The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this Report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward- looking statements. Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this Report. Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.

We were incorporated in the state of Nevada on February 15, 2017. Our original business was manufacturing and selling steel drywall studs in the Kyrgyz market to wholesale customers. During the fiscal year ended December 31, 2019, we sold machine for studs manufacturing as it was outdated. Production thereafter was temporarily on hold until new equipment was purchased.

Following the Change of Control, we changed our business plan to engage in smart-home business in the People's Republic of China.

We plan to conduct smart-home business in the People's Republic of China, with a focus on developing, promoting and executing high quality integrated smart-home systems and solutions. We are presently evaluating the optimal corporate and legal structures in China necessary to establish our business or to acquire and/or invest in existing smart home businesses. We aim to start the smart-home business in 2020 and the funds to financing the start-up of the new business or acquisition of and/or investment in existing smart home businesses will primarily come from our major shareholder. However, our plan to operate in the smart home industry may be adversely impacted by the outbreak of coronavirus, which was first reported to have surfaced in Wuhan, China, in December 2019, and is now continuing to spread throughout other parts of the world. Although China has made great efforts to contain the spread of the virus and had brought the outbreak under control, the economy, financial market and businesses in China have been suffering from the pandemic. We may change our plan to do business in other industries in China should we determine that the smart home industry is materially and adversely affected by the outbreak of coronavirus and it is no longer in the best interest of our stockholders and the Company to proceed with our original plan.





  5






Results of Operations

Our net loss for the fiscal year ended December 31, 2019 was $17,367 compared to a net loss of $29,403 for the year ended December 31, 2018. During the year ended December 31, 2019, we did not generate any revenue because we had no sales. During the year ended December 31, 2018, we generated $8,694 in revenue from the sale of steel studs.

During the fiscal year ended December 31, 2019, we incurred expenses of $17,367 compared to $33,997 incurred during the year ended December 31, 2018. During the fiscal year ended December 31, 2019, we sold our equipment for manufacturing steel drywall studs and production was put on hold until new manufacturing equipment was to be purchased.

The above results are based on our previous operations before the Change of Control.

Liquidity and Capital Resources

As of December 31, 2019, our total assets were $7,380 compared to $24,284 in total assets at December 31, 2018. As of December 31, 2019, our total liabilities were $26,524 compared to $26,061 at December 31, 2018. Stockholders' deficit was $19,144 as of December 31, 2019 compared to $1,777 as of December 31, 2018.

Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities. For the year ended December 31, 2019, net cash flows used in operating activities was $20,681. Net cash flows used in operating activities was $25,309 for the year ended December 31, 2018.

Cash Flows from Investing Activities

Cash flow provided from investing activities for the year ended December 31, 2019 was $15,000 received from the sale of the equipment.

We used $23,150 in investing activities for the year ended December 31, 2018 to purchase computer and equipment.

Cash Flows from Financing Activities

We have financed our operations primarily from either advances from stockholders or financing through the sales of securities. For the year ended December 31, 2019, we received loan proceeds of $10,884 from our then sole officer and director and repaid $8,223. For the year ended December 31, 2018, we received gross proceeds of $49,989 from issuance of common stock and loan from our sole officer and director.

Plan of Operation and Funding

Our future capital requirements will depend on numerous factors including, but not limited to, the establishment and development of our new smart-home business opportunities in China. We expect to depend on financing from our majority shareholder to meet our current minimal operating expenses. As we are a start-up company, our operating expenses are limited and discretional based on the availability of its funds. Management believes that the financing from our majority shareholder will support our planned operations over the next 12 months.

We do not have lines of credit or other bank financing arrangements. In connection with our new business plan after the Change of Control, management anticipates operating expenses and capital expenditures relating to: (i) developmental expenses associated with a start-up business and (ii) marketing expenses will be funded primarily by debt or equity financings from our majority shareholder. However, there is no assurance that such funds will be available or available on acceptable terms. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.





  6






Material Commitments

Since February 15, 2017 (inception) through December 31, 2019, our former sole officer and director loaned us $26,524 to pay for incorporation costs and operating expenses. As of December 31, 2019, the amount outstanding was $26,524. The loan was non-interest bearing, due upon demand and unsecured. In connection with the Change of Control, the loan in the aggregate principal of $26,524 was forgiven by the former officer and director in full.

Off-Balance Sheet Arrangements

As of the date of this Annual Report, we do not have 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 that are material to investors.

Off-Balance Sheet Arrangements

As of the date of this Annual Report, we do not have 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 that are material to investors.





Going Concern

The independent auditor's report accompanying our December 31, 2019 and December 31, 2018 financial statements contain an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

© Edgar Online, source Glimpses