UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended June 30, 2021

 

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 2313, 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 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 ☒     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 ☒     No ☐

 

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 filed,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes ☐     No ☒

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange

on which registered

Common stock, par value $0.001 per share

 

ELRE

 

OTCQB

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of August 16, 2021, the Company had 9,917,592 shares of common stock outstanding.

 

 

 

 

YINFU GOLD CORPORATION

 

Quarterly Report on Form 10-Q

 

For the Period Ended June 30, 2021

 

FORWARD-LOOKING STATEMENTS

 

This Form 10-Q for the period ended June 30, 2021 contains forward-looking statements that involve risks and uncertainties. Forward-looking statements in this document include, among others, statements regarding our capital needs, business plans and expectations. Such forward-looking statements involve assumptions, risks and uncertainties regarding, among others, the success of our business plan, availability of funds, government regulations, operating costs, our ability to achieve significant revenues, our business model and products and other factors. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology. In evaluating these statements, you should consider various factors, including the assumptions, risks and uncertainties set forth in reports and other documents we have filed with or furnished to the SEC. These factors or any of them may cause our actual results to differ materially from any forward-looking statement made in this document. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding future events, our actual results will likely vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. The forward-looking statements in this document are made as of the date of this document and we do not intend or undertake to update any of the forward-looking statements to conform these statements to actual results, except as required by applicable law, including the securities laws of the United States.

 

 
2

Table of Contents

  

TABLE OF CONTENT

 

PART I. FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1.

Financial Statements

 

4

 

Item 2.

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

 

18

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

 

22

 

Item 4.

Controls and Procedures

 

22

 

 

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

Item 1.

Legal Proceedings

 

23

 

Item 1A.

Risk Factors

 

23

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

23

 

Item 3.

Defaults upon Senior Securities

 

23

 

Item 4.

Mine Safety Disclosures

 

23

 

Item 5.

Other Information

 

23

 

Item 6.

Exhibits

 

24

 

Index to Exhibits

 

24

 

 

 

 

 

SIGNATURES

 

25

 

 

 
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Table of Contents

  

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

YINFU GOLD CORPORATION

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(Unaudited)

 

 

 

June 30,

 

 

March 31,

 

 

 

2021

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$ 430

 

 

$ 300

 

Other receivables

 

 

2,508

 

 

 

1,695

 

Total current Assets

 

 

2,938

 

 

 

1,995

 

Non-current assets

 

 

 

 

 

 

 

 

Operating lease right of use asset, net

 

 

62,518

 

 

 

79,635

 

Total non-current assets

 

 

62,518

 

 

 

79,635

 

Total Assets

 

 

65,456

 

 

 

81,630

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

99,797

 

 

 

99,692

 

Other payables

 

 

160,077

 

 

 

87,672

 

Short-term loan

 

 

173,575

 

 

 

171,666

 

Operating lease liabilities - current

 

 

81,684

 

 

 

98,526

 

Due to related party

 

 

1,617,614

 

 

 

1,567,380

 

Total Current Liabilities

 

 

2,132,747

 

 

 

2,024,936

 

Non-current liabilities

 

 

 

 

 

 

 

 

Operating lease liabilities - noncurrent

 

 

-

 

 

 

-

 

Total Non-current Liabilities

 

 

-

 

 

 

-

 

Total Liabilities

 

 

2,132,747

 

 

 

2,024,936

 

 

 

 

 

 

 

 

 

 

Stockholders' Deficit

 

 

 

 

 

 

 

 

Common stock, ($0.001 par value, 3,000,000,000 shares authorized, 9,917,592 shares issued and outstanding as of June 30, 2021 and March 31, 2021)

 

 

9,918

 

 

 

9,918

 

Accumulated deficit

 

 

(2,039,805 )

 

 

(1,928,249 )

Accumulated other comprehensive loss

 

 

(37,404 )

 

 

(24,975 )

Total Stockholders' Deficit

 

 

(2,067,291 )

 

 

(1,943,306 )

Total Liabilities and Stockholders' Deficit

 

$ 65,456

 

 

$ 81,630

 

 

See Notes to the Condensed Consolidated Financial Statements.

