What changed in this filing

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Item 1. Financial Statements

2024-11-12 compared with 2024-08-14 · 414 added, 344 removed, 88 unchanged (90% of the section changed)

Financial Statements

YUAN HOLDING GROUP

June 30, 2024

December 31, 2023

HONG YUAN HOLDING GROUP

BALANCE SHEETS

September 30,

ASSETS, NONCURRENT

LIABILITIES AND STOCKHOLDERS’ DEFICIT

7 unchanged sentences

5,000,000 shares authorized;

$ 0.001 par value 5,000,000 issued and outstanding at June 30, 2024 and December 31, 2023

$ 0.001 par value 5,000,000 issued and outstanding at

September 30, 2024 and December 31, 2023

Common stock:

250,000,000 shares authorized;

$ 0.001 par value 74,640,766 shares issued and outstanding at June 30, 2024 and December 31, 2023 respectively.

$ 0.001 par value 74,640,766 shares issued and outstanding at September 30, 2024 and

December 31, 2023

Additional Paid-in Capital

4 unchanged sentences

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

accompanying notes are an integral part of these unaudited financial statements.

YUAN HOLDING GROUP

OF OPERATIONS

The accompanying notes are an integral part of these

unaudited financial statements.

HONG YUAN HOLDING GROUP

STATEMENTS OF OPERATIONS

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Operating Expenses

7 unchanged sentences

Weighted average number of common shares outstanding - basic and diluted

accompanying notes are an integral part of these unaudited financial statements.

YUAN HOLDING GROUP

OF STOCKHOLDERS’ EQUITY

The accompanying notes are an integral part of these

unaudited financial statements.

HONG YUAN HOLDING GROUP

STATEMENT OF STOCKHOLDERS’ EQUITY

Common Stock:

7 unchanged sentences

Net loss for the period ended

Balance – March 31 , 2024

Balance – June 30 , 2024

$ ( 97,442,615 )

1 unchanged sentence

Net loss for the period ended

Balance – June 30 , 2024

Balance – September 30 , 2024

$ ( 97,448,110 )

9 unchanged sentences

Net loss for the period ended

Balance – March 31, 2023

Balance – June 30, 2023

$ ( 97,398,454 )

3 unchanged sentences

Net loss for the period ended

Balance – June 30, 2023

Balance –September 30, 2023

$ ( 97,408,620 )

2 unchanged sentences

$ ( 142,943 )

accompanying notes are an integral part of these unaudited financial statements.

YUAN HOLDING GROUP

OF CASH FLOWS

Six Months Ended

The accompanying notes are an integral part of these

unaudited financial statements.

HONG YUAN HOLDING GROUP

STATEMENTS OF CASH FLOWS

Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES

12 unchanged sentences

Cash paid for interest

accompanying notes are an integral part of these unaudited financial statements.

YUAN HOLDING GROUP

TO FINANCIAL STATEMENTS

1 – Organization and basis of accounting

of Presentation and Organization

summary of significant accounting policies of Hong Yuan Holding Group.

(a development stage company) (“the Company”) is presented

to assist in understanding the Company’s financial statements.

These accounting policies conform to accounting principles generally

accepted in the United States of America and have been consistently applied in the preparation of the accompanying financial statements.

The Company has realized minimal revenues from its planned principal business purpose and, accordingly, is considered to be in its development

stage in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)

The accompanying notes are an integral part of these

unaudited financial statements.

HONG YUAN HOLDING GROUP

NOTES TO FINANCIAL STATEMENTS

September 30, 2024

Note 1 – Organization and basis of accounting

Basis of Presentation and Organization

This summary of significant accounting policies of

Hong Yuan Holding Group.

(a development stage company) (“the Company”) is presented to assist in understanding the Company’s

financial statements.

These accounting policies conform to accounting principles generally accepted in the United States of America and

have been consistently applied in the preparation of the accompanying financial statements.

The Company has realized minimal revenues

from its planned principal business purpose and, accordingly, is considered to be in its development stage in accordance with Financial

Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No.

915 (SFAS No.

The Company has elected a fiscal year end of December 31.

were incorporated on September 29, 2001 in the State of Nevada under the name of Biocorp North America Inc.

On March 18, 2005, we filed

an amendment to our certificate of incorporation to change our name to Cereplast, Inc.

February 10, 2014, the Company, filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Bankruptcy Code

in the United States Bankruptcy Court for the Southern District of Indiana (the “Bankruptcy Court “).

On February 14, 2014,

the Company filed a motion in the Bankruptcy Court seeking to convert the Company’s Chapter 11 Case to a Chapter 7 bankruptcy case.

On March 27, 2014, the court granted the Company’s motion and on that date the Company’s Chapter 11 Case was converted to

a Chapter 7 case.

As a result, the Company adopted liquidation basis of accounting on the discontinued operations according to ASC 205-30

“Presentation of Financial Statements – Liquidation Basis of Accounting”, accordingly the accumulated deficit generated

prior to bankruptcy proceedings remained unadjusted.

January 31, 2014, the Board of Directors of Cereplast, Inc.

(the “Company”) approved a 1-for-50 reverse split (the “Reverse

Split) which was previously approved by the shareholders on April 5, 2013 and previously disclosed on Current Report Form 8-K filed on

April 5, 2013.

