8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 22, 2017

ADDENTAX GROUP CORP

(Exact Name of Registrant as Specified in Charter)

Nevada	333-206097	35-2521028
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

Floor 13th, Building 1, Block B, Zhihui Square,

Nanshan District, Shenzhen City, China 518000

(Address of principal executive offices and Zip Code)

+ (86) 755 86961 405

Registrant’s telephone number, including area code

(Former Name or Former Address

if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]    Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))

Table of Contents

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENT

EXPLANATORY NOTE

Item 2.01: Completion of Acquisition or Disposition of Assets

The Share Exchange and Related Transactions
Description of Business	6
Description of Properties	10
Risk Factors	10
Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Security Ownership of Certain Beneficial Owners and Management	26
Directors, Executive Officers, Promoters and Control Persons	27
Executive Compensation	31
Summary Compensation Table	32
Certain Relationships and Related Transactions	33
Market Price of and Dividends on Common Equity and Related Stockholder Matters	34
Description of Securities	35
Legal Proceedings	36
Indemnification of Directors and Officers	36

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Item 5.01 Changes in Control of Registrant

Item 5.06 Change in Shell Company Status

Item 9.01 Financial Statements and Exhibits

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Current Report contains forward-looking statements, including, without limitation, in the sections captioned “Description of Business,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Plan of Operations,” and elsewhere. Any and all statements contained in this Report that are not statements of historical fact may be deemed forward-looking statements. Terms such as “may,” “might,” “would,” “should,” “could,” “project,” “estimate,” “pro-forma,” “predict,” “potential,” “strategy,” “anticipate,” “attempt,” “develop,” “plan,” “help,” “believe,” “continue,” “intend,” “expect,” “future,” and terms of similar import (including the negative of any of the foregoing) may be intended to identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this Report may include, without limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives relating to the development of commercially viable pharmaceuticals, (ii) a projection of income (including income/loss), earnings (including earnings/loss) per share, capital expenditures, dividends, capital structure or other financial items, (iii) our future financial performance, including any such statement contained in a discussion and analysis of financial condition by management or in the results of operations included pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), and (iv) the assumptions underlying or relating to any statement described in points (i), (ii) or (iii) above.

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The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon our current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which we have no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, our inability to obtain adequate financing, the significant length of time associated with our platform development and related insufficient cash flows and resulting illiquidity, our inability to expand our business, significant government regulation of the securities industry, lack of product diversification, existing or increased competition, results of arbitration and litigation, stock volatility and illiquidity, and our failure to implement our business plans or strategies. A description of some of the risks and uncertainties that could cause our actual results to differ materially from those described by the forward-looking statements in this Report appears in the section captioned “Risk Factors” and elsewhere in this Report.

Readers are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. We disclaim any obligation to update the forward-looking statements contained in this Report to reflect any new information or future events or circumstances or otherwise.

Readers should read this Report in conjunction with the discussion under the caption “Risk Factors,” our financial statements and the related notes thereto in this Report, and other documents, which we may file from time to time with the SEC.

EXPLANATORY NOTE

Addentax Group Corp. was incorporated in the State of Nevada on October 28, 2014 and established a fiscal year-end of March 31. We are in the development stage and were incorporated to produce images on multiple surfaces, such as glass, leather, plastic, ceramic, textile, and others using a 3D sublimation vacuum heat transfer machine. Our business office is located at Floor 13th, Building 1, Block B, Zhihui Square, Nanshan District, Shenzhen City, China 518000. Our telephone number is +(86) 755 86961 405.

Effective December 28, 2016, Addentax Group Corp. (“ATXG” or the “Company”) disclosed via a Form 8-K that it had executed Sale & Purchase Agreement (“S&P”) for the acquisition of 100% of the shares and assets of Yingxi Industrial Chain Group Co., Ltd., (YICG”) a company incorporated under the laws of the Republic of Seychelles. ATXG agreed to issue five hundred million (500,000,000) shares of ATXG to Yingxi Industrial Chain Group Co., Ltd. to acquire the shares and assets for a cost of US$0.30 per share or a total cost of US$150,000,000. However, effective March 6, 2017, due to the death of Mr. Wu Linrui who served in the position of President, Secretary, Treasurer and as a Director during the execution of the above noted S&P Agreement, both parties to the Agreement have consented to revise those portions of the S&P Agreement related to the signatories to the Agreement. Other than changes to the signatories or items related to the signatories, no changes have been made to the terms of the Agreement.

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For financial reporting purposes, the Agreement represents a “reverse merger”, and YICG is deemed to be the accounting acquirer in the transaction. The Agreement is being accounted for as a reverse-merger and recapitalization. YICG is the acquirer for financial reporting purposes, and ATXG is the acquired company. Consequently, the assets and liabilities and the operations that will be reflected in the historical financial statements prior to the Agreement will be those of YICG, and will be recorded at the historical cost basis of YICG. The consolidated financial statements after completion of the Agreement will include the assets and liabilities of the Company and YICG, and the historical operations of YICG and operations of the combined company from the closing date of the Agreement.

Item 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS

The Sale and Purchase Agreement and Related Transactions:

Hong Zhida is the president, secretary and a director of Addentax Group Corp.(ATXG). On December 28, 2016 ATXG executed Sale & Purchase Agreement (“S&P”) for the acquisition of 100% of the shares and assets of Yingxi Industrial Chain Group Co., Ltd., (YICG”) a company incorporated under the laws of the Republic of Seychelles. ATXG agreed to issue five hundred million (500,000,000) shares of ATXG to Yingxi Industrial Chain Group Co., Ltd. to acquire the shares and assets for a cost of US$0.30 per share or a total cost of US$150,000,000. However, effective March 6, 2017, due to the death of Mr. Wu Linrui who served in the position of President, Secretary, Treasurer and as a Director during the execution of the above noted S&P Agreement, both parties to the Agreement consented to revise those portions of the S&P Agreement related to the signatories to the Agreement. Other than changes to the signatories or items related to the signatories, no changes have been made to the terms of the Agreement. No third parties, brokers or agents played any role in arranging or facilitating the transactions and no benefits of any description were given to any third parties.

Execution of the Agreement was the first stage of the planned acquisition. Pursuant to the Agreement, closing was to occur on September 25th, 2017. Closing was contingent upon an audit of the shares and assets. All shares issued pursuant to the Agreement were held in escrow and deemed to be in the full control of the Company until the closing.

As of both the parties have now satisfied all of the closing conditions and we completed the terms of the Agreement. With the filing of this report, the closing is now considered completed, and all shares issued pursuant to the Agreement have been delivered. This constituted a change of control and reverse merger.

As a result of the closing, the Company has terminated its previous business plan, and we are now pursuing the historical business of Yingxi Industrial Chain Group Co., Ltd., an international industry chain service provider specializing in textile & garments industry.

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Identity of the Persons Acquiring Control

Hengtian Group Co., Ltd.	89,650,412 Common Shares	17.69	%
Beneficial Owner: Ma Huizhu
Second Floor
The Quadrant Manglier Street,
Victoria, Mahe, Seychelles

Hui Lian Group Ltd.	157,719,300 Common Shares	31.11	%
Beneficial Owner:
Ma Huijun
The Quadrant Manglier Street,
Victoria, Mahe, Seychelles

Hong Zhida	30,159,000 Common Shares	5.95	%
Floor 13, Building 1, Block B, Zhihui Square,
Nanshan District, Shenzhen, China 518000

Zeng Shufang	42,000,000 Common Shares	8.29	%
No. 2, Second Lane, Rentien Village
Fuyong Town, Baoan Baoan District,
Guangdong Province, China

This constituted a change of control of the Company.

