China Food & Beverage Co (OTC:CHIF)

Company
The Company presently occupies office space, free of charge at 710 W 24th St., Kansas City, MO 64108.

Business
Since the disposition of its prior operations, the Company has continued to seek to acquire businesses both in China and other countries. The Company currently has no ongoing day to day operations or sales.

The Company intends to locate its target investment opportunities through contacts which management has in China and Southeast Asia. The Company has no full or part time employees, aside from its officers and directors. If the Company requires additional personnel to carry out its business objectives, it will retain outside consultants. In the past, the Company has been successful in retaining consultants through the issuance of its Common Stock and the Company intends to continue this practice in an attempt to avoid expending valuable cash flows.

Since the Company does not have significant liquid assets, the Company intends to acquire business opportunities through the issuance of its equity securities. This will likely result in future dilution of the ownership interest enjoyed by the Company's current shareholders. The Company has had some past experience in acquiring subsidiaries in this manner. However, the Company can provide no assurance that it will be able to continue such acquisitions in the future. It is also likely that any future acquisitions by the Company will require the Company to make capital contributions to the acquired businesses. (10QSB for the quarterly period ended September 30, 2006)