Company Quick10K Filing
Yinfu Gold
Price3.01 EPS-0
Shares10 P/E-141
MCap30 P/FCF2,035
Net Debt0 EBIT-0
TEV30 TEV/EBIT-141
TTM 2019-09-30, in MM, except price, ratios
10-K 2020-03-31 Filed 2020-06-29
10-Q 2019-12-31 Filed 2020-02-14
10-Q 2019-09-30 Filed 2019-11-14
10-Q 2019-06-30 Filed 2019-08-19
10-K 2019-03-31 Filed 2019-07-16
10-Q 2018-12-31 Filed 2019-02-19
10-Q 2018-09-30 Filed 2018-11-14
10-Q 2018-06-30 Filed 2018-08-20
10-K 2018-03-31 Filed 2018-06-28
10-Q 2017-12-31 Filed 2018-02-13
10-Q 2017-09-30 Filed 2017-11-13
10-Q 2017-06-30 Filed 2017-08-17
10-K 2017-03-31 Filed 2017-05-30
10-Q 2016-12-31 Filed 2017-01-19
10-Q 2016-09-30 Filed 2016-10-14
10-Q 2016-06-30 Filed 2016-07-13
10-K 2016-03-31 Filed 2016-07-13
10-K 2015-12-31 Filed 2016-07-13
10-Q 2015-09-30 Filed 2016-07-13
10-Q 2015-06-30 Filed 2016-07-13
10-K 2015-03-31 Filed 2016-07-11
10-Q 2014-12-31 Filed 2016-07-08
10-Q 2014-12-31 Filed 2016-07-08
10-Q 2014-06-30 Filed 2016-07-08
10-Q 2011-12-31 Filed 2012-02-21
10-Q 2011-09-30 Filed 2011-11-21
10-Q 2011-06-30 Filed 2011-08-22
10-Q 2010-12-31 Filed 2011-02-17
10-K 2010-12-31 Filed 2011-08-19
10-Q 2010-09-30 Filed 2010-11-17
10-Q 2010-06-30 Filed 2010-08-13
10-K 2010-03-31 Filed 2010-06-29
10-Q 2009-12-31 Filed 2010-02-11
8-K 2019-01-14
8-K 2018-12-05
8-K 2018-11-27

ELRE 10K Annual Report

Part I
Item 1. Business
Item 1A. Risk Factors
Item 1B. Unresolved Staff Comments.
Item 2. Properties.
Item 3. Legal Proceedings.
Item 4. Mine Safety Disclosures.
Part II
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Item 6. Selected Financial Data
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
Item 8. Financial Statements and Supplementary Data.
Note 1 - Organization and Description of Business
Note 2 - Summary of Significant Accounting Policies
Note 3 - Going Concern
Note 4 - Other Payables
Note 5 - Stockholders' Equity (Deficit)
Note 6 - Short - Term Loan
Note 7 - Leases
Note 8 - Related Party Transactions
Note 9 - Income Tax
Note 10 - Contingencies & Uncertainties
Note 11 - Subsequent Events
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
Item 9A. Controls and Procedures
Item 9B. Other Information
Item 10. Directors, Executive Officers and Corporate Governance
Item 11. Executive Compensation.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 13. Certain Relationships and Related Transactions, and Director Independence
Item 14. Principal Accounting Fees and Services
Item 15. Exhibits, Financial Statement Schedules
EX-31.1 elre_ex311.htm
EX-31.2 elre_ex312.htm
EX-32.1 elre_ex321.htm
EX-32.2 elre_ex322.htm

Yinfu Gold Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
0.10.10.0-0.0-0.1-0.12014201620182020
Assets, Equity
0.0-0.0-0.0-0.1-0.1-0.12014201620182020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12014201620182020
Ops, Inv, Fin

10-K 1 elre_10k.htm FORM 10-K elre_10k.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended March 31, 2020

 

OR

 

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File Number: 333-152242

 

YINFU GOLD CORPORATION

(Exact name of registrant as specified in its charter)

 

WYOMING

 

20-8531222

(State or other jurisdiction of incorporation or organization)

 

(IRS Employer Identification No.)

 

Suite 2408, Dongfang Science and Technology Mansion, Nanshan District, Shenzhen, China 518000

(Address of principal executive offices)

 

(86)755-8316-0998

(Registrant’s telephone number, including area code)

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ¨ Yes     x No 

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ¨ Yes     x No 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

x

Smaller reporting company

x

 

Emerging growth company

x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o NO x

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common stock

 

ELRE

 

OTCQB

 

As of June 30, 2020, we have 9,917,592 shares of common stock, par value $0.001 per share issued and outstanding.

 

 

 

 

 Yinfu Gold Corporation

 

Form 10-K

March 31, 2020

 

Table of Contents

 

 

 

 

Page

 

 

 

 

 

 

Cautionary Note Regarding Forward-Looking Statements

 

 

3

 

 

 

 

 

 

Part I

 

 

 

 

Item 1.

Business

 

 

3

 

Item 1A.

Risk Factors

 

 

6

 

Item 1B.

Unresolved Staff Comments

 

 

6

 

Item 2.

Properties

 

 

6

 

Item 3.

Legal Proceedings

 

 

6

 

Item 4.

Mine Safety Disclosures

 

 

6

 

 

 

 

 

 

Part II

 

 

 

 

Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 

 

7

 

Item 6.

Selected Financial Data

 

 

9

 

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

 

9

 

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

 

 

12

 

Item 8.

Financial Statements and Supplementary Data

 

 

13

 

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 

 

14

 

Item 9A.

Controls and Procedures

 

 

14

 

Item 9B.

Other Information

 

 

16

 

 

 

 

 

 

Part III

 

 

 

 

Item 10.

Directors, Executive Officers and Corporate Governance

 

 

16

 

Item 11.

Executive Compensation

 

 

21

 

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

 

22

 

Item 13.

Certain Relationships and Related Transactions, and Director Independence

 

 

23

 

Item 14.

Principal Accountant Fees and Services

 

 

23

 

 

 

 

 

 

Part IV

 

 

 

 

Item 15.

Exhibits and Financial Statement Schedules

 

 

24

 

Signatures

 

 

26

 

 

 
2

Table of Contents

 

PART I

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties, including, among other things, statements regarding our business strategy, future revenues and anticipated costs and expenses. Such forward-looking statements include, among others, those statements including the words “expects”, “anticipates”, “intends”, “believes” and similar language. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in the sections “Business”, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. You should carefully review the risks described in this Annual Report on Form 10-K and in other documents we file from time to time with the Securities and Exchange Commission. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances after the date of this document.

 

Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements.

 

All references in this Form 10-K to the “Company”, “Yinfu”, “we”, “us” or “our” are to Yinfu Gold Corporation.

 

Item 1. Business

 

Corporate Overview

 

Yinfu Gold Corporation (the “Company”) is a Wyoming corporation incorporated on September 1, 2005, as a for-profit company, and has a fiscal year end of March 31. The Company’s business office is located at Suite 2408, Dongfang Science and Technology Mansion, Nanshan District, Shenzhen, China 518000. The telephone number is (86)755-8316-0998.

 

The Company has limited cash on hand. We have sustained losses for year ended March 31, 2019 and has relied solely upon the funding obtained from management and significant stockholders.

 

Name Change

 

The Company was originally incorporated under the laws of the State of Wyoming as Ace Lock & Security, Inc. On March 5, 2007, we filed a Certificate of Amendment with the Wyoming Secretary of State to change our name from Ace Lock & Security, Inc. to Element92 Resources Corp. On August 16, 2010, we filed a Certificate of Amendment with the Wyoming Secretary of State to change our name from Element92 Resources Corp. to Yinfu Gold Corporation. On November 18, 2010, we received a notification from the Financial Industry Regulatory Authority (“FINRA”) that the name change was effective.

 

Change in Authorized Capital

 

On December 8, 2014, the Company increased the authorized capital from 1,000,000,000 common shares to 3,000,000,000 common shares.

 

 
3

Table of Contents

 

Reverse Split

 

The record date for the determination of stockholders entitled to consent to the 1 for 100 Reverse Split was October 17, 2016 (the “Record Date”). As of that date, we had 991,770,362 issued and outstanding shares of common stock, par value $0.001. Each share of our common stock entitles the holder thereof to one vote on each matter that may come before a meeting or vote of our stockholders.

 

The Reverse Split was approved by the holders of a majority of our stock entitled to vote on the Record Date. The vote required to approve the Reverse Split was 50% of the shares entitled to vote plus one vote, a simple majority. The actual affirmative vote was 58.84% of the issued shares.

 

On November 9, 2016, we filed a Schedule 14C with Securities and Exchange Commission. On February 16, 2017, the Company received a notification from the Financial Industry Regulatory Authority (“FINRA”) that our application for Reverse Split was approved by FINRA and the market effective date was February 17, 2017. The post-split total shares outstanding is 9,917,592 shares with the fractional shares rounded down to the next whole share.

