HK Apollo Motors 10-Q 2017 Q2 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

  X.QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2016

OR

 .TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition report from ________ to ________

Commission File Number 000-54179

Apollo Acquisition Corporation

(Exact name of registrant as specified in its charter)

Cayman Islands	N/A
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

800 E. Colorado Blvd., Suite 888

Pasadena, CA 91101

(Address of principal executive offices) (Zip Code)

(626) 683-9120

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X.No.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period than the registrant was required to submit and post such files). Yes X.No.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer,” and “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	.	Accelerated filer	.
Non-accelerated filer	. (Do not check if a smaller reporting company)	Smaller reporting company	X.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes X.No.

As of February 14, 2017 the issuer has 998,275ordinary shares, par value $.000128, issued and outstanding.

APOLLO ACQUISITION CORPORATION

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2016

TABLE OF CONTENTS

		PAGE
	PART I - FINANCIAL INFORMATION	3
Item 1.	Condensed Financial Statements (Unaudited)	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	14
Item 4.	Controls and Procedures	14
	PART II - OTHER INFORMATION	14
Item 1.	Legal Proceedings	14
Item 1A.	Risk Factors	14
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	14
Item 3.	Defaults Upon Senior Securities	14
Item 4.	Mine Safety Disclosures	14
Item 5.	Other Information	14
Item 6.	Exhibits	15
	SIGNATURES	16

2

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in our Form 10-K for the fiscal year ended June 30, 2016 filed with the SEC on September 27, 2016, as amended on December 1, 2016. All numbers provided in the condensed consolidated unaudited financial statements are stated in United States Dollars. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year.

TABLE OF CONTENTS

	PAGE
Condensed Balance Sheets as of December 31, 2016 (unaudited) and June 30, 2016	4
Condensed Statements of Operations for the six month periods ended December 31, 2016 and 2015 (unaudited)	5
Condensed Statements of Cash Flows for the six month periods ended December 31, 2016 and 2015 (unaudited)	6
Notes to the Condensed Financial Statements (unaudited)	7-11

3

Apollo Acquisition Corporation

Condensed Balance Sheets

		December 31,		June 30,
		2016		2016
		(Unaudited)		(Audited)
ASSETS
CURRENT ASSETS
Cash	$	8,843	$	11,477
Total current assets		8,843		11,477
TOTAL ASSETS	$	8,843	$	11,477
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Account payable	$	7,785	$	-
Total current liabilities		7,785		-
NON-CURRENT LIABILITIES
Accounts payable - related party		213,261		213,261
Accrued expenses		7,070		7,070
Loan from ACI		45,000		35,000
Accrued interest		1,502		883
Total non-current liabilities		274,617		256,214
SHAREHOLDERS' DEFICIT
Preference shares, $0.000128 par value, 781,250 shares authorized, none issued and outstanding as of December 31, 2016 and June 30, 2016, respectively.		-		-
Ordinary shares, $0.000128 par value; 39,062,500 shares authorized; 998,275 shares and 998,275 shares issued and outstanding as of December 31, 2016 and June 30, 2016, respectively.		128		128
Additional paid in capital		8,796		8,796
Accumulated deficit		(274,698)		(253,661)
Total shareholders' deficit		(265,774)		(244,737)
Total liabilities and shareholders' deficit	$	8,843	$	11,477

The accompanying notes are an integral part of these condensed financial statements.

4

Apollo Acquisition Corporation

Condensed Statements of Operations

(Unaudited)

		Three months  ended December 31, 2016		Three months ended December 31, 2015		Six months ended December 31, 2016		Six months ended December 31, 2015
Revenues	$	-	$	-	$	-	$	-
Expenses
Formation, general and administrative expenses		7,785		14,303		20,419		22,259
Total operating expenses		(7,785)		(14,303)		(20,419)		(22,259)
Other income and expense
Interest expense		(338)		(183)		(618)		(295)
Operation Loss		(7,785)		(14,303)		(20,419)		(22,259)
Income tax expense		-		-		-		-
Net loss	$	(8,122)	$	(14,486)	$	(21,038)	$	(22,554)
Basic and diluted loss per share	$	(0.01)	$	(0.01)	$	(0.02)	$	(0.02)
Weighted average ordinary shares outstanding
- Basic and diluted		998,275		998,275		998,275		998,275

The accompanying notes are an integral part of these condensed financial statements.