February 3, 2014, Cereplast, Inc.

(the “Company”) filed a Certificate of Amendment to its Articles of Incorporation to effect

the reverse split (the “Reverse Split”), effective as of February 21, 2014.

March 22, 2019, the eight judicial District Court of Nevada appointed Custodian Ventures, LLC as custodian for Cereplast, Inc., proper

notice having been given to the officers and directors of Cereplast, Inc.

Company has elected a fiscal year end of December 31.

Business Description

We were incorporated on September

29, 2001 in the State of Nevada under the name of Biocorp North America Inc.

On March 18, 2005, we filed an amendment to our certificate

of incorporation to change our name to Cereplast, Inc.

On February 10, 2014, the

Company, filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Bankruptcy Code in the United States

Bankruptcy Court for the Southern District of Indiana (the “Bankruptcy Court “).

On February 14, 2014, the Company filed a

motion in the Bankruptcy Court seeking to convert the Company’s Chapter 11 Case to a Chapter 7 bankruptcy case.

On March 27, 2014,

the court granted the Company’s motion and on that date the Company’s Chapter 11 Case was converted to a Chapter 7 case.

a result, the Company adopted liquidation basis of accounting on the discontinued operations according to ASC 205-30 “Presentation

of Financial Statements – Liquidation Basis of Accounting”, accordingly the accumulated deficit generated prior to bankruptcy

proceedings remained unadjusted.

On January 31, 2014, the Board of Directors of Cereplast,

(the “Company”) approved a 1-for-50 reverse split (the “Reverse Split) which was previously approved by the shareholders

on April 5, 2013 and previously disclosed on Current Report Form 8-K filed on April 5, 2013.

On February 3, 2014, Cereplast, Inc.

(the “Company”)

filed a Certificate of Amendment to its Articles of Incorporation to effect the reverse split (the “Reverse Split”), effective

as of February 21, 2014.

On March 22, 2019, the eight judicial District Court

of Nevada appointed Custodian Ventures, LLC as custodian for Cereplast, Inc., proper notice having been given to the officers and directors

of Cereplast, Inc.

There was no opposition.

June 04, 2019, the Company filed a certificate of revival with the state of Nevada, appointing David Lazar as, President, Secretary,

Treasurer and Director.

October 4, 2019, the Company issued 50,000,000 shares of common stock to Custodian Ventures, LLC at par for shares valued at $ 50,000

in exchange for settlement of a portion of a related party loan for amounts advanced to the Company in the amount of $ 20,100 , and a note

receivable due to the Company in the amount of $ 29,900 .

The note bears an interest of 3 % and matures in 180 days following written demand

by the holder.

April 14, 2020, Custodian Ventures elected to convert the total amount of the 510 shares of Series A preferred stock into 510 shares

of common stock.

April 15, 2020, the Board of directors of the Company approved the withdrawal of the certificate of designation of 5,000,000 shares of

Series A Preferred stock filed with the Nevada Secretary of State on August 24, 2012, as amended by the Amendment to Certificate of Designation

after issuance of Class or Series filed with the Nevada Secretary of State on April 13, 2020.

May 1, 2020, the Company created 5,000,000 shares of series A-1 preferred stock with par value $ 0.001 .

On May 4, 2020, the Company issued

5,000,000 shares of the Series A-1 Preferred stock valued at $ 5,000 to Custodian Ventures LLC as repayment funds loaned to the Company.

change of control of the Company was completed on November 3, 2020, control was obtained by the sale of 50,000,000 common shares and

$ 5,000,000 Series A-1 Preferred Shares from Custodian Ventures, LLC to Xudong Li.

After November 3, 2020, the Company’s operations

are determined and structured by the new major shareholder.

November 18, 2020, the Company filed an amendment to its certificate of incorporation to change its name to Hong Yuan Holding Group.

accompanying financial statements are prepared on the basis of accounting principles generally accepted in the United States of America

The Company is a development stage enterprise devoting substantial efforts to establishing a new business, financial

planning, raising capital, and research into products which may become part of the Company’s product portfolio.

The Company has

not realized significant sales since inception.

A development stage company is defined as one in which all efforts are devoted substantially

to establishing a new business and, even if planned principal operations have commenced, revenues are insignificant.

Company is planning potential acquisitions.

The management has approached several companies in China and met the management of potential

acquisition targets.

The Company feels strongly that despite the challenges of cross border business, it might be able to acquire some

good growth companies and bring good values to our stockholders.

Although the Company is making some progress in the Merger and Acquisition

efforts, any potential results, if any, are still not certain.

accompanying financial statements have been prepared assuming the continuation of the Company as a going concern.

The Company has not

yet established an ongoing source of revenues sufficient to cover its operating costs and is dependent on debt and equity financing to

fund its operations.

Management of the Company is making efforts to raise additional funding until a registration statement relating

to an equity funding facility is in effect.

While management of the Company believes that it will be successful in its capital formation

and planned operating activities, there can be no assurance that the Company will be able to raise additional equity capital, or be successful

in the development and commercialization of the products it develops or initiates collaboration agreements thereon.

