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

                                   FORM 10-KSB

(Mark One)
     [X]  Annual report under Section 13 or 15(d) of the Securities Exchange
          Act of 1934 for the fiscal year ended December 31, 2003

     [ ]  Transition report under Section 13 or 15(d) of the Securities
          Exchange Act of 1934

For the transition period from ____ to______.

                        Commission file number: 000-30516


                            CHINA GRANITE CORPORATION
                            -------------------------
        (Exact name of small business issuer as specified in its charter)


                Nevada                              880448920
       -------------------------------      --------------------------
        (State of Other Jurisdiction        (I.R.S. Employer I.D. No.)
       incorporation or organization)

2642 Collins Avenue, Suite 305, Miami, FL             33140
------------------------------------------      ------------------
(Address of principal executive offices)            (Zip Code)

Issuer's telephone number  (305) 534-1684
                           --------------


                                   Arbor, Inc.
    --------------------------------------------------------------------------
    (Former name, former address and former fiscal year, if changed since last
                                     report)

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

Securities Registered pursuant to Section 12(g) of the Act:
                    Common Stock, par value $0.001 per share
                    ----------------------------------------
                                (Title of class)

     Check  whether  the  issuer  (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
                                                                      ---    ---


<PAGE>
     Check  if  there is no disclosure of delinquent filers pursuant to Item 405
of  Regulation S-K (229.405 of this chapter) contained herein, and no disclosure
will  be  contained,  to  the  best of the 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.  Yes      No  X
                                                               ---     ---

     State Registrant's revenues for its most recent fiscal year: $2,493

     State the aggregate market value of the voting and non-voting common equity
held  by  non-affiliates  computed by reference to the price at which the common
equity  was  sold, or the average bid and asked prices of such common equity, as
of  a  specified  date  within  the  past  60  days:  11,442,8122 shares held by
non-affiliates  had an aggregate market value of $61,219,044 as at April 6, 2004

                   (APPLICABLE ONLY TO CORPORATE REGISTRANTS)

     State  the number of shares outstanding of each of the Registrant's classes
of  common  stock,  as  of  the  latest  practicable  date.

13,998,000  common  shares  issued  and  outstanding  as  of  April  6,  2004


                       DOCUMENTS INCORPORATED BY REFERENCE

None.

Transitional Small Business Disclosure Format (Check one):

     Yes     No  X
         ---    ---


<PAGE>
<TABLE>
<CAPTION>
                                TABLE OF CONTENTS


                                      PART I                              Page
<S>        <C>                                                            <C>
Item 1.    Description of Business                                           1
Item 2.    Description of Property                                          14
Item 3.    Legal Proceedings                                                14
Item 4.    Submission of Matters to a Vote of Security Holders              14

                                     PART II

Item 5.    Market for Common Equity and Related Stockholder Matters         15
Item 6.    Management Discussion and Analysis or Plan of Operation          16
Item 7.    Financial Statements                                            F-1
Item 8.    Changes in and Disagreements with Accountants on
           Accounting and Financial Disclosure                              19
Item 8A.   Controls and Procedures                                          20

                                     PART III

Item 9.    Directors, Executive Officers, Promoters and Control Persons;
           Compliance with Section 16 (a) of the Exchange Act               20
Item 10.   Executive Compensation                                           24
Item 11.   Security Ownership of Certain Beneficial Owners and
           Management and Related Stockholder Matters                       26
Item 12.   Certain Relationships and Related Transactions                   27
Item 13.   Exhibits and Reports on Form 8-K                                 28
Item 14.   Principal Accountant Fees and Services                           29

SIGNATURES

FINANCIAL STATEMENTS                                                       F-1

EXHIBITS
</TABLE>


<PAGE>
                                     PART I

Item 1.   Description of Business.

Overview

     China Granite Corporation conducts granite mining and processing operations
in  the  People's  Republic  of  China  (the  "PRC")  through  the  wholly-owned
subsidiary  of  its  subsidiary,  China  Laizhou  Bay  Mining  International
Corporation,  a  corporation  organized  under  the  laws  of the British Virgin
Islands  ("Laizhou").  This  operating  company, Laizhou Jia Sheng Stone Company
("Laizhou  China"),  is  a limited liability company organized under the laws of
the  People's  Republic  of  China.

     Unless  otherwise specified or the context otherwise requires, in this Form
10-KSB  the terms the "Company", "China Granite", "we", and "our" shall mean the
operations  or  business of China Granite Corporation, a Nevada corporation, and
its  subsidiaries. Unless otherwise specified or the context otherwise requires,
in  this  Form  10-KSB  the  term  "Arbor"  shall refer to the operations of the
Company  prior  to  the  reorganization  with  Laizhou.

Introduction

     We  were  incorporated  in  the  State of Nevada as E Investments, Inc., on
February  25, 1999, and subsequently changed our name to Arbor, Inc. on December
16,  1999.  We  originally  intended to engage in the business of manufacturing,
selling  and  distributing  fence  posts to be used by government parks, highway
departments,  ranchers  and  farmers throughout North America.  Due to a lack of
capital,  we  were  forced  to  abandon  our original business and examine other
business  options.

     In  October 2002, we appointed a new director, Mr. Costas Takkas, to assist
us  with our strategic planning and in forming a new direction for our business.
Mr.  Takkas  was responsible for the management of our new business direction in
2003  and  helped  to  focus  the  Company's  efforts on real estate development
projects  in  Brazil.

The  Brazil  Project

     In  October  and  November  2003  (the  "November  Placement"), we received
$500,000 ($250,000 of which came from Mr. Takkas) through a private placement of
600,000  shares of our restricted common stock to fund a real estate development
project  between  CPL  Construcoes e Comercio, Inc. ("CPL") and China Granite in
Brazil.  To this end a Brazilian corporation was formed to carry on the venture,
namely CPL Arbor do Brasil Construtora Limitada ("CPL Arbor"), which is owned in
equal  parts  by CPL and us. An aggregate of $425,000 of the funds raised in the
November  Placement have been committed to CPL Arbor.  Of this aggregate amount,
$325,000  is  a  loan to CPL Arbor and is repayable on October 31, 2004, with an
interest  rate  of  4%  above LIBOR. The remaining $100,000 is held in trust and
will  not  be  released  to  CPL  Arbor  unless  it


                                        1
<PAGE>
completes  the  infrastructure  work  for  the  project.  As  a  result  of  the
acquisition  of  Laizhou, we determined in February 2004 that we would no longer
pursue  the  Brazil  Project and we intend on selling our interest in CPL Arbor.
To  date,  however,  no  such  sale  has  been  consummated.

The  Laizhou  China  Project

     On February 5, 2004, we completed a reorganization with Laizhou pursuant to
a  Stock  Exchange  Agreement  and  Plan of Reorganization (the "Agreement"). We
intend  on continuing the business operations of Laizhou, which conducts granite
mining and processing operations in the PRC through its wholly owned subsidiary,
Laizhou  China. Laizhou China's operations consist of extracting granite blocks,
measured  in  cubic  meters,  from  quarries  and processing granite blocks into
finished  pieces measured in square meters: granite slabs, used in construction,
cladding,  thinner  pieces  often used for tile, and carved, decorative features
such  as  statues,  pedestals  and  ornaments.

     In  December  2003, we completed an additional private placement of 550,000
shares  of  restricted  common  stock  priced  at $1.00 per share (the "December
Placement'),  to  fund  an  initial  advance  to  Laizhou  China pursuant to the
Agreement  and,  to  pay for professional fees related to the transaction. There
were  no  finders'  fees  payable for either the November or December Placement.

The  Chinese  Granite  Industry

     According  to the China Stone Materials Industry Association (the "CSMIA"),
the  past  20 years have seen the Chinese stone market grow at an average annual
rate  of  20%.  As  data  in  the  China Home Decoration Materials Market Report
(published  in  June  2001) indicates, in the past decade the Chinese decorative
stone  market  has  expanded  rapidly.  In 1990, a total of 25.13 million square
meters  of  stone  was produced.   By 2000, a total of 120 million square meters
was  produced,  representing  a  477%  increase over the decade.  Breakdown into
various  groups indicates that some stones have become more popular than others:
whereas  in  1990  only 7.05 million square meters of marble were produced, this
number  went  up to 20.8 million square meters by 2000, an annual growth rate of
11%. The most remarkable growth came from granite, 5.73 million square meters of
which  were  produced  in  1990 and 87 million square meters in 2000 - an annual
growth  rate  exceeding  31%.

     The  Hong  Kong-based  online  trade  marketplace Alibaba.com estimates raw
material  output  of  Chinese  stone  in 2000 at 15 million tons, which does not
include  numerous  small rural production bases. The same report estimates total
output  value  of  Chinese  stone  in 2001 at 100 billion RMB ($12 billion). The
Italian  Institute  gives  the same figure for Foreign Trade. The Italian report
estimates  block production at 6 million cubic meters, which equals roughly 16.8
million  tons.  Slab  production  is  gauged in the report at 140 million square
meters,  of  which granite makes up 80 million square meters and marble makes up
40  million  square  meters.


                                        2
<PAGE>
     On  the  other  hand,  consumption  of stone in China was reported to be 60
million  square meters of slabs in 2000, which rose to 100 million square meters
in  2001,  according  to Alibaba.com. A 2002 report by the Shenzhen-based online
B2B  trade  marketplace  China  Building  Material  Commercial  Net  put Chinese
consumption  at  61.30  million  square  meters,  making the country the largest
consumer  of natural stone on the planet. Other large consumers and their levels
of  consumption  in  2002  of  decorative stone include Italy (56 million square
meters),  Germany  (44  million),  the United States (42 million), and Spain (40
million). The China Stone Materials Industry Association puts the total value of
consumed stone products in 2001 at 45-50 billion RMB ($5.4-6 billion).

     The  growth  in  Chinese  consumption of stone is expected to continue this
growth.  Compared to many players on the global stage, per capita consumption of
stone  in  China is extremely low at 0.05 square meters.  Greece leads the world
in per capita stone consumption with 1.5 square meters, followed by Saudi Arabia
and  Switzerland  (1.32  square meters), Italy (1.01 square meters), and Germany
(0.55  square  meters).  This  indicates  that  there  may be much more room for
growth,  provided  that Chinese consumers' taste develops the same partiality to
marble  pillars  and bathrooms and other decorative features that are typical of
European  countries.

     In  addition,  China is currently engaged in a significant expansion of new
construction.  The China Academy of Building Research, has forecast for the time
span  of 2001-2010, construction of new houses in rural areas covering 5 billion
square  meters,  public construction covering 1 billion square meters, and urban
housing  covering  3.35  billion  square  meters.  Given  the  low  per  capita
consumption and the ongoing construction boom in China, the China Stone Material
Industry Association expects decorative stone consumption to rise to 200 billion
RMB  ($24  billion)  by  2010, translating into a compound annual growth rate of
nearly  17%.  Per capita consumption will be raised from the current 0.05 square
meters  to  0.15  square  meters  in  2010.

Laizhou  and  Laizhou  China

     Laizhou  was  incorporated  on  January  6,  2004,  in the territory of the
British  Virgin Islands.  On  January 20, 2004, Laizhou acquired 100% of Laizhou
China.  Laizhou  has  no  other assets or operations other than its ownership of
Laizhou  China.  Laizhou China was organized on January 9, 2003 when it acquired
a  business  license  issued  by  the  Laizhou  Administration  for Industry and
Commerce.

     Laizhou  China is located in the Shandong Province on the East Coast of the
PRC.  The  Shandong  Province  is  the largest granite-producing region in Asia.
Laizhou China owns and operates two granite quarries, Shangjiashan Granite No. 1
Quarry  ("No.  1 Quarry") and  Laizhou Zuocun Town West Jiangjia Village Granite
Quarry  Group  14  ("Group  14  Quarry").  Laizhou  China  purchased  all of the
land-use  rights, buildings and stone product processing equipment for the Group
14 Quarry on February 15, 2003, and purchased mining equipment used at the No. 1
Quarry  on  July  7,  2003.


                                        3
<PAGE>
     No. 1 Quarry is an open-pit quarry located in Zuocun Town Laizhou City.  It
occupies  approximately  fifteen (15) hectares of land.  Its production scale is
approximately  7,500  cubic meters or 21,000 tons per year.  It produces granite
blocks  for  slabs,  tiles  and  pavers.

     Group  14  Quarry  is  an  open-pit quarry located in West Jiangjia Village
Laizhou  City.  Group  14  Quarry occupies approximately twelve (12) hectares of
land.  Its  production  scale is approximately 11,000 cubic meters per year.  It
produces  granite  blocks  for  slabs,  tiles,  carved architectural details and
statutes.

     The  mines  are  located  on two parcels of land that are leased by Laizhou
China  from  the  local PRC government body.  The mines consist of approximately
0.27  square  kilometers containing granite reserves in two marketable varieties
or  distinct  colors.

     Laizhou  China  has two stone processing factories: the yet-to-be completed
20,000  square  meter  facility (the "New Yard") and the old 18,000 square meter
factory  (the "Old Yard").  The New Yard is located in the Laizhou City Economic
Development  Zone  and  its  products  developed  for export are exempt from the
domestic  value added tax ("VAT").  The majority of blocks that are processed at
the  stone  processing  factory is first cut into slabs and checked for quality.
These  slabs  are  then  polished  and  cut  into  tiles  or  cladding.

     For the year ended December 31, 2003, Laizhou China processed approximately
39,000  square  meters  of  granite slab and cladding from 1,600 cubic meters of
granite  and  processed  additional  granite  to make approximately 3,000 custom
carved  features.

     Mining  Rights

     Pursuant  to  the  Mineral  Resources Law of the People's Republic of China
(1996),  mineral  resources  are  owned  by  the  national government.  Shandong
Province,  where  Laizhou China's operations are located, has autonomy in mining
concessions from the national government.  The mining concessions are negotiated
and  signed  with  the  city  government  in Laizhou and filed with the Shandong
Province  governmental  authority.

     Pursuant  to  the  Shandong  Province  Contract  for  Selling Mining Rights
between Laizhou China and the Laizhou Administration of State Land and Resources
(the "ASLR") and the PRC Mining Rights License issued by the ASLR, Laizhou China
owns  the  mining rights of the No. 1 Quarry from November 2003 to November 2008
with  options  to  extend  its  mining  rights  through  2048.

     Laizhou  China  also  operates  the  Group  14  Quarry.  Laizhou  China  is
currently  in the application process with the ASLR for the mining rights to the
Group  14 Quarry and expects to receive approval in April 2004.  The ASLR issued
the  PRC  Mining  Rights  License  for the Group 14 Quarry (the "Group 14 Mining
Rights")  on  August  29,  1998  to  West  Jiangjia  Village (a legal collective
organization).  On  January  10,  2003, one of the stockholders of Laizhou China
signed  a  mining  rights  lease  contract  with  the  Villager


                                        4
<PAGE>
Committee  of West Jiangjia Village and purchased the Group 14 Mining Rights for
$845,000  (7,000,000  Yuan).  On  March  3,  2003, that stockholder assigned the
Group  14  Mining  Rights  to Laizhou China for a payment of $845,000 (7,000,000
Yuan), the same amount that the stockholder originally paid for the rights.  The
Group  14  Quarry  is  in  full  operation  at  April  1,  2004.

     Mining  Equipment

     Laizhou China has one thirty ton excavator, one front end loader, 30 mining
drills, two generators and six air compressors, vehicles, tools and 11 buildings
for  processing, selling and managing the operations. During 2003, Laizhou China
contracted  with  outside  vendors  for  all  other  trucking  services.

     During the first quarter of 2004, Laizhou China completed both a geological
site survey and a development plan to determine what modern extraction equipment
is  needed  at  Laizhou  China's  two mines.  The survey and development plan is
intended  to  increase  the  rate of extraction of blocks for the manufacture of
slabs,  tiles  and sheets for cladding and to improve both the regularity of the
stone  and  the  sizes of stone Laizhou China is able to produce and distribute.
Laizhou China's facilities are not equipped to process cladding in large sheets.

     Customers

     In  2003,  approximately  25%  of Laizhou China's revenue came from Chinese
government  projects,  approximately  25%  came  from  commercial  pavers,
approximately  25%  came  from  commercial cladding, and the remainder came from
other projects.  In 2003, the granite products of Laizhou China were sold in the
following  markets:  (i) the local Chinese region (Beijing) 40%: (ii) exports to
Korea  30%;  (iii)  exports  to  Japan  20%%;  and  (iv) Shanghai/Hong Kong 10%.

     Competition

     Competition  in  the  Chinese  granite market is extremely fragmented.  The
Laizhou  area  contains  approximately  300  quarries and 2,000 stone processing
factories.  In  the  Fujian Province of southern China, there are several larger
scale  granite  mining  and  processing  operations.

     Major  stone  quarrying and production bases are numerous throughout China.
According  to the China Home Decoration Materials Market Report, Fujian Province
is  the  largest geographic producer of granite, with a 46% share of the Chinese
market.  Other  granite  producing provinces include Guangdong (19% share of the
Chinese  market)  and  Shandong  (12%).

     The  four  most  notable quality stone processing (as opposed to quarrying)
bases  in  China  are:  Nan'an  in Fujian province, Yunfu in Guangdong province,
Ya'an  in  Sichuan  province,  and  Laizhou  in  Shandong  province.


                                        5
<PAGE>
     According  to  the  Italian  Institute  for  Foreign  Trade (as reported in
"Building Sector Series 05: Chinese Decorative Stone Market," March 2003), there
are  approximately  30,000  companies  in  China  engaged in the stone business,
employing  a total workforce of about 6 million workers. Quarries employ roughly
1.5  million  workers,  processing  facilities  4  million,  and  machinery
manufacturing  about  500,000.

