| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of Presentation and Principles of Consolidation The
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America (“U.S. GAAP”), and include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries.
All significant inter-company transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. In
the opinion of management, the unaudited interim condensed financial statements reflect all adjustments of a normal recurring nature
that are necessary for a fair presentation of the results for the interim periods presented. However, the results of operations included
in such financial statements may not necessary be indicative of annual results. The
Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures
normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United
States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited condensed financial statements should be
read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report
on Form 10-K for the year ended March 31, 2023 filed with the Securities and Exchange Commission (“SEC”) on July 14, 2023
(“2023 Form 10-K.”) Use
of Estimates The
accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”)
and the rules and regulations of the Securities and Exchange Commission (the “SEC”). The
preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates, judgments and
assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results may differ from those
estimates and assumptions. Functional
and presentation currency The
functional currency of the Company is the currency of the primary economic environment in which the Company operates which is Chinese
Yuan (“RMB”). The RMB is not freely convertible into the US dollar and may be subject to PRC currency restrictions for payments,
including the distributions of dividends or retained earnings to the Company by its subsidiaries or its variable interest entities. Transactions
in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction.
At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end
of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end
are included in income statement of the period. For
the purpose of presenting these financial statements, the Company’s assets and liabilities are expressed in US$ at the exchange
rate on the balance sheet date, stockholder’s equity accounts are translated at historical rates, and income and expense items
are translated at the weighted average exchange rate during the period. The resulting translation adjustments are reported under accumulated
other comprehensive income (loss) in the stockholder’s equity (deficits) section of the balance sheets. Exchange
rate used for the translation as follows: SCHEDULE
OF EXCHANGE RATE
US$ to RMB Period End Average
December 31, 2023 7.0786 7.1512
March 31, 2023 6.8691 -
December 31, 2022 6.8979 6.8562 Cash
and Cash Equivalents Cash
and cash equivalents include cash in banks, bank deposits, and highly liquid investments with maturities of three months or less at the
date of origination. Advances
to Suppliers The
Company occasionally makes advances to suppliers to secure future deliveries of goods or services. These advances are recorded as assets
on the balance sheet and are recognized as inventory when the related goods are received or as expenses when the related services are
received. These advances primarily relate to the purchase of inventory goods to be sold. The
Company periodically reviews the recoverability of advances to suppliers and establishes allowances for potential losses when necessary. Property
and Equipment Property
and equipment are carried at cost net of accumulated depreciation. Expenditures that improve the functionality of the related asset or
extend the useful life are capitalized. When property and equipment is retired or otherwise disposed of, the related gain or loss is
included in operating income. Leasehold improvements are depreciated on the straight-line method over the shorter of the remaining lease
term or estimated useful life of the asset. Property
and equipment are depreciated on a straight-line basis over the following periods: SCHEDULE OF PROPERTY AND EQUIPMENT DEPRECIATION
Leasehold
improvements 2
Office
furniture Impairment
of Long-Lived Assets The
Company has adopted Accounting Standards Codification subtopic 360-10, Property, Plant and Equipment (“ASC 360-10”). ASC
360-10 requires that long-lived assets and certain identifiable intangibles held and used by the Company be reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company evaluates its long-lived
assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant
unfavorable changes in business conditions, recurring losses, or a forecasted inability to achieve breakeven operating results over an
extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should
impairment in value be indicated, the carrying value of intangible assets will be adjusted, based on estimates of future discounted cash
flows resulting from the use and ultimate disposition of the asset. ASC 360-10 also requires assets to be disposed of be reported at
the lower of the carrying amount or the fair value less costs to sell. Impairment loss on property and equipment was $ nil nil Customer
Advances The
Company records customer advances as liabilities when consideration is received in advance of the transfer of goods. These advances are
recognized as revenue when the performance obligations associated with the advance are satisfied. These advances relate to the advance
payment for orders of goods placed by the customers. Lease The
Company adopted FASB Accounting Standards Codification, Topic 842, Leases (“ASC 842”) using the modified retrospective approach,
electing the practical expedient that allows the Company not to restate its comparative periods prior to the adoption of the standard
on January 1, 2019. The
new leasing standard requires recognition of leases on the balance sheets as right-of-use (“ROU”) assets and lease liabilities.
ROU assets represent the Company’s right to use underlying assets for the lease terms and lease liabilities represent the Company’s
obligation to make lease payments arising from the leases. Operating lease ROU assets and operating lease liabilities are recognized
based on the present value and future minimum lease payments over the lease term at commencement date. The Company’s future minimum
based payments used to determine the Company’s lease liabilities mainly include minimum based rent payments. As most of the Company’s
leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available
at commencement date in determining the present value of lease payments. The Company does not recognize any l eases
with an initial term of 12 months or less on the balance sheets. Operating
lease cost is recognized as a single lease cost on a straight-line basis over the lease term. Variable lease payments for common area
maintenance, property taxes and other operating expenses are recognized as expense in the period when the changes in facts and circumstances
on which the variable lease payments are based occur. Revenue
Recognition Revenue
is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration
we expect to be entitled to in exchange for those goods or services. The Company determines revenue recognition by applying the following
steps: 1) identification of the contract, or contracts, with a customer; 2) identification of the performance obligations in the contract;
3) determination of the transaction price; 4) allocation of the transaction price to the performance obligations in the contract; and
5) recognition of revenue when, or as, we satisfy a performance obligation. Online
advertising The
Company operates an online advertising platform that connects advertisers with publishers to display digital advertisements. For
the Company, revenue recognition occurs upon the following events: when a customer places an order, payment is received, and the advertisement
is delivered and viewable to the end-user with no other terms and conditions. Sales
of goods The
Company operates a mobile application (“App”) through which it sells health and beauty products to customers. For
the Company, revenue recognition occurs upon the following events: when a customer places an order, payment is received, and the goods
are delivered to or drop-shipped to and accepted by the customer. Provisions are made for estimated sales returns based on historical
return rates and experience which are immaterial. The Company may record contract liabilities, such as customer advances, when payments
are received from customers prior to delivery or acceptance of goods by customers. Selling,
General and Administrative Expenses Selling,
general, and administrative expenses primarily consist of costs related to sales and marketing activities, administrative functions,
and certain start-up costs. Selling
expenses include, but are not limited to, sales commissions, advertising costs, shipping and handling expenses, and costs associated
with trade shows and promotional events. General and administrative expenses encompass salaries and benefits of employees not directly
involved in production, rent, utilities, office supplies, legal and professional fees, other overhead costs, and certain start-up costs. Start-up
costs represent expenses associated with the establishment of new operations, including activities such as market research, product development,
and initial marketing efforts. The
Company recognizes these expenses as incurred, consistently matching with the revenues generated. Income
Taxes The
Company records income tax expense using the asset-and-liability method of accounting for deferred income taxes. Under this method, deferred
taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their
financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the
differences are expected to affect taxable income. Deferred tax assets are reduced by a valuation allowance if, based on available evidence,
it is more likely than not that the deferred tax assets will not be realized. When
tax returns are filed, it is likely some positions taken would be sustained upon examination by the taxing authorities, while others
are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The
benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management
believes it is more-likely-than-not the position will be sustained upon examination, including the resolution of appeals or litigation
processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not
recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement
with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount described
above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest
and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is
classified as interest expense and penalties are classified in general and administrative expenses in the statements of operations. Earnings
Per Share The
Company computes basic and diluted earnings per share amounts in accordance with ASC Topic 260, Earnings per Share. Basic earnings per
share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding
during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments
to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings
of the Company. As
of December 31, 2023 and March 31, 2023, the Company does not have any potentially dilutive instrument. Contingencies Certain
conditions may exist as of the date the financial statements are issued, which could result in a loss to the Company which will be resolved
when one or more future events occur or fail to occur. The Company’s management assesses such contingent liabilities, and such
assessment inherently involves judgment. In assessing loss contingencies arising from legal proceedings pending against the Company or
unasserted claims that may rise from such proceedings, the Company’s management evaluates the perceived merits of any legal proceedings
or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. If
the assessment of a contingency indicates it is probable a material loss will be incurred and the amount of the loss can be reasonably
estimated, then the estimated loss is accrued in the Company’s financial statements. If the assessment indicates a material loss
contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability,
together with an estimate of the range of possible loss if determinable and material would be disclosed. Fair
Value Measurements Fair
value accounting establishes a framework for measuring fair value and expands disclosure about fair value measurements. Fair value, which
is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. This framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value into three levels as follows:
● Level
1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
● Level
2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that
are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.
● Level
3 inputs to the valuation methodology are unobservable and significant to the fair value. The
Company’s financial instruments consisted of cash, accounts payable, contract liabilities and loan from shareholders. The estimated
fair value of those balances approximates the carrying amount due to the short maturity of these instruments. Credit
Losses on Financial Instruments The
Company recognizes credit losses on financial instruments in accordance with Accounting Standards Codification (ASC) Topic 326, Financial
Instruments – Credit Losses. The Company uses the Current Expected Credit Losses (CECL) model to estimate credit losses on financial
assets measured at amortized cost, as well as certain off-balance sheet credit exposures. Under
the CECL model, the estimation of credit losses involves significant judgment and estimation uncertainty. Management exercises its judgment
based on historical loss experience, current economic conditions, and reasonable and supportable forecasts. Changes in these factors
could have a material impact on the estimated credit losses. As
of December 31, 2023, the Company does not have any financial instruments subject to credit loss evaluation. Income
Taxes The
Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred
tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred
taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more
likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is
uncertain. Under
ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained
in a tax examination, with a tax examination being presumed to occur. The evaluation of a tax position is a two-step process. The first
step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including the resolution
of any related appeals or litigations based on the technical merits of that position. The second step is to measure a tax position that
meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position
is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions
that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in
which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized
in the first subsequent financial reporting period in which the threshold is no longer met. Penalties and interest incurred related to
underpayment of income tax are classified as income tax expense in the year incurred. Recent
Accounting Pronouncements In
June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments – Credit Losses: Measurement of Credit Losses on
Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss”
model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience,
current conditions and reasonable and supportable forecasts. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective
date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies (SRCs) as defined by the SEC. ASU No.
2016-13 is effective for SRCs for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.
The Company adopted ASU 2016-13 on its financial position and results of operations as of April 1, 2023, with no material impact. There
were other updates recently issued. The management does not believe that other than the disclosed above, accounting pronouncements the
recently issued but not yet adopted will have a material impact on its financial position results of operations or cash flows. |