Form 10 Information

Prior to the closing of the Agreement, the Company had nominal operations. We were deemed a “shell company,” as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended and the rules and regulations promulgated thereunder (“Exchange Act”), and are filing in light of the lack of operations prior to the completion of the Agreement. With the resulting change in our business, we are voluntarily providing the information as is required pursuant to Item 2.01(f) of Form 8-K as if we were filing a general form for registration of securities on Form 10 under the Exchange Act for our common stock, which is the only class of our securities subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act upon consummation of the Agreement.

Description of Business

Addentax Group Corp. was incorporated in the State of Nevada on October 28, 2014. were originally incorporated to produce images on multiple surfaces, such as glass, leather, plastic, ceramic, textile, and others using a 3D sublimation vacuum heat transfer machine. We no longer pursue opportunities related to 3D printing positioning.

We have a fiscal year-end of March 31. The business office is located at Floor 13^th, Building 1, Block B, Zhihui Square, Nanshan District, Shenzhen City, China 518000. Our telephone number is +(86) 755 8696 1405.

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Current Business

Effective December 28, 2016 Addentax Group Corp. (“ATXG” or the “Company”) has executed a Sale & Purchase Agreement (“S&P”) for the acquisition of 100% of the shares and assets of Yingxi Industrial Chain Group Co., Ltd., a company incorporated under the laws of the Republic of Seychelles. Yingxi Industrial Chain Group Co., Ltd. is an international industry supply chain service specialized in the textile & garments industry. We plan to assist clients to open textile and garment sales outlets throughout China. The company will also provide assistance services in plan implementation. Pursuant to the Agreement, the Company agreed to issue five hundred million (500,000,000) restricted common shares of the company to the owners of Yingxi Industrial Chain Group Co., Ltd.

Currently, our business model is in the infancy stage. However, we already have over 30 potential clients that seek our services. All the clients are located in China.

To guarantee the quality of our business, we conduct strict rules for our potential clients.

Client Qualifications: To sign the servicing contract with ATXG, a potential client must:

1.	Be established and validly existing pursuant to relevant laws and regulations;
2.	Demonstrate that they have a good business reputation and operating performance, and comply with professional ethics;
3.	Have not breached any law or regulation, or have received any administrative penalty from a regulatory body or other department in the past twenty-four months;

Our industry chain service refers to companies meeting the requirement for development and inclusion as a supply chain outlet. Medium and small-sized enterprises all over the world can search for our service, but our current focus is on helping clients in China.

Many medium-small sized enterprises in China experience the problem of business maintenance or expansion in the textile and garments industry where increasing operational costs cause decreasing profit. Most seek to employ new business models that can increase a company’s competitive advantage and bring a powerful sales engine to the company. With possible limitation of resources and information, management of these enterprises find it hard to design a suitable plan for their company’s sustainable development.

To assist these enterprises, we set up a research team to carry out extensive investigation and integrate necessary industry information and resources which can help us to work out the best plan for our clients.

The research will include:

1.	Client diligence: To collect the details of the client including its financial reports, management, planned business model, internal system, operation flows and other important information;
2.	Relevant business partner research: Focus on the raw material supplier and product buyer, conduct comprehensive analysis;
3.	Market research: To discover the actual market demands and market shares;
4.	Environment research: Research and analyze the environment of policy, economy, technology and legal;

We developed a multi-task Industrial Chain Service System which we call “Adden Chain” not only for providing business solutions to clients, but also assisting the clients to fully realize their business plan and potential.

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Our company’s service can be divided into three parts:

Consulting & Plan Design

There are four main services within this part:

Promotion Service

We will design a “Promotion Plan” for our clients depending on their requirements to improve their marketing plans.

Operation Assistance Service

We can help the clients to sort out all the individual parts (i.e.: Raw Materials Supply, Manufacturing, Product Design, Marketing) within the whole operation chain, and assist them to fix weaknesses. We can also help the clients to reallocate the resources they own and improve their operational efficiency.

Logistics and International Trading Service

We developed and applied our “YX logistics system” to improve our client’s transportation efficiency. Our YX logistics system mainly provides three services to our clients: transportation service; storage & distribution service; bulk purchasing service.

We also work with qualified international trading companies to help expand clients’ global market shares. Currently we already built the trading routes to various areas like America, Australia and Africa which can help clients lower the international trading costs.

Financial Services

We will offer financial services to the selected clients. The services including long term & short term loans, financing services and inventory pledge services. Also, we plan to build a third part payment center which can improve clients’ capital turnover. Clients can employ the third part payment center to process the transaction should accept the payment terms and payment period we set. As the third part guarantee, we could help our clients to pay or receive t payments on time.

Plan implementation Assistance:

We have already built strategic cooperative relationships with over 40 textile and garments industry related entities that can provide us enriched resources. With the advantage in resources and information, we are available to assist our clients to deal with various issues and problems before and after the implementation of their respective outlets.

Additional Services

Team Establishment:

In accordance with the conditions of the clients, we will assist the clients to establish an organizational structure and a management team best suited for their business plan.

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Headhunting” Services:

We work with headhunting companies, i.e. companies that provide employment or recruiting services to find the most qualified managers and professionals to meet the specific needs of our clients.

Follow-up Service:

We provide clients with continuous consultancy and following-up services throughout the entire startup and service period.

Markets

Currently, our market will focus on small and medium-sized enterprises in China who have business expansion plans.

Seasonality

The nature of our products and services does not appear to be affected by seasonal variations.

Government Regulations

Currently there are no government regulations regarding our type of services in China. The Chinese government encourages the small-medium sized traditional industry companies to conduct business model transformation and technology updates, which may help companies gain more competitive advantages in international market.

Other than the required adherence to general business laws and regulatory disclosure, our services do not appear to be affected by any specific additional Chinese government regulations. However, this does not preclude the possibility that China will institute regulations that will make it difficult or impossible for us to operate successfully, if at all, in China, and we would have to focus our business on companies located outside China.

Intellectual Property

We do not have any intellectual property currently. We are in the process of registering high-tech industry based on our new business model. We expect to receive approval of our registration in China by the end of 2017.

Research & Development

Currently, we have no expenses for Research and Development. We plan to spend 10% of our profits to develop our multi-task industrial chain service system.

Environmental Matters

Our operations are not subject to environmental laws, including any laws addressing air and water pollution and management of hazardous substances and wastes and we do not anticipate capital expenditures for environmental control facilities.

Employees

As of July 17, 2017, we have 6 full-time employees, of which 1 is in the administrative department, 2 in the consultancy service department, 2 in the research & analysis department and 1 in the technological department. We will employ qualified staff from time to time to meet our development needs.

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Properties

Our principal place of business is located at Floor 13^th, Building 1, Block B, Zhihui Square, Nanshan District, Shenzhen City, China 518000 and the telephone number is +(86) 755 8696 1405. Our president, Mr. Hong Zhida, supplies our office space and telephone at no costs to us.

Additional Information

We are required to file quarterly, annual and current reports. The Company files its reports electronically with SEC. The SEC maintains an Internet site that contains reports, proxy and information statements, and other electronic information regarding issuers that file electronically with the SEC at http://www.sec.gov.

Historical Background

Change in Authorized Capital

On December 24, 2016, the Board of Director approved an amendment to our Articles of Incorporation to increase our authorized capital from 150,000,000 common shares to 1,000,000,000 common shares. A majority of the holders of our common stock consented to the amendment to our Article of Incorporation. On December 27, 2016, we filed our Certificate of Amendment to Articles of Incorporation with the state of Nevada.

Change in Directors & Officers

Effective December 28, 2016, ATXG accepted the resignation of Mr. Yu Keying from the position of President, Secretary and Treasurer. He will remain on the Board as a director. Effective December 28, 2016, the company announced the appointment of Mr. Wu Linrui, to the Board of Directors in the position of President Secretary, Treasurer and as a Director.

