EXHIBIT 10.3

TEDA TRAVEL GROUP, INC.

AND SUBSIDIARY

PRO FORMA CONSOLIDATED

FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2003

TEDA TRAVEL GROUP, INC. AND SUBSIDIARY

PRO FORMA CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2003

(UNAUDITED)

	Historical
	Teda Hotels Management Company, Limited		Teda Travel Group, Inc.				Pro Forma Adjustments		Pro Forma Teda Travel Group, Inc.
CURRENT ASSETS
Cash	$	98,079	$	882					$	98,961
Accounts receivable, net		88,509		6,000						94,509
Prepaid expenses and other current assets		55,355		—						55,355
Total Current Assets		241,943		6,882						248,825
PROPERTY AND EQUIPMENT – NET		13,064		284						13,348
INVESTMENT IN AFFILIATE		3,661,868		—						3,661,868
TOTAL ASSETS	$	3,916,875	$	7,166					$	3,924,041
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	47,334	$	3,161					$	50,495
Due to related parties		3,263,724		—						3,263,724
TOTAL LIABILITIES		3,311,058		3,161						3,314,219
STOCKHOLDERS’ EQUITY
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued and outstanding		—		—						—
Class A common stock, $.001 par value, 100,000,000 shares authorized, 18,899,586 shares issued and outstanding		100		39,505		(1)	(20,705	)		18,900
Class B common stock, $.001 par value, 2,000,000 shares authorized, no shares issued and outstanding		—		2,000		(1)	(2,000	)		—
Additional paid-in capital		—		3,569,426		(1)	(3,584,221	)		(14,795	)
Retained earnings (deficit)		605,717		(3,606,926	)	(1)	3,606,926			605,717
Total Stockholders’ Equity		605,817		4,005						609,822
TOTAL LIABILITIES AND     STOCKHOLDERS’ EQUITY	$	3,916,875	$	7,166					$	3,924,041

See accompanying notes to pro forma consolidated financial statements.

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TEDA TRAVEL GROUP, INC. AND SUBSIDIARY

PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

DECEMBER 31, 2003

(UNAUDITED)

	Historical
	Teda Hotels Management Company Limited			Teda Travel Group, Inc.		Pro Forma Adjustments	Pro Forma Teda Travel Group, Inc.
REVENUE, NET	$	396,794		$	—		$	396,794
EXPENSES
Management fees		31,400			—			31,400
Payroll		117,784			—			117,784
Other selling, general and administrative		313,046			—			313,046
Total Expenses		462,230			—			462,230
LOSS FROM OPERATIONS		(65,436	)		—			(65,436	)
OTHER INCOME (EXPENSE)
Equity in earnings of affiliate		51,409			—			51,409
Loss on disposal of property and equipment		(3,202	)		—			(3,202	)
Other income		370			—			370
Total Other Income (Expenses)		48,577			—			48,577
LOSS BEFORE TAXES		(16,859	)		—			(16,859	)
Income taxes		23,795			—			23,795
NET LOSS	$	(40,654	)	$	—		$	(40,654	)
Pro forma net loss per common share – basic and diluted							$	—
Pro forma weighted average number of common shares outstanding – basic and diluted								17,856,443

See accompanying notes to pro forma consolidated financial statements.

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TEDA TRAVEL GROUP, INC. AND SUBSIDIARY

NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2003

(UNAUDITED)

NOTE: (1)

To record the reverse merger and recapitalization of Teda Travel Group, Inc. by Teda Hotels Management Company, Limited.

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