**U.S.
      Securities and Exchange Commission**


**Washington,
      D.C. 20549**










**FORM
      10-QSB**







**[X]**
            **Quarterly
                Report Under Section 13 or 15(d) of The Securities Exchange Act of
                1934
                for the Quarterly Period Ended June 30,
                2007**





**[
                 ]**
            **Transition
                Report Under Section 13 or 15(d) of The Securities Exchange Act of
                1934
                for the Transition Period from _______ to
                _______**





**Commission
      File Number: 1-10559**







**DARK
      DYNAMITE, INC.**


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







**Nevada**
            **65-1021346**(State
                or other jurisdiction of
            (IRS
                Employer Identification No.)incorporation
                or organization)




**E
      Pang Gong Site, 44 Hong Guang Road, Xi An, P.R. China
      710068**


(Address
      of principal executive offices)





**(
      8629 ) 8436-8561**


(Issuer's
      telephone number)










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
                [  ]





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





Number
      of
      shares of common stock outstanding as of August 15, 2007: 
48,591,809


Number
      of
      shares of preferred stock outstanding as of August 15,
      2007:   3,295,000









*Table
          of Contents*




**CAUTIONARY
      STATEMENT REGARDING FORWARD LOOKING INFORMATION**




The
      discussion contained in this 10-QSB under the Securities Exchange Act of 1934,
      as amended, contains forward-looking statements that involve risks and
      uncertainties. The issuer's actual results could differ significantly from
      those
      discussed herein. These include statements about our expectations, beliefs,
      intentions or strategies for the future, which we indicate by words or phrases
      such as "anticipate," "expect," "intend," "plan," "will," "we believe," "the
      Company believes," "management believes" and similar language, including those
      set forth in the discussions under "Notes to Financial Statements" and
      "Management's Discussion and Analysis or Plan of Operation" as well as those
      discussed elsewhere in this Form 10-QSB. We base our forward-looking statements
      on information currently available to us, and we assume no obligation to update
      them. Statements contained in this Form 10-QSB that are not historical facts
      are
      forward-looking statements that are subject to the "safe harbor" created by
      the
      Private Securities Litigation Reform Act of 1995.




2




**TABLE
                OF CONTENTS****PART
                I. FINANCIAL INFORMATION**ITEM
                1. FINANCIAL STATEMENTS
            4ITEM
                2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                RESULTS
                OF OPERATION
            15ITEM
                3. CONTROLS AND PROCEDURES
            19**PART
                II. OTHER INFORMATION**ITEM
                1. LEGAL PROCEEDINGS
            19ITEM
                2. CHANGES IN SECURITIES AND USE OF PROCEEDS
            20ITEM
                3. DEFAULTS UPON SENIOR SECURITIES
            20ITEM
                4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
            20ITEM
                5. OTHER INFORMATION
            20ITEM
                6. EXHIBITS AND REPORTS ON FORM 8-K
            20SIGNATURES
            21INDEX
                TO EXHIBITS
            22






3
 *Table
          of Contents*




**ITEM
      1.** **FINANCIAL STA****TEMENTS**







**INDEX
                TO CONSOLIDATED FINANCIAL STATEMENTS****(UNAUDITED)****Page**Unaudited
                Consolidated Balance Sheet - June 30, 2007
            5Unaudited
                Consolidated Statements of Operations and Comprehensive Income - For
                the Three and Six Months Ended June 30, 2007 and 2006
            6Unaudited
                Consolidated Statements of Cash Flows - For the Six Months Ended
                June 30,
                2007 and 2006
            7Notes
                to Unaudited Consolidated Financial Statements
            8-14







4
 *Table
          of Contents*




**Dark
                  Dynamite, Inc. and Subsidiary****Unaudited
                  Consolidated Balance Sheets****As
                  of June 30, 2007****ASSETS****CURRENT
                  ASSETS**Cash
                  and cash equivalents
              
              $
              16,845Accounts
                  receivable
              
              
              9,794Inventory
              
              
              16,186Prepaid
                  expenses
              
              
              67,606TOTAL
                  CURRENT ASSETS
              
              
              110,432**FIXED
                  ASSETS**Property,
                  plant, and equipment
              
              
              644,857Accumulated
                  depreciation
              
              
              (198,542
              )TOTAL
                  FIXED ASSETS
              
              
              446,315**TOTAL
                  ASSETS**
              
              $
              556,747**LIABILITIES
                  AND STOCKHOLDERS' EQUITY****CURRENT
                  LIABILITIES**Accounts
                  payable and accrued liabilities
              
              $
              242,899Due
                  to shareholder
              
              
              12,691Tax
                  payable
              
              
              (7,245
              )Other
                  payable
              
              
              31,991TOTAL
                  CURRENT LIABILITIES
              
              
              280,336**TOTAL
                  LIABILITIES**
              
              
              280,336**COMMITMENTS
                  AND CONTINGENCIES**Redeemable
                  preferred stock (par value $.01,
              
              
              32,9505,000,000
                  shares authorized, 3,295,000 sharesissued
                  and outstanding**STOCKHOLDERS'
                  EQUITY**Common
                  stock (par $.0001, 250,000,000
              
              
              4,860authorized,
                  48,591,809 issued and outstandingPaid
                  in capital
              
              
              3,792,895Accumulated
                  other comprehensive income
              
              
              (1,523
              )Retained
                  earnings (deficit)
              
              
              (3,552,772
              )**TOTAL
                  STOCKHOLDERS' EQUITY**
              
              
              243,461**TOTAL
                  LIABILITIES AND STOCKHOLDERS' EQUITY**
              
              $
              556,747The
                  accompanying notes are an integral part of these financial
                  statements.
  5
 *Table
            of Contents*


**Dark
                  Dynamite, Inc and Subsidiary****Unaudited
                  Consolidated Statement of Operations****For
                  the three and six months ended June 30, 2007 and
                  2006**Three
                  months ended June 30,
              
              
              Six
                  months ended June 30,2007
              
              
              2006
              
              
              2007
              
              
              2006**Revenues**Sales
              
              $
              169,168
              
              
              $
              314,176
              
              
              $
              297,553
              
              
              $
              501,165Cost
                  of sales
              
              
              35,634
              
              
              
              49,109
              
              
              
              63,129
              
              
              
              84,833Gross
                  profits
              
              
              133,534
              
              
              
              265,067
              
              
              
              234,424
              
              
              
              416,332**Operating
                  expenses**Selling,
                  general and administrative
              
              
              174,035
              
              
              
              238,718
              
              
              
              355,001
              
              
              
              379,744Taxes
                  expenses
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -**Total
                  Operating Expenses**
              
              
              174,035
              
              
              
              238,718
              
              
              
              355,001
              
              
              
              379,744**Income
                  (Loss) from Operations**
              
              
              (40,501
              )
              
              
              26,349
              
              
              