The accompanying

financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of

assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going

2 – Summary of significant accounting policies

Interim Financial Information

unaudited interim financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations

of the Securities and Exchange Commission that permit reduced disclosure for interim periods.

Therefore, certain information and footnote

disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted.

In the opinion

of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations

and cash flows for the periods presented have been made.

The results of operations for the interim periods presented are not necessarily

indicative of the results to be expected for the year ending December 31, 2024.

balance sheets and certain comparative information as of December 31, 2023 are derived from the audited financial statements and related

notes for the year ended December 31, 2023, included in the Company’s Form 10K.

These unaudited interim financial statements should

be read in conjunction with the annual consolidated financial statements and the accompanying notes contained in our Form 10K.

and Cash Equivalents

purposes of reporting within the statements of cash flows, the Company considers all cash on hand, cash accounts not subject to withdrawal

restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash and cash

Stock-Based Compensation

Company accounts for stock-based compensation in accordance with ASC 718 Compensation - Stock Compensation (“ASC 718”).

718 addresses all forms of share-based payment (“SBP”) awards including shares issued under employee stock purchase plans

and stock incentive shares.

Under ASC 718 awards result in a cost that is measured at fair value on the awards’ grant date, based

on the estimated number of awards that are expected to vest and will result in a charge to operations.

earnings (loss) per share are computed by dividing income available to common shareholders by the weighted-average number of common shares

Diluted earnings (loss) per share is computed similar to basic earnings per share except that the denominator is increased

to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and

if the additional common shares were dilutive.

The Company’s diluted loss per share is the same as the basic loss per share for

the six months ended June 30, 2024 and 2023, as there are no potential shares outstanding that would have a dilutive effect.

tax expense is based on pretax financial accounting income.

Deferred tax assets and liabilities are recognized for the expected tax consequences

of temporary differences between the tax bases of assets and liabilities and their reported amounts.

Valuation allowances are recorded

to reduce deferred tax assets to the amount that will more likely than not be realized.

The Company recorded a valuation allowance against

its deferred tax assets as of June 30, 2024 and December 31, 2023.

Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions.

first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more

likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any.

The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.

Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt)

of cash within one year.

Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.

On June 04, 2019, the Company filed a certificate

of revival with the state of Nevada, appointing David Lazar as, President, Secretary, Treasurer and Director.

On October 4, 2019, the Company issued 50,000,000

shares of common stock to Custodian Ventures, LLC at par for shares valued at $ 50,000 in exchange for settlement of a portion of a related

party loan for amounts advanced to the Company in the amount of $ 20,100 , and a note receivable due to the Company in the amount of $ 29,900 .

The note bears an interest of 3 % and matures in 180 days following written demand by the holder.

On April 14, 2020, Custodian Ventures elected to convert

the total amount of the 510 shares of Series A preferred stock into 510 shares of common stock.

On April 15, 2020, the Board of directors of the Company

approved the withdrawal of the certificate of designation of 5,000,000 shares of Series A Preferred stock filed with the Nevada Secretary

of State on August 24, 2012, as amended by the Amendment to Certificate of Designation after issuance of Class or Series filed with the

Nevada Secretary of State on April 13, 2020.

On May 1, 2020, the Company created 5,000,000 shares

of series A-1 preferred stock with par value $ 0.001 .

On May 4, 2020, the Company issued 5,000,000 shares of the Series A-1 Preferred stock

valued at $ 5,000 to Custodian Ventures LLC as repayment funds loaned to the Company.

A change of control of the Company was completed on

November 3, 2020, control was obtained by the sale of 50,000,000 common shares and $ 5,000,000 Series A-1 Preferred Shares from Custodian

Ventures, LLC to Xudong Li.

After November 3, 2020, the Company’s operations are determined and structured by the new major shareholder.

On November 18, 2020, the

Company filed an amendment to its certificate of incorporation to change its name to Hong Yuan Holding Group.

The accompanying financial statements are prepared

on the basis of accounting principles generally accepted in the United States of America (“GAAP”).

The Company is a development

stage enterprise devoting substantial efforts to establishing a new business, financial planning, raising capital, and research into products

which may become part of the Company’s product portfolio.

The Company has not realized significant sales since inception.

A development

stage company is defined as one in which all efforts are devoted substantially to establishing a new business and, even if planned principal

operations have commenced, revenues are insignificant.

The Company is planning potential acquisitions.

management has approached several companies in China and met the management of potential acquisition targets.

The Company feels strongly

that despite the challenges of cross border business, it might be able to acquire some good growth companies and bring good values to

our stockholders.

Although the Company is making some progress in the Merger and Acquisition efforts, any potential results, if any, are

still not certain.

The accompanying financial statements have been prepared

assuming the continuation of the Company as a going concern.

The Company has not yet established an ongoing source of revenues sufficient

to cover its operating costs and is dependent on debt and equity financing to fund its operations.

Management of the Company is making

efforts to raise additional funding until a registration statement relating to an equity funding facility is in effect.

While management

of the Company believes that it will be successful in its capital formation and planned operating activities, there can be no assurance

that the Company will be able to raise additional equity capital, or be successful in the development and commercialization of the products

it develops or initiates collaboration agreements thereon.