5

Apollo Acquisition Corporation

Statements of Cash Flows

(Unaudited)

		Six months ended		Six months ended
		December 31, 2016		December 31, 2015
Operating Activities
Net loss	$	(21,038)	$	(22,554)
Changes in operating assets and liabilities
Accounts payable		7,785		-
Accounts payable – related party		-		15,251
Loan from related party - ACI		10,000		20,000
Accrued expenses		-		478
Accrued interest		619		295
Net cash used in operating activities		(2,634)		13,470
Financing Activities
Net cash provided by financing activities		-		-
Net increase (decrease) in cash		(2,634)		13,470
Cash at beginning of the period		11,477		6,000
Cash at end of the period	$	8,843	$	19,470
Supplemental disclosures of cash flow information:
Interest paid	$	-	$	-
Income taxes paid	$	-	$	-

The accompanying notes are an integral part of these condensed financial statements.

6

Apollo Acquisition Corporation

Notes to the Condensed Financial Statements

December 31, 2016

(Unaudited)

Note 1 - Organization, Business and Operations

On September 27, 2006, Apollo Acquisition Corporation (the “Company”) was formed in the Cayman Islands with the objective to acquire or merge with an operating business.

On November 15, 2012, the Company, Access America Fund, L.P. (the “Access America”), and Sword Dancer, LLC, a Nevada limited liability company (the “Sword Dancer”), entered into and closed a Stock Purchase Agreement, whereby the Sword Dancer agreed to purchase from the Access America, 781,250 ordinary shares of the Company’s capital stock, par value $0.000128 per share (“Ordinary Shares”), representing approximately 78.3% of the issued and outstanding Ordinary Shares of the Company, for an aggregate purchase price of $33,334. As a result of the transaction, Sword Dancer became our controlling stockholder.

On March 20, 2013, Sword Dancer sold to Hybrid Kinetic Automotive Holdings, LLC, a Delaware corporation (“Hybrid Kynetic”), in a private transaction exempt from registration under the Securities Act of 1933, as amended, 781,250 Ordinary Shares of the Company, representing all of the shares of the Company held by Sword Dancer, for an aggregate purchase price of $100,000. As a result, Hybrid Kinetic acquired approximately 78.3% of the Company’s common equity.

On February 13, 2015, Hybrid Kinetic sold 781,250 Ordinary Shares of the Company to American Compass, Inc., a California corporation (“ACI”), in a private transaction exempt from registration under the Securities Act of 1933, as amended, for an aggregate purchase price of $781,250. As a result of the transaction, ACI was the beneficial owner of approximately 78.3% of the Company’s issued and outstanding Ordinary Shares.

On February 17, 2015, the Company entered into a Securities Purchase Agreement (the “Agreement”) with Lianyungang HK New Energy Vehicle System Integration Corporation, a company organized under the laws of the People’s Republic of China (“Lianyungang China”), pursuant to which the Company issued 20,000,000 Ordinary Shares of the Company to Lianyungang China at a price of $1.00 per share, for aggregate proceeds equal to $20,000,000. As a result of the transaction, Lianyungang China beneficially owned approximately 95.24% of the Company’s issued and outstanding Ordinary Shares.

On March 18, 2015 (the “TL Effective Date”), the Company entered into a Technology License Agreement (the “TL Agreement”) with Ford Cheer International Limited, a company organized and existing under the laws of Hong Kong (“Ford Cheer”). Under the terms of the Agreement, Ford Cheer granted to the Company an irrevocable, exclusive right and license, including the right to sublicense, certain inventions, technology, know-how, patents and other intellectual property rights regarding the production of materials for use in lithium batteries (the “Licensed Technology”). As consideration for the Licensed Technology, the Company paid to Ford Cheer a one-time fee of $20,000,000. The TL Agreement commenced on the Effective Date and will continue for a term of twenty (20) years.

On March 23, 2015, the Company entered into a Securities Purchase Agreement (the “SPA”) with HK Battery Technology, Inc., a Delaware corporation (the “HK Battery”), to purchase 10,000,000 shares of HK Battery’s common stock, par value of $0.001 per share, at a per share price of $1.00. On June 26, 2015, the parties terminated the SPA.

Effective May 29, 2015, Chuantao Wang, Jianguo Xu, Tim Xia, Junwen Hou, Sijun He, Xiaodong Yan and Vincent Wang all resigned as Directors; Jianguo Xu resigned as Chief Executive Officer; and Chunhua Huang resigned as Chief Financial Officer.