Effective February 8, 2017, the company reported the death of Mr. Wu Linrui who served in the position of President, Secretary, Treasurer and as a Director. Mr Yu Keying, who served as a director, replaced Mr. Wu Linrui in the position of President, Secretary and Treasurer.

Effective March 10, 2017, management of ATXG will affected the appointment of Mr. Hong Zhida to replace Mr. Yu Keying in the positions of President, Secretary, Chief Executive Officer and Treasurer. Mr. Yu Keying will remain as a Director of ATXG.

In the future, we are plan to raise funds through the registered offering of our equity stock. If we are unable to secure adequate capital to continue our business, our shareholders may lose some or all of their investment.

Our officers and directors continue to provide their labor at no charge. We plan to hire up to 10 additional staff members during the next 12 months of operation.

RISK FACTORS

We believe that there are certain risks involved in our operations, many of which are beyond our control. These risks can be categorized into (i) risks associated with our company; (ii) general risks associated with business operations in China; (iii) dependence on our current officers; and (iv) risks associated with our common stock. Additional risks and uncertainties presently not known to us or not expressed or implied below, or that we currently deem immaterial could also harm our business, financial condition, and operational results. You should consider our business and prospects in light of the challenges we face, including the ones discussed in this section.

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Risks Associated with Our Company

Our independent auditors have issued an audit opinion for our company, which includes a statement describing our going concern status. Our financial status creates a doubt whether we will be able to continue as a going concern.

Our auditors have issued a going concern opinion regarding our company. This means there is substantial doubt we can continue as an ongoing business for the next twelve months. The financial statements do not include any adjustments that might result from the uncertainty regarding our ability to continue in business. As such we may have to cease operations and investors could lose part or all of their investment in our company.

As our business represents a new experiment in the garments & textiles industry and there is no comparable competitor, it is difficult to determine if the model can be successfully implemented.

Our company focuses on the garments & textiles industry, providing consulting services and solutions intended to transform client companies. We have already built cooperative relationships with more than 40 companies. We are also building a research & investigation team to assist us in devising the most suitable development plans for our clients. This is a new, experimental business model in China, but we are confident that the market demand for transformation assistance services is high, especially with medium-small sized entities. At this time, there is no comparable company that could provide relevant market performance data that would be relevant in forecasting our success. We cannot yet predict whether or not we will be able to satisfy our clients’ needs and effectively implement our business model.

Research & development expenses are high and we will not generate profits immediately.

In order to increase the clients’ competitive advantage and provide them with a powerful platform, our company will need to employ a professional staff that can provide excellent service for our clients. This requires the company to invest heavily in developing a research team and establishing a sustainable service operation. However, it will take time to effectively develop the client businesses that are utilizing our service. This means that, even after a large initial investment, it is unlikely that we will begin realizing substantial profits immediately. If our company is not careful in allocating capital and resources, the result might be failure of our venture.

Our business model requires the use and training of outside personnel, some of whom may not be available to provide qualified services when needed.

As new employees transition into their positions, the process may lead to delays or interruptions of productive work and inefficient formal orientation programs often fail to provide measurable benefits for the company. Staff turnover can also cause loss to the company. Our business model requires us to contract services from our business partners in other countries. These partners will be selected in accordance with specific standards and provided with adequate training to ensure that they will be familiar with all relevant aspects of our company’s business. Individual levels of trainability, professionalism, and work ethic will vary and may not always meet the strict requirements of our business. Additionally, outside personnel may not be available when needed, which may affect customer satisfaction, the company’s public image, and future business development opportunities. If we are not able to recruit and effectively train the required personnel, our company may face significant challenges and, ultimately, fail.

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Our company’s industrial chain service is based on a professional investigation program.

We will need to build a research & investigation team with the high degree of professionalism that is necessary to implement our program and meet our operational needs. The research & investigation team should have expertise in client care, business model analysis, market research, and other relevant environmental research. We will make every reasonable effort to enhance the professionalism of our team, but it will still be difficult to guarantee that our research & investigation team can, in practice, satisfy all of our clients’ requirements.

The company’s research & investigation capabilities may not match company’s operational requirements.

Our working partners might not have the skills, experience, or qualifications necessary to match our clients’ requirements. We have established cooperation relationships with various business partners with the expectation that these resources will allow us to assist our clients as they implement our transformation plans and we are continually pursuing cooperation relationships with various outstanding business partners that can fulfill each client’s requirements. There is always a chance that the products or services our business partners are capable of providing will not match our clients’ specific needs. We are currently developing strict guidelines for our business partnerships that will allow us to provide the best possible service to our clients. We will continually monitor the quality of our business partners’ products, services, capacity, internal management systems, and other relevant indicators.

Employees with a weak sense of moral hazard may negatively influence our company’s business and reputation.

Employee with good professional ethics are important for any company’s development. An employee with poor work ethic might, either intentionally or unintentionally disclose confidential information about our company or our clients and particularly unscrupulous employees might endeavor to sell material information to industry competitors. While it is impossible to completely eliminate this risk, we will establish a series of policies to reduce the likelihood of such events.

We will:

1. Organize ethics training for all employees

2. Establish and employ a comprehensive security system to protect important files and data

The Company may not be able to establish sufficient business partnerships to effectively serve our target market.

Our business model involves promoting our products and services through our business partners in targeted countries and regions. These partners will be more familiar with local markets and may be able to help us attract clients quickly. However, it takes time to recruit qualified business partners and those selected may not always turn out to be the right fit, which may have a negative effect on our business development. Due to the inconvenience and logistical challenges posed by the locations of the companies in our group, there is always a chance that we may miss out on opportunities for cooperation between companies.

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Cultural differences between our company and local partners may pose a risk to our expansion.

As an international company, we will need to consider the numerous cultural differences that have the potential to influence our business. Culture-based misunderstandings and conflicts may arise, not only between our company and the local partners, but within our staff as well. Such conflicts would have a negative effect on morale and could diminish the quality of our final products.

Valuable resources may be lost if there is a problem with our patents.

Our “Adden Chain” multi-task industrial chain service system has not yet been granted for a patent that would protect the model within the textile and garment industry. We could potentially lose corresponding resources and miss out on some business opportunities, despite our best efforts to protect our rights via legal means when our model is stolen or copied. The entry barrier for our business is high due to the large amount of resources and energy that it requires, which can prevent some small and medium-sized companies from engaging in this business. However, we cannot guarantee that our business model won’t be copied by other groups or companies with access to sufficient resources and industry information. If such an event occurs, we will face the challenges from the powerful competitors and our performance in the market could be negatively affected.

Large competitors could steal our market share by offering lower prices.

We endeavor to provide the highest possible quality service to our clients at the best possible price, however, large competitors might steal some of our market share by offering lower prices, causing us to lose some of our clients. If this happens, we might not be able to generate adequate income and will soon find ourselves lacking the capital that is required to continue operations.

We currently have a limited number of clients and customers and we cannot guarantee we will ever have more. Even if we obtain additional clients or customers, there is no assurance that we will make a profit.

We currently have a limited number of clients and customers. We have identified additional potential clients, but we cannot guarantee that we will be able to secure them as clients. Even if we obtain additional clients and customers, there is no guarantee that we will be able develop products and/or services that our clients and customers will want to purchase. If we are unable to attract enough customers and clients to purchase services (and any products we may develop or sell) it will have a negative effect on our ability to generate the revenue that is necessary to operate or expand our business. The lack of sufficient revenue will have a negative effect on the ability of our company to continue operations and could force us to cease operations.

Our business partners may fail to effectively promote our business, thus hindering development.

We cannot guarantee that we will be able to satisfy all of our clients. If we do not meet our clients’ expectations, it will likely have a negative impact on our future business development. A failed cooperation will not only subject us to pecuniary loss, but could also diminish the sense of goodwill between the parties, which would not be good for our business development.

