NOTE 5. STOCKHOLDER'S EQUITY The Company has authorized 99,900,000,000 shares of common stocks with a par value of 0.0000001 per share. There Company issued 99,900,000,0000 Class A common shares on August 25, 2017. On November 9, 2017, the Company had made a 1-for-10,000 reverse stock split. Therefore, there are currently 9,990,000 shares of common stocks outstanding as of December 31, 2018. In the period from April 1, 2018 to December 31, 2018, the Company didn't issue any stock types, options and warrants; the Company didn't have any share-based compensation, related to employee share-based awards, Tax benefit from share-based award activities. NOTE 6. RELATED PARTY TRANSACTIONS The Company has been provided office space by its majority stockholder at no cost. Management determined that such cost is nominal and did not recognize the rent expense in its financial statements. On November 21, 2016, Lansdale Inc. loaned $2,000 to Landbay Inc. for working capital purposes. The Company's president, Mr. Wanjun Xie owns 40% of common stocks issued and outstanding of Lansdale Inc. and is also the president and CEO of that entity. It is a short term loan that bears no interest and will be paid back within 12 months. Since this is a short term loan, imputed interest need not be calculated as it is rendered immaterial. On April 25, 2018 Lansdale Inc. gifted 15,000 shares of SMKC to Achison Inc. On April 27, 2018 Lansdale Inc. gifted 20,000 shares of SMKC to Achison Inc. On August 29, 2018 Lansdale Inc. gifted 15,000 shares of SMKC to Achison Inc. On September 04, 2018, Lansdale Inc., loaned an additional $5,000 to Lansdale Inc. bearing 10% interest. 6 Back to Table of Contents Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis should be read in conjunction with the financial statements of Achison Inc., and the related notes included elsewhere in this statement. The historical financial data discussed below reflects the historical results and financial position of Achison Inc. In addition, this discussion and analysis contains forward looking statements and involves numerous risks and uncertainties, including those described under "Cautionary Note Regarding Forward-Looking Statement" and "Risk Factors". Actual results may differ materially from those contained in any forward looking statements. Overview Industry Environment Achison Inc is engaging in trading the spot silver in Singapore Market; investing in equity securities in the U.S. market; engaging in trading whisky in UK market, the brand include Dailuaine and Auchroisk; holding its majority-owned subsidiaries. Linton Inc is a majority-owned subsidiary of Achisn Inc. Linton Inc s engaging in trading the spot gold in Switzerland Market; engaging in trading whisky in UK market, the brand include Ardmore,Tullibardine and Strathenry; holding its majority-owned subsidiaries. The business that the Corporation is trading the spot silver and Linton Inc is trading the spot gold is impacted by the international circumstances, and the business was impacted by the market's analysis and market's prediction of the Corporation: (1). US dollar is appreciation; the international political situation is stable; a financial status and the economy status in some countries are good; deflation in some countries happen; the rate of US dollar is fall, demand exceed supply seriously, and so on, the price of silver and gold will going down. This is the opportunity that the Corporation will buy and hold the spot silver and Linton Inc will buy the spot gold. (2). US dollar is depreciation; chaos caused by war; a volatile international political situation; a financial crisis in some countries; inflation in some countries; the rate of US dollar is raising, supply exceed demand seriously, and so on, the price of silver and gold will going up. This is the opportunity that the Corporation will sell its spot silver and Linton Inc will sell gold, and gain profits. (3). We don't consider these to be a known trend or uncertainty that our reasonable expect will have a material impact on the company's liquidity, capital resources or results of operations. The Corporation is engaging in trading securities in US market, the competitions are the price's compitition of the stocks. The follow factors will impact the price of the stocks: (1). The factors of companies will impact price of an individual stocks, the factors include the operating conditions and the financial condition of the company; (2). The economic factors of USA will impact the price of the stocks, the factors include the interest rate level, the exchange rate level, the international incomes and expenses, the real terms, the economic circle, the economic index, the ecominc policies. (3). The political infactors will impact the price of the stocks, the infactors include the political situation, the political accidents, the diplomatic relations and the party in power changed. The Corporation is engaging in trading whisky in UK market. the competitions are the price's compitition of the stocks. The follow factors will impact the price of whisky in UK market: (1). The type and age of the whisky will impact the price of the whisky; (2). The demanment and supplement relationship will impact the price of the whisky; (3). The expenses for custody and insured will impact the price of the whisky. We tried to reduce the risk when we were trading the spot silver, the spot gold, whisky and securities: (1). We will always keep enough cash in our trading account to against the risk factors. (2). We won't use a leverage trading, a margin trading or a financial trading. We will always to use the own funds of the Corporation to trade the spot silver, the spot gold, whisky and securities. (3). We assume that the Risk Factors will happen at any time, but we try to reduce any risks when we are in trading the spot silver, the spot gold, whisky and securities. (4). When the Corporation will become a middle capital company and a big capital company, We will carry on the diversified investment to reduce the risk Primary Sources of Revenues The primary sources of revenues of the Corporation were trading income and other incomes. Primary Expenses The primary expenses are the trading expenditure, the professional expenditure and the bank fees. Components of Results of Operations Revenue Trading income: The primary incomes of the Corporation were trading the spot silver, the spot gold, whisky and securities. Cost of Revenue and Operating Expenses Cost of revenue: The cost of revenue was the trading fees, the professional fees and the bank fees. Professional expenditure: The professional expenses include the auditing fees, accounting fees and XBRL servicing fees. 7 Back to Table of Contents Results of Operations The following tables set forth our statements of income data: |