     With  economic  reforms rippling through the Chinese market, a large number
of  private  companies  have formed, and are competing for, market share. Due to
early  economic reforms in Guangdong province, a number of well known processing
companies  were formed and are currently operating, including Yongguang Xiongdi,
Ronghuafu,  and  Jinshan  Stone  Material  Company.

     There  are  two  major foreign-funded stone block and slab companies in the
Chinese  market,  both  of  which are larger than Laizhou China. One is the Hong
Kong-funded  Universal Marble & Granite Group Ltd., which produces approximately
50,000  square  meters  of marble and granite slabs. The other is Spanish-funded
Jinan Blue Star. According to the Chinese Markets Yearbook 2003, Jinan Blue Star
had revenue of more than 86 million RMB (approximately US$10.4m) in 2001, with a
profit  of 6.7 million RMB (approximately US$900,000). The company produces only
rough granite material, whereas Universal Marble & Granite produces high-quality
finished  products.  There  are approximately 400 foreign funded firms active on
the  Chinese  decorative  stone  market.

     Granite Production and Prices

     In  2003,  Group  14  Quarry  yielded  approximately  9,000 cubic meters of
granite  blocks.  The average size of the granite blocks was approximately three
to  four  cubic  meters.  The  average  price for mined blocks is $160 per cubic
meter  based  on a price range $120 to $200, depending on the quality and demand
for  a  particular  stone  color.

     In  2003,  No. 1 Quarry yielded approximately 6,000 cubic meters of granite
blocks.  The  average  size  of the granite blocks was approximately three cubic
meters.  The  average  price for mined blocks is $160 per cubic meter based on a
price  range  of  $120  to  $200,  depending  on  the  quality  and demand for a
particular  stone  color.

     Reserves

     According  to  a  geo-mining  survey  performed  by  an  Italian consulting
geologist  hired  by the Company, granite reserves may allow production of up to
20,000  cubic  meters  per  year  for  over  a  twenty  (20)  year  period.

     Employees

     As  of  December  31,  2003,  Arbor  did  not have any employees other than
officers.  As of April 6, 2004, Laizhou China has 99 employees. Of those, 53 are
in  mining,  23  are  in  the  processing  yard,  and  21  are  in  sales  and
administration.  Laizhou  China  expects  to


                                        6
<PAGE>
hire  approximately  50  additional  mining employees in 2004.  The Company also
retains  consultants  on  a  contract basis to meet internal corporate needs and
develop  business.  The Company believes that relations with employees are good.
None  of the Company's employees belong to any unions or organized labor groups.

CAUTIONARY STATEMENTS REGARDING FUTURE RESULTS OF OPERATIONS

     You should read the following cautionary statements in conjunction with the
factors  discussed  elsewhere  in  this Annual Report and other of the Company's
filings  with  the  Securities  and  Exchange  Commission.  These  cautionary
statements  are  intended  to  highlight  certain  factors  that  may affect the
Company's  financial condition and results of operations and are not meant to be
an exhaustive discussion of risks that apply to companies such as China Granite.
Like  other businesses, the Company is susceptible to macroeconomic downturns in
the  PRC  and  other  economies that may affect the general economic climate and
performance  of  China  Granite  or  its  customers. Similarly, the price of the
Company's  securities  is  subject  to volatility due to fluctuations in general
market  conditions,  differences  in  results  of  operations from estimates and
projections  generated  by the investment community and other factors beyond the
Company's  control.

     RISKS RELATING TO OUR OPERATIONS:

WE MAY NEED FURTHER CAPITAL.

     Based  on  current  reserves  and anticipated cash flow from operations, we
currently  anticipate  that  the  available funds will be sufficient to meet our
anticipated  needs  for  working  capital,  capital  expenditures  and  business
expansion  for  12  months.  Thereafter, we will need to raise additional funds.
If any of our assumptions are incorrect, we may need to raise capital before the
end of 12 months.  If additional funds are raised through the issuance of equity
or  convertible  debt  securities,  the percentage ownership of our stockholders
will  be  reduced,  stockholders  may  experience  additional  dilution and such
securities  may  have  rights, preferences and privileges senior to those of our
common  stock.  There  can  be  no  assurance  that additional financing will be
available  on  terms  favorable  to  us  or  at  all.  If adequate funds are not
available  or  are not available on acceptable terms, we may not be able to fund
expansion, take advantage of unanticipated acquisition opportunities, develop or
enhance  services  or  products  or  respond  to  competitive  pressures.  Such
inability  could  have  a  material  adverse  effect on our business, results of
operations  and  financial  condition.

WE  ARE  THE PRODUCT OF A RECENT MERGER, AND HAVE A LIMITED OPERATING HISTORY ON
WHICH  TO  EVALUATE  OUR  POTENTIAL  FOR  FUTURE  SUCCESS.

     On February 5, 2004, we completed a reorganization with Laizhou pursuant to
the  Agreement.  We  intend  on  continuing  the business operations of Laizhou,
which  conducts  granite mining and processing operations in the PRC through its
wholly-owned


                                        7
<PAGE>
subsidiary,  Laizhou  China.  We  have  only  a  limited  operating history as a
combined  company upon which you can evaluate our business and prospects, and we
have  yet  to  develop  sufficient  experience  regarding  actual revenues to be
received  from  our  combined  operations.

     You  must  consider  the  risks and uncertainties frequently encountered by
companies  in  situations such as ours, including but not limited to the ability
to  grow  and  prosper  and  finance  such  growth.  If  we  are unsuccessful in
addressing  these  risks  and uncertainties, our business, results of operations
and financial condition will be materially and adversely affected.

WE  MAY  FACE STRONG COMPETITION FROM OTHER MINING COMPANIES FOR THE ACQUISITION
OF  NEW  PROPERTIES.

     Mines have limited lives and as a result, we may seek to replace and expand
our reserves through the acquisition of new properties.  In addition, there is a
limited  supply  of desirable mineral lands available in the PRC and other areas
where  we  would  consider  conducting exploration and/or production activities.
Because  we  may  face  strong  competition for new properties from other mining
companies,  some of whom may have greater financial resources than we do, we may
be  unable to acquire attractive new mining properties on terms that we consider
acceptable.

     RISKS RELATED TO DOING BUSINESS IN THE PRC:

     Laizhou  operates from facilities that are located in the People's Republic
of  China.  Accordingly,  its  operations  must  conform  to  the  governmental
regulations  and  rules  of  China.

THE  PRC  LEGAL  SYSTEM  HAS  INHERENT  UNCERTAINTIES THAT COULD LIMIT THE LEGAL
PROTECTIONS  AVAILABLE  TO  YOU.

     The  practical  effect of the PRC's legal system on our business operations
in China can be viewed from two separate but intertwined considerations.  First,
as  a  matter  of  substantive law, the Foreign Invested Enterprise laws provide
significant  protection  from  government interference.  In addition, these laws
guarantee the full enjoyment of the benefits of corporate Articles and contracts
to  Foreign  Invested  Enterprise  participants.  These laws, however, do impose
standards  concerning  corporate  formation  and  governance,  which  are  not
qualitatively  different  from  the corporation laws found in the United States.
Similarly,  PRC  accounting  laws mandate accounting practices, which may not be
consistent  with  US  Generally  Accepted  Accounting  Principles.  The  China
accounting  laws  require  that  an  annual  "statutory  audit"  be performed in
accordance  with  People's  Republic  of China accounting standards and that the
books  of  account  of Foreign Invested Enterprises are maintained in accordance
with  Chinese  accounting  laws.  Article  14  of  the  PRC Wholly Foreign-Owned
Enterprise  Law  requires  a  Wholly  Foreign-Owned Enterprise to submit certain
periodic  fiscal  reports  and  statements  to  designate  financial  and  tax
authorities,  at  the  risk  of  business  license  revocation.


                                        8
<PAGE>
     Second,  while  the enforcement of substantive rights may appear less clear
than  United States procedures, Foreign Invested Enterprises and Wholly Foreign-
Owned Enterprises are Chinese registered companies that enjoy the same status as
other  Chinese  registered companies in business-to-business dispute resolution.
The  Chinese  legal  infrastructure is significantly different in operation from
its  United  States counterpart, and may present a significant impediment to the
operation  of  Foreign  Invested  Enterprises.

     Laizhou China is organized under the laws of the PRC and is governed by its
articles  of association. The Chinese legal system is based on written statutes.
Prior  court  decisions  may  be  cited  for  reference  but  are not binding on
subsequent  cases  and  have limited precedential value. Since 1979, the Chinese
legislative  bodies  have  promulgated  laws  and  regulations dealing with such
economic  matters  as foreign investment, corporate organization and governance,
commerce,  taxation  and  trade. However, because these laws and regulations are
relatively  new,  and  because  of the limited volume of published decisions and
their  non-binding  nature, the interpretation and enforcement of these laws and
regulations  involve  uncertainties.

NEGATIVE IMPACT UPON ECONOMIC REFORM POLICIES OR NATIONALIZATION COULD RESULT IN
A TOTAL INVESTMENT LOSS IN OUR COMMON STOCK.

     Since  1979,  the  Chinese  government  has  reformed its economic systems.
Because  many reforms are unprecedented or experimental, they are expected to be
refined  and  improved.  Other  political,  economic and social factors, such as
political  changes,  changes  in  the  rates of economic growth, unemployment or
inflation,  or  in  the  disparities in per capita wealth between regions within
China, could lead to further readjustment of the reform measures.  This refining
and readjustment process may negatively affect our operations.

     Although  the  Chinese government owns the majority of productive assets in
China,  including  mines  and  quarrying  sites,  in  the past several years the
government  has  implemented  economic  reform  measures  that  emphasize
decentralization and encourage private economic activity. Because these economic
reform  measures  may  be  inconsistent  or ineffectual, there are no assurances
that:

     -    We  will  be  able  to  capitalize  on  economic  reforms;
     -    The  Chinese  government  will continue its pursuit of economic reform
          policies;
     -    The  economic  policies,  even  if  pursued,  will  be  successful;
     -    Economic policies will not be significantly altered from time to time;
          and
     -    Business  operations  in  China will not become subject to the risk of
          nationalization.

     Over the last few years, China's economy has registered a high growth rate.
Recently,  there  have  been indications that rates of inflation have increased.
In  response,


                                        9
<PAGE>
the  Chinese  government  recently  has  taken measures to curb this excessively
expansive  economy.  These  measures  have  included  restrictions  on  the
availability  of  domestic credit, reducing the purchasing capability of certain
of  its  customers,  and  limited  re-centralization of the approval process for
purchases  of  some  foreign  products.  These  austerity measures alone may not
succeed  in slowing down the economy's excessive expansion or control inflation,
and  may  result  in  severe  dislocations  in the Chinese economy.  The Chinese
government  may adopt additional measures to further combat inflation, including
the establishment of freezes or restraints on certain projects or markets. These
measures  may  adversely  affect  our  operations.

     To  date reforms to China's economic system have not adversely impacted our
operations  and  are  not  expected  to  adversely  impact  operations  in  the
foreseeable  future;  however,  there  can  be  no assurance that the reforms to
China's  economic system will continue or that we will not be adversely affected
by  changes in China's political, economic, and social conditions and by changes
in  policies of the Chinese government, such as changes in laws and regulations,
measures  which may be introduced to control  inflation,  changes in the rate or
method of taxation, imposition of additional restrictions on currency conversion
and  remittance  abroad,  and  reduction in tariff  protection  and other import
restrictions.

OUR MINING RIGHTS ARE SUBJECT TO GOVERNMENTAL CONTROL AND RENEWAL.

     The  Company's  mining  rights  are  subject  to  renewals  by the relevant
governmental  authority.  The  Company  is awaiting final approval of its mining
rights  to  the  Group  14  Quarry.  Despite the Company having received written
confirmation  from  the  governmental  authority, there is no guarantee that the
Company  will  be  granted  the  renewals.

YOU MAY EXPERIENCE DIFFICULTIES IN EFFECTING SERVICE OF LEGAL PROCESS, ENFORCING
FOREIGN JUDGMENTS OR BRINGING ORIGINAL ACTIONS IN THE PRC BASED ON U.S. OR OTHER
FOREIGN  LAW  AGAINST  OUR  MANAGEMENT  AND  US.

     Laizhou China, our operating company, is incorporated under the laws of the
PRC,  and  substantially  all of our assets are located in the PRC. In addition,
many  of  our directors, managers, and executive officers reside within the PRC,
and substantially all of the assets of these persons are located within the PRC.
As  a  result,  it  may  not be possible to effect service of process within the
United  States  or elsewhere outside the PRC upon certain directors, supervisors
or  executive  officers,  including  with  respect to matters arising under U.S.
federal  securities  laws or applicable state securities laws. Moreover, the PRC
does  not have treaties providing for the reciprocal recognition and enforcement
of judgments of courts with the United States, the United Kingdom, Japan or many
other  countries.  As  a  result,  recognition  and  enforcement  in  the PRC of
judgments  of  a  court  in the United States and any of the other jurisdictions
mentioned  above  in  relation  to  any  matter  may be difficult or impossible.
Furthermore,  an  original  action  may  be  brought  in


                                       10
<PAGE>
the  PRC  against us, our directors, managers, or executive officers only if the
actions  are  not  required  to  be  arbitrated  by  PRC law and Laizhou China's
articles  of  association,  and  only if the facts alleged in the complaint give
rise  to  a  cause of action under PRC law. In connection with any such original
action,  a  PRC  court  may  award  civil liability, including monetary damages.

GOVERNMENT  CONTROL  OF  CURRENCY CONVERSION AND THE FLUCTUATION OF THE RENMINBI
MAY MATERIALLY AND ADVERSELY AFFECT OUR OPERATIONS AND FINANCIAL RESULTS.

     We  receive  substantially all of our revenues in Renminbi, which currently
is  not  a  freely  convertible  currency.  The  Chinese  government may, at its
discretion,  restrict  access  in  the  future to foreign currencies for current
account transactions. If this were to occur, we may not be able to pay dividends
in  foreign  currencies  to  our  shareholders.

     The  value  of  the  Renminbi  against the U.S. dollar and other currencies
fluctuates  and  is  affected  by,  among  other  things,  changes  in the PRC's
political  and  economic conditions. Since 1994, the conversion of Renminbi into
foreign  currencies,  including  Hong  Kong  and U.S. dollars, has been based on
rates  set  by  the  People's  Bank  of  China, which are set daily based on the
previous  day's  interbank  foreign  exchange  market rates and current exchange
rates on the world financial markets. Since 1994, the official exchange rate for
the  conversion  of  Renminbi  to  U.S.  dollars  generally has been stable. Any
devaluation  of  the  Renminbi, however, may materially and adversely affect the
value  of,  and  any dividends payable on, our shares in foreign currency terms,
since  we  will  receive  substantially  all  of  our  revenues, and express our
profits, in Renminbi. Our financial condition and results of operations also may
be  affected  by  changes  in  the  value  of  certain currencies other than the
Renminbi.  The  Company's  results  may  be adversely affected by changes in the
political and social conditions in the PRC, and changes in governmental policies
with  respect  to  laws  and  regulations,  anti-inflationary measures, currency
conversion and remittance abroad, and rates and methods of taxation, among other
things.

     RISKS RELATED TO THE GRANITE MINING INDUSTRY:

WE  OPERATE  IN  A  SPECIALIZED  INDUSTRY  THAT  REQUIRES  MODERN FACILITIES AND
EQUIPMENT.

     The  Company  operates  in  business  segments  that  require  the  use  of
specialized  facilities  and  technology.  The Company currently relies on older
equipment, such as drills, excavators and loaders, and facilities to process the
raw granite blocks to maintain its production level.  There is no guarantee that
the  Company will be able to upgrade its equipment, facilities and technology to
increase  production  and  make  operations  more  efficient.


                                       11
<PAGE>
OUR CASH FLOW DEPENDS HEAVILY ON THE MARKET PRICE FOR GRANITE.

     The  cash  flow  and  profitability of the Company's current operations are
significantly  affected  by  the  market  price  of  granite that is affected by
numerous  factors  beyond  the  Company's control.  Specifically, the prices for
granite  slabs  and cladding depend heavily on the type and amount of commercial
and  residential  construction  in  the  PRC.

Factors that could cause such volatility may include, among other things:

  -  actual  or  anticipated  fluctuations  in  our quarterly operating results;
  -  conditions  or trends in the mining industries and governmental regulations
     that  affect  such  industries;
  -  changes  in the market valuations of other mining companies, especially our
     partners  and  competitors;
  -  general  market  conditions; and political events, including actions by the
     PRC  government.

OUR COMMON STOCK PRICE IS LIKELY TO BE HIGHLY VOLATILE.

     Our  common  stock price is likely to be highly volatile.  The market price
of  our  common stock has been, and is likely to continue to be, highly volatile
as  the  stock  market  in  general,  and  the  market  for  mining companies in
particular, has been highly volatile.  Investors may not be able to resell their
shares  of  our  common  stock  following  periods  of volatility because of the
market's  adverse  reaction  to  volatility.  The  trading prices of many mining
companies'  stocks  have been highly volatile, and we cannot assure you that our
stock will trade at the same levels of other mining stocks or that mining stocks
in  general  will  sustain  their  current  market  prices.

     ENVIRONMENTAL  AND  GOVERNMENTAL  REGULATIONS

     Our  operations  are  subject  to  and affected by national, provincial and
local  laws  and regulations relating to the environment, health and safety, and
other  regulatory  matters.  Certain  of  our  operations  may from time to time
involve  the  use  of  substances  that  are  classified  as  toxic or hazardous
substances  within  the  meaning  of  these  laws and regulations. Environmental
operating  permits  are,  or  may be, required for certain of our operations and
such  permits are subject to modification, renewal, and revocation. We regularly
monitor  and review our operations, procedures, and policies for compliance with
these  laws  and  regulations.  Despite  these  compliance  efforts,  risk  of
environmental liability is inherent in the operation of our businesses, as it is
with  other  companies  engaged  in  similar  businesses,  and  there  can be no
assurance that environmental liabilities will not have a material adverse effect
on  us  in  the  future.