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If we are not able to increase and maintain our brand influence, we may face difficulties in attracting new business partners and clients.

Our brand is still being nurtured. It is of critical importance that we increase and maintain our brand influence in order to attract new clients and business partners. Our major competitors have built well-known brands and continue to increase their influence. Our failure to increase and maintain brand influence for any reason may result in a material adverse effects on our business, operational results, and financial position.

General Risks Associated with Business Operations in China

Foreign exchange fluctuations may affect our business.

We accept the payment of listed service fees in CNY, HKD, and USD. Therefore, foreign exchange fluctuations may influence our business in unpredictable ways.

Inflation could pose a risk to our business.

Inflation is important factor must be considered as we move forward. A change in the rate of inflation could influence the profits that we generate from our business. When the rate of inflation rises, the operational costs of running our company would increase, affecting our ability to provide our services at competitive prices. An increased in the rate of inflation would force our clients to search for other service providers, causing us to lose business and revenue.

It is difficult to predict the Chinese government’s financial policies.

Financial regulations in China are very strict. The government controls all financial institutions, including those involved in equity financing. Government interference could seriously damage or completely destroy our company.

Dependence Upon Our Current Officers

Our business depends on the continued contributions made by our officers and employees, loss of whom may result in a severe impediment to our business.

Our success is dependent upon the continued contributions made by our officers, especially our founders. We rely on their expertise in business operations when we are developing all new products and services. The company has no “Key Man” insurance to cover the resulting losses in the event that any of our officers should die or resign.

If one or more of our officers cannot serve the company or is no longer willing to do so, the company may not be able to find alternatives in a timely manner or at all. This would result in a severe damage to our business operations and would have an adverse material impact on our financial position and operational results. To continue as a viable operation, the company may have to recruit and train replacement personnel at a higher cost.

Additionally, if our officers join our competitors or develop similar businesses that are in competition with our company, our business may also be negatively impacted.

Our future success depends on our ability to attract and retain qualified long-term staff to fill management, technology, sales, marketing, and customer services positions. We have a great need for qualified talent, but we may not be successful in attracting, hiring, developing, and retaining the talent required for our success.

Asymmetric information access entails inherent ethical risk.

Our employees may need to develop privileged relationships with our business partners may acquire the ability to harm the interests of our partners. If this should happen, our clients might lose faith in our expertise entirely.

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While we can never eliminate these ethical risks entirely, we will do everything in our power to reduce the likelihood of breaches of trust and mitigate their impacts of it by hiring highly professional employees and establishing strong internal information management systems.

Risks Associated with Our Common Stock

Our controlling shareholders may make decisions that differ from those that might be made our corporate officers and directors.

Through a controlling ownership share in our company, shareholders have significant influence in determining the outcome of all corporate transactions, including the power to prevent or cause a change in control. Their interests may differ from the interests of other stockholders and thus result in corporate decisions that are disadvantageous to other shareholders.

We may never be able to pay dividends and are unlikely to do so.

To date, we have not paid, nor do we intend to pay in the foreseeable future, dividends on our common stock, even if we become profitable. Earnings, if any, are expected to be used to advance our activities and for general corporate purposes, rather than to make distributions to stockholders. Since we are not in a financial position to pay dividends on our common stock and future dividends are not presently being contemplated, investors are advised that return on investment in our common stock is restricted to an appreciation in the share price. The potential or likelihood of an increase in share price is uncertain.

There is no active trading market for our common stock and if a market for our common stock does not develop, our investors will be unable to sell their shares.

There is currently no active trading market for our common stock and such a market may not develop or be sustained. We plan to have our common stock quoted on the OTC Bulletin Board upon the effectiveness of this registration statement of which this prospectus forms a part. In order to do this, a market maker must file a Form 15c-211 to allow the market maker to make a market in our shares of common stock. At the date hereof we are not aware that any market maker has any such intention. We cannot provide our investors with any assurance that our common stock will be traded on the OTC Bulletin Board or any other exchange, or, if traded, that a public market will materialize. Further, the OTC Bulletin Board is not a listing service or exchange, but is instead a dealer quotation service for subscribing members. If our common stock is not quoted on the OTC Bulletin Board or if a public market for our common stock does not develop, then investors may not be able to resell the shares of our common stock that they have purchased and may lose all of their investment. If we establish a trading market for our common stock, the market price of our common stock may be significantly affected by factors such as actual or anticipated fluctuations in our operation results, general market conditions and other factors. In addition, the stock market has from time to time experienced significant price and volume fluctuations that have particularly affected the market prices for the shares of developmental stage companies, which may materially adversely affect the market price of our common stock.

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Sales of a substantial number of shares of our common stock into the public market by the selling stockholders may result in significant downward pressure on the price of our common stock and could affect the ability of our stockholders to realize any current trading price of our common stock.

Sales of a substantial number of shares of our common stock in the public market could cause a reduction in the market price of our common stock, when and if such market develops. When this registration statement is declared effective, the selling stockholders may be reselling up to 32.8% of the issued and outstanding shares of our common stock. As a result of such registration statement, a substantial number of our shares of common stock which have been issued may be available for immediate resale when and if a market develops for our common stock, which could have an adverse effect on the price of our common stock. As a result of any such decreases in price of our common stock, purchasers who acquire shares from the selling stockholders may lose some or all of their investment.

Any significant downward pressure on the price of our common stock as the selling stockholders sell the shares of our common stock could encourage short sales by the selling stockholders or others. Any such short sales could place further downward pressure on the price of our common stock.

Our stock is a penny stock. Trading of our stock may be restricted by the SEC’s penny stock regulations and the NASD’s sales practice requirements, which may limit a stockholder’s ability to buy and sell our stock.

Our stock is a penny stock. The Securities and Exchange Commission (the “SEC”) has adopted Rule 15g-9 which generally defines “penny stock” to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and “accredited investors”. The term “accredited investor” refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000, or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser, and receive the purchaser’s written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in and limit the marketability of our common stock.

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In addition to the “penny stock” rules promulgated by the SEC, the NASD has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, the NASD believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. The NASD requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.

Please read this prospectus carefully. You should rely only on the information contained in this prospectus. We have not authorized anyone to provide you with different information. You should not assume that the information provided by the prospectus is accurate as of any date other than the date on the front of this prospectus.

FORWARD-LOOKING STATEMENTS

This prospectus contains forward-looking statements that involve risks and uncertainties, including statements regarding our capital needs, business plans and expectations. Such forward-looking statements involve risks and uncertainties regarding the market price of gold and copper, availability of funds, government regulations, operating costs, exploration costs, outcomes of exploration programs and other factors. Forward-looking statements are made, without limitation, in relation to operating plans, property exploration and development, availability of funds, environmental reclamation, operating costs and permit acquisition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology. Actual events or results may differ materially. In evaluating these statements, you should consider various factors, including the risks outlined in this prospectus. These factors may cause our actual results to differ materially from any forward-looking statement. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding our business plans, our actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. We do not intend to update any of the forward-looking statements to conform these statements to actual results, except as required by applicable law, including the securities laws of the United States.

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

Results of Operations

The following discussion of our financial condition and results of operation for the period ended June 30, 2017 and 2016 and the years ended December 31, 2016 and 2015 should be read in conjunction with the financial statements and the notes to those statements that are included elsewhere in this report on Form 8-K.

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For the three months ended June 30, 2017 compared to 2016

	Three Months Ended
	June 30,
	2017			2016			Change
Revenue	$	4,208,819		$	3,615,869		$	592,950
Cost of revenue		(3,937,257	)		(3,136,863	)		(800,394	)
Gross profit		271,562			479,006			(207,444	)
Gross profit (%)		6	%		13	%
Operating expense		(382,167	)		(404,877	)		22,710
Other expense		(1,888	)		(4,737	)		2,849
Provision for income taxes		(2,176	)		(10,486	)		8,310
Net income (loss)	$	(114,669	)	$	58,906		$	(173,575	)

Revenue

Net revenues totaled $4,208,819 for the three months ended June 30, 2017, an increase of $592,950 compared to 2016. The increase was primarily a result of expansion of business. The company developed some new customers that bring more revenue to the company.