              (120,577
              )
              
              
              36,588**Other
                  income (expenses)**Debt
                  forgiven
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -Finance
                  costs
              
              
              1
              
              
              
              (401
              )
              
              
              (65
              )
              
              
              (564
              )Other
                  income (expense)
              
              
              (808
              )
              
              
              -
              
              
              
              118
              
              
              
              -**Total
                  other income (loss)**
              
              
              (807
              )
              
              
              (401
              )
              
              
              53
              
              
              
              (564
              )**Income
                  (loss) from Operations**
              
              
              (41,308
              )
              
              
              25,948
              
              
              
              (120,523
              )
              
              
              36,024**Income
                  taxes**
              
              
              -
              
              
              
              9,553
              
              
              
              -
              
              
              
              12,269**Income
                  after income taxes**
              
              
              (41,308
              )
              
              
              16,395
              
              
              
              (120,523
              )
              
              
              23,755**Gain
                  on disposal of Subsidiary**
              
              
              -
              
              
              
              27,322
              
              
              
              -
              
              
              
              27,322**Net
                  Income (Loss)**
              
              
              (41,308
              )
              
              
              43,717
              
              
              
              (120,523
              )
              
              
              51,077**Other
                  comprehensive income (loss)**Foreign
                  currency translation gain (loss)
              
              
              1,386
              
              
              
              -
              
              
              
              (4,381
              )
              
              
              599.
              
              
              
              .
              
              
              
              .
              
              
              
              .**Comprehensive
                  income (loss)**
              
              
              (39,922
              )
              
              
              43,717
              
              
              
              (124,904
              )
              
              
              51,676**Net
                  loss per common share - basic and diluted**
              
              
              **
              
              
              
              **
              
              
              
              **
              
              
              
              ****Weighted
                  average number of common****shares
                outstanding - basic**
              
              
              48,591,809
              
              
              
              45,089,068
              
              
              
              48,591,809
              
              
              
              45,047,679**Less
                  than $.01The
                  accompanying notes are an integral part of the financial
                  statements
  6
 *Table
            of Contents*


**Dark
                  Dynamite, Inc. and Subsidiary****Unaudited
                  Consolidated Statement of Cash Flows****For
                  the six months ended June 30, 2007 and 2006**For
                  the Six MonthsEnded
                  June 30,2007
              
              
              2006**CASH
                  FLOWS FROM OPERATING ACTIVITIES:**Net
                  income (loss) after income tax
              
              $
              (120,523
              )
              
              $
              51,077Adjustments
                  to reconcile net income (loss) tonet
                  cash (used in) operating activities:Depreciation
              
              
              57,471
              
              
              
              33,164Accounts
                  receivable and other receivables
              
              
              (6,173
              )
              
              
              56,491Prepaid
                  and other assets
              
              
              14,684
              
              
              
              145Inventory
              
              
              360
              
              
              
              73,370Accounts
                  payable
              
              
              24,571
              
              
              
              (312,501
              )Tax
                  payable
              
              
              (7,245
              )
              
              
              6,000Other
                  payable
              
              
              31,991
              
              
              
              33,513**NET
                  CASH (USED IN) OPERATING ACTIVITIES**
              
              
              (4,865
              )
              
              
              (58,741
              )**CASH
                  FLOWS FROM INVESTING ACTIVITIES:**Disposal
                  of property, plant, and equipment
              
              
              -
              
              
              
              106,118Capital
                  loss due to preferred stock conversion
              
              
              -
              
              
              
              (446
              )Increase
                  in paid in capital
              
              
              -
              
              
              
              387,320Purchase
                  of property, plant, and equipment
              
              
              (467
              )
              
              
              -**NET
                  CASH PROVIDED BY INVESTING ACTIVITIES**
              
              
              (467
              )
              
              
              492,992**CASH
                  FLOWS FROM FINANCING ACTIVITIES:**Proceeds
                  from shareholder loan
              
              
              5,225
              
              
              
              78,299Notes
                  payable
              
              
              -
              
              
              
              (402,263
              )**NET
                  CASH PROVIDED BY FINANCING ACTIVITIES**
              
              
              5,225
              
              
              
              (323,964
              )FOREIGN
                  CURRENCY TRANSLATION ADJUSTMENT
              
              
              (4,381
              )
              
              
              599**NET
                  INCREASE IN CASH AND CASH EQUIVALENTS**
              
              
              (4,488
              )
              
              
              110,886**CASH
                  AND CASH EQUIVALENTS:**Beginning
                  of period
              
              
              21,333
              
              
              
              5,307End
                  of period
              
              $
              16,845
              
              
              $
              116,193**SUPPLEMENTARY
                  CASH FLOW INFORMATION**Common
                  stock issued for services
              
              $
              -
              
              
              $
              -Cash
                  paid for taxes
              
              $
              -
              
              
              $
              4,052Cash
                  paid for interest
              
              $
              -
              
              
              $
              -The
                  accompanying notes are an integral part of these financial
                  statements.





7
 *Table
          of Contents*


**DARK
          DYNAMITE, INC. AND SUBSIDIARY**
 NOTES
          TO
          UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006


**NOTE
          A - BASIS OF PRESENTATION**
 
 The
        accompanying unaudited condensed consolidated financial statements have been
        prepared in accordance with both generally accepted accounting principles
        for
        interim financial information, and the instructions to Form 10-QSB and Item
        310(b) of Regulation S-B. Accordingly, they do not include all of the
        information and footnotes required by generally accepted accounting principles
        for complete financial statements. The accompanying unaudited condensed
        consolidated financial statements reflect all adjustments (consisting of
        normal
        recurring accruals) that are, in the opinion of management, considered necessary
        for a fair presentation of the results for the interim periods presented.
        Interim results are not necessarily indicative of results for a full
        year.
 
 The
        condensed consolidated financial statements and related disclosures have
        been
        prepared with the presumption that users of the interim financial information
        have read or have access to our annual audited consolidated financial statements
        for the preceding fiscal year. Accordingly, these condensed consolidated
        financial statements should be read in conjunction with the consolidated
        financial statements and the related notes thereto contained in the Annual
        Report on Form 10-KSB for the year ended December 31, 2006.
 
 **NOTE
        B - ORGANIZATION AND BUSINESS BACKGROUD**
 
 Dark
        Dynamite, Inc. (the “Company” or “DKDY”) was incorporated in the State of
        Nevada on December 23, 1988, formerly known as NCI Holdings, Inc., Vector
        Holding, Inc., and prior to June 26, 2002, Vector Aeromotive
        Corporation.
 