     We  believe  that our operations and facilities, both owned and leased, are
in  substantial  compliance  with  applicable  laws and regulations and that any
noncompliance  is not likely to have a material adverse effect on our operations
or  financial condition. See "Legal Proceedings" on page __ of this Form 10-KSB.
However,  future  events,  such  as  changes  in  or modified interpretations of
existing  laws and regulations or enforcement policies, or further investigation
or  evaluation  of  the potential health hazards of certain products or business
activities,  may  give  rise to additional compliance and other costs that could
have  a  material  adverse  effect  on  our operations and business. We, through
safety  information  sheets  and  other means, communicate what we believe to be
appropriate  warnings  and cautions to employees about the risks associated with
granite  mining  and  processing.


                                       12
<PAGE>
ENVIRONMENTAL  LIABILITY COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR OPERATIONS;
POTENTIAL  LITIGATION  ARISING FROM OUR OPERATIONS COULD HAVE A MATERIAL ADVERSE
EFFECT  ON  OUR  FINANCIAL  CONDITION

     From  time  to  time  claims  of  various  types may be asserted against us
arising out of our operations in the normal course of business, including claims
relating to land use and permits, safety, health and environmental matters. Such
matters  are  subject  to many uncertainties and it is not possible to determine
the probable outcome of, or the amount of liability, if any, from these matters.
In  the  opinion  of  our  management  (which  opinion  is  based  in  part upon
consideration  of  the  opinion  of counsel), it is unlikely that the outcome of
these  claims will have a material adverse effect on our operations or financial
condition.  However, there can be no assurance that an adverse outcome in any of
such  litigation would not have a material adverse effect on us or our operating
segments.

SOME  OF  THE  INFORMATION  IN  THIS  ANNUAL  REPORT  ON  FORM  10-KSB  CONTAINS
FORWARD-LOOKING  STATEMENTS.

     Some  of  the  information  in  this  Annual Report on Form 10-KSB contains
forward-looking  statements  that  involve  risks  and  uncertainties.  You  can
identify  these  statements  by  forward-looking  words  such  as "may," "will,"
"expect,"  "anticipate,"  "believe," "estimate" and "continue" or similar words.
You  should  read  statements  that  contain these words carefully because they:

  -  discuss  our  expectations  about  our  future  performance;
  -  contain  projections  of  our  future  operating  results  or of our future
     financial  condition;  or
  -  state  other  "forward-looking"  information.

     We  believe  it  is  important  to  communicate  our  expectations  to  our
stockholders.  There  may be events in the future, however, that we are not able
to predict accurately or over which we have no control.  The risk factors listed
in  this  section,  as  well  as  any cautionary language in this Annual Report,
provide  examples  of  risks, uncertainties and events that may cause our actual
results  to  differ  materially  from  the  expectations  we  describe  in  our
forward-looking  statements.  You  should  be  aware  that  the  occurrence  of


                                       13
<PAGE>
any  of  the events described in these risk factors and elsewhere in this Annual
Report  could  have  a  material  and adverse effect on our business, results of
operations  and  financial  condition.

Item 2.   Description of Property

Principal  Offices

     Laizhou  China is located in the Shandong Province of China, and our mining
properties  are  described above. Our principal executive offices are located at
2642 Collins Avenue, Suite 305, Miami, Florida 33140.  We currently utilize this
space  from  one of our directors for no charge.  This space is suitable for our
current  uses  and  it  is  easily  replaceable  in  the event that we decide to
relocate.

Item 3.   Legal Proceedings

     We  have  no  pending  legal  proceedings.  From  time  to  time, we may be
involved  in  various  claims,  lawsuits,  disputes  with third parties, actions
involving allegations of discrimination or breach of contract actions incidental
to  the  normal operations of the business. We are currently not involved in any
such  litigation.

     Granite  mining  and  processing  entails  an  inherent  risk  of  workers'
compensation and environmental liability. We may be named as a defendant in such
lawsuits  and  thus  become  subject to the attendant risk of substantial damage
awards.  We  believe  that  we have adequate insurance coverage. There can be no
assurance,  however,  we will not be sued, that any such lawsuit will not exceed
our  insurance  coverage,  or  that we will be able to maintain such coverage at
acceptable  costs  and  on  favorable  terms.

Item 4.   Submission of Matters to a Vote of Security Holders

     No  matter was submitted to a shareholder vote during the fourth quarter of
the  2003  fiscal year.  An information statement on Schedule 14C was filed with
the  SEC and mailed to shareholders on March 11, 2004. The information statement
informed  shareholders  that,  pursuant  to  majority  written  consent  of  our
shareholders,  we  (i)  amended  and  restated our articles of incorporation to,
among  other  things, change our name to China Granite Corporation, (ii) amended
and  restated  our bylaws, (iii) adopted a stock option plan, and (iv) appointed
three  new  members  to  our  Board  of  Directors.


                                       14
<PAGE>
                                     PART II

Item 5.   Market for Common Equity and Related Stockholder Matters

General

     We  trade on the Over The Counter Bulletin Board ("OTCBB") under the symbol
"CGNT".  The  following  quotations reflect the high and low bids for our common
stock  based  on  inter-dealer  prices,  without  retail  mark-up,  mark-down or
commission  and  may  not  represent  actual  transactions. The high and low bid
prices  for  our  common shares for each full financial quarter for the two most
recent  full  fiscal  years  were  as  follows:

<TABLE>
<CAPTION>
                      -------------------------------------
                        Quarter Ended     High     Low
                      -------------------------------------
<S>                                     <C>       <C>
                      2003
                      -------------------------------------
                      4th Quarter         $3.30   $0.70
                      -------------------------------------
                      3rd Quarter         $1.01   $0.75
                      -------------------------------------
                      2nd Quarter         $1.03   $0.30
                      -------------------------------------
                      1st Quarter         $1.05   $0.40
                      -------------------------------------
                      2002
                      -------------------------------------
                      4th Quarter         $1.98   $0.49
                      -------------------------------------
                      3rd Quarter         $1.48   $0.95
                      -------------------------------------
                      2nd Quarter         $3.05   $0.45
                      -------------------------------------
                      1st Quarter         $3.70   $1.60
                      -------------------------------------
</TABLE>

     As  of April 6, 2004, the shareholders' list for our common stock showed 38
registered  shareholders  of  record  and  13,998,000  common  shares issued and
outstanding.  We  believe that there are approximately 500 beneficial holders of
our  common  stock.  On  April 6, 2004, the closing price of our common stock on
the  OTCBB  was  $5.35.

Dividend  Policy

     We  have  never  declared a dividend on our common stock. We have not paid,
nor  declared, any dividends since our inception and we do not intend to declare
any  such  dividends  in the foreseeable future. Our ability to pay dividends is
subject to limitations imposed by Nevada law. Under Nevada law, dividends may be
paid to the extent that the a corporation's assets exceed its liabilities and it
is  able  to  pay  its debts as they become due in the usual course of business.

     As  of  December  31,  2003,  we did not have any securities authorized for
issuance  under  equity  compensation  plans.

     On  February  4,  2004, we adopted the 2004 Stock Option Plan (the "Plan").
Under  the  Plan,  One  Million  Four Hundred Thousand (1,400,000) shares of our
common  stock  are reserved for issuance to selected officers and key employees.
The  purpose  of the Plan is to encourage selected officers and key employees to
accept  or  continue employment with the Company or its Affiliates; and increase
the  interest  of  selected  officers,  directors,


                                       15
<PAGE>
key employees and consultants in our welfare through participation in the growth
in  value of our common stock of the Company.  A copy of the Plan has been filed
as  an  exhibit  to  this  Annual  Report.

Recent Sales of Unregistered Securities

     In October and November 2003, the Company completed the November Placement.
We  sold 600,000 shares of our restricted common stock for $500,000.  A director
and  the  then President, Costas Takkas, purchased 300,000 of these shares.  The
November  Placement  was  made  only  to  accredited  investors  without general
solicitation  in  compliance with Regulation D of the Securities Act of 1933, as
amended.  There  were  no  finders'  fees  or brokerage commissions paid for the
November  Placement.

     In  December 2003, the Company completed the December Placement, selling an
aggregate  of 550,000 shares of our restricted common stock for $1.00 per share.
Mr.  Costas  purchased 50,000 of these shares and Stephen Spoonamore, a director
and the then Secretary, purchased 30,000 of these shares. The December Placement
was made only to accredited investors without general solicitation in compliance
with  Regulation  D  of  the  Securities  Act of 1933, as amended. There were no
finders'  fees  or  brokerage  commissions  paid  for  the  December  Placement.

     In  April  2004,  the  Company completed an additional private placement of
500,000  shares of restricted common stock priced at $3.00 per share (the "April
Placement").  Mr.  Costas  purchased  2,000  of  these shares and Mr. Spoonamore
purchased  10,000  of  theses  shares.  The  April  Placement  was  made only to
accredited  investors without general solicitation in compliance with Regulation
D  of  the  Securities  Act  of 1933, as amended. There were no finders' fees or
brokerage  commissions  paid  for  the  April  Placement.

Item 6.   Management Discussion and Analysis or Plan of Operation

     We  were  incorporated  in  the  State of Nevada as E Investments, Inc., on
February  25, 1999, and subsequently changed our name to Arbor, Inc. on December
16,  1999.  We  originally  intended to engage in the business of manufacturing,
selling  and  distributing  fence  posts to be used by government parks, highway
departments,  ranchers  and  farmers throughout North America.  Due to a lack of
capital,  we  were  forced  to  abandon  our original business and examine other
business  options.

     On February 5, 2004, we completed a reorganization with Laizhou pursuant to
the  Agreement.  We  intend  on  continuing  the business operations of Laizhou,
which  conducts  granite mining and processing operations in the PRC through its
wholly  owned  subsidiary,  Laizhou  China.

     In  2004, we will focus on the business operations of Laizhou China and the
acquisition  of  other  granite mining properties in the PRC. As a result of the
acquisition  of Laizhou, we will no longer pursue the Brazil Project and plan to
sell  our  interest  in  CPL  Arbor.


                                       16
<PAGE>
     Beginning  in  the  first  quarter  of  2004, we completed the site surveys
needed  to install modern extraction equipment at our two quarries, No. 1 Quarry
and  Group 14 Quarry.  We believe that newer equipment will increase the rate of
extraction  of  granite  blocks  for slabs and tiles and vastly improve both the
regularity  of  the stone and the sizes of stone that we are able to process and
sell.  The  newer  equipment  will  also reduce the damage to the granite blocks
extracted, thereby improving the quality of our products and reducing waste.  We
also  plan  on hiring a new quarry master to supervise and manage both quarries.

     During the second quarter of 2004, we plan to add equipment to each mine in
addition  to  reconfiguring  how the property is mined.  Examples of the type of
equipment planned for purchase at the Group 14 Quarry includes: a 30-ton loader,
a  33-ton  excavator,  a 30-ton off road dump truck, 16 manual rock drills and a
horizontal  rock  drill.  Examples of the type of equipment planned for purchase
at  No.  1  Quarry includes: a 30-ton loader, a 33-ton excavator, 16 manual rock
drills,  a  horizontal  rock  drill,  and  a  diamond  wire  cutting system.  We
currently  estimate  that this equipment will cost an aggregate of approximately
$1,500,000.  We  plan  to  partially  finance these acquisitions with $2,050,000
raised in private placement offerings completed in December 2003 and April 2004.
The  balance  of the financing will take the form of debt.  We currently have no
arrangements  for  any  financing,  and  there  can  be  no  assurance that such
financing  will  be  available  on  terms  acceptable  to  us.

     The  operations  of  the  Company  prior  to  February  5,  2004,  were the
operations of Arbor, Inc.  Subsequent to February 5, 2004, the operations of the
Company  will  reflect the continuation of the operations of Laizhou and Laizhou
China.

The  Company  (formerly  Arbor,  Inc.)

     Results  of  Operation

Year Ended December 31, 2003 Compared With Year Ended December 31, 2002

     Revenues.  Revenues  for  the  twelve  months  ended December 31, 2003 were
     --------
$2,493, compared to $0 for the twelve months ended December 31, 2002.  The small
revenue  in  2003  was from interest accrued on the loan to CPL Arbor.  Prior to
the  reorganization  with  Laizhou  in  February  2004,  the Company focused its
efforts  on  the development of a viable business model, and therefore generated
no  revenues  from  operations.

     General  and  Administrative Expenses.  General and administrative expenses
     -------------------------------------
in  the year ended December 31, 2003 were $238,182, an increase from $83,120 for
the year ended December 31, 2002. The increase was due primarily to the increase
in  our  operations to complete the reorganization with Laizhou in February 2004
and  to  consummate  the  Brazil  Project  with  CPL  Arbor.


                                       17
<PAGE>
     Net  Loss.  As  a  result  of the foregoing factors, the Company's net loss
     ---------
increased  to  $236,578 for the year ended December 31, 2003, from a net loss of
$83,259  for the year ended December 31, 2002.  The Company's net loss per share
increased to $0.03 for the year ended December 31, 2003, from $0.01 for the year
ended  December  31, 2002, due to an increase in 2003 in the Company's net loss.

     Liquidity and Capital Resources

     In October and November 2003, the Company completed the November Placement.
We  sold 600,000 shares of our restricted common stock for $500,000.  A director
and  the  then President, Costas Takkas, purchased 300,000 of these shares.  The
November  Placement  was  made  only  to  accredited  investors  without general
solicitation  in  compliance with Regulation D of the Securities Act of 1933, as
amended.  There  were  no  finders'  fees  or brokerage commissions paid for the
November  Placement.

     In  December 2003, the Company completed the December Placement, selling an
aggregate  of 550,000 shares of our restricted common stock for $1.00 per share.
The  December  Placement  was  made only to accredited investors without general
solicitation  in  compliance with Regulation D of the Securities Act of 1933, as
amended.  There  were  no  finders'  fees  or brokerage commissions paid for the
December  Placement.

     In  April  2004,  the  Company completed an additional private placement of
500,000  shares of restricted common stock priced at $3.00 per share (the "April
Placement").  The  April Placement was made only to accredited investors without
general  solicitation  in  compliance with Regulation D of the Securities Act of
1933, as amended.  There were no finders' fees or brokerage commissions paid for
the  April  Placement.

     The  Company  estimates  that after giving effect to the November, December
and  April Placements, the current capital reserves that result will allow China
Granite  to  operate  for  at  least twelve months without relying on additional
financing.  If  additional  funds  are  raised through the issuance of equity or
convertible  debt  securities,  the  percentage  ownership  of  the  Company's
stockholders  will  be  reduced, stockholders may experience additional dilution
and  such securities may have rights, preferences and privileges senior to those
of  China  Granite's  common  stock.  There  can be no assurance that additional
financing  will  be available on terms favorable to China Granite or at all.  If
adequate  funds  are not available or are not available on acceptable terms, the
Company  may  not  be  able  to  fund expansion, take advantage of unanticipated
acquisition opportunities, develop or enhance services or products or respond to
competitive


                                       18
<PAGE>
pressures.  Such  inability  could  harm  China  Granite's  business, results of
operations  and  financial  condition.

     For the next 12 months the Company expects the primary sources of liquidity
to be funds generated by operations and cash on hand.  To December 31, 2003, the
Company  has  not  been  profitable and has experienced negative cash flows from
operations.  Operations  have  been  primarily  financed through the issuance of
stock.

     Laizhou  China

     Results  of  Operation  for  the  period  from  January  9,  2003  (date of
inception)  to  December  31,  2003.

     Laizhou  China's  revenues  for  the  period  from January 9, 2003 (date of
inception) to December 31, 2003 were $3,050,183 (25,255,000 Yuan), $2,443,000 of
which came from granite mining and $607,000 of which came from the production of
granite  slabs  and  ornaments.

     Selling,  General  and  Administrative  Expenses.  Laizhou China's selling,
     ------------------------------------------------
general  and  administrative  expenses  in the year ended December 31, 2003 were
$161,780.  Selling  expenses  relate  to mining of granite and the production of
granite  slabs,  cladding  and  decorative  features.

     Net  Income.  As  a  result  of  the foregoing factors, Laizhou China's net
     -----------
income was $831,122 for the year ended December 31, 2003.

Critical  Accounting  Policies

     The  preparation  of  financial  statements  and  related  disclosures  in
conformity  with  accounting  principles generally accepted in the United States
requires  China Granite to make judgments, assumptions and estimates that affect
the  amounts  reported.  Note 1 of Notes to China Granite's Financial Statements
describes  the  significant  accounting  policies used in the preparation of the
China Granite financial statements. Note 2 of Notes to Laizhou China's Financial
Statements describes the significant accounting policies used in the preparation
of  the  Laizhou  China  financial  statements.

Item 7.   Financial Statements

     The  Company's Financial Statements can be found immediately following Item
14  below.

Item 8.   Changes  in  and  Disagreements  with  Accountants on  Accounting  and
          Financial Disclosure

     None.


                                       19
<PAGE>
Item 8A.  Controls and Procedures

     On  December 31, 2003, the Company's management concluded its evaluation of
the  effectiveness  of its disclosure controls and procedures.  As of that date,
the Company's President and Chief Financial Officer concluded that China Granite
maintains  effective  disclosure controls and procedures that ensure information
required to be disclosed in reports under the Securities Exchange Act of 1934 is
recorded,  processed,  summarized and reported within the time periods specified
in  the  SEC's  rules  and  forms.  Specifically,  the  disclosure  controls and
procedures  assure  that  information  is  accumulated  and  communicated  to
management, including the President and Chief Financial Officer, as appropriate,
to  allow  timely  decisions  regarding required disclosure.  There have been no
significant  changes in the Company's internal controls or in other factors that
could significantly affect these controls subsequent to the date of management's
evaluation.