The accompanying financial statements do not include any adjustments to reflect

the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may

result from the possible inability of the Company to continue as a going concern.

Note 2 – Summary of significant accounting

Unaudited Interim Financial Information

These unaudited interim financial statements have

been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission

that permit reduced disclosure for interim periods.

Therefore, certain information and footnote disclosures normally included in financial

statements prepared in accordance with GAAP have been condensed or omitted.

In the opinion of management, all adjustments of a normal

recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented

have been made.

The results of operations for the interim periods presented are not necessarily indicative of the results to be expected

for the year ending December 31, 2024.

The balance sheets and certain comparative information

as of December 31, 2023 are derived from the audited financial statements and related notes for the year ended December 31, 2023, included

in the Company’s Form 10K.

These unaudited interim financial statements should be read in conjunction with the annual consolidated

financial statements and the accompanying notes contained in our Form 10K.

Cash and Cash Equivalents

For purposes of reporting within the statements of

cash flows, the Company considers all cash on hand, cash accounts not subject to withdrawal restrictions or penalties, and all highly

liquid debt instruments purchased with a maturity of three months or less to be cash and cash equivalents.

Employee Stock-Based Compensation

The Company accounts for stock-based compensation

in accordance with ASC 718 Compensation - Stock Compensation (“ASC 718”).

ASC 718 addresses all forms of share-based payment

(“SBP”) awards including shares issued under employee stock purchase plans and stock incentive shares.

Under ASC 718 awards

result in a cost that is measured at fair value on the awards’ grant date, based on the estimated number of awards that are expected

to vest and will result in a charge to operations.

Loss per Share

Basic earnings (loss) per share are computed by dividing

income available to common shareholders by the weighted-average number of common shares available.

Diluted earnings (loss) per share is

computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares

that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.

Company’s diluted loss per share is the same as the basic loss per share for the nine months ended September 30, 2024 and 2023,

as there are no potential shares outstanding that would have a dilutive effect.

Income tax expense is based on pretax financial accounting

Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax

bases of assets and liabilities and their reported amounts.

Valuation allowances are recorded to reduce deferred tax assets to the amount

that will more likely than not be realized.

The Company recorded a valuation allowance against its deferred tax assets as of September

30, 2024 and December 31, 2023.

The Company accounts for uncertainty in income taxes

using a two-step approach to recognizing and measuring uncertain tax positions.

The first step is to evaluate the tax position for recognition

by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit,

including resolution of related appeals or litigation processes, if any.

The second step is to measure the tax benefit as the largest

amount that is more than 50% likely of being realized upon settlement.

The Company classifies the liability for unrecognized tax benefits

as current to the extent that the Company anticipates payment (or receipt) of cash within one year.

Interest and penalties related to

uncertain tax positions are recognized in the provision for income taxes.

3 – Going Concern

accompanying financial statements have been prepared assuming the continuation of the Company as a going concern.

The Company has not

yet established an ongoing source of revenues sufficient to cover its operating costs and is dependent on debt and equity financing to

fund its operations.

Management of the Company is making efforts to raise additional funding until a registration statement relating

to an equity funding facility is in effect.

While management of the Company believes that it will be successful in its capital formation

and planned operating activities, there can be no assurance that the Company will be able to raise additional equity capital or be successful

in the development and commercialization of the products it develops or initiates collaboration agreements thereon.

The accompanying

financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of

assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going

4 – Related party transaction

the six months ended June 30, 2024, the Company’s current majority shareholder advanced $ 20,280 to the Company as working capital.

As of June 30, 2024 and December 31, 2023, the Company owed its current majority shareholders of $ 170,455 and $ 150,175 , respectively.

The advances are non-interest bearing and are due on demand.

5 – Common stock

June 30, 2024, the Company is authorized to issue 250,000,000 shares of $ 0.001 par value common stock.

of June 30, 2024, a total of 74,640,766 shares of common stock with par value $ 0.001 remain outstanding.

6 – Preferred stock

of June 30, 2024, a total of 5,000,000 shares of Series A-1 preferred stock with par value $ 0.001 is authorized and remain outstanding.

7 – Income Taxes

taxes represent the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial

reporting purposes.

Temporary differences result primarily from the recording of tax benefits of net operating loss carry forwards.

of June 30, 2024, the Company has an insufficient history to support the likelihood of ultimate realization of the benefit associated

with the deferred tax asset.

Accordingly, a valuation allowance has been established for the full amount of the net deferred tax asset.

Tax Positions

associated with unrecognized tax benefits are classified as income tax, and penalties are classified in selling, general and administrative

expenses in the statements of operations.

For the six months ended June 30, 2024 and 2023, the Company had no unrecognized tax benefits

and related interest and penalties expenses.

The accompanying financial statements have been prepared

assuming the continuation of the Company as a going concern.

The Company has not yet established an ongoing source of revenues sufficient

to cover its operating costs and is dependent on debt and equity financing to fund its operations.

Management of the Company is making

efforts to raise additional funding until a registration statement relating to an equity funding facility is in effect.

While management

of the Company believes that it will be successful in its capital formation and planned operating activities, there can be no assurance

that the Company will be able to raise additional equity capital or be successful in the development and commercialization of the products

it develops or initiates collaboration agreements thereon.

The accompanying financial statements do not include any adjustments to reflect

the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may

result from the possible inability of the Company to continue as a going concern.

Note 4 – Related party transaction

During the nine months ended September 30, 2024, the

Company’s current majority shareholder advanced $ 31,218 to the Company as working capital.

As of September 30, 2024 and December

31, 2023, the Company owed its current majority shareholders of $ 181,393 and $ 150,175 , respectively.

The advances are non-interest bearing

and are due on demand.

Note 5 – Common stock

At September 30, 2024, the Company is authorized to

issue 250,000,000 shares of $ 0.001 par value common stock.

As of September 30, 2024, a total of 74,640,766 shares

of common stock with par value $ 0.001 remain outstanding.

Note 6 – Preferred stock

As of September 30, 2024, a total of 5,000,000 shares

of Series A-1 preferred stock with par value $ 0.001 is authorized and remain outstanding.

Note 7 – Income Taxes

Deferred taxes represent the net tax effects of the

temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes.

Temporary differences result

primarily from the recording of tax benefits of net operating loss carry forwards.

As of September 30, 2024, the Company has an insufficient

history to support the likelihood of ultimate realization of the benefit associated with the deferred tax asset.

Accordingly, a valuation

allowance has been established for the full amount of the net deferred tax asset.

Uncertain Tax Positions

Interest associated with unrecognized tax benefits

are classified as income tax, and penalties are classified in selling, general and administrative expenses in the statements of operations.

For the nine months ended September 30, 2024 and 2023, the Company had no unrecognized tax benefits and related interest and penalties

Currently, the Company is not subject to examination by major tax jurisdictions.

8 – Subsequent Event

accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial

statements were available to be issued, and has determined that it does not have any material subsequent events to disclose in these

financial statements.

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

Looking Statement Notice

statements made in this Quarterly Report on Form 10-Q are “ forward-looking statements ” (within the meaning of the

Private Securities Litigation Reform Act of 1995) regarding the plans and objectives of management for future operations.

Such statements

involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Crown

Marketing, (“ we ”, “ us ”, “ our ” or the “ Company ”) to be materially

different from any future results, performance or achievements expressed or implied by such forward-looking statements.

The forward-looking

statements included herein are based on current expectations that involve numerous risks and uncertainties.

The Company’s plans

and objectives are based, in part, on assumptions involving the continued expansion of business.

Assumptions relating to the foregoing

involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions,

all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company.

Company believes its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate

and, therefore, there can be no assurance the forward-looking statements included in this Quarterly Report will prove to be accurate.

In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information

should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

Company was incorporated in the state of Nevada on September 14, 2001 under the name Biocorp North America, Inc.

On July 19, 2004 the

Company changed its name to Nat-UR, Inc.

and on March 18, 2005 it changed its name again to Cereplast, Inc.

In the summer of 2014, the

Company ceased all operations.

March 22, 2019, the eight judicial District Court of Nevada appointed Custodian Ventures, LLC as custodian for Cereplast, Inc., proper

notice having been given to the officers and directors of Cereplast, Inc.

Note 8 – Subsequent Event

In accordance with SFAS 165 (ASC 855-10) management

has performed an evaluation of subsequent events through the date that the financial statements were available to be issued, and has determined

that it does not have any material subsequent events to disclose in these financial statements.

Management ’ s Discussion and

Analysis of Financial Condition and Results of Operations.

Forward Looking Statement Notice

Certain statements made in this Quarterly Report on

Form 10-Q are “ forward-looking statements ” (within the meaning of the Private Securities Litigation Reform Act of 1995)

regarding the plans and objectives of management for future operations.

Such statements involve known and unknown risks, uncertainties

and other factors that may cause actual results, performance or achievements of Crown Marketing, (“ we ”, “ us ”,

“ our ” or the “ Company ”) to be materially different from any future results, performance or achievements

expressed or implied by such forward-looking statements.

The forward-looking statements included herein are based on current expectations

that involve numerous risks and uncertainties.

The Company’s plans and objectives are based, in part, on assumptions involving the

continued expansion of business.

Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic,

competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many

of which are beyond the control of the Company.

Although the Company believes its assumptions underlying the forward-looking statements

are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance the forward-looking statements

included in this Quarterly Report will prove to be accurate.

In light of the significant uncertainties inherent in the forward-looking

statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person

that the objectives and plans of the Company will be achieved.

The Company was incorporated in the state of Nevada

on September 14, 2001 under the name Biocorp North America, Inc.

On July 19, 2004 the Company changed its name to Nat-UR, Inc.

March 18, 2005 it changed its name again to Cereplast, Inc.

In the summer of 2014, the Company ceased all operations.

On March 22, 2019, the eight judicial District Court

of Nevada appointed Custodian Ventures, LLC as custodian for Cereplast, Inc., proper notice having been given to the officers and directors

of Cereplast, Inc.

There was no opposition.

June 04, 2019, the Company filed a certificate of revival with the state of Nevada, appointing David Lazar as, President, Secretary,

Treasurer and Director.

change of control of the Company was completed on November 3, 2020, control was obtained by the sale of 50,000,000 common shares and

$5,000,000 Series A-1 Preferred Shares from Custodian Ventures, LLC to Xudong Li.

