REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Directors and
Stockholders of Yijia Group Corp.
Opinion on the Financial Statements
We have audited the accompanying balance sheet of Yijia Group Corp. (the
“Company”) as of April 30, 2021 and 2020, and the related statements of operations, of changes in stockholders’
deficit, and of cash flows for the years ended April 30, 2021 and 2020, including the related notes (collectively referred
to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position
of the Company as of April 30, 2021 and 2020, and the results of its operations and its cash flows for the years then ended, in conformity
with accounting principles generally accepted in the United States of America.
Consideration of the Company’s Ability
to Continue as a Going Concern
The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has
suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue
as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial
statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The
Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part
of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express
no such opinion.
Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Exelient PAC
We have served as the Company’s auditor
since 2019.
Singapore
June 30, 2021
YIJIA GROUP CORP.
BALANCE SHEETS
AS OF APRIL 30, 2021 AND APRIL 30, 2020
See accompanying notes, which are an integral part
of these financial statements
See accompanying notes, which are an integral part
of these financial statements
See accompanying notes, which are an integral part
of these financial statements
See accompanying notes, which are an integral part
of these financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2021 AND 2020
Note 1 – ORGANIZATION AND NATURE OF
BUSINESS
Yijia Group Corp. (“the Company”,
“we”, “us” or “our”) was incorporated as Soldino Group Corp. on January 25, 2017 under the laws of
the State of Nevada, United States of America. The Company has ceased its operations as of October 2018. As such, the Company accounted
for all of its assets, liabilities and results of operations up to October 31, 2018 as discontinued operations. As of November 1, 2018,
the Company is a shell company. On November 15, 2018, the Company filed a Certificate of Amendment to the Articles of Incorporation with
Nevada’s Secretary of State to change its name to Yijia Group Corp.
On October 31, 2018, Aurora Fiorin resigned as
the President, Treasurer, Secretary and Director of the Company. Ms. Fiorin’s resignation as President, Treasurer and Secretary
was effective immediately. Ms. Fiorin’s resignation as a Director was effective ten (10) days following the filing by the Company
of the Information Statement on Schedule 14f-1 with the United States Securities and Exchange Commission (the “SEC”). Prior
to Ms. Fiorin’s resignation, she appointed Ms. Shaoyin Wu as the new President and Chief Executive Officer of the Company and Mr.
Kim Lee Poh as the Company’s new Chief Financial Officer and Secretary. Messrs. Wu and Poh were appointed as new board members of
the Company together with Mr. Jian Yang.
Note 2 – GOING CONCERN
The accompanying financial statements have been
prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern.
The Company incurred net loss of $52,094 for the year ended April 30, 2021 and an accumulated deficit of $239,365.
Therefore, there is substantial doubt about the
Company’s ability to continue as a going concern without future profitability. Management anticipates that the Company will be dependent,
in the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it will
be able to raise additional funds through the capital markets.
In light of management’s efforts, there
are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going
concern. The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets
and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to
the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company
be unable to continue as a going concern.
Note 3 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Basis of presentation
The accompanying financial statements have been
prepared in accordance with generally accepted accounting principles in the United States of America. The Company’s fiscal year
is April 30.
YIJIA GROUP CORP.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2021 AND 2020
Use of Estimates
The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount
of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments
Accounting Standards Codification (“ASC”)
topic 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs
in measuring fair value. The hierarchy organizes the inputs into three levels based on the extent to which inputs used in measuring fair
value are observable in the market.
These tiers include:
Level 1:
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defined as observable inputs such as quoted prices in active markets;
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Level 2:
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defined as inputs other than quoted prices in active markets that are either directly or indirectly observable;
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Level 3:
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defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
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The carrying value of cash and the Company’s
loan from shareholders approximates its fair value due to their short-term maturity.
Income Taxes
Income taxes are computed using the asset and
liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences
between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws.
A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Uncertain Tax Positions
The Company did not take any uncertain tax positions
and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the years
ended April 30, 2021 and 2020.
YIJIA GROUP CORP.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2021 AND 2020
Revenue Recognition
The Company recognizes revenue in accordance with
ASC No. 605, “Revenue Recognition” (“ASC-605”). ASC-605 requires that four basic criteria must be met before revenue
can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable;
and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the
fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates
to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded.
The Company will defer any revenue for which the product has not been delivered or is subject to refund until such time that the Company
and the customer jointly determine that the product has been delivered or no refund will be required. For the years ended April 30, 2021
and 2020, no revenues were generated.
Net Loss Per Share
The Company computes net loss per share in accordance
with FASB ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net loss available to common shareholders
by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential
common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.
As of April 30, 2021 and 2020, there were no potentially dilutive debt or equity instruments issued or outstanding.
Currencies
The Company’s reporting and functional currencies
are both the U.S. dollar. Foreign currency transaction gains and losses are included in other income (expense) but are negligible.
Comprehensive Income
Comprehensive income is defined as all changes
in stockholders’ deficit, exclusive of transactions with owners, such as capital investments. Comprehensive income includes net
income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments
in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. As of April 30, 2021 and 2020, there were no differences
between our comprehensive loss and net loss.
Stock-Based Compensation
Stock-based compensation is accounted for at fair
value in accordance with ASC Topic 718. The amendments in Update expand the scope of Topic 718 to include share based payment transactions
for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except
for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based
payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based
payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing
share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide
(1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted
for under Topic 606, Revenue from Contracts with Customers. To date, the Company has not adopted a stock option plan and has not granted
any stock options.
Related parties
Parties, which can be a corporation or individual,
are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant
influence over the party in making financial and operational decisions. Companies are also considered to be related if they are subject
to common control or common significant influence.
