NOTES
TO (UNAUDITED) FINANCIAL STATEMENTS
NOTE
1 – ORGANIZATION AND DESCRIPTION OF BUSINESS
The
Company is a US holding company incorporated in Nevada on March 31, 2016, which operates through the Company’s wholly-owned subsidiary
Shengshi International Holdings Co., Ltd. (“Shengshi International”), a Cayman Islands corporation incorporated on October
19, 2018.
The
following is the organizational structure of Shengshi International Holdings Co., Ltd. along with ownership detail and its subsidiaries:
Shengshi
International Holdings Co., Ltd. (the “Shengshi International”), was incorporated in the Cayman Islands on October 19, 2018.
It is owned by four individuals and four entities. Mr. Jin Xukai, owning 10% share, is the executive director. Mr. Liu Yanyu, owning
4.2% share, Mr. Li Zhonglin, owning 4.5% share, Mr. Liu Bin, owning 4.33% share are the three directors. The following entities own the
remaining shares of Shengshi International: Shengshi Qianyuan Co., Ltd., founded on Oct. 12, 2018, whose director is Ms. Jiang Yanru,
the ownership percentage is 3.7%; Shengshi Xinguang Co., Ltd, founded on Oct. 10, 2018, whose director is Mr. Zhang Baozhu, the ownership
percentage is s 15%; Shengshi Jinhong Co., Ltd, founded on Oct. 2, 2018, whose director is Ms. Zhang Lina, the ownership percentage is
38.27%; and Shengshi Huading Co., Ltd., founded on Oct. 9, 2018, whose director is Li Ying, the ownership percentage is 20%.
Shengshi
Shengshun (Hong Kong) Co., Ltd. (“Shengshi Hong Kong”), was established in Hong Kong Special Administrative Region of the
People’s Republic of China (the “PRC”) on September 18, 2018. It is 100% owned by Shengshi International.
Shengshi
Yinghe (Shenzhen) Technology Co. Ltd. (“Shengshi Yinghe”) was established as a wholly foreign-owned enterprise on November
08, 2018, in Shenzhen City, Guangdong province, under the laws of the PRC. It is 100% owned by Shengshi Hong Kong.
Shenzhen
Shengshi Elevator Co., Ltd. (“Shenzhen Shengshi”), was incorporated on April 2, 2014, registered in Shenzhen City, Guangdong
province, under the laws of the PRC. The Company was established by Mr. Jin Xukai, the founder, president, chairman, chief designer,
and the controlling shareholder. It is 100% owned by Shengshi Yinghe.
Shenzhen
Shengshi focuses on elevator technology research and development, sales, maintenance, and installation. The company’s flagship
product is an elevator that adopts the technical principle of the world’s first “An embedded open nut track lifting system”
and represents a brand-new product direction and industrial innovation.
Sichuan
Shengshi Elevator Technology Co., Ltd. (“Sichuan Shengshi”), was incorporated on July 13, 2018, registered in Chengdu city,
Sichuan province, under the laws of the PRC, a wholly-owned subsidiary of Shenzhen Shengshi. Sichuan Shengshi has the same business scope
and offers similar products and services as the parent company.
The
Company has been dormant since May 14, 2020.
The
Company’s year-end is December 31.
NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The
accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”)
“FASB Accounting Standard Codification™” (the “Codification”) which is the source of authoritative
accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in
conformity with generally accepted accounting principles (“GAAP”) in the United States.
Management’s
Representation of Interim Financial Statements
The
accompanying unaudited financial statements have been prepared by the Company without audit pursuant to the rules and regulations of
the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and
annual financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance
with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by
such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading.
These financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of
financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily
indicative of results for a full year. These financial statements should be read in conjunction with the audited financial statements
and notes thereto on December 31, 2019, as presented in the Company’s Annual Report on Form 10-K.
Use
of Estimates
The
preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, 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. Management makes these estimates using the best information
available at the time the estimates are made; however actual results could differ from those estimates. Significant items subject to
such estimates and assumptions include valuation of inventory, and recoverability of carrying amount, and the estimated useful lives
of long-lived assets.
Income
taxes
The
Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes”. Under FASB ASC 740, 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 bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered
or settled. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in
the period that includes the enactment date. FASB ASC 740-10-05, “Accounting for Uncertainty in Income Taxes” prescribes
a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or
expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained
upon examination by taxing authorities.
The
amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate
settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or
circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability
under audit.
Net
Loss per Share
Net
loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined
by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”)
calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year.
Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares
and dilutive common share equivalents outstanding.
NOTE
3 - GOING CONCERN
As
of September 30, 2020, the Company had $1,539,946 in cash and cash equivalents. The Company had a net loss of $16,315 for the nine months
ended September 30, 2020, and has negative working capital of $5,337,989 and an accumulated deficit of $5,521,910 on September 30, 2020.
The Company’s principal sources of liquidity have been cash provided by operating activities, as well as financial support from
related parties. The Company’s operating results for future periods are subject to numerous uncertainties and it is uncertain if
the Company will be able to maintain profitability and continue growth for the foreseeable future. If management is not able to increase
revenue and/or manage operating expenses in line with revenue forecasts, the Company may not be able to maintain profitability. These
factors raise substantial doubt about the Company’s ability to continue as a going concern.
The
Company will focus on improving operational efficiency and cost reduction, developing core cash-generating business, and enhancing marketing
function. Actions include developing more customers, as well as creating synergy using the Company’s resources.
The
Company believes that available cash and cash equivalents, the cash provided by its receiver, should enable the Company to meet presently
anticipated cash needs for at least the next 12 months after the date that the financial statements are issued and the Company has prepared
the consolidated financial statements on a going concern basis. If the Company encounters unforeseen circumstances that place constraints
on its capital resources, management will be required to take various measures to conserve liquidity, which could include, but not necessarily
be limited to, obtaining financial support from related parties, and controlling overhead expenses. Management cannot provide any assurance
that the Company’s efforts will be successful. The consolidated 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 outcome of these uncertainties.
NOTE
4 – EQUITY
Common
Stock
The
Company has authorized 1,000,000,000 shares of $0.001 par value, common stock. As of September 30, 2020, there were 603,970,000 shares
of Common Stock issued and outstanding.
NOTE
5 – COMMITMENTS AND CONTINGENCIES
The
Company did not have any contractual commitments as of September 30, 2020.
NOTE
6 – SUBSEQUENT EVENTS
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.