
  after the project is completed. The company is also responsible for appointing
  the third party as supervisor to monitor the project and to protect the
  surrounding environment. The project started on April 1st, 2006 and will be
  finished in 2008. The project was delayed because of public facility
  construction. As of March 31, 2009, the Company has paid $3,483,990 to the
  said contractor included in construction in progress.

  4. Lantian Xintianyou Garden Green Project Agreement with Shannxi Qinghua
  Green Project Co.,Ltd.

  On May 15, 2007, the company signed an agreement with Shannxi Qinghua Green
  Co. Ltd for the afforesting project of Lantian Xintianyou Garden Green. The
  company hired Shannxi Oinghua Green Project Co. Ltd., to perform afforesting
  work on the garden with the commitment to pay RMB 50,000,000 as total
  compensation. The company will pay 30% of the amount at the inception of the
  construction, 35% will be paid on 50% completion and 30% after the project
  completes. The final 5% will be held as project quality insurance deposit.
  After the project completed, Shannxi Qinghua Green Co.,Ltd will be responsible
  for the maintenance of the garden and the company will pay RMB 1,250,000 as
  annual compensation for services. The project started on Oct. 6, 2007 and will
  be finished at the end of 2008. The project was delayed because of public
  facility construction. As of March 31, 2009, the Company has paid $9,132,435
  to the said contractor included in construction in progress.

  5. Lantian Xintianyou Garden Project

  The Company entered an agreement with Lantian County, Xian City, Shaanxi
  Province to offer a new project's development - Lantian Xingtianyou Project in
  2003. The Company acquired a land (4512 Mu) in Lantian County and committed to
  finish the project in one year. The project has been started since 2004.
  However, the Company paid amount of $17,588,860 as land cost in 2006 but the
  title is not yet transferred to the Company without paying the demolish fee
  associated with the project (See note C for details).

  Note 13- STATUTORY RESERVE AND STATUTORY COMMON WELFARE FUND
           ---------------------------------------------------

  As stipulated by the Company Law of the People's Republic of China (PRC), net
  income after taxation can only be distributed as dividends after appropriation
  has been made for the following:

     i.   Making up cumulative prior years' losses, if any;

     ii.  Allocations  to the  "Statutory  surplus  reserve"  of at least 10% of
          income  after  tax,  as  determined  under  PRC  accounting  rules and
          regulations, until the fund amounts to 50% of the Company's registered
          capital;

     iii. Allocations  of 5-10% of income  after tax,  as  determined  under PRC
          accounting rules and regulations,  to the Company's  "Statutory common
          welfare  fund",  which is  established  for the  purpose of  providing
          employee  facilities  and other  collective  benefits to the Company's
          employees; and


                                       16
<PAGE>

     iv.  Allocations to the discretionary  surplus reserve,  if approved in the
          stockholders' general meeting.

  In accordance  with the Chinese  Company Law, the Company  reserved  $47,249
  and $56,345 in its statutory fund for the three-month  periods ending
  March 31, 2009 and 2008 respectively.

  According to the new Company Law of the People's Republic of China (PRC)
  executed in 2006, the Company is no more required to reserve the "Statutory
  common welfare fund". Accordingly, the Company did not reserve the common
  welfare fund as of March 31, 2009.

  Note 14 - RETIREMENT PLAN
            ---------------

  As stipulated by the rules and regulations in the PRC, the Company is required
  to contribute to a state-sponsored social insurance plan for all of its
  employees who are residents in the PRC at rates ranging from 12% to 17% of the
  basic salary of its employees. The Company has no further obligations for the
  actual pension payments or post-retirement benefits beyond the annual
  contributions. The state-sponsored retirement plan is responsible for the
  entire pension obligations payable to all employees.

  Note 15 - STOCKHOLDERS' EQUITY
            --------------------

  In January 2007, the Company entered into an agreement with outside third
  party to provide consulting services. As part of agreement the Company agreed
  to issue 1,699,999 shares of common stock at discount at $0.05 per share or
  $85,000 for cash. The consulting company will provide consulting service to
  the Company during the six month periods starting January 2007. The fair
  market value of the common stocks of the company was $0.55 on the agreement
  date. Accordingly the Company booked $85,000 as compensation expense after
  accounting for the shares issued at discount price of $0.05 for the said stock
  issuance as of December 31, 2007.

  Since the consulting company did not provide the services to the company's
  satisfaction, on February 28, 2008, the Company's directors adopted a
  resolution authorizing the repurchase of these shares at a price of $0.05 per
  share. As of March 31, 2009, the consulting company has not sold any of these
  shares to the Company,

  Note 16 - OTHER COMPREHENSIVE INCOME
            --------------------------

  Balances of related after-tax components comprising accumulated other
  comprehensive income (loss), included in stockholders' equity, as of March 31,
  2009 and December 31, 2008 are as follows:

                                      Foreign Currency
                                   Translation Adjustment
                                   ----------------------

Balance at December 31, 2008              $ 5,304,720
Change in 2009                               (163,278)
                                       ---------------
Balance at March 31, 2009                 $ 5,141,442
                                       ===============

  Note 17- SEGMENT REPORTING
           -----------------

  The Company had two principal operating segments which were: resort income and
  management fee income. These operating segments were determined based on the
  nature of the services provided. Operating segments are defined as components
  of an enterprise about which separate financial information is available that


                                       17
<PAGE>

  is evaluated regularly by the chief operating decision-maker in deciding how
  to allocate resources and in assessing performance. The Company's chief
  executive officer and chief financial officer have been identified as the
  chief operating decision makers. The Company's chief operating decision makers
  direct the allocation of resources to operating segments based on the
  profitability, cash flows, and other measurement factors of each respective
  segment.

  The Company evaluates performance based on several factors, of which the
  primary financial measure is business segment income before taxes. The
  segments' accounting policies are the same as those described in the summary
  of significant accounting policies. The following table shows the operations
  of the Company's reportable segments:

                                                    For the three month periods
                                                           ended March 31
                                                      2009              2008
Revenues
 Resort income from unaffiliated customers       $  1,135,224      $  1,026,648
 Management fee income from affiliated
  customers                                           503,900           482,207
                                                 -------------     -------------
            Consolidated                         $  1,639,125      $  1,508,855
                                                 =============     =============
Operating income (loss)
 Resort income                                   $    207,313      $    248,142
 Management fee income                                503,900           482,207
 Corporation (1)                                      (84,495)           (7,500)
                                                 -------------     -------------
            Consolidated                         $    626,719          (727,826)
                                                 =============     =============
Net income (loss)
 Resort income                                   $    179,063      $    165,989
 Management fee income                                377,925           378,005
 Corporation (1)                                      (84,495)               --
                                                 -------------     -------------
            Consolidated                         $    472,493      $    543,994
                                                 =============     =============

Identifiable assets:
 Resort income                                   $ 27,107,701      $ 10,015,242
 Management fee income                                      -                 -
 Corporation (1)                                   14,223,297        26,453,700
                                                 -------------     -------------
            Consolidated                         $ 41,330,997      $ 36,468,942
                                                 =============     =============
Depreciation and amortization:
 Resort income                                   $    188,046      $    162,474
                                                 =============     =============
Capital expenditures:
 Resort income                                   $          -      $          -
 Management fee income                                      -                 -
 Corporation (1)                                    1,132,973         1,020,321
                                                 -------------     -------------
            Consolidated                         $  1,132,973      $  1,020,321
                                                 =============     =============

(1). Unallocated  loss from Operating income (loss) and Net income (loss) before
     taxes are  primarily  related to general  corporate  expenses  and  capital
     expenditure for new project.



                                       18
<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operation

      You should read the following discussion and analysis of our financial
condition and results of operations in conjunction with our financial statements
and the related notes included elsewhere in this report. Our financial
statements have been prepared in accordance with U.S. GAAP. In addition, our
financial statements and the financial data included in this report reflect our
reorganization and have been prepared as if our current corporate structure had
been in place throughout the relevant periods. The following discussion and
analysis contains forward-looking statements that involve risks and
uncertainties. Actual results could differ materially from those projected in
the forward-looking statements.

                                    Overview

      We own and operate the Taohuayuan Inn hotel and resort located in the city
of Xi'an, province of Shaanxi, in the PRC. The Taohuayuan Inn has 23 courtyards
with 146 rooms and 292 beds.

      We manage the DongJin Taoyuan Villas, a hotel and resort property
approximately 10 miles from downtown Xi'an. DongJin Taoyuan Villas has 84 rooms
and 168 beds. This property closed for major remodeling in 2006 and is expected
to reopen in June 2009.

      We also manage a chain of four traditional Chinese restaurants. Two of the
restaurants are in Xi'an, and one is in Beijing.

      We receive fees for managing the DongJin Taoyuan Villas and the three
restaurants. The agreements relating to the management of these properties are
discussed in more detail in Item 1 of this report.