Effective May 29, 2015, Jiafu Wei and Cliff Guan were appointed as Directors of the Company; Jiafu Wei was appointed Chief Executive Officer; Cliff Guan was appointed Chief Financial Officer; Chunhua Huang was appointed Chief Intelligence Officer; and Shuning Luo was appointed Secretary.

On June 22, 2015, the Company established a wholly-owned subsidiary, Apollo Technology Corporation, a Cayman Islands Exempted Company (“Apollo Subsidiary”) and transferred the $20,000,000, representing other intangible assets, to Apollo Subsidiary. On June 26, 2015, the Company entered into a Common Stock Exchange Agreement (the “Exchange Agreement”) with Lianyungang Corporation, a Cayman Islands Exempted Company (“Lianyungang”). Pursuant to the Exchange Agreement, the Company transferred, conveyed and assigned 100% of its equity interest in Apollo Subsidiary to Lianyungang (the “Apollo Subsidiary Transfer”). In exchange for the Apollo Subsidiary Transfer, Lianyungang transferred, conveyed and assigned its 95.26% equity interest in the Company to the Company for cancellation. Upon the closing of the transaction, ACI beneficially owned 78.3% of the Company’s issued and outstanding Ordinary Shares.

7

Effective as of September 2, 2015, Jiafu Wei resigned as Chief Executive Officer and Director the Company and Jianguo Xu was appointed as Chief Executive Officer and Director of the Company.

Effective as of October 31, 2015, Cliff Guan resigned as Chief Financial Officer of the Company and Jianguo Xu was appointed Chief Financial Officer of the Company.

On November 6, 2015, ACI entered into a Stock Purchase Agreement with Hybrid Kinetic, pursuant to which ACI sold to Hybrid Kynetic 781,250 Ordinary Shares of the Company at a purchase price of $1.00 per share (the “Stock Purchase”). The Stock Purchase was a private transaction exempt from registration under the Securities Act of 1933, as amended. Upon the closing of the Stock Purchase, the Hybrid Kynetic was the beneficial owner of approximately 78.3% of the Company’s issued and outstanding Ordinary Shares. Hybrid Kynetic has not advised the Company of any plans to appoint new directors to the Company’s Board of Directors or to make any changes to the Company’s management or operations.

As of December 31, 2016, the Company had not yet commenced operations. All activity from September 27, 2006, the Company’s date of inception, through December 31, 2016 relates to the Company’s formation. The Company selected June 30 as its fiscal year-end.

The Company, based on its proposed business activities, is a "blank check" company. The Securities and Exchange Commission defines such a company as “a development stage company” as it either has no specific business plan or purpose, or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person; and has issued "penny stock", as defined in Rule 3a51-1 under the Securities Exchange Act of 1934. Many states have enacted statutes, rules and regulations limiting the sale of securities of "blank check" companies in their respective jurisdictions. Management does not intend to undertake any efforts to cause a market to develop in its securities, either debt or equity, until the Company concludes a business combination with an operating entity.

The Company was organized to acquire a target company or business seeking the perceived advantages of being a publicly-held company and, to a lesser extent that desires to employ the Company’s funds in its business. The Company’s principal business objective for the next 12 months and beyond will be to achieve long-term growth potential through a business combination rather than short-term earnings. The Company will not restrict its potential candidate target companies to any specific business, industry or geographical location. The analysis of new business opportunities will be undertaken by or under the supervision of the officers and directors of the Company.

Note 2 - Summary of Significant Accounting Policies

Basis of Presentation

These condensed financial statements are presented on the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America. These condensed financial statements should be read in conjunction with the audited financial statements included in our Form 10-K for the year ended June 30, 2016, filed with the Securities and Exchange Commission on September 27, 2016.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Loss per Ordinary Share

Basic loss per ordinary share is based on the weighted effect of ordinary shares issued and outstanding, and is calculated by dividing net loss by the weighted average shares outstanding during the period. Diluted loss per ordinary share is calculated by dividing net loss by the weighted average number of ordinary shares used in the basic loss per share calculation plus the number of ordinary shares that would be issued assuming exercise or conversion of all potentially dilutive ordinary shares outstanding. The Company does not present diluted earnings per share for years in which it incurred net losses as the effect is antidilutive.

