10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended   June 30, 2016

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

For the transition period from _______ to _______

Commission File Number: 333-201365

VITAXEL GROUP LIMITED

(Exact name of registrant as specified in its charter)

Nevada	30-0803939
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)

Wisma Ho Wah Genting, No. 35

JalanMaharajalela, 50150

Kuala Lumpur, Malaysia

(Address of principal executive offices)

603.2143.2889

(Registrant’s telephone number, including area code)

N/A

(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 ¨  No x

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 that the registrant was required to submit and post such files).
Yes ¨ No ¨

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

Large accelerated filer ¨	Accelerated filer ¨	Non-accelerated filer ¨	Smaller reporting company x
		(Do not check if a smaller Reporting company)

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

There were 5,098,725,000 shares of the issuer’s common stock outstanding as of August 10, 2016.

VITAXEL GROUP LIMITED

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2016

TABLE OF CONTENTS

		PAGE
	PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	22
Item 1A.	Risk Factors	22
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3.	Defaults Upon Senior Securities	22
Item 4.	Mine Safety Disclosures	22
Item 5.	Other Information	22
Item 6.	Exhibits	23
	SIGNATURES	24

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

	PAGE
Consolidated Balance Sheets as of June 30, 2016 (unaudited) and December 31, 2015	4
Consolidated Statements of Income for the Three-month and Six-month Periods Ended June 30, 2016 and 2015 (unaudited)	5
Consolidated Statements of Cash Flows for the Three-month and Six-month Periods Ended June 30, 2016 and 2015 (unaudited)	6
Notes to Consolidated Financial Statements (unaudited)	7

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Vitaxel Group Limited

CONSOLILDATED BALANCE SHEETS

As of June 30,2016 and December 31,2015

(In U.S.dollars)

	As of June 30,			As of December 31,
	2016			2015
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	210,825		$	303,794
Prepayment		-			12,308
Deferred tax asset		8,124			-
Inventories		33,060			9,870
Other receivables and other assets		31,875			53,324
Total Current Assets		283,884			379,296
NON-CURRENT ASSETS
Property, plant and equipment, net		208,509			104,857
Total Non-Current Assets
TOTAL ASSETS	$	492,393		$	484,153
CURRENT LIABILITIES
Amounts due to a related party	$	665,074		$	233,100
Amounts due to a director		24,845			-
Commission payables		351,969			537,655
Accounts payable		2,109			-
Accruals and other payables		1,031,916			735,143
Tax payable		8,865			17,586
Total Current Liabilities		2,084,777			1,523,484
NON-CURRENT LIABILITY
Deferred tax liability		8,124			-
TOTAL LIABILITIES		2,092,902			1,523,484
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Common stock par value $0.000001: 7,000,000,000 shares authorized; 5,098,725,000 and 3,999,000,000 shares issued and outstanding, respectively		5,099			3,999
Additional paid-in capital		509,348			510,448
Accumulated deficit		(2,219,975	)		(1,733,633	)
Accumulated other comprehensive income		105,019			179,855
Total Stockholders' Equity		(1,600,509	)		(1,039,331	)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	492,393		$	484,153

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

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Vitaxel Group Limited

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS

(In U.S. dollars)

(Unaudited) 

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2016			2015			2016			2015
REVENUE	$	435,030		$	552,779		$	1,294,912		$	1,087,696
COST OF REVENUE		(356,221	)		(497,980	)		(911,309	)		(918,310	)
GROSS PROFIT		78,809			54,799			383,603			169,386
OPERATING EXPENSES
Selling expense		(648	)		-			(1,515	)		(1,724	)
General and administrative expenses		(572,549	)		(194,731	)		(930,303	)		(304,198	)
Total Operating Expenses		(573,197	)		(194,731	)		(931,818	)		(305,922	)
(LOSS)/INCOME FROM OPERATIONS		(494,388	)		(139,932	)		(548,215	)		(136,536	)
OTHER INCOME/(EXPENSE), NET
Other Income		14,879			-			71,629			38
Other Expense		(9,443	)		(86,066	)		(9,756	)		(86,991	)
Total Other Income / (Expense), net		5,436			(86,066	)		61,873			(86,953	)
NET LOSS BEFORE TAXES		(488,952	)		(225,998	)		(486,342	)		(223,489	)
Income tax expense		-			-			-			-
Net loss	$	(488,952	)	$	(225,998	)	$	(486,342	)	$	(223,489	)
OTHER COMPREHENSIVE INCOME/(LOSS)
Foreign currency translation adjustment		31,577			-			(74,248	)		-
TOTAL COMPREHENSIVE LOSS	$	(457,375	)	$	(225,998	)	$	(560,590	)	$	(223,489	)

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

5

Vitaxel Group Limited

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In U.S. dollars)

(Unaudited) 

	For the Period Ended June 30,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(486,342	)	$	(223,489	)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation – property, plant and equipment		9,784			1,894
Prepayment		12,308			518,048
Other receivables and other assets		21,449			14,097
Deferred tax asset		(8,124	)		-
Inventories		(23,190	)		10,605
Trade creditor		2,109			-
Commission payables		(185,686	)		-
Other payables and accrued expenses		296,773			-
GST on payment		-			(90	)
Deferred tax liability		8,124			-
Tax payable		(8,721	)		10,732
Net cash (used in) provided by operating activities		(361,516	)		331,797
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(105,543	)		(19,734	)
Net cash used in investing activities		(105,543	)		(19,734	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from directors		24,845			-
(Decrease) in amount due to holding company		-			(54,785	)
Proceeds from related parties		431,974			-
Net cash provided by (used in) financing activities		456,819			(54,785	)
EFFECT OF EXCHANGE RATES ON CASH		(82,728	)		-
NET  (DECREASE) INCREASE  IN CASH AND CASH EQUIVALENTS		(92,969	)		257,278
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		303,794			28,056
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	210,825			285,334
SUPPLEMENTAL OF CASH FLOW INFORMATION
Cash paid for interest expenses	$	-			-
Cash paid for income tax	$	-		$	-

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

6

Vitaxel Group Limited

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars)

(Unaudited)

1. ORGANIZATION AND BUSINESS

Vitaxel Group Limited (formerly Albero, Corp., the “Company”), incorporated in Nevada, is engaged in direct selling industry and online shopping platform primarily through its operating entities in Malaysia.

Vitaxel SDN BHD ("Vitaxel"), was incorporated in Malaysia on August 10, 2012. The Company is primarily engaged in the direct selling industry utilizing a multi-level marketing model with an emphasis on travel, entertainment and lifestyle products and services.

Vitaxel Online Mall SBN BHD ("Vionmall"), was incorporated in Malaysia on September 22, 2015. The Company is primarily in developing online shopping platforms geared to Vitaxel and its members and the third party suppliers of products and services.

Vitaxel Singapore PTE. Ltd. (“Vitaxel Singapore”) was incorporated in Singapore on February 16, 2016.

REVERSE ACQUISITION

On January 18, 2016, the Company completed and closed a share exchange (the “Share Exchange”) under a Share Exchange Agreement (the “Share Exchange Agreement”) of the same date among us, Vitaxel SDN BHD, a Malaysian corporation (“Vitaxel”), the shareholders of Vitaxel, Vitaxel Online Mall SBN BHD, a Malaysian corporation (“Vionmall”) and the shareholders of Vionmall pursuant to which Vitaxel and Vionmall each became wholly owned subsidiaries of ours. In the Share Exchange, all of the outstanding shares of Vitaxel and Vionmall were converted into shares of our Common Stock, as described in more detail below.

