**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,
                2006**





**[
                 ]**
            **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
                [  ]




Number
      of
      shares of common stock outstanding as of May 19, 2006:  45,089,068


Number
      of
      shares of preferred stock outstanding as of May 19, 2006:  3,340,500














**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
            11ITEM
                3CONTROLS
                AND PROCEDURES
            13**PART
                II. OTHER INFORMATION**ITEM
                1.LEGAL
                PROCEEDINGS
            15ITEM
                2.CHANGES
                IN SECURITIES AND USE OF PROCEEDS
            15ITEM
                5.OTHER
                INFORMATION
            15ITEM
                6.EXHIBITS
                AND REPORTS ON FORM 8-K
            15SIGNATURES
            16INDEX
                TO EXHIBITS
            17




3




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







**INDEX
                TO INTERIM FINANCIAL STATEMENTS****Page**Consolidated
                Unaudited Condensed Balance Sheet June 30, 2006
            5Consolidated
                Unaudited Condensed Consolidated Statements of Operations - For the
                Three
                Months and Six Months Ended June 30, 2006
            6Consolidated
                Unaudited Condensed Statements of Cash Flows - For the Six Months
                Ended
                June 30, 2006
            7Notes
                to Consolidated Unaudited Condensed Financial Statements
            8-10




4


**Dark
                  Dynamite, Inc. and Subsidiary****Balance
                  Sheet****As
                  of June 30, 2006****ASSETS****Current
                  assets**Cash
                  and cash equivalents
              
              $
              116,193Accounts
                  receivable
              
              
              3,096Inventory
              
              
              15,976Other
              
              
              3,276**Total
                  current assets**
              
              
              138,541**Fixed
                  Assets**Property,
                  plant, and equipments
              
              
              623,620Accumulated
                  depreciation
              
              
              (82,179
              )**Total
                  fixed assets**
              
              
              541,441**Total
                  assets**
              
              $
              679,982**LIABILITIES
                  AND EQUITY****Current
                  liabilities**Accounts
                  payable and accrued liabilities
              
              $
              190,423Due
                  to shareholder
              
              
              78,299Taxes
                  payable
              
              
              12,759Other
              
              
              63,124**Total
                  current liabilities**
              
              
              344,604Redeemable
                  Preferred Series A stock (par $.01, 5,000,000
              
              $
              33,405authorized,
                  3,340,500 issued and outstanding)**Equity**Common
                  stock (par $.0001, 250,000,000 authorized,
              
              $
              4,50945,089,068
                  issued and outstanding)Paid
                  in capital
              
              
              3,173,178Accumulated
                  other comprehensive income
              
              
              599Retained
                  deficit
              
              
              (2,876,314
              )**Total
                  equity**
              
              
              301,973**Total
                  liabilities and equity**
              
              $
              679,982




5


**Dark
                  Dynamite, Inc. and Subsidiary****Statement
                  of Operations****For
                  the three months and six months ended June 30,
                  2006**Three
                  months ended
              
              Six
                  months endedJune
                  30, 2006
              
              June
                  30, 2006REVENUES:Revenues
              
              $
              314,176
              
              $
              501,165Cost
                  of revenues
              
              
              49,109
              
              
              84,833GROSS
                  PROFIT
              
              
              265,067
              
              
              416,332OPERATING
                  EXPENSES:Selling,
                  general, and administrative
              
              
              238,718
              
              
              379,744TOTAL
                  OPERATING EXPENSES
              
              
              238,718
              
              
              379,744OPERATING
                  INCOME
              
              
              26,349
              
              
              36,589OTHER
                  (EXPENSES):Interest
                  expenses
              
              
              (401
              )
              
              (564
              )TOTAL
                  OTHER (EXPENSES)
              
              
              (401
              )
              
              (564
              )INCOME
                  FROM OPERATIONS
              
              
              25,949
              
              
              36,024INCOME
                  TAXES
              
              
              9,553
              
              
              12,269INCOME
                  AFTER INCOME TAXES
              
              
              16,396
              
              
              23,755GAIN
                  ON DISPOSAL OF SUBSIDIARY
              
              
              27,322
              
              
              27,322NET
                  INCOME
              
              $
              43,718
              
              $
              51,077Net
                  Loss Per Common ShareBasic
                  & Fully Diluted
              
