Item
1. Financial Statements
Jin
Wan Hong International Holdings Limited
FINANCIAL
REPORTS
As
of
November
30, 2017
TABLE
OF CONTENTS
Jin
Wan Hong International Holdings Limited
Balance
Sheet
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30-November
2017
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31-May-
2017
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(Unaudited)
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(Audited)
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|
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|
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ASSETS
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Current
Assets:
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|
|
|
|
|
|
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Cash
|
|
$
|
0
|
|
|
$
|
0
|
|
Prepayment
|
|
|
0
|
|
|
|
5,000
|
|
Total
Current Assets
|
|
|
0
|
|
|
|
5,000
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
0
|
|
|
$
|
5,000
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY
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|
Current
Liabilities:
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|
|
|
|
|
|
|
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Accounts
payable
|
|
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1,200
|
|
|
|
600
|
|
Loan
from director
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|
|
32,804
|
|
|
|
28,238
|
|
|
|
|
|
|
|
|
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Total
Liabilities
|
|
$
|
34,004
|
|
|
$
|
28,838
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|
|
|
|
|
|
|
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Shareholders’
Equity:
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|
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|
|
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Common
stock, par value $0.001; 75,000,000 shares authorized, 8,100,000 and 8,100,000 shares issued and outstanding, respectively
|
|
|
8,100
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|
|
|
8,100
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|
Additional
paid-in capital
|
|
|
30,600
|
|
|
|
30,600
|
|
Accumulated
deficit
|
|
|
(72,704
|
)
|
|
|
(62,538
|
)
|
|
|
|
|
|
|
|
|
|
Total
Shareholders’ Equity
|
|
|
(34,004
|
)
|
|
|
(23,838
|
)
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders’ Equity
|
|
$
|
0
|
|
|
$
|
5,000
|
|
The
accompanying notes are an integral part of these financial statements
Jin
Wan Hong International Holdings Limited
Statements
of Operations
(Unaudited)
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Three
Months Ended
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Three
Months Ended
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Six
Months Ended
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|
|
Six
Months Ended
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|
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30-Nov-17
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30-Nov-16
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30-Nov-17
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30-Nov-16
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Revenues:
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$
|
—
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|
|
|
0
|
|
|
$
|
—
|
|
|
|
0
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|
Cost
of Goods Sold
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|
|
—
|
|
|
|
0
|
|
|
|
—
|
|
|
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0
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Gross
Margin
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|
|
—
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|
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0
|
|
|
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—
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|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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General
and administrative expenses
|
|
|
374
|
|
|
|
8,819
|
|
|
|
10,166
|
|
|
|
14,519
|
|
Total
operating expenses
|
|
|
374
|
|
|
|
8,819
|
|
|
|
10,166
|
|
|
|
14,519
|
|
Net
loss from operations
|
|
|
(374
|
)
|
|
|
(8,819
|
)
|
|
|
(10,166
|
)
|
|
|
(14,519
|
)
|
Provision
for income taxes
|
|
|
—
|
|
|
|
0
|
|
|
|
—
|
|
|
|
0
|
|
Net
Loss
|
|
($
|
374
|
)
|
|
($
|
8,819
|
)
|
|
($
|
10,166
|
)
|
|
($
|
14,519
|
)
|
Net
loss per share: basic and diluted
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
Weighted
average number of common shares outstanding: basic and diluted
|
|
|
8,100,000
|
|
|
|
8,100,000
|
|
|
|
8,100,000
|
|
|
|
8,100,000
|
|
The
accompanying notes are an integral part of these financial statements
Jin
Wan Hong International Holdings Limited
Statements
of Cash Flows
(Unaudited)
|
|
Six
Months Ended
|
|
|
Six
Months Ended
|
|
|
|
30-Nov-17
|
|
|
30-Nov-16
|
|
|
|
|
|
|
|
|
Cash
flows from operating activities:
|
|
|
|
|
|
|
|
|
Net
loss for the period
|
|
|
(10,166
|
)
|
|
|
(14,519
|
)
|
Adjustments
to reconcile net loss to net cash (used in) operating activities:
|
|
|
|
|
|
|
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|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
|
|
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Deposit/inventory
|
|
|
0
|
|
|
|
0
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|
Decrease
in Prepayment
|
|
|
5,000
|
|
|
|
0
|
|
Increase
in Accounts payable
|
|
|
600
|
|
|
|
3,155
|
|
Net
cash flows used in operating activities
|
|
|
(4,566
|
)
|
|
|
(11,364
|
)
|
|
|
|
|
|
|
|
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|
Cash
flows from investing activities
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|
|
|
|
|
|
