**U.S.
      SECURITIES AND EXCHANGE COMMISSION**


WASHINGTON,
      D.C. 20549





FORM
      10-KSB




ANNUAL
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For
      the
      fiscal year ended December 31, 2006





Commission
      file number 000-30426





**LARGO
      VISTA GROUP, LTD.**


(Name
      of
      Small Business Issuer in its charter)




**Nevada**
            **76-0434540**(State
                or other jurisdiction of incorporation or organization)
            (I.R.S.
                Employer Identification No.)





**4570
                Campus Drive**
              **Newport
                Beach, California**
            **92660**(Address
                of principal executive offices)
            (Zip
                Code)





Issuer's
      telephone number (949) 252-2180





Securities
      registered under Section 12(b) of the Act: None





Securities
      registered under Section 12(g) of the Act: Common Stock





Check
      whether the registrant (1) filed all reports required to be filed by Section
      13
      or 15(d) of the 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 [
      ]





Check
      if
      there is no disclosure of delinquent filers pursuant to Item 405 of Regulation
      S-B contained in this form, and no disclosure will be contained, to the best
      of
      registrant's knowledge, in definitive proxy or information statements
      incorporated by reference in Part III of this Form 10-KSB or any amendment
      to
      this Form 10-KSB. [X]





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





The
      revenues for the year ended December 31, 2006 were
      $701,727 .


The
        market value of the voting and non-voting common stock held by non-affiliates
        of
        the registrant as April 12, 2007 was $5,543,010.
  The
        number of shares of Common Stock outstanding as of April 12, 2007 was
        291,737,357.


**Index**


**LARGO
      VISTA GROUP, LTD.**


**FORM
      10-KSB**


**INDEX**




Item
            Description
            Page**Part
                I**Item
                1.
            Description
                of Business
            1Item
                2.
            Description
                of Property
            9Item
                3.
            Legal
                Proceedings
            10Item
                4
            Submission
                of Matters of a Vote of Security
                Holders
            10**Part
                II**Item
                5.
            Market
                for Common Equity and Related Stockholder Matters and
                Small Business Issuer Purchase of Equity Securities
            10Item
                6.
            Management's
                Discussion and Analysis of Financial Condition
                and Results of Operations
            13Item
                7.
            Financial
                Statements and Supplementary
                Data
            F-1Item
                8.
            Changes
                in and Disagreements with Accountants on Accounting
                and Financial Disclosure
            21Item
                8A
            Controls
                and Procedures
            21**Part
                III**Item
                9.
            Directors
                and Executive Officers, Promoters & Control
                Persons; Compliance with Section 16(a) of the Exchange
                Act
            21Item
                10.
            Executive
                Compensation
            22Item
                11.
            Security
                Ownership of Certain Beneficial Owners and
                Management And Related Stockholder Matters
            23Item
                12.
            Certain
                Relationships and Related Transactions and Director
                Independence
            23**Part
                IV**Item
                13.
            Exhibits
            24Item
                14.
            Principal
                Accountant Fees and Services
            25Signatures
            26








**Index**


**PART
      I**





**Item
              1.**
            **DESCRIPTION
                OF
                BUSINESS**





**Business
      Development**





Largo
      Vista Group, Ltd. (“Largo Vista” or the "Company") was formed under the laws of
      the State of Nevada on January 16, 1987 under the name, "The George Group".
      On
      January 9, 1989, The George Group acquired Waste Service Technologies, Inc.
      ("WST"), an Oregon corporation, and filed a name change in Nevada and changed
      its name to WST, listed its stock, and began trading on OTC bulletin
      Board.





On
      April
      15, 1994, WST acquired Largo Vista, Inc., a California corporation, and filed
      a
      name change in Nevada to change WST's name to Largo Vista Group, Ltd., OTC
      bulletin Board symbol "LGOV". Largo Vista originally planned to develop housing
      in China, but after shipping two factory built homes to China, never fully
      implemented plans due to unanticipated financing, environmental and regulatory
      complications.





Unless
      the context otherwise requires, all references to the Company include its
      wholly-owned subsidiaries, Largo Vista, Inc., an inactive California
      corporation, Largo Vista Construction, Inc., an inactive Nevada corporation,
      and
      Largo Vista International, Corp., an inactive Panama corporation. Largo Vista
      also has operations through Doing Business As (“DBA”) agreement first with Zunyi
      Shilin Xinmao Petrochemical Industries Co. Ltd, (“Zunyi”) and later with Jiahong
      Gas Co., Ltd. (“Jiahong”), both registered under the Chinese laws in the Peoples
      Republic of China, Guizhou Province.





**Business
      of the Issuer**





Through
      DBA agreement with Jiahong, Largo Vista is engaged in the business of purchasing
      and reselling liquid petroleum gas ("LPG") in the retail and wholesale markets
      to both residential and commercial consumers. Largo Vista operated a storage
      depot and has an office headquarters in the City of Zunyi. Largo Vista has
      found
      the storage depot operations to be unprofitable, and therefore has terminated
      those operations in order to concentrate its resources on supplying LPG in
      bottles and through pipelines.





In
      February 2002, Largo Vista’s China operations entered into an agreement with the
      Zunyi Municipal Government to design and install LPG pipeline systems in
      residential areas in the city of Zunyi. In exchange for installing the pipeline,
      the agreement provides for the Largo Vista to be the sole LPG supplier for
      those
      households for 40 years. Largo Vista substantially completed the installation
      of
      the LPG pipeline in 2002 and continues to operate the pipeline.





In
      May
      2003, Largo Vista’s China operations entered into its second agreement with
      Zunyi Municipal Government to design and install more LPG pipeline systems
      in
      residential areas in the city of Zunyi, China. The pipeline project was
      substantially completed in December of 2004. These two pipelines currently
      serve
      approximately 720 customers. When natural gas becomes available to the area,
      these pipelines will be in place to deliver that commodity to the same
      customers.





1


**Index**


In
      addition, Largo Vista has contracted with a private developer to construct
      four
      additional pipelines in the same area. Pipeline Number 3 will serve 42
      condominiums and was completed July, 2005. Pipeline Number 4 will serve 60
      condominiums. Construction schedules are still pending. Pipeline Number 5 will
      serve 1,067 condominiums and the original plan was to build 16 buildings,
      housing 1,067 residences. 15 buildings containing 994 residences were completed
      during fiscal year 2006. The developer is awaiting government approval to
      proceed with the 16 th building
      of 73 residences. Pipeline Number 6 will serve 5,000 condominiums but the
      developer is slow in civil engineering. Pipeline
      Number 7 completed during fiscal year 2006 will serve 74
      condominiums. All of these pipelines will be operated by Largo Vista
      under long term supply contracts.





The
      contracts that Largo Vista Group, Ltd. (the “Company”) has with the Zunyi
      Municipal Government granted to the Company the exclusive right to supply liquid
      petroleum gas (LPG) to project buildings through pipeline systems. These project
      buildings are similar to large apartment or condominium complexes in the United
      States. The Company contracts with independent third parties for all of the
      design and construction of the pipelines. Generally, a central supply station
      will be built close to the buildings to be served. LPG will be stored in this
      facility and gasified before entering the pipeline system. The Company operates
      these central supply stations and manages the relationships with the individual
      customers in the buildings.





The
      Zunyi
      Municipal Government (“Zunyi”) agreed in its contracts with the Company to
      reimburse the Company for the costs of constructing the LPG pipelines, fifty
      percent (50%) after the signing of each contract and the remaining fifty percent
      (50%) upon completion of each pipeline project. Zunyi did pay the Company the
      first fifty percent (50%); but failed to pay the Company the remaining fifty
      percent (50%) upon completion of the first two (2) pipeline projects. Zunyi
      took
      the position that the Company should collect the balance from the customers
      as
      they subscribe for LPG delivery. The Company has been collecting that amount
      as
      a connection or subscription fee and accounting for that revenue as it is
      received.




For
        pipeline agreements with private developers and all other LPG sales, the
        Company
        collects payments from developers and customers pursuant to sales agreements,
        and recognizes revenues when services was provided or products are delivered,
        as
        the collectibility can be reasonably assured.


Largo
      Vista still seeks for the opportunities to supply petroleum products into
      Vietnam.





In
      addition, Largo Vista had two representative offices in the Far East area,
      one
      in Wuhan, China and another in Ho Chi Minh City, Vietnam, to supervise LPG
      and
      gas oil trading operations in China and Vietnam respectively. Largo Vista closed
      its rep office in Vietnam at the end of December 2005.





**Arrangement
      to Sell Stock to Shanghai Offshore Oil Group**





On
      March
      18, 2005, Largo Vista signed an Agreement and Assignment of Certain Contractual
      Rights and Benefits (the “Agreement”), with Shanghai Offshore Oil Group (HK)
      Co., Ltd. (“Shanghai Oil”).  Under the Agreement, Shanghai Oil assigned to
      Largo Vista all of its rights to receive payments under a prior contract with
      Asiacorp Investment Holding Ltd. (“Asiacorp”), under which Shanghai Oil would
      purchase from Asiacorp fuel oil produced in Russia and deliver it to entities
      in
      The People’s Republic of China at a rate of thirty thousand (30,000) metric tons
      per month for three (3) months and continue for the following thirty-three
      (33)
      months at a rate of two hundred thousand (200,000) metric tons per month, for
      a
      total of six million, six hundred ninety thousand metric tons (the “Asiacorp
      Contract”).  The Agreement states that deliveries under the Asiacorp
      Contract were to begin no later than May 18, 2005.





2




**Index**


The
      Agreement provides that Largo Vista will receive all of the profit realized
      by
      Shanghai Oil from the sale of fuel oil it acquires under the Asiacorp Contract,
      after the deduction of costs associated with the purchase, transportation and
      sale of the fuel oil, with a minimum payment of two dollars ($2.00) per metric
      ton. In exchange for the receipt of payment from Shanghai Oil, Largo Vista
      agreed to issue to Shanghai Oil one hundred million (100,000,000) shares of
      Largo Vista’s Common Stock, deliverable in three equal increments over the term
      of the Agreement, which amounts may be reduced based upon the amount, if any,
      of
      Shanghai Oil’s actual payments from its sale of the fuel oil.  However,
      Largo Vista has not received any payments from Shanghai Oil under the Agreement,
      and cannot give absolute assurances that any fuel oil will be delivered under
      the Asiacorp Contract.





Payments
      received by Largo Vista based upon Shanghai Oil’s sale of the fuel oil, if
      any, will be accounted for as a capital transaction as Largo Vista’s
      transaction with Shanghai Oil represents, in substance, a stock subscription
      under which Largo Vista would receive approximately $0.13 per share if the
      total
      projected amount of fuel oil is sold and the minimum guaranteed profit margin
      is
      paid to Largo Vista.





During
      June of 2005, Shanghai Oil notified Largo Vista that it had not received any
      fuel oil under the Asiacorp Contract.  As Largo Vista had not received any
      payments from Shanghai Oil, it did not release any of its shares of Common
      Stock
      to Shanghai Oil.  On approximately July 1, 2005, Largo Vista sent Shanghai
      Oil a written “Demand to Cure Delayed-Performance” giving Shanghai Oil until
      July 18, 2005, later extended to August 31, 2005, to make its first payment
      to
      Largo Vista under the Agreement.  Although Shanghai Oil has indicated to
      Largo Vista that it intends to deliver payment pursuant to the Agreement, either
      through performance under the Asiacorp Contract or through another contract
      in
      its place, investors should understand that delivery is far from certain. As
      of
      the date of filing of this Amendment, Largo Vista has not received any payments
      from Shanghai Oil nor has it released any of the shares deliverable to Shanghai
      Oil.





Resolution
      with Shanghai Oil remains highly uncertain, and Largo Vista does not foresee
      any
      economic benefit materializing from the Agreement. While Largo Vista has
      reserved its rights to pursue all available remedies it may have against
      Shanghai Oil, actually pursuing these remedies may be prohibitively expensive.
      On December 22, 2005, Largo Vista’s board of directors unanimously adopted a
      resolution to cancel the 97,364,597 shares that were issued Shanghai Oil under
      the Agreement and to return those shares to Largo Vista’s reserve of authorized
      but unissued shares of capital stock.





Affiliate
        and Subsidiary Relationships.


Largo
        Vista Group, Ltd. has three wholly-owned subsidiaries, none of which have
        current operations. These are  Largo Vista, Inc., Largo Vista International
        Corp, and Largo Vista Construction Inc. In addition, Largo Vista Group, Ltd
        has
        a controlling financial interest in Zunyi Jiahong Gas Co. Ltd through a "doing
        business agreement" which results in financial statement
        consolidation.






3


**Index**


**Principal
      Products and Their Markets**





**The
      Product**





LPG
      is
      used by about 500 million people worldwide. As a form of energy, it is
      considered a very efficient fuel. Its liquid state provides a significant supply
      of energy in a comparatively small volume. LPG is recognized for its
      transportability and ease-of-use. It is a clean and environmentally friendly
      source of energy that has a variety of residential, commercial, industrial
      and
      transportation uses. It can be used at home for cooking and heating and can
      therefore replace wood, kerosene, coal and other environmentally unfriendly
      sources of energy. Environmental concerns have caused the outlaw of the use
      of
      coal in most of the larger cities in China. Since LPG is one of the only viable
      sources of energy for cooking and heating in Southern China, management believes
      the China LPG market is ripe for growth and expansion.





Most
      Chinese consumers have used wood and coal all their lives, primarily for
      cooking. They are, however, beginning to realize the ease and convenience of
      using LPG for cooking and heating water. Most consumers obtain LPG in 15kg.
      cylinders, very similar to those used for gas barbecues in the U.S. As LPG
      delivery systems, such as pipelines, make use more convenient and simple, LPG
      consumption per capita should increase significantly.





**Markets:**





The
      China
      market is broken down in two ways for purposes of analysis:





The
      first
      way to view the market is through the distribution method; that is, either
      retail-direct or wholesale-indirect. Retail distribution is accomplished by
      the
      three major LPG companies that deal directly with the end user. In Zunyi, Largo
      Vista distributes to both retail and wholesale customers, and to both
      residential and commercial users. Retail customers, however, are far more
      profitable for the Company than wholesale because sales prices are higher and
      there are no middleman costs. The Company is implementing strategies to develop
      and expand the retail customer base.





The
      second way to view the market is through the method of delivery to the user;
      such as by bottle or cylinder, by pipeline, or by tank truck.





The
      bottle users may be either retail, purchasing directly from a major LPG company,
      or wholesale, purchasing from a distributor of a major LPG company. Bottle
      customers purchase LPG in 15 kg. cylinders or bottles that must, by law, be
      filled to a minimum of 13.5 kg, which is considered full. Bottle users include
      residential and commercial customers. Residential consumption is by far the
      largest, with commercial restaurants and caterers following second. There has
      been little industrial use of LPG to date.





Pipeline
      users are considered retail-direct users. LPG flows directly into household
      via
      pipes from a central storage tank that is replenished when necessary by a major
      LPG company. Pipeline users are billed according to usage based on a meter
      in
      their living unit. Management is pursuing a policy of expanding into this arena
      due to the fact that once the retail customer is captured via a pipeline
      connection, they will remain a profit center for the Company. Also, the usage
      by
      a pipeline customer is expected to be greater than a bottle retail customer
      because of the expanding uses of LPG, such as heating of the
      residence.





4


**Index**


Tank
      truck or bulk sales are made to wholesale distributors who operate small bottle
      filling stations. These distributors represent lower profit margins, but sheer
      volume of distribution makes-up some of the difference. Bulk sales are
      encouraged to cultivate the small wholesale distributors because of the
      potential of acquiring their customer base in the future.





During
      the 1990s, world LPG demand has risen on average nearly 3.6% per year, compared
      to 1.4% per year for the petroleum industry overall, as the world economy has
      grown. LPG demand is expanding worldwide but most dramatically in the developing
      countries of Asia. Demand in the region has been growing by an average of more
      than 6% per year, as per-capita consumption increases with the increasing
      standard of living in the region. For example, per-capita consumption of LPG
      in
      China in the 1990s increased from around 1 kg to more than 6 kg per-capita
      and
      expecting consumption to expand to more than 15 kg per-capita in the next
      century.





Asian
      markets are expanding rapidly, along with markets in other developing countries
      as population continues to grow along with demand for clean-burning LPG. It
      has
      been estimated that y 2020, Asia should account for more than 70 million metric
      tons per year of residential and commercial LPG demand, which represents more
      than 40% of total world LPG demand. China will account for the greatest
      percentage of the growth in overall LPG imports as a result of continued growth
      of the domestic Chinese economy and per-capita consumption of LPG.





