What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2020-05-14 compared with 2019-04-02 · 94 added, 61 removed, 34 unchanged (82% of the section changed)

Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

There is a limited public market for our common

Our common stock trades on the OTCQB marketplace under the symbol “FVTI”.

The OTCQB marketplace is a quotation

service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (“OTC”) equity

is a limited public market for our common stock.

Our common stock trades on the OTCQB marketplace (“OTCQB”) under

the symbol “FVTI”.

The OTCQB is a quotation service that displays real-time quotes, last-sale prices, and volume information

in over-the-counter equity securities.

securities are not listed or traded on the floor of an organized national or regional stock exchange.

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smaller companies that do not meet the financial and other listing requirements of a regional or national stock exchange.

307,750,000 shares of common stock

were issued and outstanding as of March 28, 2019.

They were held by approximately 381 shareholders of record.

Company has not declared any cash dividends with respect to its common stock and does not intend to declare dividends in the foreseeable

There are no material restrictions limiting, or that are likely to limit, the Company’s ability to pay dividends

on its common stock.

of May 13, 2020, there were 382 stockholders of all of our issued and outstanding shares of common stock.

have not declared any cash dividends with respect to our common stock and does not intend to declare dividends in the foreseeable

There are no material restrictions limiting, or that are likely to limit, our ability to pay dividends on our common stock.

Authorized for Issuance under Equity Compensation Plans

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Selected Financial Data

applicable to a smaller reporting company.

a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information required

by this item.

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

following discussion and analysis should be read in conjunction with our financial statements and related notes thereto.

following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere

in this Annual Report.

The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.

Our actual results could differ materially from those discussed in the forward- looking statements.

Factors that could cause or

contribute to such differences include, but are not limited to those discussed below and elsewhere in this Report.

financial statements are stated in U.S.

Dollars and are prepared in accordance with United States Generally Accepted Accounting

(COVID-19) Update

there is an ongoing outbreak of a novel strain of coronavirus (COVID-19) first identified in China and has since spread rapidly

The pandemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and business facilities

globally for the past few months.

In March 2020, the World Health Organization declared the COVID-19 as a pandemic.

rapidly expanding nature of the COVID-19 pandemic, and because substantially all of our business operations and our workforce

are concentrated in China, our business, results of operations and financial condition have been and will continue to be adversely

Potential impact to our results of operations will also depend on future developments and new information that may emerge

regarding the duration and severity of the COVID-19 and the actions taken by government authorities and other entities to contain

the COVID-19 or mitigate its impact, almost all of which are beyond our control.

impacts of COVID-19 on our business, financial condition, and results of operations include, but are not limited to, the following:

We temporally

closed our offices to adhere to the policy for approximately one month from late January 2020, as required by relevant PRC regulatory authorities.

Our offices are slowly reopening pursuant to local guidelines.

In the first quarter of 2020, the COVID-19 outbreak has caused

disruptions in our operations and supply chains, which have resulted in delays in the shipment of products to certain of our

A large number

of our employees have been or are in mandatory self-quarantine and the entire business operations of the Company has been

restricted since January 2020.

Our customers

have been negatively impacted by the outbreak, which reduced the demand of our products.

As a result, our revenue and income

may be negatively impacted in 2020.

The situation

may worsen if the COVID-19 pandemic continues.

We will continue to closely monitor our collections throughout 2020.

prolonged disruption or any further unforeseen delay in our operations and supply chains could continue to result in delays in

the shipment of products to our customers, increased costs and reduced revenue.

cannot foresee whether the outbreak of COVID-19 will be effectively contained, nor can we predict the severity and duration of

If the outbreak of COVID-19 is not effectively and timely controlled, our business operations and financial condition

may be materially and adversely affected as a result of the deteriorating market outlook, the slowdown in regional and national

economic growth, weakened liquidity and financial condition of our customers or other factors that we cannot foresee.

factors and other factors beyond our control could have an adverse effect on the overall business environment, cause uncertainties

in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely

impact our business, financial condition and results of operations.

of Operations

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Other income(expense)

Net revenues totaled $95,849 for the year

ended December 31, 2018, a decrease of $165,124 compared to that of 2017.

This is a 63.3% decrease in net revenues

compared to that of 2017.

Such decrease was primarily due to a decrease in sales from $139,990 to

$46,585 with related parties, and a decrease in sales from $165,124 to $93,405 with non-related parties.

Cost of revenue totaled $46,497 for the year

ended December 31, 2018, which is a decrease of $88,231 compared to that of 2017.