|
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|
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|
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Cash
flows from financing activities:
|
|
|
|
|
|
|
|
|
Proceeds
from sale of common stock
|
|
|
0
|
|
|
|
0
|
|
Loans
from director
|
|
|
4,566
|
|
|
|
11,364
|
|
Contributed
capital
|
|
|
0
|
|
|
|
0
|
|
Net
cash flows provided by financing activities
|
|
|
4,566
|
|
|
|
11,364
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in cash
|
|
|
0
|
|
|
|
0
|
|
Cash,
beginning of the period
|
|
|
0
|
|
|
|
0
|
|
Cash,
end of the period
|
|
|
0
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
—
|
|
|
$
|
—
|
|
Income
taxes paid
|
|
$
|
—
|
|
|
$
|
—
|
|
Supplemental
disclosure of non-cash activities:
|
|
|
|
|
|
|
|
|
Forgiveness
of related party debt
|
|
|
0
|
|
|
|
0
|
|
The
accompanying notes are an integral part of these financial statements
Jin
Wan Hong International Holdings Limited
Notes
to the Financial Statements
Jin
Wan Hong International Holdings Limited, formerly Karnet Capital Corp. (the “Company”) was incorporated in the State
of Nevada on January 31, 2014. On January 14, 2016, Shu Feng Lu (President and Director of the Company), Hong Xia Li, and Chen
Yang took control of the Company by purchasing shares of common stock from existing shareholders.
The
Company plans to operate in tea related business in the future. The Company’s currently maintains an office in Room 1101,
Block E, Guang Hua Yuan, 2031 Bin He Nan Road, FuTian District, Shenzhen, Guangdong, China.
The
Company has generated limited revenues and incurred a loss since inception (January 31, 2014) resulting in an accumulated deficit
of $72,704 as of November 30, 2017, and further losses are anticipated in the development of its business. Accordingly, there
is substantial doubt about the Company’s ability to continue as a going concern.
The
ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining
the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come
due. Management intends to finance operating costs over the next twelve months with existing cash on hand, loans from directors
and, or, the private placement of common stock.
Because
of the Company’s history of losses, its independent auditors, in the reports on the financial statements for the year ended
May 31, 2017, expressed substantial doubt about the Company’s ability to continue as a going concern. The accompanying unaudited
financial statements for the period ended November 30, 2017 have been prepared in conformity with accounting principles generally
accepted in the United States of America, which contemplate continuation of the Company as a going concern. The financial statements
do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and
classification of liabilities that could result from the outcome of this uncertainty.
Management
anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses
The Company intends to position itself so that it may 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.
|
3.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
Basis
of Presentation
The
accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles in
the United States of America.
Accounting
Basis
The
Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP”
accounting). The Company has adopted a May 31 fiscal year end.
Unaudited
Interim Financial Information
These
unaudited interim consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting
and the rules and regulations of the Securities and Exchange Commission (“SEC”) that permit reduced disclosure for
interim periods. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation
of the financial position, results of operations and cash flows for the periods presented have been made.
The
results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year
ending May 31, 2018. These unaudited interim financial statements should be read in conjunction with the latest Annual Financial
Statements and that interim disclosures generally do not repeat this in the annual statements.
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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Cash
and Cash Equivalents
The
Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. There
were no cash equivalents as of November 30, 2017.
Fair
Value of Financial Instruments
The
Company’s financial instruments consist of cash and cash equivalents, and amounts due to a shareholder, who is a Director
and President of the Company. The carrying amount of these financial instruments approximates fair value due either to length
of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.
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.
Revenue
Recognition
The
Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company will
recognize revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned
when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped
or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is
reasonably assured.
Stock-Based
Compensation
We
account for equity-based transactions with nonemployees under the provisions of ASC Topic No. 505-50,
Equity-Based Payments
to Non-Employees
(“ASC 505-50”). ASC 505-50 establishes that equity-based payment transactions with nonemployees
shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever
is more reliably measurable. The fair value of common stock issued for payments to nonemployees is measured at the market price
on the date of grant. The fair value of equity instruments, other than common stock, is estimated using the Black-Scholes option
valuation model. In general, we recognize the fair value of the equity instruments issued as deferred stock compensation and amortize
the cost over the term of the contract.