              
              **
              
              
              **Weighted
                  Average CommonShares
                  Outstanding
              
              
              45,089,068
              
              
              45,047,679**
                  Less than $.01




6


**Dark
                  Dynamite, Inc. and Subsidiary****Statement
                  of Cash Flows****For
                  the six months ended June 30, 2006**CASH
                  FLOWS FROM OPERATING ACTIVITIES:Net
                  Income after income tax
              
              $
              51,077Adjustments
                  to reconcile net income to net cashprovided
                  by (used in) operating activities:Depreciation
              
              
              33,164Accounts
                  receivable
              
              
              56,491Prepaid
                  and other assets
              
              
              145Inventory
              
              
              73,370Accounts
                  payable and accrued liabilities
              
              
              (312,501
              )Other
                  payable
              
              
              33,513Tax
                  payable
              
              
              6,000NET
                  CASH (USED IN) OPERATING ACTIVITIES
              
              
              (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
              
              
              387,320NET
                  CASH PROVIDED BY INVESTING ACTIVITIES
              
              
              492,992CASH
                  FLOWS FROM FINANCING ACTIVITIES:Note
                  payable
              
              
              (402,263
              )Proceeds
                  from shareholder loan
              
              
              78,299NET
                  CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
              
              
              (323,964
              )Foreign
                  currency translation adjustment
              
              
              599NET
                  INCREASE IN CASH AND CASH EQUIVALENTS
              
              
              110,886CASH
                  AND CASH EQUIVALENTS:Beginning
                  of period
              
              
              5,307End
                  of period
              
              $
              116,193SUPPLEMENTARY
                  CASH FLOW INFORMATION OFCommon
                  stock issued for services
              
              $
              -Cash
                  paid for income taxes
              
              $
              4,052Cash
                  paid for interest
              
              $
              -




7




**DARK
      DYNAMITE, INC. AND SUBSIDIAR** **IES**


NOTES
      TO
      THE FINANCIAL STATEMENTS


FOR
      THE
      THREE MONTHS ENDED MARCH 31, 2006







NOTE
      1 -
      MANAGEMENT’S USE OF ESTIMATES





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
      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 audited consolidated financial
      statements and the related notes thereto contained in our Annual Report on
      Form
      10-KSB for the year ended December 31, 2006.





NOTE
      2 -
      PRINCIPLES OF CONSOLIDATION





The
      condensed consolidated financial statements include the financial statements
      of
      Dark Dynamite Inc. and its subsidiary and have been prepared in accordance
      in
      accordance with generally accepted accounting principles in the United States
      of
      America (“US GAAP”). All significant inter-company balances and transactions
      have been eliminated in consolidation.





The
      interest of the Company in Kai Da was acquired by means of exchange for shares
      in the Company pursuant to a Plan of Exchange, dated August 29, 2006, and the
      First Amendment to Plan of Exchange, dated September 29, 2006. The transaction
      is considered to be transfer between entities under common control, within
      the
      meaning of US GAAP. Accordingly, the assets and liabilities transferred have
      been accounted for at historical cost or at its “fair value” at the date of the
      merger and have been included in the foregoing financial statements as of the
      beginning of the periods presented.





NOTE 3
      - 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 - revenue is recognized when sales are made. They are paid
      by
      cash or credit card.





NOTE 4
      - 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.




8


**DARK
        DYNAMITE, INC. AND SUBSIDIAR** **IES**
 NOTES
        TO
        THE FINANCIAL STATEMENTS
 FOR
        THE
        THREE MONTHS ENDED MARCH 31, 2006


NOTE 5
      - 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 as a separate
      component of accumulated other comprehensive income.





NOTE 6
      - 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.





NOTE 7
      - PREFERRED STOCK





During
      the six months ended June 30, 2006, 59,500 shares of preferred stock were
      converted into 1,487,500 common shares by the Company's consultants and former
      owner, resulting in a balance of 3,340,500 preferred shares as of June 30,
      2006.




9


**DARK
        DYNAMITE, INC. AND SUBSIDIAR** **IES**
 NOTES
        TO
        THE FINANCIAL STATEMENTS
 FOR
        THE
        THREE MONTHS ENDED MARCH 31, 2006


NOTE 8
      - PAYABLES, COMMITMENTS AND CONTIGENCIES





As
      of
      December 31, 2005, the Company’s subsidiary Kai Da had a Payable outstanding in
      the amount of $402,263 to a related party (see note 10). The payable is set-up
      as a financial purchase/lease contract for the acquisition of the fixed assets.
      Payments are to be made in installments over five years. Future total payments
      by year will be made as follows:





2006         
      100,564.00


2007          100,564.00


2008         
      100,564.00


2009 100,571.00





Total       
      $402,263.00


=========





Land
      and
      building was provided rent-free to the Company. The Company had no other
      commitments or contingencies.





