|
Item 1.
|
Financial Statements
|
The accompanying interim financial statements of Bitmis Corp.
(“the Company”, “we”, “us” or “our”) have been prepared without audit pursuant
to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with United States generally accepted principles have been condensed or omitted
pursuant to such rules and regulations.
The interim financial statements are condensed and should be
read in conjunction with the company’s latest annual financial statements.
In the opinion of management, the financial statements contain
all material adjustments, consisting only of normal adjustments considered necessary to present fairly the financial condition,
results of operations, and cash flows of the Company for the interim periods presented.
BITMIS CORP.
CONDENSED BALANCE SHEETS
(In U.S. dollars)
|
|
March 31,
2020
|
|
|
June 30,
2019
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
-
|
|
|
$
|
747
|
|
Prepaid expense
|
|
|
-
|
|
|
|
1,350
|
|
Total Current Assets
|
|
|
(26
|
)
|
|
|
2,097
|
|
|
|
|
|
|
|
|
|
|
Fixed Assets
|
|
|
|
|
|
|
|
|
Equipment, net
|
|
|
80
|
|
|
|
463
|
|
Total Fixed Assets
|
|
|
80
|
|
|
|
463
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
80
|
|
|
$
|
2,560
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ (DEFICIT)
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,914
|
|
|
$
|
1,166
|
|
Bank overdraft
|
|
|
26
|
|
|
|
-
|
|
Related party loans
|
|
|
-
|
|
|
|
4,370
|
|
Total Current Liabilities
|
|
|
1,940
|
|
|
|
5,537
|
|
|
|
|
|
|
|
|
|
|
Stockholder’s (Deficit)
|
|
|
|
|
|
|
|
|
Common stock, par value $0.001; 75,000,000 shares authorized, 6,250,750 shares issued and outstanding as of March 31, 2020 and June 30, 2019
|
|
|
6,251
|
|
|
|
6,251
|
|
Additional paid in capital
|
|
|
31,331
|
|
|
|
23,765
|
|
(Deficit)
|
|
|
(39,442
|
)
|
|
|
(32,993
|
)
|
Total Stockholder’s (Deficit)
|
|
|
(1,860
|
)
|
|
|
(2,977
|
)
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholder’s Equity
|
|
$
|
80
|
|
|
|
2,560
|
|
See accompanying notes, which are an integral
part of these financial statements
BITMIS CORP.
CONDENSED STATEMENTS OF
OPERATIONS
(Unaudited)
(In U.S. dollars)
|
|
Three months ended
March 31,
2020
|
|
|
Three months ended
March 31,
2019
|
|
|
Nine Months ended
March 31,
2020
|
|
|
Nine months ended
March 31,
2019
|
|
REVENUES
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Gross Profit
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and Administrative Expenses
|
|
|
-
|
|
|
|
4,768
|
|
|
|
6,449
|
|
|
|
18,673
|
|
TOTAL OPERATING EXPENSES
|
|
|
-
|
|
|
|
(4,768
|
)
|
|
|
(6,449
|
)
|
|
|
(18,673
|
)
|
NET INCOME (LOSS) FROM OPERATIONS
|
|
|
|
|
|
|
(4,768
|
)
|
|
|
(6,449
|
)
|
|
|
(18,673
|
)
|
PROVISION FOR INCOME TAXES
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
NET (LOSS)
|
|
$
|
|
|
|
$
|
(4,768
|
)
|
|
$
|
(6,449
|
)
|
|
$
|
(18,673
|
)
|
(LOSS) PER SHARE: BASIC AND DILUTED
|
|
$
|
(0.00
|
)
|
|
|
(0.00
|
)
|
|
|
(0.00
|
)
|
|
|
(0.00
|
)
|
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED
|
|
|
6,250,750
|
|
|
|
6,250,750
|
|
|
|
6,250,750
|
|
|
|
6,250,750
|
|
See accompanying notes, which are an integral
part of these financial statements
BITMIS CORP.