 On
        August
        29, 2005, DKDY (acquiree) executed a Plan of Exchange with Shanxi Kai Da
        Lv You
        Gu Wen You Xian Gong Si, a corporation organized under the laws of the Peoples'
        Republic of China (“Kai Da” or "acquirer"), the Shareholders of Kai Da,
        Diversified Holdings X, Inc., a Nevada corporation (“Diversified Holdings”), and
        the majority shareholder of DKDY, pursuant to which, and the First Amendment
        of
        Plan of Exchange signed on September 29, 2005, the majority shareholder of
        DKDY
        and Diversified Holdings transferred a total of 4,990,000 shares of convertible
        preferred stock to Kai Da and/or the Kai Da shareholders for $495,000, less
        related expenses. Each share of convertible preferred stock is convertible
        into
        twenty-five (25) shares of common stock, and each share votes together with
        the
        common stock on all matters presented for a vote on an “as converted” basis. In
        addition, the Company issued 100,000 new shares of common stock to Kai Da
        and/or
        the Kai Da shareholders in exchange for all of their shares of registered
        capital of Kai Da, which then became a wholly-owned subsidiary of the
        Registrant. On October 3, 2005, DKDY consummated the Plan of Exchange with
        Kai
        Da. As a result of the Plan of Exchange, Kai Na will become a wholly-owned
        subsidiary of DKDY. The transaction was treated for accounting purposes as
        a
        capital transaction and recapitalization by the accounting acquirer and as
        a
        re-organization by the accounting acquiree.
 
 Accordingly,
        the consolidated financial statements include the following:
 
 (1)
              The
                  balance sheet consists of the net assets of the acquirer at historical
                  cost and the net assets of the acquiree at historical
                  cost.
  (2)
              The
                  statement of operations includes the operations of the acquirer
                  for the
                  periods presented and the operations of the acquiree from the date
                  of the
                  merger.
 
 Kai
        Da is
        principally engaged in the theme park management in the PRC.
 
 DKDY
        and
        its wholly-owned subsidiary Kai Da are hereafter referred to as (the
“Company”).
  8
 *Table
            of Contents*
  **DARK
          DYNAMITE, INC. AND SUBSIDIARY**
 NOTES
          TO
          UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006
  **NOTE
        B - ORGANIZATION AND BUSINESS BACKGROUD (CONT.)**
 
 After
        the acquisition of Kai Da, the
        Company changed its primary business into theme park management and travel
        related services. The Company contracts and operates the Theme Park of Qin
        E
        Pang Gong (“Theme Park”) through Shanxi Kai Da Lv You Gu Wen You Xian Gong
        Si (“Kai Da”), its wholly owned subsidiary in China. The Theme Park was built up
        at the historical address of E Pang Gong, the most prestigious and largest
        palace in Chinese history built for Qin Shi Huang, the first emperor in the
        Qin
        dynasty over 2,200 years ago. E Pang Gong was burned down during the war
        and
        became a legend as well as the subject of numerous historical books. In 1994,
        the historical address of E Pang Gong was appraised by United Nations
        Educational, Scientific and Cultural Organization ("UNESCO") as one of the
        wonders in the ancient world due to the size of the palace and the degree
        of
        preservation. The current theme park was built imitating the original palace
        based on historical records and legends, covering approximately 5.59 million
        square feet consisting of several building structure, including the Front
        Palace, Qihe River, Magnetic Gate, Heaven Tower, Earth Temple, Lan-Chi Palace
        and the Shang-Lin Garden. Management believes it’s a significant achievement to
        be able to display such a famous and grand palaceto the domestic and
        international
        communities. It is believed to be one of the more important historical sites
        in
        China.
 
 In
        connection with the Company’s Theme Park management, it has currently developed
        three primary business segments:
  ·
              Theme
                  park admission and management·
              Resorts·
              Movie
                  and television revenues
 
 More
        information about the Company’s business can be found on its corporate website
        on the Internet at http://www.qinepanggong.com.
 
 **NOTE
        C – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
 
 Basis
        of Presentation - The financial statements included herein were prepared
        under the accrual basis of accounting.
 
 Cash
        and Cash Equivalents - For purposes of the Statement of Cash Flows, the
        Company considers liquid investments with an original maturity of three months
        or less to be cash equivalents.
 
 Management’s
        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 disclosures of contingent assets and
        liabilities at the date of financial statements and the reported amounts
        of
        revenues and expenses during the reporting period.  Such estimates
        include but are not limited to depreciation, taxes, and
        contingencies.  Actual results could differ from those
        estimates.  The financial statements above reflect all of the costs of
        doing business.
 
 Revenue
        Recognition - The Company's policy is to recognize income when it is earned.
        Kai Da's revenue is derived from ticket sales, and hotel and restaurant income.
        Revenues are booked net of any cash discounts. If any material
        contingencies are present, revenue recognition is delayed until all material
        contingencies are eliminated. Material contingencies are circumstances in
        which
        there are any potential uncertainties as to the completion of the revenue
        process being complete. Further, no revenue is recognized unless collection
        of
        the applicable consideration is probable. Probable collection is determined
        at
        the time collection occurs or is more than reasonably possible it will be
        collected. Retail store sales of products- revenue is recognized when sales
        are
        made. They are paid by cash or credit card. Park admissions- revenues from
        advance theme park ticket sales are.
  9
 *Table
            of Contents*
  **DARK
          DYNAMITE, INC. AND SUBSIDIARY**
 NOTES
          TO
          UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006
  **NOTE
        C – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)**
 
 Revenue
        Recognition (cont.) - recognized when the tickets are used. Management fees-
        revenues from management fees E Pang Gong Theme Park agreement are recognized
        as
        earned over the related period of time of the management services. Hotel
        and
        conference room rentals- revenues are recognized as earned at the conclusion
        of
        the nightly stay or conference room rental.
 
 Comprehensive
        Income (Loss) - The Company adopted Financial Accounting Standards Board
        Statement of Financial Accounting Standards (SFAS) No. 130, *“Reporting
        Comprehensive Income”*, which establishes standards for the reporting and
        display of comprehensive income and its components in the financial
        statements.  There were no items of comprehensive income (loss)
        applicable to the Company during the period covered in the financial
        statements.
  Principles
        of Consolidation - The consolidated financial statements include the
        financial information of the Company and its subsidiaries. The results of
        subsidiaries acquired or disposed of during the period are consolidated from
        or
        to their effective dates of acquisition or disposal, respectively. All material
        intercompany balances and transactions have been eliminated on
        consolidation.
  Loss
        Per Share - Loss per share is reported in accordance with Statement of
        Financial Accounting Standard (SFAS) No. 128. This statement required dual
        presentation of basic and diluted earnings (loss) with a reconciliation of
        the
        numerator and denominator of the loss per share computations. Basic earnings
        per
        share amounts are based on the weighted average shares of common stock
        outstanding. If applicable, diluted earnings per share would assume the
        conversion, exercise or issuance of all potential common stock instruments
        such
        as options, warrants and convertible securities, unless the effect is to
        reduce
        a loss or increase earnings per share. There were no adjustments required
        to net
        loss for the period presented in the computation of diluted loss per
        share.
  Foreign
        Currencies (KAI DA-Foreign Subsidiary) - The assets and liabilities
        denominated in respective functional currencies are translated into United
        States Dollars at the exchange rate as of the balance sheet date. The share
        capital and retained earnings are translated at exchange rates prevailing
        at the
        time of the transactions. Revenues, costs, and expenses denominated in
        respective functional currencies are translated into United States Dollars
        at
        the weighted average exchange rate for the period. The effects of foreign
        currencies translation adjustments are included in the definition of the
        changes
        included in comprehensive income.
 