We
account for employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718,
Compensation—Stock
Compensation,
which requires all share-based payments to employees, including grants of employee stock options, to be recognized
in the financial statements based on their fair values.
The
fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over
the period during which services are rendered.
Basic
Income (Loss) Per Share
Basic
income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted
average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net
income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted
weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt
or equity. There are no such common stock equivalents outstanding as of April 15, 2017.
Recent
Accounting Pronouncements
In
August 2014, the FASB issued Accounting Standards Update “ASU” 2014-15 on “Presentation of Financial Statements
Going Concern (Subtopic 205-40) –Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”
(“Update”). Currently, there is no guidance in U.S. GAAP about management’s responsibility to evaluate whether
there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures.
The amendments in this Update provide that guidance. In doing so, the amendments are intended to reduce diversity in the timing
and content of footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going
concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the
amendments (1) provide a definition of the term
substantial doubt,
(2) require an evaluation every reporting period including
interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain
disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express
statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year
after the date that the financial statements are issued (or available to be issued). The amendments in this Update are effective
for public and nonpublic entities for annual periods ending after December 15, 2016. Early adoption is permitted.
The
Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact
on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting
pronouncements that have been issued that might have a material impact on its financial position or results of operations.
|
4.
|
LOAN
FROM SHAREHOLDERS
|
As
of November 30, 2017, the Company owed its President, Director, and major shareholder, Shu Feng Lu $32,804. The total loan of
$32,804 was unsecured, non-interest bearing and due on demand.
The
Company has 75,000,000, $0.001 par value shares of common stock authorized. There were no shares issued during the quarter ended
November 30, 2017.
There
were 8,100,000 shares of common stock issued and outstanding as of November 30, 2017.
|
6.
|
COMMITMENTS
AND CONTINGENCIES
|
The
Company neither owns nor leases any real or personal property. Our CEO has provided use of an office without charge to the Company.
There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and
accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will
become involved in other business activities in the future.
In
accordance with SFAS 165 (ASC 855-10) the Company has analyzed its operations subsequent to November 30, 2017, through March 21,
2018 and has determined that it does not have any material subsequent events to disclose in these financial statements.
Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Description
of Business
FORWARD-LOOKING
STATEMENTS
This
quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance.
These statements often can be identified by the use of terms such as “may,” “will,” “expect,”
“believe,” “anticipate,” “estimate,” “approximate” or “continue,”
or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We
wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.
Any forward-looking statements represent management’s best judgment as to what may occur in the future. However, forward-looking
statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events
to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim
any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such
statement or to reflect the occurrence of anticipated or unanticipated events.
Company
Jin
Wan Hong International Holdings Limited was incorporated in the State of Nevada on January 31, 2014. On January 14, 2016, Shu
Feng Lu (President and Director of the Company), Hong Xia Li, and Chen Yang took control of the Company by purchasing shares of
common stock from existing shareholders. After the transaction our management is currently working on a new business plan and
winding up the current business plan. The Company plans to operate in tea related business in the future.
Office
Our
principal executive office is located at 1101, Block E, Guang Hua Yuan, 2031 Bin He Nan Road, Fu Tian District, Shenzhen City,
China. Our CEO provides our Company with office space at no charge.
Management’s
Discussion and Analysis of Financial Condition and Results of Operations
The
following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere
in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.
Our actual results could differ materially from those discussed in the forward-looking statements. Our audited
financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted
Accounting Principles.
General
Management
is currently working on a new business plan and winding up the current business plan. The Company plans on operating in tea related
business in the future.
Results
of Operations
We
have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going
concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification
of liabilities that might be necessary should we be unable to continue in operation.
We
expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital
through, among other things, the sale of equity or debt securities. There is no guarantee that we will be able to raise additional
capital.
Three
Month and Six Month Period Ended November 30, 2017 Compared To Three Month and Six Month Period Ended November 30, 2016
Revenue
We
recognized revenue of $0 for the three month period ended November 30, 2017, and for the three month period ended November 30,
2016. We recognized revenue of $0 for the six month period ended November 30, 2017, and for the six month period ended November
30, 2016.
Operating
expenses
We
incurred operating expenses of $374 for the three month period ended November 30, 2017 compared to $8,819 for the three month
period ended November 30, 2016, due to the decrease of legal and accounting expenses. We incurred operating expenses of $10,166
for the six month period ended November 30, 2017 compared to $14,519 for the six month period ended November 30, 2016.