 

Acquisition and disposition

 

On April 11, 2017, we acquired Yinfu Gold International Holdings Limited (“HK”), a company incorporated in Hong Kong, and HK’s subsidiary, Yinfu International Holdings Limited (“WOFE”), a wholly owned foreign enterprise incorporated in the People’s Republic of China. The acquired entities are owned by the Company’s management; therefore, the transaction has been accounted for as a business combination under common control in accordance to ASC-805-30-5, in which the assets and liabilities of HK and WOFE have been presented at their carrying values at the date of the transaction.

 

During the year ended March 31, 2018, we disposed the discontinued business, Element Resources International Limited. No gain or loss was recognized as a result of the disposal.

 

The Company has no present plans to be acquired or to merge with another company, nor does the Company, nor any of its shareholders, have plans to enter into a change of control or similar transaction.

 

Current Business

 

The Company was originally incorporated under the laws of the State of Wyoming as Ace Lock & Security, Inc. The Company was established as an exploration stage company engaged in the search for commercially viable minerals. We no longer pursue opportunities related to the exploration of minerals. Our name changed to Yinfu Gold Corporation, as filed with the State of Wyoming on November 18, 2010, signified that we have commenced working toward a major change in our business plan and business model.

 

Effective November 20, 2014, the Company executed a Sale and Purchase Agreement (the “Agreement”) to acquire 100% of the shares and assets of China Enterprise Overseas Investment & Finance Group Limited (“CEI”). Pursuant to the agreement, the Company has agreed to issue 800 million restricted common shares of the Company to the owners of CEI. In connection with the acquisition, the Company acquired the domain http://www.dahuacheng.com with a customer database consisting of 31 million members as of November 17, 2014.

 

 
4

Table of Contents

 

Pursuant to the Agreement, on or before January 1, 2015, CEI was to deliver to the Company, duly authorized, properly and fully executed documents in English, evidencing and confirming the sale of 100% of the shares of CEI and its assets, specifically detailing the assets and an asset valuation prepared by an independent professionally qualified valuator. The valuation report was received by the Company on January 28, 2015.

 

Additionally, the Agreement stated that both parties agreed that all the shares, pursuant to the terms and conditions of the agreement, shall be issued as soon as practicable following the signing of the agreement, but all the shares so issued were to be held in escrow until all terms and conditions are fulfilled.

 

As of the date of this filing, the various terms and conditions of the Agreement have been fulfilled on January 28, 2015, therefore, the share certificates representing the shares have been issued in the names of the CEI shareholders and the Agreement between the Company and CEI was closed on January 28, 2015.

 

Currently, we do not yet have a source of revenue. We are not able to fund our cash requirements through our current operations. Historically, we were able to raise a limited amount of capital through a private placement of our equity stock and through loans from our president, but we are uncertain about our continued ability to obtain adequate capital to fund operating losses until we become profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations, our shareholders may lose some or all of their investment and our business may fail.

 

Our president and directors continue to provide their labor at no charge. When we are able to do so, we plan to hire up to 20 staff members during the next 12 months of operation, and will also rely on the services of independent professionals for the auditing, evaluation and legal requirements for our listing business.

 

Markets

 

We are working to establish and build a P2P online lending service platform and become one of the P2P on-line lending service providers in China.

 

Competition

 

Barrier to entry in the industry is low and there are many competitors. Our competitors have significantly greater financial and marketing resources than we do. There are no assurances that our efforts to compete in the marketplace will be successful.

 

Seasonality

 

The nature of our products and services does not appear to be affected by seasonal variations.

 

Government Regulations

 

Other than the required adherence to general business laws and regulatory disclosure, our services do not appear to be affected by any specific additional regulations. However, this does not preclude the possibility that governments where we operate or may eventually operate will not institute regulations that will make our company difficult or impossible to operate.

 

Intellectual Property

 

We currently hold rights to a registered database with 31 million members, and we have not filed for copyright or trademark protection for our name or services.

 

 
5

Table of Contents

 

Research and Development

 

We have spent no time on specialized research and development activities, and have no plans to undertake any research or development in the future.

 

Environmental Matters

 

Our operations are not subject to environmental laws, including any laws addressing air and water pollution and management of hazardous substances and wastes and we do not anticipate capital expenditures for environmental control facilities.

 

Employees

 

We currently have eight employees, including our president and directors who serve without remuneration. To the best of our knowledge, we are in compliance with local prevailing wage regulations. None of our employees is represented by any collective bargaining agreement, and our relationship with our employees is good.

 

ADDITIONAL INFORMATION

 

We are required to file quarterly, annual and current reports. The Company files its reports electronically with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements, and other electronic information regarding issuers that file electronically with the SEC at http://www.sec.gov.

 

Item 1A. Risk Factors

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

Item 1B. Unresolved Staff Comments.

 

None.

 

Item 2. Properties.

 

Our principal place of business and corporate offices are located at Suite 2408, Dongfang Science and Technology Mansion, Nanshan District, Shenzhen, China 518000. The telephone number is (86)755-8316-0998.

 

Item 3. Legal Proceedings.

 

We are not involved in any pending legal proceeding nor are we aware of any pending or threatened litigation against us.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

 
6

Table of Contents

 

PART II

 

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 

Market Information

 

Our common stock is not traded on any exchange but is currently available for trading in the over‑the‑counter market and is quoted on the Over the Counter Bulletin Board (“OTCBB”) and on the OTCQB operated by the OTC Markets Group, Inc. under the symbol “ELRE.” Our stock was approved for quotation on the OTCBB in 2007. Trading in stocks quoted on these markets is often thin and is characterized by wide fluctuations in trading prices due to many factors that may have little to do with a company’s operations or business prospects.

 

Over the counter securities are not listed or traded on the floor of an organized national or regional stock exchange. Instead, these securities transactions are conducted through a telephone and computer network connecting dealers in stocks. Over-the-counter issuers are traditionally smaller companies that do not meet the financial and other listing requirements of a regional or national stock exchanges.

 

Trades in our common stock may be subject to Rule 15g‑9 of the Securities Exchange Act of 1934, as amended, which imposes requirements on broker/dealers who sell securities subject to the rule to persons other than established customers and accredited investors. For transactions covered by the rule, broker/dealers must make a special suitability determination for purchasers of the securities and receive the purchaser’s written agreement to the transaction before the sale.

 

The SEC also has rules that regulate broker/dealer practices in connection with transactions in “penny stocks.” Penny stocks generally are equity securities with a price of less than $5.00 (other than securities listed on certain national exchanges, provided that the current price and volume information with respect to transactions in that security is provided by the applicable exchange or system). The penny stock rules require a broker/dealer, before effecting a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document prepared by the SEC that provides information about penny stocks and the nature and level of risks in the penny stock market. The broker/dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker/dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker/dealer and salesperson compensation information, must be given to the customer orally or in writing before effecting the transaction, and must be given to the customer in writing before or with the customer’s confirmation. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for shares of our common stock. As a result of these rules, investors may find it difficult to sell their shares.

 

The following table sets forth the quarterly high and low bid prices for the common stock from March 31, 2018 to March 31, 2020. The prices set forth below represent inter-dealer quotations, without retail markup, markdown or commission and may not be reflective of actual transactions

 

 
7

Table of Contents

 

 

 

High

 

 

Low

 

Quarter ended March 31, 2018

 

$ 9.3

 

 

 

3.0

 

Quarter ended June 30, 2018

 

$ 4.3

 

 

 

2.0

 

Quarter ended September 30, 2018

 

$ 5.1

 

 

 

1.1

 

Quarter ended December 31, 2018

 

$ 1.7

 

 

 

0.8

 

Quarter ended March 31, 2019

 

$ 1.2

 

 

 

0.7

 

Quarter ended June 30, 2019

 

$ 4.0

 

 

 

1.1

 

Quarter ended September 30, 2019

 

$ 3.9

 

 

 

3.9

 

Quarter ended December 31, 2019

 

$ 3.9

 

 

 

2.5

 

Quarter ended March 31, 2020

 

$ 4.8

 

 

 

3.5

 

 

Holders

 

As of March 31, 2020, there were 1,352 stockholders of record, and an aggregate of 9,917,592 shares of our common stock were issued and outstanding.

 

The transfer agent of our company’s common stock is Transfer Online, Inc. at SE 512 Salmon Street, Portland, OR 97214.

 

Description of Securities

 

The authorized capital stock of our company consists of 3,000,000,000 shares of common stock, at $0.001 par value.

 

Dividend Policy

 

We have not paid any cash dividends on our common stock and have no present intention of paying any dividends on the shares of our common stock. Our current policy is to retain earnings, if any, for use in our operations and in the development of our business. Our future dividend policy will be determined from time to time by our board of directors.

 

 
8

Table of Contents

 

Equity Compensation Plan Information

 

We do not have in effect any compensation plans under which our equity securities are authorized for issuance and we do not have any outstanding stock options.

 

Recent Sales of Unregistered Securities

 

We did not sell any equity securities, which were not registered under the Securities Act during the year ended March 31, 2020, that were not otherwise disclosed on our quarterly reports on Form 10-Q or our current reports on Form 8-K filed during the year ended March 31, 2020.