 

 
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YINFU GOLD CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(Unaudited)

 

 

 

For Three Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

REVENUE

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

General and administrative

 

 

103,292

 

 

 

39,132

 

Professional fees

 

 

8,264

 

 

 

3,000

 

Total operating expenses

 

 

111,556

 

 

 

42,132

 

 

 

 

 

 

 

 

 

 

Net loss from operations

 

 

(111,556 )

 

 

(42,132 )

 

 

 

 

 

 

 

 

 

Net income (loss) before income taxes

 

 

(111,556 )

 

 

(42,132 )

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

-

 

 

 

-

 

Net loss

 

 

(111,556 )

 

 

(42,132 )

 

 

 

 

 

 

 

 

 

Basic and diluted loss per common share

 

 

(0.01 )

 

 

(0.00 )

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic and diluted

 

 

9,917,592

 

 

 

9,917,592

 

 

See Notes to the Condensed Consolidated Financial Statements.

 

 
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YINFU GOLD CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

 

(Unaudited)

 

 

 

For the Three Months ended

 

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

NET LOSS

 

$ (111,556 )

 

$ (42,132 )

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE LOSS NET OF TAX:

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(12,429 )

 

 

(1,401 )

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE LOSS

 

 

(12,429 )

 

 

(1,401 )

 

 

 

 

 

 

 

 

 

COMPREHENSIVE LOSS

 

$ (123,985 )

 

$ (43,533 )

 

See Notes to the Condensed Consolidated Financial Statements.

 

 
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Table of Contents

  

YINFU GOLD CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIENCY

 

(Unaudited)

 

 

 

Common Stock

 

 

 

 

Accumulated

other

 

 

 

 

 

Number

of shares

 

 

Par value

 

 

Accumulated

Deficit

 

 

comprehensive

loss

 

 

Total

 

For the three months ended June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of March 31, 2020

 

 

9,917,592

 

 

$ 9,918

 

 

$ (1,641,935 )

 

$ 29,234

 

 

$ (1,602,783 )

Net loss

 

 

 

 

 

 

 

 

 

 

(42,132 )

 

 

 

 

 

 

(42,132 )

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,401 )

 

 

(1,401 )

Balance as of June 30, 2020

 

 

9,917,592

 

 

 

9,918

 

 

 

(1,684,067 )

 

 

27,833

 

 

 

(1,646,316 )

For the three months ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of March 31, 2021

 

 

9,917,592

 

 

 

9,918

 

 

 

(1,928,249 )

 

 

(24,975 )

 

 

(1,943,306 )

Net loss

 

 

 

 

 

 

 

 

 

 

(111,556 )

 

 

 

 

 

 

(111,556 )

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,429 )

 

 

(12,429 )

Balance as of June 30, 2021

 

 

9,917,592

 

 

$ 9,918

 

 

$ (2,039,805 )

 

$ (37,404 )

 

$ (2,067,291 )

 

See Notes to the Condensed Consolidated Financial Statements.

 

 
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Table of Contents

  

YINFU GOLD CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Unaudited)

 

 

 

For Three Months Ended June 30,

 

 

 

2021

 

 

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

 

(111,556 )

 

 

(42,132 )

Amortization of right-of-use asset

 

 

18,241

 

 

 

-

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Other receivables

 

 

(787 )

 

 

(10,605 )

Accounts payable and accrued liabilities

 

 

105

 

 

 

10,358

 

Other payable

 

 

71,979

 

 

 

-

 

Operating lease liability

 

 

(18,241 )

 

 

-

 

Net cash used in operating activities

 

$ (40,259 )

 

$ (42,379 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Net proceeds from related parties

 

 

40,388

 

 

 

46,793

 

Net cash provided by financing activities

 

$ 40,388

 

 

$ 46,793

 

 

 

 

 

 

 

 

 

 

Effect on changes in foreign exchange rate

 

 

1

 

 

 

(101 )

Net increase in cash and cash equivalents

 

 

130

 

 

 

4,313

 

Cash and cash equivalents, beginning of period

 

 

300

 

 

 

775

 

Cash and cash equivalents, end of period

 

$ 430

 

 

$ 5,088

 

 

 

 

-

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Recognized ROU assets through lease liabilities

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

 

 

$

 

Cash paid for income taxes

 

$

 

 

$

 

 

See Notes to the Consolidated Financial Statements.