As
      of
      June 30, 2006, the note payable of $402,263 was fully paid.




NOTE 9
      - GOING CONCERN





As
      shown
      in the accompanying audited financial statements, the Company has a deficit
      book
      value, has
      received numerous liens from related parties, has all of its assets and common
      stock fully pledged, has a
      negative 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 a plan to raise
      capital and enter strategic acquisitions.




NOTE 10
      - 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.




10


**DARK
        DYNAMITE, INC. AND SUBSIDIAR** **IES**
 NOTES
        TO
        THE FINANCIAL STATEMENTS
 FOR
        THE
        THREE MONTHS ENDED MARCH 31, 2006


NOTE
      11 -
      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 (see Note
      7).





As
      of
      June 30, 2006, the Company recorded due to shareholder of $78,299.




NOTE
      12 -
      DISPOSAL OF SUBSIDIARY





On
      April
      1, 2006, the Company executed an Agreement (the “Agreement”) between the Company
      and Diversified Holdings X, Inc. ("DHX"), a Nevada corporation, pursuant to
      which the Company agreed to sell its ownership of Black Chandelier, Inc. (“BCI”)
      to DHX. The gains on disposal of subsidiary are as follows:





June
                30, 2006(Unaudited)(Loss)
                from investment in BCI
            
            $
            (9,900
            )Write
                off the liabilities due from subsidiary to
                parent
            
            
            37,222Gains
                on disposal of subsidiaries
            
            $
            27,322





11




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




As
      used
      in this Quarterly Report, the terms "we", "us", "our," the “Registrant,” “DDI”
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 the Company’s
      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 the Company's 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 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 the Company’s business can be found on the corporate website
      at http://www.qinepanggong.com.





RESULTS
      OF OPERATIONS FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30,
      2006.





Revenues





Gross
      revenues for three months and six months ended June 30, 2006 were $314,176
      and
      501,165, respectively, due primarily from ticket and product sales. There were
      no comparable operations during the same period in 2005. We expect sales to
      increase during 2006 as we move toward developing our business plan.
      Additionally, we expect to generate new revenues in 2006 from the launch of
      our
      dinner show project.





Income
      / Loss





Net
      income for the three months and six months ended June 30, 2006 were $43,718
      and
      51,078, respectively, including the gains on disposal of Black Chandelier,
      Inc.
      of $27,322 in the second quarter of 2006. Income from operations for the three
      months and six months ended June 30, 2006 were $25,949 and $36,024,
      respectively, primarily attributable to the decrease in cost of revenues and
      the
      decrease in operating expenses. There were no comparable operations during
      the
      same period in 2005 due to the inception in August 2005.




The
      Company expects to incur losses or keep breakeven in fiscal year 2006 until
      traffic is increased to the Theme Park and product sales increase. There can
      be
      no assurance that the Company will achieve or maintain profitability, or that
      any revenue growth will take place in the future.




12




Expenses





Selling,
      general and administrative expenses for the three months and six months ended
      June 30, 2006 were $238,718 and $379,744, respectively, which were due primarily
      to the Theme Park operation.





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 months and six months ended June 30, 2006, we had
      $49,109 and $84,833 in cost of sales, respectively. Cost of sales as a
      percentage of sales were approximately 16% and 17% for the three months and
      six
      months ended June 30, 2006.





Impact
      of Inflation





We
      believe that inflation has 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 $58,741 for the six months ended June
      30, 2006. Negative cash flows from operations were primarily due to the
      repayment of $312,501 for accounts payable and increases in accounts receivable,
      partially offset by the net income, the decrease in accounts receivable and
      inventory for the year.





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





Cash
      flows used in financing activities were $323,964 for the six months ended June
      30, 2006. The Company has an outstanding payable in the amount of $402,263
      as of
      December 31, 2005, which relates to the financing / lease contract for the
      acquisition of fixed assets. The payable requires annual installments of
      $100,564 to be made beginning in 2006. During the second quarter of 2006, the
      note payable of $402,263 was paid in full.





We
      have
      funded our cash needs for the six months ended June 30, 2006 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 2006 and $100,000 for the two years thereafter.





On
      a
      long-term basis, liquidity is dependent on continuation and expansion of
      operations, receipt of revenues, additional infusions of capital and debt
      financing. 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.
      Additionally, we will have to significantly modify our business
      plan.