 

Purchase of Equity Securities by the Issuer and Affiliated Purchasers

 

We did not purchase any of our shares of common stock or other securities during our fourth quarter of our fiscal year ended March 31, 2020.

 

Item 6. Selected Financial Data

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion should be read in conjunction with our audited financial statements and the related notes that appear elsewhere in this annual report. The following discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Item 1A.

 

Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.

 

Overview

 

Yinfu Gold Corporation (the “Company”) is a Wyoming corporation incorporated on September 1, 2005, under the name Ace Lock & Security, Inc. Our name was changed to Yinfu Gold Corporation as of November 18, 2010. We are working to establish and build a peer-to-peer (“P2P”) online lending service platform.

 

We have had limited operations and based upon our reliance on the sale of our common stock and the advances from our president, there are no assurances of any future source of funds for our operations.

 

Plan of Operation

 

We devote substantial efforts to establishing a P2P online lending service platform. However, our planned principal operations have not yet commenced.

 

In 2020, we plan to establish the Company as a known P2P online lending service provider. We provide an online lending platform that matches lenders directly with the borrowers and charge a commission fee. Through our P2P platform, lenders can earn higher returns compared to savings and investment products offered by banks, while borrowers can borrow money at lower interest rate.

 

Need for Additional Capital

 

The Company has not generated any revenues from operations, and may be unable to fund on-going activities. We cannot guarantee that we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in developing our own hardware and software, and the possibility of new regulations that will make our company difficult or impossible to operate.

 

 
9

Table of Contents

 

If we are unable to meet our needs for cash from either our operations, or possible alternative sources, then we may be unable to continue, develop, or expand our operations.

 

If we are unable to complete any phase of our development program or fail to raise additional capital to maintain our operations in the future, we may be unable to carry out our full business plan or we may be forced to cease operations.

 

Results of Operations

 

We have generated no revenues and have incurred $207,316 in expenses for the year ended March 31, 2020.

 

The following table provides selected financial data about our company as of March 31, 2020 and 2019.

 

 

 

March 31,

2020

 

 

March 31,

2019

 

Cash

 

$ 775

 

 

$ 519

 

Total Assets

 

 

118,940

 

 

 

7,558

 

Total Liabilities

 

 

1,721,723

 

 

 

1,423,662

 

Stockholders’ Deficit

 

$ (1,602,783 )

 

$ (1,416,104 )

 

As of March 31, 2020, the Company’s cash balance was $775 compared to $519 as of March 31, 2019, and our total assets as of March 31, 2020, were $118,940 compared with $7,558 as of March 31, 2019. The increase in total assets was due to the recognition of operating lease right of use asset, net as of March 31, 2020.

 

As of March 31, 2020, the Company had total liabilities of $1,721,723 compared with total liabilities of $1,423,662 as of March 31, 2019. The increase in total liabilities was primarily attributed to an increase in related party debt owed to the President of the Company, and an increase in accounts payable and accrued liabilities, other payables, and operating lease liabilities. The Company received $141,088 as deposit from an unrelated third party to secure a potential joint venture with the Company.

 

 

 

Year Ended

March 31,

2020

 

 

Year Ended

March 31,

2019

 

Revenue

 

$ -

 

 

$ -

 

Operating Expenses

 

 

 

 

 

 

 

 

General and administrative

 

 

158,412

 

 

 

214,852

 

Professional fees

 

 

47,939

 

 

 

48,473

 

Total Operating Expenses

 

 

206,351

 

 

 

263,325

 

Loss from Operations

 

$ 206,351

 

 

$ (263,325 )

 

Revenues

 

The Company has generated no operating revenues during the years ended March 31, 2020 and 2019.

 

Operating expenses

 

For the year ended March 31, 2020, total operating expenses were $206,351 which consisted of general and administrative fees and professional fees. For the year ended March 31,2019, total operating expenses were $263,325 which consisted of general and administrative fees and professional fees. The decrease in operating expense was due to the decrease in general and administrative fees, which mainly resulted from lessor daily expenditure occurred, such as the travelling expense, entertainment expense,etc, for the year ended March 31, 2020.

 

 
10

Table of Contents

 

Liquidity and Capital Resources

 

Working Capital

 

 

 

As of

March 31,

2020

 

 

As of

March 31,

2019

 

Current Assets

 

$ 1,721

 

 

$ 7,558

 

Current Liabilities

 

$ 1,675,918

 

 

$ 1,423,662

 

Working Capital Deficiency

 

$ (1,674,197 )

 

$ (1,416,104 )

 

As of March 31, 2020, the Company had a working capital deficiency of $1,674,197 compared with working capital deficiency of $1,416,104 as of March 31, 2019. The increase in working capital deficiency was primarily attributed to the increase in current liabilities due to an increase in account payable and notes payable to the President of the Company.

 

Cash Flows

 

 

 

Year Ended

March 31,

2020

 

 

Year Ended

March 31,

2019

 

Cash Used in Operating Activities

 

$ (39,870 )

 

$ (317,633 )

Cash Flows from Investing Activities

 

$ -

 

 

$ -

 

Cash Flows from Financing Activities

 

$ 39,532

 

 

$ 250,092

 

Effects on changes in foreign exchange rate

 

$ 594

 

 

$ 13,006

 

Net (Decrease)/Increase in Cash During the Year

 

$ 256

 

 

$ (54,535 )

 

Cash Flows Used in Operating Activities

 

During the year ended March 31, 2020, the Company had $39,870 in cash used in operating activities which was mainly attributed to loss from operations of $207,316 partially offset by decrease in other receivable of $2,297 and increase in accounts payable and accrued liabilities of $15,255, compared to cash used in operating activities of $317,633 during the year ended March 31, 2019. The decrease in cash used for operating activities was due to the decrease in net loss and increase in accounts payable, accrued liabilities, operating lease liabilities, and other payables for the year ended March 31, 2020. Other payables consist of $138,045 received as deposit from an unrelated third party to secure a potential joint venture with the Company.

 

 
11

Table of Contents

 

Cash Flows from Investing Activities

 

During the years ended March 31, 2020 and 2019, the Company used no cash in investing activities.

 

Cash Flows from Financing Activities

 

During the years ended March 31, 2020 and 2019, the President had advanced the Company $145,647 for operating expenses, received $119,981 from the Company as repayments, and collected $12,555 on behalf of the Company as a deposit for a potential joint venture. During the years ended March 31, 2020 and 2019, the repayment of unrelated party short-term loan was $1,436 and $0 respectively for operating expenses.

 

Off-Balance Sheet Arrangements

 

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 is material to investors.

 

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

 
12

Table of Contents

 

Item 8. Financial Statements and Supplementary Data.

 

YINFU GOLD CORPORTION

 

AUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

MARCH 31, 2020 AND 2019

 

(STATED IN U.S. DOLLARS)

 

 

 
13

Table of Contents

 

Content

 

Page

 

 

 

 

 

Report of Independent Registered Public Accounting Firm

 

 

F-2

 

 

 

 

 

 

Consolidated Balance Sheets

 

F-3

 

 

 

 

 

 

Consolidated Statements of Operations and Comprehensive Loss

 

F-4

 

 

 

 

 

 

Consolidated Statements of Stockholders’ Deficiency

 

F-5

 

 

 

 

 

 

Consolidated Statements of Cash Flows

 

F-6

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

F-7 - F-16

 

 

 
F-1

Table of Contents

  

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To:

The Board of Directors and Stockholders of
Yinfu Gold Corp.

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of Yinfu Gold Corp. (the Company) as of March 31, 2020 and 2019, and the related statements of operations, stockholders’ equity, and cash flows for each of the years in the two-year period ended March 31, 2020, and 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 March 31, 2020 and 2019, and the results of its operations and its cash flows for each of the years in the two-year period ended March 31, 2020.

 

Explanatory Paragraph Regarding Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company had incurred substantial losses during the year, and has a working capital deficit, which raises substantial doubt about its ability to continue as a going concern. Management’s plan in regards to these matters are described in Note 3. These 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 in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit 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.

 

/s/ JLKZ CPA LLP

 

JLKZ CPA LLP.