CONDENSED
STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)
(Unaudited)
(In U.S. dollars)
|
|
|
Common Stock
|
|
|
|
Additional Paid-in
|
|
|
|
|
|
|
|
Total Stockholder’s
|
|
|
|
|
Shares
|
|
|
|
Amount
|
|
|
|
Capital
|
|
|
|
(Deficit)
|
|
|
|
Equity (Deficit)
|
|
Balance, June 30, 2018
|
|
|
6,250,750
|
|
|
$
|
6,251
|
|
|
$
|
23,765
|
|
|
$
|
(11,211
|
)
|
|
$
|
18,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,673
|
)
|
|
|
(18,673
|
)
|
Balance, March 31, 2019
|
|
|
6,250,750
|
|
|
$
|
6,251
|
|
|
$
|
23,765
|
|
|
$
|
(29,884
|
)
|
|
$
|
132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2019
|
|
|
6,250,750
|
|
|
$
|
6,251
|
|
|
$
|
23,765
|
|
|
$
|
(32,993
|
)
|
|
$
|
(2,997
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional capital contribution
|
|
|
-
|
|
|
|
-
|
|
|
|
6,566
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6,449
|
)
|
|
|
(6,449
|
)
|
Balance, March 31, 2020
|
|
|
6,250,750
|
|
|
$
|
6,251
|
|
|
$
|
31,331
|
|
|
$
|
(39,442
|
)
|
|
$
|
(9,426
|
)
|
See accompanying notes, which are an integral
part of these financial statements
BITMIS CORP.
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
(In U.S. dollars)
|
|
Nine months ended
March 31,
2020
|
|
|
Nine months ended
March 31,
2019
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net (loss) for the period
|
|
$
|
(6,449
|
)
|
|
$
|
(18,673
|
)
|
Adjustments to reconcile net loss to net cash (used in) operating activities
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
381
|
|
|
|
2,273
|
|
Change in operating assets and liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
747
|
|
|
|
570
|
|
Prepaid expenses
|
|
|
1,351
|
|
|
|
(2,700
|
)
|
CASH FLOWS (USED IN) OPERATING ACTIVITIES
|
|
|
(3,970
|
)
|
|
|
(18,530
|
)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Bank overdraft
|
|
|
26
|
|
|
|
-
|
|
Capital contribution
|
|
|
3,197
|
|
|
|
-
|
|
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES
|
|
|
3,223
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
NET INCRASE IN CASH
|
|
|
(747
|
)
|
|
|
(18,530
|
)
|
Cash, beginning of period
|
|
|
747
|
|
|
|
19,328
|
|
Cash, end of period
|
|
$
|
-
|
|
|
$
|
798
|
|
|
|
|
|
|
|
|
|
|
SUPPLMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Interest paid
|
|
$
|
-
|
|
|
$
|
-
|
|
Income taxes paid
|
|
$
|
-
|
|
|
$
|
-
|
|
See accompanying notes, which are an integral
part of these financial statements
BITMIS CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
Note 1 – ORGANIZATION AND BUSINESS
Bitmis Corp. (“the Company”, “we”,
“us” or “our”) was founded in the State of Nevada on June 6, 2016. The Company originally intended to commence
operations in the business of consulting in Thailand but it was not successful. On February 24, 2020, Anna Varlamova, the president,
treasurer, secretary and director of Bitmis Corp. sold 5,000,000 shares of the Company’s common
stock, representing 80% of the total issued and outstanding shares of common stock of the Company, in a private transaction (the
“Transaction”) to Li Wen Chen, Bi Feng Zhao, Heng Jian Yang, Kin Chiu Leung, Jin Jia Mai and Zhong Xiong Chen for an
aggregate purchase price of $395,000 (the “Purchase Price”). Li Wen Chen, Bi Feng Zhao, Heng Jian Yang, Kin Chiu
Leung, Jin Jia Mai and Zhong Xiong Chen (collectively, the “Purchasers”) purchased, respectively, 1,250,000 shares,
1,000,000 shares, 1,000,000 shares, 750,000 shares, 500,000 shares and 500,000 shares of the common stock of the Company from Anna
Varlamova. The share ownership of Li Wen Chen, Bi Feng Zhao, Heng Jian Yang, Kin Chiu Leung, Jin Jia Mai and Zhong Xiong Chen represents,
respectively, 20%, 16%, 16%, 12%, 8% and 8% of the total issued and outstanding shares of common stock of the Company.
Currently,
the Company is exploring opportunities of integrating the traditional and new industries in China. The Company will target them
in regional market and national market in China to introduce new technologies, new products, and advanced management concepts
to hospitality, biotechnology pharmaceutical and mining industries through mergers and acquisitions.