As of December 31, 2016 and June 30, 2016, there were no potentially dilutive ordinary shares outstanding.

8

Income Taxes

Apollo Acquisition Corporation was registered as an Exempted Company in the Cayman Islands, and therefore, is not subject to Cayman Islands income taxes for 20 years from the Date of Inception. While the Company has no intention of conducting any business activities in the United States, the Company would be subject to United States income taxes based on such activities that would occur in the United States.

The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. In assessing the realization of deferred tax assets, management considers whether it is likely that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the Company attaining future taxable income during periods in which those temporary differences become deductible.

Cash

Cash equivalents are comprised of certain highly liquid investments with maturities of three months or less when purchased. The Company's cash is held with local and national banking institutions and subjected to current FDIC insurance limits of $250,000 per banking institution. As of December 31, 2016 and June 30, 2016, the Company bank balances in these bank accounts did not exceed the insured amount. The Company has not experienced any losses related to this concentration of risk. There are no cash equivalents as of December 31, 2016.

Recently Issued Accounting Pronouncements

In June 2014, the FASB issued ASU No. 2014-10, “Development Stage Entities (Topic 915), Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. The amendments in this update remove the definition of a development stage entity from Topic 915, thereby removing the distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information on the statements of income, cash flows and shareholder’s equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The Company’s early adoption of the new standard is not expected to have a material effect on the Company’s financial position or results of operations.

Note 3 – Going Concern

Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations. Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.

The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its planned business. Management has plans to seek additional capital through a public or private offering of equity or debt securities, or by other means. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.

There can be no assurance that sufficient funds required during the next year or thereafter will be generated from operations or that funds will be available from external sources such as debt or equity financings or other potential sources. The lack of additional capital resulting from the inability to generate cash flow from the operations or to raise capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, havea material adverse effect on its business. Furthermore, there can be no assurance that any such required funds, if available, will be available on attractive terms or that they will not have a significant dilutive effect on the Company’s existing stockholders.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might necessary in the event the Company cannot continue in existence.

9

Note 4 – Related Party Transactions

During the six month periods ended December 31, 2016 and 2015, ACI paid $0 and $15,251, respectively, in legal fees on behalf of the Company.

As of December 31, 2016 and June 30, 2016, the company had a balance of $213,261 and $213,261, respectively, on Accounts Payable to ACI.

Note 5 – Shareholders’ Deficit

On February 17, 2015, the Company entered into a Securities Purchase Agreement (the “Agreement”) with Lianyungang China, pursuant to which the Company issued 20,000,000 Ordinary Shares of the Company to Lianyungang China at a price of $1.00 per share, for aggregate proceeds equal to $20,000,000. As a result of the transaction, Lianyungang China beneficially owned approximately 95.24% of the Company’s issued and outstanding Ordinary Shares. The shares were be issued to Lianyungang China, a non-US person (as that term is defined in Regulation S of the Securities Act of 1933, as amended (the “Act”)) in accordance with Rule 506 of Regulation D promulgated under the Act, in that the Company did not engage in any general advertisement or general solicitation in connection with the offering of the shares and the Company was available to answer any questions from Lianyungang China. Cash commissions were not paid in connection with the sale of the shares.

On June 22, 2015, the Company transferred $20,000,000, representing other intangible assets, to Apollo Subsidiary. On June 26, 2015, the Company entered into a Common Stock Exchange Agreement (the “Exchange Agreement”) with Lianyungang Corporation, a Cayman Islands Exempted Company (“Lianyungang”). Pursuant to the Exchange Agreement, the Company transferred, conveyed and assigned 100% of its equity interest in Apollo Subsidiary to Lianyungang (the “Apollo Subsidiary Transfer”). In exchange for the Apollo Subsidiary Transfer, Lianyungang transferred, conveyed and assigned its 95.26% equity interest in the Company to the Company for cancellation. Upon the closing of the transaction, ACI beneficially owned 78.3% of the Company’s issued and outstanding Ordinary Shares.

The Company is authorized to issue 39,062,500 Ordinary Shares, par value of $0.000128 per share. As of December 31, 2016, there are 998,275 shares issued and outstanding.

The Company is authorized to issue 781,250 Preference Shares, par value of $0.000128 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Board of Directors. As of December 31, 2016, there were no Preference Shares issued or outstanding.