The
      majority of dollars invested in the China LPG market have been invested in
      large
      "mega" depots by the major oil companies. Little to no focus has been placed
      on
      the retail end-user market. Put simply, the LPG "storage" infrastructure is
      in
      place, but it is overbuilt because the retail market has not been cultivated
      at
      the same pace. Management's primary objective is the development of this retail
      consumer base.





From
      the
      mega-depots on the east and southeast coast of China, LPG is shipped to smaller
      inland storage depots via railroad tank car. LPG is then pumped into large
      storage tanks until it is distributed in bottles, pipelines or tank trucks
      to
      end users and distributors.





Inland
      infrastructure development has not kept pace with coastal development. Inland
      depot storage capacity must be expanded to serve the customers waiting for
      LPG
      service. More efficient distribution methods are also needed. The bottle
      exchange system is labor intensive, a factor that currently does not
      significantly affect overhead; but will have greater future impact as salaries
      increase.





Distribution
      of LPG via pipelines directly to end-users is very efficient; but one drawback
      is the cost to install pipeline service to each household, which is
      approximately $185.00 US per household. Some more affluent customers can afford
      to pay the installation fee up front; but most of these have already purchased
      pipeline service. Some new construction projects permit the cost of installation
      to be incorporated into the cost of the home. Most customers, however, cannot
      afford the up-front fee; but are willing and able to pay extra each month based
      on usage.





Largo
      Vista has a number of pipeline projects in various planning or construction
      phases and it is management's belief that this area is one of the most
      profitable in the long term. In November, 2002 Largo Vista’s Pipeline Project
      Number 1 was completed





5


**Index**


and
      a
      long term service contract to maintain and supply LPG to its customers along
      the
      pipeline was signed. In December of 2004, Largo Vista’s Pipeline Project Number
      2 was substantially completed. Largo Vista has also signed contracts for
      Pipeline Projects Number 3 through Number 6 (terms and details of some of the
      contracts are not finalized), all in the same area, as discussed above under
      “Business of the Issuer.” - Number 3 was completed during 2005 and Number 5 was
      completed during 2006.





**Distribution
      of LPG**





There
      are
      four primary levels of LPG distribution:





Major
      LPG
      Companies


Major
      LPG
      Distributors


Medium
      LPG Distributors


Small
      Independent LPG Distributors





The
      Major
      LPG companies are characterized by the following: They purchase LPG directly
      from refineries or major oil companies. They must be licensed. They have
      railroad tank cars and storage depots. They typically serve over 10,000 retail
      customers. These companies depend on distribution networks to get LPG to the
      consumers.





Major
      distributors are licensed by major LPG companies and generally serve more than
      4,000 but less than 10,000 customers directly. They do not typically have any
      railroad tank cars, and have little or no storage capacity.





Medium
      distributors are also licensed by major LPG companies, generally serve more
      than
      1,500 but less than 4,000 customers directly and do not have any storage
      capacity. At this time, Largo Vista would be considered as a medium
      distributor.





Small
      independent distributors are those who may or may not be licensed, do not have
      any relationship or loyalty to any major oil company or distributor and usually
      serve less than 1,500 customers.





Since
      all
      of these distributors serve a customer base, Zunyi is actively recruiting them
      on an ongoing basis.





The
      majority of Largo Vista's customer base is serviced with the help of agents
      and
      entity users. Largo Vista has a number of agents that are independent dealers
      who exclusively represent the Company in an outlying county area that is
      difficult for the Company to access on a regular basis. The consumers serviced
      by the agent pay retail prices. The Company pays the agent a fee for his
      services and the agent carries his own overhead expenses. As the LPG market
      was
      developing in the early 1990's, the Company was seeking to develop a customer
      base in the most efficient and effective manner possible, and, as a result,
      began to cultivate the "entity" user. Entity users were companies in other
      industries, already providing housing for their employees who also desired
      to
      provide a convenience to their workers by distributing LPG as an additional
      service. These entity users developed into distribution service to consumers
      who
      paid retail prices. As the market further developed, the entity user also began
      to be a distribution outlet to other consumers in the local area that were
      not
      affiliated with the entity company. Today, the Company is actively seeking
      to
      cultivate and develop additional entity users to expand the consumer
      base.





6


**Index**


**Raw
      Materials**





The
      Chinese market is unique compared to other Asian countries. Japan and Korea
      seek
      security of supply through regular term contracts supported by long-term
      relationships, but in China, low price and bargaining is the driving force
      for
      LPG purchases.





When
      purchasing LPG, Largo Vista must weigh various factors including quality of
      LPG,
      price, and transportation costs. It generally purchases from domestic sources
      inside China where prices are very low, but transportation costs are
      higher.





Cost
      of
      goods can fluctuate widely and rapidly and can cause cash flow problems.





**Competition**





The
      LPG
      industry in the city of Zunyi, Guizhou Province, consists of three major LPG
      companies with storage facilities that sell LPG in both the retail and wholesale
      markets. All three companies depend on a network of distributors to help reach
      and service the needs of their customers. Two are privately owned and operated
      and the other is state owned. Competition is based principally on price and
      service; however relationship and reputation are also important to consumers
      of
      LPG.





LPG
      retail market prices have been relatively unstable during recent years,
      characterized by oversupply and cutthroat competition.





In
      the
      residential wholesale market, many independent "black market" dealers have
      been
      operating without a license, and have ignored safety regulations. Another
      flagrant violation of consumer fairness is the practice of short-filling
      bottles. The "black market" dealer typically will fill a bottle with 10kg of
      LPG, representing that it has 13.5kg of LPG. Short filling has permitted the
      Company's competition to charge lower prices and unfairly compete with Largo
      Vista. This practice of cheating the consumer has been prevalent over the past
      several years. Largo Vista challenges customers to be aware of what they are
      paying for by implementing of a "weight comparison program." The program permits
      the consumer to weigh their bottles to expose the "short-fill"
      problem.





Largo
      Vista competes with others on both reputation and service. To differentiate
      itself from its competition, Largo Vista stresses a long-term relationship
      both
      with the residential user and with the distributor to help them bring in and
      keep new customers. Its reputation is excellent and is backed up by a record
      of
      good service, with the understanding that Largo Vista can be relied upon to
      deliver honest weights and measures.





**Governmental
      Regulation**





Largo
      Vista’s operations in China are regulated on a day-to-day basis by the Zunyi
      municipal government, which oversees all companies licensed to do business
      and
      enforces rules and regulations in the market place. The Zunyi government faces
      many problems in this rapidly emerging chaotic market including the existence
      of
      many unlicensed small distributors, violations of safety regulations and short
      filled bottles. Local government is working to correct some of these more
      flagrant violations.





**Patents,
      Trademarks & Licenses**




The
      Company does not currently own any patents or trademarks.





7


**Index**


**Employees**





Largo
      Vista has no employees in the United States and relies on outside consultants
      for legal, accounting and organizational services as needed. Operations in
      Zunyi
      and Wuhan have a total of 15 employees, including management, all of whom are
      full-time employees.





**Item
              1A.**
            **CAUTIONARY
                STATEMENTS REGARDING FUTURE RESULTS,
                FORWARD-LOOKING INFORMATION AND CERTAIN IMPORTANT FACTORS**





Largo
      Vista makes written and oral statements from time to time regarding its business
      and prospects, such as projections of future performance, statements of
      management's plans and objectives, forecasts of market trends, and other matters
      that are forward-looking statements within the meaning of Section 27A of the
      Securities Act of 1933. Statements containing the words or phrases "will likely
      result," "are expected to," "will continue," "is anticipated," "estimates,"
      "projects," "believes," "expects," "anticipates," "intends," "target," "goal,"
      "plans," "objective," "should" or similar expressions identify forward-looking
      statements, which may appear in documents, reports, filings with the Securities
      and Exchange Commission, news releases, written or oral presentations made
      by
      officers or other representatives made by Largo Vista to analysts, stockholders,
      investors, news organizations and others, and discussions with management and
      other representatives of Largo Vista. For such statements, Largo Vista claims
      the protection of the safe harbor for forward-looking statements contained
      in
      the Private Securities Litigation Reform Act of 1995.





Largo
      Vista’s future results, including results related to forward-looking statements,
      involve a number of risks and uncertainties. No assurance can be given that
      the
      results reflected in any forward-looking statements will be achieved. Any
      forward-looking statement made by or on behalf of Largo Vista speaks only as
      of
      the date on which such statement is made. Largo Vista’s forward-looking
      statements are based upon assumptions that are sometimes based upon estimates,
      data, communications and other information from suppliers, government agencies
      and other sources that may be subject to revision. Except as required by law,
      Largo Vista does not undertake any obligation to update or keep current either
      (i) any forward-looking statement to reflect events or circumstances arising
      after the date of such statement, or (ii) the important factors that could
      cause
      Largo Vista’s future results to differ materially from historical results or
      trends, results anticipated or planned by Largo Vista, or which are reflected
      from time to time in any forward-looking statement which may be made by or
      on
      behalf of Largo Vista.





In
      addition to other matters identified or described by Largo Vista from time
      to
      time in filings with the SEC, there are several important factors that could
      cause Largo Vista’s future results to differ materially from historical results
      or trends, results anticipated or planned by Largo Vista, or results that are
      reflected from time to time in any forward-looking statement that may be made
      by
      or on behalf of Largo Vista. Some of these important factors, but not
      necessarily all important factors, include the following:





**RISK
      FACTORS CONCERNING OUR BUSINESS**




Largo
      Vista has a history of losses, expects to incur additional losses and may never
      achieve profitability. During Largo Vista’s fiscal year ended December 31, 2006,
      the Company generated only $701,727 of revenue and realized a net loss $240,948.
      Largo Vista has yet to generate profits from operations and consequently is
      unable to predict with any certainty whether its operations will become a
      commercially viable business. In order for Largo Vista to become profitable,
      it
      will need to generate and sustain a significant amount of revenue while
      maintaining reasonable cost and expense levels.




8


**Index**


Largo
      Vista may require additional capital in order to meet its projected operating
      costs and, if necessary, to finance future losses from operations as it
      endeavors to build revenue, but largo vista does not have any commitments to
      obtain such capital and cannot assure you that it will be able to obtain
      adequate capital as and when required. Should Largo Vista be required to sell
      additional equity securities or additional debt securities convertible into
      equity, there will be additional dilution to Largo Vista’s
      shareholders.





Largo
      Vista is dependant on the stability of economic relations with the People’s
      Republic of China for its current revenues. Nearly all of Largo Vista’s current
      revenues are generated in China. Largo Vista cannot predict or guarantee the
      stability of economic relations with China; and, therefore the operations of
      Largo Vista are subject to disruption from a number of political and economic
      causes.





Largo
      Vista is owed a substantial portion of its accounts receivable from the single
      source of the government of the city of Zunyi, China. Pursuant to the its
      agreement with Largo Vista in February 2002, the government of Zunyi paid Largo
      Vista 50% of the total contracted installation price, or $154,438. The Zunyi
      government also has an obligation to collect the remaining 50% of contract
      price
      from the households obtaining LPG from the pipeline on behalf of the Company.
      Management determined that the collectibility and length of time to collect
      the
      amount due can not be reasonably assured. Accordingly, revenues are recognized
      as collected for the project. In May 2003, the Company entered into its Second
      Agreement (“Second Agreement”) with the government of Zunyi to design and
      install more LPG pipeline systems in residential areas in the city of Zunyi,
      China. Pursuant to the Second Agreement, the government of Zunyi is obligated
      to
      pay to the Company 50% of the total contract price, or $87,258, which was paid
      during 2004. Management determined that the collectibility and length of time
      to
      collect the amount due cannot be reasonably assured. Accordingly, revenues
      are
      recognized as collected for the project.





Should
      Largo Vista choose to grow through acquisitions, it will experience the
      uncertainties associated with such a strategy. As part of Largo Vista’s business
      strategy in the future, Largo Vista could acquire assets and businesses relating
      to or complementary to its operations. Any acquisitions by Largo Vista would
      involve risks commonly encountered in acquisitions of companies. These risks
      would include, among other things, the following: Largo Vista could be exposed
      to unknown liabilities of the acquired companies; Largo Vista could incur
      acquisition costs and expenses higher than it anticipated; fluctuations in
      Largo
      Vista's quarterly and annual operating results could occur due to the costs
      and
      expenses of acquiring and integrating new businesses or technologies; Largo
      Vista could experience difficulties and expenses in assimilating the operations
      and personnel of the acquired businesses; Largo Vista's ongoing business could
      be disrupted and its management's time and attention diverted; Largo Vista
      could
      be unable to integrate successfully.





**Item
              2.**
            **DESCRIPTION
                OF
                PROPERTY**





Our
      principal executive and administrative offices are located in Newport Beach,
      California which consist of 193 square feet. The offices are occupied on a
      month-to-month lease at a rate of $755 per month. We believe these facilities
      are adequate and suitable to meet our needs for the foreseeable
      future.











9


**Index**


Largo
      Vista maintains a representative office in Wuhan, Hubei Province, China, which
      include three offices and access to common areas. The facilities are leased
      from
      Proton Enterprises.





Largo
      Vista, through a contract agreement with Jiahong Gas Co., Ltd., operated its
      primary service in the City of Zunyi, Guizhou Province. The Company also leases
      office facilities and four distribution stores in Zunyi City.





**Item
              3.**
            **LEGAL
                PROCEEDINGS**





In
      August
      2005, the staff of the Los Angeles office of the Securities and Exchange
      Commission advised Largo Vista that it had initiated a formal, non-public
      inquiry.  Largo Vista and its officers have received document
      subpoenas seeking documents related to the previously announced contract between
      Largo Vista and Shanghai Oil and trading in the securities of Largo Vista,
      among
      other things.





While
      the
      Company is confident in its practices, there is a risk that an enforcement
      proceeding will be recommended by the staff of the Commission as a result of
      this formal investigation. An enforcement proceeding could include allegations
      by the SEC that the Company and/or its officers violated, among
      others, the anti-fraud and books and records provisions of
      federal securities laws, and the rules thereunder. It cannot be predicted
      with certainty what the nature of such enforcement proceeding would be, the
      type
      of sanctions that might be sought, or what the likelihood would be of reaching
      settlement. The Company has been and expects to continue to cooperate with
      the
      ongoing SEC investigation.




On
        March
        20, 2007, Largo Vista Group, Ltd. (the “Company”), received a Wells Notice
        letter from the staff of the U.S. Securities and Exchange Commission (the
“SEC”
or “Commission”) flowing from a formal investigation conducted by the SEC. The
        Company disclosed on August 22, 2005 that the SEC commenced a non-public,
        formal
        investigation against the Company.
  The
        Wells
        Notice to the Company indicates that the staff is considering recommending
        that
        the Commission bring a civil injunctive action against the Company for alleged
        violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b)
        and
        13(a) of the Securities and Exchange Act of 1934 and Rules 10b-5, 12b-20,
        13a-1,
        13a-11, 13a-13, 13a-14 and 13b2-2 thereunder.
  The
        Wells
        Notice also indicates that the Commission may seek injunction, civil penalty
        and
        disgorgement (including prejudgment interest) against the Company.
  The
        Company has been informed that Shan Deng, a Director, President and Chief
        Executive Officer of the Company and Albert Figueroa, a Director and Secretary
        of the Company, have also received Wells Notice letters from the SEC indicating
        that the staff is considering recommending that the Commission bring a civil
        injunctive action against both of them for alleged violations of Section
        17(a)
        of the Securities Act of 1933 and Sections 10(b) of the Securities and Exchange
        Act of 1934 and Rules 10b-5 thereunder and aiding and abetting violations
        of
        Section 13(a) and Rules 12b-20, 13a-1, 13a-11, 13a-13, 13a-14 and 13b2-2
        thereunder. Mr. Deng’s Wells Notice indicates that the Commission may seek a
        permanent injunction, disgorgement (with prejudgment interest) a civil penalty
        and an officer and director bar against Mr. Deng. Mr. Figueroa’s Wells Notice
        indicates that the Commission may seek a permanent injunction, a civil penalty
        and an officer and director bar against Mr. Figueroa.
  Under
        the
        SEC procedures, a Wells Notice from the SEC affords recipients an opportunity
        to
        present information and defenses in response to the SEC’s Division of
        Enforcement staff prior to the staff making its formal recommendation to
        the
        Commission on whether any action should be authorized. There can be no assurance
        that the SEC will not bring a civil enforcement action against the Company
        or
        its officers.
  The
        Company continues to cooperate fully with the SEC investigation relating
        to this
        matter. The Company is unable to predict the extent of its ultimate liability
        with respect to any and all future securities matters. The costs and other
        effects of any future litigation, government investigations, legal and
        administrative cases and proceedings, settlements, judgments and investigations,
        claims and changes in this matter could have a material adverse effect on
        the
        Company’s financial condition and operating results.


**Item
              4.**
            **SUBMISSION
                OF MATTERS TO A VOTE OF SECURITY
                HOLDERS**





No
      matters were submitted during the 4 th quarter
      of the fiscal year covered by this report to a vote of our security
      holders.





**PART
      II**





**Item
              5.**
            **MARKET
                FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND
                SMALL BUSINESS ISSUER PURCHASES OF EQUITY
                SECURITIES**





MARKET
      INFORMATION




The
      Company's Common Stock is quoted on the OTC Bulletin Board under the symbol
      LGOV.





The
      following table sets forth the range of high and low bid information for the
      Company's Common Stock for each quarterly period in 2006 and 2005. These
      quotations are believed to be representative inter-dealer prices, without retail
      mark-up, markdown or commission, and may not represent actual
      transactions.





10


**Index**




**Bid****High**
            
            **Low**4th
                Quarter 2006
            $
                0.04
            
            $
                0.023rd
                Quarter 2006
            $
                0.05
            
            $
                0.032nd
                Quarter 2006
            $
                0.05
            
            $
                0.031st
                Quarter 2006
            $
                0.08
            
            $
                0.034th
                Quarter 2005
            $0.05
            
            $
                0.033rd
                Quarter 2005
            $
                0.11
            
            $
                0.042nd
                Quarter 2005
            $
                0.20
            
            $
                0.101st
                Quarter 2005
            $
                0.33
            
            $
                0.05





As
      of
      March 16, 2007, the Company had approximately 677 shareholders on
      record.





We
      have
      never paid a cash dividend and do not anticipate doing so in the foreseeable
      future.





RECENT
      SALES OF UNREGISTERED SECURITIES:




On
      April
      8, 2006, we issued an aggregate of 821,613 shares of Common Stock to Albert
      Figueroa, Corporate Secretary and a Director for 2005 consulting services valued
      at $60,000.





On
      April
      8, 2006, we issued an aggregate of 68,634 shares of Common Stock to Albert
      Figueroa, Corporate Secretary and a Director in exchange for $4,804 of 2005
      expenses paid on behalf of the Company.





On
      April
      8, 2006, we issued an aggregate of 710,532 shares of Common Stock, for
      consulting services starting July, 2005 to March, 2006 valued at
      $27,000.





On
      April
      8, 2006, we issued an aggregate of 2,091,666 shares of Common Stock to several
      private investors, valued at $42,650.





On
      April
      8, 2006, we issued an aggregate of 992,632 shares of Common Stock for attorney
      services from August 21, 2005 to December 31, 2006 valued at $28,290.





On
      April
      18, 2006, we issued an aggregate of 4,371,428 shares of Common Stock to several
      private investors, valued at $76,500.





On
      July
      11, 2006, we issued an aggregate of 256,081 shares of Common Stock, for 2006
      consulting services valued at $9,000.





On
      August
      30, 2006, we issued an aggregate of 1,601,871 shares of Common Stock to several
      private investors, valued at $24,000.





On
      October 6, 2006, we issued an aggregate of 279,494 shares of Common Stock,
      for
      2006 consulting services valued at $9,000.





11


**Index**





All
        stock
        issuances were conducted pursuant to section 4(2) under the 1933 Act without
        the
        involvement of underwriters. Stock issuances other than for cash were valued
        at
        market, generally determined by the low bid quotation.






















































12


**Index**




**Item
              6.**
            **MANAGEMENT'S
                DISCUSSION AND ANALYSIS OR PLAN OF
                OPERATION**





**Cautionary
      Statement Regarding Forward-Looking Information**





The
      following is a discussion of the financial condition and results of operations
      of the Company as of the date of this Annual Report. This discussion and
      analysis should be read in conjunction with the accompanying audited
      Consolidated Financial Statements of the Company including the Notes thereto
      which are included elsewhere in this Form 10-KSB.





**Overview**





Largo
      Vista is in the business of supplying liquid petroleum gas (LPG) through
      pipelines and in bottles to consumers in the People’s Republic of China. Largo
      Vista constructs and operates LPG pipelines in the City on Zunyi, China. Almost
      all of Largo Vista’s current pipeline projects are under exclusive 40-year
      supply contracts.





























13


**Index**


**Arrangement
      to Sell Stock to Shanghai Offshore Oil Group**





On
      March
      18, 2005, Largo Vista signed an Agreement and Assignment of Certain Contractual
      Rights and Benefits (the “Agreement”), with Shanghai Offshore Oil Group (HK)
      Co., Ltd. (“Shanghai Oil”).  Under the Agreement, Shanghai Oil assigned to
      Largo Vista all of its rights to receive payments under a prior contract with
      Asiacorp Investment Holding Ltd. (“Asiacorp”), under which Shanghai Oil would
      purchase from Asiacorp fuel oil produced in Russia and deliver it to entities
      in
      The People’s Republic of China at a rate of thirty thousand (30,000) metric tons
      per month for three (3) months and continue for the following thirty-three
      (33)
      months at a rate of two hundred thousand (200,000) metric tons per month, for
      a
      total of six million, six hundred ninety thousand metric tons. (the “Asiacorp
      Contract”).  The Agreement states that deliveries under the Asiacorp
      Contract were to begin no later than May 18, 2005.




The
      Agreement provides that Largo Vista will receive all of the profit realized
      by
      Shanghai Oil from the sale of fuel oil it acquires under the Asiacorp Contract,
      after the deduction of costs associated with the purchase, transportation and
      sale of the fuel oil, with a minimum payment of two dollars ($2.00) per metric
      ton. In exchange for the receipt of payment from Shanghai Oil, Largo Vista
      agreed to issue to Shanghai Oil one hundred million (100,000,000) shares of
      Largo Vista’s Common Stock, deliverable in three equal increments over the term
      of the Agreement, which amounts may be reduced based upon the amount, if any,
      of
      Shanghai Oil’s actual payments from its sale of the fuel oil.  However,
      Largo Vista has not received any payments from Shanghai Oil under the Agreement,
      and cannot give absolute assurances that any fuel oil will be delivered under
      the Asiacorp Contract.





Payments
      received by Largo Vista based upon Shanghai Oil’s sale of the fuel oil, if
      any, will be accounted for as a capital transaction as Largo Vista’s
      transaction with Shanghai Oil represents, in substance, a stock subscription
      under which Largo Vista would receive approximately $0.13 per share if the
      total
      projected amount of fuel oil is sold and the minimum guaranteed profit margin
      is
      paid to Largo Vista.





During
      June of 2005, Shanghai Oil notified Largo Vista that it had not received any
      fuel oil under the Asiacorp Contract.  As Largo Vista had not received any
      payments from Shanghai Oil, it did not release any of its shares of Common
      Stock
      to Shanghai Oil.  On approximately July 1, 2005, Largo Vista sent Shanghai
      Oil a written “Demand to Cure Delayed-Performance” giving Shanghai Oil until
      July 18, 2005, later extended to August 31, 2005, to make its
      first
      payment to Largo Vista under the Agreement.  Although Shanghai Oil has
      indicated to Largo Vista that it intends to deliver payment pursuant to the
      Agreement, either through performance under the Asiacorp Contract or through
      another contract in its place, investors should understand that delivery is
      far
      from certain. As of the date of this annual report, Largo Vista has not received
      any payments from Shanghai Oil nor has it released any of the shares deliverable
      to Shanghai Oil.





Resolution
      with Shanghai Oil remains highly uncertain, and Largo Vista -does not foresee
      any economic benefit materializing from the Agreement. While Largo Vista has
      reserved its rights to pursue all available remedies it may have against
      Shanghai Oil, actually pursuing these remedies may be prohibitively expensive.
      On December 22, 2005, Largo Vista’s board of directors unanimously adopted a
      resolution to cancel the 97,364,597 shares that were issued Shanghai Oil under
      the Agreement and to return those shares to Largo Vista’s reserve of authorized
      but unissued shares of capital stock.





14


**Index**


**Basis
      of Presentation**





The
      accompanying consolidated financial statements, included elsewhere in this
      Annual Report on Form 10-KSB, have been prepared in conformity with accounting
      principles generally accepted in the United States of America, which contemplate
      continuation as a going concern. Largo Vista has incurred a net loss of $240,948
      for the year ended December 31, 2006 and as of December 31, 2006, had a working
      capital deficiency of $1,048,576.





These
      conditions raise substantial doubt as to Largo Vista’s ability to continue as a
      going concern. These financial statements do not include any adjustments that
      might result from the outcome of this uncertainty. These financial statements
      do
      not include any adjustments relating to the recoverability and classification
      of
      recorded asset amounts, or amounts and classification of liabilities that might
      be necessary should Largo Vista be unable to continue as a going
      concern.





**Critical
      Accounting Policies and Estimates**





The
      preparation of our financial statements in conformity with accounting principles
      generally accepted in the United States requires us to make estimates and
      judgments that affect our reported assets, liabilities, revenues, and expenses,
      and the disclosure of contingent assets and liabilities. We base our estimates
      and judgments on historical experience and on various other assumptions we
      believe to be reasonable under the circumstances. Future events, however, may
      differ markedly from our current expectations and assumptions. While there
      are a
      number of significant accounting policies affecting our consolidated financial
      statements; we believe the following critical accounting policies involve the
      most complex, difficult and subjective estimates and judgments.





**Stock-Based
      Compensation**




Prior
        to
        the January 1, 2006 adoption of the Financial Accounting Standards Board
        (“FASB”) Statement No. 123(R), “Share-Based Payment” (“SFAS 123R”), the Company
        accounted for stock-based compensation using the intrinsic value method
        prescribed in Accounting Principles Board (“APB”) Opinion No. 25, “Accounting
        for Stock Issued to Employees,” and related interpretations. Accordingly,
        because the stock option grant price equaled the market price on the date
        of
        grant, and any purchase discounts under the Company’s stock purchase plans were
        within statutory limits, no compensation expense was recognized by the Company
        for stock-based compensation. As permitted by SFAS No. 123, “Accounting for
        Stock-Based Compensation” (“SFAS 123”), stock-based compensation was included as
        a pro forma disclosure in the notes to the consolidated financial
        statements.
  Effective
        January 1, 2006, the beginning of the Company’s first fiscal quarter of 2006,
        the Company adopted the fair value recognition provisions of SFAS 123R, using
        the modified-prospective transition method. Under this transition method,
        stock-based compensation expense was recognized in the consolidated financial
        statements for granted, modified, or settled stock options. Compensation
        expense
        recognized included the estimated expense for stock options granted on and
        subsequent to January 1, 2006, based on the grant date fair value estimated
        in
        accordance with the provisions of SFAS 123R, and the estimated expense for
        the
        portion vesting in the period for options granted prior to, but not vested
        as of
        January 1, 2006, based on the grant date fair value estimated in accordance
        with
        the original provisions of SFAS 123. Results for prior periods have not been
        restated, as provided for under the modified-prospective method.





15


**Index**


**Revenue
      Recognition**





For
      revenue from product sales, the Company recognizes revenue in accordance with
      Staff Accounting Bulletin No. 104, REVENUE RECOGNITION ("SAB104"), which
      superseded Staff Accounting Bulletin No. 101, REVENUE RECOGNITION IN FINANCIAL
      STATEMENTS ("SAB101"). SAB 101 requires that four basic criteria must be met
      before revenue can be recognized: (1) persuasive evidence of an arrangement
      exists; (2) delivery has occurred; (3) the selling price is fixed and
      determinable; and (4) collectibility is reasonably assured. Determination of
      criteria (3) and (4) are based on management's judgments regarding the fixed
      nature of the selling prices of the products delivered and the collectibility
      of
      those amounts. Provisions for discounts and rebates to customers, estimated
      returns and allowances, and other adjustments are provided for in the same
      period the related sales are recorded. The Company defers any revenue for which
      the product has not been delivered or is subject to refund until such time
      that
      the Company and the customer jointly determine that the product has been
      delivered or no refund will be required.





SAB
      104
      incorporates Emerging Issues Task Force 00-21 ("EITF 00-21"),
      MULTIPLE-DELIVERABLE REVENUE ARRANGEMENTS. EITF 00-21 addresses accounting
      for
      arrangements that may involve the delivery or performance of multiple products,
      services and/or rights to use assets. The effect of implementing EITF 00-21
      on
      the Company's consolidated financial position and results of operations was
      not
      significant.





The
      Company generally recognizes revenue upon delivery of LPG to the customer.
      Revenue associated with shipments of petroleum products is recognized when
      title
      passes to the customer.




In
      February 2002, the Company entered into an agreement (“Agreement”) with Zunyi
      Municipal Government (“Government”) to design and install LPG pipeline systems
      in residential areas in the city of Zunyi, China on behalf of Government. In
      exchange for installing the pipeline, the Agreement provides for the Company
      to
      be the sole LPG supplier for those households. The Company substantially
      completed the installation of the LPG pipeline as of December 31, 2002. Pursuant
      to the Agreement, Government





16


**Index**


had
      paid
      to the Company 50% of the total contracted installation price, and the Company
      has to collect the remaining 50% of contract price directly from the customers.
      The Company’s management has determined that the collectibility and length of
      time to collect the amount due from customers cannot be reasonably assured.
      Accordingly, revenues are recognized as collected in connection with the portion
      of the contracted price to be collected from customers.




In
        May
        2003, the Company entered into its Second Agreement (“Second Agreement”) with
        Government to design and install more LPG pipeline systems in residential
        areas
        in the city of Zunyi, China on behalf of Government. In exchange for installing
        the pipeline, the Second Agreement provides for the Company to be the sole
        LPG
        supplier for those households. Pursuant to the Second Agreement, Government
        is
        obligated to pay to the Company 50% of the total contracted installation
        price,
        and the Company has to collect the remaining 50% of contracted price directly
        from the customers. The Company management has determined that the
        collectibility and length of time to collect the remaining contracted price
        due
        from customers can not be reasonably assured. Accordingly, revenues are
        recognized as collected in connection with the portion of contracted price
        to be
        collected from customers.





17


**Index**


**Results
      of Operations**





The
      following selected financial information has been derived from the Company's
      consolidated financial statements. The information set forth below is not
      necessarily indicative of results of future operations and cash flows and should
      be read in conjunction with the consolidated financial statements and notes
      thereto appearing elsewhere in this Form 10-KSB.





The
      Company's 2006 revenues of $701,727 are attributable to liquid petroleum gas
      sales and pipeline projects at its Zunyi facility located in South China. This
      is a 91% increase from the revenues of $367,108 in 2005. This
      is
      mainly attributable to pipeline project number 5 and number 7 completed during
      the fiscal year 2006.There was no business of big wholesales of LPG in
      the year 2006.





The
      following table shows the revenues reported by the Company for fiscal years
      2005
      and 2006 broken down by LPG Sales, Pipeline Projects and Pipeline Operations,
      in
      U. S. Dollars:





**Fiscal
                Year**
            **LPG
                Sales**
            **Pipeline
                Projects**
            **Pipeline
                Operations**
            **TOTAL**2005
            $
                308,505
            $
                28,567
            $
                30,036
            $
                367,1082006
            $
                375,758
            $
                295,698
            $
                30,271
            $
                701,727





The
      Company incurred costs of sales of $586,906,
      or 83.6% of sales in connection with the LPG revenues during 2006, compared
      to
      $341,235, or 93.0% in 2005. This increase can be attributed to fluctuation
      in
      the cost of pipeline projects. This resulted in an increase in gross profit
      to
      16% in 2006 from 7% in 2005.





Selling
      and administrative expenses decreased from $334,382 during 2005 to $313,883
      during 2006, a decrease of 6.1%. This decrease was due primarily to lowered
      attorney, consulting and other professional fees.





Interest
      expense was $38,783 for 2006 compared to $37,623 in 2005.





The
      net
      loss from operations decreased to $240,948, or 39.9% in 2006 from $345,208,
      or
      94.0%, in 2005.





**Currency
      Consideration**





The
      Company translates the foreign currency financial statements of its Chinese
      subsidiary in accordance with the requirements of Statement of Financial
      Accounting Standards No. 52, "Foreign Currency Translation." Assets and
      liabilities are translated at the rates of exchange at the balance sheet date,
      and related revenue and expenses are translated at average monthly exchange
      rates in effect during the period. Resulting translation adjustments are
      recorded as a separate component in stockholders' equity. Foreign currency
      transaction gains and losses are included in the statement of
      income.





18


**Index**


**Liquidity
      and Capital Resources**


As
        of
        December 31, 2006, the Company had a working capital deficit of $1,048,576.
        We
        generated a negative cash flow of $ 116,838 from
        operating activities during 2006. This was a result of our net loss of $240,948,
        adjusted principally for $3,103 of depreciation, common stock issued in exchange
        for $ 38,140 of
        services, $72,645 of increases in assets, and $ 155,512  of increase
        in accrued and other liabilities. We met our cash requirements during the
        year
        primarily through the sale of $ 148,149 of
        private placement stock purchases. We repaid $56,473 of related party
        loans.




The
      Company has experienced significant operating losses from inception and has
      financed its activities to date through cash advances from affiliates and sales
      of its Common Stock. Availability, source, amount and terms of any additional
      financing are uncertain at this time, and by no means assured.





The
      Company believes it will require at least an additional $1,000,000 of new
      capital in order to fund its plan of operations over the next 12 months. The
      Company expects to fund its working capital requirements over the next 12 months
      from additional advances from its affiliates and the sale of its Common
      Stock.





The
      Company's independent certified public accountants have stated in their report
      included in the Company's December 31, 2006 Form 10-KSB, that the Company has
      incurred operating losses and that the Company is dependent upon management's
      ability to develop profitable operations. These factors among others may raise
      substantial doubt about the Company's ability to continue as a going
      concern.





**Recent
      accounting pronouncements**





In
      February 2006, the FASB issued SFAS No. 155. “ *Accounting
      for certain Hybrid Financial Instruments an amendment of FASB Statements No.
      133
      and 140,”* or SFAS
      No. 155. SFAS No. 155 permits fair value remeasurement for any hybrid financial
      instrument that contains an embedded derivative that otherwise would require
      bifurcation, clarifies which interest-only strips and principal-only strips
      are
      not subject to the requirements of Statement No. 133, establishes a requirement
      to evaluate interests in securitized financial assets to identify interests
      that
      are freestanding derivatives or that are hybrid financial instruments that
      contain an embedded derivative requiring bifurcation, clarifies that
      concentrations of credit risk in the form of subordination are not embedded
      derivatives, and amends SFAS No. 140 to eliminate the prohibition on a
      qualifying special purpose entity from holding a derivative financial instrument
      that pertains to a beneficial interest other than another derivative financial
      instrument. SFAS 155 is effective for all financial instruments acquired or
      issued after the beginning of an entity’s first fiscal year that begins after
      September 15, 2006. We do not expect the adoption of SFAS 155 to have a material
      impact on our consolidated financial position, results of operations or cash
      flows.





In
      March
      2006, the FASB issued FASB Statement No. 156, Accounting for Servicing of
      Financial Assets - an amendment to FASB Statement No. 140. Statement 156
      requires that an entity recognize a servicing asset or servicing liability
      each
      time it undertakes an obligation to service a financial asset by entering into
      a
      service contract under certain situations. The new standard is effective for
      fiscal years beginning after September 15, 2006. The adoption of SFAS No.156
      did
      not have a material impact on the Company's financial position and results
      of
      operations.





In
      July
      2006, the FASB issued Interpretation No. 48 (FIN 48). “ *Accounting
      for uncertainty in Income Taxes”.* FIN 48
      clarifies the accounting for Income Taxes by prescribing the minimum recognition
      threshold a tax position is required to meet before being recognized in the
      financial statements. It also provides guidance on derecognition, measurement,
      classification, interest and penalties, accounting in interim periods,
      disclosure and transition and clearly scopes income taxes out of SFAS 5,
“ *Accounting
      for Contingencies”.* FIN
      48 is
      effective for fiscal years beginning after December 15, 2006. The
      Company does not expect adoption of this standard will have a material impact
      on
      its financial position, operations or cash flows.




In
      September 2006 the Financial Account Standards Board (the “FASB”) issued its
      Statement of Financial Accounting Standards 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 applies under other accounting
      pronouncements that require or permit fair value measurements, the Board having
      previously concluded in those accounting pronouncements that fair value is
      the
      relevant measurement attribute. Accordingly, this Statement does not require
      any
      new fair value measurements. However, for some entities, the application of
      this
      Statement will change current practice. FAS 157 effective date is for fiscal
      years beginning after November 15, 2007. The Company does not expect adoption
      of
      this standard will have a material impact on its financial position, operations
      or cash flows.




In
      September 2006 the FASB issued its Statement of Financial Accounting Standards
      158 “Employers’ Accounting for Defined Benefit Pension and Other Postretirement
      Plans”. This Statement improves financial reporting by requiring an employer to
      recognize the overfunded or underfunded status of a defined benefit
      postretirement plan (other than a multiemployer plan) as an asset or liability
      in its statement of financial position and to recognize changes in that funded
      status in the year in which the changes occur through comprehensive income
      of a
      business entity or changes in unrestricted net assets of a not-for-profit
      organization. This Statement also improves financial reporting by requiring
      an
      employer to measure the funded status of a plan as of the date of its year-end
      statement of financial position, with limited exceptions. The effective date
      for
      an employer with publicly traded equity securities is as of the end of the
      fiscal year ending after December 15, 2006. The Company does not expect adoption
      of this standard will have a material impact on its financial position,
      operations or cash flows




19


**Index**


In
      February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for
      Financial Assets and Financial Liabilities.” SFAS 159 permits entities to choose
      to measure many financial instruments, and certain other items, at fair value.
      SFAS 159 applies to reporting periods beginning after November 15, 2007. The
      adoption of SFAS 159 is not expected to have a material impact on the Company’s
      financial condition or results of operations.





**Off-Balance
      Sheet Arrangements**





Largo
      Vista currently has no off-balance sheet arrangements that have or are
      reasonably likely to have a current or future effect on its financial condition,
      revenue or expenses, results of operations, liquidity, capital expenditures
      or
      capital resources that is material to investors.








































20


**Index**


**SECURITIES
      AND EXCHANGE COMMISSION**





**WASHINGTON,
      D.C. 20549**











**FINANCIAL
      STATEMENTS AND SCHEDULES**





**DECEMBER
      31, 2006 AND 2005**











**FORMING
      A PART OF ANNUAL REPORT**


**PURSUANT
      TO THE SECURITIES EXCHANGE ACT OF 1934**








**LARGO
      VISTA GROUP, LTD.**














**Index**


**LARGO
      VISTA GROUP, LTD.**





**Index
      to Financial Statements**







PageReport
                of Independent Registered Certified Public
                Accounting Firm
            F-2Consolidated
                Balance Sheets at December 31, 2006 and
                2005
            F-3Consolidated
                Statements of Operations for the
                years
              ended
                December 31, 2006 and 2005
            F-4Consolidated
                Statements of Deficiency in Stockholders’
                Equity for
              the
                years ended December 31, 2006 and 2005
            F-5Consolidated
                Statements of Cash Flows for the
                years
              ended
                December 31, 2006 and 2005
            F-6Notes
                to Consolidated Financial Statements
            F-7~F-18










**Index**





**RUSSELL
      BEDFORD STEFANOU MIRCHANDANI LLP**


**Certified
      Public Accountants**




**REPORT
      OF INDEPENDENT REGISTERED CERTIFIED PUBLIC ACCOUNTING
      FIRM**








To
      the
      Board of Directors


Largo
      Vista Group, Ltd.


Newport
      Beach, California





We
      have
      audited the accompanying consolidated balance sheets of Largo Vista Group,
      Ltd.
      and its wholly-owned subsidiaries (the “Company”) as of December 31, 2006 and
      2005 and the related consolidated statements of operations, deficiency in
      stockholders’ equity, and cash flows for each of the two years in the period
      ended December 31, 2006. These financial statements are the responsibility
      of
      the Company’s management. Our responsibility is to express an opinion on these
      financial statements based upon our audits.





We
      conducted our audits in accordance with standards of the Public Company
      Accounting Oversight Board (United States of America). Those standards require
      that we plan and perform the audit to obtain reasonable assurance about whether
      the financial statements are free of material misstatements. An audit includes
      examining, on a test basis, evidence supporting the amounts and disclosures
      in
      the financial statements. An audit also includes assessing the accounting
      principles used and significant estimates made by management, as well as
      evaluating the overall financial statement presentation. We believe our audits
      provide a reasonable basis for our opinion.





In
      our
      opinion, the consolidated financial statements referred to above present fairly,
      in all material respects, the financial position of the Company as of December
      31, 2006 and 2005, and the results of its operations and its cash flows for
      each
      of the two years in the period ended December 31, 2006 in conformity with
      accounting principles generally accepted in the United States of
      America.





As
      discussed in Note A to the consolidated financial statements, the Company
      adopted the provisions of Statement of Financial Accounting Standards No.
      123(R), “Share-Based Payment”, effective January 1, 2006.




The
      accompanying consolidated financial statements have been prepared assuming
      that
      the Company will continue as a going concern. As discussed in Note M, the
      Company is experiencing difficulty in generating sufficient cash flow to meet
      it
      obligations and sustain its operations, which raises substantial doubt about
      its
      ability to continue as a going concern. Management’s plans in regard to this
      matter are described in Note M. The financial statements do not include any
      adjustments that might result from the outcome of this uncertainty.





McLean,
                  Virginia
                March
                  19, 2007, except as to Note K(e) and N, which is as of March 30,
                  2007
              /S/
                  RUSSELL BEDFORD STEFANOU MIRCHANDANI LLP
                Russell
                  Bedford Stefanou Mirchandani LLP
                Certified
                  Public Accountants****

















F-2




**Index**





**LARGO
                VISTA GROUP, LTD.****CONSOLIDATED
                BALANCE SHEETS****DECEMBER
                31, 2006 AND 2005**2006
            
            2005**ASSETS**Current
                assets:Cash
                and cash equivalent
            
            $
            53,992
            
            $
            75,642Accounts
                receivable, net of allowance for doubtful account of $0 at December
                31,
                2006 and 2005
            
            
            187,965
            
            
            287Employee
                advances
            
            
            10,734
            
            
            11,064Inventories,
                at cost (Note C)
            
            
            21,078
            
            
            17,689Prepaid
                expenses and other
            
            
            11,672
            
            
            129,764Total
                current assets
            
            
            285,441
            
            
            234,446Property
                and equipment, at cost (Note D)
            
            
            17,017
            
            
            16,636Less:
                accumulated depreciation
            
            
            15,703
            
            
            12,6351,314
            
            
            4,001Deposits
            
            
            755
            
            
            755Total
                assets
            
            $
            287,510
            
            $
            239,202**LIABILITIES
                AND DEFICIENCY IN STOCKHOLDERS' EQUITY**Current
                Liabilities:Accounts
                payable and accrued liabilities (Note E)
            
            $
            606,927
            
            $
            546,565Notes
                payable to related parties (Notes F)
            
            
            529,473
            
            
            595,546Due
                to related parties (Notes G)
            
            
            197,617
            
            
            194,432Total
                Current Liabilities
            
            
            1,334,017
            
            
            1,336,543Commitment
                and contingencies (Note K)
            
            
            -
            
            
            -**DEFICIENCY
                IN STOCKHOLDERS' EQUITY**Preferred
                stock, $0.001 par value; 25,000,000 shares authorized, none issued
                and
                outstanding at December 31, 2006 and 2005 (Note H)
            
            
            -
            
            
            -Common
                Stock, $0.001 par value; 400,000,000 shares authorized, 288,829,354
                and
                277,635,403 shares issued and outstanding at December 31, 2006 and
                2005 ,
                respectively (Note H)
            
            
            288,829
            
            
            277,635Additional
                paid-in capital
            
            
            15,614,393
            
            
            15,344,344Subscription
                payable (Note H)
            
            
            30,000
            
            
            25,000Accumulated
                deficit
            
            
            (16,983,232
            )
            
            (16,742,284
            )Accumulated
                other comprehensive income:Foreign
                currency translation adjustment
            
            
            3,503
            
            
            (2,036
            )Deficiency
                in stockholders' equity
            
            
            (1,046,507
            )
            
            (1,097,341
            )Total
                liabilities and deficiency in stockholders' equity
            
            $
            287,510
            
            $
            239,202See
                the accompanying notes to the consolidated financial
                statements


F-3


**Index**








**LARGO
                VISTA GROUP, LTD.****CONSOLIDATED
                STATEMENTS OF OPERATIONS****FOR
                THE YEAR ENDED DECEMBER 31, 2006 AND 2005**2006
            
            2005Revenue
            
            $
            701,727
            
            $
            367,108Cost
                of sales
            
            
            586,906
            
            
            341,235Gross
                profit
            
            
            114,821
            
            
            25,873Operating
                expenses:Selling
                general and administrative
            
            
            313,883
            
            
            334,382Depreciation
            
            
            3,103
            
            
            3,076316,986
            
            
            337,458Loss
                from operations
            
            
            (202,165
            )
            
            (311,585
            )Other
                income (expenses):Other
                income, net
            
            
            -
            
            
            4,000Interest
                (expense), net
            
            
            (38,783
            )
            
            (37,623
            )Total
                other income (expenses)
            
            
            (38,783
            )
            
            (33,623
            )Loss
                from operations before income taxes
            
            
            (240,948
            )
            
            (345,208
            )Provision
                for income taxes (Note I)
            
            
            -
            
            
            -Net
                loss
            
            
            (240,948
            )
            
            (345,208
            )Other
                comprehensive income (loss): foreign currency translation income
                (loss)
            
            
            5,539
            
            
            (5,736
            )Comprehensive
                (loss)
            
            $
            (235,409
            )
            $
            (350,944
            )Loss
                per common share (basic and assuming diluted) (Note J)
            
            $
            (0.00
            )
            $
            (0.00
            )Weighted
                average shares outstanding (Note J)
            
            
            283,727,030
            
            
            277,362,170See
                the accompanying notes to the consolidated financial
                statements


F-4





**Index**





**LARGO
                VISTA GROUP, LTD.****CONSOLIDATED
                STATEMENTS OF DEFICIENCY IN STOCKHOLDERS' EQUITY****YEARS
                ENDED DECEMBER 31, 2006 AND 2005**ForeignAdditional
            
            Stock
            
            CurrencyCommon
            
            Stock
            
            Paid-In
            
            Subscription
            
            Translation
            
            AccumulatedShares
            
            Amount
            
            Capital
            
            Payable
            
            Adjustment
            
            Deficit
            
            TotalBalance,
                January 1, 2005
            
            
            269,963,856
            
            $
            269,964
            
            $
            15,184,356
            
            $
            18,458
            
            $
            3,700
            
            $
            (16,397,076
            )
            $
            (920,598
            )Shares
                issued to consultants in exchange for accrued service fees
            
            
            4,923,963
            
            
            4,924
            
            
            79,076
            
            
            -
            
            
            -
            
            
            -
            
            
            84,000Shares
                issued in exchange for expenses paid by shareholders
            
            
            1,517,038
            
            
            1,517
            
            
            22,705
            
            
            -
            
            
            -
            
            
            -
            
            
            24,222Shares
                issued for stock subscribed in prior year
            
            
            1,230,546
            
            
            1,230
            
            
            17,228
            
            
            (18,458
            )
            
            -
            
            
            -
            
            
            -Common
                Stock subscribed
            
            
            -
            
            
            -
            
            
            -
            
            
            25,000
            
            
            -
            
            
            -
            
            
            25,000Capital
                contributed by related parties
            
            
            -
            
            
            -
            
            
            40,979
            
            
            -
            
            
            -
            
            
            -
            
            
            40,979Foreign
                currency translation adjustment
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (5,736
            )
            
            -
            
            
            (5,736
            )Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (345,208
            )
            
            (345,208
            )Balance
                at December 31, 2005
            
            
            277,635,403
            
            
            277,635
            
            
            15,344,344
            
            
            25,000
            
            
            (2,036
            )
            
            (16,742,284
            )
            
            (1,097,341
            )Common
                Stock issued for services rendered and accrued service
                fees
            
            
            3,060,352
            
            
            3,060
            
            
            130,230
            
            
            -
            
            
            -
            
            
            -
            
            
            133,290Common
                Stock issued for payment for expenses paid
            
            
            68,634
            
            
            69
            
            
            4,735
            
            
            -
            
            
            -
            
            
            -
            
            
            4,804Common
                Stock issued for cash and stock subscribed in prior year
            
            
            8,064,965
            
            
            8,065
            
            
            135,084
            
            
            (25,000
            )
            
            -
            
            
            -
            
            
            118,149Common
                Stock subscribed
            
            
            -
            
            
            -
            
            
            -
            
            
            30,000
            
            
            -
            
            
            -
            
            
            30,000Foreign
                currency translation adjustment
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            5,539
            
            
            
            
            
            5,539Net
                loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (240,948
            )
            
            (240,948
            )Balance
                at December 31, 2006
            
            
            288,829,354
            
            $
            288,829
            
            $
            15,614,393
            
            $
            30,000
            
            $
            3,503
            
            $
            (16,983,232
            )
            $
            (1,046,507
            )See
                the accompanying notes to the consolidated financial
                statements