 

 
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Table of Contents

  

YINFU GOLD CORPORATION

 

Notes to the Condensed Consolidated Interim Financial Statements

 

June 30, 2021

 

(Unaudited)

 

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 changed 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.

 

 
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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

 

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for (a) the financial position, (b) the result of operations, and (c) cash flows have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

 

These condensed consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements included in the firm’s Annual Report on Form 10-K for the year ended March 31, 2021. The condensed consolidated financial information as of March 31, 2021 has been derived from audited consolidated financial statements not included herein. Certain reclassifications have been made to previously reported amounts to conform to the current presentation.

 

Interim Financial Information

 

The unaudited financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) applicable to interim financial information and the requirements of Form 10-Q and Rule 8-03 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosure required by accounting principles generally accepted in the United States of America for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included.

 

These financial statements should be read in conjunction with the audited financial statements as of and for the year ended March 31, 2021, as not all disclosures required by generally accepted accounting principles for annual financial statements are presented. The interim financial statements follow the same accounting policies and methods of computations as the audited financial statements as of and for the year ended March 31, 2021.

 

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.

 

 
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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 loss of $12,429 and $1,401 for the three months ended June 30, 2021 and 2020 respectively.

 

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 as well as 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 exposure is 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 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

 

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 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.

 

 
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Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2021. 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.

 

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 noncontrolling 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 noncontrolling interests is recognized as goodwill. Certain adjustments to the assessed fair values of the assets, liabilities, or noncontrolling 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, where 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. No deferred tax assets or liabilities were recognized as at June 30, 2021 and March 31, 2021.

 

Net Income (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 income (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 (loss) per share, for the three months ended June 30, 2021 and 2020:

 

 

 

Three Months Ended June 30,

 

 

 

2021

 

 

2020

 

Net loss

 

$ (111,556 )

 

$ (42,132 )

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding (basic and diluted)

 

 

9,917,592

 

 

 

9,917,592

 

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

 

$ (0.01 )

 

$ (0.00 )

 

 
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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 three months ended June 30, 2021 and 2020 respectively.

 

Related Parties

 

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions. See note 8.

 

Revenue Recognition

 

The Company adopted ASU 2014-09, 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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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 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.

 

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.

 

 
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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 adopted under the provisions allowed under ASU 2018-11. We recognized operating leases 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.

 

NOTE 3 - GOING CONCERN

 

The Company’s financial statements are prepared using accounting principles generally accepted in the United States 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 on-going 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 June 30, 2021, the Company had an accumulated deficit of $2,039,805, and net loss of $111,556 and net cash used in operations of $40,259 for the three months ended June 30, 2021. 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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NOTE 4 – OTHER PAYABLES

 

On December 18, 2019, the Company signed a Letter of intent for Equity Acquisition (the “LOI Agreement”) as part of a joint venture plan between the Company and Ji’an Chengpin Mining Co., Ltd, a third-party company. The Company received $152,437 from the acquiree as earnest money deposit to secure the transfer of Mr. Jiang Libin’ shares as part of the LOI Agreement. On July 24, 2020, the LOI Agreement was terminated by all parties and the earnest money deposit of $152,437 was not required to be returned to the acquiree according pursuant to the Termination Agreement. As a result, the earnest money deposit was reclassified as amount payable to Mr. Jiang as of June 30, 2021 and March 31, 2021. Please refer to the Note 8.