Note 6 — Other Intangible Assets

On March 18, 2015 (the “TL Effective Date”), the Company entered into a Technology License Agreement (the “TL Agreement”) with Ford Cheer International Limited, a company organized and existing under the laws of Hong Kong (“Ford Cheer”). Under the terms of the Agreement, Ford Cheer granted to the Company an irrevocable, exclusive right and license, including the right to sublicense, certain inventions, technology, know-how, patents and other intellectual property rights regarding the production of materials for use in lithium batteries (the “Licensed Technology”). As consideration for the Licensed Technology, the Company paid to Ford Cheer a one-time fee of $20,000,000. The TL Agreement commenced on the Effective Date and will continue for a term of twenty (20) years.

On June 22, 2015, pursuant to the Exchange Agreement with Lianyungang, the Company transferred, conveyed and assigned 100% of its equity interest in Apollo Subsidiary to Lianyungang (the “Apollo Subsidiary Transfer”). In exchange for the Apollo Subsidiary Transfer, Lianyungang transferred, conveyed and assigned its 95.26% equity interest in the Company to the Company for cancellation. Upon the closing of the transaction, ACI beneficially owned 78.3% of the Company’s issued and outstanding Ordinary Shares.

As December 31, 2016 and 2015, the balance of other intangible assets is $0.

10

Note 7 - Loan from Related Party

On March 18, 2015, the Company issued a Demand Promissory Note to ACI in the principal amount of $5,000 (the “March Note”) in order to cover the Company’s operating expenses. The March Note accrued interest equal to three percent (3%) per annum and is due upon demand from ACI.

On June 5, 2015, the Company issued a Demand Promissory Note to ACI in the principal amount of 10,000 (the “June Note”) in order to cover the Company’s operating expenses. The June Note accrues interest equal to three percent (3%) per annum and is due upon demand from ACI.

On November 18, 2015, the Company issued a Demand Promissory Note to ACI in the principal amount of 20,000 (the “November Note”) in order to cover the Company’s operating expenses. The November Note accrues interest equal to three percent (3%) per annum and is due upon demand from ACI.

On September 9, 2016, the Company issued a Demand Promissory Note to ACI in the principal amount of 10,000 (the “September Note” and, together with the March Note, June Note and November Note, the “Notes”) in order to cover the Company’s operating expenses. The September Note accrues interest equal to three percent (3%) per annum and is due upon demand from ACI. The Company will use the proceeds from the Notes to fund the general and administrative expenses of the Company as the Company does not currently generate any revenues.

As of December 31, 2016, the balance of the Notes to ACI was $45,000. The total accrued interest was $1,502 and $883 for the quarter ended December 31, 2016 and the year ended June 30, 2016, respectively. The Notes are payable on demand and there is no maturity date. ACI and the Company are related parties.

Note 8 – Securities Purchase Agreements

On February 17, 2015, the Company entered into a Securities Purchase Agreement (the “Agreement”) with Lianyungang China, pursuant to which the Company issued 20,000,000 Ordinary Shares of the Company to Lianyungang China at a price of $1.00 per share, for aggregate proceeds equal to $20,000,000. On March 17, 2015, the transactions contemplated under the Agreement were consummated.

On March 23, 2015, the Company entered into a Securities Purchase Agreement (the “SPA”) HK Battery to purchase 10,000,000 shares of HK Battery’s common stock, par value of $0.001 per share, at a per share price of $1.00. On June 26, 2015, the parties terminated the SPA.

On November 6, 2015, ACI entered into a Stock Purchase Agreement with Hybrid Kinetic, pursuant to which ACI sold to Hybrid Kynetic 781,250 Ordinary Shares of the Company at a purchase price of $1.00 per share.

Note 9 – Subsequent Event

These financial statements were approved by management and available for issuance on February 13, 2017. There have been no subsequent events through this date.

11

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This report contains forward-looking statements. All statements other than statements of historical facts included in this Quarterly Report on Form 10-Q, including without limitation, statements in this Management's Discussion and Analysis of Financial Condition and Results of Operations regarding our financial position, estimated working capital, business strategy, the plans and objectives of our management for future operations and those statements preceded by, followed by or that otherwise include the words "believe," "expects," "anticipates," "intends," "estimates," "projects," "target," "goal," "plans," "objective," "should" or similar expressions or variations on such expressions are forward-looking statements. We can give no assurances that the assumptions upon which the forward-looking statements are based will prove to be correct. Because forward-looking statements are subject to risks and uncertainties including those related to changes in economic conditions, new business opportunities and general financial and business conditions, actual results may differ materially from those expressed or implied by the forward-looking statements.

Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which speak only as of the date hereof. We believe the information contained in this Form 10-Q to be accurate as of the date hereof. Changes may occur after that date. We will not update that information except as required by law in the normal course of its public disclosure practices.

Additionally, the following discussion regarding our financial condition and results of operations should be read in conjunction with the condensed financial statements and accompanying notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q and with the Management's Discussion and Analysis of Financial Condition and Results of Operations and the audited financial statements and accompanying notes included our Annual Report on Form 10-K for the fiscal year ended June 30, 2016, filed with the SEC.

Unless the context otherwise requires, the terms "the Company," "we," "us" and "our" refer to Apollo Acquisition Corporation

OVERVIEW AND RECENT DEVELOPMENTS

We are a development stage company formed solely for the purpose of identifying and entering into a business combination with a privately held business or company, domiciled and operating in an emerging market that is seeking the advantages of being a publicly held corporation whose stock is eventually traded on a major United States stock exchange. We intend to focus on targets located primarily in Asia, South America and Eastern Europe, as we believe that businesses with operating history and growth potential in these locations would benefit significantly from access to the United States capital markets and may offer the potential of capital appreciation stemming from the economic growth in such emerging markets.

Plan of Operation

We have not engaged in any business activities that generate revenue. Our activities to date have been primarily focused upon our formation and raising capital. We have conducted private offerings of our ordinary shares, the proceeds of which we intend to use for payment of costs associated with formation, accounting and auditing fees, legal fees, and costs associated with identifying acquisition targets and completing necessary due diligence. In addition, we expect to incur costs related to filing periodic reports with the Securities and Exchange Commission. We believe we will be able to meet these costs for at least the next 12 months by obtaining loans from our shareholders, management or other investors.

We may consider a business which has recently commenced operations, is a developing company in need of additional funds for expansion into new products or markets, is seeking to develop a new product or service, or is an established business which may be experiencing financial or operating difficulties and is in need of additional capital. In the alternative, a business combination may involve the acquisition of, or merger with, a company which does not need substantial additional capital, but which desires to establish a public trading market for its shares, while avoiding, among other things, the time delays, significant expense, and loss of voting control which may occur in a public offering.

Change of Control

On February 13, 2015, Hybrid Kinetic sold 781,250 ordinary shares, par value of $0.000128 per share (the "Purchased Shares") of the Company to American Compass, Inc., a California corporation ("ACI"), in a private transaction exempt from registration under the Securities Act of 1933, as amended, for an aggregate purchase price of $781,250. As a result of such transaction, ACI was the beneficial owner of approximately 78.3% of the Company's issued and outstanding ordinary shares.

12

On February 17, 2015, the Company entered into a Securities Purchase Agreement (the "Agreement") with Lianyungang 11K New Energy Vehicle System Integration Corporation, a company organized under the laws of the People's Republic of China (the "Investor"), for gross proceeds equal to an aggregate of $20,000,000 in exchange for the issuance of 20,000,000 ordinary shares of the Company, par value of $0.000128 per share (the "Shares"), at a per share price of $1.00. On March 17, 2015, the Company received gross proceeds of $20,000,000 from the Investor and the Company issued the Shares to the Investor. The Shares constitute "restricted securities" within the meaning of Rule 144 of the Securities Act of 1933, as amended, and may not be sold, pledged, or otherwise disposed of by the Purchaser without restriction under the Securities Act and state securities laws.

On June 22, 2015, the Company established a wholly-owned subsidiary, Apollo Technology Corporation, and transferred the $20,000,000 other intangible assets under this subsidiary. On June 26, 2015, the Company entered into a Common Stock Exchange Agreement (the “Exchange Agreement”) with Lianyungang Corporation, a Cayman Islands Exempted Company (“Lianyungang”). Pursuant to the Exchange Agreement, the Company transferred, conveyed and assigned one hundred percent of its equity interest in Apollo Technology Corporation, a Cayman Islands Exempted Company, to Lianyungang (the “Apollo Technology Transfer”). In exchange for the Apollo Technology Transfer, Lianyungang transferred, conveyed and assigned its ninety-five and twenty-six one-hundredths percent (95.26%) equity interest in the Company to the Company for cancellation. Upon closing of the transaction, which took place on June 26, 2015 (the “Exchange Closing Date”), the Company redeemed its ordinary shares, which represented 95.26% of the issued and outstanding ordinary shares just prior to the Exchange Closing Date. As a result, American Compass Inc. owned 78.3% of the Company’s issued and outstanding ordinary shares.