      Room rates in the Shaanxi province are established by the Shaanxi Price
Bureau. Room rates are established for each hotel or resort in the Shaanxi
Province and are based upon a number of factors, including the quality of the
property and amenities offered. Room rates may be changed at any time by the
Shaanxi Price Bureau based upon economic conditions in China.

      Our business is not seasonal in nature.

Results of Operations

Three Months Ended March 31, 2009

      Material changes of certain items in our Statement of Operations for the
three months ended March 31, 2009, as compared to the three months ended March
31, 2008, are discussed below:

                         Increase (I)
Item                   or Decrease (D) Reason

Operating Revenue           I          Increase in customers due to improvements
                                       made to our facilities and services.


                                       19
<PAGE>

Operating Expenses          I          Increase in employees and salaries.

Liquidity and Capital Resources

      Our material sources and (uses) of cash during the three months ended
March 31, 2009 were:

           Cash provided by operations                            $1,108,982
           Payment for land use rights, building improvements,
             and purchase of equipment                            (1,132,973)
           Loans to related parties                                   (9,291)
           Changes to foreign currency exchange rate                     306
           Cash on hand at January 1, 2009                            33,587

      Our material sources and (uses) of cash during the three months ended
March 31, 2008 were:

           Cash provided by operations                            $  448,821
           Payment for land use rights, building improvements,
               and purchase of equipment                          (1,020,321)
           Loans from related parties                                  7,065
           Changes to foreign currency exchange rate                   1,457
           Cash on hand at January 1, 2008                            18,984

      As discussed in our annual report on Form 10-K for the year ended December
31, 2008, we intend to develop an 848 acre commercial and residential
development in Lantian, a city located approximately 23 miles from Xi'an and a
150 room hotel and resort in Xi'an. As of April 30, 2009 we had not started
actual construction work on these projects.

      We have financed our operations to date through the sale of our common
stock and cash generated by our operations. As of April 30, 2009 expenditures
for the Lantian and New Hainan projects have been funded with cash from our
operations and proceeds from the sale of our common stock. We expect to finance
the remaining costs for the Lantian and New Hainan projects through cash from
our operations and loans. Loans would be collateralized by the property and
issued in conjunction with the government. However, required financing may not
be available to us, in which case the development of the projects may take
additional time or we may be unable to develop the projects. At present, we do
not have any lines of credit or other bank financing arrangements.

      We do not know of any trends, events or uncertainties that have, or are
reasonably likely to have, a material impact on our short-term or long-term
liquidity other than our need to pay the taxes and surcharges which we have
accrued as liabilities on our March 31, 2009 balance sheet.

Restrictions on currency exchange
---------------------------------

     Substantially  all of our  projected  revenues and  operating  expenses are
denominated in Renminbi.  The Renminbi is currently freely convertible under the


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"current account",  which includes dividends,  trade and service-related foreign
exchange  transactions,  but not under the  "capital  account",  which  includes
foreign direct investment and loans.

     We may  purchase  foreign  exchange  for  settlement  of  "current  account
transactions",  including payment of dividends to our shareholders,  without the
approval of the State  Administration  for Foreign Exchange.  We may also retain
foreign  exchange in our current  account,  subject to a ceiling approved by the
State   Administration  for  Foreign  Exchange,   to  satisfy  foreign  exchange
liabilities or to pay dividends.  However, the Chinese government may change its
laws or  regulations  and limit or eliminate  our ability to purchase and retain
foreign currencies in the future.

     Since a significant  amount of our future  revenues will be  denominated in
Renminbi,  the existing  and any future  restrictions  on currency  exchange may
limit our ability to utilize revenues generated in Renminbi to fund any business
activities outside China or fund expenditures denominated in foreign currencies.

     Exchange rate  fluctuations may adversely affect our financial  performance
because of our foreign  currency  denominated  assets and  liabilities,  and may
reduce the value,  translated or converted,  as applicable into U.S. dollars, of
our net fixed assets, our earnings and our declared dividends.  We do not engage
in any  hedging  activities  in order to minimize  the effect of  exchange  rate
risks.

Reserves

      In accordance with current Chinese laws, regulations and accounting
standards, we are required to set aside as a general reserve at least 10% of our
respective after-tax profits. Appropriations to the reserve account are not
required after these reserves have reached 50% of our registered capital. These
reserves are created to fund potential operating losses and are not
distributable as cash dividends. We are also required to set aside between 5% to
10% of our after-tax profits to the statutory public welfare reserve. In
addition and at the discretion of our directors, we may set aside a portion of
our after-tax profits for enterprise expansion funds, staff welfare and bonus
funds and a surplus reserve. These statutory reserves and funds can only be used
for specific purposes and may not be used for dividends.