After November 3, 2020, the Company’s operations

are determined and structured by the new major shareholder.

November 18, 2020, the Company filed an amendment to its certificate of incorporation to change its name to Hong Yuan Holding Group.

have not yet generated sustained profits from our prior operations.

Our independent accountants have expressed a “going concern”

As of June 30, 2024, we had an accumulated deficit of $97,442,615 and a net working capital deficit of $176,938.

our current burn rate is nominal, it is expected that our costs of operations will continue to exceed revenues, primarily due to the

costs associated with being a public reporting company.

Based upon our current business plan, we may continue to incur losses in the

foreseeable future and there can be no assurances that we will ever establish profitable operations.

These and other factors raise substantial

doubt about our ability to continue as a going concern.

Company is planning potential acquisitions.

The management has approached several companies in China and met the management of potential

acquisition targets.

The Company feels strongly that despite the challenges of cross border business, it might be able to acquire some

good growth companies and bring good values to our stockholders.

Although the Company is making some progress in the Merger and Acquisition

efforts, any potential results, if any, are still not certain.

Accounting Policies, Judgments and Estimates

discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which

have been prepared in accordance with U.S.

Generally Accepted Accounting Principles (“GAAP”).

The preparation of these consolidated

financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities,

revenues and expenses, and the related disclosure of contingent assets and liabilities.

We base our estimates on historical experience

and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making

judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

Actual results may differ

from these estimates.

accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that

are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in

the accounting estimate that are reasonably likely to occur, could materially impact the consolidated financial statements.

that the following critical accounting policies reflect the more significant estimates and assumptions used in the preparation of the

consolidated financial statements.

2014-09 , Revenue from Contracts with Customers (“Topic 606”), became effective for the Company on January

1, 2018 and were adopted using the modified retrospective method.

The adoption of the new revenue standards as of January 1, 2018 did

not change the Company’s revenue recognition as there were no revenues during the period.

the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount

that reflects the consideration which it expects to receive in exchange for those goods.

The Company recognizes revenues following the

five step model prescribed under ASU No.

On June 04, 2019, the Company filed a certificate

of revival with the state of Nevada, appointing David Lazar as, President, Secretary, Treasurer and Director.

A change of control of the Company was completed on

November 3, 2020, control was obtained by the sale of 50,000,000 common shares and $5,000,000 Series A-1 Preferred Shares from Custodian

Ventures, LLC to Xudong Li.

After November 3, 2020, the Company’s operations are determined and structured by the new major shareholder.

On November 18, 2020, the Company filed an amendment

to its certificate of incorporation to change its name to Hong Yuan Holding Group.

We have not yet generated sustained profits from our

prior operations.

Our independent accountants have expressed a “going concern” opinion.

As of September 30, 2024, we had an

accumulated deficit of $97,448,110 and a net working capital deficit of $182,433.

While our current burn rate is nominal, it is expected

that our costs of operations will continue to exceed revenues, primarily due to the costs associated with being a public reporting company.

Based upon our current business plan, we may continue to incur losses in the foreseeable future and there can be no assurances that we

will ever establish profitable operations.

These and other factors raise substantial doubt about our ability to continue as a going concern.

The Company is planning potential acquisitions.

management has approached several companies in China and met the management of potential acquisition targets.

The Company feels strongly

that despite the challenges of cross border business, it might be able to acquire some good growth companies and bring good values to

our stockholders.

Although the Company is making some progress in the Merger and Acquisition efforts, any potential results, if any, are

still not certain.

Critical Accounting Policies, Judgments and Estimates

Our discussion and analysis of our financial condition

and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with U.S.

Accepted Accounting Principles (“GAAP”).

The preparation of these consolidated financial statements requires us to make estimates,

judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of

contingent assets and liabilities.

We base our estimates on historical experience and on various other assumptions that we believe are

reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities

that are not readily apparent from other sources.

Actual results may differ from these estimates.

An accounting policy is considered to be critical

if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate

is made, and if different estimates that reasonably could have been used, or changes in the accounting estimate that are reasonably likely

to occur, could materially impact the consolidated financial statements.

We believe that the following critical accounting policies reflect

the more significant estimates and assumptions used in the preparation of the consolidated financial statements.

Revenue Recognition

2014-09 , Revenue from Contracts

with Customers (“Topic 606”), became effective for the Company on January 1, 2018 and were adopted using the modified

retrospective method.

The adoption of the new revenue standards as of January 1, 2018 did not change the Company’s revenue recognition

as there were no revenues during the period.

Under the new revenue standards, the Company recognizes

revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects

to receive in exchange for those goods.

The Company recognizes revenues following the five step model prescribed under ASU No.

(i) identify contract(s) with a customer;

(ii) identify the performance obligations

in the contract;

(ii) identify the performance obligations in the contract;

(iii) determine the transaction price;

(iv) allocate the transaction price to the performance obligations in the contract;

and (v) recognize revenues when (or as) we satisfy the performance obligation.

Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad

debt expense when deemed necessary.

Our allowance for doubtful accounts is maintained to provide for losses arising from customers’

inability to make required payments.