 Property,
        Plant, and Equipment - Property, plant, and equipment are recorded at cost
        less accumulated depreciation and impairment. Repairs and maintenance
        expenditures, which are not considered improvements and do not extend the
        useful
        life of property, plant, and equipment, are expensed as incurred. The cost
        and
        related accumulated depreciation applicable to property, plant, and equipment
        sold or no longer in service are eliminated from the accounts and any gain
        or
        loss is included in the statement of operations.
  Depreciation
        is calculated to write-off the cost or basis of the property, plant, and
        equipment over their estimated useful lives for the date on which they become
        fully operational and after taking into account their estimated residual
        values
        (salvage value), using the straight-line method, at the following rates per
        year:
  Equipment Straight-line
        for 5 to 20 years with a 5% salvage value
 Furniture Straight-line
        for 5 to 10 years with a 5% salvage value
 Autos Straight-line
        for 5 to 10 years with a 5% salvage value
 
 When
        assets are sold or retired, their costs and accumulated depreciation are
        eliminated from the accounts and any gain or loss resulting from their disposal
        is included in the Statement of Operations.
  10
 *Table
            of Contents*
  **DARK
          DYNAMITE, INC. AND SUBSIDIARY**
 NOTES
          TO
          UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006
  **NOTE
        C – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)**
 
 Property,
        Plant, and Equipment (cont.) - The Company recognizes an impairment loss on
        property, plant, and equipment when evidence, such as the sum of expected
        future
        cash flows (undiscounted and without interest charges), indicates that future
        operations will not produce sufficient revenue to cover the related future
        costs, including depreciation, and when the carrying amount of the asset
        cannot
        be realized through sale. Measurement of the impairment loss is based on
        the
        fair value of the assets.
 
 Fair
        Value of Financial Instruments - The carrying amounts reported in the
        balance sheet for cash, accounts receivable and payable approximate fair
        value
        based on the short-term maturity of these instruments.
  Deferred
        Taxes - Income taxes are provided in accordance with Statement of Financial
        Accounting Standards No. 109 (SFAS No. 109), *“Accounting for Income
        Taxes.”* A deferred tax asset or liability is recorded for all temporary
        differences between financial and tax reporting and net operating loss-carry
        forwards.
 
 Deferred
        tax assets are reduced by a valuation allowance when, in the opinion of
        management, it is more likely than not that, some portion or all of the deferred
        tax asset will not be realized. Deferred tax assets and liabilities are adjusted
        for the effect of changes in tax laws and rates on the date of
        enactment.
 
 Accounts
        Receivable - Accounts deemed uncollectible are written off in the year they
        become uncollectible.  No receivables were deemed uncollectible as of
        June 30, 2007.
 
 Impairment
        of Long-Lived Assets - The Company evaluates the recoverability of its fixed
        assets and other assets in accordance with Statement of Financial Accounting
        Standards No. 144, “*Accounting for the Impairment or Disposal of Long-Lived
        Assets” (“SFAS 144’).* SFAS 144 requires recognition of impairment of
        long-lived assets in the event the net book value of such assets exceeds
        its
        expected cash flows, it is considered to be impaired and is written down
        to fair
        value, which is determined based on either discounted future cash flows or
        appraised values. The Company adopted the statement on inception. No impairments
        of these types of assets were recognized during the period ended December
        31,
        2006 based upon a management review of such assets.
 
 Stock-Based
        Compensation - The Company accounts for stock-based compensation using the
        fair value method of Financial Accounting Standard No. 123R. Common shares
        issued for services rendered by a third party (both employees and non-employees)
        are recorded at the fair value of the shares issued or services rendered,
        whichever is more readily determinable.
 
 Recently
        Issued Accounting Pronouncements - The Company has reviewed all recently
        issued, but not yet effective, accounting pronouncements and do not believe
        the
        future adoption of any such pronouncements may be expected to cause a material
        impact on its financial condition or the results of its operations.
 
 In
        June
        2006, the FASB issued Interpretation No. 48, *Accounting for Uncertainty
        in Income Taxes* (“FIN 48”). FIN 48 clarifies the accounting for uncertainty
        in income taxes recognized in the Company’s financial statements in accordance
        with SFAS No. 109. FIN 48 prescribes a recognition threshold and
        measurement attributes for the financial statement recognition and measurement
        of a tax position taken or expected to be taken in a tax return. The Company
        adopted FIN48 on January 1, 2007. The adoption of FIN 48 did not have an
        effect on the results of operations or financial condition. The Company did
        not
        have any unrecognized tax benefits as of June 30, 2007.
 
 On
        February 15, 2007, the Financial Accounting Standards Board (“FASB”) issued
        Statement of Financial Accounting Standards No. 159, *“The Fair Value
        Option for Financial Assets and Financial Liabilities — Including an Amendment
        of FASB Statement No. 115”*(“SFAS 159”). This standard permits an
        entity to measure.
  11
 *Table
            of Contents*
  **DARK
          DYNAMITE, INC. AND SUBSIDIARY**
 NOTES
          TO
          UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006
  **NOTE
        C – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)**
 
 financial
        instruments and certain other items at estimated fair value. Most of the
        provisions of SFAS No. 159 are elective; however, the amendment to FASB
        No. 115,*“Accounting for Certain Investments in Debt and Equity
        Securities,”* applies to all entities that own trading and
        available-for-sale securities. The fair value option created by SFAS 159
        permits
        an entity to measure eligible items at fair value as of specified election
        dates. The fair value option (a) may generally be applied instrument by
        instrument, (b) is irrevocable unless a new election date occurs, and
        (c) must be applied to the entire instrument and not to only a portion of
        the instrument. SFAS 159 is effective as of the beginning of the first fiscal
        year that begins after November 15, 2007. Early adoption is permitted as of
        the beginning of the previous fiscal year provided that the entity
        (i) makes that choice in the first 120 days of that year,
        (ii) has not yet issued financial statements for any interim period of such
        year, and (iii) elects to apply the provisions of FASB 157. Management is
        currently evaluating the impact of SFAS 159, if any, on the Company’s financial
        statements.
 