                                    PART III

Item 9.   Directors,  Executive  Officers,  Promoters  and  Control  Persons;
Compliance with Section 16 (a) of the Exchange Act

     The  following  table  sets forth the names of all of our current directors
and  executive  officers as of April 6, 2004. These persons will serve until the
next annual meeting of the stockholders or until their successors are elected or
appointed  and  qualified,  or  their  prior  resignation  or  termination.

<TABLE>
<CAPTION>
        Name        Age                       Position
------------------  ---  --------------------------------------------------
<S>                 <C>  <C>
Dong Chen            43  President and Director
------------------  ---  --------------------------------------------------
Juan Chen            49  Chief Financial Officer and Secretary and Director
------------------  ---  --------------------------------------------------
Piguo Man            44  Manager and Director
------------------  ---  --------------------------------------------------
Maria C. Maz         35  Treasurer
------------------  ---  --------------------------------------------------
Michael Miller       49  Vice-President of Investor Relations
------------------  ---  --------------------------------------------------
Costas Takkas        47  Director
------------------  ---  --------------------------------------------------
Stephen Spoonamore   39  Director
------------------  ---  --------------------------------------------------
</TABLE>

     Dong Chen: Mr. Chen has served as our President since the reorganization on
February 5, 2004.  Prior to the reorganization, from June 2001 until joining us,
Mr.  Chen  served  as  the Chief Executive Officer of Yantai Maple Leaf Beverage
Company  Ltd.,  a  company  that  bottles  and  distributes bottled water in the
People's  Republic  of  China.  From  1997 until May 2001, Mr. Chen was the Vice
President  of  Marketing  for  China  New Hope Electronic Development Co., which
manufactured  and sold digital videodisc players.  Mr. Chen received a degree in
Business Administration from Jilin Normal University in the People's Republic of
China.  Mr.  Chen  is  the  brother  of  Juan Chen, our Chief Financial Officer,
Secretary  and  a  Director.

     Juan  Chen:  Ms.  Chen  has  been  our  Vice  General  Manager  since  the
reorganization  on  February  5,  2004.  Prior to the reorganization, from March
2003  until


                                       20
<PAGE>
joining  us,  Ms.  Chen served as the General Manager of Laizhou Jia Sheng Stone
Company.  From  January  2002  until February 2003, Ms. Chen was the Director of
Operations  of  Yanbian  Airblower Factory.  From June 2000 until December 2001,
she served as the Head of Mining at Jilin Huadian City San Dao Ling Gold Mine in
Jilin,  China.  From  1998  until  May 2000, Ms. Chen was the General Manager of
Jilin  Ocean  Hotel  in  Jilin, China.  Ms. Chen is the sister of Dong Chen, our
President  and  a  Director.

     Piguo  Man:  Mr.  Man  has  been  our  Manager  since the reorganization on
February  5,  2004.  Prior  to the reorganization, from March 2003 until joining
us,  Mr.  Man was Vice General Manager of Laizhou Jia Sheng Stone Company.  From
November  2002 until February 2003, Mr. Man served as the General Manager of the
Laizhou  Science  and  Technology  Bureau,  which consulted with agriculture and
stone processing companies.  From August 1998 until October 2002, Mr. Man served
as  the  General  Manager  of  the  Laizhou  Science  and Technology Development
Company.

     Camilla  Maz:  Ms. Maz was appointed as Treasurer in October 2003. Prior to
this  position, Ms. Maz worked for the past five years in the financial services
industry  as  an  assistant  and  advisor  for  multiple  small  and medium size
companies in the United States and Canada through her consulting company Prosper
Financial  Inc.  In  1993, Ms Maz played an important role in the financing, bid
preparation  to  the  Colombian  government  and  subsequent  implementation  of
cellular  communications,  in  the northern region of Columbia; Ms. Maz has also
been  founder, owner and operator of several companies in South America. Ms. Maz
holds  a  Bachelors  Degree  in  Business  Administration (BBA) with emphasis in
Finance  from  Universidad  de  Los  Andes,  Bogota,  Colombia.  Ms.  Maz is the
sister-in-law of Michael Miller, our Vice-President of Investor Relations.

     Michael  Miller:  Mr  Miller  has  served as our Vice President of Investor
Relations  since  October  2003.  Since  January  2000,  Mr. Miller has been the
President  and  50%  shareholder  of  Candide Investments Ltd. which has offered
consulting  services  to  a  number  of  public  companies,  assisting them with
corporate  restructuring, mergers and acquisitions, raising capital and investor
relations. From 1997 to 1999, Mr. Miller was an account executive with Canaccord
Capital  Corp.  Mr.  Miller is the brother-in-law of Camilla Maz, our Treasurer.

     Costas  Takkas: Mr. Takkas has served as a member of our Board of Directors
since  October 2002.  He has served as a director of the following Toronto Stock
Exchange  Venture Exchange (formerly the "VSE") companies: Serena Resources Ltd.
(now named Capstone Gold Ltd.) (1998-2001) and Emerald Mining Corp. (1998-1999).
He  was also a director of Ourominas Minerals Inc. (1996-1997, now named Thistle
Mining Ltd.) which is listed on the Toronto Stock Exchange.  Mr. Takkas has been
a  member  of  the  Institute  of Chartered Accountants in England & Wales since
1982.  He  graduated with a B.Sc. (Honors) and Associate to the Royal College of
Science  in  Physics  from  the  Imperial  College  of  Science  and Technology,
University  of  London  in  1978.


                                       21
<PAGE>
     Stephen  Spoonamore:  Mr. Spoonamore has served as a member of our Board of
Directors  since March 2003.  Since September 2003 he has served as the Director
of  Strategic  Relationships  for  SendWordNow  Inc.,  a  firm  that  provides
high-speed,  high-volume  disaster recovery communications.  In January 2001, he
founded  and currently acts as the CEO of DVDojo that provides digital videodisc
shooting,  editing  and  production  training and equipment in New York City. In
January  1999  he co-founded RSW Management, a construction management firm that
he  sold  later  in  1999. In 1997 he founded CPR-Group that provided studio and
show  design  services  until  its  sale  in  2002.

Family  Relationships

     Other  than as set forth above, there are no familial relationships between
members  of  our  Board  of  Directors  or  our  executive  officers.

Involvement in Certain Legal Proceedings

     Mr.  Robert  Miller,  former  Treasurer  and  Vice  President  of  Investor
Relations  of  the  Company,  the  husband of Camilla Maz, our Treasurer and the
brother  of  Michael  Miller,  our  Vice  President of Investor Relations, was a
director  of  Nanovation  Technologies  Inc.  ("Nanovation")  from 1996 to 1999.
Nanovation made switches and circuits for fiber optics networks and it filed for
Chapter  11  bankruptcy  protection  in  July  2001.

Committees of the Board of Directors

     Our  Audit  Committee  is chaired by Costas Takkas.  Stephen Spoonamore and
Dong Chen serve as the other members of the Audit Committee. The Audit Committee
oversees  our financial reporting processes and is responsible for reviewing our
financial condition.  The Audit Committee did not meet in 2003 since the Company
was  primarily  focused  on  searching  for  new  business  opportunities.

Audit  Committee  Financial  Expert

     Our  Board  of  Directors  has  determined  that we have at least one audit
committee financial expert serving on our audit committee, namely Costas Takkas.
Mr.  Takkas  would not be considered independent, as that term is defined by the
NASD because he was an officer of the Company within the past three years. Under
the  applicable  Securities and Exchange Commission standard, an audit committee
financial  expert  means  a  person  who  has  the  following  attributes:

  -  An  understanding of generally accepted accounting principles and financial
     statements;
  -  The  ability  to  assess  the  general  application  of  such principles in
     connection  with  the  accounting  for  estimates,  accruals  and reserves;


                                       22
<PAGE>
  -  Experience  preparing,  auditing,  analyzing  or  evaluating  financial
     statements  that  present  a  breadth and level of complexity of accounting
     issues  that  are  generally  comparable  to  the breadth and complexity of
     issues  that  can  reasonably  be expected to be raised by the registrant's
     financial  statements,  or  experience  actively  supervising  one  or more
     persons  engaged  in  such  activities;
  -  An  understanding  of  internal  controls  and  procedures  for  financial
     reporting;  and
  -  An  understanding  of  audit  committee  functions.

     Mr.  Takkas  received  his  designation  as a chartered accountant from the
Institute  of  Chartered  Accountants in England and Wales in 1982. Early in his
career he worked as a chartered accountant and auditor. He is now self-employed,
investing  his  time  and  money  in  speculative  projects.

Compensation Committee

     Our  Compensation  Committee  is  chaired  by Juan Chen.  Costas Takkas and
Piguo  Man  serve  as  the  other  members  of  the  Compensation Committee. The
Compensation  Committee  oversees the compensation of our executive officers and
directors.  Our  Compensation  Committee  did not meet in 2003 since the Company
was  primarily  focused  on searching for new business opportunities and did not
have  operations.

Compliance with Section 16(a) of the Securities Exchange Act of 1934

     Section  16(a) of the Exchange Act requires our officers and directors, and
persons  who  own  more  than  10%  of  the our common stock, to file reports of
ownership  and  changes  of  ownership of such securities with the United States
Securities  and  Exchange  Commission.  Based  on  a  review of the our records,
management believes that all filing requirements applicable to the our officers,
directors  and  holders  of more than 10% of our common stock were complied with
during the 2003 fiscal year, except that: with respect to Mr. Chen, a Form 3 was
filed  late;  with respect to Ms. Chen, a Form 3 was filed late; with respect to
Mr.  Miller, a Form 3 was filed late; with respect to Ms. Maz a Form 3 was filed
late,  with respect to Mr. Stephen Spoonamore a Form 3 was filed late, and; with
respect  to Mr. Costas Takkas a Form 4 was filed late concerning the purchase of
shares.

Code  of  Ethics

     We  do  not  yet  have  a Code of Ethics. The Board of Directors intends to
discuss  the  preparation  and adoption of a Code of Ethics at its next meeting.
Due  to  the  recent completion of the reorganization with Laizhou, the Board of
Directors  had  decided  to  postpone the adoption of a code of ethics until the
Company  was  able  to  focus  its  business  plan  and  develop  a  greater
infrastructure.  Once  we  have adopted a Code of Ethics, a copy may be obtained
by  sending  a  written  request  to  the  Secretary  of  Company.


                                       23
<PAGE>
Item 10.  Executive Compensation

EXECUTIVE COMPENSATION SUMMARY

     The following table provides compensation information for the period
indicated with respect to the persons who served as our President for the years
ended December 31, 2003, 2002 and 2001, and all other executive officers of
Arbor receiving total salary and bonus in excess of $100,000 during the years
ended December 31, 2003, 2002 and 2001 (collectively, the "Named Executive
Officers"):

<TABLE>
<CAPTION>
                                                  SUMMARY COMPENSATION TABLE

-----------------------------------------------------------------------------------------------------------------------------
                                                                                   Long Term Compensation
                                                                             -----------------------------------
                                                  Annual Compensation                 Awards            Payouts
                                           --------------------------------  -------------------------  --------
(a)                                  (b)      (c)         (d)        (e)         (f)          (g)         (h)         (i)
                                                                    Other                  Securities
                                                                   Annual    Restricted   Under-lying     LTIP     All Other
Name and Principal                                                 Compen-      Stock       Options/    Payouts     Compen-
Position                            Year   Salary ($)  Bonus ($)   sation    Awards ($)     SARs (#)      ($)     sation ($)
-----------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>    <C>         <C>        <C>        <C>          <C>           <C>       <C>
-----------------------------------------------------------------------------------------------------------------------------
Dong Chen (1)                        2003           0          0          0            0            0          0            0
-----------------------------------------------------------------------------------------------------------------------------
President
-----------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------
Juan Chen (2)                        2003           0          0          0            0            0          0            0
----------------------------------  -----  ----------  ---------  ---------  -----------  ------------  --------  -----------
CFO
-----------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------
Costas Takkas (3)                    2003           0          0  $  18,000            0            0          0            0
-----------------------------------------------------------------------------------------------------------------------------
CEO & President                      2002           0          0          0            0            0          0            0
-----------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------
Stephen Spoonamore (4)               2003           0          0  $  27,000            0            0          0            0
----------------------------------  -----  ----------  ---------  ---------  -----------  ------------  --------  -----------
CFO & Secretary
----------------------------------

-----------------------------------------------------------------------------------------------------------------------------
Robert Miller (5)                    2003           0          0          0            0            0          0            0
-----------------------------------------------------------------------------------------------------------------------------
Treasurer & VP Investor Relations
-----------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------
Camilla Maz (6)                      2003           0          0  $  36,000            0            0          0            0
----------------------------------  -----  ----------  ---------  ---------  -----------  ------------  --------  -----------
Treasurer
-----------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------
Michael Miller (7)                   2003           0          0          0            0            0          0            0
-----------------------------------------------------------------------------------------------------------------------------
VP Investor Relations
-----------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------
Joginder Brar (8)                    2003           0          0          0            0            0          0            0
-----------------------------------------------------------------------------------------------------------------------------
CEO & President                      2002           0          0          0            0            0          0            0
-----------------------------------------------------------------------------------------------------------------------------
                                     2001           0                                       600,000(9)            $    30,000
-----------------------------------------------------------------------------------------------------------------------------
<FN>
(1)  Effective February 4, 2004 pursuant to the reorganization with Laizhou, Mr.
Chen's  salary  is  $2,000  per  month.


                                       24
<PAGE>
(2)  Effective February 4, 2004 pursuant to the reorganization with Laizhou, Ms.
Chen's  salary  is  $500  per  month.
(3)  Mr.  Takkas  was  President,  Chief  Executive  Officer and director of our
company  from October 2002 until February 5, 2004 when he resigned as an officer
but remained as a director. Prior to the reorganization with Laizhou, Mr. Takkas
was  paid  $3,000  per  month  pursuant to a consulting agreement under which he
provided  management  services  to  the  Company.
(4)  Mr. Spoonamore was our Chief Financial Officer, Secretary and director from
March 2003 until February 5, 2004 when he resigned as an officer but remained as
a  director.  Prior  to the reorganization with Laizhou, Mr. Spoonamore was paid
$3,000  per  month  pursuant  to  a consulting agreement under which he provided
management  services  to  the  Company.
(5) Mr. Robert Miller was our Treasurer and Vice President of Investor Relations
from  March  2003  until  October  2003.
(6)  Ms.  Maz  was  appointed  Treasurer  in  October  2003.
(7)  Mr.  Michael  Miller  was appointed Vice President of Investor Relations in
October  2003.
(8)  Mr. Brar resigned as President and a director of our company in March 2003.
(9)  The  total  value  of  the  services  rendered by Mr. Brar was $60,000. The
services  rendered  included  administrative  duties,  board  duties,  contract
negotiations,  financing  services,  production  and  distribution  research,
shareholder  communication  and  organizational  duties.
</TABLE>

Stock  Options/SAR  Grants

     No  grants  of  stock options or stock appreciation rights were made during
the  fiscal year ended December 31, 2003, to our named executive officers or any
other  parties.

     On February 4, 2004, pursuant to the reorganization with Laizhou, we issued
options  to  purchase  840,000  shares of our common stock to certain directors,
officers  and  employees  of  our  newly  reorganized  company.

Employment Contracts and Termination of Employment or Change of Control

     We  have  no  plans  or arrangements in respect of remuneration received or
that  may  be  received by our executive officers to compensate such officers in
the  event of termination of employment (as a result of resignation, retirement,
change  of  control)  or  a  change  of  responsibilities  following a change of
control,  where  the  value  of  such compensation exceeds $60,000 per executive
officer.

Director  Compensation

     Both  of our directors, Costas Takkas and Stephen Spoonamore had consulting
agreements  with  the  Company  during  the  year  ended December 31, 2003.  Mr.
Takkas's  consulting  agreement  provided for payment of $3,000.00 per month for
providing


                                       25
<PAGE>
management  services  to the Company.  This agreement was in effect from July 1,
2003  until  December  31, 2003.  Mr. Spoonamore's consulting agreement provided
for  payment  of  $3,000.00  per  month for providing management services to the
Company.  This  agreement  was  in  effect from April 1, 2003 until December 31,
2003.

     Other  than  set  forth  above, no cash compensation was paid to any of our
directors  for  services as a director during the fiscal year ended December 31,
2003.  We  have no standard arrangement pursuant to which our Board of Directors
are compensated for their services in their capacity as directors except for the
granting  from  time  to time of incentive stock options. The Board of Directors
may  award special remuneration to any director undertaking any special services
on  behalf of our company other than services ordinarily required of a director.
All  authorized out-of-pocket expenses incurred by a director on our behalf will
be  subject to reimbursement upon our receipt of required supporting document of
such  expenses.  No  director  received  and/or accrued any compensation for his
services  as  a  director,  including  committee  participation  and/or  special
assignments.

Item 11.  Security  Ownership  of  Certain  Beneficial Owners and Management and
          Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management.

     The following table sets forth certain information known to us with respect
to  the beneficial ownership of our common stock as of April 6, 2004 and (i) all
persons  who  are known to us to be beneficial owners of five percent or more of
the  common  shares,  (ii)  each  of  our  Directors,  (iii) the Named Executive
Officers named in the "Executive Compensation" section of this Annual Report and
(iv)  all  current  Directors  and  executive  officers  as  a  group.