In connection with the Share Exchange and pursuant to the Split-Off Agreement, we transferred our pre-Share Exchange assets and liabilities to our pre-Share Exchange majority stockholder, in exchange for the surrender by him and cancellation of 3,000,000 shares of our Common Stock

As a result of the Share Exchange and Split-Off, we discontinued our pre-Share Exchange business and acquired the businesses of Vitaxel and Vionmall, and will continue the existing business operations of Vitaxel and Vionmall as a publicly-traded company under the name Vitaxel Group Limited.

In accordance with “reverse acquisition” accounting treatment, our historical financial statements as of period ends, and for periods ended, prior to the acquisition will be replaced with the historical financial statements of Vitaxel and Vionmall prior to the Share Exchange in all future filings with the SEC.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information article 10 of Regulation S-X.

This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars.

Fiscal year end is December 31.

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Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Foreign currency translation and transactions

The functional currency of the Company is the Malaysian Ringgit (“MYR”) and reporting currency of the Company is United States Dollar “USD”). The financial statements of the Company are translated into USD using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders' equity.

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased.

Accounts receivable

Accounts receivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Company generally does not require collateral from its customers. For the period ended June 30, 2016 and for the year ended December 31, 2015, the Company did not write off any accounts receivable as bad debts.

Fair value of financial instruments

FASB ASC 820, “Fair Value Measurement,” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy:

Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.

Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of June 30, 2016 and December 31, 2015, none of the Company’s assets and liabilities was required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values due to the short term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

8

Inventories

Inventories are stated at lower of cost or market, with cost determined on a weighted-average method, and not to exceed net realizable value. The Company writes down its inventory balances for obsolete amounts estimated on an individual basis for the finished goods and the raw material items with large amounts, and by a category basis for low value raw material items.

Property, plant and equipment, net

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives:

Office equipment	10 years
Furniture and fixtures	10 years
Leasehold improvement	10 years

Revenue recognition

Product sales − The Company generally recognizes revenue upon delivery and when both the title and risk and rewards pass to the independent members or purchasers of the products. Product sales are recognized net of product returns, discounts and taxes. A reserve for product returns is accrued based on historical experience. There was no deferred revenue accrued as of June 30, 2016 and December 31, 2015.

Membership fee − The Company recognizes the membership fee revenue over the term of the membership, which is 12 months. The revenue will not be recognized until the 10 days cooling-off period is expired. For the period ended June 30, 2016 and for the year ended December 31, 2015, all membership feeswere waived by the Company for promotion purpose.

Loyalty program

The Company operates loyalty program which allows customer to accumulate redemption points when they purchase products from the Company. The redemption points can be used to purchase a selection of products at discounted price or redeem products.

The Company allocates consideration received from the sale of goods to the goods sold and the redemption points issued that are expected to be redeemed.

The consideration allocated to the redemptions points issued is measured at fair value of the redemption points. It is recognized as a liability (deferred revenue) in the statement of financial position and recognized as revenue when the points are redeemed, have expired or are no longer expected to be redeemed. The amount of revenue recognized is based on the number of points that have been redeemed, relative to the number expected to redeem.

As of June 30, 2016 and December 31, 2015, there was no such deferred revenue recorded.

Income taxes

Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the combined financial statements.Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics.

9

The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. The Company did not recognize any income tax due to uncertain tax positions or incur any interest and penalties related to potential underpaid income tax expense as of June 30, 2016 and December 31, 2015.

Forward Stock split  

On January 27, 2016, our Board of Directors declared a 1333-for-1 forward stock split of our outstanding common stock, par value $0.000001 per share in the form of a dividend (the “Stock Split”) with a record date of February 8, 2016 (the “Record Date”). On February 22, 2016, Financial Industry Regulatory Authority, Inc. (“FINRA”) notified us of its announcement of the payment date of the Stock Split as February 23, 2016 (the “Payment Date”). On the Payment Date, as a result of the Stock split, each holder of our common stock as of the Record Date received 1332 additional shares of our common stock for each one share owned, rounded up to the nearest whole share. All common stock share amounts referenced in this Quarterly Report give retroactive effect to the Stock Split.

Comprehensive loss

Comprehensive loss includes net loss and cumulative foreign currency translation adjustments and is reported in the Combined Statement of Comprehensive Loss.

Loss per share

The loss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the period ended June 30, 2016 and for the year ended December 31, 2015, there was no dilutive effect due to net loss.

Recently issued accounting pronouncements

Financial instrument: In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. Accordingly, the standard is effective for us on September 1, 2018. We are currently evaluating the impact that the standard will have on our consolidated financial statements.

Leases: In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”), which provides guidance on lease amendments to the FASB AccountingStandard Codification. This ASU will be effective for us beginning in May 1, 2019. We are currently in the process of evaluating the impact of the adoption of ASU 2016-2on our consolidated financial statements.

The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations.

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3. GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses since its inception resulting in an accumulated deficit of $2,219,975 as of June 30, 2016. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These combined financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

The Company expects to finance operations primarily through cash flow from revenue and capital contributions from principal shareholders. In the event that we require additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, our principal shareholders have indicated the intent and ability to provide additional equity financing.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on our ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The financial statements do not include any adjustments that might result from the outcome of this- uncertainty.

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4. OTHER RECEIVABLES AND OTHER ASSETS

Other receivables and other assets consist of the following:

	As of  June 30, 2016		As of  December 31, 2015
Deposits (1)	$	28,063	$	45,830
Others (2)		3,812		7,494
	$	31,875	$	53,324

(1)         Deposits represented payments for rental, utilities, and construction funds to government department.

(2)         Others mainly consists other miscellaneous payments.

5. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consist of the following:

	As of  June 30, 2016			As of  December 31, 2015
Office equipment	$	33,346		$	19,160
Computer equipment		50,649			29,945
Furniture and fittings		7,632			12,238
Electrical & fitting		376			-
Motor vehicle		17,063			-
Software and website		4,850			-
Renovations		111,609			50,166
		225,525			111,509
Less: Accumulated depreciation		(17,016	)		(6,652	)
Balance at end of period/year	$	208,509		$	104,857

Depreciation expenses charged to the statements of operations for the period ended June 30, 2016 and December 31, 2015 were $9,784 and $1,984 respectively.

6. ACCRUALS AND OTHER PAYABLES

Accruals and other payables consist of the following:

	As of June 30, 2016		As of December 31, 2015
Provisions	$	942,157	$	594,492
Others		89,759		140,651
Balance at end of period/year	$	1,031,916	$	735,143

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7. AMOUNT DUE TO A DIRECTOR

	As of June 30, 2016		As of  December 31, 2015
Amounts due to a director
Lim Chun Hoo	$	24,845	$	-

8. RELATED PARTIES TRANSCTIONS

As of June 30, 2016 and December 31, 2015, the amount of due to a related party, Ho Wah Genting Group SdnBhd, was $458,027 and $557,406 respectively. In addition, the amount to Dato’ Lim Hui Boon was $198,758 and 99,379 respectively as of June 30,2016 and December 31, 2015..

The Company recognized an expense of $24,649 pertaining to a forfeited deposit for a group air ticket during the six months ended June 30, 2016, which was paid to its affiliate, Ho WahGenting Holiday Sdn. Bhd..

The Company recognized an expense of $104,785 pertaining to a forfeited deposit for a group air ticket during the year ended 31 December 2015, which was paid to its affiliate, Ho WahGenting Holiday Sdn. Bhd.

9. COMMITMENTS AND CONTINGENCIES

Capital Commitments

The Company engaged a third party to develop an operation software with the total contract amount of $48,069. As of June 30, 2016 and December 31, 2015, Company has no capital commitments.