 **NOTE
        D – SUPPLEMENTAL CASH FLOW INFORMATION**
 
 Supplemental
        disclosures of cash flow information for the six months ended June 30, 2007
        and
        2006 are summarized as follows:
 
 Cash
        paid during the six months ended June 30, 2007 and 2006 for interest and
        income
        taxes:
 
 2007                      2006
 Income
        Taxes                           $---                      $
        ---
 Interest                                     $---                      $
        ---
 
 **NOTE
        E – INCOME TAXES**
 
 The
        Company has approximately $3,552,772 of federal and state net operating losses
        available that expire in various years through the year 2025.
 
 Due
        to
        operating losses, there was no provision for current federal or state income
        taxes for the six months ended June 30, 2007 and 2006.
 
 Deferred
        income taxes reflect the net tax effects of temporary differences between
        the
        carrying amounts of assets and liabilities for financial reporting purposes
        and
        the amount used for federal and state income tax purposes.
 
 The
        Company’s deferred tax asset at June 30, 2007 consists of net operating loss
        carry-forward calculated using federal and state effective tax rates equating
        to
        approximately $1,208,000 less a valuation allowance in the amount of $1,208,000.
        Because of the Company’s lack of earnings history, the deferred tax asset has
        been fully offset by a valuation allowance. The valuation allowance increased
        (decreased) by approximately $230,000 compared to the same period in
        2006.
 
 Utilization
        of the net operating losses may be subject to certain annual limitations
        due to
        changes in control. This may result in the expiration of net operating losses
        before full utilization.
  12
 *Table
            of Contents*
 **DARK
          DYNAMITE, INC. AND SUBSIDIARY**
 NOTES
          TO
          UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006
 **NOTE
        E – INCOME TAXES (CONT.)**
 
 The
        Company’s total deferred tax asset as of June 30, 2007 is as
        follows:
  2007
                
                
                2006Net
                    operating loss carry-forwards
                
                $
                1,208,000
                
                
                $
                978,000Valuation
                    Allowance
                
                
                (1,208,000
                )
                
                
                (978,000
                )$
                -0-
                
                
                $
                -0-Tax
                    Rate
                
                
                34
                %
                
                
                34
                %
  **NOTE
        F – PAYABLES, COMMITMENTS AND CONTIGENCIES**
 
 As
        of
        June 30, 2007, the Company had a Payable outstanding in the amount of $242,899,
        of which $136,500 in connection with the litigation (see note H).
 
 **NOTE
        G - GOING CONCERN**
 
 As
        shown
        in the accompanying unaudited financial statements, the Company has a working
        capital deficit and small cash flow from operations that have placed substantial
        doubt as to whether the Company can continue as a going concern. The ability
        of
        the Company to continue as a going concern is dependent on developing
        operations, increasing revenues, and obtaining new capital. Management has
        enacted the following plan to address these issues: (1) obtain funding from
        new
        investors to alleviate the Company's capital deficiency, (2) refinance existing
        debt on assets, (3) increase the revenues by launching new attraction in
        the
        theme park.
  **NOTE
        H – LITIGATION**
 
 **Securities
        and Exchange Commission v. David M. Wolfson, et al.** On October 16,
        2004 a civil complaint was filed by the Securities and Exchange Commission
        in
        which Dark Dynamite, Inc. was named as a respondent. The Company's former
        president Gino Carlucci was also named as a respondent. The suit was filed
        in
        the United States District Court for the District of Utah and bears the docket
        number 2:03CV00914DAK and the style of the case is: “Securities and Exchange
        Commission v. David M. Wolfson; NuWay Holdings, Inc., a Nevada corporation;
        Momentous Group, LLC, a Utah limited liability company; Leeward Consulting
        Group, LLC, a Utah limited liability company; Sukumo Limited, a company
        incorporated in the British Virgin Islands (a.k.a. Sukumo Group, Ltd., Fujiwara
        Group, First Chartered Capital Corporation, First Colonial Trust, First China
        Capital and International Investment Holding); Michael Sydney Newman (A.K.A.
        Marcus Wiseman); Stem Genetics, Inc., a Utah corporation; Howard H. Robertson;
        Gino Carlucci; G & G Capital, LLC an Arizona and Utah limited liability
        company; F10 Oil and Gas Properties, Inc.; Jon H. Marple; Mary E. Blake;
        Jon R.
        Marple; Grateful Internet Associates, LLC, a Colorado limited liability company;
        Diversified Financial Resources Corporation, a Delaware corporation; John
        Chapman; Valesc Holdings, Inc., a New Jersey corporation; Jeremy D. Kraus;
        Samuel Cohen; Dark Dynamite, Inc., (The Company) a Nevada corporation. The
        complaint alleges that the Company failed to accurately and fully disclose
        the
        nature of its relationship to The Sukumo Group, Inc., including the failure
        of
        Sukumo to complete the purchase of the shares and alleges that Sukumo acted
        as a
        selling agent for the Company. The complaint also faults The Sukumo Group
        Inc.'s
        actions with regard to the sale of common stock to off shore purchasers for
        failing to disclose the interest that Sukumo had in each sale, reporting
        that it
        was taking a 1-2% commission on the sale rather than keeping 70% or more
        of the
        proceeds of each transaction. The Company filed a motion to dismiss the
        complaint based upon a lack of jurisdiction and the failure of the complaint
        to
        adequately set forth the actions of the Company which form the basis of a
        cause
        of action against the Company that was denied by the Court. The Company filed
        an
        answer disputing the allegations of the complaint and has participated in
        some
        pre-trial discovery. The Company and the Government have agreed upon the
        terms
        of a settlement, the terms of which provide for the Company to pay the sum
        of
        $30,000 to the SEC. The SEC is currently reviewing the terms of a proposed
        consent decree in which the Company would neither admit or deny the claims
        made
        in the complaint and be subject to an injunction prohibiting future violations
        of the securities laws and regulations, this review has been pending for
        more
        than 18 months with no report of expected action on the proposal and without
        any
        change in the status of the litigation impacting the Company.
  The
        Company believes that adequate provision has been made for all other judgments
        that may be awarded against the Company. None of the other lawsuits have
        yet
        been resolved.
  13
 *Table
            of Contents*
 **DARK
          DYNAMITE, INC. AND SUBSIDIARY**
 NOTES
          TO
          UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 FOR
          THE
          SIX MONTHS ENDED JUNE 30, 2007 AND 2006
 **NOTE
        I – RELATED PARTY TRANSACTIONS**
 
 The
        Company's subsidiary Kai Da signed a management contract with Shanxi Qin
        E'Pang
        Tourism Development Co., Ltd. According to the contract, the Company will
        manage
        the A'Pang palace tourist, hotel, and restaurant from August 1, 2005 to July
        31,
        2010 and hold 90% of the net profits. The remaining 10% of the net profit
        will
        be returned to Shanxi Qin E'Pang Tourism Development Co., Ltd. In September
        2005, the Company purchased the fixed assets from Shanxi Qin E'Pang Tourism
        Development Co., Ltd. by executing a financial leasing contract.
 