Cost of revenue

Cost of revenue totaled $3,937,257 for the three months ended June 30, 2017, an increase of $800,394 compared to 2016, primarily as the result of the rise of manufacturing cost and materials cost. Our cost of revenues consisted mainly of labor cost and materials cost. The labor costs for three months ended June 30, 2017 was $138,883, respectively. The material cost for three months ended June 30, 2017 was $1,918,261, respectively. The transportation cost for three months ended June 30, 2017 was $1,832,220, respectively. The manufacturing cost for three months ended June 30, 2017 was $39,570, respectively. The operation tax for three months ended June 30, 2017 was $8,323, respectively.

Gross profit

Gross profit was 6% ($271,562) and 13% ($479,006) for the three months ended June 30, 2017 and 2016, respectively.

The decrease in gross profit was primarily a result of strategic business expansion plan.

Operating expense

General and administrative expenses totaled $382,167 for the three months ended June 30, 2017, a decrease of $22,710, compared to 2016. Operating expenses for three months ended June 30, 2017 included sales expense of $12,192, administration expense of $369,161 and financial expense of $814, respectively. Operating expenses for three months ended June 30, 2016 included sales expense of $14,668, administration expense of $389,710 and financial expense of $499, respectively.

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Other expense

Total other expenses totaled $1,888 for the three months ended June 30, 2017, a decrease of $2,849 compared to 2016. Other expense consisted mainly of government subsidy.

Net income

Net loss totaled $114,669 for the three months ended June 30, 2017, a decrease from net income of $58,906, compared to 2016, primarily as the result of a decrease in gross profit of $207,444.

For the six months ended June 30, 2017 compared to 2016

	Six Months Ended
	June 30,
	2017			2016			Change
Revenue	$	7,292,010		$	6,850,617		$	441,393
Cost of revenue		(6,746,056	)		(5,942,449	)		(803,607	)
Gross profit		545,954			908,168			(362,214	)
Gross profit (%)		7	%		13	%
Operating expense		(676,827	)		(767,546	)		90,719
Other expense		(2,173	)		(7,670	)		5,497
Provision for income taxes		(2,328	)		(17,361	)		15,033
Net income (loss)	$	(135,374	)	$	115,591		$	(250,965	)

Revenue

Net revenues totaled $7,292,010 for the six months ended June 30, 2017, an increase of $441,393 compared to 2016. The increase was primarily a result of expansion of business. The company developed some new customers that bring more revenue to the company.

Cost of revenue

Cost of revenue totaled $6,746,056 for the six months ended June 30, 2017, an increase of $803,607 compared to 2016, primarily as the result of the rise of manufacturing cost and materials cost. Our cost of revenues consisted mainly of labor cost, raw material cost, manufacturing cost, transportation cost and operation tax.

The labor cost for six months ended June 30, 2017 and 2016 was $210,703 and $290,550, respectively.

The raw material cost for six months ended June 30, 2017 and 2016 was $2,852,129 and $3,227,290, respectively.

The manufacturing cost for six months ended June 30, 2017 and 2016 was $123,223 and $133,953, respectively.

The transportation cost six months ended June 30, 2017 and 2016 was $3,548,079 and $2,272,211, respectively.

The operation tax for six months ended June 30, 2017 and 2016 was $11,922 and $18,445, respectively.

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Gross profit

Gross profit was 7% ($545,954) and 13% ($908,168) for the six months ended June 30, 2017 and 2016, respectively.

The decrease in gross profit was primarily a result of strategic business expansion plan .

Operating expense

General and administrative expenses totaled $676,827 for the six months ended June 30, 2017, a decrease of $90,719, compared to 2016. Operating expenses for six months ended June 30, 2017 included sales expense of $18,925, administration expense of $656,775 and financial expense of $1,127, respectively. Operating expenses for six months ended June 30, 2016 included sales expense of $29,362, administration expense of $734,390 and financial expense of $3,794, respectively

Other expense

	Six Months Ended
	June 30,
Other Expense	2017			2016			Change
Interest expense	$	-		$	(2,701	)	$	2,701
Other expense		(2,173	)		(4,969	)		2,796
Total Other Income	$	(2,173	)	$	(7,670	)	$	5,497

Total other expenses totaled $2,173 for the six months ended June 30, 2017, a decrease of $5,497 compared to 2016. Other expense consisted mainly of government subsidy.

Net income

Net loss totaled $135,374 for the six months ended June 30, 2017, a decrease from net income of $115,591, compared to 2016, primarily as the result of a decrease in gross profit of $362,214.

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Liquidity and Capital Resources

Working Capital

	June 30,			December 31,
	2017			2016		Change
Cash	$	1,098,254		$	227,687	$	870,567
Total current assets	$	8,511,970		$	7,341,329	$	1,170,641
Total current liabilities		8,582,130			7,325,574		1,256,556
Working capital (deficiency)	$	(70,160	)	$	15,755	$	(85,915	)

The change in working capital deficiency during the period ended June 30, 2017 was primarily from an increase in short-term loan payable of $2,655,000 and reduced by an increase in cash of $870,567 and a decrease in due to related parties of $1,148,496.

Cash Flows

	Six Months Ended
	June 30,
	2017			2016			Change
Cash Flows Provided by (Used in) Operating Activities	$	(196,256	)	$	754,388		$	(950,644	)
Cash Flows Used in Investing Activities		(1,793,786	)		(1,051,917	)		(741,869	)
Cash Flows Provided by Financing Activities		2,847,238			322,298			2,524,940
Effects on changes in foreign exchange rate		13,371			6,402			6,969
Net Increase in Cash During Period	$	870,567		$	31,171		$	839,396

Cash Flow from Operating Activities

For the six months ended June 30, 2017, net cash flows used in operating activities consisted of a net loss of $135,374 and was decreased by depreciation of $52,652, and increased by a net increase in change of operating assets and liabilities of $113,591. For the six months ended June 30, 2016, net cash flows used in operating consisted of a net income of $115,544 and was increased by depreciation of $35,185 and a net increase in the change of operating assets and liabilities of $603,612.

Cash Flow from Investing Activities

For the six months ended June 30, 2017, we used $1,458,000 for acquisition of subsidiary, provided loans of $312,173 and loans to related parties of $23,613. For the six months ended June 30, 2016, we used $20,434 for purchases of equipment, provided loans of $990,070 and loans to related parties of $41,413.

Cash Flow from Financing Activities

For the six months ended June 30, 2017, we received $4,082,400 from loan payable and used $1,235,162 for repayments of loans to related parties. For the six months ended June 30, 2016, we received loans from related parties of $506,018 and used $183,720 for repayments of loan payable.

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For the year ended December 31, 2016 compared to 2015

	Years Ended
	December 31,
	2016			2015			Change
Revenue	$	14,427,141		$	9,294,356		$	5,132,785
Cost of revenue		(12,751,777	)		(7,950,642	)		4,801,135
Gross profit		1,675,364			1,343,714			331,650
Gross profit (%)		12	%		14	%
Operating expense		(1,516,876	)		(1,474,278	)		42,598
Other income		7,326			157,232			(149,906	)
Provision for income taxes		(35,989	)		(20,439	)		15,550
Net income	$	129,825		$	6,229		$	123,596

Revenue

Net revenues totaled $14,427,141 for the year ended December 31, 2016, an increase of $5,132,785 compared to 2015. The increase was primarily a result of expansion of business. The company developed some new customers that bring more revenue to the company.