If there is deterioration of our customers’ credit worthiness and/or there is an increase

in the length of time that the receivables are past due greater than the historical assumptions used, additional allowances may be required.

The Company has no accounts receivables and therefore as of June 30, 2024 and December 31, 2023, no allowance for doubtful accounts is

Company follows the asset and liability method of accounting for future income taxes.

Under this method, future income tax assets and

liabilities are recorded based on temporary differences between the carrying amount of assets and liabilities and their corresponding

In addition, the future benefits of income tax assets including unused tax losses, are recognized, subject to a valuation

allowance to the extent that it is more likely than not that such future benefits will ultimately be realized.

Future income tax assets

and liabilities are measured using enacted tax rates and laws expected to apply when the tax liabilities or assets are to be either settled

The Company’s effective tax rate approximates the Federal statutory rates.

of Operations for the Three and Six Months Ended June 30, 2024 compared to the Three and Six Months Ended June 30, 2023

the three and six months ended June 30, 2024 and 2023, we generated no revenues.

expenses, during the quarter ended June 30, 2024, was $10,305 compared to $9,231 during the quarter ended June 30, 2023, an increase

of $1,074 or 11.6%.

The increase was mainly due to the higher professional fees.

Operating expenses, during the six months ended June

30, 2024, was $25,694 compared to $21,253 during the six months ended June 30, 2023, an increase of $4,441 or 20.9%.

The increase was

mainly due to the higher professional fees.

the quarter ended June 30, 2024, the Company incurred a net loss of $10,305, compared to a net loss of $9,231 during the quarter ended

June 30, 2023, an increase of $1,074.

The increase in net loss in the quarter ended June 30, 2024 was primarily due to the increase in

operating expenses.

During the six months ended June 30, 2024, the Company incurred a net loss of $25,694, compared to a net loss of

$21,253 during the six months ended June 30, 2023, an increase of $4,441.

The increase in net loss in the six months ended June 30, 2024

was primarily due to the increase in operating expenses.

and Capital Resources

of June 30, 2024 and December 31, 2023, we had a cash balance of $0.

Due to the lack of revenue, the company’s operations are primarily

funded by the Company’s CEO and major shareholder.

the extent that the Company’s capital resources are insufficient to meet current or planned operating requirements, the Company

will seek additional funds through equity or debt financing, collaborative or other arrangements with corporate partners, licensees or

others, and from other sources, which may have the effect of diluting the holdings of existing shareholders.

The Company has no current

arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders

will provide any portion of the Company’s future financing requirements.

Xudong, the CEO and principal shareholder of the Company,

would favorably entertain funding, through loans, corporate expenses for approximately 24 months.

and (v) recognize revenues when (or as) we satisfy

the performance obligation.

Accounts receivable

The Company reviews accounts receivable periodically

for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary.

Our allowance

for doubtful accounts is maintained to provide for losses arising from customers’ inability to make required payments.

is deterioration of our customers’ credit worthiness and/or there is an increase in the length of time that the receivables are

past due greater than the historical assumptions used, additional allowances may be required.

The Company has no accounts receivables

and therefore as of September 30, 2024 and December 31, 2023, no allowance for doubtful accounts is necessary.

The Company follows the asset and liability method

of accounting for future income taxes.

Under this method, future income tax assets and liabilities are recorded based on temporary differences

between the carrying amount of assets and liabilities and their corresponding tax basis.

In addition, the future benefits of income tax

assets including unused tax losses, are recognized, subject to a valuation allowance to the extent that it is more likely than not that

such future benefits will ultimately be realized.

Future income tax assets and liabilities are measured using enacted tax rates and laws

expected to apply when the tax liabilities or assets are to be either settled or realized.

The Company’s effective tax rate approximates

the Federal statutory rates.

Results of Operations for the Three and Nine Months

Ended September 30, 2024 compared to the Three and Nine Months Ended September 30, 2023

During the three and nine months ended September 30,

2024 and 2023, we generated no revenues.

Operating expenses, during the quarter ended September

30, 2024, was $5,495 compared to $10,166 during the quarter ended September 30, 2023, a decrease of $4,671 or 45.9%.

The decrease was

mainly due to the lower professional fees.

Operating expenses, during the nine months ended September 30, 2024, was $31,189 compared to

$31,419 during the nine months ended September 30, 2023, a decrease of $230 or 0.7%, relatively flat

During the quarter ended September 30, 2024, the Company

incurred a net loss of $5,495, compared to a net loss of $10,166 during the quarter ended September 30, 2023, a decrease of $4,671.

decrease in net loss in the quarter ended September 30, 2024 was primarily due to the decrease in operating expenses.

During the nine

months ended September 30, 2024, the Company incurred a net loss of $31,189, compared to a net loss of $31,419 during the nine months

ended September 30, 2023, a decrease of $230, relatively flat.

Liquidity and Capital Resources

As of September 30, 2024 and December 31, 2023, we

had a cash balance of $0.

Due to the lack of revenue, the company’s operations are primarily funded by the Company’s CEO and

major shareholder.

To the extent that the Company’s capital resources

are insufficient to meet current or planned operating requirements, the Company will seek additional funds through equity or debt financing,

collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of

diluting the holdings of existing shareholders.