F-5





**Index**




**LARGO
                VISTA GROUP, LTD.****CONSOLIDATED
                STATEMENTS OF CASH FLOWS****FOR
                THE YEARS ENDED DECEMBER 31, 2006 AND 2005**2006
            
            2005**CASH
                FLOWS FROM OPERATING ACTIVITIES:**Net
                (loss)
            
            $
            (240,948
            )
            $
            (345,208
            )Adjustments
                to reconcile net (loss) to net cash used in operating
                activities:Depreciation
            
            
            3,103
            
            
            3,076Common
                Stock issued in exchange for services rendered (Note H)
            
            
            38,140
            
            
            -Changes
                in assets and liabilities:Accounts
                receivable
            
            
            (187,678
            )
            
            6,585Inventories
            
            
            (3,389
            )
            
            (8,413
            )Employee
                advances
            
            
            330
            
            
            2,744Prepaid
                expenses and other
            
            
            118,092
            
            
            (29,985
            )Accounts
                payable and other liabilities
            
            
            155,512
            
            
            77,626Customer
                Deposits
            
            
            -
            
            
            (4,707
            )**NET
                CASH USED IN OPERATING ACTIVITIES**
            
            
            (116,838
            )
            
            (298,282
            )**NET
                CASH FROM INVESTING ACTIVITIES:**Purchase
                of property and equipment
            
            
            (381
            )
            
            -**NET
                CASH USED IN INVESTING ACTIVITIES:**
            
            
            (381
            )**CASH
                FLOWS FROM FINANCING ACTIVITIES:**Sale
                of commons stock and Common Stock subscription (Note H)
            
            
            148,149
            
            
            25,000Capital
                contributions from related parties (Note G)
            
            
            -
            
            
            40,979Proceeds
                from related parties, net of repayments
            
            
            (56,473
            )
            
            211,727**NET
                CASH PROVIDED BY FINANCING ACTIVITIES**
            
            
            91,676
            
            
            277,706Effect
                of exchange rates on cash
            
            
            3,893
            
            
            1,653**NET
                (DECREASE) IN CASH AND CASH EQUIVALENTS**
            
            
            (21,650
            )
            
            (18,923
            )Cash
                and cash equivalents at the beginning of the year
            
            
            75,642
            
            
            94,565Cash
                and cash equivalents at the end of the year
            
            $
            53,992
            
            $
            75,642Supplemental
                Disclosures of Cash Flow InformationCash
                paid during the period for interest
            
            $
            731
            
            $
            -Income
                taxes paid
            
            
            -
            
            
            -Common
                Stock issued in exchange for accrued service fees (Note H)
            
            
            95,150
            
            
            84,000Common
                Stock issued in exchange for services rendered (Note H)
            
            
            38,140
            
            
            -Common
                Stock issued in exchange for due to related parties (Note
                H)
            
            
            4,804
            
            
            24,222Common
                Stock issued in exchange for Common Stock subscribed in prior year
                (Note
                H)
            
            
            25,000
            
            
            18,458See
                the accompanying notes to the consolidated financial
                statements


F-6




**Index**


**LARGO
      VISTA GROUP, LTD.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006AND 2005**





**NOTE
      A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**





A
      summary
      of the significant accounting policies applied in the preparation of the
      accompanying consolidated financial statements follows.





Business
      and Basis of Presentation





Largo
      Vista Group, Ltd. (the "Company") was incorporated under the laws of the State
      of Nevada. The Company is principally engaged in the distribution of liquid
      petroleum gas (LPG) in the retail and wholesale markets in South China and
      in
      the purchase of petroleum products for delivery to the Far East.





The
      consolidated financial statements include the accounts of the Company and its
      wholly-owned subsidiaries, Largo Vista, Inc., Largo Vista Construction, Inc.,
      and Largo Vista International Corp. Largo Vista, Inc. is formed under the laws
      of the State of California and is inactive. Largo Vista Construction, Inc.
      is
      formed under the laws of the State of Nevada and is inactive. Largo Vista
      International Corp. is formed under the laws of Panama and is inactive. The
      Company also has a
      controlling financial interest in Zunyi Jiahong Gas Co., Ltd. ("Jiahong")
      through a DBA (Doing Business As) agreement that
      results in consolidation (see Note K).Jiahong is registered under the
      Chinese laws in the Peoples Republic of China.





All
      significant intercompany balances and transactions have been eliminated in
      consolidation. All amounts in these consolidated financial statements and notes
      thereto are stated in United States dollars unless otherwise
      indicated.





Foreign
      Currency Translation





The
      Company translates the foreign currency financial statements of its Chinese
      subsidiary in accordance with the requirements of Statement of Financial
      Accounting Standards No. 52, "Foreign Currency Translation." Assets and
      liabilities are translated at the rates of exchange at the balance sheet date,
      and related revenue and expenses are translated at average monthly exchange
      rates in effect during the period. Resulting translation adjustments are
      recorded as a separate component in stockholders' equity. Foreign currency
      transaction gains and losses are included in the statement of
      income.





Cash
      and Cash Equivalents





For
      purposes of the Statements of Cash Flows, the Company considers all highly
      liquid debt instruments purchased with a maturity date of three months or less
      to be cash equivalents.





Property
      and Equipment





Property
      and equipment are stated at cost. When retired or otherwise disposed, the
      related carrying value and accumulated depreciation are removed from the
      respective accounts and the net difference less any amount realized from
      disposition, is reflected in earnings. For financial statement purposes,
      property and equipment are recorded at cost and depreciated using the
      straight-line method over their estimated useful lives (Note D).





Long-Lived
      Assets





The
      Company has adopted Statement of Financial Accounting Standards No. 144 (“SFAS
      144”). The Statement requires that long-lived assets and certain identifiable
      intangibles held and used by the Company be reviewed for impairment whenever
      events or changes in circumstances indicate that the carrying amount of an
      asset
      may not be recoverable. Events relating to recoverability may include
      significant unfavorable changes in business conditions, recurring losses, or
      a
      forecasted inability to achieve break-even operating results over an extended
      period. The Company evaluates the recoverability of long-lived assets based
      upon
      forecasted undiscounted cash flows. Should an impairment in value be indicated,
      the carrying value of intangible assets will be adjusted, based on estimates
      of
      future discounted cash flows resulting from the use and ultimate disposition
      of
      the asset. SFAS No. 144 also requires assets to be disposed of be reported
      at
      the lower of the carrying amount or the fair value less costs to sell.





Income
      Taxes





The
      Company has implemented the provisions on Statement of Financial Accounting
      Standards No. 109, "Accounting for Income Taxes" (“SFAS 109”). SFAS 109 requires
      that income tax accounts be computed using the liability method. Deferred taxes
      are determined based upon the estimated future tax effects of differences
      between the financial reporting and tax reporting bases of assets and
      liabilities given the provisions of currently enacted tax laws.


F-7




**Index**


**LARGO
      VISTA GROUP, LTD.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006 AND 2005**





**NOTE
      A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)**





Net
      Earnings (Losses) Per Common Share





The
      Company computes earnings per share under Statement of Financial Accounting
      Standards No. 128, "Earnings Per Share" (“SFAS 128”). Net earnings (losses) per
      common share is computed by dividing net income (loss) by the weighted average
      number of shares of Common Stock and dilutive Common Stock equivalents
      outstanding during the year. Dilutive Common Stock equivalents consist of shares
      issuable upon conversion of convertible preferred shares and the exercise of
      the
      Company's stock options and warrants (calculated using the treasury stock
      method). During the year ended December 31, 2006 and 2005, Common Stock
      equivalents are not considered in the calculation of the weighted average number
      of common shares outstanding because they would be anti-dilutive, thereby
      decreasing the net loss per common share.





Use
      of
      Estimates





The
      preparation of financial statements in conformity with generally accepted
      accounting principles requires management to make estimates and assumptions
      that
      affect certain reported amounts and disclosures. Accordingly, actual results
      could differ from those estimates.





Fair
      Value of Financial Instruments





Statement
      of Financial Accounting Standards No. 107, "Disclosures About Fair Value of
      Financial Instruments," requires disclosure of the fair value of certain
      financial instruments. The carrying value of cash and cash equivalents, accounts
      receivable, accounts payable and short-term borrowings, as reflected in the
      balance sheets, approximate fair value because of the short-term maturity of
      these instruments.





Inventories





Inventories
      consist primarily of LPG. Cost is determined by the first-in, first-out method
      for retail operations and specific identification method for wholesale
      operations (Note C). Inventories
      are stated at the lower of cost or market.





Reclassifications





Certain
      reclassifications have been made in prior year’s financial statements to conform
      to classifications used in the current year.





Revenue
      Recognition





For
      revenue from product sales, the Company recognizes revenue in accordance with
      Staff Accounting Bulletin No. 104, REVENUE RECOGNITION ("SAB104"), which
      superceded Staff Accounting Bulletin No. 101, REVENUE RECOGNITION IN FINANCIAL
      STATEMENTS ("SAB101"). SAB 101 requires that four basic criteria must be met
      before revenue can be recognized: (1) persuasive evidence of an arrangement
      exists; (2) delivery has occurred; (3) the selling price is fixed and
      determinable; and (4) collectibility is reasonably assured. Determination of
      criteria (3) and (4) are based on management's judgments regarding the fixed
      nature of the selling prices of the products delivered and the collectibility
      of
      those amounts. Provisions for discounts and rebates to customers, estimated
      returns and allowances, and other adjustments are provided for in the same
      period the related sales are recorded. The Company defers any revenue for which
      the product has not been delivered or is subject to refund until such time
      that
      the Company and the customer jointly determine that the product has been
      delivered or no refund will be required.





SAB
      104
      incorporates Emerging Issues Task Force 00-21 ("EITF 00-21"),
      MULTIPLE-DELIVERABLE REVENUE ARRANGEMENTS. EITF 00-21 addresses accounting
      for
      arrangements that may involve the delivery or performance of multiple products,
      services and/or rights to use assets. The effect of implementing EITF 00-21
      on
      the Company's consolidated financial position and results of operations was
      not
      significant.





The
      Company generally recognizes revenue upon delivery of LPG to the customer.
      Revenue associated with shipments of petroleum products is recognized when
      title
      passes to the customer.





F-8




**Index**


**LARGO
      VISTA GROUP, LTD.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006 AND 2005**





**NOTE
      A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)**





In
      February 2002, the Company entered into an agreement (“Agreement”) with Zunyi
      Municipal Government (“Government”) to design and install LPG pipeline systems
      in residential areas in the city of Zunyi, China on behalf of Government. In
      exchange for installing the pipeline, the Agreement provides for the Company
      to
      be the sole LPG supplier for those households. The Company substantially
      completed the installation of the LPG pipeline as of December 31, 2002. Pursuant
      to the Agreement, Government had paid to the Company 50% of the total contracted
      installation price, and the Company has to collect the remaining 50% of contract
      price directly from the customers. The Company’s management has determined that
      the collectibility and length of time to collect the amount due from customers
      can not be reasonably assured. Accordingly, revenues are recognized as collected
      in connection with the portion of the contracted price to be collected from
      customers.





In
      May
      2003, the Company entered into its Second Agreement (“Second Agreement”) with
      Government to design and install more LPG pipeline systems in residential areas
      in the city of Zunyi, China on behalf of Government. In exchange for installing
      the pipeline, the Second Agreement provides for the Company to be the sole
      LPG
      supplier for those households. Pursuant to the Second Agreement, Government
      is
      obligated to pay to the Company 50% of the total contracted installation price,
      and the Company has to collect the remaining 50% of contracted price directly
      from the customers. The Company management has determined that the
      collectibility and length of time to collect the remaining contracted price
      due
      from customers can not be reasonably assured. Accordingly, revenues are
      recognized as collected in connection with the portion of contracted price
      to be
      collected from customers.





Advertising





The
      Company follows the policy of charging the costs of advertising to expenses
      as
      incurred. The Company incurred no advertising costs during the years ended
      December 31, 2006 and 2005.





Research
      and Development





The
      Company accounts for research and development costs in accordance with the
      Financial Accounting Standards Board’s Statement of Financial Accounting
      Standards No. 2 (“SFAS 2”), “Accounting for Research and Development Costs.”
Under SFAS 2, all research and development costs must be charged to expense
      as
      incurred. Accordingly, internal research and development costs are expensed
      as
      incurred. Third-party research and developments costs are expensed when the
      contracted work has been performed or as milestone results have been achieved.
      Company-sponsored research and development costs related to both present and
      future products are expensed in the period incurred. The Company incurred no
      expenditures on research and product development for 2006 and 2005.





Liquidity





As
      shown
      in the accompanying financial statements, the Company incurred a net loss from
      operations of $240,948 and $345,208 during the year ended December 31, 2006
      and
      2005, respectively. The Company's current liabilities exceeded its current
      assets by $1,048,576 as of December 31, 2006.





Concentrations
      of Credit Risk





Financial
      instruments and related items, which potentially subject the Company to
      concentrations of credit risk, consist primarily of cash, cash equivalents
      and
      related party receivables. The Company places its cash and temporary cash
      investments with credit quality institutions. At times, such investments may
      be
      in excess of the FDIC insurance limit. The Company periodically reviews its
      trade receivables in determining its allowance for doubtful accounts. The
      allowance for doubtful accounts was $0 at December 31, 2006 and
      2005.





Comprehensive
      Income (Loss)





The
      Company adopted Statement of Financial Accounting Standards No. 130, “Reporting
      Comprehensive Income”. SFAS No. 130 establishes standards for the reporting and
      displaying of comprehensive income and its components. Comprehensive income
      is
      defined as the change in equity of a business during a period from transactions
      and other events and circumstances from non-owner sources. It includes all
      changes in equity during a period except those resulting from investments by
      owners and distributions to owners. SFAS No. 130 requires other comprehensive
      income (loss) to include foreign currency translation adjustments and unrealized
      gains and losses on available-for-sale securities.


F-9




**Index**


**LARGO
      VISTA GROUP, LTD.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006 AND 2005**





**NOTE
      A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)**





Stock
      Based Compensation




Prior
      to
      the January 1, 2006 adoption of the Financial Accounting Standards Board
      (“FASB”) Statement No. 123(R), “Share-Based Payment” (“SFAS 123R”), the
      Company accounted for stock-based compensation using the intrinsic value method
      prescribed in Accounting Principles Board (“APB”) Opinion No. 25,
“Accounting for Stock Issued to Employees,” and related interpretations.
      Accordingly, because the stock option grant price equaled the market price
      on
      the date of grant, and any purchase discounts under the Company’s stock purchase
      plans were within statutory limits, no compensation expense was recognized
      by
      the Company for stock-based compensation. As permitted by SFAS No. 123,
“Accounting for Stock-Based Compensation” (“SFAS 123”), stock-based compensation
      was included as a pro forma disclosure in the notes to the consolidated
      financial statements.





Effective
      January 1, 2006, the beginning of the Company’s first fiscal quarter of 2006,
      the Company adopted the fair value recognition provisions of SFAS 123R, using
      the modified-prospective transition method. Under this transition method,
      stock-based compensation expense was recognized in the consolidated financial
      statements for granted, modified, or settled stock options. Compensation expense
      recognized included the estimated expense for stock options granted on and
      subsequent to January 1, 2006, based on the grant date fair value estimated
      in
      accordance with the provisions of SFAS 123R, and the estimated expense for
      the
      portion vesting in the period for options granted prior to, but not vested
      as of
      January 1, 2006, based on the grant date fair value estimated in accordance
      with
      the original provisions of SFAS 123. Results for prior periods have not been
      restated, as provided for under the modified-prospective method.





SFAS
      123(R) requires forfeitures to be estimated at the time of grant and revised,
      if
      necessary, in subsequent periods if actual forfeitures differ from those
      estimates. In the Company’s pro forma information required under SFAS 123 for
      the periods prior to fiscal 2006, the Company accounted for forfeitures as
      they
      occurred.




Upon
      adoption of SFAS 123(R), the Company is using the Black-Scholes option-pricing
      model as its method of valuation for share-based awards granted beginning in
      fiscal 2006, which was also previously used for the Company’s pro forma
      information required under SFAS 123. The Company’s determination of fair value
      of share-based payment awards on the date of grant using an option-pricing
      model
      is affected by the Company’s stock price as well as assumptions regarding a
      number of highly complex and subjective variables. These variables include,
      but
      are not limited to the Company’s expected stock price volatility over the term
      of the awards, and certain other market variables such as the risk free interest
      rate.