Cost of revenue

Cost of revenue totaled $12,751,777 for the year ended December 31, 2016, an increase of $4,801,135 compared to 2015, primarily as the result of the rise of manufacturing cost and materials cost. Our cost of revenues consisted mainly of raw material cost, labor cost, manufacturing cost, transportation cost and operation tax.

The labor cost for years ended December 31, 2016 and 2015 was $74,712 and $55,162, respectively. The raw material cost for years ended December 31, 2016 and 2015 was $6,114,993 and $2,461,463, respectively. The manufacturing cost for years ended December 31, 2016 and 2015 was $787,125 and $374,737, respectively. The transportation cost for years ended December 31, 2016 and 2015 was $5,745,303 and $5,043,639, respectively. The operation tax for years ended December 31, 2016 and 2015 was $29,044 and $15,641, respectively.

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Gross profit

Gross profit was 12% ($1,675,364) and 14% ($1,343,714) for the year ended December 31, 2016 and 2015, respectively.

Operating expense

General and administrative expenses totaled $1,516,876 for the year ended December 31, 2016, an increase of $42,598, compared to 2015. Operating expenses mainly consist of sales expense, administration expense and financial expense. The operating expense for years ended December 31, 2016 included administration expense of $1,477,012, sales expense of $35,476, financial expense of $4,388, respectively. The operating expense for years ended December 31, 2015 included administration expense of $1,380,249; sales expense of $71,822; financial expense of $22,207, respectively.

Other income (expense)

	Years Ended
	December 31,
	2016			2015			Change
Other income	$	17,755		$	193,248		$	(175,493	)
Interest expense		(2,701	)		(21,874	)		19,173
Other expense		(7,728	)		(14,142	)		6,414
Total Other Income	$	7,326		$	157,232		$	(149,906	)

Total other income (expenses) totaled $7,326 for the year ended December 31, 2016, a decrease of $149,906 compared to 2015 mainly due to a decrease of $175,493 in other income. The difference is mainly due to the allowance of disposal of heavy-polluting vehicles granted by the Government in 2015.

Net income

Net income totaled $129,825 for the year ended December 31, 2016, an increase of $123,596, compared to 2015, primarily as the result of an increase in gross profit of $331,650.

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Liquidity and Capital Resources

Working Capital

	December 31,		December 31,
	2016		2015		Change
Cash	$	227,687	$	123,133	$	104,554
Total current assets	$	7,341,329	$	4,614,904	$	2,726,425
Total current liabilities		7,325,574		3,155,457		4,170,117
Working capital	$	15,755	$	1,459,447	$	(1,443,692	)

Cash Flows

	Years Ended
	December 31,
	2016			2015			Change
Cash Flows Provided by (Used in) Operating Activities	$	65,191		$	(1,222,934	)	$	1,288,125
Cash Flows Used in Investing Activities		(339,622	)		(776,515	)		436,893
Cash Flows Provided by Financing Activities		387,824			1,992,145			(1,604,321	)
Effects on changes in foreign exchange rate		(8,839	)		(5,765	)		(3,074	)
Net Increase (decrease) in Cash During Period	$	104,554		$	(13,069	)	$	117,623

The change in working capital during 2016 was primarily from an increase in accounts receivable of $2,206,153 and reduced by an increase in account payable and accrued liabilities of $2,019,490 and increase in due to related parties of $1,893,775.

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Cash Flow from Operating Activities

For the year ended December 31, 2016 net cash flows provided by operating activities consisted of a net income of $129,825 and was increased by depreciation of $102,967, and reduced by a net increase in change of operating assets and liabilities of $167,601. For the year ended December 31, 2015, net cash flows used in operating consisted of a net income of $6,229 and was increased by depreciation of $91,368 and a net decrease in the change of operating assets and liabilities of $1,320,531.

Cash Flow from Investing Activities

For the year ended December 31, 2016, we used $102,629 for purchases of equipment, provided loans of $769,654 and received $10,829 from sale of property and equipment and $521,832 from repayment of loan to related parties. For the year ended December 31, 2015, we used $158,033 for purchases of equipment, provided loans of $66,653 and loans to related parties of $551,829.

Cash Flow from Financing Activities

For the year ended December 31, 2016, we received $100,000 for the issuance of common shares and $468,424 from loan from related party and used $180,600 for repayments of loan payable. For the year ended December 31, 2015, we received loans from related parties of $2,073,365 and used $81,220 for repayments of loan payable.

Critical Accounting Policy and Estimates

In the ordinary course of business, we make a number of estimates and assumptions relating to the reporting of results of operations and financial condition in the preparation of our financial statements in conformity with U.S. generally accepted accounting principles. We base our estimates on historical experience, when available, and on other various assumptions that are believed to be reasonable under the circumstances. Actual results could differ significantly from those estimates under different assumptions and conditions.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table sets forth, as of August 9, 2017, certain information with respect to the beneficial ownership of our common shares by each shareholder known by us to be the beneficial owner of more than 5% of our common shares, as well as by each of our current directors and executive officers as a group. To the best of our knowledge, except as otherwise indicated each person has sole voting and investment power with respect to the shares of common stock except to the extent such power may be shared with a spouse. Beneficial ownership consists of a direct interest in the shares of common stock, except as otherwise indicated.

Name and Address of Beneficial Owner(1)	Amount and Nature of  Beneficial Ownership	Percentage (2) of Class
Hong Zhida: President, Secretary, Director Floor 13, Building 1, Block B, Zhihui Square, Nanshan District, Shenzhen, China 518000	30,159,000 (Direct)	5.95% Common
Yu Keying: Director Floor 13, Building 1, Block B, Zhihui Square, Nanshan District, Shenzhen, China 518000	3,800,000 (Direct)	0.75% Common
Hengtian Group Co., Ltd. Beneficial Owner: Ma Huizhu Second Floor, The Quadrant Manglier Street, Victoria, Mahe, Seychelles	89,650,412 (Indirect)	17.69% Common
Hui Lian Group Ltd.: Beneficial Owner: Ma Huijun The Quadrant Manglier Street, Victoria, Mahe, Seychelles	157,719,300 (Indirect)	31.11% Common
Zeng Shufang No. 2, Second Lane, Rentien Village Fuyong Town, Baoan Baoan District, Guangdong Province, China	42,000,000 (Direct)	8.29% Common
Directors and Executive Officers as a Group (2 people)	33,959,000	6.70%

(1) The persons named above may be deemed to be a “promoter” of the Company, within the meaning of such terms under the Securities Act of 1933, as amended, by virtue of his direct holdings in the Company.

(2) Based on 506,920,000 shares issued and outstanding as of September 20th, 2017.

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Directors, Executive Officers, Promoters and Control Persons

All directors of our company hold office until the next annual meeting of the security holders or until their successors have been elected and qualified. The officers of our company are appointed by the board of directors and hold office until their death, resignation or removal from office. The directors and executive officers, their ages, positions held, and duration as such, are as follows:

The name, address, age and position of our officers and directors is set forth below:

Name and Address	Age	Position(s)
Hong Zhida Floor 13, Building 1, Block B, Zhihui Square, Nanshan District, Shenzhen, China 518000	27	President, Chief Executive Officer, Chief Financial Officer Secretary and Director Appointed: March, 2017.
Keying Yu Floor 13, Building 1, Block B, Zhihui Square, Nanshan District, Shenzhen, China 518000	68	Director. Appointed March 10, 2017.

The officers and directors set forth herein are our only officers, directors and control persons, as that term is defined in the rules and regulations promulgated under the Securities and Exchange Act of 1933.