The results for the three months ended March 31, 2020 and 2019 are
not necessarily indicative of the results of operations for the full year. These financial statements and related footnotes should
be read in conjunction with the financial statements and footnotes thereto included in the Company’s Annual Report on Form
10-K for the year ended June 30, 2019, filed with the Securities and Exchange Commission.
The accompanying condensed financial statements have been prepared
by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary
to present fairly the financial position, results of operations, and cash flows at March 31, 2020 and for the related periods presented.
In December 2019, a novel strain
of coronavirus, causing a disease referred to as COVID-19, was reported to have surfaced in Wuhan, China. Since then, COVID-19
has spread all over China and many other countries in the world. In March 2020, the World Health Organization declared the COVID-19
outbreak a pandemic.
The Company’s business and results
of operations have been adversely affected and could continue to be adversely affected by the COVID-19 pandemic. Quarantines,
travel restrictions, shelter-in-place and other restrictions related to COVID-19 have impacted the Company’s abilities to
visit and meet clients in China for potential merger and acquisition projects.
The global economy has also been materially
negatively affected by COVID-19 and there is continued severe uncertainty about the duration and intensity of its impacts. The
Chinese and global growth forecast is extremely uncertain, which could seriously affect people’s investment desires in China
and internationally. While the potential economic impact brought by, and the duration of, COVID-19 may be difficult to assess or
predict, a widespread pandemic could result in significant disruption of global financial markets, reducing the Company’s
ability to access capital, which could negatively affect the Company’s liquidity.
Note 2 – GOING CONCERN
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 will
be able to raise additional funds through the capital markets.
Note 3 – SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited condensed financial statements have
been prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America
(“GAAP”) and interim financial information pursuant to the rules of the Securities and Exchange Commission (the “SEC”)
and have been consistently applied. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Interim results are not necessarily indicative of results for the full year.
These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the
Company’s Form 10-K for the fiscal year ended June 30, 2019, which was filed on August 23, 2019.
Use of Estimates
The preparation of financial statements in conformity with GAAP
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.
Depreciation, Amortization, and Capitalization
The Company records depreciation and amortization when appropriate
using the straight-line balance method over the estimated useful life of the assets. We estimate that the useful life of equipment
is 4 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.
Fair Value of Financial Instruments
Financial Accounting Standards Board (“FASB”) 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 prioritizes
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:
|
defined as observable inputs such as quoted prices in active markets for
identical assets and liabilities;
|
|
|
Level 2:
|
defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
|
|
|
Level 3:
|
defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
|
The carrying value of cash and the Company’s loan from
shareholder approximates its fair value due to their short-term maturity.
Income Taxes
The Company accounts for income taxes using the asset and liability
method in accordance with ASC 740, “Income Taxes.” The asset and liability method provides that deferred tax assets and liabilities
are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases
of assets and liabilities, and for operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured
using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company
records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.
Revenue Recognition
The Company recognizes revenue in accordance with ASC-605, “Revenue Recognition”, 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. As of March 31, 2020 the Company has not generated any revenue.
Basic and Diluted Income (Loss) Per Share
The Company computes income (loss) per share in accordance with
ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net income (loss) available to common shareholders
by the weighted average number of outstanding common shares during the period. Diluted income 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 March 31, 2020 and 2019, there were no potentially dilutive debt or equity instruments issued or outstanding.
Comprehensive Income
Comprehensive income is defined as all changes in stockholders’
equity (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 March 31, 2020 and 2019, 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. To date, the Company has not adopted a stock option plan and has not granted any stock options.
Recent Accounting Pronouncements
We have reviewed all the recently issued, but not yet effective,
accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.
Note 4 – COMMON STOCK
The Company has 75,000,000, $0.001 par value shares of common
stock authorized.
On June 28, 2017 the Company issued 5,000,000 shares of common
stock to a director for cash proceeds of $5,000 at $0.001 per share.
There were 6,250,750 shares of common stock issued and outstanding
as of March 31, 2020 and June 30, 2019.
Note 5 – COMMITMENTS AND CONTINGENCIES
Our CFO and director, Liwen Chen, agreed to provide her
own premise for our office needs. She did not charge any fee for the premise, it is for free use from February, 2020 to the end
of March, 2020 only.