Critical Accounting Policies and Estimates

      We prepare financial statements in conformity with U.S. GAAP, which
requires us to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities on
the date of the financial statements, and the reported amounts of revenue and
expenses during the financial reporting period. We continually evaluate these
estimates and assumptions based on the most recently available information, our
own historical experience and various other assumptions that are believed to be
reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are
not readily apparent from other sources. Since the use of estimates is an
integral component of the financial reporting process, actual results could
differ from those estimates. Some of our accounting policies require higher
degrees of judgment than others in their application. We consider the policies


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discussed below to be critical to an understanding of our financial statements
as their application assists management in making their business decisions

Revenue recognition

        We generally recognize service revenues when persuasive evidence of an
arrangement exists, services are rendered, the fee is fixed or determinable, and
collectibility is probable. Service revenues are recognized net of discounts.

Foreign currency translation

        We consider Renminbi as our functional currency as a substantial portion
of our business activities are based in Renminbi ("RMB"). However, we have
chosen the United States dollar as our reporting currency.

        Transactions in currencies other than the functional currency during the
year are translated into the functional currency at the applicable rates of
exchange prevailing at the time of the transactions. Monetary assets and
liabilities denominated in currencies other than the functional currency are
translated into the functional currency at the applicable rates of exchange in
effect at the balance sheet date. Exchange gains and losses are recorded in the
statements of operations.

      For translation of financial statements into the reporting currency,
assets and liabilities are translated at the exchange rate at the balance sheet
date, equity accounts are translated at historical exchange rates, and revenues,
expenses, gains and losses are translated at the weighted average rates of
exchange prevailing during the period. Translation adjustments resulting from
this process are recorded in accumulated other comprehensive income (loss)
within stockholders' equity.

Property, plant and equipment and depreciation

     Property,   plant  and  equipment  are  stated  at  cost  less  accumulated
depreciation.

     The  cost of an asset  consists  of its  purchase  price  and any  directly
attributable  costs of bringing the asset to its present  working  condition and
location for its intended use.  Expenditures incurred after the assets have been
put into operation, such as repairs and maintenance,  are normally recognized as
an expense in the period in which they are incurred.  In situations where it can
be clearly  demonstrated  that  expenditure  has  resulted in an increase in the
future economic benefits expected to be obtained from the use of the assets, the
expenditure is capitalized.

     When assets are sold or retired,  their costs and accumulated  depreciation
are  eliminated  from the  accounts  and any gain or loss  resulting  from their
disposal is included in the statement of operations.


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     Depreciation  is  calculated  to write off the cost of property,  plant and
equipment over their estimated  useful lives as set out below,  from the date on
which  they  become  fully  operational  and after  taking  into  account  their
estimated residual values, using the straight-line method.

Item 4.  Controls and Procedures.

      (a) NTHY maintains a system of controls and procedures designed to ensure
that information required to be disclosed in reports filed or submitted under
the Securities Exchange Act of 1934, as amended ("1934 Act"), is recorded,
processed, summarized and reported, within time periods specified in the SEC's
rules and forms and to ensure that information required to be disclosed by NTHY
in the reports that it files or submits under the 1934 Act, is accumulated and
communicated to NTHY's management, including its Principal Executive and
Financial Officer, as appropriate to allow timely decisions regarding required
disclosure. As of March 31, 2009, NTHY's Principal Executive and Financial
Officer evaluated the effectiveness of the design and operation of NTHY's
disclosure controls and procedures. Based on that evaluation, the Principal
Executive and Financial Officer concluded that NTHY's disclosure controls and
procedures were effective.

      (b) Changes in Internal Controls. There were no changes in NTHY's internal
control over financial reporting during the quarter ended March 31, 2009, that
materially affected, or are reasonably likely to materially affect, its internal
control over financial reporting.

                                     PART II
Item 6.  Exhibits

Exhibits

  31.1    Certification pursuant to Section 302 of the Sarbanes-Oxley Act
          of 2002.

  31.2    Certification pursuant to Section 302 of the Sarbanes-Oxley Act
          of 2002.

  32      Certification pursuant to Section 906 of the Sarbanes-Oxley Act
          of 2002.




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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.

                                     NEW TAOHUAYUAN CULTURE TOURISM CO., LTD.

May 14, 2009                         By: /s/ Cai Danmei
                                         ------------------------------------
                                         Cai Danmei, Principal Executive,
                                         Financial and Accounting Officer










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