Operation Commitments

The total future minimum lease payments under the non-cancellable operating lease with respect to the office and the dormitory, as well as hardware trading platform as of June 30, 2016 are payable as follows:

Year ending December 31, 2016		49,150
Year ending December 31, 2017		90,810
Year ending December 31, 2018		22,122
Total	$	162,082

Rental expense of the Company was $62,722 and $4,260 for the period ended June 30, 2016 and 2015, respectively.

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ITEM2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Statement Regarding Forward-Looking Information

The following management’s discussion and analysis of our financial condition should be read in conjunction with the unaudited condensed financial statements and related notes, which we have prepared in accordance with United States generally accepted accounting principles, included elsewhere in this Quarterly Report on Form 10-Q as well as our audited 2014 and 2013 financial statements and related notes and unaudited financial statements as of, and for the nine months ended September 30, 2015 and September 30, 2014, which was filed with the Securities and Exchange Commission on January 22, 2016 and our unaudited condensed financial statements and related notes for the quarterly period ended March 31, 2016, which was filed with the Securities and Exchange Commission on May 16, 2016. In addition to historical information, the discussion and analysis here and throughout this Form 10-Q contains forward-looking statements that involve risk, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. The Company’s actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this report.

The following discussion highlights the Company’s results of operations and the principal factors that have affected our financial condition, as well as our liquidity and capital resources for the periods described, and provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein.

Company Background

On January 18, 2016, we completed and closed a share exchange under a Share Exchange Agreement of the same date among us, Vitaxel SDN BHD, a Malaysian corporation, orVitaxel, the shareholders of Vitaxel, Vitaxel Online Mall SBN BHD, a Malaysian corporation, orVionmall, and the shareholders of Vionmall pursuant to which Vitaxel and Vionmall each became wholly owned subsidiaries of ours.

Pursuant to the terms of the Share Exchange Agreement, we exchanged 3,499,125,000 shares of our common stock for all of the outstanding capital stock of Vitaxel and exchanged 499,875,000 shares of our common stock for all of the outstanding capital stock of Vionmall with the result that both Vitaxel and Vionmall became wholly owned subsidiaries of ours.

We acquired the business of Vitaxel to engage in the direct selling of products and services utilizing a multi-level marketing model with an emphasis on travel, entertainment and lifestyle products and services and the business of Vionmall to develop online shopping platforms geared to Vitaxel and its members and the third party suppliers of products and services.

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Our principal offices are located in Kuala Lumpur, Malaysia.

We are a global direct selling, multi-level marketing company offering travel, entertainment, lifestyle and other products and services principally through electronic commerce commonly referred to as e-commerce. Through Vionmall, which went live in January 2016 for Vitaxel members and April 2016 for general public, we employ online shopping web sites for retail sales direct to consumers. We do not develop or manufacture the products and services which we offer. At June 30, 2016, all of our operations, including sales transactions, were based and completed in Malaysia although we had members in 3 other Asian countries. More than half of our members reside in Malaysia and approximately 21% of our members reside in Singapore. We provide our members with training which includes prospecting and closing skills, plan orientation, back-office training, network management, personal and leadership development and team-building activities.

Unlike the traditional multi-level marketingbusiness model where most of the business model concentrates on particular products and/or services, our business model allows our members to own a sub-domain through Vionmall where they can promote their own products and services (separate from our products and services). We believe that this model is the first of its kind in Asia.

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We strive to differentiate ourselves through innovation in both our product and service offerings and our sales channels. Consumers can purchase our products and services either directly from our members or directly from our online platform. Our products and services are listed on our website and customers can easily purchase them online. Our members need not carry our products physically to their customers, they only need to promote our products through word of mouth or show prospective customers our list of products online through computers or smart-phones. During the quarter ended June 30, 2016, our revenues were primarily attributable to the sale of Vitaxel product packages.

Our Vitaxel packages include product points (which are exchangeable for tour and travel products or travel kits). Since we are relatively new to the market, our initial strategy has been to promote our brand awareness by encouraging more people to become members. In furtherance thereof, to date all membership fees have been waived.Persons that purchase our product packages will automatically become members.

In furtherance of our membership benefits program, on November 1, 2015 Vitaxel entered into a Travel Agency Services Contract (the “Contract”) with Ho Wah Genting Holiday SDN BHD (“HWGH”), a travel agency specializing in providing tour packages, hotel bookings, arranging transportation and event ticket services. Pursuant thereto, HWGH provides services to Vitaxel’s members. The Contract has a term of 2 years and continues automatically for additional one year periods. After the first year, either party may terminate the Contract by providing the other party with 2 months’ advance notice of termination. Lim Chun Hoo, a director of HWGH is the brother of Lim Wee Kiat, our Chairman and Secretary and the son of Dato Lim Hui Boon, our President. Lim Wee Kiat is also an executive director of Ho Wah Genting Berhad, a shareholder of HWGH.

Our initial Vitaxel products have not generated material demand. This has resulted in marginal purchases of our existing Vitaxel products. However, following our research and surveys conducted on the preferences of our members, we have re-packaged and expanded our product packages and the method of selling these products to our members and our customers. This strategy leads to the formation of Vionmall.

 With the introduction of Vionmall, our revenue component has been divided into three categories:

a. Vitaxel Product packages

b. Membership fees

c. Sales from our online Vionmall products

We believe that the Malaysian and other Asian direct selling markets hold significant potential. Our results, as reported in US dollars will be impacted by foreign currency fluctuations as well as global economic, political, demographic and business trends and conditions.

To create brand awareness and to keep our members fully informed as to our products and services, and policies and procedures, we designate certain members to be team leaders. Team leaders promote our membership requirements and products and services through word of mouth, home parties, private previews and training. As of June 30, 2016, we had approximately 180 team leaders, approximately 121of which were located in Malaysia. We expect to engage at least 59 team leaders in each country in which we offer and sell our products and services. Our team leaders are independent contractors and do not receive salaries. They work on a commission basis tied to the revenue generated from product sales. The team leaders promote our products via the methods referenced above. Apart from this, they are required to assist our management to conduct surveys and research on our prospective customers and members needs and behaviors. To do this, the team leaders have meetings and discussions among themselves from time to time. Our obligation to the team leaders is to provide support, inform and advise as to the availability of new products, make payment (commission) on time and ensure that the team leaders understand our objective and mission so that they provide the correct message to our members and customers.

16

Our business is subject to various laws and regulations globally, particularly with respect to our direct selling business models and our product and service categories.

We acquire the products and services which we offer and sell from third parties. Although, we initially intend to primarily offer and sell products related to travel, entertainment and lifestyle, we are not limited to those areas and may sell unrelated products and services as long as these products and services will benefit our members and customers in a manner consistent with our objectives and mission.

As of June 30, 2016, Vitaxel had approximately 5,006 members, with approximately 3,953 members in Malaysia and approximately 1,053 members in Singapore. Vitaxel’s members include approximately 703 Distributors, 1,891 Supervisors, 44 Managers, 38 Directors, 1,988 Senior Directors, 157 Global Directors, 90 Sapphire Global Directors, 65 Ruby Global Directors, 14 Emerald Global Directors, 6 Diamond Global Directors and 10 Black Diamond Global Directors.