<TABLE>
<CAPTION>
           NAME AND ADDRESS OF BENEFICIAL         SHARES BENEFICIALLY       % OF CLASS OWNED
                      OWNER (1)                          OWNED
<S>                                               <C>                  <C>  <C>
Dong Chen                                                     698,396                   4.99%

Juan Chen                                                     667,268                   4.67%

Piguo Man                                                     403,074                   2.88%

Costas Takkas                                                 525,000  (2)              3.75%

Stephen Spoonamore                                            113,000  (3)                **

Camilla Maz                                                    43,450                     **

Michael Miller                                                105,000  (4)                **

Officers and Directors as a group (seven persons)           2,555,188                  18.25%
<FN>
(1)  Unless  otherwise  stated,  the  address of all persons in the table is c/o
     China  Granite  Corporation,  2642  Collins Avenue, Suite 305, Miami Beach,
     Florida  33140.
(2)  Shares  beneficially  owned by Mr. Takkas include options to purchase up to
     75,000 shares of our common stock that may be exercised in whole or in part
     within  60  days  of  April  6,  2004.


                                       26
<PAGE>
(3)  Shares  beneficially owned by Mr. Spoonamore include options to purchase up
     to  75,000  shares of our common stock that may be exercised in whole or in
     part  within  60  days  of  April  6,  2004.
(4)  Shares  beneficially  owned by Mr. Miller include options to purchase up to
     75,000 shares of our common stock that may be exercised in whole or in part
     within  60  days of April 6, 2004. Mr. Miller is the beneficial owner of an
     additional 30,000 shares of our common stock through his control of Candide
     Investments  Ltd.  which  owns  30,000  shares  of  our  common  stock.
**   Indicates  less  than  1%
</TABLE>

     Beneficial  ownership  is  determined  in  accordance with the rules of the
Securities  and Exchange Commission and includes voting or investment power with
respect to the securities. Shares of Common stock subject to options or warrants
that  are  currently  exercisable or exercisable within 60 days of April 6, 2004
are deemed to be outstanding and to be beneficially owned by the person or group
holding  such  options  or  warrants for the purpose of computing the percentage
ownership  of  such  person  or group but are not treated as outstanding for the
purpose  of  computing  the  percentage  ownership of any other person or group.
Unless  otherwise  indicated,  the address for each of the individuals listed in
the  table  is care of Arbor, Inc., 2642 Collins Avenue, Suite 305, Miami Beach,
Florida 33140.  Unless otherwise indicated by footnote, the persons named in the
table  have  sole voting and sole investment power with respect to all shares of
common  stock  shown  as  beneficially  owned  by  them,  subject  to applicable
community  property  laws.  Percentage  of  beneficial  ownership  is  based  on
13,998,000  shares  of  our  common  stock  outstanding  as  of  April  6, 2004.

Item 12.  Certain Relationships and Related Transactions

     In  2002,  we  retained a consultant, Auron 2000, to assist our management.
The  services  to  be  rendered  include  administrative  duties,  contract
negotiations,  financing  services  and  shareholder  communication.  Auron 2000
received  compensation of $3,000 per month plus expenses.  Auron 2000 was wholly
owned  by Robert H. Miller, who was our Treasurer and Vice-President of Investor
Relations,  up  until January 2003, when he sold his interest in Auron 2000.  We
entered  into  an  agreement with Prosper Financial Inc. to provide the services
Auron  2000  formerly provided to us under the same terms as our engagement with
Auron  2000.  Maria C. Maz, our Treasurer and the wife of Robert H. Miller, owns
Prosper  Financial  Inc.

     Mr.  Costas  Takkas,  one or our directors, has a pre-existing relationship
with  CPL Construcoes e Comercio Inc. Mr. Takkas is owed $2,000,000 from CPL for
loans  made by Mr. Takkas to CPL for registration and taxes on the land owned by
CPL in Tocantins, Brazil, working capital, legal opinions from various attorneys
and  other  costs  relating  to financing sought for the project. Mr. Takkas has
agreed to assign $1,000,000 of his interest in this debt to Arbor would occur if
Arbor  funded $3,000,000 to the Brazil Project.  This did not occur and there is
no  obligation.

     Both  of our directors, Costas Takkas and Stephen Spoonamore had consulting
agreements  with  the  Company  during  the  year  ended December 31, 2003.  Mr.
Takkas's  consulting  agreement  provided for payment of $3,000.00 per month for
providing management services to the Company.  This agreement was in effect from
July  1,  2003  until  December 31, 2003.  Mr. Spoonamore's consulting agreement
provided  for  payment


                                       27
<PAGE>
of  $3,000.00  per month for providing management services to the Company.  This
agreement was in effect from April 1, 2003 until December 31, 2003.

     Conflicts Related to Other Business Activities.

     The  persons  serving  as  our  officers  and  directors  have  existing
responsibilities  and,  in  the future, may have additional responsibilities, to
provide  management  and  services  to  other  entities  in addition to us. As a
result,  conflicts  of  interest  between  us  and the other activities of those
persons  may  occur  from  time  to  time.

     We will attempt to resolve any such conflicts of interest in our favor. Our
officers  and  directors  are  accountable  to  us  and  our  shareholders  as
fiduciaries, which requires that such officers and directors exercise good faith
and  integrity  in  handling our affairs. A shareholder may be able to institute
legal  action  on  our  behalf  or  on  behalf of that shareholder and all other
similarly  situated shareholders to recover damages or for other relief in cases
of  the  resolution  of  conflicts  in  any  manner  prejudicial  to  us.

Item 13.  Exhibits and Reports on Form 8-K

     (a)  Exhibits

<TABLE>
<CAPTION>
<S>     <C>
---------------------------------------------------------------------------------------
3.1     Amended and Restated Articles of Incorporation (incorporated by reference to
        exhibit 3.1 to the Company's current report on Form 8-K filed on February 20,
        2004).
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
3.2     Amended and Restated Bylaws (incorporated by reference to exhibit 3.1 to the
        Company's current report on Form 8-K filed on February 20, 2004).
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
4.2     Form of Subscription Agreement
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
10.3    Consulting Agreement
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
10.4    Stockholder Transfer Agreement
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
31.1    Certification of Chairman and Chief Executive Officer Pursuant to Section 302
        of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Sec. 1350) (transmitted
        herewith).
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
31.2    Certification of Vice Chairman and Chief Financial Officer Pursuant to Section
        302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Sec. 1350) (transmitted
        herewith).
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
32.1    Written Statement of Chairman and Chief Executive Officer Pursuant to
        Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)
        (transmitted herewith).
---------------------------------------------------------------------------------------


                                       28
<PAGE>
---------------------------------------------------------------------------------------
32.2    Written Statement of Vice Chairman and Chief Financial Officer Pursuant to
        Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)
        (transmitted herewith).
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
</TABLE>

     (b)  Reports  of  Form  8-K

     On  February 20, 2004 we filed a current report on Form 8-K to announce the
completion  of  the  reorganization  with  Laizhou.

Item 14.  Principal Accountant Fees and Services

     The  following table shows the aggregate fees billed to the Corporation for
professional  services  by  Braverman  and Company, our independent auditor, for
fiscal  years  2003  and  2002:

<TABLE>
<CAPTION>
                                   FISCAL 2003                 FISCAL 2002
                                   -----------                 -----------
<S>                                     <C>                         <C>

Audit Fees                              $      8,247                $      4,257

Audit-Related Fees                      $          0                $          0

Tax Fees                                $        750                $          0

All Other Fees                          $          0                $          0

Total                                   $      8,997                $      5,757
</TABLE>

     Audit  Fees.  This  category  includes  the  aggregate  fees  billed  for
professional  services  rendered  for  the  audits of the Company's consolidated
financial  statements  for  fiscal  years  2003 and 2002, for the reviews of the
financial  statements included in the Company's quarterly reports on Form 10-QSB
during  fiscal 2003 and 2002, and for services that are normally provided by the
independent  auditors  in  connection  with  statutory and regulatory filings or
engagements  for  the  relevant  fiscal  years.

     Audit-Related  Fees.  This  category  includes the aggregate fees billed in
each  of  the  last  two  fiscal years for assurance and related services by the
independent  auditors  that  are  reasonably  related  to the performance of the
audits  or  reviews of the financial statements and are not reported above under
"Audit  Fees,"  and generally consist of fees for other attest engagements under
professional  auditing  standards,  accounting  and  reporting  consultations,
internal  control-related  matters,  and  audits  of  employee  benefit  plans.

     Tax  Fees.  This category includes the aggregate fees billed in each of the
last  two  fiscal  years  for  professional services rendered by the independent
auditors  for tax compliance, tax  planning and tax advice. Of this amount, $750
                                                                             ---
was  related


                                       29
<PAGE>
to tax compliance services for review of federal and state tax returns for 2003.

     All Other Fees. This category includes the aggregate fees billed in each of
the  last two fiscal years for products and services provided by the independent
auditors  that  are not reported above under "Audit Fees," "Audit-Related Fees,"
or  "Tax  Fees."

     The  Audit  Committee considered the compatibility of the non-audit-related
services  performed  by  and  fees paid to Braverman and Company in 2003 and the
proposed  non-audit-related  services  and proposed fees for 2004 and determined
that  such  services  and fees are compatible with the independence of Braverman
and  Company.  During  2003,  Braverman  and  Company did not utilize any leased
personnel  in  connection  with  the  audit.

SIGNATURES

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

China  Granite  Corporation



/s/  Dong Chen, President and CEO/Director
------------------------------------------
April 13, 2004

     In  accordance with the Securities Exchange Act of 1934, this Annual Report
on  Form  10-KSB has been signed below by the following persons on behalf of the
registrant  and  in  the  capacities  and  on  the  dates  indicated.

SIGNATURE                   TITLE                                 DATE
---------                   -----                                 ----

/s/  Dong Chen              President and Director                April 13, 2004
------------------------
Dong Chen

/s/  Juan Chen              Chief Financial Officer and Director  April 13, 2004
------------------------
Juan Chen

/s/  Costas Takkas          Director                              April 13, 2004
------------------------
Costas Takkas

/s/  Stephen Spoonamore     Director                              April 13, 2004
------------------------
Stephen Spoonamore


                                       30
<PAGE>


/s/  Piguo Man              Director                              April 13, 2004
------------------------
Piguo Man


<PAGE>
                          INDEPENDENT AUDITOR'S REPORT

TO THE BOARD OF DIRECTORS AND AUDIT COMMITTEE
CHINA GRANITE CORPORATION
CALGARY, ALBERTA, CANADA

We have audited the accompanying balance sheet of China Granite Corporation,
formerly Arbor, Inc. (a Nevada corporation in the development stage) as of
December 31, 2003, and the related statements of operations, stockholders'
equity, and cash flows for each of the two years in the period then ended and
for the period from February 25, 1999 (inception) to December 31, 2003.  These
financial statements are the responsibility of the Company's management.  Our
responsibility is to express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America.  Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  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 that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of China Granite Corporation at
December 31, 2003, and the results of its operations and its cash flows for each
of the two years in the period then ended and for the period from February 25,
1999 (inception) to December 31, 2003, in conformity with accounting principles
generally accepted in the United States of America.


Braverman & Company, P.C.
Prescott, Arizona
March 25, 2004


                                      F-1
<PAGE>
<TABLE>
<CAPTION>
                            CHINA GRANITE CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                                  BALANCE SHEET
                                DECEMBER 31, 2003


                                     ASSETS
                                     ------
<S>                                                                  <C>

CURRENT ASSETS
   Cash                                                              $  397,810
   Note receivable from
    corporate joint venture                                             325,000
  Accrued interest                                                        2,493
  Deferred charge                                                        11,513
                                                                     -----------

TOTAL CURRENT ASSETS                                                    736,816
                                                                     -----------

                                                                     $  736,816
                                                                     ===========


                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

CURRENT LIABILITIES
  Accounts payable                                                   $    4,506
  Accounts payable-related party                                          4,402
                                                                     -----------

TOTAL CURRENT LIABILITIES                                                 8,908
                                                                     -----------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Common stock, par value $.001, 25,000,000
  shares authorized, 8,998,000,000 issued and
  outstanding                                                             8,998
Paid-in capital                                                       1,171,802
Contributed capital                                                     102,319
(Deficit) accumulated during the development stage                     (555,210)
                                                                     -----------

Total Stockholders' Equity                                              727,908
                                                                     -----------

                                                                     $  736,816
                                                                     ===========
</TABLE>


                 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS


                                      F-2
<PAGE>
<TABLE>
<CAPTION>
                              CHINA GRANITE CORPORATION
                            (A DEVELOPMENT STAGE COMPANY)
                               STATEMENTS OF OPERATIONS


                                                                      CUMMULATIVE
                                                                   FROM FEBRUARY 25,
                                                                         1999
                                                                      (INCEPTION)
                                       YEAR ENDED DECEMBER 31,            TO
                                    ----------------------------     DECEMBER 31,
                                        2003           2002              2003
                                    ------------  --------------  -------------------
<S>                                 <C>           <C>             <C>

REVENUE- INTEREST                   $     2,493   $           -   $            2,493
                                    ------------  --------------  -------------------

EXPENSES
  General and adminstrative             238,182          83,120              556,675
  Interest                                  889             139                1,028
                                    ------------  --------------  -------------------

    TOTAL EXPENSES                      239,071          83,259              557,703
                                    ------------  --------------  -------------------

NET (LOSS)                          $  (236,578)  $     (83,259)  $         (555,210)
                                    ============  ==============  ===================


NET (LOSS) PER COMMON SHARE-BASIC   $     (0.03)  $       (0.01)
                                    ============  ==============

WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING          7,943,833       7,848,000
                                    ============  ==============
</TABLE>


                 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS


                                      F-3
<PAGE>
<TABLE>
<CAPTION>
                                             CHINA GRANITE CORPORATION
                                           (A DEVELOPMENT STAGE COMPANY)
                                     STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY


                                                                                            (DEFICIT)
                                                                                           ACCUMULATED
                                              COMMON STOCK                                 DURING THE
                                           ------------------    PAID-IN    CONTRIBUTED    DEVELOPMENT
                                            SHARES    AMOUNT     CAPITAL      CAPITAL         STAGE        TOTAL
                                           ---------  -------  -----------  ------------  -------------  ----------
<S>                                        <C>        <C>      <C>          <C>           <C>            <C>
BALANCES, AT INCEPTION                             -  $     -  $        -   $          -  $          -   $       -
  Issuance of stock
    For services @ $.05 per share          1,200,000    1,200      58,800                                   60,000
    For cash @ $.05 per share              1,416,000    1,416      69,384                                   70,800
  Net (loss) for the year                                                                     (109,504)   (109,504)
                                           ---------  -------  -----------  ------------  -------------  ----------

BALANCES, DECEMBER 31, 1999                2,616,000    2,616     128,184              -      (109,504)     21,296
  Contributed capital                                                             83,218                    83,218
  Net (loss) for the year                                                                     (101,549)   (101,549)
                                           ---------  -------  -----------  ------------  -------------  ----------

BALANCES, DECEMBER 31, 2000                2,616,000    2,616     128,184         83,218      (211,053)      2,965
  Contributed capital                                                             19,101                    19,101
  Stock split, 3 for 1                     5,232,000    5,232      (5,232)                                       -
  Net (loss) for the year                                                                      (24,321)    (24,321)
                                           ---------  -------  -----------  ------------  -------------  ----------

BALANCES, DECEMBER 31, 2001                7,848,000    7,848     122,952        102,319      (235,374)     (2,255)
  Net (loss) for the year                                                                      (83,259)    (83,259)
                                           ---------  -------  -----------  ------------  -------------  ----------

BALANCES, DECEMBER 31, 2002                7,848,000  $ 7,848  $  122,952   $    102,319  $   (318,633)  $ (85,514)
Proceeds from issuance of stock:
  PPM, December 11, 2003 @$.83 per share     600,000      600     499,400                                  500,000
  PPM, December 31, 2003 @$1.00 per share    550,000      550     549,450                                  550,000
  Net (loss) for the year                                                                 $   (236,578)   (236,578)
                                           ---------  -------  -----------  ------------  -------------  ----------

BALANCES, DECEMBER 31, 2003                8,998,000  $ 8,998  $1,171,802   $    102,319  $   (555,210)  $ 727,908
                                           =========  =======  ===========  ============  =============  ==========
</TABLE>


                 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS


                                      F-4
<PAGE>
<TABLE>
<CAPTION>
                                        CHINA GRANITE CORPORATION
                                      (A DEVELOPMENT STAGE COMPANY)
                                         STATEMENTS OF CASH FLOWS


                                                                                          CUMMULATIVE
                                                                                       FROM FEBRUARY 25,
                                                                                             1999
                                                                                          (INCEPTION)
                                                           YEAR ENDED DECEMBER 31,             TO
                                                        ----------------------------      DECEMBER 31,
                                                            2003           2002               2003
                                                        ------------  --------------  -------------------
<S>                                                     <C>           <C>             <C>
OPERATING ACTIVITIES
         Net (loss) from operations                     $  (236,578)  $     (83,259)  $         (555,210)
         Contributed services                                                                    102,319
         Issuance of common stock for services                                                    60,000
         Increase (decrease) in cash
               resulting from changes in:
                 Accrued interest                            (2,493)                              (2,493)
                 Deferred charges                           (11,513)                             (11,513)
                 Accounts payable                           (20,197)         23,448                4,505
                 Accounts payable-related party             (55,409)         59,811                4,402
                 Officer advance                             (1,000)
                                                        ------------  --------------  -------------------

              NET CASH USED BY  OPERATING ACTIVITIES       (327,190)              -             (397,990)
                                                        ------------  --------------  -------------------

INVESTING ACTIVITIES
          Increase in note receivable                      (325,000)              -             (325,000)
                                                        ------------  --------------  -------------------

             NET CASH USED BY FINANCING ACTIVITIES         (325,000)              -             (325,000)
                                                        ------------  --------------  -------------------

FINANCING ACTIVITIES
         Proceeds from sale of common stock               1,050,000               -            1,120,800
                                                        ------------  --------------  -------------------

             NET CASH PROVIDED BY FINANCING ACTIVITIES    1,050,000               -            1,120,800
                                                        ------------  --------------  -------------------

             NET INCREASE IN CASH                           397,810               -              397,810

             CASH, BEGINNING OF PERIOD                            -               -                    -
                                                        ------------  --------------  -------------------

             CASH, END OF PERIOD                        $   397,810   $           -   $          397,810
                                                        ============  ==============  ===================

OTHER SUPPLEMENTAL INFORMATION

             INTEREST PAID                              $       889   $         139   $            1,028
                                                        ============  ==============  ===================
</TABLE>


                 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS


                                      F-5
<PAGE>
                            CHINA GRANITE CORPORATION
                          (a Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

NOTE 1 -  THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES

BACKGROUND

China  Granite  Corporation,  formerly  Arbor,  Inc. (the Company) was organized
February  25,  1999,  under  the  laws  of  the State of Nevada, as originally E
Investments,  Inc.  As  of  December  31,  2003  the  Company  had no revenue or
operations  and, in accordance with SFAS No.7, is considered a development stage
company.  The  fiscal  year  end  of  the  Company  is  December  31.