YIJIA GROUP CORP.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2021 AND 2020
Reclassification
Certain reclassifications have been made to the
financial statements for the prior year periods to present that information on a basis consistent with the current period.
Recent Accounting Pronouncements
From time to time, new accounting pronouncements
are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company
as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that
are not yet effective will not have a material impact on its financial position or results of operations upon adoption.
Simplifying the Accounting
for Debt with Conversion and Other Options.
In June 2020, the FASB
issued ASU 2020-06 to simplify the accounting in ASC 470, “Debt with Conversion and Other Options” and ASC 815, “Contracts
in Equity’s Own Entity”. The guidance simplifies the current guidance for convertible instruments and the derivatives
scope exception for contracts in an entity’s own equity. Additionally, the amendments affect the diluted EPS calculation for instruments
that may be settled in cash or shares and for convertible instruments. This ASU will be effective beginning in the first quarter of the
Company’s fiscal year 2022. Early adoption is permitted. The amendments in this update must be applied on either full retrospective
basis or modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period of adoption.
The Company is currently evaluating the impact of ASU 2020-06 on its financial statements and related disclosures, as well as the timing
of adoption.
Financial Instruments
In June 2016, the FASB
issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”
(“ASU 2016-13”), which modifies the measurement of expected credit losses of certain financial instruments. In February
2020, the FASB issued ASU 2020-02 and delayed the effective date of ASU 2016-13 until fiscal year beginning after December 15, 2022. The
Company is currently evaluating the impact of adopting ASU 2016-13 on its financial statements.
Simplifying the Accounting
for Income Taxes
In December 2019, the
FASB issued ASU 2019-12 to simplify the accounting in ASC 740, “Income Taxes.” This guidance removes certain exceptions
related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition
of deferred tax liabilities for outside basis differences. This guidance also clarifies and simplifies other areas of ASC 740. This ASU
will be effective beginning in the first quarter of the Company’s fiscal year 2021. Early adoption is permitted. Certain amendments
in this update must be applied on a prospective basis, certain amendments must be applied on a retrospective basis, and certain amendments
must be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings/(deficit) in the period
of adoption. The adoption of ASU 2019-12 does not have a significant impact on the Company’s financial statements as of and for
the year ended April 30, 2021.
Earnings Per Share
In April 2021, the FASB
issued ASU 2021-04, which included Topic 260 “Earnings Per Share”. This guidance clarifies and reduces diversity in
an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit
guidance in the FASB Codification. The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early
adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2021-04 on its financial statements.
YIJIA GROUP CORP.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2021 AND 2020
Note 4 – COMMON STOCK
Authorized shares
The Company has 75,000,000, $0.001 par value shares
of common stock authorized.
Issued and outstanding shares
As of April 30, 2021 and 2020, there were 5,871,250
shares of common stock issued and outstanding.
Note 5 – COMMITMENTS AND CONTINGENCIES
As of April 30, 2021 and 2020, the Company has
no material commitments or contingencies.
Note 6 – INCOME TAXES
The Company adopted the provisions of uncertain
tax positions as addressed in ASC 740-10-65-1. As a result of the implementation of ASC 740-10-65-1, the Company recognized no increase
in the liability for unrecognized tax benefits.
The Company has no tax position at April 30, 2021
for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The
Company does not recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.
No such interest or penalties were recognized during the period presented. The Company had no accruals for interest and penalties at April
30, 2021 and 2020. The Company’s utilization of any net operating loss carry forward may be unlikely as a result of its intended
activities.
YIJIA GROUP CORP.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2021 AND 2020
The valuation allowance at April 30, 2021 and
2020 was $50,267 and $39,327. The net change in valuation allowance during the years ended April 30, 2021 and 2020 was $10,940 and $15,191.
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all
of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation
of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled
reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based
on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred
income tax asset balances to warrant the application of a full valuation allowance as of April 30, 2021 and 2020. All tax years
since inception remains open for examination only by taxing authorities of US Federal and state of Nevada.
The Company has a net operating loss carryforward
for tax purposes totaling $239,365 and $187,271 at April 30, 2021 and 2020, expiring through 2041. There is a limitation on the amount
of taxable income that can be offset by carryforwards after a change in control (generally greater than a 50% change in ownership). Temporary
differences, which give rise to a net deferred tax asset, are as follows:
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As of
April 30, 2021
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|
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As of
April 30, 2020
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Non-current deferred tax assets:
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|
|
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Net operating loss carryforward
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$
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(239,365
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)
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$
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(187,271
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)
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|
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Total deferred tax assets
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(50,267
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)
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(39,327
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)
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Valuation allowance
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50,267
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39,327
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Net deferred tax assets
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$
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–
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$
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–
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The actual tax benefit at the expected rate of
21% differs from the expected tax benefit for the years ended April 30, 2021 and 2020 as follows:
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Year ended
April 30, 2021
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Year ended
April 30, 2020
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Computed "expected" tax benefit
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$
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(50,267
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)
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$
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(39,327
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)
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Change in valuation allowance
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|
|
50,267
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|
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39,327
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Actual tax benefit
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$
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–
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|
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$
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–
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Note 7 – RELATED PARTY TRANSACTIONS
The Company has been provided free office space
by its stockholder. The management determined that such cost is nominal and did not recognize the rent expense in its financial statements.
From time to time, the stockholder and director
of the Company advanced funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on
demand.
Apart from the transactions and balances detailed
elsewhere in these accompanying financial statements, the Company has no other significant or material related party transactions during
the years presented.
YIJIA GROUP CORP.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2021 AND 2020
Note 8 – SUBSEQUENT EVENTS
In accordance with ASC Topic 855, “Subsequent
Events” the Company has analyzed its operations subsequent to April 30, 2021 to the date these financial statements were available
to be issued, June 30, 2021, and has determined that it does not have any material subsequent events to disclose in these financial statements.