Flushing, New York

June 29, 2020

 

We have served as the Company’s auditor since December 2018 

 

 
F-2

Table of Contents

 

Yinfu Gold Corporation

Consolidated Balance Sheets

(Stated in U.S. Dollars)

   

 

 

March 31,

 

 

March 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$ 775

 

 

$ 519

 

Other receivables

 

 

946

 

 

 

7,039

 

Total current assets

 

 

1,721

 

 

 

7,558

 

Non-current assets

 

 

 

 

 

 

 

 

Operating lease right of use asset, net

 

 

117,219

 

 

 

-

 

Total non-current assets

 

 

117,219

 

 

 

-

 

Total Assets

 

$ 118,940

 

 

$ 7,558

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

118,661

 

 

 

109,241

 

Other payables

 

 

141,088

 

 

 

-

 

Short-term loan

 

 

162,321

 

 

 

169,309

 

Operating lease liabilities - current

 

 

83,070

 

 

 

-

 

Note payable - related party

 

 

1,170,778

 

 

 

1,145,112

 

Total Current Liabilities

 

 

1,675,918

 

 

 

1,423,662

 

Non-current liabilities

 

 

 

 

 

 

 

 

Operating lease liabilities - noncurrent

 

 

45,805

 

 

 

-

 

Total Non-current Liabilities

 

 

45,805

 

 

 

-

 

Total Liabilities

 

 

1,721,723

 

 

 

1,423,662

 

 

 

 

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

 

 

Common stock, ($0.001 par value, 3,000,000,000 shares authorized, 9,917,592 shares issued and outstanding as of March 31,2020 and 2019)

 

 

9,918

 

 

 

9,918

 

Accumulated deficit

 

 

(1,641,935 )

 

 

(1,434,619 )

Accumulated other comprehensive loss

 

 

29,234

 

 

 

8,597

 

Total Stockholders’ Deficit

 

 

(1,602,783 )

 

 

(1,416,104 )

Total Liabilities and Stockholders’ Deficit

 

$ 118,940

 

 

$ 7,558

 

 

  The accompanying notes are an integral part of these consolidated financial statements

 

 
F-3

Table of Contents

 

Yinfu Gold Corporation

Consolidated Statements of Income and Comprehensive Income

(Stated in U.S. Dollars)

   

 

 

For the Years Ended March 31,

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

Revenue

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

General and administrative

 

 

158,412

 

 

 

214,852

 

Professional fees

 

 

47,939

 

 

 

48,473

 

Total operating expenses

 

 

206,351

 

 

 

263,325

 

 

 

 

 

 

 

 

 

 

Net loss from operations

 

 

(206,351 )

 

 

(263,325 )

 

 

 

 

 

 

 

 

 

Other Income and (Expense)

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,251 )

 

 

-

 

Other income (expense)

 

 

286

 

 

 

-

 

Total other income(loss)

 

 

(965 )

 

 

-

 

 

 

 

 

 

 

 

 

 

Net income (loss) before income taxes

 

 

(207,316 )

 

 

(263,325 )

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(207,316 )

 

 

(263,325 )

 

 

 

 

 

 

 

 

 

Basic and diluted loss per common share

 

 

(0.02 )

 

 

(0.03 )

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic and diluted

 

 

9,917,592

 

 

 

9,917,592

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

20,637

 

 

 

4,209

 

Total comprehensive income

 

 

(186,679 )

 

 

(259,116 )

 

 

 

 

 

 

 

 

 

Basic and diluted loss per common share

 

 

(0.02 )

 

 

(0.02 )

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic and diluted

 

$ 9,917,592

 

 

$ 9,917,592

 

 

The accompanying notes are an integral part of these consolidated financial statements

 

 
F-4

Table of Contents

 

Yinfu Gold Corporation

Consolidated Statement of Changes in Stockholders’ Deficiency

 

(Stated in U.S. Dollars)

 

 

 

Common Stock

 

 

 

 

 

 Accumulated

 

 

 

 

 

 

Number

of shares

 

 

Par value

 

 

Accumulated

Deficit

 

 

other comprehensive loss

 

 

Total

 

Balance as of March 31,2018

 

 

9,917,592

 

 

$ 9,918

 

 

$ (1,171,294 )

 

$ (12,558 )

 

$ (1,173,934 )

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,155

 

 

 

21,155

 

Net loss

 

 

 

 

 

 

 

 

 

 

(263,325 )

 

 

 

 

 

 

(263,325 )

Balance as of March 31,2019

 

 

9,917,592

 

 

 

9,918

 

 

 

(1,434,619 )

 

 

8,597

 

 

 

(1,416,104 )

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,637

 

 

 

20,637

 

Net loss

 

 

 

 

 

 

 

 

 

 

(207,316 )

 

 

 

 

 

 

(207,316 )

Balance as of March 31,2020

 

 

9,917,592

 

 

 

9,918

 

 

 

(1,641,935 )

 

 

29,234

 

 

 

(1,602,783 )

 

The accompanying footnotes are an integral part of these consolidated financial statements

 

 
F-5

Table of Contents

 

Yinfu Gold Corporation

Consolidated Statements of Cashflows

(Stated in U.S. Dollars)

 

 

 

For the Years Ended March 31,

 

 

 

2020

 

 

2019

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

 

(207,316 )

 

 

(263,325 )

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Other receivables

 

 

2,297

 

 

 

(1,124 )

Accounts payable and accrued liabilities

 

 

15,255

 

 

 

-

Operating lease liabilities

 

 

11,849

 

 

 

-

 

Other payables

 

 

138,045

 

 

 

(53,184 )

Net cash used in operating activities

 

$ (39,870 )

 

$ (317,633 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Repayment of short-term loans

 

 

(1,436 )

 

 

-

 

Proceeds from note payable - related parties

 

 

40,968

 

 

 

250,092

 

Net cash provided by financing activities

 

$ 39,532

 

 

$ 250,092

 

 

 

 

 

 

 

 

 

 

Effect on changes in foreign exchange rate

 

 

(338 )

 

 

13,006

 

Net increase in cash and cash equivalents

 

 

594

 

 

 

(54,535 )

Cash and cash equivalents, beginning of period

 

 

519

 

 

 

55,054

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$ 775

 

 

$ 519

 

 

 

 

-

 

 

 

-

 

Supplementary non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Recognized ROU assets through lease liabilities

 

$ 119,154

 

 

$ -

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest

 

$ -

 

 

$ -

 

Cash paid for income taxes

 

$ -

 

 

$ -

 

   

The accompanying footnotes are an integral part of these consolidated financial statements

 

 
F-6

Table of Contents

 

Yinfu Gold Corporation

Notes to Audited Consolidated Financial Statements

(Stated in U.S. Dollars)

 

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Yinfu Gold Corporation (the “Company”) is a Wyoming corporation incorporated on September 1, 2005 under the name Ace Lock and Security, Inc. with a fiscal year end of March 31. On March 5, 2007, the Company filed a Certificate of Amendment with the Wyoming Secretary of State to change the name to Element92 Resources Corp. and increased the authorized capital to 1,000,000,000 common shares. On August 16, 2010 the Company filed an amendment with the State of Wyoming changing its name from Element92 resources Corp. to Yinfu Gold Corporation and on November 18, 2010, the Company received a notification from the Financial Industry Regulatory Authority (“FINRA”) that the Company’s change of name to Yinfu Gold Corporation was posted as effective with FINRA. The Company was established as an exploration stage company engaged in the search for commercially viable minerals.

 

The Company no longer pursues opportunities related to the exploration of minerals. The name change signified that the Company has commenced working toward a major change in our business plan and business model.

 

Effective November 20, 2014, the Company executed a Sale and Purchase Agreement (the “Agreement”) to acquire 100% of the shares and assets of China Enterprise Overseas Investment & Finance Group Limited (“CEI”), a British Virgin Islands corporation. Pursuant to the Agreement, the Company has agreed to issue 800 million restricted common shares of the Company to the owners of CEI.

 

Pursuant to the Agreement, on or before January 1, 2015, CEI was to deliver to the Company, duly authorized, properly and fully executed documents in English, evidencing and confirming the sale of 100% of the shares of CEI and its assets, specifically detailing the assets and an asset valuation by a third-party valuator. The valuation report was received by the Company on January 28, 2015.

 

Additionally, the Agreement stated that both parties agreed that all shares issued, pursuant to the terms and conditions of the agreement, were to be issued as soon as practicable following the signing of the agreement, but all shares so issued were to be held in escrow until all terms and conditions are met.

 

The various terms and conditions of the Agreement were fulfilled on January 28, 2015, therefore, the share certificates representing the shares have been issued in the names of the CEI shareholders and the Agreement between the Company and CEI was closed on January 28, 2015.

 

On April 11, 2017, the Company acquired Yinfu Gold International Holdings Limited (“HK”), a company incorporated in Hong Kong, and HK’s subsidiary, Yinfu International Holdings Limited (“WOFE”), a wholly owned foreign enterprise incorporated in the People’s Republic of China. The acquired entities are owned by the Company’s management; therefore, the transaction has been accounted for as a business combination under common control in accordance to ASC-805-30-5, in which the assets and liabilities of HK and WOFE have been presented at their carrying values at the date of the transaction.

 

During the year ended March 31, 2018, we disposed the discontinued business, Element Resources International Limited. No gain or loss was recognized as a result of the disposal.

 

The accompanying comparative financial statements have been retroactively restated to combine the financial data of previously separate entities with those of the Company.

 

 
F-7

Table of Contents

 

 Yinfu Gold Corporation

Notes to Audited Consolidated Financial Statements

(Stated in U.S. Dollars)

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The financial statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The financial statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States and presented in US dollars.

 

Principles of Consolidation

 

The accompanying consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation.

 

Name of Subsidiary

 

State or Jurisdiction of

Organization of Entity

 

Attributable

equity interest

 

Yinfu Group Overseas Investment & Finance Limited (“BVI”)

 

British Virgin Island

 

 

100 %

Yinfu Group International Holdings Limited (“HK”)

 

Hong Kong

 

 

100 %

Yinfu International Holdings Limited (“WOFE”)

 

Shenzhen, People Republic of China

 

 

100 %

Yinfu International Holdings Limited Huizhou Branch (“WOFE”)

 

Huizhou, People Republic of China

 

 

100 %

 

Yinfu Group Overseas Investment & Finance Limited is a holding entity established in BVI that did not have any activities or operations since inception.