ESTIMATES

The  preparation  of  Financial  Statements,  in  conformity  with  accounting
principles  generally  accepted  in  the  United  States  of  America,  requires
management  to  make estimates and assumptions which affect the reported amounts
of  assets  and liabilities and disclosure of contingent assets and liabilities,
at the date of the Financial Statements, and the reported amounts of revenue and
expenses  during  the  reporting  period. Actual results could differ from those
estimates.

INCOME TAXES

Income  taxes  are  provided  for  using  the  liability method of accounting in
accordance  with Statement of Financial Accounting Standards No. 109 (SFAS #109)
"Accounting for Income Taxes". A deferred tax asset or liability is recorded for
all  temporary  difference  between  financial  and  tax reporting. Deferred tax
expense  (benefit)  results  from the net change during the year of deferred tax
assets  and  liabilities.

LOSS PER SHARE

Net  loss  per  share  is  provided  in  accordance  with Statement of Financial
Accounting  Standards No. 128 (SFAS No.128) "Earnings Per Share". Basic loss per
share  is  computed by dividing net loss available to common stockholders by the
weighted  average  number  of  common  shares  outstanding  during  the  period.

CONCENTRATIONS OF CREDIT RISK

The Company may have bank deposits on hand which are in excess of federally
insured limits.

CASH EQUIVALENTS

The Company considers all highly liquid investments with original maturities of
three months or less to be cash equivalents.


                                      F-6
<PAGE>
                            CHINA GRANITE CORPORATION
                          (a Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

NOTE 2 -  RELATED PARTY TRANSACTIONS

MANAGEMENT SERVICES

Prosper Financial, Inc., a company owned by the Treasurer of the Company,
provided management consulting services and office overhead for the Company
during the year 2003, for $3000 per month. In the prior year similar services
were provided by Auron 2000, a company owned by the former Treasurer, at a cost
to the Company of $59,811.

ACCOUNTS PAYABLE-RELATED PARTY

During the year the Company accrued $18,000 for compensation for consulting
services provided by the acting president/director of the Company in connection
with an agreement to compensate him at the rate of $3,000 per month for twelve
months effective July 1, 2003, and also approved payment for approximately $
36,400 for expenses he incurred on behalf on its behalf during 2002 and 2003. Of
this total, $50,000 was converted to common stock at $1 per share as of December
31, 2003, and the balance of $4,402 remained unpaid at that date.

CONSULTING AGREEMENT

The Company entered into a one year consulting agreement with the
Secretary/director of the Company commencing April 1, 2003, for compensation of
$3,000 per month. The entire compensation for 2003 of $27,000, and expenses
incurred of $3,000 were converted to 30,000 shares of common stock at $1 per
share as of December 31, 2003.

CORPORATE JOINT VENTURE

The  acting  president/director  of  the Company has a pre-existing relationship
with  CPL  Construcoes  e  Comercio  Inc.  a joint venturer in a Brazilian based
company,  CPLArbor  do brasil Constutora Ltda (CPLARBOR) in which the Company is
to  receive  a  50  percent equity interest as of December 31, 2003, at no cost.
The  Company  loaned  CPLARBOR  in October 2003, $325,000 on an unsecured basis.
The  acting president/director is owed $2,000,000 from CPL for loans made by him
to CPL for registration and taxes on the land owned by CPL in Tocantins, Brazil,
working  capital, legal opinions from various attorneys and other costs relating
to  financing  sought  for  the  project.  See  Note 5 of the Notes to financial
statements  for  a  further  discussion  of  this  transaction.


                                      F-7
<PAGE>
                            CHINA GRANITE CORPORATION
                          (a Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

NOTE 3 -  INCOME TAXES

There  was  no  current federal tax provision or benefit recorded for any period
since  inception, nor were there any recorded deferred income tax assets as such
amounts  were  completely  offset  by  valuation  allowances.  Substantially all
expenses  incurred to date are considered start-up costs for income tax purposes
except  for expenses provided as contributed capital, and will become deductible
once  the  Company's  business  commences. Such costs which total $456,158 as of
December  31,  2003  are  subject  to  amortization over a 5 year period, unless
permanently  capitalized.  The  Company  has  net  operating loss carryovers for
income  tax  purposes  of  $1,028  as  of  December  31, 2003, expiring by 2023.

The  following is an analysis of deferred tax assets for as of December 31, 2002
and  2003.

<TABLE>
<CAPTION>
                                           Deferred     Valuation
                                          Tax Assets    Allowance   Balance
                                          -----------  -----------  --------
<S>                                       <C>          <C>          <C>
Deferred tax assets at December 31, 2002  $    73,661  $  (73,661)  $    -0-
Additions for 2003                             80,437     (80,437)       -0-
                                          -----------  -----------  --------

Deferred tax assets at December 31, 2003  $   155,498  $ (155,498)  $    -0-
                                          ===========  ===========  ========
</TABLE>

The  following  is reconciliation from the expected statutory federal income tax
rate  to  the  Company's actual income tax rate for the years ended December 31:

<TABLE>
<CAPTION>
                                                               2003   2002
                                                              ------  -----
<S>                                                           <C>     <C>
Expected income tax (benefit) at federal statutory tax rate      34%    34%
Valuation allowance                                           ( 34)%  (34)%
                                                              ------  -----

  Actual income tax (benefit)                                     0%     0%
                                                              ======  =====
</TABLE>

In accordance with FASB #109, the valuation allowance was based on the results
of operations as of December 31, 2003.


NOTE 4 -  LETTERS OF INTENT DURING 2003

THE ABUCCO PROJECT

The Company entered into a letter of intent to acquire Abucco Technology, Inc.,
a British Columbia based technology company (Abucco) in March 2003 for 4,786,000
restricted common shares of the Company, in exchange for all of the common stock
outstanding of Abucco.  The letter of intent expired in September 2003 without
renewal or extension.


                                      F-8
<PAGE>
                            CHINA GRANITE CORPORATION
                          (a Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

NOTE 4 -  LETTERS OF INTENT DURING 2003 (CONTINUED)

THE CHINA PROJECT

In November 2003 the Company entered into a letter of intent to acquire an
interest in a China based company, Laizhou Jia Sheng Stone Company Limited, in
connection with a proposed stock exchange transaction which would transfer
control to the Chinese company, if completed. During 2003, the Company paid and
expensed approximately $80,000 in legal, audit and accounting fees in
furtherance of this project. This transaction was concluded successfully in
February 2004, as more fully discussed in the Subsequent Events footnote below.

NOTE 5 - NOTE RECEIVABLE FROM CORPORATE JOINT VENTURE

In October 2003, after an initial letter of intent, the Company provided an
unsecured loan of $325,000 to CPLArbor do brasil Constutora Ltda (CPLARBOR), a
corporation formed on February 19, 2003, in the State of Sao Paulo, Brazil, to
acquire undeveloped real estate and construct residential housing units.
CPLARBOR is in the development stage, in accordance with FASB #7.  The loan
bears interest at LIBOR rate plus 4 percent per annum and is due with accrued
interest in October 2004.

As of December 31, 2003, the audited financial statements of CPLARBOR revealed
the following financial position:

<TABLE>
<CAPTION>
Assets                                Liabilities
<S>                     <C>       <C>
  Cash                  $112,093        Note payable to China Granite Corp.
  Advances                 8,054          with accrued interest   $327,693
  Undeveloped
    Real estate          178,942  Shareholders' Equity             (26,431)
                                                                   --------
  Fixed assets & other     2,173
                        --------

    TOTAL ASSETS        $301,262  TOTAL LIABILITIES & EQUITY       $301,262
                        ========                                   ========
</TABLE>

Shareholders' equity consisted only of the net loss for 2003 since no capital
was paid in by either joint venturer.  The net loss of $26,431 was net of
interest income of $3,082 and included interest expense payable to the Company
of $2,693.

The 50% corporate joint venture interest is considered by the Company only as
contingent collateral for the loan as of December 31, 2003, since the shares
evidencing the equity interest were not transferred into the name of the Company
by that date, and it has decided in 2004 to sell its interest therein.
Accordingly, no portion of the equity in the net loss of the corporate joint
venture was recorded by the Company as of December 31, 2003.


                                      F-9
<PAGE>
                            CHINA GRANITE CORPORATION
                          (a Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

NOTE 5 -  NOTE RECEIVABLE FROM CORPORATE JOINT VENTURE (CONTINUED)

The loan to CPL was not considered impaired as a result of the limited
activities of the corporate joint venture as of  December 31, 2003, but the loan
could become impaired subsequent to 2004 if, as a result of any disposition of
the Company's potential interest in the joint venture, the joint venture is
unable to obtain additional, necessary financing to proceed with its real estate
development plans, or is unable to realize the value of its assets and settle
its liabilities in the normal course of its business activities, should it be

unable to either attract a new joint venturer, or be unable to complete its
pending project for any other reason.

NOTE 6 - THE EFFECT OF RECENTLY ISSUED ACCOUNTING  STANDARDS

Below is a listing of the most recent accounting standards and their effect on
the Company.

SFAS 148  Accounting for Stock-Based Compensation-Transition and Disclosure

Amends FASB 123 to provide alternative methods of transition for an entity that
voluntarily changes to the fair value based method of accounting for stock-based
employee compensation.

SFAS 149  Amendment of Statement 133 on Derivative Instruments and Hedging
Activities

This Statement amends and clarifies financial accounting and reporting for
derivative instruments, including certain derivative instruments embedded in
other contracts (collectively referred to as derivatives)  and for hedging
activities under FASB Statement NO. 133, Accounting for Derivative Instruments
and Hedging  Activities.

SFAS 150  Financial Instruments with Characteristics of both Liabilities and
Equity

This Statement requires that such instruments be classified as liabilities in
the balance sheet.  SFAS 150 is effective for financial instruments entered into
or modified after May 31, 2003.

INTERPRETATION NO. 46 (FIN 46)

Effective  January  31,  2003, The Financial Accounting Standards Board requires
certain variable interest entities to be consolidated by the primary beneficiary
of  the  entity  if  the  equity  investors  in  the  entity  do  not  have  the
characteristics  of  a  continuing  financial interest or do not have sufficient
equity  at  risk  for  the  entity  to finance its activities without additional
subordinated  financial support from other parties. The Company has not invested
in  any  such  entities, and does not expect to do so in the foreseeable future.

The  adoption  of these new Statements is not expected to have a material effect
on the Company's financial position, results or operations, or cash flows.


                                      F-10
<PAGE>
                            CHINA GRANITE CORPORATION
                          (a Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

NOTE 7 -  SUBSEQUENT EVENTS

THE CHINA PROJECT

On February 5, 2004 the Company entered into a stock exchange transaction with
China Laizhou Bay Mining International Corporation, a corporation organized
under the laws of the British Virgin, Islands ("Laizhou") which owns all of the
outstanding common stock of Laizhou Jia Sheng Stone Company Limited, resulting
in a change of control of the Company. The Company acquired all of the issued
and outstanding common stock of Laizhou for 8,500,000 shares of restricted
common stock of which 5 million shares were represented by newly issued shares
of the Company, and the balance represented by shares held by the principal
shareholder of the Company. Laizhou is considered the accounting acquirer and
all future financial statements will be that of the acquirer and its
subsidiaries which include the company, whose assets will be consolidated at
fair value.

The majority of the Company's funds available as of December 31, 2003, and
amounts raised subsequently of approximately $600,000 were used to finance
additional costs and expenses of Laizhou Jia Sheng Stone Company Limited. In
addition, $100,000 was transferred in trust to ultimately assist in CPLARBOR's
development.

STOCK  OPTIONS/SAR  GRANTS

No  grants  of  stock  options or stock appreciation rights were made during the
fiscal  year  ended  December  31,  2003.  On  February 4, 2004, pursuant to the
reorganization  with  Laizhou, options were issued to purchase 840,000 shares of
common  stock  to  certain  directors,  officers  and  employees  of  the  newly
reorganized  company.

CONSULTING AGREEMENTS WITH MANAGEMENT

As a result of the stock exchange transaction with Laizhou, the contracts with
the acting president and secretary were terminated.


                                      F-11
<PAGE>
To the Stockholders and the Board of Directors of

LAIZHOU JIA SHENG STONE COMPANY LIMITED




We  have  audited  the  accompanying  balance  sheet  of Laizhou Jia Sheng Stone
Company  Limited  (the  "Company")  as  of  December  31,  2003, and the related
statements  of  operations,  stockholders'  equity and cash flows for the period
from  January  9,  2003  (date  of  incorporation)  to December 31, 2003.  These
financial  statements  are  the responsibility of the Company's management.  Our
responsibility  is  to express an opinion on these financial statements based on
our  audit.

We  conducted our audit in accordance with auditing standards generally accepted
in  the  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 misstatement.  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  that  our  audit  provides  a
reasonable  basis  for  our  opinion.

In  our  opinion,  the financial statements referred to above present fairly, in
all  material respects, the financial position of the Company as of December 31,
2003  and  the  results of its operations and its cash flows for the period from
January 9, 2003 (date of incorporation) to December 31, 2003, in conformity with
accounting  principles  generally  accepted  in  the  United  States of America.




MOORES  ROWLAND  MAZARS
Chartered  Accountants
Certified  Public  Accountants,
Hong  Kong,  March  30,  2004


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

                                      F-12
<PAGE>
<TABLE>
<CAPTION>
LAIZHOU JIA SHENG STONE COMPANY LIMITED

BALANCE SHEET
=======================================================================================

                                                               AS OF DECEMBER 31, 2003
                                                              -------------------------
<S>                                                           <C>          <C>
ASSETS                                                                Rmb           US$

CURRENT ASSETS
Cash and cash equivalents                                         345,400        41,715
Accounts receivable                                             2,010,493       242,813
Inventories (Note 3)                                              947,305       114,408
Deposits, prepayments and other receivables                         9,900         1,196
                                                              -----------  ------------

TOTAL CURRENT ASSETS                                            3,313,098       400,132

Plant and equipment, net (Note 4)                              22,010,328     2,658,253
Mineral interests, net (Note 5)                                12,449,992     1,503,622
                                                              -----------  ------------

TOTAL ASSETS                                                   37,773,418     4,562,007
                                                              ===========  ============

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Accruals and other payables (Note 6)                              989,271       119,477
Business and resource tax and government surcharges payable     1,652,683       199,599
Due to a shareholder (Note 11)                                    750,000        90,580
Due to a former director (Note 11)                              1,000,000       120,773
Income tax payable                                              3,389,489       409,359
                                                              -----------  ------------

TOTAL CURRENT LIABILITIES                                       7,781,443       939,788
                                                              -----------  ------------

COMMITMENTS AND CONTINGENCIES (Note 9)

STOCKHOLDERS' EQUITY
Registered capital                                              5,000,000       603,865
Additional paid-in capital                                     18,110,284     2,187,232
Dedicated reserves                                              1,749,128       211,247
Retained earnings                                               5,132,563       619,875
                                                              -----------  ------------

TOTAL STOCKHOLDERS' EQUITY                                     29,991,975     3,622,219
                                                              -----------  ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                     37,773,418     4,562,007
                                                              ===========  ============
</TABLE>


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

                                      F-13
<PAGE>
<TABLE>
<CAPTION>
LAIZHOU JIA SHENG STONE COMPANY LIMITED

STATEMENT OF OPERATIONS
================================================================================


                                                   PERIOD FROM JANUARY 9, 2003
                                                     (DATE OF INCORPORATION)
                                                       TO DECEMBER 31, 2003
                                                  ------------------------------
                                                             Rmb             US$
<S>                                               <C>             <C>
Net sales                                            25,255,513       3,050,183
Cost of sales                                       (13,648,793)     (1,648,405)
                                                  --------------  --------------

Gross profit                                         11,606,720       1,401,778

Selling, general and administrative expenses         (1,339,538)       (161,780)
                                                  --------------  --------------

OPERATING INCOME                                     10,267,182       1,239,998

Other income:
Interest income                                           3,998             483
                                                  --------------  --------------

INCOME BEFORE INCOME TAXES                           10,271,180       1,240,481

Provision for income taxes (Note 7)                  (3,389,489)       (409,359)
                                                  --------------  --------------

NET INCOME                                            6,881,691         831,122
                                                  ==============  ==============
</TABLE>


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

                                      F-14
<PAGE>
<TABLE>
<CAPTION>
LAIZHOU JIA SHENG STONE COMPANY LIMITED

STATEMENT OF STOCKHOLDERS' EQUITY
=========================================================================================================