People become members for a number of reasons. Some join simply to receive a wholesale price on products and services that they and their families can enjoy. Some join to earn part-time money, wanting to give direct sales a try, whereas others are drawn to us because they can be their own boss and can earn rewards on their own skills and hard work. In addition to discounted prices, members can earn income from several sources. Members may earn income by selling our products and services and their own products and services. The allocation of proceeds from the sales of members’ products and services is similar to the allocation process for independent suppliers of products and services. Suppliers determine the minimum amount they wish to receive, the retail price to consumers is then negotiated between us and the supplier and we retain the difference as profit. Also, members who sponsor other members may earn commissions and bonuses based upon their sponsored members’ performance.

As of June 30, 2016, we have expanded our network member base into approximately 17 Asian countries. While sales within our local markets may fluctuate due to economic, market and regulatory conditions, competitive pressures, political and social instability or for Company-specific reasons, we believe that our geographic diversity and intended further geographic diversity mitigates and will continue to mitigate our exposure to any one particular market.

We intend to continue to engage team leaders within each country in Asia in which we offer and sell our products to lead and promote our products. Since we have already established our name in certain of the Asian counties, we will continue to expand in those countries by providing more benefits to the team leaders, more attractive products through our Vionmall portal, further training and motivation talks, better information technology structure and enhance support systems. We recently signed a license agreement tomarket and operate our business and commercialize Vionmall in Taiwan.

To become a member, a person must purchase a member package. Member packages include products and points that carry a value that approximates the package price. The packages do not come with a membership fees because membership fees are exempted for the first year (that is when members purchase the package, membership fees are waived for the first 12 months). We only collect the membership fees from the second year onwards. Each member package is available in English and Chinese and typically includes booklets describing us, our compensation plan and rules of member conduct, various training and promotional materials, member applications and a product and services catalog. The price of a member package varies by package type and provides a low cost entry for incoming members.

17

Going Concern

Since January 2016, our operations have been funded through product revenue generated by the sale of our Vitaxel product packages and loans from related parties. During the six months ended June 30, 2016, we funded our business primarily through:

· revenue of $435,030 generated by sales of our Vitaxel product packages,

· a $458,027 loan with a related party, Ho Wah Genting Group Sdn Bhd., and

· a $198,758 loan with Dato Lim Hui Boon

Our financial statements have been prepared on a going concern basis which assumes that we will be able to realize our assets and discharge our liabilities in the normal course of business. We have incurred operating losses since inception resulting in an accumulated deficit of approximately $2,219,975 as of June 30, 2016 and further losses are anticipated in the development of our business raising substantial doubt about our ability to continue as a going concern. We are subject to the risks and uncertainties associated with a business with limited commercial product revenues, including limitations on our operating capital resources and uncertain demand for our products. Management intends to finance operating costs over the next twelve months with existing cash on hand and/or private placement of common stock. These financials do not include any adjustments relating to the recoverability and reclassification of recorded asset amounts, or amounts and classifications of liabilities that might result from this uncertainty. 

Results of Operations – Three Months Ended June 30, 2016 Compared to Three Months Ended June 30, 2015

The following discussion should be read in conjunction with the consolidated financial statements of Vitaxel Group Limited for the three months ended June 30, 2016 and 2015 and the related notes thereto.

Revenue

We recognized $435,030 and $552,779 revenue for the period ended June 30, 2016 and 2015, respectively.

The decrease of sales in the current period was due to the promotion campaign started in the first quarter of 2016, which absorbs most of the purchasing power and hence slowed down the sales in the three months ended June 30, 2016.

Cost of Sales

Cost of sales for the period ended June 30, 2016 was $356,221 compared to $497,980 for the period ended June 30, 2015.

The decrease was due to the revision of the commission plan to reduce the scale of commission.

Gross Profit

Gross profit for the period ended June 30, 2016 was $78,809 compared to $54,799 for the period ended June 30, 2015. Based on the revised commission plan in the current period, the change led to a decrease in cost of sales, resulting in an increase in gross profit.

Operating Expenses

For the period ended June 30, 2016, we incurred total operating expenses in the amount of $573,197, composed of selling expenses of $648 and general and administrative expenses totaling $572,549. While, for the period ended June 30, 2015, we incurred total operating expenses in the amount of $194,731, which was composed of only general and administrative expenses totaling $194,731. The increase of $648, or 100% for the selling expenses, along with the increase of $377,818, or 194% for the administrative expenses, caused total operating expenses to increase by $378,466, or 194%.

18

Results of Operations – Six Months Ended June 30, 2016 Compared to Six Months Ended June 30, 2015

The following discussion should be read in conjunction with the consolidated financial statements of Vitaxel Group Limited for the six months ended June 30, 2016 and 2015 and the related notes thereto.

Revenue

We recognized $1,294,912 and $1,087,696 revenue for the period ended June 30, 2016 and 2015, respectively.

The increase of sales is due to more customers in the six months ended June 30, 2016, because of the promotion of new campaign during the first quarter of 2016.

Cost of Sales

Cost of sales for the period ended June 30, 2016 was $911,309 compared to $918,310 for the period ended June 30, 2015.

The decrease is due to the effect of translation gain. The increase of cost of sales in functional currency is shown as a decrease of that in presentation currency due to the fluctuationof exchange rate. The increase of cost of sales in functional currency is comparable to the increase of revenue.

Gross Profit

Gross profit for the period ended June 30, 2016 was $383,603 compared to $169,386 for the period ended June 30, 2015.

Operating Expenses

For the period ended June 30, 2016, we incurred total operating expenses in the amount of $931,818, composed of selling expenses of $1,515 and general and administrative expenses totaling $930,303. While, for the period ended June 30, 2015, we incurred total operating expenses in the amount of $305,922, which was composed of selling expenses of $1,724 and general and administrative expenses totaling $304,198. Despite the decrease of $209, or 12% for the selling expenses, the increase of $626,105, or 206% for the administrative expenses, caused total operating expenses to increase by $625,896, or 205%.

Liquidity and Capital Resources

As of June 30, 2016, we had a cash balance of $210,825. During the period ended June 30, 2016, net cash used in operating activities totaled $361,516. Net cash used in investing activities totaled $105,543. Net cash generated from financing activities during the period totaled $456,819. The resulting change in cash for the period was a decrease of $92,969, which was primarily due to cash used in inventories, commission payables, income tax payable, and purchase of property, plant and equipment.

 As of June 30, 2016, we had current liabilities of $2,084,777, which was composed of other payable of $1,031,916, account payable of $2,109, commission payables of $351,969, amount due to a director of $24,845, tax payable of $8,865 and amount due to a related party of $665,074.

As of December 31, 2015, we had current liabilities of $1,523,484, which was composed of amounts due to a related party of $233,100, commission payables of $537,655, tax payable of $17,586 and accruals and other payables of $735,143.

We had net liabilities of $1,600,509 and $1,039,331 as of June 30, 2016 and December 31, 2015, respectively.

19

The Company has incurred losses since its inception resulting in an accumulated deficit of $2,219,975 as of June 30, 2016, and further losses are anticipated in the development of its business raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. Our future financial results are also uncertain due to a number of factors, some of which are outside our control. These risk factors include, but are not limited to:

• our ability to raise additional funding;

• the results of our proposed operations.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements including arrangements that would affect our liquidity, capital resources, market risk support and credit risk support or other benefits.

Critical Accounting Policies and Estimates

The preparation of our condensed consolidated financial statements in conformity with generally accepted accounting principles in the United States, or GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes to the financial statements. Some of those judgments can be subjective and complex, and therefore, actual results could differ materially from those estimates under different assumptions or conditions. There are no material changes from the critical accounting policies set forth in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our December 31, 2015 financial statements included in our Amendment No. 1 to our Current Report on Form 8-K filed with the Securities and Exchange Commissionon April 13, 2016.