Note 6 – SUBSEQUENT EVENTS
After the close of the quarter to which these financial statements
relate, the Company experienced (and continues to experience) significant adverse impacts of novel coronavirus (COVID-19) and the
related public health orders. Quarantines, travel restrictions, shelter-in-place and other restrictions related to COVID-19 have
impacted the Company’s abilities to visit and meet clients in China for potential merger and acquisition projects.
The global economy has also been materially negatively affected
by COVID-19 and there is continued severe uncertainty about the duration and intensity of its impacts. The Chinese and global growth
forecast is extremely uncertain, which could seriously affect people’s investment desires in China and internationally. While
the potential economic impact brought by, and the duration of, COVID-19 may be difficult to assess or predict, a widespread pandemic
could result in significant disruption of global financial markets, reducing the Company’s ability to access capital, which
could negatively affect the Company’s liquidity.
|
ITEM 2.
|
MANAGEMENT’ DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
FORWARD LOOKING STATEMENT NOTICE
The following discussion of our financial
condition and results of operations should be read in conjunction with our financial statements and the related notes, and other
financial information included in this Form 10-Q and our financial statements and notes thereto included in our annual report on
Form 10-K for the fiscal year ended June 30, 2019 (the “2019 Form 10-K”).
Our Management’s Discussion and
Analysis contains not only statements that are historical facts, but also statements that are forward-looking. Words such as “anticipates,”
“expects,” “intends,” “plans,” “predicts,” “potential,” “believes,”
“seeks,” “hopes,” “estimates,” “should,” “may,” “will,”
“with a view to” and variations of these words or similar expressions are intended to identify forward-looking statements.
These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult
to predict. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international,
national, and local general economic and market conditions; our ability to sustain, manage, or forecast growth; our ability to
successfully make and integrate acquisitions; new product development and introduction; existing government regulations and changes
in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or
suppliers; fluctuations and difficulty in forecasting operating results; change in business strategy or development plans; business
disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; the risk of foreign currency
exchange rates; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission.
For more information, see our discussion of risk factors located at Part I, Item 1A of our 2019 Form 10-K.
Although the forward-looking statements
in this Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently
known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual
results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged
to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of
the risks and factors that may affect our business, financial condition, and results of operations and prospects.
Financial information contained in this quarterly report and
in our unaudited interim financial statements is stated in United States dollars and are prepared in accordance with United States
generally accepted accounting principles.
DESCRIPTION OF BUSINESS
Bitmis Corp. (“the Company”, “we”,
“us” or “our”) was founded in the State of Nevada on June 6, 2016. The Company originally intended to commence
operations in the business of consulting in Thailand but it was not successful. On February 24, 2020, Anna Varlamova, the president,
treasurer, secretary and director of Bitmis Corp. (the “Company”) sold 5,000,000 shares of the Company’s common
stock, representing 80% of the total issued and outstanding shares of common stock of the Company, in a private transaction (the
“Transaction”) to Li Wen Chen, Bi Feng Zhao, Heng Jian Yang, Kin Chiu Leung, Jin Jia Mai and Zhong Xiong Chen for an
aggregate purchase price of $395,000 (the “Purchase Price”). Li Wen Chen, Bi Feng Zhao, Heng Jian Yang, Kin Chiu
Leung, Jin Jia Mai and Zhong Xiong Chen (collectively, the “Purchasers”) purchased, respectively, 1,250,000 shares,
1,000,000 shares, 1,000,000 shares, 750,000 shares, 500,000 shares and 500,000 shares of the common stock of the Company from Anna
Varlamova. The share ownership of Li Wen Chen, Bi Feng Zhao, Heng Jian Yang, Kin Chiu Leung, Jin Jia Mai and Zhong Xiong Chen represents,
respectively, 20%, 16%, 16%, 12%, 8% and 8% of the total issued and outstanding shares of common stock of the Company.
Currently, the Company is exploring opportunities
of integrating the traditional and new industries in China. The Company will target them in regional market and national market
in China to introduce new technologies, new products, and advanced management concepts to hospitality, biotechnology pharmaceutical
and mining industries through mergers and acquisitions.
Our principal office address is located at Room 1306, The Pinnacle,
No.17 Zhujiang West Road, Zhujiang New Town, Tianhe District, Guangzhou, China. Our telephone number is (86)-20-3820-6006. Our
plan of operation is forward-looking and there is no assurance that we will ever reach profitable operations. We have not generated
any revenue to date. It is likely that we will not be able to achieve profitability and would be forced to cease operations due
to the lack of funding.