On March 23, 2015 (the "SPA Effective Date"), the Company entered into a Securities Purchase Agreement (the "SPA") with HK Battery Technology, Inc., a Delaware corporation (the "Seller"), to purchase Ten Million shares of the Seller's common stock, par value of $0.001 per share (the "Shares"), at a per share price of $1.00. On June 26, 2015, the parties terminated the SPA.

On November 6, 2015, American Compass, Inc., a California corporation, entered into a Stock Purchase Agreement with Hybrid Kinetic Automotive Holdings, LLC, a Delaware limited liability company (the “Buyer”), to sell to the Buyer 781,250 ordinary shares of stock of the Company at a purchase price of $1.00 per share (the “Stock Purchase”). The Stock Purchase is a private transaction exempt from registration under the Securities Act of 1933, as amended. Upon the closing of the Stock Purchase, the Buyer will be the beneficial owner of approximately 78.3% of the Company’s issued and outstanding ordinary shares.

The Buyer has not advised the Company of any plans to appoint new directors to the Company’s Board of Directors or to make any changes to the Company’s management or operations.

RESULTS OF OPERATIONS

Six Months Ended December 31, 2016 and Six Months Ended December 31, 2015

We are still in our development stage and have generated no revenues to date.

We incurred general and administrative expenses of $20,419 and $22,259 for the six months ended December 31, 2016 and 2015, respectively. These expenses consisted of legal and other professional fees and operating costs incurred in connection with the day to day operation of our business and the preparation and filing of our periodic reports.

Our net loss for the six months ended December 31, 2016 and 2015 were $21,038 and $22,554, respectively. The decrease in net loss is primarily attributable to a decrease in operating expenses.

We have generated no revenues and our net operating loss from inception.

LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 2016, we had a cash balance of $8,843. The Company is actively pursuing merger opportunities as described in the "Overview" Section of Management's Discussion and Analysis.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

13

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our Chief Executive and Financial Officer has reviewed and evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 240.13a-15(e) or 15d-15(e)) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive and Financial Officer has concluded that our current disclosure controls and procedures provide him with reasonable assurance that they are effective to provide him with timely material information relating to us required to be disclosed in the reports we file or submit under the Exchange Act.

Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. On November 6, 2015, the Company entered into an agreement to sell to American Compass, Inc. 78.3% of the Company's common equity as described in Note 1 - Organization, Business and Operations activities. Our Chief Executive and Financial Officer does not believe this will result in any material changes to our processes or procedures that will affect our internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We know of no material, existing or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director, officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 1A. RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

We did not sell any unregistered securities during the six month period ended December 31, 2016.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

14

ITEM 6. EXHIBITS

The following exhibits are included with this quarterly report.

Exhibit No.	SEC Report Reference Number	Description
31.1	*	Certification of Principal Executive Officer, pursuant to SEC Rules 13a-14(a) and 15d-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**
31.2	*	Certification of Principal Financial Officer, pursuant to SEC Rules 13a-14(a) and 15d-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**
32.1	*	Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
32.2	*	Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
101.INS	*	XBRL Instance Document***
101.SCH	*	XBRL Taxonomy Extension Schema Document***
101.CAL	*	XBRL Taxonomy Extension Calculation Linkbase Document***
101.DEF	*	XBRL Taxonomy Extension Definition Linkbase Document***
101.LAB	*	XBRL Taxonomy Extension Label Linkbase Document***
101.PRE	*	XBRL Taxonomy Extension Presentation Linkbase Document***

* Filed herewith.

** This certification is being furnished and shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

*** Pursuant to Rule 406T of Regulation S-T, this XBRL related information shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed part of a registration statement, prospectus or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filings.

15

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	APOLLO ACQUISITION CORPORATION
Date: February 14, 2017	By:	/s/ Jianguo Xu
		Jianguo Xu
		Chief Executive Officer and Director
Date: February 14, 2017	By:	/s/ Jianguo Xu
		Jianguo Xu
		Chief Financial Officer and Director

16