20

Off-Balance Sheet Arrangements

None

Contractual Obligations

Not applicable.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that material information required to be disclosed in our periodic reports filed under the Securities Exchange Act of 1934, as amended, or 1934 Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and to ensure that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer as appropriate, to allow timely decisions regarding required disclosure. At the end of the quarter ended June 30, 2016 we carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and the principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13(a)-15(e) and Rule 15d-15(e) under the 1934 Act. Based on this evaluation, management concluded that as of June 30, 2016 our disclosure controls and procedures were effective.

Limitations on Effectiveness of Controls and Procedures

Our management, including our Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), does not expect that our disclosure controls and procedures will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include, but are not limited to, the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

21

Changes in Internal Controls

During the fiscal quarter ended June 30, 2016, there have been no changes in our internal control over financial reporting that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We may be a party in legal proceedings arising in the ordinary course of business. We are currently not a party to any material legal proceedings or government actions, including any bankruptcy, receivership, or similar proceedings. In addition, we are not aware of any known litigation or liabilities involving the operators of our properties that could affect our operations. Furthermore, as of the date of this Quarterly Report, our management is not aware of any proceedings to which any of our directors, officers, or affiliates, or any associate of any such director, officer, affiliate, or security holder is a party adverse to the Company or has a material interest adverse to us.

ITEM 1A. RISK FACTORS

Not applicable.

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

Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

On August 15, 2016, Vitaxel Group Limited (the “Company”) entered into a License Agreement (the “Agreement”) with Vitaxel Corp Ltd, a limited liability entity and incorporated in Thailand (“Licensee”).

Pursuant to the Agreement, the Company granted Licensee an exclusive, non-transferable, revocable license to use the Company’s trademarks, brands, logos or service marks to market and operate the Company’s business and commercialize the Company’s online shopping and service platforms, including but not limited to the Company’s online shopping mall known as “Vionmall”, in Thailand (the “License”). The term of the Agreement is three (3) years with a possibility of renewal for another three (3) years. The Company and or its subsidiaries will have the right of first refusal to acquire the Licensee if shareholders of Licensee decided to dispose its assets or company.

Licensee is in charge of all initial costs of setting up the Company’s business in Taiwan. Licensee shall pay the Company a revenue share of 70% of the net profits for every three (3) month period (“Royalties”). Each Royalty payment is due on the tenth day of every fourth months and shall be paid in US Dollars and accompanied by a report of calculation of the net profits.

The Company does not have any material relationship with Licensee other than the Agreement. 

22

ITEM 6. EXHIBITS

The following exhibits are filed with this Quarterly Report on Form 10-Q (numbered in accordance with Item 601 of Regulation S-K):

Exhibit Number	Description of Exhibit
31.1	Certification of Principal Executive Officer and Pursuant to Rule 13a-14
31.2	Certification of Principal Financial Officer Pursuant to Rule 13a-14
32.1*	CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
32.2*	CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

* The certifications attached as Exhibits 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q,are deemed furnished and notfiled with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Vitaxel Group Limited under the Securities Act of 1933, as amended, or the Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.

23

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	VITAXEL GROUP LIMITED
August 15, 2016	By:	/s/ Leong Yee Ming
	Leong Yee Ming, Chief Executive Officer (Principal Executive Officer)
	VITAXEL GROUP LIMITED
August 15, 2016	By:	/s/ Lee Wei Boon
	Lee Wei Boon, Chief Financial Officer (Principal Financial Officer)

24

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE AND FINANCIAL OFFICER 

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Leong Yee Ming, certify that:

1.          I have reviewed this quarterly report on Form 10-Q of Vitaxel Group Limited

2.          Based on my knowledge, the quarterly report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.          Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of and for the periods presented in this report;

4.          The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)          Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)          Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)          Evaluated the effectiveness of the registrant’s disclosure controls and procedures; and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)          Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.          The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

(a)          All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)          any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls.

Date:  August 15, 2016	/s/ Leong Yee Ming
	Leong Yee Ming, Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL EXECUTIVE AND FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Lee Wei Boon, certify that:

1.          I have reviewed this quarterly report on Form 10-Q of Vitaxel Group Limited

2.          Based on my knowledge, the quarterly report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3           Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of and for the periods presented in this report;

4.          The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)          Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)          Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)          Evaluated the effectiveness of the registrant’s disclosure controls and procedures; and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)          Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.          The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

(a)          All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)          Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls.

Date:  August 15, 2016	/s/  Lee Wei Boon
	Lee Wei Boon, Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Vitaxel Group Limited. (the “Company”) on Form 10-Q for the quarter ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I ,Leong Yee Ming, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)         The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)         The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Date:  August 15, 2016	/s/ Leong Yee Ming
	Leong Yee Ming,  Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Vitaxel Group Limited. (the “Company”) on Form 10-Q for the quarter ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lee Wei Boon, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)         The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)         The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Date:  August 15, 2016	/s/ Lee Wei Boon
	Lee Wei Boon, Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 10, 2016
Document And Entity Information
Entity Registrant Name	Vitaxel Group Ltd
Entity Central Index Key	0001623590
Document Type	10-Q
Trading Symbol	VXEL
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,098,725,000
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2016

XML

CONSOLILDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 210,825	$ 303,794
Prepayment		12,308
Deferred tax asset	8,124
Inventories	33,060	9,870
Other receivables and other assets	31,875	53,324
Total Current Assets	283,884	379,296
NON-CURRENT ASSETS
Property, plant and equipment, net	208,509	104,857
Total Non-Current Assets	208,509	104,857
TOTAL ASSETS	492,393	484,153
CURRENT LIABILITIES
Amounts due to a related party	665,074	233,100
Amounts due to a director	24,845
Commission payables	351,969	537,655
Accounts payable	2,109
Accruals and other payables	1,031,916	735,143
Tax payable	8,865	17,586
Total Current Liabilities	2,084,777	1,523,484
NON-CURRENT LIABILITY
Deferred tax liability	8,124
TOTAL LIABILITIES	2,092,902	1,523,484
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Common stock par value $0.000001: 7,000,000,000 shares authorized; 5,098,725,000 and 3,999,000,000 shares issued and outstanding, respectively	5,099	3,999
Additional paid-in capital	509,348	510,448
Accumulated deficit	(2,219,975)	(1,733,633)
Accumulated other comprehensive income	105,019	179,855
Total Stockholders' Equity	(1,600,509)	(1,039,331)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 492,393	$ 484,153

XML

CONSOLILDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock par value (in dollars per share)	$ 0.000001	$ 0.000001
Common stock authorized	7,000,000,000	7,000,000,000
Common stock issued	5,098,725,000	3,999,000,000
Common stock outstanding	5,098,725,000	3,999,000,000

XML

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
REVENUE	$ 435,030	$ 552,779	$ 1,294,912	$ 1,087,696
COST OF REVENUE	(356,221)	(497,980)	(911,309)	(918,310)
GROSS PROFIT	78,809	54,799	383,603	169,386
OPERATING EXPENSES
Selling expense	(648)		(1,515)	(1,724)
General and administrative expenses	(572,549)	(194,731)	(930,303)	(304,198)
Total Operating Expenses	(573,197)	(194,731)	(931,818)	(305,922)
(LOSS)/INCOME FROM OPERATIONS	(494,388)	(139,932)	(548,215)	(136,536)
OTHER INCOME/(EXPENSE), NET
Other Income	14,879		71,629	38
Other Expense	(9,443)	(86,066)	(9,756)	(86,991)
Total Other Income / (Expense), net	5,436	(86,066)	61,873	(86,953)
NET LOSS BEFORE TAXES	(488,952)	(225,998)	(486,342)	(223,489)
Income tax expense
Net loss	(488,952)	(225,998)	(486,342)	(223,489)
OTHER COMPREHENSIVE INCOME/(LOSS)
Foreign currency translation adjustment	31,577		(74,248)
TOTAL COMPREHENSIVE LOSS	$ (457,375)	$ (225,998)	$ (560,590)	$ (223,489)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (486,342)	$ (223,489)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation - property, plant and equipment	9,784	1,894
Prepayment	12,308	518,048
Other receivables and other assets	21,449	14,097
Deferred tax asset	(8,124)
Inventories	(23,190)	10,605
Trade creditor	2,109
Commission payables	(185,686)
Other payables and accrued expenses	296,773
GST on payment		(90)
Deferred tax liability	8,124
Tax payable	(8,721)	10,732
Net cash (used in) provided by operating activities	(361,516)	331,797
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(105,543)	(19,734)
Net cash used in investing activities	(105,543)	(19,734)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from directors	24,845
(Decrease) in amount due to holding company		(54,785)
Proceeds from related parties	431,974
Net cash provided by (used in) financing activities	456,819	(54,785)
EFFECT OF EXCHANGE RATES ON CASH	(82,728)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(92,969)	257,278
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	303,794	28,056
CASH AND CASH EQUIVALENTS AT END OF YEAR	210,825	285,334
SUPPLEMENTAL OF CASH FLOW INFORMATION
Cash paid for interest expenses
Cash paid for income tax

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ORGANIZATION AND BUSINESS

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND BUSINESS

1. ORGANIZATION AND BUSINESS

Vitaxel Group Limited (formerly Albero, Corp., the “Company”), incorporated in Nevada, is engaged in direct selling industry and online shopping platform primarily through its operating entities in Malaysia.

Vitaxel SDN BHD ("Vitaxel"), was incorporated in Malaysia on August 10, 2012. The Company is primarily engaged in the direct selling industry utilizing a multi-level marketing model with an emphasis on travel, entertainment and lifestyle products and services.

Vitaxel Online Mall SBN BHD ("Vionmall"), was incorporated in Malaysia on September 22, 2015. The Company is primarily in developing online shopping platforms geared to Vitaxel and its members and the third party suppliers of products and services.

Vitaxel Singapore PTE. Ltd. (“Vitaxel Singapore”) was incorporated in Singapore on February 16, 2016.

REVERSE ACQUISITION

On January 18, 2016, the Company completed and closed a share exchange (the “Share Exchange”) under a Share Exchange Agreement (the “Share Exchange Agreement”) of the same date among us, Vitaxel SDN BHD, a Malaysian corporation (“Vitaxel”), the shareholders of Vitaxel, Vitaxel Online Mall SBN BHD, a Malaysian corporation (“Vionmall”) and the shareholders of Vionmall pursuant to which Vitaxel and Vionmall each became wholly owned subsidiaries of ours. In the Share Exchange, all of the outstanding shares of Vitaxel and Vionmall were converted into shares of our Common Stock, as described in more detail below.

In connection with the Share Exchange and pursuant to the Split-Off Agreement, we transferred our pre-Share Exchange assets and liabilities to our pre-Share Exchange majority stockholder, in exchange for the surrender by him and cancellation of 3,000,000 shares of our Common Stock

As a result of the Share Exchange and Split-Off, we discontinued our pre-Share Exchange business and acquired the businesses of Vitaxel and Vionmall, and will continue the existing business operations of Vitaxel and Vionmall as a publicly-traded company under the name Vitaxel Group Limited.

In accordance with “reverse acquisition” accounting treatment, our historical financial statements as of period ends, and for periods ended, prior to the acquisition will be replaced with the historical financial statements of Vitaxel and Vionmall prior to the Share Exchange in all future filings with the SEC.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information article 10 of Regulation S-X.

This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars.

Fiscal year end is December 31.

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Foreign currency translation and transactions

The functional currency of the Company is the Malaysian Ringgit (“MYR”) and reporting currency of the Company is United States Dollar “USD”). The financial statements of the Company are translated into USD using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders' equity.

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased.

Accounts receivable

Accounts receivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Company generally does not require collateral from its customers. For the period ended June 30, 2016 and for the year ended December 31, 2015, the Company did not write off any accounts receivable as bad debts.

Fair value of financial instruments

FASB ASC 820, “Fair Value Measurement,” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy:

Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.

Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of June 30, 2016 and December 31, 2015, none of the Company’s assets and liabilities was required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values due to the short term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

Inventories

Inventories are stated at lower of cost or market, with cost determined on a weighted-average method, and not to exceed net realizable value. The Company writes down its inventory balances for obsolete amounts estimated on an individual basis for the finished goods and the raw material items with large amounts, and by a category basis for low value raw material items.

Property, plant and equipment, net

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives:

Office equipment	10 years
Furniture and fixtures	10 years
Leasehold improvement	10 years

Revenue recognition

Product sales − The Company generally recognizes revenue upon delivery and when both the title and risk and rewards pass to the independent members or purchasers of the products. Product sales are recognized net of product returns, discounts and taxes. A reserve for product returns is accrued based on historical experience. There was no deferred revenue accrued as of June 30, 2016 and December 31, 2015.

Membership fee − The Company recognizes the membership fee revenue over the term of the membership, which is 12 months. The revenue will not be recognized until the 10 days cooling-off period is expired. For the period ended June 30, 2016 and for the year ended December 31, 2015, all membership feeswere waived by the Company for promotion purpose.

Loyalty program

The Company operates loyalty program which allows customer to accumulate redemption points when they purchase products from the Company. The redemption points can be used to purchase a selection of products at discounted price or redeem products.

The Company allocates consideration received from the sale of goods to the goods sold and the redemption points issued that are expected to be redeemed.

The consideration allocated to the redemptions points issued is measured at fair value of the redemption points. It is recognized as a liability (deferred revenue) in the statement of financial position and recognized as revenue when the points are redeemed, have expired or are no longer expected to be redeemed. The amount of revenue recognized is based on the number of points that have been redeemed, relative to the number expected to redeem.

As of June 30, 2016 and December 31, 2015, there was no such deferred revenue recorded.

Income taxes

Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the combined financial statements.Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics.

The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. The Company did not recognize any income tax due to uncertain tax positions or incur any interest and penalties related to potential underpaid income tax expense as of June 30, 2016 and December 31, 2015.

Forward Stock split  

On January 27, 2016, our Board of Directors declared a 1333-for-1 forward stock split of our outstanding common stock, par value $0.000001 per share in the form of a dividend (the “Stock Split”) with a record date of February 8, 2016 (the “Record Date”). On February 22, 2016, Financial Industry Regulatory Authority, Inc. (“FINRA”) notified us of its announcement of the payment date of the Stock Split as February 23, 2016 (the “Payment Date”). On the Payment Date, as a result of the Stock split, each holder of our common stock as of the Record Date received 1332 additional shares of our common stock for each one share owned, rounded up to the nearest whole share. All common stock share amounts referenced in this Quarterly Report give retroactive effect to the Stock Split.

Comprehensive loss

Comprehensive loss includes net loss and cumulative foreign currency translation adjustments and is reported in the Combined Statement of Comprehensive Loss.

Loss per share

The loss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the period ended June 30, 2016 and for the year ended December 31, 2015, there was no dilutive effect due to net loss.

Recently issued accounting pronouncements

Financial instrument: In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. Accordingly, the standard is effective for us on September 1, 2018. We are currently evaluating the impact that the standard will have on our consolidated financial statements.

Leases: In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”), which provides guidance on lease amendments to the FASB AccountingStandard Codification. This ASU will be effective for us beginning in May 1, 2019. We are currently in the process of evaluating the impact of the adoption of ASU 2016-2on our consolidated financial statements.

The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations.

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GOING CONCERN

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

3. GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses since its inception resulting in an accumulated deficit of $2,219,975 as of June 30, 2016. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. These combined financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

The Company expects to finance operations primarily through cash flow from revenue and capital contributions from principal shareholders. In the event that we require additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, our principal shareholders have indicated the intent and ability to provide additional equity financing.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on our ability to meet obligations as they become due and to obtain additional equity or alternative financing required to fund operations until sufficient sources of recurring revenues can be generated. There can be no assurance that the Company will be successful in its plans described above or in attracting equity or alternative financing on acceptable terms, or if at all. The financial statements do not include any adjustments that might result from the outcome of this- uncertainty.

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OTHER RECEIVABLES AND OTHER ASSETS

6 Months Ended

Jun. 30, 2016

Other Receivables And Other Assets

OTHER RECEIVABLES AND OTHER ASSETS

4. OTHER RECEIVABLES AND OTHER ASSETS

Other receivables and other assets consist of the following:

	As of  June 30, 2016		As of  December 31, 2015
Deposits (1)	$	28,063	$	45,830
Others (2)		3,812		7,494
	$	31,875	$	53,324

(1)         Deposits represented payments for rental, utilities, and construction funds to government department.

(2)         Others mainly consists other miscellaneous payments.

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PROPERTY, PLANT AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment, Net [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

5. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consist of the following:

	As of  June 30, 2016			As of  December 31, 2015
Office equipment	$	33,346		$	19,160
Computer equipment		50,649			29,945
Furniture and fittings		7,632			12,238
Electrical & fitting		376			-
Motor vehicle		17,063			-
Software and website		4,850			-
Renovations		111,609			50,166
		225,525			111,509
Less: Accumulated depreciation		(17,016	)		(6,652	)
Balance at end of period/year	$	208,509		$	104,857

Depreciation expenses charged to the statements of operations for the period ended June 30, 2016 and December 31, 2015 were $9,784 and $1,984 respectively.

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ACCRUALS AND OTHER PAYABLES

6 Months Ended

Jun. 30, 2016

Payables and Accruals [Abstract]

ACCRUALS AND OTHER PAYABLES

6. ACCRUALS AND OTHER PAYABLES

Accruals and other payables consist of the following:

	As of June 30, 2016		As of December 31, 2015
Provisions	$	942,157	$	594,492
Others		89,759		140,651
Balance at end of period/year	$	1,031,916	$	735,143

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AMOUNT DUE TO A DIRECTOR

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

AMOUNT DUE TO A DIRECTOR

7. AMOUNT DUE TO A DIRECTOR

	As of June 30, 2016		As of  December 31, 2015
Amounts due to a director
Lim Chun Hoo	$	24,845	$	-

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RELATED PARTIES TRANSCTIONS

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

RELATED PARTIES TRANSCTIONS

8. RELATED PARTIES TRANSCTIONS

As of June 30, 2016 and December 31, 2015, the amount of due to a related party, Ho Wah Genting Group SdnBhd, was $458,027 and $557,406 respectively. In addition, the amount to Dato’ Lim Hui Boon was $198,758 and 99,379 respectively as of June 30,2016 and December 31, 2015..

The Company recognized an expense of $24,649 pertaining to a forfeited deposit for a group air ticket during the six months ended June 30, 2016, which was paid to its affiliate, Ho WahGenting Holiday Sdn. Bhd..

The Company recognized an expense of $104,785 pertaining to a forfeited deposit for a group air ticket during the year ended 31 December 2015, which was paid to its affiliate, Ho WahGenting Holiday Sdn. Bhd.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

9. COMMITMENTS AND CONTINGENCIES

Capital Commitments

The Company engaged a third party to develop an operation software with the total contract amount of $48,069. As of June 30, 2016 and December 31, 2015, Company has no capital commitments.

Operation Commitments

The total future minimum lease payments under the non-cancellable operating lease with respect to the office and the dormitory, as well as hardware trading platform as of June 30, 2016 are payable as follows:

Year ending December 31, 2016		49,150
Year ending December 31, 2017		90,810
Year ending December 31, 2018		22,122
Total	$	162,082

Rental expense of the Company was $62,722 and $4,260 for the period ended June 30, 2016 and 2015, respectively.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of presentation

Basis of presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information article 10 of Regulation S-X.

This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred. The Company’s financial statements are expressed in U.S. dollars.

Fiscal year end is December 31.

Use of estimates

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Foreign currency translation and transactions

Foreign currency translation and transactions

The functional currency of the Company is the Malaysian Ringgit (“MYR”) and reporting currency of the Company is United States Dollar “USD”). The financial statements of the Company are translated into USD using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders' equity.

Cash and cash equivalents

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and highly liquid investments, which are unrestricted from withdrawal or use, and which have original maturities of three months or less when purchased.

Accounts receivable

Accounts receivable

Accounts receivable are recognized and carried at original invoiced amount less an allowance for any potential uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. The Company generally does not require collateral from its customers. For the period ended June 30, 2016 and for the year ended December 31, 2015, the Company did not write off any accounts receivable as bad debts.

Fair value of financial instruments

Fair value of financial instruments

FASB ASC 820, “Fair Value Measurement,” specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs). In accordance with ASC 820, the following summarizes the fair value hierarchy:

Level 1 Inputs – Unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.

Level 2 Inputs – Inputs other than the quoted prices in active markets that are observable either directly or indirectly.

Level 3 Inputs – Inputs based on prices or valuation techniques that are both unobservable and significant to the overall fair value measurements.

ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. As of June 30, 2016 and December 31, 2015, none of the Company’s assets and liabilities was required to be reported at fair value on a recurring basis. Carrying values of non-derivative financial instruments, including cash, accounts receivables, payables and accrued liabilities, approximate their fair values due to the short term nature of these financial instruments. There were no changes in methods or assumptions during the periods presented.

Inventories

Inventories

Inventories are stated at lower of cost or market, with cost determined on a weighted-average method, and not to exceed net realizable value. The Company writes down its inventory balances for obsolete amounts estimated on an individual basis for the finished goods and the raw material items with large amounts, and by a category basis for low value raw material items.

Property, plant and equipment, net

Property, plant and equipment, net

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives:

Office equipment	10 years
Furniture and fixtures	10 years
Leasehold improvement	10 years

Revenue recognition

Revenue recognition

Product sales − The Company generally recognizes revenue upon delivery and when both the title and risk and rewards pass to the independent members or purchasers of the products. Product sales are recognized net of product returns, discounts and taxes. A reserve for product returns is accrued based on historical experience. There was no deferred revenue accrued as of June 30, 2016 and December 31, 2015.

Membership fee − The Company recognizes the membership fee revenue over the term of the membership, which is 12 months. The revenue will not be recognized until the 10 days cooling-off period is expired. For the period ended June 30, 2016 and for the year ended December 31, 2015, all membership feeswere waived by the Company for promotion purpose.

Loyalty program

Loyalty program

The Company operates loyalty program which allows customer to accumulate redemption points when they purchase products from the Company. The redemption points can be used to purchase a selection of products at discounted price or redeem products.

The Company allocates consideration received from the sale of goods to the goods sold and the redemption points issued that are expected to be redeemed.

The consideration allocated to the redemptions points issued is measured at fair value of the redemption points. It is recognized as a liability (deferred revenue) in the statement of financial position and recognized as revenue when the points are redeemed, have expired or are no longer expected to be redeemed. The amount of revenue recognized is based on the number of points that have been redeemed, relative to the number expected to redeem.

As of June 30, 2016 and December 31, 2015, there was no such deferred revenue recorded.

Income taxes

Income taxes

Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the combined financial statements.Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics.

The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes are classified as a component of the provisions for income taxes. The Company did not recognize any income tax due to uncertain tax positions or incur any interest and penalties related to potential underpaid income tax expense as of June 30, 2016 and December 31, 2015.

Forward Stock split

Forward Stock split  

On January 27, 2016, our Board of Directors declared a 1333-for-1 forward stock split of our outstanding common stock, par value $0.000001 per share in the form of a dividend (the “Stock Split”) with a record date of February 8, 2016 (the “Record Date”). On February 22, 2016, Financial Industry Regulatory Authority, Inc. (“FINRA”) notified us of its announcement of the payment date of the Stock Split as February 23, 2016 (the “Payment Date”). On the Payment Date, as a result of the Stock split, each holder of our common stock as of the Record Date received 1332 additional shares of our common stock for each one share owned, rounded up to the nearest whole share. All common stock share amounts referenced in this Quarterly Report give retroactive effect to the Stock Split.

Comprehensive loss

Comprehensive loss

Comprehensive loss includes net loss and cumulative foreign currency translation adjustments and is reported in the Combined Statement of Comprehensive Loss.

Loss per share

Loss per share

The loss per share is computed using the weighted average number of shares outstanding during the fiscal years. For the period ended June 30, 2016 and for the year ended December 31, 2015, there was no dilutive effect due to net loss.

Recently issued accounting pronouncements

Recently issued accounting pronouncements

Financial instrument: In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. Accordingly, the standard is effective for us on September 1, 2018. We are currently evaluating the impact that the standard will have on our consolidated financial statements.

Leases: In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”), which provides guidance on lease amendments to the FASB AccountingStandard Codification. This ASU will be effective for us beginning in May 1, 2019. We are currently in the process of evaluating the impact of the adoption of ASU 2016-2on our consolidated financial statements.

The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Schedule of property, plant and equipment estimated useful lives

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives:

Office equipment	10 years
Furniture and fixtures	10 years
Leasehold improvement	10 years

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OTHER RECEIVABLES AND OTHER ASSETS (Tables)

6 Months Ended

Jun. 30, 2016

Other Receivables And Other Assets

Schedule of other receivables and other assets

Other receivables and other assets consist of the following:

	As of  June 30, 2016		As of  December 31, 2015
Deposits (1)	$	28,063	$	45,830
Others (2)		3,812		7,494
	$	31,875	$	53,324

(1)         Deposits represented payments for rental, utilities, and construction funds to government department.

(2)         Others mainly consists other miscellaneous payments.

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PROPERTY, PLANT AND EQUIPMENT, NET (Tables)

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment, Net [Abstract]

Schedule of property, plant and equipment, net

Property, plant and equipment, net consist of the following:

	As of  June 30, 2016			As of  December 31, 2015
Office equipment	$	33,346		$	19,160
Computer equipment		50,649			29,945
Furniture and fittings		7,632			12,238
Electrical & fitting		376			-
Motor vehicle		17,063			-
Software and website		4,850			-
Renovations		111,609			50,166
		225,525			111,509
Less: Accumulated depreciation		(17,016	)		(6,652	)
Balance at end of period/year	$	208,509		$	104,857

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ACCRUALS AND OTHER PAYABLES (Tables)

6 Months Ended

Jun. 30, 2016

Payables and Accruals [Abstract]

Schedule of accruals and other payables

Accruals and other payables consist of the following:

	As of June 30, 2016		As of December 31, 2015
Provisions	$	942,157	$	594,492
Others		89,759		140,651
Balance at end of period/year	$	1,031,916	$	735,143

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AMOUNT DUE TO A DIRECTOR (Tables)

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Schedule of due to director

	As of June 30, 2016		As of  December 31, 2015
Amounts due to a director
Lim Chun Hoo	$	24,845	$	-

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COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum lease payments under the non-cancellable operating lease

The total future minimum lease payments under the non-cancellable operating lease with respect to the office and the dormitory, as well as hardware trading platform as of June 30, 2016 are payable as follows:

Year ending December 31, 2016		49,150
Year ending December 31, 2017		90,810
Year ending December 31, 2018		22,122
Total	$	162,082

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ORGANIZATION AND BUSINESS (Details Narrative)	Jan. 18, 2016 shares
Share Exchange & Split-Off Agreement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Number of shares surrender and cancellation	3,000,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Jun. 30, 2016
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	P10Y
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	P10Y
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	P10Y

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - $ / shares

6 Months Ended

Jan. 27, 2016

Jan. 23, 2016

Jun. 30, 2016

Dec. 31, 2015

Accounting Policies [Abstract]

Description of uncertain income tax position

An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained.

Description of forward stock split ratio

1333-for-1 forward stock split

Common stock, par value (in dollars per share)

$ 0.000001

$ 0.000001

$ 0.000001

Number of shares issued upon forward stock split

1,332

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GOING CONCERN (Details Narrative) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ (2,219,975)	$ (1,733,633)

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OTHER RECEIVABLES AND OTHER ASSETS (Details) - USD ($)		Jun. 30, 2016	Dec. 31, 2015
Other Receivables And Other Assets
Deposits	[1]	$ 28,063	$ 45,830
Others	[2]	3,812	7,494
Total other receivables and other assets		$ 31,875	$ 53,324

[1] Deposits represented payments for rental, utilities, and construction funds to government department.

[2] Others mainly consists other miscellaneous payments.

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PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	$ 225,525	$ 111,509
Less: Accumulated depreciation	(17,016)	(6,652)
Balance at end of period/year	208,509	104,857
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	33,346	19,160
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	50,649	29,945
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	7,632	12,238
Electrical And Fitting [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	376
Motor Vehicle [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	17,063
Software And Website [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	4,850
Renovations [Member]
Property, Plant and Equipment [Line Items]
Balance at beginning of period/year	$ 111,609	$ 50,166

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PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Property, Plant and Equipment, Net [Abstract]
Depreciation expenses	$ 9,784	$ 1,894	$ 1,984

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ACCRUALS AND OTHER PAYABLES (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Provisions	$ 942,157	$ 594,492
Others	89,759	140,651
Balance at end of period/year	$ 1,031,916	$ 735,143

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AMOUNT DUE TO A DIRECTOR (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Amounts due to a director	$ 24,845
Mr. Lim Chun Hoo [Member]
Related Party Transaction [Line Items]
Amounts due to a director	$ 24,845

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RELATED PARTIES TRANSCTIONS (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Due to a related party	$ 665,074	$ 233,100
Ho Wah Genting Group Sdn Bhd [Member]
Related Party Transaction [Line Items]
Due to a related party	458,027	557,406
Dato Lim Hui Boon [Member]
Related Party Transaction [Line Items]
Due to a related party	198,758	99,379
Ho WahGenting Holiday Sdn. Bhd [Member]
Related Party Transaction [Line Items]
Forfeited deposit for a group air ticket expenses	$ 24,649	$ 104,785

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COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Year ending December 31, 2016	$ 49,150
Year ending December 31, 2017	90,810
Year ending December 31, 2018	22,122
Total	$ 162,082

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COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Rental expense	$ 62,722	$ 4,260
Third Party [Member]
Capital commitments	$ 48,069