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Item 1. Financial Statements

2025-07-31 compared with 2024-11-12 · 500 added, 433 removed, 69 unchanged (93% of the section changed)

Financial Statements

HONG YUAN HOLDING GROUP

YUAN HOLDING GROUP

Balance Sheets

September 30,

ASSETS, NONCURRENT

Current Assets

Cash and cash equivalents

Accounts receivable, net

Prepaid expense and other receivable

Total Current Assets

Property and equipment, net of accumulated

Right of use assets

LIABILITIES AND STOCKHOLDERS’ DEFICIT

1 unchanged sentence

Accounts payable and accrued liabilities

Due to related parties

Operating lease liabilities - Current

Due to related party

Total Current Liabilities

Operating lease liabilities - Noncurrent

TOTAL LIABILITIES

Commitments and contingencies

Stockholders’ Deficit

Preferred Stock:

Series A-1 Preferred stock:

5,000,000 shares authorized;

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

September 30, 2024 and December 31, 2023

$ 0.001 par value 5,000,000 issued and outstanding at March 31, 2025 and December 31, 2024

Common stock:

2,000,000,000 shares authorized;

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

December 31, 2023

$ 0.001 par value 74,640,766 shares issued and outstanding at March 31, 2025 and December 31, 2024

Additional Paid-in Capital

Accumulated deficit during development stage

Statutory surplus reserve

Accumulated other comprehensive income

Accumulated deficit

( 97,746,780 )

( 97,784,280 )

Total Hong Yuan Holding Group Stockholders’ Deficit

Non-controlling interests

Total stockholders’ deficit

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

The accompanying notes are an integral part of these

unaudited financial statements.

HONG YUAN HOLDING GROUP

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

YUAN HOLDING GROUP

Statements of Operations

Three Months Ended

Nine Months Ended

September 30,

Cost of revenue

Operating Expenses

Selling and marketing

General and administrative

1 unchanged sentence

Total Operating Expenses

Operating loss

Net Income from operations

Other Income and Expense

Interest income

Other Expense

Total other income (expense)

Net Income before taxes

Provision for income taxes

Basic and dilutive net loss per common share

Net income attributable to non-controlling interests

Net loss attributable to Hong Yuan Holding Group

Other comprehensive income (loss)

Comprehensive Income

Basic and dilutive net income (loss) per common share

Weighted average number of common shares outstanding - basic and diluted

The accompanying notes are an integral part of these

unaudited financial statements.

HONG YUAN HOLDING GROUP

STATEMENT OF STOCKHOLDERS’ EQUITY

Common Stock:

Preferred Stock:

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

YUAN HOLDING GROUP

Statements of Stockholders’ Deficit

Preferred Stock

Additional Paid-in Capital

Comprehensive

Income (Loss)

Stockholders’

Balance - December 31, 2024

1 unchanged sentence

$ ( 168,802 )

Net loss for the period ended

Balance – June 30 , 2024

$ ( 97,442,615 )

$ ( 176,938 )

Net loss for the period ended

Balance – September 30 , 2024

Accumulated other comprehensive income

Balance - March 31, 2025

$ ( 97,746,780 )

$ ( 130,826 )

Common Stock:

Preferred Stock:

Additional Paid-in Capital

Balance - December 31, 2023

1 unchanged sentence

$ ( 137,483 )

Net loss for the period ended

Balance – June 30, 2023

$ ( 97,685,122 )

$ ( 137,483 )

$ ( 97,398,454 )

$ ( 132,777 )

Net loss for the period ended

Balance –September 30, 2023

Capital contribution received by VIE

Net income (loss)

Accumulated other comprehensive income

Balance - March 31, 2024

$ ( 97,731,676 )

2 unchanged sentences

$ ( 135,656 )

The accompanying notes are an integral part of these

unaudited financial statements.

HONG YUAN HOLDING GROUP

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

YUAN HOLDING GROUP

Statements of Cash Flows

Nine Months Ended

September 30,

Three Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments to reconcile net loss to net cash used in operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation expense

Lease expense

Changes in operating assets and liabilities:

Accounts receivable

Prepaid expense and other receivable

Accounts payable and accrued liabilities

Operating lease payment

Due to related party

Net Cash Used in Operating Activities

Net Cash Provided by (Used in) Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

Net change in cash and cash equivalents for the year

Cash and cash equivalents at beginning of the year

Cash and cash equivalents at end of the year

Proceeds from capital contribution

Net Cash Provided by Financing Activities

EFFECT OF EXCHANGE RATE CHANGE ON CASH & CASH EQUIVALENTS

Net change in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

SUPPLEMENTAL CASH FLOW INFORMATION:

1 unchanged sentence

Cash paid for interest

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

NON-CASH INVESTING AND FINANCING ACTIVITIES

Right of use asset and related liability modification

Acquisitions of subsidiary under common control

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

YUAN HOLDING GROUP

TO FINANCIAL STATEMENTS

1 – Organization

Yuan Holding Group (“We”, “the Company”, “Hong Yuan”) was 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.