The
      following table shows the effect on net earnings and earnings per share had
      compensation cost been recognized based upon the estimated fair value on the
      grant date of stock options for the years ended December 31, 2005, in accordance
      with SFAS 123, as amended by SFAS No. 148 “Accounting for Stock-Based
      Compensation - Transition and Disclosure:





December
                31,2005Net
                loss
            
            $
            (345,208
            )Deduct: stock-based compensation expense, net of tax, fair value
            
            
            -Add: stock-based compensation expense, net of tax, intrinsic
                value
            
            
            -Pro
                forma net loss
            
            $
            (345,208
            )Net
                loss per common share — basic (and assuming dilution):As
                reported
            
            $
            (0.00
            )Pro
                forma
            
            $
            (0.00
            )





The
      Company had no employee stock options issued and outstanding at December 31,
      2006. All prior awards of stock options were vested at the time of issuance
      in
      prior years.





F-10




**Index**


**LARGO
      VISTA GROUP, LTD.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006 AND 2005**





**NOTE
      A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)**





Segment
      Information





Statement
      of Financial Accounting Standards No. 131, “Disclosures about Segments of an
      Enterprise and Related Information” (“SFAS 131”) establishes standards for
      reporting information regarding operating segments in annual financial
      statements and requires selected information for those segments to be presented
      in interim financial reports issued to stockholders. SFAS 131 also establishes
      standards for related disclosures about products and services and geographic
      areas. Operating segments are identified as components of an enterprise about
      which separate discrete financial information is available for evaluation by
      the
      chief operating decision maker, or decision-making group, in making decisions
      how to allocate resources and assess performance. The information disclosed
      herein materially represents all of the financial information related to the
      Company’s principal operating segment.





New
      Accounting Pronouncements




In
      February 2006, the FASB issued SFAS No. 155. “ *Accounting
      for certain Hybrid Financial Instruments an amendment of FASB Statements No.
      133
      and 140,”* or SFAS
      No. 155. SFAS No. 155 permits fair value remeasurement for any hybrid financial
      instrument that contains an embedded derivative that otherwise would require
      bifurcation, clarifies which interest-only strips and principal-only strips
      are
      not subject to the requirements of Statement No. 133, establishes a requirement
      to evaluate interests in securitized financial assets to identify interests
      that
      are freestanding derivatives or that are hybrid financial instruments that
      contain an embedded derivative requiring bifurcation, clarifies that
      concentrations of credit risk in the form of subordination are not embedded
      derivatives, and amends SFAS No. 140 to eliminate the prohibition on a
      qualifying special purpose entity from holding a derivative financial instrument
      that pertains to a beneficial interest other than another derivative financial
      instrument. SFAS 155 is effective for all financial instruments acquired or
      issued after the beginning of an entity’s first fiscal year that begins after
      September 15, 2006. We do not expect the adoption of SFAS 155 to have a material
      impact on our consolidated financial position, results of operations or cash
      flows.





In
      March
      2006, the FASB issued FASB Statement No. 156, Accounting for Servicing of
      Financial Assets - an amendment to FASB Statement No. 140. Statement 156
      requires that an entity recognize a servicing asset or servicing liability
      each
      time it undertakes an obligation to service a financial asset by entering into
      a
      service contract under certain situations. The new standard is effective for
      fiscal years beginning after September 15, 2006. The adoption of SFAS No.156
      did
      not have a material impact on the Company's financial position and results
      of
      operations.





In
      July
      2006, the FASB issued Interpretation No. 48 (FIN 48). “ *Accounting
      for uncertainty in Income Taxes”.* FIN 48
      clarifies the accounting for Income Taxes by prescribing the minimum recognition
      threshold a tax position is required to meet before being recognized in the
      financial statements. It also provides guidance on derecognition, measurement,
      classification, interest and penalties, accounting in interim periods,
      disclosure and transition and clearly scopes income taxes out of SFAS 5,
“ *Accounting
      for Contingencies”.* FIN
      48 is
      effective for fiscal years beginning after December 15, 2006. The
      Company does not expect adoption of this standard will have a material impact
      on
      its financial position, operations or cash flows.




In
      September 2006 the Financial Account Standards Board (the “FASB”) issued its
      Statement of Financial Accounting Standards 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 applies under other accounting
      pronouncements that require or permit fair value measurements, the Board having
      previously concluded in those accounting pronouncements that fair value is
      the
      relevant measurement attribute. Accordingly, this Statement does not require
      any
      new fair value measurements. However, for some entities, the application of
      this
      Statement will change current practice. FAS 157 effective date is for fiscal
      years beginning after November 15, 2007. The Company does not expect adoption
      of
      this standard will have a material impact on its financial position, operations
      or cash flows.




In
      September 2006 the FASB issued its Statement of Financial Accounting Standards
      158 “Employers’ Accounting for Defined Benefit Pension and Other Postretirement
      Plans”. This Statement improves financial reporting by requiring an employer to
      recognize the overfunded or underfunded status of a defined benefit
      postretirement plan (other than a multiemployer plan) as an asset or liability
      in its statement of financial position and to recognize changes in that funded
      status in the year in which the changes occur through comprehensive income
      of a
      business entity or changes in unrestricted net assets of a not-for-profit
      organization. This Statement also improves financial reporting by requiring
      an
      employer to measure the funded status of a plan as of the date of its year-end
      statement of financial position, with limited exceptions. The effective date
      for
      an employer with publicly traded equity securities is as of the end of the
      fiscal year ending after December 15, 2006. The Company does not expect adoption
      of this standard will have a material impact on its financial position,
      operations or cash flows





In
      February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for
      Financial Assets and Financial Liabilities.” SFAS
      159
      permits entities to choose to measure many financial instruments, and certain
      other items, at fair value. SFAS
      159
      applies to reporting periods beginning after November 15, 2007. The adoption
      of
      SFAS 159 is not expected to have a material impact on the Company’s financial
      condition or results of operations.





F-11




**Index**


**LARGO
      VISTA GROUP, LTD.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006 AND 2005**





**NOTE
      B - AGREEMENT TO SELL STOCK TO SHANGHAI OFFSHORE OIL GROUP**





On
      March
      18, 2005, the Company signed an Agreement and Assignment of Certain Contractual
      Rights and Benefits (the “Agreement”), with Shanghai Offshore Oil Group (HK)
      Co., Ltd. (“Shanghai Oil”).  Under the Agreement, Shanghai Oil assigned to
      the Company all of its rights to receive payments under a prior contract with
      Asiacorp Investment Holding Ltd. (“Asiacorp”), under which Shanghai Oil would
      purchase from Asiacorp fuel oil produced in Russia and deliver it to entities
      in
      The People’s Republic of China at a rate of thirty thousand (30,000) metric tons
      per month for three (3) months and continue for the following thirty-three
      (33)
      months at a rate of two hundred thousand (200,000) metric tons per month, for
      a
      total of six million, six hundred ninety thousand (6,690,000) metric tons (the
      “Asiacorp Contract”).  The Agreement states that deliveries under the
      Asiacorp Contract were to begin no later than May 18, 2005.





The
      Agreement provides that the Company will receive all of the profit realized
      by
      Shanghai Oil from the sale of fuel oil it acquires under the Asiacorp Contract,
      after the deduction of costs associated with the purchase, transportation and
      sale of the fuel oil, with a minimum payment of two dollars ($2.00) per metric
      ton. In exchange for the assignment of the Asiacorp contract and subject to
      the
      receipt of payment(s) from Shanghai Oil, the Company agreed to issue to Shanghai
      Oil one hundred million (100,000,000) shares of the Company’s Common Stock,
      deliverable in three equal increments over the term of the Agreement, which
      amounts may be reduced based upon the amount, if any, of Shanghai Oil’s actual
      payments from its sale of the fuel oil. However, the Company has not received
      any payments from Shanghai Oil under the Agreement, and cannot give absolute
      assurances that any fuel oil will be delivered under the Asiacorp
      Contract.





Payments
      received by The Company based upon Shanghai Oil’s sale of the fuel oil, if any,
      will be accounted for as a capital transaction as The Company’s transaction with
      Shanghai Oil represents, in substance, a stock subscription under which the
      Company would receive approximately $0.13 per share if the total projected
      amount of fuel oil is sold and the minimum guaranteed profit margin is paid
      to
      the Company.





During
      June of 2005, Shanghai Oil notified the Company that it had not received any
      fuel oil under the Asiacorp Contract.  As the Company had not received any
      payments from Shanghai Oil, it did not release any of its shares of Common
      Stock
      to Shanghai Oil.  On or about July 1, 2005, The Company sent Shanghai Oil a
      written “Demand to Cure Delayed-Performance” giving Shanghai Oil until July 18,
      2005, later extended to August 31, 2005, to make its first payment to the
      Company under the Agreement.  Although Shanghai Oil has indicated to the
      Company that it intends to deliver payment pursuant to the Agreement, either
      through performance under the Asiacorp Contract or through another contract
      in
      its place, investors should understand that delivery is far from certain. As
      of
      December 31, 2006, the Company has not received any payments from Shanghai
      Oil
      nor has it released any of the shares deliverable to Shanghai Oil.





Resolution
      with Shanghai Oil remains highly uncertain, and the Company does not foresee
      any
      economic benefit materializing from the Agreement. While the Company has
      reserved its rights to pursue all available remedies it may have against
      Shanghai Oil, pursuing these remedies may be prohibitively expensive. On
      December 22, 2005, the Company's board of directors unanimously adopted a
      resolution to cancel the 97,364,597 shares that the Company agreed to issue
      to
      Shanghai Oil under the Agreement, none of these shares were released to Shanghai
      Oil prior the cancellation of shares on December 22, 2005.





**NOTE
      C - INVENTORIES**





Inventories
      are stated at the lower of cost or market determined by the first-in, first-out
      (FIFO) method. Inventories consist primarily of liquid petroleum gas available
      for sale to contract clients and the public. Components of inventories as of
      December 31, 2006 and 2005 are as follows:





2006
            
            
            2005Liquid
                petroleum gas
            
            $
            9,545
            
            $
            6,670Packaging
                bottles
            
            
            10,511
            
            
            10,417Supplies
            
            
            1,022
            
            
            602$
            21,078
            
            $
            17,689





**NOTE
      D - PROPERTY, PLANT AND EQUIPMENT**





Property
      and equipment are stated at cost. For financial statement purposes, property
      and
      equipment are recorded at cost and depreciated using the straight-line method
      over their estimated useful lives of 5 years. The Company’s property and
      equipment at December 31, 2006 and 2005 consists of the following:





F-12




**Index**


**LARGO
      VISTA GROUP, LTD.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006 AND 2005**





**NOTE
      D - PROPERTY, PLANT AND EQUIPMENT (Continued)**





2006
            
            2005Office
                furniture and equipment
            
            $
            4,013
            
            $
            3,632Transportation
                equipment
            
            
            13,004
            
            
            13,004Total
            
            
            17,017
            
            
            16,636Accumulated
                depreciation
            
            
            (15,703
            )
            
            (12,635
            )$
            1,314
            
            $
            4,001





Depreciation
      expense included as a charge to income amounted to $3,103 and $3,076 for the
      year ended December 31, 2006 and 2005, respectively.





**NOTE
      E - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**





Accounts
      payable and accrued liabilities at December 31, 2006 and 2005 are as
      follows:





2006
            
            
            2005Accrued
                expenses
            
            $
            407,838
            
            $
            385,518Accrued
                interest
            
            
            199,089
            
            
            161,047$
            606,927
            
            $
            546,565





**NOTE
      F - NOTES PAYABLE TO RELATED PARTIES**





Notes
      payable to related parties at December 31, 2006 and 2005 consists of the
      following:





2006
            
            2005Notes
                payable on demand to Company’s Chairman; interest payable monthly at 7%
                per annum; unsecured
            
            $
            463,328
            
            $
            537,401Notes
                payable on demand to Company’s shareholder (former CFO); interest payable
                monthly at 7% per annum; unsecured
            
            
            9,400
            
            
            9,400Notes
                payable on demand to Company shareholders; interest payable monthly
                at 10%
                per annum; unsecured
            
            
            10,000
            
            
            12,000Notes
                payable on demand to Company shareholders; interest payable monthly
                at 7%
                per annum; unsecured
            
            
            46,745
            
            
            36,745Total
            
            
            529,473
            
            
            595,546Less:
                current portion
            
            
            (529,473
            )
            
            (595,546
            )$
            -
            
            $
            -





**NOTE
      G - RELATED PARTY TRANSACTIONS**





In
      addition to notes payable to related parties described in Note F, a consultant
      (shareholder and former employee) of the Company has advanced funds to the
      Company as working capital of its Vietnam representative office. No formal
      repayment terms or arrangements exist. The net amount of advances due the
      consultant at December 31, 2006 and 2005 was $29,081.





The
      Company’s former Chief Financial Officer has advanced funds to the Company for
      working capital purpose. No formal repayment terms or arrangements exist. The
      net amount of advances due the former Chief Financial Officer at December 31,
      2006 and 2005 was $1,875 and $4,804, respectively. The Company issued Common
      Stock in exchange for $4,804 of due to the related party during the year ended
      December 31, 2006 (Note H).





The
      Company’s Chief Executive Officer has advanced funds to the Company for working
      capital purposes. No formal repayment terms or arrangements exist. The net
      amount of advances due the Company’s Chairman at December 31, 2006 and 2005 was
      $166,661 and $160,547, respectively.





During
      the year ended December 31, 2005, the Company’s Chief Executive Officer and
      significant shareholders contributed cash of $40,979 to the Company as working
      capital.




F-13





**Index**


**LARGO
      VISTA GROUP, LTD.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006 AND 2005**





**NOTE
      H - CAPITAL STOCK**





The
      Company has authorized 25,000,000 shares of Series A Preferred Stock, with
      a par
      value of $.001 per share. As of December 31, 2006 and 2005, the Company has
      no
      Series A Preferred Stock issued and outstanding. The company has authorized
      400,000,000 shares of Common Stock, with a par value of $.001 per share. As
      of
      December 31, 2006 and 2005, the Company has 288,829,354 and 277,635,403 shares
      of Common Stock issued and outstanding, respectively.





In
      December 2004, one of the Company’s significant shareholders agreed to subscribe
      1,230,546 shares of Common Stock in exchange for $15,000 of notes payable and
      $3,458 of accrued interest due to the shareholder. The common shares were issued
      in January 2005.





During
      the year ended December 31, 2005, the Company issued an aggregate of 4,923,963
      shares of Common Stock to consultants in exchange for accrued service fees
      of
      $84,000. All valuations of Common Stock issued for services were based upon
      the
      value of the services rendered, which did not differ materially from the fair
      value of the Company's Common Stock during the period the services were
      rendered. Additionally, the Company issued an aggregate of 1,517,038 shares
      of
      Common Stock to officers and consultants in exchange for $24,222 of expenses
      paid on behalf of the Company.





During
      the year ended December 31, 2005, the Company Chief Executive Officer
      significant shareholders contributed cash of $40,979 to the Company’s working
      capital. The Company also received proceeds of $25,000 in exchange for 1,166,666
      shares of Common Stock subscribed. The Company has accounted for the $25,000
      as
      Common Stock subscription payable at December 31, 2005. The common shares
      subscribed were issued in fiscal year 2006.





During
        the year ended December 31, 2006, the Company issued an aggregate of 8,064,965 shares
        of common stock in exchange for $ 118,149 of
        proceeds, net of costs and fees, and the $25,000 of common stock subscribed
        in
        prior year. The Company issued an aggregate of 3,060,352 shares
        of common stock to consultants in exchange for services fees of $ 38,140 and
        accrued service fees of $ 95,150 .
        All
        valuations of common stock issued for services were based upon the value
        of the
        services rendered, which did not differ materially from the fair value of
        the
        Company's common stock during the period the services were rendered.
        Additionally, the Company issued an aggregate of 68,634 shares of common
        stock
        to officers and consultants in exchange for $4,804 of expenses paid on behalf
        of
        the Company. The Company also received proceeds of $30,000 in exchange for
        2,400,000 shares of common stock subscribed. The Company has accounted for
        the
        $30,000 as common stock subscription payable at December 31, 2006.


**NOTE
      I - INCOME TAXES**





The
      Company has adopted Financial Accounting Standards No. 109, which requires
      the
      recognition of deferred tax liabilities and assets for the expected future
      tax
      consequences of events that have been included in the financial statement or
      tax
      returns. Under this method, deferred tax liabilities and assets are determined
      based on the difference between financial statements and tax bases of assets
      and
      liabilities using enacted tax rates in effect for the year in which the
      differences are expected to reverse. Temporary differences between taxable
      income reported for financial reporting purposes and income tax purposes are
      insignificant.