13




Ability
      to Continue as a Going Concern




As
      shown
      in the consolidated financial statements for the six months ended June 30,
      2006,
      the Company had a deficit book value, was the subject of numerous law suits, had
      all
      of its assets fully pledged, had a
      negative cash flow from operations that created 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 resolving the business and liquidity
      problems, principally through developing operations, increasing revenues, and
      obtaining new capital through either debt or equity.




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 the Company 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 the Company
      believes 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 look 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
      the
      company or any other person that the objectives and plans of the Company will
      be
      achieved.





**ITEM
      3. CONTROLS AND PROCEDURES.**




**Quarterly
      Evaluation of Controls**




As
      of the
      end of the period covered by this quarterly report on Form 10-QSB, we evaluated
      the effectiveness of the design and operation of (i) our disclosure controls
      and
      procedures ("Disclosure Controls"), and (ii) our internal control over financial
      reporting ("Internal Controls"). This evaluation ("Evaluation") was performed
      by
      our President and Chief Executive Officer, Ming Lei ("CEO") and Xiaojun Wang,
      our Chief Financial Officer ("CFO"). In this section, we present the conclusions
      of our CEO and CFO based on and as of the date of the Evaluation, (i) with
      respect to the effectiveness of our Disclosure Controls, and (ii) with respect
      to any change in our Internal Controls that occurred during the most recent
      fiscal quarter that has materially affected, or is reasonably likely to
      materially affect our Internal Controls.




**CEO
      and CFO Certifications**





Attached
      to this quarterly report, as Exhibits 31.1 and 31.2, are certain certifications
      of the CEO and CFO, which are required in accordance with the Exchange Act
      and
      the Commission's rules implementing such section (the "Rule 13a-14(a)/15d-14(a)
      Certifications"). This section of the quarterly report contains the information
      concerning the Evaluation referred to in the Rule 13a-14(a)/15d-14(a)
      Certifications. This information should be read in conjunction with the Rule
      13a-14(a)/15d-14(a) Certifications for a more complete understanding of the
      topic presented.




**Disclosure
      Controls and Internal Controls**





Disclosure
      Controls are procedures designed with the objective of ensuring that information
      required to be disclosed in our reports filed with the Commission under the
      Exchange Act, such as this quarterly report, is recorded, processed, summarized
      and reported within the time period specified in the Commission's rules and
      forms. Disclosure Controls are also designed with the objective of ensuring
      that
      material information relating to the Company is made known to the CEO and the
      CFO by others, particularly during the period in which the applicable report
      is
      being prepared. Internal Controls, on the other hand, are procedures which
      are
      designed with the objective of providing reasonable assurance that (i) our
      transactions are properly authorized, (ii) the Company's assets are safeguarded
      against unauthorized or improper use, and (iii) our transactions are properly
      recorded and reported, all to permit the preparation of complete and accurate
      financial statements in conformity with accounting principals generally accepted
      in the United States.




14





**Limitations
      on the Effectiveness of Controls**





Our
      management does not expect that our Disclosure Controls or our Internal Controls
      will prevent all error and all fraud. A control system, no matter how well
      developed and operated, can provide only reasonable, but not absolute assurance
      that the objectives of the control system are met. Further, the design of the
      control system must reflect the fact that there are resource constraints, and
      the benefits of controls must be considered relative to their costs. Because
      of
      the inherent limitations in all control systems, no evaluation of controls
      can
      provide absolute assurance that all control issues and instances so of fraud,
      if
      any, within the Company have been detected. These inherent limitations include
      the realities that judgments in decision -making can be faulty, and that
      breakdowns can occur because of simple error or mistake. Additionally, controls
      can be circumvented by the individual acts of some persons, by collusion of
      two
      or more people, or by management override of the control. The design of a system
      of controls also is based in part upon certain assumptions about the likelihood
      of future events, and there can be no assurance that any design will succeed
      in
      achieving its stated objectives under all potential future conditions. Over
      time, control may become inadequate because of changes in conditions, or because
      the degree of compliance with the policies or procedures may deteriorate.
      Because of the inherent limitations in a cost-effective control system,
      misstatements due to error or fraud may occur and not be detected.