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.

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.

October 1, 2024, The Company entered into an agreement to acquire from Xudong Li (the majority shareholder of the Company) 100 % equity

interest of Hongyuan International Holding Group Co., Ltd.

(“Hongyuan HK”) in exchange for HK $ 500,000 (approximately $ 64,103 )

or issuing the equivalent value of the Company’s common stocks, payable upon the completion of changing registered owner with the

Administration for Industrial and Commerce.

Hongyuan HK was established in Hong Kong on July 28, 2021.

on October 1, 2024, Hongyuan HK entered into a series of agreements including a Shareholders’ Voting Rights Entrustment Agreement,

an Exclusive Management Consulting and Service Agreement and a Share Pledge Agreement (collectively the “Agreements”) with

Fengcuiyuan Chang Technology Development Co., Ltd (“Fengcuiyuan”) and its registered owners (the “Transaction”).

Fengcuiyuan is a corporation formed under the laws of the PRC on September 3, 2021, in which Xudong Li (the majority shareholder of the

Company) controls 95 % of its equity interest.

Fengcuiyuan owns 98 % of Rongcheng (Sichuan) Supply Chain Management Co., Ltd (“Rongcheng”),

a corporation formed under the laws of the PRC located in Chengdu, Sichuan, China, incorporated on April 17, 2024.

On November 12, 2024,

Chongqing Xuchang Qingrong Trading Co., Ltd.

(“Xuchang”) located in Chongqing, Sichuan, China, was formed as a 55 % subsidiary

of Rongcheng.

to the Agreements, Hongyuan HK assumed financial and operating control of Fengcuiyuan.

As a result, Hongyuan HK has been determined to

have a controlling financial interest in Fengcuiyuan, requiring Hongyuan HK to consolidate the financial statements of Fengcuiyuan and

its subsidiaries, and ultimately consolidate with its parent company, Hong Yuan.

The Transaction was accounted for as a reorganization

of entities under common control.

As the combining entities have been under common control since September 2021, the consolidated financial

statements of the Company recognized the assets and liabilities received in the reorganization at their historical carrying amounts,

as reflected in the historical financial statements of each entity.

Company, through its subsidiary and the Agreements with Fengcuiyuan, focuses on supply chain management services, is mainly engaged in

the wholesale and internet sales of fast-moving consumer goods such as food, daily necessities, and electronic products, covering diversified

fields such as pre-packaged food, agricultural and by-products, and household goods.

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

of Presentation

summary of significant accounting policies of the Company (a development stage company) is presented to assist in understanding the Company’s

financial statements.

1 unchanged sentence

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

The Company has realized minimal revenues

The Company has realized insignificant revenues

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

2 unchanged sentences

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.

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.

of Consolidation

consolidated financial statements include the accounts of the Company, its subsidiary and variable interest entity (“VIE”)

for which the Company is the primary beneficiary.

All inter-company accounts and transactions have been eliminated in consolidation.

determining Fengcuiyuan is a VIE of Hongyuan HK, the Company considered the following indicators, among others:

HK enjoys exclusive and non-competitive rights to intellectual property rights and licensing arising from the performance of the

Agreements, and controls and administers the financial affairs and daily operation of Fengcuiyuan.

The registered owners of Fengcuiyuan

as a group have no right to make any decision about Fengcuiyuan’s activities without the consent of Hongyuan HK.

HK is assigned all voting rights of Fengcuiyuan and has the right to appoint all directors and senior management personnel of Fengcuiyuan.

The registered owners of Fengcuiyuan possess no substantive voting rights.

registered owners of Fengcuiyuan have pledged their shares in Fengcuiyuan as collateral to secure these Agreements.

Agreements are valid for 10 years.

Termination is prohibited by Fengcuiyuan and its registered owners, making termination within

the control of the Company.

HK is entitled to a management consulting and service fee based on the workload and commercial value of the technical services provided

at a price agreed upon by both parties, has the right to adjust the consulting service fee standards at any time based on the quantity

and content of the services provided to Fengcuiyuan.

Therefore, Hongyuan HK is the primary beneficiary of Fengcuiyuan.

preparation of financial statements in conformity with generally accepted accounting principles 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 and the reported amounts of revenue and expenses during the reporting period.

Actual results could differ

significantly from those estimates.

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

and Equipment

and equipment are stated at cost less accumulated depreciation.

Major repairs and betterments that significantly extend original useful

lives or improve productivity are capitalized and depreciated over the period benefited.

Maintenance and repairs are expensed as incurred.

When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the

respective accounts, and any gain or loss is included in operations.