We are exploring business opportunities in the following areas
in China:
Sandstone Resources
With
China’s large-scale infrastructure construction, the demand for sand and gravel are increasing rapidly. Our management team
collectively has extensive experience in the related field and is familiar with the industry’s business, operating processes,
market dynamics, trends, and directions. We plan to build a one-stop operation from mining, procurement, transportation, and sales
of sandstone.
Biotechnology
pharmaceutical industry
Considering current events and development in the health care
area in the world, the Company believes there is an increasing demand in the biotech pharmaceutical industry and is looking to
invest and explore various scientific research and technology in the relevant areas. We are looking at prospects that have leading
scientific research technology and products with good efficacy and from food or herb extractions without synthetic chemical ingredients.
Catering Chain
Our management team has extensive experience in the
catering industry and plan to bring innovative and stylish business and management model into catering business to set sail
new shops and introduce multiple brands, multiple product types with a multi-pronged approach.
In December 2019, a novel strain of coronavirus,
causing a disease referred to as COVID-19, was reported to have surfaced in Wuhan, China. Since then, COVID-19 has spread all over
China and many other countries in the world. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic.
The Company’s business and results
of operations have been adversely affected and could continue to be adversely affected by the COVID-19 pandemic. Quarantines,
travel restrictions, shelter-in-place and other restrictions related to COVID-19 have impacted the Company’s abilities to
visit and meet clients in China for potential merger and acquisition projects.
The global economy has also been materially
negatively affected by COVID-19 and there is continued severe uncertainty about the duration and intensity of its impacts. The
Chinese and global growth forecast is extremely uncertain, which could seriously affect people’s investment desires in China
and internationally. While the potential economic impact brought by, and the duration of, COVID-19 may be difficult to assess or
predict, a widespread pandemic could result in significant disruption of global financial markets, reducing the Company’s
ability to access capital, which could negatively affect the Company’s liquidity.
Employees Identification of Certain Significant Employees
We
are a start-up company and currently have four employees - our president, CEO, CFO and treasurer, secretary. We intend to hire
employees on an as needed basis.
Offices
Our principal business office is located at Room 1306, The Pinnacle,
No17 ZhujiangWest Road, Zhujiang New Town, Tianhe District, Guangzhou, China. We pay the rent of US$5,634 to the owner of the office.
Our telephone number is (86)-20-38206006.
RESULTS OF OPERATION
Results of Operations for the three months ended March 31, 2020
and 2019:
Revenue and cost of goods sold
For the three and nine months ended March 31, 2020 and 2019
the Company has not generated any revenue.
Operating expenses
Total operating expenses for the three months ended March 31,
2020 and 2019 were $0 and $4,768, respectively. Total operating expenses for the nine months ended March 31, 2020 and 2019
were $6,449 and $18,673, respectively.
Net Income/Loss
The net loss for the three months ended March 31, 2020 and 2019
were loss $0 and $4,768, respectively; The net loss for the nine months ended March 31, 2020 and 2019 were $6,449 and $18,673,
respectively.
Liquidity and capital resources
As at March 31, 2020, our total assets were $80.
CASH FLOWS FROM OPERATING ACTIVITIES
For the nine months ended March 31, 2020, net cash flows used in operating activities was $(3,969) and $(18,530) for the nine months
ended March 31, 2019.
CASH FLOWS FROM INVESTING ACTIVITIES
For the nine months ended March 31, 2020 and 2019, we used $0
of cash in investing activities.
CASH FLOWS FROM FINANCING ACTIVITIES
For the nine months ended March 31, 2020 and 2019, net cash flows
generated by financing activities was $3,223 and $0, respectively.
OFF-BALANCE SHEET ARRANGEMENTS
We have no 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.
LIMITED OPERATING HISTORY; NEED FOR ADDITIONAL CAPITAL
There is no historical financial information about us upon which
to base an evaluation of our performance. Our business is subject to risks inherent in the establishment of a new business enterprise,
including limited capital resources and possible cost overruns due to price and cost increases in services and products.
We have no assurance that future financing will be available
to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand
our operations. Equity financing could result in additional dilution to existing shareholders.