                                                ADDITIONAL
                                    REGISTERED     PAID-IN  DEDICATED     RETAINED
                                       CAPITAL     CAPITAL  RESERVES      EARNINGS       TOTAL      TOTAL
                                           Rmb         Rmb     Rmb             Rmb         Rmb        US$
<S>                                 <C>         <C>         <C>        <C>          <C>         <C>
Proceeds on issuance of registered
  capital                            5,000,000  18,110,284          -           -   23,110,284  2,791,097

Net income                                   -           -          -   6,881,691    6,881,691    831,122

Transfer                                                    1,749,128  (1,749,128)           -          -
                                    ----------  ----------  ---------  -----------  ----------  ---------

Balance as of December 31, 2003      5,000,000  18,110,284  1,749,128   5,132,563   29,991,975  3,622,219
                                    ==========  ==========  =========  ===========  ==========  =========
</TABLE>


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

                                      F-15
<PAGE>
<TABLE>
<CAPTION>
LAIZHOU JIA SHENG STONE COMPANY LIMITED

STATEMENT OF CASH FLOWS
=====================================================================================================


                                                                        PERIOD FROM JANUARY 9, 2003
                                                                          (DATE OF  INCORPORATION)
                                                                            TO DECEMBER 31, 2003
                                                                       ------------------------------
                                                                                  Rmb             US$
<S>                                                                    <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                                 6,881,691         831,122
Adjustments to reconcile net income to net cash provided by operating
  activities:
Depreciation of plant and equipment                                          975,534         117,818
Amortization of mineral interests                                            550,008          66,426
Changes in operating assets and liabilities:
  Accounts receivable                                                     (2,010,493)       (242,813)
  Deposits, prepayments and other receivables                                 (9,900)         (1,196)
  Inventories                                                              1,678,895         202,765
  Accruals and other payables                                                989,271         119,477
  Business and resource tax and government surcharge payable               1,652,683         199,599
  Income taxes payable                                                     3,389,489         409,359
                                                                       --------------  --------------

NET CASH PROVIDED BY OPERATING ACTIVITIES                                 14,097,178       1,702,557
                                                                       --------------  --------------

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of plant and equipment                                       (13,501,778)     (1,630,650)
Acquisition of mineral interests                                          (7,000,000)       (845,410)
                                                                       --------------  --------------

NET CASH USED IN INVESTING ACTIVITIES                                    (20,501,778)     (2,476,060)
                                                                       --------------  --------------

CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issuance of registered capital                           5,000,000         603,865
Advance from a shareholder                                                 3,500,000         422,705
Repayment to a shareholder                                                (2,750,000)       (332,125)
Advance from a former director                                             1,000,000         120,773
                                                                       --------------  --------------

NET CASH PROVIDED BY FINANCING ACTIVITIES                                  6,750,000         815,218
                                                                       --------------  --------------

Net increase in cash and cash equivalents                                    345,400          41,715
                                                                       --------------  --------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                     345,400          41,715
                                                                       ==============  ==============

NON-CASH INVESTING AND FINANCING ACTIVITIES:
Acquisition of plant and equipment funded by shareholders                  9,484,084       1,145,421
Acquisition of inventories funded by shareholders                          2,626,200         317,173
Acquisition of mineral interest funded by shareholders                     6,000,000         724,638
                                                                       ==============  ==============
</TABLE>


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

                                      F-16
<PAGE>
1.   ORGANIZATION AND PRINCIPAL ACTIVITIES

     Laizhou Jia Sheng Stone Company Limited ("The Company") was incorporated in
     the  People's  Republic of China ("PRC") on January 9, 2003. The Company is
     engaged  in  granite mining and processing of granite. Most of raw granites
     mined  are  sold  without any further processing. The Company also acquires
     raw  granite  from  others  for  further  processing  into  slabs for sale.

     The  Company  has  acquired  mineral  interests  of granite reserves in two
     locations in Laizhou city of Shandong province in the PRC. The mining right
     periods under these two mineral interests are 20 and 30 years respectively.


2.   SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

     BASIS  OF  ACCOUNTING
     The  financial  statements have been prepared in accordance with accounting
     principles  generally  accepted  in  the  United  States  of  America.  The
     financial  statements  are  presented  in  Renminbi  ("Rmb")  which  is the
     Company's  functional  currency  as the Company's operations are located in
     the  PRC.

     CASH  AND CASH EQUIVALENTS
     The Company considers all cash and highly liquid investments purchased with
     an  original  maturity  of  three  months  or  less to be cash equivalents.

     PLANT  AND  EQUIPMENT  AND  DEPRECIATION
     Plant  and equipment are stated at cost. Significant renewals and additions
     are  capitalized  at  cost. Maintenance and repairs, and minor renewals and
     betterments  are  charged  to  operations  as  incurred.

     Mineral  exploration  costs  are  expensed  as  incurred.  When it has been
     determined  that  a  mineral  property  can  be economically developed as a
     result  of  establishing  proven  and  probable  reserves,  costs  incurred
     prospectively  to  develop the property are capitalized as incurred and are
     amortized.  Major  development  costs  incurred  after  the commencement of
     production  are capitalized and amortized. Ongoing development expenditures
     to  maintain  production  are  charged  to  operations  as  incurred.  No
     exploration  and  development  costs  have been capitalized for the period.

     The  existing  terms  of  the mineral rights (mining right periods) are not
     sufficient  to  recover  all  identified  and  valued  proven  and probable
     reserves and/or undeveloped mineral interests in respect of the two mineral
     rights  currently  owned  by the Company. Therefore the Company depreciates
     and amortizes its mining-related plant and equipment and mining development
     costs on a straight-line basis over the estimated useful lives of the plant
     and  equipment.

     Depreciation  is  calculated  to  write off the cost of plant and equipment
     over  their estimated useful lives from the date on which they become fully
     operational  and after taking into account their estimated residual values,
     using  the  straight  line  method,  at  the  following  annual  rates:

          Leasehold land             Over the unexpired term of lease
          Buildings                  10 - 20 years
          Motor vehicles             2 - 10 years
          Furniture and equipment    1 - 20 years


--------------------------------------------------------------------------------

                                      F-17
<PAGE>
2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     ACCOUNTS  RECEIVABLE
     Accounts  receivable  are  stated  at  the  amount billed to customers. The
     Company  provides an allowance for doubtful accounts, which is based upon a
     review  of  outstanding  receivables, historical collection information and
     existing  economic  conditions.  Accounts  past  due more than 120 days are
     considered  delinquent.  Delinquent  receivables  are  written off based on
     individual  credit  evaluation  and specific circumstances of the customer.

     INVENTORIES
     Inventories  are  valued  at  the  lower  of  cost or market using weighted
     average  cost  method  of  accounting.

     Raw materials represent purchased raw granite for use in further processing
     into  granite  slabs.  Work-in-progress  represents  materials  that  are
     currently  in  the  process  of  being converted to granite slabs. Finished
     goods  represent granite blocks (raw granite) held for sale from mining and
     processed  granite  slabs.

     MINERAL  INTERESTS
     Mineral interests represent acquired mineral rights for parcels of land not
     owned  by  the  Company.  These  mineral  interests  are  currently  in the
     production  stage  which  contain  proven  and  probable  reserves. Mineral
     interests  are  amortized  using the straight-line method over the terms of
     mineral  rights  which  are  20  and 30 years for the Company's two mineral
     interests.  Straight-line  method  of  amortization  is  used  because  the
     existing  terms  of  the  mineral  rights  (mining  right  periods) are not
     sufficient  to  recover  all  identified  and  valued  proven  and probable
     reserves.

     The  Company was issued a mining right certificate in respect of one of its
     two mineral interests from the relevant governmental authority. The initial
     application  and  registration  fee  of applying a mining right certificate
     from  relevant  governmental  authority amounted to Rmb250,000 (US$30,193).
     The  mining  right  certificate  is  to  be  renewed  every five years. The
     management  of  the  Company considers the renewal fee would be minimal and
     the  chance  of  renewals  not  being  granted by the relevant governmental
     authority  is  remote. The Company further received a confirmation from the
     governmental  authority confirming that the mining right certificate can be
     renewed  every  five years. With respect to the remaining mineral interest,
     the Company has submitted an application for a mining right certificate for
     which  a  confirmation  of  application-in-progress  was  received from the
     relevant governmental authority. The management expects the official mining
     right  certificate  will  be  issued  in  the  year  2004.

     The  Company  has  received  written  confirmation  from  the  relevant
     governmental  authority that the Company has valid mining rights in its two
     mineral  interests since the commencement of mining business throughout the
     terms  of  respective  mineral  interests,  despite  the fact that official
     mining  right certificates have not been issued at the time of commencement
     of  mining  business.


--------------------------------------------------------------------------------

                                      F-18
<PAGE>
2.   SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

     DEFERRED  STRIPPING  COSTS
     In  general,  mining costs are charged to operations as incurred. The costs
     of  removing  overburden and other waste materials and road construction to
     access  mineral  deposits  at open pit mines are capitalized and amortized.
     These  costs of removing waste materials and road construction are referred
     to  as  stripping  costs.

     During  the  period,  the  Company  expensed all the stripping costs in the
     statement  of  operations  because  it  has not been established that these
     costs  can benefit the exploration and production of minerals in subsequent
     periods.  Such  costs  amounted  to  Rmb8,000,000  (US$966,184).

     RECLAMATION  AND  REMEDIATION  COSTS
     Estimated future reclamation and abandonment costs are based principally on
     legal  and regulatory requirements and are accounted for in accordance with
     Statement  of  Financial Accounting Standards ("SFAS") No. 143, "Accounting
     for  Asset  Retirement  Obligations". At the balance sheet date, such costs
     have  not  been provided because the costs involved are insignificant under
     the  current  legal  and  regulatory  requirements  in  the  PRC.

     IMPAIRMENT  OF  LONG-LIVED  ASSETS
     Long-lived  assets  are evaluated for impairment whenever events or changes
     in  circumstances  indicate that the carrying amount of an asset may not be
     recoverable in accordance with SFAS No. 144, "Accounting for the Impairment
     or  Disposal  of Long-Lived Assets". An asset is considered impaired if its
     carrying  amount  exceeds the future net cash flow the asset is expected to
     generate.  If  such assets are considered to be impaired, the impairment to
     be recognized is measured by the amount by which the carrying amount of the
     asset  exceeds  its  fair  market  value.  The recoverability of long-lived
     assets  is  assessed by determining whether the unamortized balances can be
     recovered through undiscounted future net cash flows of the related assets.
     The amount of impairment, if any, is measured based on projected discounted
     future  net  cash  flows  using  a  discount  rate reflecting the Company's
     average  cost  of  capital.

     NET  SALES
     The  Company  recognizes  revenue  when  there is persuasive evidence of an
     agreement  with  customers,  with  a fixed fee that is collectible and when
     delivery  has  occurred.

     COST  OF  SALES
     Costs  classified  as  cost  of  sales relate to the mining of minerals and
     producing  of  granite  slabs  and  include  such  items  as material cost,
     depreciation  of  fixed  assets,  amortization of mineral interests, direct
     labor  costs  and  other  production  costs.


--------------------------------------------------------------------------------

                                      F-19
<PAGE>
2.   SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

     INCOME  TAXES
     Income  taxes  are  provided  under  the  provisions of SFAS No. 109, which
     requires  recognition of the estimated future tax consequences attributable
     to differences between the financial statement carrying amounts of existing
     assets  and  liabilities  and  their respective tax bases and net operating
     loss  carryforwards  under  the  liability  method. Deferred tax assets and
     liabilities  are measured using expected tax rates in effect for the period
     in  which  those  temporary  differences  are  expected  to be recovered or
     settled.

     COMPREHENSIVE  INCOME
     The  Company  has  adopted  SFAS  No. 130 "Reporting Comprehensive Income",
     which  requires  the disclosure of comprehensive income, which includes net
     income  (loss),  unrealized  gains  and  losses  on  marketable  securities
     classified  as  available-for-sale  and  foreign  currency  translation
     adjustments.  Comprehensive  income  for  the  period only consisted of net
     income  for  the  period.

     FOREIGN  CURRENCY  TRANSLATION
     The  Company considers Renminbi as its functional currency as the Company's
     business  activities  are  based  in  Renminbi.

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

     Translation  of amounts from Renminbi into United States dollars ("US$") is
     for the convenience of readers and has been made at the noon buying rate in
     New  York  City  for cable transfers in foreign currencies as certified for
     customs  purposes  by  the Federal Reserve Bank of New York on December 31,
     2003  of  US$1.00  =  Rmb8.28.  No representation is made that the Renminbi
     amounts  could have been, or could be, converted into United States dollars
     at  that  rate  or  at  any  other  rate.

     USE  OF  ESTIMATES
     The  preparation  of  financial  statements  in  conformity with accounting
     principles  generally  accepted  in  the  United States of America requires
     management  to  make  estimates  and  assumptions  that affect the reported
     amounts  of  assets and liabilities and the disclosure of contingent assets
     and  liabilities  at  the date of the financial statements and the reported
     amounts  of  revenues  and  expenses  during  the  reporting  period.  Such
     estimates  include  provisions  for  doubtful  accounts,  sales returns and
     allowances,  long-lived  assets  and  deferred income taxes. Actual results
     could  differ  from  those  estimates.

     FAIR  VALUE  OF  FINANCIAL  INSTRUMENTS
     The  estimated  fair  values  for financial instruments under SFAS No. 107,
     "Disclosures  about Fair Value of Financial Instruments", are determined at
     discrete  points  in  time  based  on  relevant  market  information. These
     estimates  involve  uncertainties  and cannot be determined with precision.
     The  estimated  fair  values  of the Company's financial instruments, which
     includes  cash,  accounts receivable and other payables, approximates their
     carrying  values  in  the  financial  statements.


--------------------------------------------------------------------------------

                                      F-20
<PAGE>
2.   SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

     RECENT  ACCOUNTING  PRONOUNCEMENTS
     In  January  2003,  the  FASB  issued  Interpretation  No.  46  ("FIN  46")
     "Consolidation of Variable Interest Entities". Until this interpretation, a
     company  generally  included  another  entity in its consolidated financial
     statements  only  if it controlled the entity through voting interests. FIN
     46 requires a variable interest entity, as defined, to be consolidated by a
     company  if  that company is subject to a majority of the risk of loss from
     the  variable  interest  entity's  activities  or  is entitled to receive a
     majority  of  the  entity's  residual  returns.  In December 2003, the FASB
     issued  a  revised  FIN  46.  The  revised  standard, FIN 46-R, modifies or
     clarifies  various  provisions  of  FIN 46 and incorporates many FASB Staff
     Positions  previously  issued  by  the  FASB.  This  standard  replaces the
     original  FIN  46  that  was  issued  in January 2003. The Company does not
     expect  the  adoption  of  FIN  46-R  will  have  a  material impact on the
     Company's  results  of  operations  or  financial  position.

     In  November  2002,  the  Emerging Issues Task Force reached a consensus on
     Issue  No.  00-21  ("EITF  00-21"),  "Revenue  Arrangements  with  Multiple
     Deliverables".  EITF  00-21  provides  guidance  on  how  to  account  for
     arrangements that involve the delivery or performance of multiple products,
     services  and/or  rights  to  use assets. The provisions of EITF 00-21 will
     apply  to  revenue  arrangements  entered  into in fiscal periods beginning
     after June 15, 2003. The Company does not expect the adoption of EITF 00-21
     will  have  a  material  impact  on  its  financial  position or results of
     operations.

     In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on
     Derivative  Instruments  and Hedging Activities". This statement amends and
     clarifies  financial  accounting  and reporting for derivative instruments,
     including  derivative  instruments  embedded  in  other  contracts  and for
     hedging  activities  under  SFAS  No.  133. The Company does not expect the
     adoption  of  SFAS 149 will have a material impact on the Company's results
     of  operations  or  financial  position.

     In  May  2003,  the  FASB  issued  SFAS  No.  150,  "Accounting for Certain
     Financial Instruments with Characteristics of both Liabilities and Equity".
     SFAS  No.  150  establishes standards for how certain financial instruments
     with characteristics of both liabilities and equity shall be classified and
     measured.  This  statement  is  effective for financial instruments entered
     into  or  modified  after  May  31, 2003, and otherwise is effective at the
     beginning  of  the  first interim period beginning after June 15, 2003. The
     Company  does  not expect the adoption of SFAS No. 150 will have a material
     impact  on  the  Company's  result  of  operations  or  financial position.

     In December 2003 the FASB issued SFAS No. 132 (Revised) ("SFAS No. 132-R"),
     Employer's  Disclosure  about  Pensions  and Other Postretirement Benefits.
     SFAS No. 132-R retains disclosure requirements of the original SFAS No. 132
     and  requires  additional disclosures relating to assets, obligations, cash
     flows,  and  net  periodic  benefit  cost.  SFAS No. 132-R is effective for
     fiscal  years  ending  after  December  15,  2003,  except  that  certain
     disclosures  are effective for fiscal years ending after June 15, 2004. The
     adoption of SFAS No. 132-R does not have a material effect on the Company's
     financial  statements.