Depreciation of property and equipment is provided using the straight-line

method for substantially all assets with estimated lives as follows:

of Estimated Useful Lives of Property and Equipment

Topic 842, “Leases” requires recognition of leases on the balance sheets as right-of-use (“ROU”) assets

and lease liabilities.

ROU assets represent the Company’s right to use underlying assets for the lease terms and lease liabilities

represent the Company’s obligation to make lease payments arising from the leases.

Operating lease ROU assets and operating lease

liabilities are recognized based on the present value and future minimum lease payments over the lease term at commencement date.

Company’s future minimum lease payments used to determine the Company’s lease liabilities mainly include minimum lease rent

Leases with a lease term of 12 months or less at inception are not recorded on the Company’s balance sheet and are expensed

on a straight-line basis over the lease term in the Company’s statement of operations.

As most of the Company’s leases do

not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement

date in determining the present value of lease payments.

The Company’s incremental borrowing rate is a hypothetical rate based

on its understanding of what its credit rating would be.

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 income and loss per share is the same as the basic income

and loss per share for the three months ended March 31, 2025 and 2024, 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 March 31, 2025 and December 31, 2024.

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.

3 - Going Concern

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

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 - Property and Equipment

and equipment consist of:

of Property and Equipment

Office Equipment

accumulated depreciation

Property and equipment, net

April 10, 2024, Fengcuiyuan entered into an operating lease agreement to rent an office.

The lease has an original term of 2 years expiring

April 24, 2026.

Effective January 25, 2025, the lease was modified to change lessee to Rongcheng and an unrelated third party with each

occupying 50% of the premises and responsible for 50% of the lease payment .

As a result of the lease modification, right-of-use asset

and related liability were reduced by $ 46,710 .

sheet information related to the Company’s leases is presented below:

of Balance Sheet Information Related to Company’s Leases

Operating Leases

Operating lease right-of-use assets

Operating lease liabilities - current

Operating lease liability – non-current

Total operating lease liabilities

following provides details of the Company’s lease expenses:

of Company’s Lease Expenses

Three Months Ended March 31,

Operating lease expense

information related to leases is presented below:

of Other Information Related to Leases

Three Months Ended

March 31, 2025

Cash Paid For Amounts Included In Measurement of Liabilities:

Operating cash flows from operating leases

Weighted Average Remaining Lease Term:

Operating leases

Weighted Average Discount Rate:

Operating leases

of lease liabilities were as follows:

of Maturities of Lease Liabilities

For the 12 months ending December 31:

2025 (9 months remaining)

Total lease payments

imputed interest

Total lease liabilities

current portion

Lease liabilities – non-current portion

6 – Related party transaction

the three months ended March 31, 2025, the Company’s current majority shareholder advanced $ 2,461 to the Company as working capital.

As of March 31, 2025 and December 31, 2024, the Company owed its current majority shareholder of $ 254,349 and $ 251,887 , respectively,

including $ 64,103 for acquisition of Hongyuan HK.

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

7 – Common stock

March 31, 2025, the Company is authorized to issue 2,000,000,000 shares of $ 0.001 par value common stock.

of March 31, 2025, a total of 74,640,766 shares of common stock with par value $ 0.001 remain outstanding.

8 – Preferred stock

of March 31, 2025, a total of 5,000,000 shares of Series A-1 preferred stock with par value $ 0.001 remain outstanding.

9 – INCOME TAXES

Company is subject to taxation in the United States (USA) and its subsidiaries were incorporated in China and are governed by the Income

Tax Law of China.

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 March 31, 2025, 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 three months ended March 31, 2025 and 2024, the Company had no unrecognized tax benefits

and related interest and penalties expenses.

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

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.

10 – Subsequent Event

June 2025, the Company changed its business model.

Rongcheng relinquished its 55 % ownership in Xuchang, but will still fund the opening

of stores operated by Xuchang.

The investment funds for stores will be recovered as loans in the future from the stores’ profits.

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 March 18, 2005, it

changed its name 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.

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.

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.

October 1, 2024, The Company entered into an agreement to acquire from Xudong Li (the majority shareholder of the Company) 100% equity

interest of Hongyuan International Holding Group Co., Ltd.

(“Hongyuan HK”) in exchange for HK $500,000 (approximately $64,103)

or issuing the equivalent value of the Company’s common stocks, payable upon the completion of changing registered owner with the

Administration for Industrial and Commerce.

Hongyuan HK was established in Hong Kong on July 28, 2021.

on October 1, 2024, Hongyuan HK entered into a series of agreements including a Shareholders’ Voting Rights Entrustment Agreement,

an Exclusive Management Consulting and Service Agreement and a Share Pledge Agreement (collectively the “Agreements”) with

Fengcuiyuan Chang Technology Development Co., Ltd (“Fengcuiyuan”) and its registered owners (the “Transaction”).

