Mon, Aug 26, 7:58 PM (141 days ago)
Zhanling International Limited's transition report for the period ending May 31, 2024, shows no revenue generation since inception, resulting in a net loss of $10,463 for the five months, and an accumulated deficit of $390,210. Operating expenses increased by 18% to $10,463, primarily due to professional fees. The company has a working capital deficiency of $8,374 and no cash on hand, indicating significant liquidity challenges and raising doubts about its ability to continue as a going concern. The report highlights a change in fiscal year-end from December 31 to May 31 and the impact of a reverse stock split, reducing outstanding shares to 73,200. The management has faced turnover, with a new CEO, YongQing Liu, appointed in March 2024. The company is seeking to raise capital through equity financing but lacks a definitive plan for business operations or target acquisitions. Key risks include regulatory scrutiny in China and potential restrictions on foreign investments, which could adversely affect operations. The absence of an audit committee and material weaknesses in internal controls were also noted, indicating governance challenges.