Background of Officers and Directors

Hong Zhida, Secretary, Treasurer

Mr. Hong Zhida received his Bachelor’s Degree in Electronic Information Science and Technology from Sun Yat-sen University in July 2013. From June 2014 to Present, he served as the Director of China Huiying Joint Supply Chain Group Co.Ltd. He was responsible for assisting the company’s chairman to plan development strategy. From September 2013 to May 2014, he served as Head of Membership Department of the Guangzhou Haifeng Chamber of Commerce. In that position he was responsible for the membership management of the institution.

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Yu Keying, Director

From July 1986 to present, Mr. Yu has worked in Shenzhen Mailang Garments Co. Ltd as Manager. Shenzhen Mailang Garments Co. Ltd is an enterprise responsible for developing, producing and selling garments of two main leisure men’s brands called Mylooo and Tannoy covering T-shirts, sweaters, windbreaker and other product lines. There are numbers of sales outlets in Guangzhou, Beijing, Shanghai, Hong Kong, Taiwan and other overseas market. Mr Yu has been responsible for company operations related to product development and sales management.

Mr. Hong devotes 75% of his time each week for planning and organizing activities of Addentax Group Corp.

Mr. Yu devotes 75% of his time each week for planning and organizing activities of Addentax Group Corp.

During the past ten years, neither Mr. Hong nor Mr. Yu have been the subject to any of the following events:

1. Any bankruptcy petition filed by or against any business of which Mr. Hong or Mr. Yu was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.

2. Any conviction in a criminal proceeding or being subject to a pending criminal proceeding.

3. An order, judgment, or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting Mr. Hong’s or Mr. Yu’s involvement in any type of business, securities or banking activities.

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4. Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to violate a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

5. Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;

Director Independence

We are not currently subject to listing requirements of any national securities exchange or inter-dealer quotation system which has requirements that a majority of the board of directors be “independent” and, as a result, we are not at this time required to have our Board of Directors comprised of a majority of “independent directors.”

Family Relationships

There are no family relationships among our Directors or executive officers.

Director or Officer Involvement in Certain Legal Proceedings

None of our directors or executive officers has been involved in any of the following events during the past ten years:

● any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;

● any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offences);

● being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; or

● being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.

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Board Committees

The Company currently has not established any committees of the Board of Directors. Our Board of Directors may designate from among its members an executive committee and one or more other committees in the future. We do not have a nominating committee or a nominating committee charter. Further, we do not have a policy with regard to the consideration of any director candidates recommended by security holders. To date, other than as described above, no security holders have made any such recommendations. The entire Board of Directors performs all functions that would otherwise be performed by committees. Given the present size of our board it is not practical for us to have committees. If we are able to grow our business and increase our operations, we intend to expand the size of our board and allocate responsibilities accordingly.

Audit Committee Financial Expert

We have no separate audit committee at this time. The entire Board of Directors oversees our audits and auditing procedures. The Board of Directors has at this time not determined whether any director is an “audit committee financial expert” within the meaning of Item 407(d)(5) for SEC regulation S-K.

Code of Ethics

We have adopted a Code of Business Conduct and Ethics that applies to, among other persons, members of our board of directors, our Company’s officers including our President, Chief Executive Officer and Chief Financial Officer, employees, consultants and advisors. As adopted, our Code of Business Conduct and Ethics sets forth written standards that are designed to deter wrongdoing and to promote:

1.	honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
2.	full, fair, accurate, timely, and understandable disclosure in reports and documents that we file with, or submit to, the US Securities and Exchange Commission and in other public communications made by us;
3.	compliance with applicable governmental laws, rules and regulations;
4.	the prompt internal reporting of violations of the Code of Business Conduct and Ethics to an appropriate person or persons identified in the Code of Business Conduct and Ethics; and;
5.	accountability for adherence to the Code of Business Conduct and Ethics.

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Our Code of Business Conduct and Ethics requires, among other things, that all of our company’s senior officers commit to timely, accurate and consistent disclosure of information; that they maintain confidential information; and that they act with honesty and integrity.

In addition, our Code of Business Conduct and Ethics emphasizes that all employees, and particularly senior officers, have a responsibility for maintaining financial integrity within our company, consistent with generally accepted accounting principles, and federal and state securities laws. Any senior officer, who becomes aware of any incidents involving financial or accounting manipulation or other irregularities, whether by witnessing the incident or being told of it, must report it to our Company. Any failure to report such inappropriate or irregular conduct of others is to be treated as a severe disciplinary matter. It is against our Company policy to retaliate against any individual who reports in good faith the violation or potential violation of our company’s Code of Business Conduct and Ethics by another.

Executive Compensation

The following tables set forth, for each of the last two completed fiscal years of the Company, the total compensation awarded to, earned by or paid to any person who was a principal executive officer during the preceding fiscal year and every other highest compensated executive officers earning more than $100,000 during the last fiscal year (together, the “Named Executive Officers”). The tables set forth below reflect the compensation of the Named Executive Officer.

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SUMMARY COMPENSATION TABLE
Name and Principal Position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensation ($)	Change in Pension Value and Nonqualified Deferred Compensation Earnings ($)	All Other Compensation (3) ($)	Total ($)
Hong Zhida (1) President, Chief Executive Officer, Officer, Treasurer and Director	2017 2016	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil
Yu Keying (2) Director	2017 2016	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil
Otmane Tajmouati President, Secretary and Director	2015 2016	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil

(1)	Mr. Hong was appointed as President, Chief Executive Officer, Chief Financial Officer and Treasurer of the company on March 10, 2017.
(2)	Mr. Yu was appointed as President CEO, Secretary Chief Financial Officer, Treasurer and as a Director of the company on November 21, 2016, He resigned as resident CEO, Secretary Chief Financial Officer, Treasurer on March 10, 2017. He remains as a director.
(3)	Mr. Tajmouati was appointed as President, Chief Executive Officer, and Treasurer of the company on October 28, 2014. He resigned from these position on November 21, 2016.

Narrative Disclosure to Summary Compensation Table

Other than set out below, there are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. Our directors and executive officers may receive share options at the discretion of our board of directors in the future. We do not have any material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that share options may be granted at the discretion of our board of directors.

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Stock Option Plan

Currently, we do not have a stock option plan in favor of any director, officer, consultant or employee of our company.

Grants of Plan-Based Awards

To date, there have been no grants or plan-based awards.

Outstanding Equity Awards

To date, there have been no outstanding equity awards.

Option Exercises and Stock Vested

To date, there have been no options exercised by our named officers.

Compensation of Directors

We do not have any agreements for compensating our directors for their services in their capacity as directors.

Pension, Retirement or Similar Benefit Plans

There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. We have no material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of the board of directors or a committee thereof.

Employment Agreements

We have no formal employment agreements with any of our employees, directors or officers.

Certain Relationships and Related Transactions Certain Relationships and Related Transactions

SEC rules require us to disclose any transaction or currently proposed transaction in which the Company is a participant and in which any related person has or will have a direct or indirect material interest involving the lesser of $120,000.00 or one percent (1%) of the average of the Company’s total assets as of the end of last two completed fiscal years. A related person is any executive officer, director, nominee for director, or holder of 5% or more of the Company’s common stock, or an immediate family member of any of those persons.

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None of our officers or directors has any direct or indirect relationship to any additional current or proposed transactions.

During the year ended March 31, 2017, we had not entered into any transactions with our officers or directors, or persons nominated for these positions, beneficial owners of 5% or more of our common stock, or family members of these persons wherein the amount involved in the transaction or a series of similar transactions exceeded the lesser of $120,000 or 1% of the average of our total assets for the last three fiscal years.

Market Price of and Dividends on Common Equity and Related Stockholder Matters

Market Information

Our company’s common stock is quoted on the OTCBB under the symbol “ATXG”. We received our trading symbol on September 12, 2016 and were first quoted on September 12, 2016 but no shares were traded until December 12, 2016. There is a public trading market our common stock.