 **NOTE
        J - LOANS FROM SHAREHOLDER**
 
 The
        shareholder paid all necessary overseas consulting and advising fees, lawyer
        fees, and accounting fees from period to period out of his own personal bank
        accounts in the United States due to the strict laws and regulations imposed
        by
        the Chinese government on out-going foreign currency wire transfers. The
        amount
        outstanding as of June 30, 2007 was $12,691. The loan from shareholder has
        the
        option to convert in two years into common stock of the Company at the market
        price on the date the Company incurred the loan. The shareholder loan is
        not
        evidenced by a promissory note, but rather is an oral agreement between the
        shareholder and the Company


14
 *Table
          of Contents*




**ITEM
      2.** **MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
      CONDITION AND RESULTS OF OPE****RATION**





GENERAL
      DESCRIPTION OF BUSINESS





As
      used in this Quarterly Report, the
      terms "we", "us", "our," the “Registrant,” “DKDY” and the "Company" means, Dark
      Dynamite, Inc., a Nevada corporation, formerly known as NCI Holdings, Inc.,
      Vector Holding, Inc., and prior to June 26, 2002, Vector Aeromotive Corporation.
      These terms also refer to our subsidiary corporation, Shanxi Kai Da Lv You
      Gu
      Wen You Xian Gong Si ("Kai Da"), a corporation organized under the laws of
      the
      Peoples’ Republic of China (“Kai Da”) acquired in August 2005.




After
      the
      acquisition of Kai Da, management changed our primary business into theme park
      management and travel related services. We contract and operate the Theme Park
      of Qin E Pang Gong (“Theme Park”) through Shanxi Kai Da Lv You Gu Wen You Xian
      Gong Si (“Kai Da”), our wholly owned subsidiary in China. The Theme Park was
      built up at the historical address of E Pang Gong, the most prestigious and
      largest palace in Chinese history built for Qin Shi Huang, the first emperor
      in
      the Qin dynasty over 2,200 years ago. E Pang Gong was burned down during the
      war
      and became a legend as well as the subject of numerous historical books. In
      1994, the historical address of E Pang Gong was appraised by United Nations
      Educational, Scientific and Cultural Organization ("UNESCO") as one of the
      wonders in the ancient world due to the size of the palace and the degree of
      preservation. The current theme park was built imitating the original palace
      based on historical records and legends, covering approximately 5.59 million
      square feet consisting of several building structure, including the Front
      Palace, Qihe River, Magnetic Gate, Heaven Tower, Earth Temple, Lan-Chi Palace
      and the Shang-Lin Garden. Management believes it is a significant achievement
      to
      be able to display such a famous and grand palace to the domestic and
      international communities. It is believed to be one of the more important
      historical sites in China.





In
      connection with our Theme Park management, we have developed three primary
      business segments:




*
            Theme
                park admission and management*
            Resorts*
            Movie
                and television revenues





More
      information about our business can be found on the corporate website at
http://www.qinepanggong.com.





RESULTS
      OF OPERATIONS FOR THE THREE AND SIX MONTHS JUNE 30, 2007





FORWARD
      LOOKING STATEMENTS




The
      information herein contains certain forward looking statements within the
      meaning of §27A of the Securities Act of 1933, as amended and §21E of the
      Securities Exchange Act of 1934, as amended, which are intended to be covered
      by
      the safe harbors created thereby. Investors are cautioned that all forward
      looking statements involve risks and uncertainty, including without limitation,
      the ability of us to continue its current expansion strategy, changes in the
      fashion and clothing markets, labor and employee benefits, as well as general
      market conditions, competition and pricing. Although we believe that the
      assumptions underlying the forward looking statements contained herein are
      reasonable, any of the assumptions could be inaccurate, and therefore, there
      can
      be no assurance that the forward looking statements included in this Form 10-QSB
      will prove to be accurate. In view of the significant uncertainties inherent
      in
      the forward looking statements included herein, the inclusion of such
      information should not be regarded as a representation by us or any other person
      that our objectives and plans will be achieved.




15
 *Table
          of Contents*





CRITICAL
      ACCOUNTING POLICIES





*Revenue
      Recognition*





The
      Company's policy is to recognize income when it is earned. Kai Da's revenue
      is
      derived from ticket sales, and hotel and restaurant income. Revenues are booked
      net of any cash discounts. If any material contingencies are present,
      revenue recognition is delayed until all material contingencies are eliminated.
      Material contingencies are circumstances in which there are any potential
      uncertainties as to the completion of the revenue process being complete.
      Further, no revenue is recognized unless collection of the applicable
      consideration is probable. Probable collection is determined at the time
      collection occurs or is more than reasonably possible it will be collected.
      Retail store sales of products- revenue is recognized when sales are made.
      They
      are paid by cash or credit card. Park admissions- revenues from advance theme
      park ticket sales are recognized when the tickets are used. Management fees-
      revenues from management fees E Pang Gong Theme Park agreement are recognized
      as
      earned over the related period of time of the management services. Hotel and
      conference room rentals- revenues are recognized as earned at the conclusion
      of
      the nightly stay or conference room rental.





*Property,
      Plant, and Equipment*





Property,
      plant, and equipment are recorded at cost less accumulated depreciation and
      impairment. Repairs and maintenance expenditures, which are not considered
      improvements and do not extend the useful life of property, plant, and
      equipment, are expensed as incurred. The cost and related accumulated
      depreciation applicable to property, plant, and equipment sold or no longer
      in
      service are eliminated from the accounts and any gain or loss is included in
      the
      statement of operations.




Depreciation
      is calculated to write-off the cost or basis of the property, plant, and
      equipment over their estimated useful lives for the date on which they become
      fully operational and after taking into account their estimated residual values
      (salvage value), using the straight-line method, at the following rates per
      year:




Equipment Straight-line
      for 5 to 20 years with a 5% salvage value


Furniture Straight-line
      for 5 to 10 years with a 5% salvage value


Autos Straight-line
      for 5 to 10 years with a 5% salvage value





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




The
      Company recognizes an impairment loss on property, plant, and equipment when
      evidence, such as the sum of expected future cash flows (undiscounted and
      without interest charges), indicates that future operations will not produce
      sufficient revenue to cover the related future costs, including depreciation,
      and when the carrying amount of the asset cannot be realized through sale.
      Measurement of the impairment loss is based on the fair value of the
      assets.