 

NOTE 5-STOCKHOLDERS’EQUITY (DEFICIT)

 

Common Stock

 

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

 

As of June 30, 2021 and March 31,2021, 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 $129,235 (RMB834,673), annual fixed interest of $100, maturity date of April 11, 2020; and in the amount of $44,340(HKD344,345, annual fixed interest of $50, maturity date of April 11, 2020. These two notes were extended to mature on March 31, 2022 without interest.

 

As of June 30, 2021 and March 31, 2021, short-term loan outstanding was $173,575 and $171,666 respectively.

 

NOTE 7 – LEASES

 

The Company has a lease agreement for its office space. The current lease agreement was signed to cover the lease for the period from May 1, 2020 to April 30, 2022.

 

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 $19,126 and $17,469 for the three months ended June 30, 2021 and 2020, respectively.

 

The undiscounted future minimum lease payment schedule as follows:

 

For the years ended March 31,

 

Amount

 

2022 (nine months from June 30, 2021 to March 31, 2022)

 

 

57,378

 

2023 (twelve months from April1, 2022 to March 31, 2023)

 

 

6,376

 

2024 (twelve months from April1, 2023 to March 31, 2024)

 

 

-

 

Thereafter

 

 

-

 

Total

 

$ 63,754

 

 

 
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NOTE 8 - RELATED PARTY TRANSACTIONS

 

During the three months ended June 30, 2021, Mr. Jiang, Libin, the President and a director of the Company, had advanced the Company $40,453 for operating expenses, received $0 from the Company as repayments. These advances have been formalized by non-interest-bearing demand notes. In addition, $152,437 were reclassified as amounts payable to Mr. Jiang due to the termination of agreement (Refer to Note 4).

 

During the three months ended June 30, 2020, Mr. Jiang, Libin, the President and a director of the Company, had advanced the Company $48,109 for operating expenses, received $624 from the Company as repayments. These advances have been formalized by non-interest-bearing demand notes.

 

As of June 30, 2021 and March 31, 2021, the Company owed $1,130,256 and $1,080,022 to Mr. Jiang, Libin respectively.

 

As of June 30, 2021 and March 31, 2021, the Company owed $487,358 and $487,358 to Mr. Tsap, respectively.

 

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

 

NOTE 9 - 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 10 - 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 June 30, 2021 but prior to August 16, 2021, 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 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

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 other documents we file from time to time with the Securities and Exchange Commission (“SEC”). 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-Q to the “Company”, “Yinfu”, “we”, “us” or “our” are to Yinfu Gold Corporation.

 

Our unaudited 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 enter into new-emerging application industries of Internet Technology, Artificial Intelligence (AI) and the Internet of Things (IOT).

 

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 enter into new-emerging application industries of Internet Technology, Artificial Intelligence (AI) and the Internet of Things (IOT). However, our planned principal operations have not yet commenced.

 

 
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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.

 

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 $111,556 in expenses through the three months ended June 30, 2021.

 

The following table provides selected financial data about our company as of June 30, 2021 and March 31, 2021.

 

 

 

June 30,

2021

 

 

March 31,

2021

 

Cash

 

$ 430

 

 

$ 300

 

Total Assets

 

$ 65,456

 

 

$ 81,630

 

Total Liabilities

 

$ 2,132,747

 

 

$ 2,024,936

 

Stockholders’ Equity (Deficit)

 

$ (2,067,291 )

 

$ (1,943,306 )

 

As of June 30, 2021, the Company’s cash balance was $430 compared to $300 as of March 31, 2021, and our total assets as of June 30, 2021, were $65,456 compared with $81,630 as of March 31, 2021. The increase in cash and decrease in total assets were immaterial.

 

 
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As of June 30, 2021, the Company had total liabilities of $2,132,747 compared with total liabilities of $2,024,936 as of March 31, 2021. The increase in total liabilities was primarily attributed to the increase of advance from the President for operating expenses.