--------------------------------------------------------------------------------

                                      F-21
<PAGE>
3.   INVENTORIES

     Inventories  consisted  of:

<TABLE>
<CAPTION>
                                                        AS OF DECEMBER 31, 2003
                                                       -------------------------
                                                               Rmb           US$
<S>                                                    <C>          <C>
     Raw materials                                         686,264        82,882
     Work-in-progress                                      158,225        19,109
     Finished goods                                        102,816        12,417
                                                       -----------  ------------

                                                           947,305       114,408
                                                       ===========  ============
</TABLE>

4.   PLANT  AND  EQUIPMENT,  NET

     Plant  and  equipment  consisted  of:

<TABLE>
<CAPTION>
                                                       AS OF DECEMBER 31, 2003
                                                     ---------------------------
                                                              Rmb            US$
<S>                                                  <C>           <C>
     Leasehold land                                    4,718,108        569,820
     Buildings                                         5,864,854        708,316
     Furniture and equipment                           7,268,780        877,872
     Motor vehicles                                      198,540         23,978
     Construction-in-progress                          4,935,580        596,085
                                                     ------------  -------------

     Cost                                             22,985,862      2,776,071
     Less: Accumulated depreciation                     (975,534)      (117,818)
                                                     ------------  -------------

     Plant and equipment, net                         22,010,328      2,658,253
                                                     ============  =============
</TABLE>

     Depreciation  expense  amounted  to  Rmb975,534 (US$117,818) for the period
     ended  December  31,  2003.


5.   MINERAL  INTERESTS,  NET

     Mineral  interests  represented:

<TABLE>
<CAPTION>
                                                       AS OF DECEMBER 31, 2003
                                                     ---------------------------
                                                              Rmb            US$
<S>                                                  <C>           <C>
     Gross carrying amount                            13,000,000      1,570,048
     Accumulated amortization                           (550,008)       (66,426)
                                                     ------------  -------------

     Net book value                                   12,449,992      1,503,622
                                                     ============  =============
</TABLE>

     All  the  mineral  interests  are  in the production stage and amortization
     expense  for  the  period  amounted  to  Rmb550,008  (US$66,426).


--------------------------------------------------------------------------------

                                      F-22
<PAGE>
6.   ACCRUALS  AND  OTHER  PAYABLES

     Accruals  and  other  payables  consisted  of:

<TABLE>
<CAPTION>
                                                        AS OF DECEMBER 31, 2003
                                                       -------------------------
                                                               Rmb           US$
<S>                                                    <C>          <C>
     Wages and bonus                                       215,137        25,983
     Others                                                774,134        93,494
                                                       -----------  ------------

                                                           989,271       119,477
                                                       ===========  ============
</TABLE>

7.   INCOME  TAXES

     The Company is subject to the PRC income tax at a rate of 33%.

     The  reconciliation  of the PRC income tax rate to the effective income tax
     rate  based  on  income  before  income  taxes  is  as  follows:

<TABLE>
<CAPTION>
                                                                     PERIOD FROM
                                                                 JANUARY 9, 2003
                                                                        (DATE OF
                                                               INCORPORATION) TO
                                                               DECEMBER 31, 2003
                                                                               %
<S>                                                           <C>
     PRC income tax rate                                                      33
                                                              ------------------

     Effective income tax rate                                                33
                                                              ==================
</TABLE>

     Deferred  tax assets and liabilities have not been provided as there are no
     temporary  differences  existed  during the period and at the balance sheet
     date.


--------------------------------------------------------------------------------

                                      F-23
<PAGE>
8.   STOCKHOLDERS'  EQUITY

     On  incorporation,  the  shareholders of the Company contributed a total of
     Rmb5,000,000 (US$603,865) to the Company as registered capital. In addition
     to  the contribution to registered capital, the Company's shareholders also
     contributed  Rmb18,110,284  (US$2,187,232)  in  value  of  fixed  assets,
     inventories  and  mineral  interest  to  the  Company  which is recorded as
     additional  paid-in  capital.

     The Company's income is distributable to its shareholders after transfer to
     dedicated  reserves as required under relevant PRC laws and regulations and
     the Company's Articles of Association. Dedicated reserves include statutory
     surplus  reserve  and  statutory  public  welfare  fund.

     Statutory  surplus  reserve  represents  the appropriation of 10% of income
     after  taxation  calculated in accordance with PRC accounting standards and
     regulations  and  the  Articles  of  Association  of  the  Company.  The
     appropriation  may  cease  to apply if the balance of the statutory surplus
     reserve  has  reached 50% of the Company's registered capital. According to
     the  Company's  Articles  of  Association, statutory surplus reserve can be
     used  to  make  up  prior year losses, to expand production operation or to
     increase  registered  capital.

     Statutory  public welfare fund represents the appropriation of income after
     taxation  according  to  the  requirements  of  the  Company's  Articles of
     Association  and  the  PRC  laws  and  regulations.  According  to  the
     requirements,  the  Company  transfers  5%  to  10%,  at  the discretion of
     directors,  of  income  after  taxation  calculated  in accordance with PRC
     accounting  standards  and  regulations.  The fund can only be utilized for
     capital  expenditure on employees' collective welfare facilities and cannot
     be used in staff welfare expenses. The statutory public welfare fund is not
     distributable  to  shareholders  other  than  in  liquidation.


9.   COMMITMENTS  AND  CONTINGENCIES

     At  the balance sheet date, the Company had capital expenditure commitments
     in  respect  of granite slabs production facilities contracted for, but not
     provided for, net of deposits paid, amounting to Rmb2,270,000 (US$274,155).

     The  Company  has  made  full  tax  provision  in  accordance with relevant
     national  and local laws and regulations of the PRC. However, the local tax
     authority  granted  the  Company  certain  tax allowances and exemption and
     collected  less  than  the  full  amount  from  the Company. This is not in
     compliance  with  national  laws  and regulations. Accordingly, despite the
     fact  that  the  Company  has  made  full  tax  provision  in the financial
     statements,  the Company may be subject to penalty ranging from 50% to 500%
     of  the  underpaid tax amount, plus a default interest on the unpaid amount
     calculated  on  a  daily  basis.  The  exact  amount  of  penalty cannot be
     estimated  with  any reasonable degree of certainty. The board of directors
     considers  it  is  not  probable  that the tax penalty will be imposed as a
     result  of  tax  concession/exemption,  which may not be in compliance with
     relevant  national  laws  and  regulations,  provided  by  the  local  tax
     authority.

10.  RETIREMENT  PLAN  AND  POST-EMPLOYMENT  BENEFITS

     The  Company  has  no  retirement  plan or post-employment benefits for its
     employees.


--------------------------------------------------------------------------------

                                      F-24
<PAGE>
11.  RELATED  PARTY  TRANSACTIONS

     During  the period, the Company had the following transactions with related
     parties.

     (1)  Related  party  transactions  during  the  period  are  as  follows:

          During the period, the Company acquired a mineral interest from one of
          its  shareholders  at  a  consideration  of Rmb7,000,000 (US$845,410),
          which  was  transferred  at  cost.

          As disclosed in note 8, the shareholders contributed certain assets to
          the  Company  in  addition to the registered capital. Included in such
          assets  is  a  mineral  interest  acquired  from  one of the Company's
          shareholders  at  a  consideration of Rmb6,000,000 (US$724,638), which
          was  transferred  at  cost.

          One  of the Company's bank accounts is in the name of one of its staff
          members,  who  holds  the  bank  account  in  trust  for  the Company.
          Settlement  received from customers of the Company deposited into this
          bank  account  and  payment  for expenditures of the Company withdrawn
          from  this  bank  account  during the period amounted to Rmb23,780,260
          (US$2,872,012).  The  Company has a bank account opened in the name of
          the  staff  member  because  it is much easier to deposit and withdraw
          funds  for  an  individual  than  a  corporation in the PRC. This bank
          account  was  closed in December 2003 and the Company now uses its own
          bank  account  for  funds  deposits  and  withdrawals.

     (2)  Balances with related parties are as follows:

<TABLE>
<CAPTION>
                                                        AS OF DECEMBER 31, 2003
                                                       -------------------------
                                                               Rmb           US$
<S>                                                    <C>          <C>
          Due to a shareholder                             750,000        90,580
                                                       ===========  ============
</TABLE>

          The  amount  due to a shareholder represented the unsettled balance of
          acquisition  of  a  mineral  interest  from  this  shareholder.

          The  outstanding  balance is unsecured, interest-free and has no fixed
          repayment  terms.  In  December  2003, the Company and the shareholder
          mutually  agreed  to  extend  the  repayment  period from the original
          maturity  date  of  December  31,  2003.

<TABLE>
<CAPTION>
                                                        AS OF DECEMBER 31, 2003
                                                       -------------------------
                                                               Rmb           US$
<S>                                                    <C>          <C>
          Due to a former director                       1,000,000       120,773
                                                       ===========  ============
</TABLE>

          The  amount due to a former director, who is also a shareholder of the
          Company, represented short-term financing to the Company for operating
          purposes.

          The  outstanding  balance is unsecured, interest-free and has no fixed
          repayment  terms.


--------------------------------------------------------------------------------

                                      F-25
<PAGE>
12.  SEGMENT  INFORMATION

     The  Company  adopted  SFAS  No.  131  "Disclosures  About  Segments  of an
     Enterprise  and Related Information", in respect of its operating segments.
     The  Company's  reportable  segments  are  granite  mining (sale of granite
     blocks)  and  production  of  granite slabs. All of the Company's operating
     activities  and  customers  are  located  in  the  PRC.

     These  segments  are  managed  separately  because  each  business requires
     different  technology  and  marketing  strategies.  The  Company  evaluates
     performance  based  on operating earnings of the respective business units.
     The  accounting policies of the segments are the same as those described in
     the  summary  of  significant  accounting  policies.  The  corporate assets
     primarily  include  cash  and  cash  equivalents  and  deposits  and  other
     receivables.  There  were  no significant inter-segment transactions during
     the  period.  In  determining  operating income/loss by reportable segment,
     general corporate expenses, other income and expense items of non-operating
     nature are not considered, as such items are not allocated to the Company's
     segments.  Segment  information  for  the  period  are  as  follows:

     (a)  Net  sales:

<TABLE>
<CAPTION>
                                                    PERIOD FROM  JANUARY 9, 2003
                                                     (DATE OF INCORPORATION) TO
                                                          DECEMBER 31, 2003
                                                    ----------------------------
                                                              Rmb            US$
<S>                                                 <C>            <C>
          Granite mining                               20,230,745      2,443,327
          Production of granite slabs                   5,024,768        606,856
                                                    -------------  -------------

                                                       25,255,513      3,050,183
                                                    =============  =============
</TABLE>

     (b)  Net  income:

<TABLE>
<CAPTION>
                                                      PERIOD FROM  JANUARY 9, 2003
                                                       (DATE OF INCORPORATION) TO
                                                            DECEMBER 31, 2003
                                                     ------------------------------
                                                                Rmb             US$
<S>                                                  <C>             <C>
          Granite mining                                10,442,936       1,261,224
          Production of granite slabs                    1,101,027         132,974
                                                     --------------  --------------

                                                        11,543,963       1,394,198
                                                     ==============  ==============

          Reconciliation:
          Net income for reportable segments            11,543,963       1,394,198
          Unallocated corporate income and expenses     (4,662,272)       (563,076)
                                                     --------------  --------------

                                                         6,881,691         831,122
                                                     ==============  ==============
</TABLE>


--------------------------------------------------------------------------------

                                      F-26
<PAGE>
12.  SEGMENT  INFORMATION  (CONTINUED)

     (c)  Assets:

<TABLE>
<CAPTION>
                                                        AS OF DECEMBER 31, 2003
                                                       -------------------------
                                                               Rmb           US$
<S>                                                    <C>          <C>
          Granite mining                                19,818,224     2,393,505
          Production of granite slabs                    8,450,451     1,020,586
                                                       -----------  ------------

                                                        28,268,675     3,414,091
                                                       ===========  ============

          Reconciliation:
          Total assets for reportable segments          28,268,675     3,414,091
          Other corporate assets                         9,504,743     1,147,916
                                                       -----------  ------------

                                                        37,773,418     4,562,007
                                                       ===========  ============
</TABLE>

          All  of  the  Company's  identifiable  assets  are located in the PRC.

     (d)  Other  items:

<TABLE>
<CAPTION>
                                                    PERIOD FROM  JANUARY 9, 2003
                                                     (DATE OF INCORPORATION) TO
                                                          DECEMBER 31, 2003
                                                    ----------------------------
                                                              RMB            US$
<S>                                                 <C>            <C>
          Depreciation of fixed assets:
          Granite mining                                  503,172         60,770
          Production of granite slabs                     217,005         26,208
          Unallocated corporate assets                    255,357         30,840
                                                    -------------  -------------

                                                          975,534        117,818
                                                    =============  =============

          Capital expenditures for fixed assets:
          Granite mining                                7,833,819        946,114
          Production of granite slabs                   5,747,244        694,112
          Unallocated corporate assets                  9,404,799      1,135,845
                                                    -------------  -------------

                                                       22,985,862      2,776,071
                                                    =============  =============

          Amortization of mineral interests:
          Granite mining                                  550,008         66,426
                                                    =============  =============
</TABLE>


--------------------------------------------------------------------------------

                                      F-27
<PAGE>
12.  SEGMENT  INFORMATION  (CONTINUED)

     (e)  Major  customers

          Major  customers  for  the period which accounted for more than 10% of
          total  revenues  are  as  follows:

<TABLE>
<CAPTION>
                                                     PERIOD FROM JANUARY 9, 2003
                                                      (DATE OF INCORPORATION) TO
                                                               DECEMBER 31, 2003
                                                    ----------------------------
<S>                                                 <C>
          Granite mining                               2 customers accounted for
                                                            10% and 13% of total
                                                          revenues, respectively

          Production of granite slabs               1 customer accounted for 12%
                                                               of total revenues
</TABLE>

13.  OPERATING  RISK

     (a)  Country  risk

          The  Company's  operations  are conducted in the PRC. Accordingly, the
          Company's  business, financial condition and results of operations may
          be influenced by the political, economic and legal environments in the
          PRC,  and  by  the  general  state  of  the  PRC  economies.

          The  Company's  operations  in  the  PRC  are  subject  to  special
          considerations  and  significant  risks  not typically associated with
          companies  in  North  America  and Western Europe. These include risks
          associated  with,  among  others,  the  political,  economic and legal
          environments  and foreign currency exchange. The Company's results may
          be  adversely  affected  by  changes  in  the  political  and  social
          conditions  in  the  PRC,  and  changes  in governmental policies with
          respect  to laws and regulations, anti-inflationary measures, currency
          conversion  and  remittance abroad, and rates and methods of taxation,
          among  other  things.

     (b)  Industry  risk

          The  Company  operates  in business segments which requires the use of
          specialized  facilities  and technology. The Company relies heavily on
          such  facilities  and technology to maintain its production level. The
          cash  flow  and  profitability of the Company's current operations are
          significantly  affected  by  the  market  price  of  granite which are
          affected  by  numerous  factors  beyond  the  Company's  control.  As
          mentioned  in Note 2 to the financial statements, the Company's mining
          rights are subject to renewals by the relevant governmental authority.
          Despite  the  Company  has  received  written  confirmation  from  the
          governmental authority, there is no guarantee that the Company will be
          granted  the  renewals.


--------------------------------------------------------------------------------

                                      F-28
<PAGE>
13.  OPERATING RISK (CONTINUED)

     (c)  Concentration  of  credit  risk

          As  of  December  31,  2003,  two  customers  had  accounts receivable
          balances  representing  86%  and  14%  of  total  accounts  receivable
          balance,  respectively.  No  other customer had an accounts receivable
          balance  that  exceeded  10% of the total accounts receivable balance.

          The  Company  performs  ongoing  credit  evaluation of each customer's
          financial condition. It maintains reserves for potential credit losses
          and  such  losses  in  the  aggregate  have  not exceeded management's
          projections.


14.  SUBSEQUENT  EVENTS

     On  January  20,  2004,  the  Company's  shareholders and China Laizhou Bay
     Mining  International  Corporation ("Laizhou") entered into an agreement in
     which  Laizhou  Bay  would  acquire  all the shares in the Company from its
     shareholders  for  cash  consideration.  Laizhou Bay is a limited liability
     corporation  incorporated  in  the  British  Virgin  Islands.  After  the
     acquisition,  the Company became a wholly-owned subsidiary of Laizhou. As a
     result  of  the  acquisition,  the  Company  becomes a foreign wholly-owned
     enterprise, it is exempted from income tax for the first two years from the
     change  of  company  status, followed by a 50% reduction of income tax from
     the  third  to  fifth  year, subject to formal approval from tax authority.

     On  February  5,  2004,  China  Granite  Corporation (formerly Arbor, Inc.)
     ("China Granite"), a corporation organized under the laws of Nevada, United
     States  of  America, a certain principal China Granite shareholder, Laizhou
     and Laizhou's shareholders entered into a Stock Exchange Agreement and Plan
     of  Reorganization, in which China Granite would receive from the Laizhou's
     shareholders  all  of the issued and outstanding common stock of Laizhou in
     exchange  for a majority of the shares in China Granite. As a result of the
     stock  exchange,  the  Company  became  a  wholly-owned subsidiary of China
     Granite.


--------------------------------------------------------------------------------

                                      F-29
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT INDEX
<S>     <C>
---------------------------------------------------------------------------------------
3.1     Amended and Restated Articles of Incorporation (incorporated by reference to
        exhibit 3.1 to the Company's current report on Form 8-K filed on February 20,
        2004).
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
3.2     Amended and Restated Bylaws (incorporated by reference to exhibit 3.1 to the
        Company's current report on Form 8-K filed on February 20, 2004).
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
4.2     Form of Subscription Agreement
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
10.3    Consulting Agreement
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
10.4    Stockholder Transfer Agreement
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
31.1    Certification of Chairman and Chief Executive Officer Pursuant to Section 302
        of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Sec. 1350) (transmitted
        herewith).
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
31.2    Certification of Vice Chairman and Chief Financial Officer Pursuant to Section
        302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Sec. 1350) (transmitted
        herewith).
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
32.1    Written Statement of Chairman and Chief Executive Officer Pursuant to
        Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)
        (transmitted herewith).
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
32.2    Written Statement of Vice Chairman and Chief Financial Officer Pursuant to
        Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)
        (transmitted herewith).
---------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------
</TABLE>


                                       31
<PAGE>