The Company has no current arrangements with respect to, or sources of, such additional

financing and the Company does not anticipate that existing shareholders will provide any portion of the Company’s future financing

requirements.

Xudong, the CEO and principal shareholder of the Company, would favorably entertain funding, through loans, corporate

expenses for approximately 24 months.

Any loans by Mr.

Xudong would be on

an interest-free basis, documented by a promissory note and payable only upon consummation of a business combination transaction.

consummation of a business combination, we or the target may reimburse Mr.

Xudong would be on an interest-free basis, documented by a promissory note and

payable only upon consummation of a business combination transaction.

Upon consummation of a business combination, we or the target may

reimburse Mr.

Xudong for any such loans from funds furnished by the target.

We have no written agreement with Mr.

Xudong to advance any further funds for future operating expense, therefore there is no assurance

that such funds from Mr.

Xudong to advance any

further funds for future operating expense, therefore there is no assurance that such funds from Mr.

Xudong will be forth coming, if required.

assurance can be given that additional financing will be available when needed or that such financing will be available on terms acceptable

to the Company.

If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its

programs that it would otherwise seek to develop and commercialize.

No assurance can be given that additional financing

will be available when needed or that such financing will be available on terms acceptable to the Company.

If adequate funds are not available,

the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and

commercialize.

This would have a material adverse effect on the Company.

These factors

raise substantial doubt about the ability of the Company to continue as a going concern.

neither generated nor used cash in operating activities during the six months ended June 30, 2024 and 2023.

neither generated nor used cash in investing activities during the six months ended June 30, 2024 and 2023.

neither generated nor used cash in financing activities during the six months ended June 30, 2024 and 2023.

accompanying financial statements have been prepared assuming that the Company will continue as a going concern.

As shown in the accompanying

financial statements, we have incurred net losses of $25,694 and $21,253 for the six months ended June 30, 2024 and 2023, respectively,

and have a working capital deficit of $176,938 as of June 30, 2024, in addition to a stockholders’ deficit of $176,938 which raise

substantial doubt about the Company’s ability to continue as a going concern.

believes the Company will continue to incur losses and negative cash flows from operating activities for the foreseeable future and will

need additional equity or debt financing to sustain its operations until it can achieve profitability and positive cash flows, if ever.

Management plans to seek additional debt and/or equity financing for the Company but cannot assure that such financing will be available

on acceptable terms.

Company’s continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient

cash flow to meet its obligations, and obtain additional financing as may be required.

Our auditors have included a “going concern”

qualification in their Report of Independent Certified Public Accountants accompanying our audited financial statements appearing elsewhere

herein which cites substantial doubt about our ability to continue as a going concern.

Such a “going concern” qualification

may make it more difficult for us to raise funds when needed.

These factors raise substantial doubt about the ability of the

Company to continue as a going concern.

Operating Activities

We neither generated nor used cash in operating activities

during the nine months ended September 30, 2024 and 2023.

Investing Activities

We neither generated nor used cash in investing activities

during the nine months ended September 30, 2024 and 2023.

Financing Activities

We neither generated nor used cash in financing activities

during the nine months ended September 30, 2024 and 2023.

Going Concern

The accompanying financial statements have been prepared

assuming that the Company will continue as a going concern.

As shown in the accompanying financial statements, we have incurred net losses

of $31,189 and $31,419 for the nine months ended September 30, 2024 and 2023, respectively, and have a working capital deficit of $182,433

as of September 30, 2024, in addition to a stockholders’ deficit of $182,433 which raise substantial doubt about the Company’s

ability to continue as a going concern.

Management believes the Company will continue to incur

losses and negative cash flows from operating activities for the foreseeable future and will need additional equity or debt financing

to sustain its operations until it can achieve profitability and positive cash flows, if ever.

Management plans to seek additional debt

and/or equity financing for the Company but cannot assure that such financing will be available on acceptable terms.

The Company’s continuation as a going concern

is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain

additional financing as may be required.

Our auditors have included a “going concern” qualification in their Report of Independent

Certified Public Accountants accompanying our audited financial statements appearing elsewhere herein which cites substantial doubt about

our ability to continue as a going concern.

Such a “going concern” qualification may make it more difficult for us to raise

funds when needed.

The outcome of this uncertainty cannot be assured.

accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

no assurance that management will be successful in implementing its business plan or that the successful implementation of such business

plan will actually improve our operating results.

Balance Sheet Arrangements

have not entered into 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 and would be considered material to investors.

do not believe that inflation has had in the past or will have in the future any significant negative impact on our operations.

Quantitative and Qualitative Disclosures About Market Risk.

a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information

required by this Item.

The accompanying financial statements do not include

any adjustments that might result from the outcome of this uncertainty.

There can be no assurance that management will be successful in

implementing its business plan or that the successful implementation of such business plan will actually improve our operating results.

Off Balance Sheet Arrangements

We have not entered into 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 and would be considered material to investors.

We do not believe that inflation has had in the past

or will have in the future any significant negative impact on our operations.

Quantitative and Qualitative Disclosures

About Market Risk.

As a “smaller reporting company” as defined

by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

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-Q

Item 1. Financial Statements