 

 

 

Three Months

Ended

June 30,

2021

 

 

Three Months

Ended

June 30,

2020

 

 

Fluctuation

 

 

%

 

Revenue

 

$ -

 

 

$ -

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

103,292

 

 

 

39,132

 

 

 

64,160

 

 

 

164 %

Professional fees

 

 

8,264

 

 

 

3,000

 

 

 

5,264

 

 

 

175 %

Total Operating Expenses

 

 

111,556

 

 

 

42,132

 

 

 

69,424

 

 

 

165 %

Loss from Operations

 

$ (111,556 )

 

$ (42,132 )

 

 

(69,424 )

 

 

165 %

 

Revenues

 

The Company has generated no revenues during the three months ended June 30, 2021 and 2020.

 

Operating expenses

 

For the three months ended June 30, 2021, total operating expenses were $111,556, which consisted general and administrative fees and professional fees. For the three months ended June 30, 2020, total operating expenses were $42,132, which consisted general and administrative fees and professional fees. The increase in operating expense was mainly due to the increase in both general and administrative expense and professional fees which mainly resulted from the additional $60,000 salary to Mr. Libin Jiang for the three months ended June 30, 2021.

 

 
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Liquidity and Capital Resources

 

Working Capital

 

 

 

As of

June 30,

2021

 

 

As of

March 31,

2021

 

Current Assets

 

$ 2,938

 

 

$ 1,995

 

Current Liabilities

 

$ 2,132,747

 

 

$ 2,024,936

 

Working Capital Deficiency

 

$ (2,129,809 )

 

$ (2,022,941 )

 

As of June 30, 2021, the Company had a working capital deficiency of $2,129,809 compared with working capital deficiency of $2,022,941 as of March 31, 2021. The slight increase in working capital deficiency was primarily attributed to the increase in current liabilities due to the increase of advance from the President for operating expenses and the increase in other payable balance.

 

Cash Flows

 

 

 

Three Months

Ended

June 30,

2021

 

 

Three Months

Ended

June 30,

2020

 

Cash Flows Used in Operating Activities

 

$ (40,259 )

 

$ (42,379 )

Cash Flows Provided by Investing Activities

 

$ -

 

 

$ -

 

Cash Flows Provided by Financing Activities

 

$ 40,388

 

 

$ 46,793

 

Effects on change in foreign exchange rate

 

$ 1

 

 

$ (101 )

Net Decrease in Cash During Period

 

$ 130

 

 

$ 4,313

 

 

Cash Flows Used in Operating Activities

 

During the three months ended June 30, 2021, the Company had $40,259 in cash used in operating activities, which was attributed from loss from operations of $111,556 and offset by the increase in accounts payable and accrued liabilities of $105, increase in other payable of $71,979 and increase in other receivables of $787.

 

During the three months ended June 30, 2020, the Company had $42,379 in cash used in operating activities, which was attributed from loss from operations of $42,132 and increase in accounts payable and accrued liabilities of $10,358 and increase in other receivables of $10,605.

 

Cash Flows Provided by Investing Activities

 

During the three months ended June 30, 2021 and 2020, the Company used no cash in investing activities.

 

Cash Flows Provided by Financing Activities

 

During the three months ended June 30, 2021, the President has advanced the Company $40,388 for operating expenses.

 

During the three months ended June 30, 2020, the President has advanced the Company $46,793 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.

 

 
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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Not applicable.

 

Item 4. Controls and Procedures.

 

Management’s Report on Disclosure Controls and Procedures

 

As of June 30, 2021, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and SEC guidance on conducting such assessments. Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules 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 their review of our financial statements as of June 30, 2021.

 

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.

 

Changes in Internal Control over Financial Reporting

 

There have been no changes in our internal controls over financial reporting that occurred during the three months ended June 30, 2021, that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

 

 
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PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

We are not presently a party to any legal proceedings and, to our knowledge, no such proceedings are threatened or pending.

 

However, we noted the following risks arising recently:

 

● Substantial uncertainties exist with respect to the interpretation and implementation of PRC Foreign Investment Law and how it may impact the viability of our current corporate structure, corporate governance and business operations.

 

The PRC government will establish a foreign investment information reporting system, according to which foreign investors or foreign-invested enterprises shall submit investment information to the competent department for commerce concerned through the enterprise registration system and the enterprise credit information publicity system, and a security review system under which the security review shall be conducted for foreign investment affecting or likely affecting the state security.

