CONDENSED NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
NOTE 1 – NATURE OF OPERATIONS AND
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company
China
King Spirit Group Ltd. (FKA Jasmin Corp.) (“the Company”, “we”, “us” or “our”)
was incorporated in the State of Nevada on October 7, 2014. Jasmin was an e-commerce early stage company that intended to establish
itself as a designing industry of home and space decorations made from cork materials
in
France, Europe. The new management of the Company is abandoning its existing business and is in the process of evaluating other
business opportunities.
On September
8, 2017 Jean-Paul Chavanz, the previous sole officer and director and majority shareholder of Jasmin Corp., entered into a stock
purchase agreement for the sale of an aggregate of 10,000,000 shares of Common Stock of the Company, representing 79% of the issued
and outstanding shares of common stock of the Company. Pursuant to this agreement, the Company decided to discontinue its business
plan of producing and distributing Cork products and explore new opportunities. As part of the transition all the Company’s
assets were retained by the former majority shareholder and the liabilities were assumed by Mr. Chavanz as well. As a result of
this strategic shift all historical results of the Company have been classified as discontinued operations in accordance with ASC
105-20.
On September 11, 2017
Xu Dan was appointed as Chief Executive Officer, Chief Financial Officer and sole Director and Mr. Richard Rappaport was appointed
Secretary. In addition, Mr. Jean-Paul Chavanaz submitted his resignations from all executive officer positions with the Company,
including Chief Executive Officer and President effective September 11, 2017, and submitted his resignation as a member of the
Board.
On September
27, 2018, Xu Dan submitted her resignation from all executive officer positions with the Registrant, including Chief Executive
Officer, Chief Financial Officer, and President, effective immediately. In addition, Xu Dan submitted her resignation as
a member of the Board, which resignation was effective immediately. In addition, on September 27, 2018 Richard Rappaport
submitted his resignation as Secretary of the Registrant, which resignation was effective immediately. On September _27, 2018,
Zhanfang Wang was appointed as Chief Executive Officer, Secretary, Chief Financial Officer, and sole Director and Chairman, each
effective immediately.
On
September 27, 2018 Jasmin Corp. (the “Registrant”) filed a Certificate of Amendment to Articles of Incorporation effecting
(i) a 5-for-1 forward stock split of the Registrant’s common stock, (ii) an
increase in the number of authorized
shares of Common Stock from 75,000,000 to 200,000,000
and (iii) changing
its name from Jasmin Corp. to
China King Spirit Group Ltd.,
which
Certificate of Amendment was approved by the Nevada Secretary of State on December 20, 2018. The Registrant notified the Financial
Industry Regulatory Authority (“
FINRA
”) pursuant to a corporate action request to approve the change of its
listing name to
China King Spirit Group Ltd.
On December
20, 2018, FINRA notified the Registrant that it had approved the aforementioned forward stock split, increase in authorized number
of shares and name change, announced on their daily list on December 21, 2018 that the market effective date will be December 24,
2018.
Basis of Presentation – Unaudited
Financial Statements
The accompanying unaudited financial statements
have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions
to Form 10-Q. They do not include all information and footnotes required by United States generally accepted accounting principles
for complete financial statements. However, except as disclosed herein, there has been no material changes in the information disclosed
in the notes to the financial statements for the fiscal year ended June 30, 2018 included in the Company’s 10-K filed with
the Securities and Exchange Commission. The unaudited financial statements should be read in conjunction with those financial statements
included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting
solely of normal recurring adjustments, have been made. Operating results for the six months ended December 31, 2018 are not necessarily
indicative of the results that may be expected for the year ending June 30, 2019.
CHINA KING SPIRIT GROUP LTD.
(FKA Jasmin Corp.)
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
NOTE 1 – NATURE OF OPERATIONS AND
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
Use of Estimates and Assumptions
Preparation of the financial statements in
conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain
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 revenues and expenses during the period. Accordingly, actual results could differ from those estimates.
Cash and Cash Equivalents
For purposes of the statement of cash flows,
the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.
Earnings (Loss) per Common Share
The basic earnings (loss) per common share
is calculated by dividing the Company’s net income (loss) available to common shareholders by the weighted average number
of common shares during the period. The diluted earnings (loss) per share is calculated by dividing the Company’s net income
(loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted
weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt
or equity securities unless they are anti-dilutive. Diluted earnings (loss) per share are the same as basic earnings (loss) per
share due to the lack of dilutive items in the Company. As of December 31, 2018, and 2017, there were no common stock equivalents
outstanding.
Income Taxes
The Company follows the liability method of
accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax balances and tax loss carry-forwards. Deferred tax assets and liabilities are measured using enacted or substantially enacted
tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled.
The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes
the date of enactment or substantive enactment.
Recent Accounting Pronouncements
The Company does not expect the adoption of
any recent accounting pronouncements to have a material impact on its financial statements.