 

On June 25, 2019, the management decided to abandon the BVI entity and transfer its subsidiaries Yinfu Group International Holdings Limited and Yinfu International Holdings Limited (“WOFE”) to Yinfu Gold Corp.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with maturities of less than three months from inception, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value.

 

Foreign Currency Translation and Re-measurement

 

In accordance with ASC 830, “Foreign Currency Matters”, the Company’s foreign operations whose functional currency is not the U.S. dollar, the assets and liabilities are translated into U.S. dollars at current exchange rates. Resulting translation adjustments are reflected as other comprehensive income (loss) in stockholders’ equity. Revenue and expenses are translated at average exchange rates for the period. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are charged to operations as incurred. The Company had foreign currency translations gain (loss) of $20,637 and $4,209 for the years ended March 31, 2020 and 2019 respectively.

 

 
F-8

Table of Contents

 

Yinfu Gold Corporation

Notes to Audited Consolidated Financial Statements

(Stated in U.S. Dollars)

Concentrations of Credit Risk

 

The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables that it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

 

Financial Instruments

 

The Company follows ASC 820, “Fair Value Measurements and Disclosures,” which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

Level 1

 

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

 

Level 2

 

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

 

Level 3

 

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

 

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2020. The carrying values of our financial instruments, including, cash and cash equivalents; accounts payable and accrued expenses; and loans and notes payable approximate their fair values due to the short-term maturities of these financial instruments. 

 

 
F-9

Table of Contents

 

Yinfu Gold Corporation

Notes to Audited Consolidated Financial Statements

(Stated in U.S. Dollars)

 

Business Combinations

 

In accordance with ASC 805-10, “Business Combinations”, the Company accounts for all business combinations using the acquisition method of accounting. Under this method, assets and liabilities, including any remaining non-controlling interests, are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed, and non-controlling interests is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities, or non-controlling interests made subsequent to the acquisition date, but within the measurement period, which is up to one year, are recorded as adjustments to goodwill. Any adjustments subsequent to the measurement period are recorded in income. Any cost or equity method interest that the Company holds in the acquired company prior to the acquisition is re-measured to fair value at acquisition with a resulting gain or loss recognized in income for the difference between fair value and the existing book value. Results of operations of the acquired entity are included in the Company’s results from the date of the acquisition onward and include amortization expense arising from acquired tangible and intangible assets.

 

Income Taxes, Deferred Income Taxes and Valuation Allowance

 

The Company accounts for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. For the years ended March 31, 2020 and 2019, since the Company has not generated any income, no provision was made for income taxes. Further, no deferred tax assets or liabilities were recognized as at March 31, 2020 and 2019.

 

Net Loss Per Share of Common Stock

 

The Company has adopted ASC Topic 260, “Earnings per Share,” (“EPS”) which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

 

The following table sets forth the computation of basic earnings per share, for the years ended March 31, 2020 and 2019:

 

 

 

Year Ended March 31,

 

 

 

2020

 

 

2019

 

Net loss

 

$ (207,316 )

 

$ (263,325 )

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic and diluted

 

 

9,917,592

 

 

 

9,917,592

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per common share

 

$ (0.02 )

 

$ (0.03 )

 

 
F-10

Table of Contents

 

Yinfu Gold Corporation

Notes to Audited Consolidated Financial Statements

(Stated in U.S. Dollars)

 

Commitments and Contingencies

 

The Company follows ASC 450-20, “Loss Contingencies,” to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no commitments or contingencies as of March 31, 2020 and 2019.

 

Leases

 

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities - current, and operating lease liabilities - noncurrent on the balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our balance sheets.

 

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

 

Advertising Costs

 

The Company follows ASC 720, “Advertising Costs,” and expenses costs as incurred. No advertising costs were incurred for the years ended March 31, 2020 and 2019.

 

Related Parties

 

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions. See note 6.

 

Revenue Recognition

 

The Company adopted ASU 201409, Topic 606 on April 1, 2018, using the modified retrospective method. ASC 606 requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

 

The adoption of Topic 606 has no impact on the Company’s financials as the Company has not generated any revenues.

 

Recent Accounting Pronouncements

 

In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU provides an exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. This update also (1) requires an entity to recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, (2) requires an entity to evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which goodwill was originally recognized for accounting purposes and when it should be considered a separate transaction, and (3) requires that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for the Company for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements.

 

 
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Yinfu Gold Corporation

Notes to Audited Consolidated Financial Statements

(Stated in U.S. Dollars)

 

In February 2020, the FASB issued ASU 2020-02, “Financial Instruments – Credit Losses (Topic 326) and Leases (topic 842) Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (topic 842)”. This ASU provides guidance regarding methodologies, documentation, and internal controls related to expected credit losses. This ASU is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements.

 

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820), – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which makes a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement amongst or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in this Update modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the potential impacts of ASU 2018-13 on its consolidated financial statements.

 

In July 2018, the FSAB issued ASU 2018-10 ASC Topic 842: “Codification Improvements to Leases” The amendments are to address stakeholders’ questions about how to apply certain aspects of the new guidance in Accounting Standards Codification (ASC) 842, Leases. The clarifications address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. The amendments in ASC Topic 842 are effective for EGC for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. While early application is permitted, including adoption in an interim period, the Company has not elected to early adopt. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements.

 

In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842). This update provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the prior comparative period’s financials will remain the same as those previously presented. Entities that elect this optional transition method must provide the disclosures that were previously required. The Company is evaluating the effect this new guidance will have on our consolidated financial statements and related disclosures.

 

 
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Yinfu Gold Corporation

Notes to Audited Consolidated Financial Statements

(Stated in U.S. Dollars)

 

 

In March 2019, the FASB issued ASU 2019-01: “Leases (Topic 842)-Codification Improvements”. The amendments in this ASU (1) reinstate the exception in Topic 842 for lessors that are not manufacturers or dealers, specifically, those lessors will use their cost, reflecting any volume or trade discounts that may apply, as the fair value of the underlying asset. However, if significant time lapses between the acquisition of the underlying asset and lease commencement, those lessors will be required to apply the definition of fair value (exit price) in Topic 820; (2) address the concerns of lessors within the scope of Topic 942 about where “principal payments received under leases” should be presented, specifically, lessors that are depository and lending institutions within the scope of Topic 942 will present all “principal payments received under leases” within investing activities; and (3) clarify the Board’s original intent by explicitly providing an exception to the paragraph 250-10-50-3 interim disclosure requirements in the Topic 842 transition disclosure requirements. The effective date of the amendments in this ASU is for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years for any of the following: 1. A public business entity; 2. A not-for-profit entity that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market; and 3. An employee benefit plan that files financial statements with the U.S. Securities and Exchange Commission (SEC). For all other entities, the effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application is permitted. An entity should early apply the amendments as of the date that it first applied Topic 842, using the same transition methodology in accordance with paragraph 842-10-65-1(c). The Company is evaluating the effect this new guidance will have on its consolidated financial statements and related disclosures.

 

In February 2016 the FASB issued ASU 2016-02, “Leases (Topic 842).” This standard amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, which means that it will be effective for us in the first quarter of our fiscal year beginning January 1, 2019. Early adoption is permitted. This standard is required to be adopted using a modified retrospective approach. We expect to elect certain available transitional practical expedients. In July 2018 the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements,” which allows for the adoption of this standard to be applied at the beginning of the most recent fiscal year as opposed to at the beginning of the earliest year presented.

 

We plan to adopt under the provisions allowed under ASU 2018-11. While we continue to evaluate the impact of our pending adoption of ASU 2016-02 on our consolidated financial statements, we expect that the rental properties designated as operating leases will be recognized as right-of-use assets and corresponding lease liabilities on our consolidated balance sheets upon adoption.

 

Management has considered all other recent accounting pronouncements issued since the last audit of our financial statements. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

 

 
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Yinfu Gold Corporation

Notes to Audited Consolidated Financial Statements

(Stated in U.S. Dollars)

 

NOTE 3 - GOING CONCERN

 

The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not established an ongoing source of revenues sufficient to cover its operating cost, and requires additional capital to commence its operating plan. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. As of March 31, 2020, the Company had an accumulated deficit of $1,641,935 and net loss of $207,316 and net cash used in operations of $51,876 for the year ended March 31, 2020. Losses have principally occurred as a result of the substantial resources required for the operating of the two new wholly owned subsidiaries. These factors raise substantial doubt about its ability to continue as a going concern.

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan to obtain such resources for the Company include: sales of equity instruments; traditional financing, such as loans; and obtaining capital from management and significant stockholders sufficient to meet its minimal operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.

 

There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

 
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Yinfu Gold Corporation

Notes to Audited Consolidated Financial Statements

(Stated in U.S. Dollars)

 

NOTE 4 – OTHER PAYABLES

 

As of March 31, 2020, the Company received $141,088 as deposit from an unrelated third party to secure a potential joint venture with the Company. The money shall be returned to the interested third party upon completion of the joint venture.