Fengcuiyuan is a corporation formed under the laws of the PRC on September 3, 2021, in which Xudong Li (the majority shareholder of the

Company) controls 95% of its equity interest.

Fengcuiyuan owns 98% of Rongcheng (Sichuan) Supply Chain Management Co., Ltd (“Rongcheng”),

a corporation formed under the laws of the PRC located in Chengdu, Sichuan, China, incorporated on April 17, 2024.

On November 12, 2024,

Chongqing Xuchang Qingrong Trading Co., Ltd.

(“Xuchang”) located in Chongqing, Sichuan, China, was formed as a 55% subsidiary

of Rongcheng.

to the Agreements, Hongyuan HK assumed financial and operating control of Fengcuiyuan.

As a result, Hongyuan HK has been determined to

have a controlling financial interest in Fengcuiyuan, requiring Hongyuan HK to consolidate the financial statements of Fengcuiyuan and

its subsidiaries, and ultimately consolidate with its parent company, Hong Yuan.

The Transaction was accounted for as a reorganization

of entities under common control.

As the combining entities have been under common control since September 2021, the consolidated financial

statements of the Company recognized the assets and liabilities received in the reorganization at their historical carrying amounts,

as reflected in the historical financial statements of each entity.

Company, through its subsidiary and the Agreements with Fengcuiyuan, focuses on supply chain management services, is mainly engaged in

the wholesale and internet sales of fast-moving consumer goods such as food, daily necessities, and electronic products, covering diversified

fields such as pre-packaged food, agricultural and by-products, and household goods.

have not yet generated sustained profits from our prior operations.

Our independent accountants have expressed a “going concern”

As of March 31, 2025, we had an accumulated deficit of $97,746,780 and a net working capital deficit of $168,763.

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.

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.

(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.

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.

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 allowance for doubtful accounts as of March 31, 2025 and December 31, 2024, respectively.

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 Months Ended March 31, 2025 compared to the Three Months Ended March 31, 2024

was $241,065 in the three months ended March 31, 2025 compared to Nil in the same period last year.

The increase in revenue was

mainly due to the consolidation of the Chinese VIEs under common control which started generating revenue in the second quarter of

of goods sold was $124,347 in the three months ended March 31, 2025 compared to Nil in the same period last year due to no revenue

in the same period last year as explained above.

expenses were $76,580 in the three months ended March 31, 2025 compared to $46,556 in the same period last year, an increase of $30,024

The increase was mainly due to the increase in general and administrative expenses and professional fees.

The increase in general

and administrative expenses in the first quarter of 2025 was mainly due to the increase in personnel expense, office expense and travel

expense,, partly offset by the decrease in rent expense.

the three months ended March 31, 2025, the Company had a net income of $37,357, compared to a net loss of $46,554 during the same period

last year, an increase of $83,911.

The increase in net income in the first quarter of 2025 was primarily due to the increase in gross

profit as a result of the Chinese VIEs starting to generate revenue, partly offset by the increase in operating expenses.

and Capital Resources

of March 31, 2025 and December 31, 2024, we had a cash balance of $33,300 and $46,291 respectively.

During the three months ended March

31, 2025 and 2024, the company’s operations are primarily funded by the Company’s CEO and major shareholder and the minority

owners of the Chinese VIEs.

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.

Upon 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.

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.

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.

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.

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.

These factors

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

the three months ended March 31, 2025, net cash used in operating activities was $13,234.

This was primarily due to the net income of

$37,357, adjusted by non-cash related expenses including depreciation of $335, and then decreased by unfavorable changes in working capital

The unfavorable changes in working capital mainly resulted from an increase in accounts receivable of $45,850, an increase

in inventory of $4,681, and an increase in prepaid expense and other receivable of $37,912, offset by an increase in accounts payable

and accrued liabilities of $35,056, and an increase in due to related party of $2,461.

the three months ended March 31, 2024, net cash used in operating activities was $39,010.

This was primarily due to the net loss of $46,554,

adjusted by non-cash related expenses including depreciation of $339, and then increased by favorable changes in working capital of $7,205.

The favorable changes in working capital mainly resulted from an increase in due to related party of $16,125, and an increase in accounts

payable and accrued liabilities of $1,491, offset by an increase in prepaid expense and other receivable of $10,412.

neither generated nor used cash in investing activities during the three months ended March 31, 2025 and 2024.

neither generated nor used cash in financing activities during the three months ended March 31, 2025.

For the three months ended March

31, 2024, net cash provided by financing activities were proceeds from capital contribution received by Chinese VIEs of $48,689.

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

As shown in the accompanying

financial statements, we had a net income of $37,357 and incurred a net losses of $46,554 for the three months ended March 31, 2025 and

2024, respectively, and had a working capital deficit of $168,763 as of March 31, 2025, in addition to a stockholders’ deficit

of $130,826 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

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.

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.

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.

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