Such decrease is due to a decrease

in our revenue and hence a decrease in our supplies procurement.

Our cost of revenues consisted mainly

of supplies procurement.

Gross profit was $49,352 and $126,245 for

the year ended December 31, 2018 and 2017, respectively.

The decrease in gross profit was due to a decrease in our revenue

in the fiscal year 2018.

General and administrative expenses totaled

$315,437 for the year ended December 31, 2018, which is an increase of $4,352 compared to that of 2017.

was primarily due to an increase in expense for professional services.

Net loss totaled $262,424 for the year ended

December 31, 2018, which is an increase of $74,928 compared to that of 2017.

Such increase was due to a decrease

in our revenue.

totaled $275,219 for the year ended December 31, 2019, an increase of $179,370, or 187.1%, as compared to that of 2018.

for the increase was our adoption of new sales and marketing strategies, including price reduction and online marketing, which

increased our sales volume.

of revenue totaled $216,222 for the year ended December 31, 2019, an increase of $169,725, or 365.02%, as compared to that of

The increase in cost of revenue was due to the increase of our revenue.

The Company has not yet achieved economies of

scale in its business, so it is not able to procure products at higher discount level from purchasing at higher volumes.

profit was $58,997 and $49,352 for the years ended December 31, 2019 and 2018, respectively.

Gross profit margin decreased to

21.44% for the year ended December 31, 2019 from 51.5% for the corresponding period in 2018 primarily due to the decrease in the

sales price of our products, as part of our strategies to promote more sales.

and administrative expenses totaled $439,340 for the year ended December 31, 2019, an increase of $123,903, or 39.28%,

as compared to that of 2018.

The increase was primarily due to an increase in professional service fees.

loss totaled $377,756 for the year ended December 31, 2019, an increase of $115,332, of 43.95%, as compared to that of 2018, primarily

as a result of the increase in cost of revenue and operating expenses.

and Capital Resources

current assets

current liabilities

As of December 31, 2018, we had cash and cash

equivalents in an amount of $29,999.

To date, we have financed our operations primarily though borrowings

from related parties.

The change in working capital was primarily from an increase in due from our related parties.

Ended December 31,

Flows (used in) generated in Operating Activities

Flows used in Investing Activities

Flows provided by(used in) Financing Activities

(decrease) increase in Cash During Period

Flow from Operating Activities

Net cash flow used in operating activities

for the year ended December 31, 2018 was $230,379 as compared to that of $279,270 in 2017.

The Company experienced an overall

net loss of $262,424, this was partially offset by a decrease in inventory of $33,816, other working capital account balances

remained stable during the period.

Total current assets

Total current liabilities

Working capital deficit

As of December 31, 2019, we had cash and

cash equivalents in the amount of $38,137.

We financed our operations primarily though borrowings from related parties.

The Company’s

current assets decreased significantly as a result of continued operating losses and net cash used in operating activities.

Accordingly, the corresponding working capital deficit increased as a result of the decrease in current assets and the increase

in current liabilities.

Years Ended December 31,

Cash Flows (used in) generated in Operating Activities

Cash Flows used in Investing Activities

Cash Flows provided by (used in) Financing

Net (decrease) increase in Cash During Period

Cash Flow from Operating Activities

flow used in operating activities for the year ended December 31, 2019 was $173,646 as compared to that of $230,379 in 2018,

reflecting an increase of $56,733.

The change is a result of the Company liquidating its inventory in the amount of

The Company decreased its inventory position during the end of 2019 in order to generate and conserve cash, and did

not commit additional cash to inventory which would mitigate the risk of impaired inventory as result of expected limited

demand during the time when the COVID-19 pandemic was growing globally.

Flow from Financing Activities

Net cash flow provided by financing

activities was $182,417 for the year ended December 31, 2018, compared to that of $254,712 in

The Company’s net cash flow provided by financing activities consisted mainly of borrowings from

our CEO and Director Mr.

Yumin Lin, who is a related party to our Company.

Our decrease in net cash flow provided by financing

activities was due to our decreased borrowings from Mr.

flow provided by financing activities was $182,306 for the year ended December 31, 2019, compared to that of $182,417 in 2018.

The decrease in net cash provided by financing activities was mainly due to decrease in the amount of loans from related parties.

Accounting Policy and Estimates

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Quantitative and Qualitative Disclosures about Market Risk

applicable to a smaller reporting company.

a smaller reporting company, we are not required to provide the information required by this item.

Financial Statements and Supplementary Data

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity