STOCKHOLDERS' EQUITY

12 Months Ended

Jan. 31, 2018

Notes to Financial Statements

NOTE 9. STOCKHOLDERS' EQUITY

The capitalization of the Company consists of the following classes of capital stock as of January 31, 2017:

Preferred Stock

The Company has authorized 15,000,000 shares of preferred stock with a par value of $0.0001 per share. The Board of Directors are authorized to divide the authorized shares of Preferred Stock into one or more series, each of which shall be so designated as to distinguish the shares thereof from the shares of all other series and classes. No shares of preferred stock have been issued.

Common Stock

On October 9, 2015, the authorized number of shares of the Company’s common stock was increased from 100,000,000 shares to 1,000,000,000 shares.

The Company now has authorized 1,000,000,000 shares of common stock with a par value of $0.0001 per shares. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought.

During the year ended January 31, 2018, there were no issuance of common stock.

During the year ended January 31, 2017, there were no issuance of common stock.

As at January 31, 2018 and 2017, the Company had 74,976,241 common shares issued and outstanding.

The Company has no stock option plan, warrants or other dilutive securities.

Contingently Issuable Common Stock

On January 29, 2016, the Company entered into an exchange agreement with Mr. Yang Baojin (the “Agreement”), a citizen of the PRC, and Huaxin, the wholly owned subsidiary of Xing Rui, which is a wholly owned subsidiary of the Company. Mr. Yang is the president and majority owner of Tieshan Oil. The exchange was closed on January 29, 2016.

Pursuant to the Agreement, the Company agreed to issue 6,000,000 shares of its common stock, par value $0.0001, to Mr. Yang, and Mr. Yang delivered to Huaxin an ownership interest in Tieshan Oil such that Huaxin owns 51% of all ownership interests in Tieshan Oil, provided that 1,200,000 shares of the Company’s common stock (20% of the common stock to be delivered to Mr. Yang) were withheld by the Company for a period of 12 months in order to secure against breach by Mr. Yang of his representations and warranties contained in the agreement, as well as to secure the fulfillment of his covenants and further obligations under the agreement. The Company did not issue these 1,200,000 additional escrow shares and accordingly excludes them from the calculation of common stock issued and outstanding.

During the year ended January 31, 2017, the Company cancelled the 1,200,000 shares of escrowed and recorded as additional paid in capital.

Additional Paid-In Capital

During the year ended January 31, 2018 and 2017, related parties contributed additional paid-in capital in the amount of $111,066 and $147,348, to fund operating expenses.

During the year ended January 31, 2016, related parties contributed additional paid-in capital in the amount of $95,669, to fund operating expenses.