NOTE 2 – GOING CONCERN
To date the Company has generated limited revenues
from its business operations and has an accumulated deficit of $57,525 since inception. As at December 31, 2018, the Company has
a working capital deficit of $45,239. The Company requires additional funding to meet its ongoing obligations and to fund anticipated
operating losses. The ability of the Company to continue as a going concern is dependent on raising capital to fund its initial
business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s
ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances
from related parties as may be required. These financial statements do not include any adjustments relating to the recoverability
and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty.
CHINA KING SPIRIT GROUP LTD.
(FKA Jasmin Corp.)
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
NOTE 3 – DISCOUNTINUED OPERATIONS
On September
8, 2017, Jean-Paul Chavanz, the previous sole officer and director and majority shareholder of Jasmin Corp., entered into a stock
purchase agreement for the sale of an aggregate of 10,000,000 shares of Common Stock of the Company, representing 79% of the issued
and outstanding shares of common stock of the Company. Pursuant to this agreement, the Company decided to discontinue its business
plan of producing and distributing Cork products and explore new opportunities. As part of the transition all the Company’s
assets were retained by the former majority shareholder and the liabilities were assumed by Mr. Chavanz as well. As a result of
this strategic shift all historical results of the Company have been classified as discontinued operations in accordance with ASC
205-20. The total loss on transition of assets and liabilities during the three and six months ended December 31, 2017 was $16,532
of which $5,906 was recorded as general and administrative expenses and $10,626 was recorded as a reduction to additional paid
in capital.
Results
of discontinued operations as of December 31, 2018 and 2017 are as follows:
|
|
Three months ended December 31, 2018
|
|
Three months ended
December 31, 2017
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|
Six months
ended
December 31, 2018
|
|
Six months
ended
December 31, 2017
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Cost of Goods Sold
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Gross Profit
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and Administrative Expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,906
|
|
TOTAL OPERATING EXPENSES
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS FROM OPERATIONS
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,906
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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PROVISION FOR INCOME TAXES
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
NET LOSS FROM DISCONTINUED OPERATIONS
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(5,906
|
)
|
CHINA KING SPIRIT GROUP LTD.
(FKA Jasmin Corp.)
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
Cash Flow from discontinued operations as
of December 31, 2018 and 2017 is as follows;
|
|
Six months
ended
December 31, 2018
|
|
Six months
ended
December 31,
2017
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
Net loss for the period
|
$
|
--
|
$
|
(5,906)
|
Adjustments to reconcile net loss to net cash (used in) operating activities:
|
|
|
|
|
Loss on discontinued operations
|
|
-
|
|
5,906
|
Decrease in prepaid expenses
|
|
-
|
|
-
|
Increase in inventory
|
|
-
|
|
-
|
Accumulated depreciation
|
|
-
|
|
-
|
NET CASH (USED IN) PROVIDED BY DISCONTINUED OPERATING ACTIVITIES
|
|
-
|
|
-
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
Equipment
|
|
-
|
|
-
|
NET CASH (USED IN) PROVIDED BY DISCONTINUED INVESTING ACTIVITIES
|
|
-
|
|
-
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Loan – related party
|
|
-
|
|
(1,951)
|
NET CASH (USED IN) PROVIDED BY DISCONTINUED FINANCING ACTIVITIES
|
|
-
|
|
(1,951)
|
|
|
|
|
|
NET DECREASE IN CASH
|
|
-
|
|
(1,951)
|
|
|
|
|
|
Cash, beginning of period
|
|
-
|
|
1,951
|
|
|
|
|
|
Cash, end of period
|
$
|
-
|
$
|
-
|
CHINA KING SPIRIT GROUP LTD.
(FKA Jasmine Corp.)
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
NOTE 4 –
EQUITY
On September
27, 2018 the Board of Directors and shareholders of Jasmin Corp. (the "Company”) approved an amendment to the Company’s
Articles of Incorporation increasing the number of authorized shares of Common Stock from 75,000,000 to 200,000,000 and effecting
a five-for-one forward split of the Company's outstanding shares of common stock.
The Company has 200,000,000 common shares authorized
with a par value of $0.001 per share. No preferred shares have been authorized or issued.
There were 12,644,500
(pre-split 2,528,900) shares of common stock issued and outstanding as of December 31, 2018 and June 30, 2018 respectively.
All references in these financial statements
to number of common shares, price per share and weighted average number of shares outstanding prior to the 5:1 forward split have
been adjusted to reflect the stock split on a retroactive basis unless otherwise noted.
NOTE 5 –
RELATED PARTIES
During the period the Company received a total
of $18,000 in shareholder loans from WP Acquisition (currently known as Century Acquisition LLC), a Company controlled by a shareholder.
Total amount owing in shareholder loans as of December 31, 2018 is $37,000. The amounts due to related parties are unsecured and
non- interest-bearing with no set terms of repayment.
NOTE 6 –
SUBSEQUENT EVENTS
Management has reviewed events between December
31, 2018 and the date that the financials were issued there were no significant events identified for disclosure.