At
      December 31, 2006, the Company has available for federal income tax purposes
      a
      net operating loss carryforward of approximately $17,000,000, expiring in the
      year 2026, that may be used to offset future taxable income. The Company has
      provided a valuation reserve against the full amount of the net operating loss
      benefit, since in the opinion of management based upon the earnings history
      of
      the Company, it is more likely than not that the benefits will not be
      realized.





Components
      of deferred tax assets as of December 31, 2006 are as follows:





Non
                Current:Net
                operating loss carryforward
            
            $
            5,910,000Valuation
                allowance
            
            
            (5,910,000
            )Net
                deferred tax asset
            
            $
            -





**NOTE
      J - EARNINGS (LOSSES) PER SHARE**





Basic
      and
      fully diluted losses per share are calculated by dividing net income (loss)
      available to common shareholders by the weighted average of common shares
      outstanding during the year. The Company has no potentially dilutive securities,
      options, warrants or other rights outstanding. The following table sets forth
      the computation of basic and diluted earnings (losses) per share:




F-14


**Index**


**LARGO
      VISTA GROUP, LTD.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006 AND 2005**





**NOTE
      J - EARNINGS (LOSSES) PER SHARE (Continued)**





2006
            
            2005Net
                loss available to Common Stockholders
            
            $
            (240,948
            )
            $
            (345,208
            )Basic
                and diluted loss per share
            
            $
            (0.00
            )
            $
            (0.00
            )Basic
                and diluted weighted average number of common shares
                outstanding
            
            
            283,727,030
            
            
            277,362,170





**NOTE
      K - COMMITMENTS AND CONTINGENCIES**





a)
            Lease
                Commitments





The
      Company leases office space on a month-to-month basis at base rent of $755
      per
      month in Newport Beach, California for its corporate offices. The Company leases
      distribution and office facilities in Zunyi City, Province of Guizhou, China
      and
      office facilities in Wuhan, China. Commitments for minimum rentals under
      non-cancelable leases at the end of 2006 are as follows.





**Year:**
            ****
            **Amount:**2007
            
            $
            4,5582008
                and after
            
            
            -





Rental
      expense charged to operations was $15,504 and $12,929 for the year ended
      December 31, 2006 and 2005, respectively.





b)
            Sublease
                Agreement





The
      Company leased an office suite on a month-to-month basis at base rent of $590
      per month in Newport Beach, California and subleases the office to a third
      party
      for $2,000 per month starting May 2003 ending February, 2005. During the year
      ended December 31, 2005, the Company recorded $4,000 of rentals received as
      other income, net of costs and expenses.





c)
            Consulting
                Agreements





The
      Company has several agreements with outside contractors to provide
      organizational services, business development in China and Vietnam,
      international petroleum, and other products trading consultation services.
      The
      agreements are generally for a term of 12 months from inception and renewable
      from year to year unless either the Company or Consultant terminates such
      engagement with written notice




d)
              DBA
                  Agreement
 
 The
        Company has a controlling financial interest in Zunyi Jiahong Gas Co., Ltd.
        ("Jiahong") through a DBA (Doing Business As) agreement that results in
        consolidation. The original agreement was entered into in August 2002 and
        subsequent to the date of the financial statements, the Company and Jiahong
        extended the DBA agreement through August 2017. The agreement is not terminable
        by Jiahong and the Company has exclusive authority of all decision-making
        of
        ongoing operations of Jiahong. The Company agreed to pay Jiahong annual fees,
        at
        the option of the Company, in the amount of RMB 50,000 (approximately US$6,300),
        or 20% of the distributable net profit generated from Jiahong operations.
        At
        December 31, 2006 and 2005, no fees were due Jiahing in connection with the
        DBA
        agreement.
  F-15
  **Index**




e)
            Litigation





In
      August
      2005, the staff of the Los Angeles office of the Securities and Exchange
      Commission advised the Company that it had initiated a formal, non-public
      inquiry.  The Company and its officers have received document
      subpoenas seeking documents related to the previously announced contract between
      the Company and Shanghai Oil (Note B) and trading in the securities of the
      Company, among other things.





While
      the
      Company is confident in its practices, there is a risk that an enforcement
      proceeding will be recommended by the staff of the Commission as a result of
      this formal investigation. An enforcement proceeding could include allegations
      by the SEC that the Company and/or its officers violated, among
      others, the anti-fraud and books and records provisions of
      federal securities laws, and the rules hereunder. It cannot be predicted
      with certainty what the nature of such enforcement proceeding would be, the
      type
      of sanctions that might be sought, or what the likelihood would be of reaching
      settlement. The Company has been and expects to continue to cooperate with
      the
      ongoing SEC investigation.




On
        March
        20, 2007, Largo Vista Group, Ltd. (the “Company”), received a Wells Notice
        letter from the staff of the U.S. Securities and Exchange Commission (the
“SEC”
or “Commission”) flowing from a formal investigation conducted by the SEC. The
        Company disclosed on August 22, 2005 that the SEC commenced a non-public,
        formal
        investigation against the Company.
  The
        Wells
        Notice to the Company indicates that the staff is considering recommending
        that
        the Commission bring a civil injunctive action against the Company for alleged
        violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b)
        and
        13(a) of the Securities and Exchange Act of 1934 and Rules 10b-5, 12b-20,
        13a-1,
        13a-11, 13a-13, 13a-14 and 13b2-2 thereunder.
  The
        Wells
        Notice also indicates that the Commission may seek injunction, civil penalty
        and
        disgorgement (including prejudgment interest) against the Company.
  The
        Company has been informed that Shan Deng, a Director, President and Chief
        Executive Officer of the Company and Albert Figueroa, a Director and Secretary
        of the Company, have also received Wells Notice letters from the SEC indicating
        that the staff is considering recommending that the Commission bring a civil
        injunctive action against both of them for alleged violations of Section
        17(a)
        of the Securities Act of 1933 and Sections 10(b) of the Securities and Exchange
        Act of 1934 and Rules 10b-5 thereunder and aiding and abetting violations
        of
        Section 13(a) and Rules 12b-20, 13a-1, 13a-11, 13a-13, 13a-14 and 13b2-2
        thereunder. Mr. Deng’s Wells Notice indicates that the Commission may seek a
        permanent injunction, disgorgement (with prejudgment interest) a civil penalty
        and an officer and director bar against Mr. Deng. Mr. Figueroa’s Wells Notice
        indicates that the Commission may seek a permanent injunction, a civil penalty
        and an officer and director bar against Mr. Figueroa.
  Under
        the
        SEC procedures, a Wells Notice from the SEC affords recipients an opportunity
        to
        present information and defenses in response to the SEC’s Division of
        Enforcement staff prior to the staff making its formal recommendation to
        the
        Commission on whether any action should be authorized. There can be no assurance
        that the SEC will not bring a civil enforcement action against the Company
        or
        its officers.
  The
        Company continues to cooperate fully with the SEC investigation relating
        to this
        matter. The Company is unable to predict the extent of its ultimate liability
        with respect to any and all future securities matters. The costs and other
        effects of any future litigation, government investigations, legal and
        administrative cases and proceedings, settlements, judgments and investigations,
        claims and changes in this matter could have a material adverse effect on
        the
        Company’s financial condition and operating results.


The
      Company is subject to other legal proceedings and claims, which arise in the
      ordinary course of its business. Although occasional adverse decisions or
      settlements may occur, the Company believes that the final disposition of such
      matters will not have a material adverse effect on its financial position,
      results of operations, or liquidity.




F-16





**Index**


**LARGO
      VISTA GROUP, LTD.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**DECEMBER
      31, 2006 AND 2005**







Country
        Risk
 
 As
        the
        Company's principal operations are conducted in the PRC, the Company is subject
        to special considerations and significant risks not typically associated
        with
        companies in North America and Western Europe. These risks include, among
        others, risks associated with the political, economic and legal environments
        and
        foreign currency exchange limitations encountered in the PRC. The Company's
        results of operations may be adversely affected by changes in the political
        and
        social conditions in the PRC, and by changes in governmental policies with
        respect to laws and regulations, among other things.
 
 In
        addition, the Company's transactions undertaken in the PRC are denominated
        in
        Chinese Yuan Renminbi (CNY), which must be converted into other currencies
        before remittance out of the PRC may be considered. Both the conversion of
        CNY
        into foreign currencies and the remittance of foreign currencies abroad require
        the approval of the PRC government.


**NOTE
      L - BUSINESS CONCENTRATION**





During
          the year ended December 31, 2006, sales to one major customer amounted
          $267,747,
          or 38.16% of total sale. Accounts receivable from this customer amounted
          $181,261. There were no customers accounted for greater than 10% of sales
          during
          the year ended December 31, 2005.
 
 During
          the year ended December 31, 2006, purchases from one major LPG vendor amounted
          $383,760, or 99% of total purchases. Accounts payable to these vendors
          amounted
          $598. During the year ended December 31, 2005, purchases from one major
          LPG
          vendor amounted $350,704, or 99% of total purchases. Accounts payable to
          these
          vendors amounted $12,731.


















F-17







**LARGO
        VISTA GROUP, LTD.**
 **NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS**
 **DECEMBER
        31, 2006 AND 2005**
 
 **NOTE
          M - GOING CONCERN MATTERS**
 
 The
          accompanying statements have been prepared on a going concern basis, which
          contemplates the realization of assets and the satisfaction of liabilities
          in
          the normal course of business. As shown in the consolidated financial statements
          during the years ended December 31, 2006 and 2005, the Company incurred
          losses
          from operations of $240,948 and $345,208, respectively. The Company's current
          liabilities exceeded its current assets by $1,048,576 as of December 31,
          2006.
          These factors among others may indicate that the Company will be unable
          to
          continue as a going concern for a reasonable period of time.
 
 The
          Company’s existence is dependent upon management’s ability to develop profitable
          operations and resolve its liquidity problems. Management anticipates the
          Company will attain profitable status and improve its liquidity through
          the
          continued developing, marketing and selling of its products and additional
          equity investment in the Company. The accompanying consolidated financial
          statements do not include any adjustments that might result should the
          Company
          be unable to continue as a going concern.


In
      order
      to improve the Company’s liquidity, the Company is actively pursuing additional
      equity financing through discussions with investment bankers and private
      investors. There can be no assurance the Company will be successful in its
      effort to secure additional equity financing.





If
      operations and cash flows continue to improve through these efforts, management
      believes that the Company can continue to operate. However, no assurance can
      be
      given that management’s actions will result in profitable operations or the
      resolution of its liquidity problems.




**NOTE
        N - SUBSEQUENT EVENTS**


On
        March
        20, 2007, Largo Vista Group, Ltd. (the “Company”), received a Wells Notice
        letter from the staff of the U.S. Securities and Exchange Commission (the
“SEC”
or “Commission”) flowing from a formal investigation conducted by the SEC. The
        Company disclosed on August 22, 2005 that the SEC commenced a non-public,
        formal
        investigation against the Company.
  The
        Wells
        Notice to the Company indicates that the staff is considering recommending
        that
        the Commission bring a civil injunctive action against the Company for alleged
        violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b)
        and
        13(a) of the Securities and Exchange Act of 1934 and Rules 10b-5, 12b-20,
        13a-1,
        13a-11, 13a-13, 13a-14 and 13b2-2 thereunder.
  The
        Wells
        Notice also indicates that the Commission may seek injunction, civil penalty
        and
        disgorgement (including prejudgment interest) against the Company.
  The
        Company has been informed that Shan Deng, a Director, President and Chief
        Executive Officer of the Company and Albert Figueroa, a Director and Secretary
        of the Company, have also received Wells Notice letters from the SEC indicating
        that the staff is considering recommending that the Commission bring a civil
        injunctive action against both of them for alleged violations of Section
        17(a)
        of the Securities Act of 1933 and Sections 10(b) of the Securities and Exchange
        Act of 1934 and Rules 10b-5 thereunder and aiding and abetting violations
        of
        Section 13(a) and Rules 12b-20, 13a-1, 13a-11, 13a-13, 13a-14 and 13b2-2
        thereunder. Mr. Deng’s Wells Notice indicates that the Commission may seek a
        permanent injunction, disgorgement (with prejudgment interest) a civil penalty
        and an officer and director bar against Mr. Deng. Mr. Figueroa’s Wells Notice
        indicates that the Commission may seek a permanent injunction, a civil penalty
        and an officer and director bar against Mr. Figueroa.
  Under
        the
        SEC procedures, a Wells Notice from the SEC affords recipients an opportunity
        to
        present information and defenses in response to the SEC’s Division of
        Enforcement staff prior to the staff making its formal recommendation to
        the
        Commission on whether any action should be authorized. There can be no assurance
        that the SEC will not bring a civil enforcement action against the Company
        or
        its officers.
  The
        Company continues to cooperate fully with the SEC investigation relating
        to this
        matter. The Company is unable to predict the extent of its ultimate liability
        with respect to any and all future securities matters. The costs and other
        effects of any future litigation, government investigations, legal and
        administrative cases and proceedings, settlements, judgments and investigations,
        claims and changes in this matter could have a material adverse effect on
        the
        Company’s financial condition and operating results.






F-18





**Index**





**Item
              8.**
            **CHANGES
                IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
                FINANCIAL DISCLOSURE**




There
      have been no changes in or disagreements with our accountants on accounting
      and
      financial disclosure





**Item
              8A.**
            **CONTROLS
                AND
                PROCEDURES**




As
      of
      December 31, 2006, our management carried out an evaluation, under the
      supervision of our Chief Executive Officer and Chief Financial Officer of the
      effectiveness of the design and operation of our system of disclosure controls
      and procedures pursuant to the Securities and Exchange Act, Rule 13a-15(e)
      and
      15d-15(e) under the Exchange Act).  Based on that evaluation, our chief
      executive officer and chief financial officer concluded that our disclosure
      controls and procedures are effective to provide reasonable assurance that
      information we are required to disclose in reports that we file or submit under
      the Exchange Act is recorded, processed, summarized and reported within the
      time
      periods specified in Securities and Exchange Commission rules and forms, and
      that such information is accumulated and communicated to our management,
      including our chief executive officer and chief financial officer, as
      appropriate, to allow timely decisions regarding required
      disclosure.




**PART
      III**





**Item
              9.**
            **DIRECTORS,
                EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS,
                COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE
                ACT**





Name
            Age
            PositionAlbert
                N. Figueroa
            40
            Director;
                SecretaryDeng
                Shan
            55
            Interim
                Chief Executive officer and Chairman of the Board of
                DirectorsDenise
                Deng
            31
            Chief
                Financial Officer





Directors
      serve until the next annual meeting of shareholders, or until their successors
      are elected.





Albert
      N.
      Figueroa, Secretary and Director, is in charge of day-to-day business operations
      of Largo Vista in the United States, as well as being a liaison with all outside
      service providers, and generally maintains the consistency of information within
      the Company. Mr. Figueroa joined the Company in July 1991.





Deng
      Shan, Chairman of the Board of Directors, is well versed in the business
      practices of China. Early in his career Mr. Deng was a lecturer in Wuhan
      Chemical Engineering School. Later he advanced to associate professor at
      Huazhong University of Science and Technology. In 1989, Mr. Deng became the
      Director, Science and Technology Commission, Nanshan District Government, China.
      In 1994, Mr. Deng was appointed Chief Executive Officer/Chairman of the Board
      of
      four commercial companies. Mr. Deng joined the Company in April
      1997.





Ms. Denise
      Deng, registrant’s new Chief Financial Officer, has over nine (9) years of
      diverse financial management experience. For the nine (9) years, she has
      held a variety of financial planning and analysis, accounting. Ms. Deng majored
      in accounting and obtained the qualification of accounting profession from
      Henan
      Finance Institute in China. She graduated from Normal University of Center
      of
      China as a Major in Enterprises Management. Ms. Deng has been involved with
      Largo Vista Group, Ltd. since 1999 and started working as Financial Manager
      of
      Kunming Xinmao Petrochemical Industry Co., Ltd. and created the accounting
      system. Currently, Ms. Deng is the General Manager of Zunyi Jiahong Gas Company,
      Ltd. (for Largo Vista Group) and has created a new management system for the
      business.





The
      Company does not have an audit committee and consequently the entire Board
      of
      Directors serves in that capacity. The Board’s pre-approval policy regarding
      professional services provided by the Company’s principal accountant is to
      pre-approve the engagement of the principal accountant for the performance
      of
      all professional services. The policy does provide a waiver of pre-approval
      in
      the event that such services, in the aggregate, will be less than 5% of the
      audit fee, such services are not recognized as non-audit fees at the time of
      the
      engagement, and pre-approval is obtained from a designated member of the Board
      prior to the engagement. Until such time as an audit committee is appointed,
      the
      designated individual is the Principal Executive Officer, currently the
      President of the Company. 100% of the 2003 non-audit fees were pre-approved
      by
      the designated Board member and subsequently approved by the Board.