 

NOTE 5 – STOCKHOLDERS’ EQUITY (DEFICIT)

 

Common Stock

 

The Company is authorized to issue 3,000,000,000 shares of common stock.

 

As of March 31, 2020, and March 31, 2019, the Company has 9,917,592 shares of common stock issued and outstanding.

 

The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.

 

NOTE 6 – SHORT-TERM LOAN

 

Short-term loan consists of two notes payable to an unrelated third party in the amount of RMB834,673, annual fixed interest of $100, maturity date of April 11, 2020; and also in the amount of RMB344,345, annual fixed interest of $50, maturity date of April 11, 2020. These two notes were extended to mature on March 31, 2021 with no interest.

 

As of March 31, 2020 and 2019, short-term loan outstanding was $162,321 and $169,309 respectively.

 

During the year ended March 31, 2020, the Company repaid $6,988 to Ms. Wu, Fengqun.

 

NOTE 7 – LEASES

 

The Company has a lease agreement for its office space. The original lease agreement expired on December 2019, and the renewal agreement was signed to extend the lease for the period from January 1, 2020 to December 31, 2021.

 

The Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rate for this lease based primarily on its lease term in PRC which is approximately 4.75%.

 

The Company has elected to not recognized lease assets and liabilities for lease with a term less than twelve months.

 

Operating lease expenses were $71,092 and $88,682 for the years ended March 31, 2020 and 2019, respectively.

 

The undiscounted future minimum lease payment schedule as follows:

 

For the years ended March 31,

 

Amount

 

2021

 

 

71,092

 

2022

 

 

53,291

 

2023

 

 

-

 

Thereafter

 

 

-

 

Total

 

$ 124,383

 

  

NOTE 8 - RELATED PARTY TRANSACTIONS

 

During the year ended March 31, 2020, Mr. Jiang, Libin, the President and a director of the Company, had advanced the Company $145,647 for operating expenses, received $119,981 from the Company as repayments, and collected $12,555 on behalf of the Company as a deposit for a potential joint venture (Refer to Note 4). During the year ended March 31, 2019, Mr. Jiang, Libin, had advanced the Company $250,092 for operating expenses. These advances have been formalized by non-interest-bearing demand notes.

 

As of March 31, 2020, the Company owed $487,358 and $683,420 to Mr. Tsap, Wai Ping, the former President of the Company (the “Former President”) and Mr. Jiang, Libin respectively.

 

As of March 31, 2019, the Company owed $487,358 and $657,754 to Mr. Tsap, and Mr. Jiang, Libin respectively.

 

The loans due to related parties are due on demand, non-interest bearing, and unsecured.

 

NOTE 9 – INCOME TAX

 

Deferred taxes are provided on liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary different amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

  

 

 
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Yinfu Gold Corporation

Notes to Audited Consolidated Financial Statements

(Stated in U.S. Dollars)

 

United States

 

Yinfu Gold Corporation is established in the State of Wyoming in United States and is subject to Wyoming state and US Federal tax laws. Yinfu Gold Corporation is subject to Federal statutory income tax rate of 21%.

 

As of March 31, 2020, Yinfu Gold Corporation has accumulated net operating loss of $962,210 that may be offset against future taxable income has not been recognized as an income tax benefit based on uncertainties concerning its ability to generate taxable in future period.

 

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for Federal Income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.

 

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (“Tax Reform Act”). The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. As a result of the reduction in the U.S. corporate income tax rate from 34% to 21% under the Tax Reform Act, the Company revalued its ending net deferred tax assets.

 

Hongkong

 

Yinfu Group International Holdings Limited was incorporated under the Hong Kong tax laws. The statutory income tax rate is 16.5%. Subsidiaries in Hong Kong are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends.

 

PRC

 

Yinfu International Holdings Limited was incorporated under the China Enterprise Income Tax Law, or the EIT Law, domestic enterprises and foreign investment enterprises, or FIE, are subject to a unified 25% enterprise income tax rate, except for certain entities that are entitled to tax holidays or exemptions.

 

As of March 31, 2020, Yinfu International Holdings Limited has accumulated net operating loss of $643,687that may be offset against future taxable income has not been recognized as an income tax benefit based on uncertainties concerning its ability to generate taxable in future period.

 

NOTE 10 – CONTINGENCIES & UNCERTAINTIES

 

Contingencies

 

On June 25, 2019, the management decided to abandon the Company’s subsidiary Yinfu Group Overseas Investment & Finance Limited (“Yinfu BVI”) that has been administratively struck off by the BVI registrar for non-payment of fees. Yinfu BVI is a holding entity established in BVI that did not have any activities or operations since inception. Yinfu BVI being a struck off company continues to have legal status. As such, it may incur additional liabilities (including fees and late payment penalties which would need be to repaid in order to restore the company); it may potentially be the subject of a creditor’s claim or judgement; and its members, directors, officers and agents remains responsible for any liabilities that existed before it was struck off. If the indicated events were to occur it may have negative effects on the Company’s operation

 

NOTE 11 - SUBSEQUENT EVENTS

 

The Company evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. Based on this evaluation, the Company concluded that subsequent to March 31, 2020 but prior to June 30, 2020, the date the financial statements were available to be issued, there was no subsequent event that would require disclosure to or adjustment to the financial statements other than the ones disclosed above.

 

 
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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

 

There were no disagreements with our accountants related to accounting principles or practices, financial statement disclosure, internal controls or auditing scope or procedure during the 2019 fiscal years.

 

Effective December 1, 2017 the Board of Directors of Yinfu Gold Corporation, (the “Company”) dismissed Anthony Kam & Associates, Ltd. (“AKAM”) of Hong Kong, as the Company’s auditor. On November 29, 2017 Yinfu Gold Corporation received notification from the US Securities and Exchange Commission (“SEC”) that the Public Company Accounting Oversight Board (“PCAOB”) has revoked the registration of our independent registered public accounting firm, Anthony Kam & Associates Ltd.

 

The report issued by AKAM dated May 29, 2017 relating to its audit of our balance sheet as of March 31, 2017 and the related statement of operations, stockholder’s deficit and cash flows for the year ending March 31, 2017 with an unqualified opinion.

 

Our decision to dismissed AKAM is not the result of any disagreement between us and AKAM on matters of accounting principles or practices, financial statement disclosure or auditing scope or procedures. During our most recent fiscal years through the date of AKAM, there were no disagreements with AKAM on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of AKAM, would have caused AKAM to make a reference to the subject matter of the disagreement in connection with its reports. Pursuant to the rules of the SEC applicable to smaller reporting companies, AKAM was not required to provide an attestation as to the effectiveness of our internal control over financial reporting.

 

There were no reportable events (as that term is defined in Item 304(a)(1)(v) of Regulation S-K) during our most recent fiscal years through the date of dismissal of AKAM. Our Board of Directors discussed the subject matter referred to above with AKAM. We authorized AKAM to respond fully and without limitation to all requests of our successor accountant concerning all matters related to the annual and interim periods audited and reviewed by AKAM, including with respect to the subject matter of any reportable event.

 

On December 1, 2017, the Company has engaged WWC, Professional Corporation (“WWC”) of San Mateo, California as its new registered independent public accountant. Prior to December 1, 2017 the Company did not consult with WWC regarding (i) the application of accounting principles to a specified transaction, (ii) the type of audit opinion that might be rendered on the Company’s financial statements by WWC in either case where written or oral advice provided by WWC would be an important factor considered by us in reaching a decision as to any accounting, auditing or financial reporting issues or (iii) any other matter that was the subject of a disagreement between us and our former auditor or was a reportable event (as described in Items 304(a)(1)(iv) or Item 304(a)(1)(v) of Regulation S-K, respectively).

 

On December 5, 2018, WWC, Professional Corporation (“WWC”) advised us that it had resigned from its position as our independent registered public accounting firm, effective as of that date. Our Board of Directors did not recommend or approve the change in accountants. WWC’s reports on our financial statements for the fiscal year ended March 31, 2018 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles, except that the report included an explanatory paragraph relating to an uncertainty as to our ability to continue as a going concern. Furthermore, during the fiscal year ended March 31, 2018, (i) there were no disagreements with WWC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to WWC’s satisfaction, would have caused WWC to make reference to the subject matter of the disagreement in connection with its reports on our financial statements for such periods, and (ii) there were no “reportable events” as that term is described in Item 304(a)(1)(v) of Regulation S-K.

 

Effective December 5, 2018, the Company has engaged JLKZ CPA LLP (“JLKZ”) as its new registered independent public accountant. Prior to December 5, 2018 the Company did not consult with JLKZ regarding (i) the application of accounting principles to a specified transaction, (ii) the type of audit opinion that might be rendered on the Company’s financial statements by JLKZ in either case where written or oral advice provided by JLKZ would be an important factor considered by us in reaching a decision as to any accounting, auditing or financial reporting issues or (iii) any other matter that was the subject of a disagreement between us and our former auditor or was a reportable event (as described in Items 304(a)(1)(iv) or Item 304(a)(1)(v) of Regulation S-K, respectively).