Net
Losses
Our
net loss for the three month period ended November 30, 2017 was $374 compared to a net loss of $8,819 as of the three month period
ended November 30, 2016 due to the decrease of legal and accounting expenses. Our net loss for the six month period ended November
30, 2017 was $10,166 compared to a net loss of $14,519 as of the six month period ended November 30, 2016.
Liquidity
and Capital Resources
As
of November 30, 2017, our total assets were $0. Our total liabilities were $34,004, comprised of a loan of $32,804 from Shu Feng
Lu, who is the Company’s President and Director, and payables to third parties of $1,200. As of May 31, 2017, our total
assets were $5,000 and our total liabilities were $28,838.
Shareholders’
equity was ($34,004) as of November 30, 2017. As of May 31, 2017, shareholder’s equity was ($23,838).
The
Company has accumulated a deficit of ($72,704) as of November 30, 2017, and further losses are anticipated in the development
of its business. Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern.
The
ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining
the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come
due. Management intends to finance operating costs over the next twelve months with existing cash on hand, sales, loans from directors
and, or, the private placement of common stock.
Management
anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses
The Company intends to position itself so that it may 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.
Cash
Flow from Operating Activities
We
have not generated positive cash flow from operating activities. For the six month period ended November 30, 2017, net cash flow
used in operating activities was ($4,566) compared to ($11,364) for the six month period ended November 30, 2016.
Cash
Flow from Investing Activities
We
neither used, nor generated cash from investing activities for the six month period end November 30, 2017 and six month period
ended November 30, 2016.
Cash
Flow from Financing Activities
For
the six month period ended November 30, 2017, net cash provided by financing activities was $4,566. The loans of $4,566 are from
a shareholder of the Company, Shu Feng Lu, who is also the President and Director of the Company. The loans are unsecured, non-interest
bearing and due on demand. For the six month period ended November 30, 2016, net cash provided by financing activities was $11,364.
Plan
of Operation and Funding
We
expect that working capital requirements will continue to be funded through a combination of our existing funds, sales, loans
from a director and further issuances of securities. Our working capital requirements are expected to increase in line with the
growth of our business
We
have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds
of the private placement of equity, and debt instruments. In connection with our business plan, management anticipates additional
increases in operating expenses and capital expenditures relating to:
●
Legal and professional fees
●
Website development
●
Purchase of inventory
●
Marketing Campaign
We
intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need
to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or
convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences
or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate
funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business
endeavors or opportunities, which could significantly and materially restrict our business operations.
Off-Balance
Sheet Arrangements
As
of the date of this Report, we do not have any off balance sheet arrangements that have or are reasonably likely to have a current
or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that are material to investors.
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, and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”)
and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present
the financial position, results of operations, stockholders’ equity and cash flows of the Company for three month
period ended November 30, 2017.
Accounting
Basis
The
Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP”
accounting). The Company has adopted a May 31 fiscal year end.
Cash
and Cash Equivalents
The
Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The
Company had $0 cash as of November 30, 2017.
Fair
Value of Financial Instruments
The
Company’s financial instruments consist of cash and cash equivalents and amounts due to shareholder. The carrying amount
of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing
market rates unless otherwise disclosed in these financial statements.
Inventories
Inventories
are stated at the lower of cost or market. Cost is principally determined using the first-in, first out (FIFO) method. The Company
had $0 in inventory as of November 30, 2017.
Depreciation,
Amortization, and Capitalization
The
Company records depreciation and amortization when appropriate using both straight-line and declining balance methods over the
estimated useful life of the assets (five to seven years). Expenditures for maintenance and repairs are charged to expense as
incurred. Additions, major renewals and replacements that increase the property’s useful life are capitalized. Property
sold or retired, together with the related accumulated depreciation is removed from the appropriated accounts and the resultant
gain or loss is included in net income.
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.
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 the financial statements and the reported amount of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Revenue
Recognition
The
Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.
Stock-Based
Compensation
Stock-based
compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock
option plan and has not granted any stock options.
Basic
Income (Loss) Per Share
Basic
income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted
average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net
income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted
weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt
or equity. There are no such common stock equivalents outstanding as of November 30, 2017.
Comprehensive
Income
The
Company has standards for reporting and display of comprehensive income, its components and accumulated balances. When applicable,
the Company would disclose this information on its Statement of Stockholders’ Equity. Comprehensive income comprises
equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant
transactions that are required to be reported in other comprehensive income.
Recent
Accounting Pronouncements
The
Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s
results of operations, financial position or cash flow.