**Scope
      of the Evaluation**





The
      CEO
      and CFO's evaluation of our Disclosure Controls and Internal Controls included
      a
      review of the controls' (i) objectives, (ii) design, (iii) implementation,
      and
      (iv) the effect of the controls on the information generated for use in this
      quarterly report. In the course of the Evaluation, the CEO and CFO sought to
      identify data errors, control problems, acts of fraud, and they sought to
      confirm that appropriate corrective action, including process improvements,
      was
      being undertaken. This type of evaluation is done on a quarterly basis so that
      the conclusions concerning the effectiveness of our controls can be reported
      in
      our quarterly reports on Form 10-QSB and quarterly reports on Form 10-KSB.
      The
      overall goals of these various evaluation activities are to monitor our
      Disclosure Controls and our Internal Controls, and to make modifications if
      and
      as necessary. Our external auditors also review Internal Controls in connection
      with their audit and review activities. Our intent in this regard is that the
      Disclosure Controls and the Internal Controls will be maintained as dynamic
      systems that change (including improvements and corrections) as conditions
      warrant.





Among
      other matters, we sought in our Evaluation to determine whether there were
      any
      significant deficiencies or material weaknesses in our Internal Controls, which
      are reasonably likely to adversely affect our ability to record, process,
      summarize and report financial information, or whether we had identified any
      acts of fraud, whether or not material, involving management or other employees
      who have a significant role in our Internal Controls. This information was
      important for both the Evaluation, generally, and because the Rule
      13a-14(a)/15d-14(a) Certifications, Item 5, require that the CEO and CFO
      disclose that information to our Board (audit committee), and to our independent
      auditors, and to report on related matters in this section of the quarterly
      report. In the professional auditing literature, "significant deficiencies"
      are
      referred to as "reportable conditions". These are control issues that could
      have
      significant adverse affect on the ability to record, process, summarize and
      report financial data in the financial statements. A "material weakness" is
      defined in the auditing literature as a particularly serious reportable
      condition where the internal control does not reduce, to a relatively low level,
      the risk that misstatement cause by error or fraud may occur in amounts that
      would be material in relation to the financial statements and not be detected
      within a timely period by employee in the normal course of performing their
      assigned functions. We also sought to deal with other controls matters in the
      Evaluation, and in each case, if a problem was identified; we considered what
      revisions, improvements and/or corrections to make in accordance with our
      ongoing procedures.




**Conclusions**





Based
      upon the Evaluation, our disclosure controls and procedures are designed to
      provide reasonable assurance of achieving our objectives. Our CEO and CFO have
      concluded that our disclosure controls and procedures are effective at that
      reasonable assurance level to ensure that material information relating to
      we
      are made known to management, including the CEO and CFO, particularly during
      the
      period when our periodic reports are being prepared, and that our Internal
      Controls are effective at that assurance level to provide reasonable assurance
      that our financial statements are fairly presented inconformity with accounting
      principals generally accepted in the United States. Additionally, there has
      been
      no change in our Internal Controls that occurred during our most recent fiscal
      quarter that has materially affected, or is reasonably likely to affect, our
      Internal Controls.




15




**PART
      II. OTHER INFORMATION**





**ITEM
      1. LEGAL PROC** **EEDINGS**





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. (nka 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: A 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. 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 nor 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 on Dark Dynamite, Inc..





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 the court, the judgment
      awarded damages in the sums of $267,892, an award for costs and attorneys fees
      has not yet been calculated. Mr. Weintraub has filed an affidavit with the
      court
      attacking the sufficiency of service in the case, Plaintiffs have filed a
      response to that affidavit and no reply has been received from Weintraub nor
      has
      any ruling been made by the court.




**ITEM
      2. CHANGES IN SECURITIES AND USE OF PR** **OCEEDS**




On
      January 4, 2006, 49,500 shares of preferred stock were converted into 1,237,500
      common shares by our consultants;





On
      January 10, 2006, 10,000 shares of preferred stock were converted into 250,000
      common shares by our former owner.





**ITEM
      5. OTHER INFOR** **MATION**





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.




(2)
            On
                April 18, 2006, the Company filed an 8-K report under Item 2.01,
                Completion of Acquisition or Disposition of Assets reporting the
                sales of
                Black Chandelier, Inc. held by the
                Company.





16





**SIG** **NATURES**




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 19, 2006
            By:
            /s/ Ming
                LeiMing
                Lei
              President
                and CEO





Date: August
                19, 2006
            By:
            /s/ Xiaojun
                WangXiaojun
                Wang
              Chief
                Financial Officer






17




**INDEX
      TO E** **XHIBITS**




**Exhibit
                No.**
            
            **Description**31.1
            
            Certification
                of Chief Executive
                Officer31.2
            
            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.








18