 

Item 9A. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

We maintain “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”)/Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure. We conducted an evaluation (the “Evaluation”), under the supervision and with the participation of our CEO/CFO of the effectiveness of the design and operation of our disclosure controls and procedures (“Disclosure Controls”) as of the end of the period covered by this report pursuant to Rule 13a-15 of the Exchange Act. Based on this evaluation and the existence of the material weaknesses discussed below in “Management’s Report on Internal Control over Financial Reporting,” our management, including our CEO/CFO concluded that our disclosure controls and procedures were not effective at the reasonable assurance level as of the end of the period covered by this Report.

 

 
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We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

 

Management’s Annual Report on Internal Control Over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives. With the participation of our Chief Executive and Financial Officer, our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of March 31, 2020 based on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework. Based upon such evaluation, our management concluded that we did not maintain effective internal control over financial reporting as of March 31, 2020 based on the COSO framework criteria, as more fully described below. This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.

 

The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee, (2) lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (3) inadequate segregation of duties consistent with control objectives; and (4) management dominated by two individuals without adequate compensating controls. The aforementioned material weaknesses were identified by our Chief Executive and Financial Officer in connection with the review of our financial statements as of March 31, 2020.

 

Management believes that the material weaknesses set forth above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

 

 
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This Annual Report on Form 10-K does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting due to permanent exemptions for smaller reporting companies.

 

Officers’ Certifications

 

Appearing as exhibits to this Annual Report are “Certifications” of our Chief Executive Officer and Chief Financial Officer. The Certifications are required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (the “Section 302 Certifications”). This section of the Annual Report contains information concerning the Controls Evaluation referred to in the Section 302 Certification. This information should be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented.

 

Changes in Internal Control Over Financial Reporting

 

There have been no changes in our internal control over financial reporting that occurred during the year ended March 31, 2020, that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

 

Item 9B. Other Information

 

None.

 

Item 10. Directors, Executive Officers and Corporate Governance

 

All directors of the Company hold office until the next annual meeting of the security holders or until their successors have been elected and qualified. The officers of the Company are appointed by the board of directors and hold office until their death, resignation or removal from office. The directors and executive officers, their ages, positions held, and duration as such, are as follows:

 

Name

 

Position Held with the Company

 

Age

 

Date First Elected or Appointed

Jiang, Libin

 

President, Secretary and Director

 

57

 

December 12, 2015

Jiang, Libin

 

Interim Chief Financial Officer

 

57

 

January 14, 2019

Zhang, Hong

 

Director

 

57

 

December 12, 2015

 

Background of Officers and Directors

 

Jiang, Libin: President and Director

 

Mr. Jiang, Libin graduated in June 1985 with an International Trade Diploma from Shenzhen University, Guangdong, China with a major in foreign economy and trade. From July 1980 to December 1997 he worked as Section Chief and General Manager in the Economy and Trade Ministry of Foreign Trade Group for foreign trade in China where he was responsible for import and export trade and strategic development planning.

 

 
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From January 1998 to April 2001 he was the General Manager and Legal Representative for Shenzhen Xuteng Development Co., Ltd., an import and export company. He was responsible for overall strategy and daily company management. Starting in April 2001 he served as Director of Heilongjiang Economic and Trade Committee Shenzhen office, where he was responsible for international development strategy and the daily management of the department. He served in that capacity until December 2003.

 

He also served as General Manager and Company Legal Representative of the Shenzhen Longyue Trade Co., Ltd., a trading company of agricultural products, from January 2004 until May 2007. In those roles he was fully responsible for overall operation and management of the company. He served as President of the Northeast Region of ITAT International Brands Clothing Club Group Ltd.

 

From May 2007 until July 2009 and also from July 2009 to May 2005 he was Chief Executive Officer of Liaoning Jinzhou Times Group, a department store chain company.

 

Since May 2015 he has assisted the Company as manager in charge of its Investment Department.

 

Zhang Hong: Director

 

Mr. Zhang Hong graduated from Shanxi College of Science and Technology in June 1990 with a diploma in Business Administration. From July 1988 to June 1990, he received on-the-job education in shareholding reform at Shanxi College of Science and Technology.

 

From January 2015 to present he served as Chairman of the Board of Directors at Shenzhen Qianhai Yinfeng Capital Management Co., Ltd., where he was fully responsible for the overall operation of the company. From September 2005 to January 2015, he was Director and General Manager of Guangxi Guiran Energy Company, with responsibilities for development, application, promotion, sales, warehousing and transport of new energy, Liquid Natural Gas, oil and gas integration.

 

From May 1996 to September 2005, he was General Manager of Shenzhen Peizheng Pharmaceutical Co., Ltd. and in charge of R&D, production and sales of new-type special effect medicine. From July 1992 to May 1996 he served as Deputy Director and later Director of Shenzhen Office of the Fifth Office of the Guangxi Zhuang Autonomous Region, responsible for coordination between governmental departments and international information and cultural exchange.

 

From May 1983 to July 1992, he was Business Chief at the Introduction Division of the Economic Office of Futian District Government, Shenzhen (a state officer), responsible for international affairs, processing raw materials on clients’ demands, assembly of parts for clients and processing according to the clients’ samples or engaging in compensation trade, foreign investment attraction, joint venture cooperation, import and export trade, customs declaration and clearance.

 

From September 1981 to May 1983, he was a state officer at the Urban Construction Command Department of Bao’an Township, Shenzhen with job responsibilities relating to urban planning and development, building construction, mechanical equipment, utility installation, earth and stone work engineering and transportation.

 

Zhang Hong has accumulated practical experience in team building, project operation and investment management and has developed extensive governmental relationships and social resources. He also has been devoted to public philanthropy and in supporting many poor students and orphans. As a council member and general affairs officer of Lions Clubs International, he continues to work with domestic and international charities in planning and organizing many large-scale charitable events.

 

 
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Employment Agreements

 

We have no formal employment agreements with any of our employees, directors or officers.

 

Family Relationships

 

There are no family relationships between any of our directors and executive officers.

 

Potential Conflicts of Interest

 

We are not aware of any conflicts of interest with our directors and officers.

 

Involvement in Certain Legal Proceedings

 

None of our directors, executive officers, promoters or control persons has been involved in any of the following events during the past five years:

 

1. A petition under the Federal bankruptcy laws or any state insolvency law was filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing;

 

2. Such person was convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);

 

 
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3. Such person was the subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from, or otherwise limiting, the following activities:

 

 

 

i.

Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity

 

 

 

 

ii.

Engaging in any type of business practice; or

 

 

 

 

iii.

Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws;

 

4. Such person was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;

 

5. Such person was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;

 

6. Such person was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated;

 

7. Such person was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:

 

 

i.

Any Federal or State securities or commodities law or regulation; or

 

 

 

 

ii.

Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or

 

 

 

 

iii.

Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

 

8. Such person was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

 

 
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Compliance with Section 16(a) of the Exchange Act

 

The Company’s common stock is not registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Accordingly, officers, directors and principal shareholders are not subject to the beneficial ownership reporting requirements of Section 16(a) of the Exchange Act.

 

Code of Ethics

 

We have adopted a Code of Business Conduct and Ethics that applies to, among other persons, members of our board of directors, our Company’s officers including our President, Chief Executive Officer and Chief Financial Officer, employees, consultants and advisors. As adopted, our Code of Business Conduct and Ethics sets forth written standards that are designed to deter wrongdoing and to promote:

 

 

1.

honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

 

 

 

 

2.

full, fair, accurate, timely, and understandable disclosure in reports and documents that we file with, or submit to, the Securities and Exchange Commission and in other public communications made by us;

 

 

 

 

3.

compliance with applicable governmental laws, rules and regulations;

 

 

 

 

4.

the prompt internal reporting of violations of the Code of Business Conduct and Ethics to an appropriate person or persons identified in the Code of Business Conduct and Ethics; and

 

 

 

 

5.

accountability for adherence to the Code of Business Conduct and Ethics.

 

Our Code of Business Conduct and Ethics requires, among other things, that all of our company’s senior officers commit to timely, accurate and consistent disclosure of information; that they maintain confidential information; and that they act with honesty and integrity.

 

In addition, our Code of Business Conduct and Ethics emphasizes that all employees, and particularly senior officers, have a responsibility for maintaining financial integrity within our company, consistent with generally accepted accounting principles, and federal and state securities laws. Any senior officer, who becomes aware of any incidents involving financial or accounting manipulation or other irregularities, whether by witnessing the incident or being told of it, must report it to our Company. Any failure to report such inappropriate or irregular conduct of others is to be treated as a severe disciplinary matter. It is against our Company policy to retaliate against any individual who reports in good faith the violation or potential violation of our company’s Code of Business Conduct and Ethics by another.