 

Furthermore, the Foreign Investment Law provides that foreign invested enterprises established according to the existing laws regulating foreign investment may maintain their structure and corporate governance within five years after the implementing of the Foreign Investment Law.

 

In addition, the Foreign Investment Law also provides several protective rules and principles for foreign investors and their investments in the PRC, including, among others, that a foreign investor may freely transfer into or out of China, in Renminbi or a foreign currency, its contributions, profits, capital gains, income from disposition of assets, royalties of intellectual property rights, indemnity or compensation lawfully acquired, and income from liquidation, among others, within China; local governments shall abide by their commitments to the foreign investors; governments at all levels and their departments shall enact local normative documents concerning foreign investment in compliance with laws and regulations and shall not impair legitimate rights and interests, impose additional obligations onto FIEs, set market access restrictions and exit conditions, or intervene with the normal production and operation activities of FIEs; except for special circumstances, in which case statutory procedures shall be followed and fair and reasonable compensation shall be made in a timely manner, expropriation or requisition of the investment of foreign investors is prohibited; and mandatory technology transfer is prohibited.

 

● The Chinese government exerts substantial influence over the manner in which we must conduct our business activities. We are currently not required to obtain approval from Chinese authorities to list on U.S exchanges, however, if our VIE or the holding company were required to obtain approval in the future and were denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S. exchange, which would materially affect the interest of the investors.

 

The Chinese government has exercised and continues to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental regulations, land use rights, property and other matters. The central or local governments of these jurisdictions may impose new, stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance with such regulations or interpretations. Accordingly, government actions in the future, including any decision not to continue to support recent economic reforms and to return to a more centrally planned economy or regional or local variations in the implementation of economic policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require us to divest ourselves of any interest we then hold in Chinese properties.

 

For example, the Chinese cybersecurity regulator announced on July 2 that it had begun an investigation of Didi Global Inc. (NYSE: DIDI) and two days later ordered that the company’s app be removed from smartphone app stores.

 

As such, the Company’s business segments may be subject to various government and regulatory interference in the provinces in which they operate. The Company could be subject to regulation by various political and regulatory entities, including various local and municipal agencies and government sub-divisions. The Company may incur increased costs necessary to comply with existing and newly adopted laws and regulations or penalties for any failure to comply.

 

Furthermore, it is uncertain when and whether the Company will be required to obtain permission from the PRC government to list on U.S. exchanges in the future, and even when such permission is obtained, whether it will be denied or rescinded. Although the Company is currently not required to obtain permission from any of the PRC federal or local government to obtain such permission and has not received any denial to list on the U.S. exchange, our operations could be adversely affected, directly or indirectly, by existing or future laws and regulations relating to its business or industry.

 

Item 1A. Risk Factors.

 

Not applicable.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

No stock was sold during the three months ended June 30, 2021.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

None.

 

Item 5. Other Information.

 

None.

 

 
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Table of Contents

  

Item 6. Exhibits.

 

Index to Exhibits

 

31.1

 

Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.

31.2

 

Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.

32.1

 

Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer.

101.INS

 

XBRL Instance Document.

101.SCH

 

XBRL Taxonomy Extension Schema Document.

101.CAL

 

XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF

 

XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB

 

XBRL Taxonomy Extension Label Linkbase Document.

101.PRE

 

XBRL Taxonomy Extension Presentation Linkbase Document.

 

 
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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

Yinfu Gold Corporation

 

 

(Registrant)

 

 

 

 

 

Dated: August 16, 2021

 

/s/ Jiang, Libin

 

 

 

Jiang, Libin

 

 

 

Chief Executive Officer

 

 

 
25

 

Yinfu Gold (PK) (USOTC:ELRE)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024 Yinfu Gold (PK) 차트를 더 보려면 여기를 클릭.
Yinfu Gold (PK) (USOTC:ELRE)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024 Yinfu Gold (PK) 차트를 더 보려면 여기를 클릭.