Revenues





Gross
      revenues for three and six months
      ended June 30, 2007 were $169,168 and $297,553, respectively, derived from
      ticket sales, and hotel and restaurant income. The decreases by $145,008 and
      $203,612, compared to gross revenues of $314,176 and $501,165 for the same
      periods ended June 30, 2006, respectively, were due primarily to the
      consummation of the contracts with some travel agents in February 2007, pursuant
      to which the travel agents brought tourists to our theme park for the discounted
      price. Due to the different peak season timing for the theme park and most
      of
      our tours are a one-day trip to the theme park, the revenue appears to be
      diversified. The theme park is not the only resource of revenue. The peak season
      for the theme park tickets is from March to October, compared to the peak season
      for the resorts is the first quarter.We expect sales to increase
      during the
      second half year of 2007 as we move toward developing our business plan.
      Additionally, we expect to generate new revenues in 2007 from the launch of
      our
      dinner show project.





We
      had no
      revenues earned from movie and television for the three and six months ended
      June 30, 2007 and 2006.




16
 *Table
          of Contents*





Income
      / Loss





Net
      losses for the three and six months ended June 30, 2007 were $41,308 and
      $120,523, respectively, compared to net income of $43,717 and $51,077 for the
      same period ended June 30, 2006, respectively. The net losses for the three
      and
      six months ended June 30, 2007 were due primarily to the decrease in sales
      revenues and increase in selling, general and administrative
      expenses.




We
      expect
      to incur losses or keep breakeven in fiscal year 2007 until traffic is increased
      to the Theme Park and product sales increase. There can be no assurance that
      we
      will achieve or maintain profitability, or that any revenue growth will take
      place in the future.




Expenses





Selling,
      general and administrative expenses were due primarily to the Theme Park
      operation, which were $174,035 and $355,001 for the three and six months ended
      June 30, 2007, respectively, compared to selling, general and administrative
      expenses of $238,718 and $379,744 for the same periods ended June 30, 2006,
      respectively. The operating expenses during the three and six months ended
      June
      30, 2007 included non-cash consulting expenses resulting fromthe issuance of 2,370,000
      shares of
      common stock for services. The shares were valued based on the market price
      on
      the date of the stock grant or the specific terms of the applicable consulting
      agreements, resulting in total expenses of $428,500 for services rendered booked
      pro rata within the relative service periods completed as of June 30, 2007,
      which were $15,452 and $30,904 for the three and six months ended June 30,
      2007,
      respectively.





Cost
      of Sales





Cost
      of
      sales included expenses directly related to delivering our product or services.
      Travel agents' commissions and direct labor would be examples of cost of sales
      items. During the three and six months ended June 30, 2007, we had $35,634
      and
      $63,129 in cost of sales, respectively, compared to cost of sales of $49,109
      and
      $84,833 for the same periods ended June 30, 2006. The decrease in cost of sales
      during the first six months of 2007 was due primarily to the decrease in sales
      revenues. Cost of sales as a percentage of sales was approximately 21.1% and
      21.2% for the three and six months ended June 30, 2007,
      respectively.




Impact
      of Inflation and Foreign Exchange Rate





We
      believe that inflation and foreign exchange rate have had a negligible effect
      on
      operations during this period. We believe that we can offset inflationary
      increases in the cost of sales by increasing sales and improving operating
      efficiencies.





Liquidity
      and Capital Resources





Cash
      flows used in operating activities were $4,865 and $58,741 for the six months
      ended June 30, 2007 and 2006, respectively. Negative cash flows from operations
      in the first six months of 2007 were primarily due to the net loss of $120,523,
      partially offset by decrease in prepayment by $14,684, the increase in accounts
      payable and other payable, which were $24,571 and $31,991,
      respectively.





Cash
      flows used in investing activities were $467 for the six months ended June
      30,
      2007 due primarily to the purchase of equipment. Cash flows provided by
      investing activities were $492,992 for the six months ended June 30, 2006 due
      primarily to the disposal of fixtures and equipment in Black Chandelier and
      the
      increase in paid in capital of $387,320.




17
 *Table
          of Contents*





Cash
      flows provided by financing activities were $5,225 for the six months ended
      June
      30, 2007 due primarily to shareholder loan, compared to cash flows of $323,964
      used in financing activities for the six months ended June 30, 2006, which
      were
      attributable to the repayments of notes payable.





We
      have
      funded our cash needs for the six months ended June 30, 2007 with a series
      of
      debt and equity transactions. We project that we will need additional capital
      to
      fund operations over the next 12 months. We anticipate we will need an
      additional $250,000 in working capital during 2007 and $100,000 for the two
      years thereafter.





Overall,
      we have funded our cash needs from inception through June 30, 2007 with a series
      of debt and equity transactions, primarily with related parties. If we are
      unable to receive additional cash from our related parties, we may need to
      rely
      on financing from outside sources through debt or equity transactions. Our
      related parties are under no legal obligation to provide us with capital
      infusions. Failure to obtain such financing could have a material adverse effect
      on operations and financial condition.




We
      had
      cash of $16,845 on hand and working capital deficit of $169,904 as of June
      30,
      2007. Currently, we do not have enough cash to fund our operations for about
      six
      months. This is based on our small cash on hand, working capital deficit, and
      projected revenues. Also, if the projected revenues fall short of needed capital
      we may not be able to sustain our capital needs. We will then need to obtain
      additional capital through equity or debt financing to sustain operations for
      an
      additional year. Our current level of operations would require capital of
      approximately $250,000 to sustain operations through year 2007 and approximately
      $100,000 per year thereafter. Modifications to our business plans may require
      additional capital for us to operate. For example, if we are unable to raise
      additional capital in the future we may need to curtail our number of product
      offers or limit our marketing efforts to the most profitable geographical areas.
      This may result in lower revenues and market share for us. In addition, there
      can be no assurance that additional capital will be available to us when needed
      or available on terms favorable to us.




On
      a
      long-term basis, liquidity is dependent on continuation and expansion of
      operations, receipt of revenues, and additional infusions of capital and debt
      financing. Our current capital and revenues are insufficient to fund such
      expansion. If we choose to launch such an expansion campaign, we will require
      substantially more capital. The funds raised from this offering will also be
      used to market our products and services as well as expand operations and
      contribute to working capital. However, there can be no assurance that we will
      be able to obtain additional equity or debt financing in the future, if at
      all.
      If we are unable to raise additional capital, our growth potential will be
      adversely affected and we will have to significantly modify our
      plans.




Demand
      for
      the products and services will be dependent on, among other things, market
      acceptance of our theme park, Chinese entertainment market in general, and
      general economic conditions, which are cyclical in nature. Inasmuch as a major
      portion of our activities is the receipt of revenues from the sales of our
      products, our business operations may be adversely affected by our competitors
      and prolonged recession periods.