Section
      16(a) of the Securities Exchange Act of 1934, as amended, and the rules
      thereunder require the Company's officers and directors, and persons who own
      more than 10% of a registered class of the Company's equity securities, to
      file
      reports of ownership and changes in ownership with the Securities and Exchange
      Commission and to furnish the Company with copies. Based solely on its review
      of
      the copies of the Section 16(a) forms received by it, or written representations
      from certain reporting persons, the Company believes that, during the last
      fiscal year, all Section 16(a) filing requirements applicable to its officers,
      directors and greater than 10% beneficial owners were complied
      with.


21


**Index**


The
      Company has adopted a Policy Statement on Business Ethics and Conflicts of
      Interest, which was approved by the Board of Directors, applicable to all
      employees, which is attached as an exhibit to this report.





**Item
              10.**
            **EXECUTIVE
                COMPENSATION**





The
      following table sets forth all compensation paid or accrued by the Company
      during the last three years to its executive officers.





**Summary
      Compensation Table**





Name
                and Principal Position
              (a)
            Year
              (b)
            Salary($)
              (c)
            Bonus($)
              (d)
            Stock
                Awards($)
              (e)
            Option
                Awards($)
              (f)
            Non-Equity
                Incentive Plan
              Compensation($)
              (g)
            Nonqualified
                Deferred
              Compensation
              Earnings($)
              (h)
            All
                Other
              Compensation($)
              (i)
            Total($)
              (j)Deng
                Shan
              CEO
            2006
              2005
              2004
            84,000
              0
              0
            
            0
              0
              0Albert
                Figueroa
              Secretary
            200620052004
            0
              0
              0
            
            60,000
                54,000
                12,500DeniseDeng
              CFO
            2006
              2005
              2004
            4,500
              0
              0
            
            0
              0
              0




**Notes:**


The
        officers listed above were paid their salary in a combination of stock options,
        Common Stock and/or cash. Any issuance of Common Stock was valued at market,
        generally determined by the closing price on the first day of trading of
        the
        following month.
 
 Albert
        Figueroa, serves under a semi- annual consulting contract renewed effective
        January 1, 2006 at annualized compensation of $60,000 that may be terminated
        upon 30 days written notice of either party.


On
      April
      8, 2006, we issued an aggregate of 821,613 shares of Common Stock to Albert
      Figueroa, for 2005 consulting services valued at $60,000.




On
      January 13, 2005, we issued an aggregate of 3,165,404 shares of Common Stock
      to
      Albert Figueroa, for 2004 consulting services valued at $54,000.





On
      March
      2, 2004, we issued an aggregate of 664,187 shares of Common Stock to Albert
      Figueroa, for August to December 2003 consulting services valued at
      $12,500.





Deng
      Shan, CEO, serves under a semi- annual Agreement for Services renewed effective
      January 1, 2006 at annualized compensation of $84,000 that may be terminated
      upon 30 days written notice of either party. Mr. Deng agreed to waive the unpaid
      salary during the year ended December 31, 2005 and 2004. Salary
      during 2006 was unpaid and accrued.





Denise
      Deng, Chief Financial Officer serves for an initial term of one (1) year,
      subject to automatic renewal from year to year thereafter unless either party
      gives notice of termination at least ninety (90) days prior to the
      automatic renewal date, at a base salary of $18,000 per year. Ms.
      Deng
      was appointed as the Company’s CFO on September 15, 2006.




The
      members of the Company's Board of Directors receive no additional compensation
      for serving as directors.








22  **Index**


**Item
              11.**
            **SECURITY
                OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT****AND
                RELATED STOCKHOLDER
                MATTERS**





The
      following table sets forth information regarding beneficial ownership as of
      March 16, 2007 of the Company's Common Stock by any person who is known to
      the
      Company to be the beneficial owner of more than 5% of the Company's voting
      securities and by each director and officer of the Company.





**Title
                  of Class**
              **Name
                  of**
                **Beneficial
                  Owner**
              **Amount
                  and Nature of**
                **Beneficial
                  Ownership**
              **Percent
                  of**
                **Class**Common
                  Stock
              Albert
                  Figueroa
              3,945,134
                  (a)
              1.36%Common
                  Stock
              Deng
                  Shan
              80,377,285
                  (b)
              27.80%All
                  Officers and Directors
                as
                  a group (2 persons)
              
              84,322,419
              29.16%


(a)
      Mr.
      Figueroa owns 3,945,134 shares personally and his spouse owns 100,000 shares
      ,
      which may be deemed to be beneficially owned by Mr. Figueroa. Mr. Figueroa
      disclaims beneficial ownership of such shares.





(b)
      Mr.
      Deng Shan owns 2,119,396 shares personally, and 78,257,889 shares through his
      majority owned corporation, Proton Technology Corporation Limited.








**Item
              12.**
            **CERTAIN
                RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
                INDEPENDENCE**





Notes
      payable to related parties at December 31, 2006 and 2005 consists of the
      following:





2006
            
            2005Notes
                payable on demand to Deng Shan Company’s Chairman; interest payable
                monthly at 7% per annum; unsecured
            
            $
            463,328
            
            $
            537,401Notes
                payable on demand to Albert Figueroa ; interest payable monthly at
                7% per
                annum; unsecured
            
            
            9,400
            
            
            9,400Notes
                payable on demand to Company shareholders; interest payable monthly
                at 10%
                per annum; unsecured
            
            
            10,000
            
            
            12,000Notes
                payable on demand to Company shareholders; interest payable monthly
                at 7%
                per annum; unsecured
            
            
            46,745
            
            
            36,745Total
            
            
            529,473
            
            
            595,546Less:
                current portion
            
            
            (529,473
            )
            
            (595,546
            )$
            -
            
            $
            -








A
      consultant (shareholder and former employee) of the Company has advanced funds
      to the Company as working capital of its Vietnam representative office. No
      formal repayment terms or arrangements exist. The net amount of advances due
      the
      consultant at December 31, 2006 and 2005 was $29,081.





The
      Company’s former Chief Financial Officer Albert Figueroa has advanced funds to
      the Company for working capital purpose. No formal repayment terms or
      arrangements exist. The net amount of advances due the former Chief Financial
      Officer at December 31, 2006 and 2005 was $1,875 and $4,804, respectively.
      The
      Company issued Common Stock in exchange for $4,804 of due to the related party
      during the year ended December 31, 2006.




23


**Index**


The
      Company’s Chief Executive Officer Deng Shan has advanced funds to the Company
      for working capital purposes. No formal repayment terms or arrangements exist.
      The net amount of advances due the Company’s Chairman at December 31, 2006 and
      2005 was $166,661 and $160,547, respectively.





During
      the year ended December 31, 2005, the Company’s Chief Executive Officer and
      significant shareholders contributed cash of $40,979 to the Company as working
      capital.





**Item
              13.**
            **EXHIBITS**





3.1*
            Articles
                of Incorporation of Largo Vista Group, Limited (filed Form 10SB,
                11/2/99)3.2*
            Bylaws
                of Largo Vista Group, Limited (filed Form 10SB,
                11/2/99)3.3*
            Articles
                of Incorporation of Largo Vista Inc. (filed Form 10SB,
                11/2/99)3.4*
            Bylaws
                of Largo Vista Inc. (filed Form 10SB, 11/2/99)3.5*
            Articles
                of Incorporation of Everlasting International Limited (filed Form
                10SB,
                11/2/99)3.6*
            Bylaws
                of Everlasting International Limited (filed Form 10SB,
                11/2/99)3.7*
            Articles
                of Incorporation of Kunming Xinmao Petrochemical Industry Co., Ltd.
                (filed
                Form 10SB, 11/2/99)10
            Material
                Contracts10.1*
            Contract.
                Largo Vista Group, Ltd. and Sentio Corporation, December 28, 1998,
                (filed
                Form 10SB, 11/2/99)10.2*
            Contract.
                Hong Kong De Xiang Tuo Yi Industrial Company, August 28, 1992 (filed
                Form
                10SB, 11/2/99)10.3*
            Plan
                and Agreement of Reorganization between Largo Vista Group, Ltd.,
                Proton
                Technology Corporation, Ltd. and Everlasting International, December
                21,
                1996 (filed Form 10SB, 11/2/99)10.4*
            Joint
                Venture Agreement of Kunming Xinmao Petrochemical Industry Co., Ltd.,
                August 8, 1992 (filed Form 10SB, 11/2/99)10.5*
            Approval
                Certificate of Enterprise with Foreign Investment in the People's
                Republic
                of China (filed Form 10SB, 11/2/99)10.6*
            Business
                License of Enterprise in the Peoples Republic of China (filed Form
                10SB,
                11/2/99)10.7*
            Business
                Permit to Engage in LPG Business in Yunnan Province (filed Form 10SB,
                11/2/99)10.8*
            Notice
                of Subsidiaries of the Agriculture Bank of China, Yunnan Provincial
                Branch, Acting as Agents for Collection and Receipt of Payment for
                Kunming
                Xinmao Petrochemical Industry Co., Ltd. (filed Form 10SB,
                11/2/99)10.9*
            Agreement
                of Supply of Liquefied Petroleum Gas, March 18, 1996 (filed Form
                10SB,
                11/2/99)10.10*
            Method
                of Insurance for LPG Credit, August 26, 1997 (filed Form 10SB,
                11/2/99)10.11*
            Memorandum
                of Understanding Kunming Xinmao Petrochemical Industry Co., Ltd.
                and Wuhan
                Minyi Fuel Gas Petrochemical Company Limited, March 14, 1999 (filed
                Form
                10SB, 11/2/99)10.12*
            Memorandum
                of Understanding Kunming Xinmao Petrochemical Industry Co., Ltd.
                and
                Guilin Municipal Garden Fuel Gas Pipelines Limited, March 29, 1999
                (filed
                Form 10SB, 11/2/99)10.13*
            Approval
                Certificate of Enterprises with Foreign Investment in the Peoples
                Republic
                of China, August 21, 1992 (filed Form 10SB, 11/2/99)10.14*
            Contract.
                Enterprise Ownership Transfer Agreement "Ten Year Leasing Contract",
                Seller Chen Mao Tak, Purchaser Everlasting International, Ltd., third
                party Kunming Fuel General Company, November 8, 1995 (filed Form
                10SB-A1,
                1/14/2000 as EX-10.D)10.15*
            Joint
                Venture Agreement. , Largo Vista with the United Arab Petroleum
                Corporation ("UAPC"), known as Largo Vista/UAPC Partners (filed Form
                10SB-A1, 1/14/2000 as EX-10.F)





24


**Index**





10.16*
            Memorandum
                of Association Limited Liability Company. Largo Vista Group, Ltd.,
                LLC,
                Dubai, UAE, October 12, 1999, Largo Vista Group, Ltd., UAPC, and
                Sheik Al
                Shabani, named Largo Vista Group Limited, Limited Liability Company
                of the
                UAE (filed Form 10SB-A1, 1/14/2000 as EX-10.G)10.17*
            Contract:
                Mekong Petroleum Joint Venture Co., Ltd. (PETROMEKONG) Buyer, and
                United
                Arab Petroleum Corporation Seller, November 25, 1999 (filed Form
                10SB-A1,
                1/14/2000 as EX-10.H)10.18*
            Contract:
                Mekong Petroleum Joint Venture Co., Ltd. (PETROMEKONG), Buyer, and
                United
                Arab Petroleum Corporation Seller, December 18, 1999 (filed Form
                10SB-A1,
                1/14/2000 as EX-10.H)10.19*
            Employment
                Agreement Daniel J. Mendez 1999 (filed Form 10SB-A1 as Ex-3.iv,
                1/14/2000)10.20*
            Consultant
                Agreement Deng Shan 1999 (filed Form 10SB-A1, as Ex-3.v
                1/14/2000)10.21*
            Contract.
                "Enterprise Ownership Transfer Agreement", November 8, 1995, new
                translation (filed Form 10SB-A2, 3/20/2000 as
                EX-10.E.1)10.22*
            Contract.
                "Agreement on Payment", November 8, 1995 (filed Form 10SB-A2, 3/20/2000
                as
                EX-10.E.2)10.23*
            Contract.
                "Agreement on Supply of Liquified Petroleum Gas", March 18, 1996
                (filed
                Form 10SB-A2, 3/20/2000 as EX-10.E.3)10.24*
            Employment
                Agreement Albert N. Figueroa 1999 (filed as Ex-3.vi
                3/21/2000)10.25*
            Agreement
                on Zunyi Pipeline Project No.1 Largo Vista Group, Ltd - Proton Enterprise
                (Wuhan) LTD., China (Agent Agreement)10.26*
            Zunyi
                Pipeline #1 Contract Proton Enterprise (Wuhan) LTD. & Construction
                Headquarters of Zunyi Municipal Government, Dated February 2,
                200210.27*
            Gas
                Supply Contract Between Proton Enterprise (Wuhan) LTD. and Zunyi
                Government Administration Construction Team, Dated October 15, 2002
                40
                Years Exclusive Right10.28*
            Zunyi
                Jiahong Gas Co., Ltd. & Largo Vista Group, Ltd. Lease Agreement
                No.JHLGOV0802 Dated August 27, 200210.29*
            Policy
                Statement on Business Ethics and Conflicts of Interest10.30*
            Agreement
                and Assignment of Certain Contractual Rights and Benefits between
                Largo
                Vista Group, Ltd. and Shanghai Offshore Oil Group (HK) Co.,
                Ltd.21**
            Subsidiaries
              of Largo Vista Group,
              Ltd.31.1**
            Certification
                pursuant to Section 302 of the
                Sarbanes-Oxley Act of 2002 - Chief Executive
                Officer.31.2**
            Certification
                pursuant to Section 302 of the
                Sarbanes-Oxley Act of 2002 - Chief Financial
                Officer32.1**
            Certification
                of Deng Shan Pursuant to Section
                906 of the Sarbanes-Oxley Act of 2002.32.2**
            Certification
                of Denise Deng Pursuant to
                Section 906 of the Sarbanes-Oxley Act of
                2002




*
      Previously filed with the Securities and Exchange Commission


**Filed
      herewith





**ITEM
              14.**
            **PRINCIPAL
                ACCOUNTANT FEES AND
                SERVICES**





The
      following table sets forth fees billed to the Company by our auditors during
      the
      fiscal years ended December 31, 2006 and 2005:








DECEMBER
                31, 2006
            DECEMBER
                31, 20051.
                Audit Fees
            $
                58,174
            $
                106,1042.
                Audit Related Fees
            --
            --3.
                Tax Fees
            900
            --4.
                All Other Fees
            --
            --Total
                Fees
            $
                59,074
            $
                106,104








Audit
      fees consist of fees billed for professional services rendered for the audit
      of
      the Company's consolidated financial statements and review of the interim
      consolidated financial statements included in quarterly reports and services
      that are normally provided by Russell Bedford Stefanou Mirchandani LLP in
      connection with statutory and regulatory filings or engagements.








25


**Index**


Audit-related
      fees consists of fees billed for assurance and related services that are
      reasonably related to the performance of the audit or review of the Company's
      consolidated financial statements, which are not reported under "Audit Fees."
      There were no Audit-Related services provided in fiscal 2006 or 2005.





Tax
      fees
      consists of fees billed for professional services for tax compliance, tax advice
      and tax planning.





All
      other
      fees consist of fees for products and services other than the services reported
      above. There were no management consulting services provided in fiscal 2006
      or
      2005.




**Audit
      Committee’s Pre-Approval Policies and Procedures**





The
      Company currently does not have a designated Audit Committee, and accordingly,
      the Company's Board of Directors' policy is to pre-approve all audit and
      permissible non-audit services provided by the independent auditors. These
      services may include audit services, audit-related services, tax services and
      other services. Pre-approval is generally provided for up to one year and any
      pre-approval is detailed as to the particular service or category of services
      and is generally subject to a specific budget. The independent auditors and
      management are required to periodically report to the Company's Board of
      Directors regarding the extent of services provided by the independent auditors
      in accordance with this pre-approval, and the fees for the services performed
      to
      date. The Board of Directors may also pre-approve particular services on a
      case-by-case basis.





**SIGNATURES**





In
      accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934,
      the
      Registrant caused this report to be signed on its behalf by the undersigned,
      thereunto duly authorized.





LARGO
      VISTA GROUP, LTD.





Signature
            Title
            Date/s/Denise
                Deng
            Chief
                Financial Officer
            April
                13, 2007Denise
                Deng/s/Deng
                Shan
            Interim
                CEO
            April
                13, 2007Deng
                Shan










26