 

The Company will provide to any person, without charge and upon request, a copy of the code of ethics. Any such request must be made in writing to the Company at, Suite 2408, Dongfang Science and Technology Mansion, Nanshan District, Shenzhen, China 518000

 

Board and Committee Meetings

 

Our board of directors currently consists of two members, Jiang, Libin and Zhang Hong. The Board held no formal meetings during the year ended March 31, 2020. Until the Company develops a more comprehensive Board of Directors, all proceedings will be conducted by resolutions consented to in writing by all the directors and filed with the minutes of the proceedings of the directors. Such resolutions consented to in writing by the directors entitled to vote on that resolution at a meeting of the directors are, according to the Wyoming General Corporate Law and our Bylaws, as valid and effective as if they had been passed at a meeting of the directors duly called and held.

 

 
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Nomination Process

 

As of March 31, 2020, we did not affect any material changes to the procedures by which our shareholders may recommend nominees to our board of directors. Our board of directors does not have a policy with regards to the consideration of any director candidates recommended by our shareholders. Our board of directors has determined that it is in the best position to evaluate our company’s requirements as well as the qualifications of each candidate when the board considers a nominee for a position on our board of directors. If shareholders wish to recommend candidates directly to our board, they may do so by sending communications to the president of our company at the address on the cover of this annual report.

 

Audit Committee

 

Currently the Company is developing a comprehensive Board of Directors and does not have an Audit Committee. The Company intends to appoint audit, compensation and other applicable committee members as it appoints individuals with pertinent expertise.

 

Audit Committee Financial Expert

 

Our board of directors does not have a member that qualifies as an “audit committee financial expert” as defined in Item 407(d)(5)(ii) of Regulation S-K.

 

Item 11. Executive Compensation.

 

The following tables set forth, for each of the last two completed fiscal years of the Company, the total compensation awarded to, earned by or paid to any person who was a principal executive officer during the preceding fiscal year and every other highest compensated executive officers earning more than $100,000 during the last fiscal year (together, the “Named Executive Officers”). The tables set forth below reflect the compensation of the Named Executive Officers.

 

 

Name and Principal Position

 

 

Year

 

 

Salary

($)

 

 

Bonus

($)

 

 

Stock

Awards

($)

 

 

Option

Awards

($)

 

 

Non-Equity

Incentive

Plan

Compensation

($)

 

Change in

Pension

Value and

Nonqualified

Deferred

Compensation

Earnings

($)

 

 

All Other

Compensation

($)

 

 

Total

($)

Jiang, Libin

President, Secretary and Director (1)

 

2018/2019

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

2019/2020

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

Zhang, Hong

Director (2)

 

2018/2019

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

2019/2020

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

Nil

 

(1)

 Jiang, Libin was appointed as the President, Secretary and Director on December 12, 2015.

(2)

Zhang, Hong was appointed as a Director on December 12, 2015.

 

 
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Other than set out below there are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. Our directors and executive officers may receive share options at the discretion of our board of directors in the future. We do not have any material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that share options may be granted at the discretion of our board of directors.

 

Grants of Plan-Based Awards

 

There were no grants of plan-based awards during the year ended March 31, 2020.

 

Outstanding Equity Awards at Fiscal Year End

 

There were no outstanding equity awards at the year ended March 31, 2020.

 

Option Exercises and Stock Vested

 

During the year ended March 31, 2020, there were no options exercised by our named officer.

 

Compensation of Directors

 

We do not have any agreements for compensating our directors for their services in their capacity as directors.

 

Pension, Retirement or Similar Benefit Plans

 

There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. We have no material bonus or profit-sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of the board of directors or a committee thereof.

 

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

The following table sets forth, as of June 24, 2020, certain information with respect to the beneficial ownership of our common shares by each shareholder known by us to be the beneficial owner of more than 5% of our common shares, as well as by each of our current directors and executive officers as a group. Each person has sole voting and investment power with respect to the shares of common stock, except as otherwise indicated. Beneficial ownership consists of a direct interest in the shares of common stock, except as otherwise indicated.

 

Name and Address of Beneficial Owner(1)

 

Amount

and Nature of Beneficial Ownership

 

 

Percentage (2)

of Class

 

Spread Rich Development Limited

Poon, Shuk Ming Maggie (Beneficial Owner)

Unit B, 5/F, CKK Commercial Centre, 289 Hennessy Road,

Wanchai, Hong Kong

 

 

2,812,500

(Indirect)

 

 

28.36%

Common

 

 

 

 

 

 

 

 

 

Directors and Executive Officers as a Group (2 people)

 

 

553,170

 

 

5.58%

Common

 

 

 
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Item 13. Certain Relationships and Related Transactions, and Director Independence

 

Security Ownership of Certain Beneficial Owners and Management

 

Not applicable.

 

Shareholder loan

 

As of March 31, 2020, Mr. Jiang, Libin, the President and a director of the Company, has advanced working capital to the Company with an outstanding balance of $683,420 and Mr. Tsap, Wai Ping, the former President of the Company who resigned on October 31, 2014, has advanced the Company $487,358 for operating expenses.

 

Director Independence

 

Our Board of Directors has determined that it does not have a member that is “independent” as the term is used in Item 7(d) (3) (iv) of Schedule 14A under the Exchange Act.

 

Item 14. Principal Accounting Fees and Services

 

The aggregate fees billed for the most recently completed fiscal year ended March 31, 2020 and the year ended March 31, 2019 for professional services rendered by the principal accountant for the audit of our annual financial statements and review of the financial statements included in our quarterly reports on Form 10-Q and services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for these fiscal periods were as follows:

 

 

 

Year Ended

March 31,

2020

 

 

Year Ended

March 31,

2019

 

Audit fees (1)

 

$ 14,000

 

 

$ 10,870

 

Audit related fees (2)

 

$ -

 

 

$ -

 

Tax fees (3)

 

$ -

 

 

$ -

 

All other fees (4)

 

$ -

 

 

$ -

 

Total

 

$ 14,000

 

 

$ 10,870

 

 

(1)

Audit fees consist of fees incurred for professional services rendered for the audit of our financial statements, for reviews of our interim financial statements included in our quarterly reports on Form 10-Q and for services that are normally provided in connection with statutory or regulatory filings or engagements.

 

(2)

Audit-related fees consist of fees billed for professional services that are reasonably related to the performance of the audit or review of our financial statements, but are not reported under “Audit fees.”

 

 

 

(3)

Tax fees consist of fees billed for professional services relating to tax compliance, tax planning, and tax advice.

 

 

 

(4)

All other fees consist of fees billed for all other services.

 

 
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Our board of directors pre-approves all services provided by our independent auditors. All of the above services and fees were reviewed and approved by the board of directors either before or after the respective services were rendered.

 

Our board of directors has considered the nature and amount of fees billed by our independent auditors and believes that the provision of services for activities unrelated to the audit is compatible with maintaining our independent auditors’ independence.

 

Item 15. Exhibits, Financial Statement Schedules

 

Exhibits

 

In reviewing the agreements included as exhibits to this annual report on Form 10-K, please remember that they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about our company or the other parties to the agreements. The agreements may contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the parties to the applicable agreement and:

 

 

·

should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;

 

 

 

 

·

have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;

 

 

 

 

·

may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and

 

 

 

 

·

were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.

 

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about the Company may be found elsewhere in this annual report on Form 10-K and the Company’s other public filings, which are available without charge through the SEC’s website at http://www.sec.gov.

 

 
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Exhibit Number

 

Description of Exhibit

 

 

 

(3)

 

Articles of Incorporation and Bylaws

 

 

 

3.1

 

Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the registrant’s S-1 Registration Statement filed July 10, 2008)

 

 

 

3.2

 

Amendment to the Articles of Incorporation (incorporated by reference to Exhibit 3.3 to the registrant’s S-1 Registration Statement filed July 10, 2008)

 

 

 

3.3

 

Amendment to the Articles of Incorporation (incorporated by reference to the registrant’s Schedule 14C filed August 3, 2010)

 

 

 

3.4

 

By-laws (incorporated by reference to Exhibit 3.2 to the registrant’s S-1 Registration Statement filed July 10, 2008)

 

 

 

(10)

 

Material Contracts

 

 

 

(31)

 

Rule 13a-14(a) / 15d-14(a) Certifications

 

 

 

31.1

 

Certification of Principal Executive pursuant to Section 302 of the Sarbanes-Oxley Act.

 

 

 

31.2

 

Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act.

 

 

 

(32)

 

Section 1350 Certifications

 

 

 

32.1

 

Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act

 

 

 

32.2

 

Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act

 

 
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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

 

 

 

Yinfu Gold Corporation

 

 

 

(Registrant)

 

 

 

 

 

Date: June 30, 2020

 

/s/ Jiang, Libin

 

 

 

Jiang, Libin

 

 

 

President, Secretary and Director

 

 

 

 

 

Date: June 30, 2020

 

/s/ Jiang, Libin

 

 

 

Jiang, Libin

 

 

 

Interim Chief Financial Officer

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Date: June 30, 2020

 

/s/ Jiang, Libin

 

 

 

Jiang, Libin

 

 

 

President, Secretary and Director

 

 

 

 

 

Date: June 30, 2020

 

/s/ Jiang, Libin

 

 

 

Jiang, Libin

 

 

 

Interim Chief Financial Officer

 

 

 

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