Our
      success
      will be dependent upon implementing our plan of operations and the risks
      associated with our business plans. We are engaged in Theme Park management
      and
      related entertainment shows. We plan to strengthen our position in these
      markets. We also plan to expand our operations through aggressively marketing
      our Theme Park and our concept.****





Ability
      to Continue as a Going Concern




As
      shown
      in the accompanying unaudited financial statements, we have a working capital
      deficit and small cash flow from operations that have placed substantial doubt
      as to whether we can continue as a going concern. Our ability to continue as
      a
      going concern is dependent on developing operations, increasing revenues, and
      obtaining new capital. Management has enacted the following plan to address
      these issues: (1) obtain funding from new investors to alleviate our capital
      deficiency, (2) refinance existing debt on assets, (3) increase the revenues
      by
      launching new attraction in the theme park.




18
 *Table
          of Contents*




**ITEM
      3. CONTROLS AND PROCEDURES.**




We
      maintain
      disclosure controls and procedures designed to ensure that information required
      to be disclosed in reports filed under the Securities Exchange Act of 1934
      (“Exchange Act”) is recorded, processed, summarized and reported within the
      specified time periods. Our Chief Executive Officer and its Chief Financial
      Officer (collectively, the “Certifying Officers”) are responsible for
      maintaining our disclosure controls and procedures. Our controls and procedures
      are designed to provide reasonable assurance that information required to be
      disclosed by the issuer in the reports that it files or submits under the
      Exchange Act are recorded, processed, summarized and reported within the time
      periods specified in the Commission’s rules and forms.




As
      of the end
      of the period covered by this report, the Certifying Officers evaluated the
      effectiveness of our disclosure controls and procedures. Based on the
      evaluation, the Certifying Officers concluded that our disclosure controls
      and
      procedures were effective to provide reasonable assurance that information
      required to be disclosed by us in the reports that we file or submit under
      the
      Exchange Act is recorded, processed, summarized and reported, within the time
      periods specified in the applicable rules and forms, and that it is accumulated
      and communicated to our management, including the Certifying Officers, as
      appropriate to allow timely decisions regarding required
      disclosure.





**PART
      II. OTHER INFORMATION**





**Item
      1. Legal Proceedings**





Securities
      and Exchange Commission v. David M. Wolfson, et al. On October 16, 2003 a
      civil complaint was filed by the Securities and Exchange Commission in which
      NCI
      Holdings, Inc. (a.k.a. Dark Dynamite, Inc.) was named as a respondent. Our
      former president Gino Carlucci was also named as a respondent. The suit was
      filed in the United States District Court for the District of Utah and bears
      the
      docket number 2:03CV00914DAK and the style of the case is: Securities and
      Exchange Commission v. David M. Wolfson; NuWay Holdings, Inc., a Nevada
      corporation; Momentous Group, LLC, a Utah limited liability company; Leeward
      Consulting Group, LLC, a Utah limited liability company; Sukumo Limited, a
      company incorporated in the British Virgin Islands (a.k.a. Sukumo Group, Ltd.,
      Fujiwara Group, First Chartered Capital Corporation, First Colonial Trust,
      First
      China Capital and International Investment Holding); Michael Sydney Newman
      (A.K.A. Marcus Wiseman); Stem Genetics, Inc., a Utah corporation; Howard H.
      Robertson; Gino Carlucci; G & G Capital, LLC an Arizona and Utah limited
      liability company; F10 Oil and Gas Properties, Inc.; Jon H. Marple; Mary E.
      Blake; Jon R. Marple; Grateful Internet Associates, LLC, a Colorado limited
      liability company; Diversified Financial Resources Corporation, a Delaware
      corporation; John Chapman; Valesc Holdings, Inc., a New Jersey corporation;
      Jeremy D. Kraus; Samuel Cohen; NCI Holdings, Inc., a Nevada corporation. The
      complaint alleges that NCI failed to accurately and fully disclose the nature
      of
      NCI's relationship to The Sukumo Group, Inc., including the failure of Sukumo
      to
      complete the purchase of the shares and alleges that Sukumo acted as a selling
      agent for NCI. The complaint also faults The Sukumo Group Inc.'s actions with
      regard to the sale of common stock to off-shore purchasers for failing to
      disclose the interest that Sukumo had in each sale, reporting that it was taking
      a 1-2% commission on the sale rather than keeping 70% or more of the proceeds
      of
      each transaction. We filed a motion to dismiss the complaint based upon a lack
      of jurisdiction and the failure of the complaint to adequately set forth our
      actions, which form the basis of a cause of action against us that was denied
      by
      the Court. We filed an answer disputing the allegations of the complaint and
      have participated in some pre-trial discovery. The Government and the Defendant
      had agreed upon the terms of a settlement, the terms of which provided for
      us to
      pay the sum of $30,000 to the SEC. However the SEC has decided to reject the
      settlement and moved forward on a summary judgment.





Dark
      Dynamite, Inc. and Diversified Holdings X, Inc. v. Allen E. Weintraub and Miami
      Venture Capital, Inc. Civil complaint filed in the Third District Court of
      the State of Utah, Salt Lake County, Civil No. 050905249. A default judgment
      was
      entered against the defendants on March 15, 2006 after a hearing before a Utah
      court, the judgment awarded damages in the sums of $267,892, and an award for
      costs and attorneys fees has not yet been calculated. Mr. Weintraub had
      previously filed a claim in Florida federal court, that case has been dismissed
      and transferred to Utah.  There have been no filings on the case since
      January of 2007.




19
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          of Contents*




**Item
      2. Changes in Securities and Use of Proceeds**




None.




**Item
      3. Defaults Upon Senior Securities**




None.




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




None.




**Item
      5. Other Information**




None.




**Item
      6. Exhibits And Reports On Form 8-K**





(1)
            Exhibits:
                Exhibits required to be attached by Item 601 of Regulation S-B are
                listed
                in the Index to Exhibits Beginning on page 8 of this Form 10-QSB,
                which is
                incorporated herein by reference.





Reports
      on Form 8-K filed in the second quarter of 2007





(1)
            On
                June 20, 2007, we filed an amendment to Form 8-K, dated October 12,
                2005,
                regarding the full disclosure about the reverse merger with Kai Da
                and the
                revised financial statements.




20
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          of Contents*




**SIGNATURES**




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




**DARK
                DYNAMITE, INC.**Date:
                August 15, 2007
            By:
            /s/ Ming
                LeiMing
                Lei
              President
                and CEO





Date:
                August 15, 2007
            By:
            /s/ Xiaojun
                WangXiaojun
                Wang
              Chief
                Financial Officer






21
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          of Contents*




**INDEX
      TO EXHIBITS**




**Exhibit
                No.**
            **Description**31.1
            Certification
                of Chief Executive
                Officer.31.2
            Certification
                of Chief Financial
                Officer.32.1
            Statement
                required by 18 U.S.C. Section 1350, as adopted
                pursuant to section 906 of the Sarbanes-Oxley Act of
                2002.32.2
            Statement
                required by 18 U.S.C. Section 1350, as adopted
                pursuant to section 906 of the Sarbanes-Oxley Act of
                2002.











22




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