The following table sets forth the quarterly high and low bid prices for the common stock from September 12, 2016, to June 30, 2017. The prices set forth below represent inter-dealer quotations, without retail markup, markdown or commission and may not be reflective of actual transactions.

	High		Low
Quarter ended September 30, 2016	$	100.00	$	0.01
Quarter ended December 31, 2016	$	50.005	$	1.01
Quarter ended March 31, 2017	$	2.00	$	1.05
Quarter ended June 30, 2017	$	2.05	$	1.30

Holders

As September 20th, 2017 there were 279 stockholders of record, and an aggregate of 506,920,000 shares of our common stock was issued and outstanding.

Dividend Policy

We have not paid any cash dividends on our common stock and have no present intention of paying any dividends on the shares of our common stock. Our current policy is to retain earnings, if any, for use in our operations and in the development of our business. Our future dividend policy will be determined from time to time by our board of directors.

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Equity Compensation Plan Information

We do not have in effect any compensation plans under which our equity securities are authorized for issuance and we do not have any outstanding stock options.

Recent Sales of Unregistered Securities

We did not sell any equity securities which were not registered under the Securities Act during the year ended March 31, 2016 and the quarter ended June 30, 2017, that were not otherwise disclosed on our quarterly reports on Form 10-Q or our current reports on Form 8-K filed during the year ended March 31, 2016, and any Form 10-Q subsequent to that date.

Purchase of Equity Securities by the Issuer and Affiliated Purchasers

We have not purchased any of our shares of common stock or other securities during our fourth quarter of our fiscal year ended March 31, 2017 or during the interim quarterly period ended June 30, 2017.

Description of Securities

The authorized capital stock of our company consists of 1,000,000,000 shares of common stock, at $0.001 par value.

Common Stock

Holders of common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders. There is no cumulative voting of the election of directors then standing for election. The common stock is not entitled to pre-emptive rights and is not subject to conversion or redemption. Upon liquidation, dissolution or winding up of our company, the assets legally available for distribution to stockholders are distributable ratably among the holders of the common stock after payment of liquidation preferences, if any, on any outstanding payment of other claims of creditors. Each outstanding share of common stock is duly and validly issued, fully paid and non-assessable.

i. Diluting the voting power of the common stock;

ii. Impairing the liquidation rights of the common stock; or

Delaying or preventing a change in control of the Company without further action by the stockholders.

iii. Other than in connection with shares of preferred stock (as explained above), which preferred stock is not currently designated nor contemplated by us, we do not believe that any provision of our charter or By-Laws would delay, defer or prevent a change in control.

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Transfer Agent

The transfer agent of our company’s common stock is Transfer Online, Inc. at SE 512 Salmon Street, Portland OR 97214.

LEGAL PROCEEDINGS

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm business.

We are currently not aware of any pending legal proceedings to which we are a party or of which any of our properties or assets is the subject, nor are we aware of any such proceedings that are contemplated by any civil entity, any regulatory agency or governmental authority.

INDEMNIFICATION OF DIRECTORS AND OFFICERS

Nevada Corporation Law, our Articles of Incorporation and Bylaws of the corporation, allow us to indemnify our officers and directors from certain liabilities and our Bylaws state that we shall indemnify every (i) present or former director or officer of us, (ii) any person who while serving in any of the capacities referred to in clause (i) served at our request as a director, officer, partner, venturer, proprietor, trustee, employee, agent or similar functionary of another foreign or domestic corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, and (iii) any person nominated or designated by (or pursuant to authority granted by) the Board of Directors or any committee thereof to serve in any of the capacities referred to in clauses (i) or (ii) (each an “Indemnitee”).

Our Bylaws provide that we shall indemnify an Indemnitee against all judgments, penalties (including excise and similar taxes), fines, amounts paid in settlement and reasonable expenses actually incurred by the Indemnitee in connection with any proceeding in which he was, is or is threatened to be named as defendant or respondent, or in which he was or is a witness without being named a defendant or respondent, by reason, in whole or in part, of his serving or having served, or having been nominated or designated to serve, if it is determined that the Indemnitee (a) conducted himself in good faith, (b) reasonably believed, in the case of conduct in his official capacity, that his conduct was in our best interests and, in all other cases, that his conduct was at least not opposed to our best interests, and (c) in the case of any criminal proceeding, had no reasonable cause to believe that his conduct was unlawful; provided, however, that in the event that an Indemnitee is found liable to us or is found liable on the basis that personal benefit was improperly received by the Indemnitee, the indemnification (i) is limited to reasonable expenses actually incurred by the Indemnitee in connection with the proceeding and (ii) shall not be made in respect of any proceeding in which the Indemnitee shall have been found liable for willful or intentional misconduct in the performance of his duty to us.

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Other than in the limited situation described above, our Bylaws provide that no indemnification shall be made in respect to any proceeding in which such Indemnitee has been (a) found liable on the basis that personal benefit was improperly received by him, whether or not the benefit resulted from an action taken in the Indemnitee’s official capacity, or (b) found liable to us. The termination of any proceeding by judgment, order, settlement or conviction, or on a plea of nolo contendere or its equivalent, is not of itself determinative that the Indemnitee did not meet the requirements set forth in clauses (a) or (b) above. An Indemnitee shall be deemed to have been found liable in respect of any claim, issue or matter only after the Indemnitee shall have been so adjudged by a court of competent jurisdiction after exhaustion of all appeals therefrom. Reasonable expenses shall, include, without limitation, all court costs and all fees and disbursements of attorneys for the Indemnitee. The indemnification provided shall be applicable whether or not negligence or gross negligence of the Indemnitee is alleged or proven.

In addition to our Bylaws and our Articles of Incorporation, we have entered into an Indemnification Agreement with each of our directors pursuant to which we will be obligated to maintain liability insurance in favor of the directors serving the Company and its subsidiaries and affiliates. We will also be required to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law and our governing documents. We believe that entering into the contemplated agreements will help attract and retain highly competent and qualified persons to serve the Company.

Other than discussed above, none of our Bylaws, our Articles of Incorporation or any indemnification agreement with any director of the Company includes any specific indemnification provisions for our officers or directors against liability under the Securities Act. Additionally, insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that, in the opinion of the United States SEC, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.[  ]

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Item 3.02: SHARES ISSUED IN CONNECTION WITH THE SALE AND PURCHASE AGREEMENT

Each of these securities issuances took place outside of the United States in private transactions to non-U.S. persons.

Item 5.01: CHANGES IN CONTROL OF REGISTRANT.

Prior to the Closing dated of September 25^th, 2017 all shares issued pursuant to the Agreement were held in escrow and deemed to be in full control of the company. As of the date of the closing, all shares of and required documents were delivered to the Company and the 500,000,000 shares were delivered out of escrow to the following entities in the amounts and percentages set opposite their names.

This constitutes a change of control of the Company. Other than the transactions and agreements previously described, our officers and directors know of no arrangements that may result in a change in control of the Company at a subsequent date.

The information regarding change of control of the Company in connection with the Agreement is also set forth in Item 2.01, “Completion of Acquisition or Disposition of Assets.

Item 5.06: CHANGE IN SHELL COMPANY STATUS.

Prior to the closing of the Sale and Purchase Agreement, we were a “shell company” (as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). As a result of the closing of the Sale and Purchase Agreement, we have ceased to be a shell company. The information contained in this Current Report constitutes the current Form 10 information necessary to satisfy the conditions contained in Rule 144(i)(2) under the Securities Act of 1933, as amended (the “Securities Act”).

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Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS

Reference is made to the shares of ATXG, acquired under the Sale and Purchase Agreement, as described in Item 2.01, which is incorporated herein by reference. As a result of the closing of the Sale and Purchase Agreement, our primary operations consist of the business and operations of YICG Accordingly, we are presenting the audited financial statements of YICG for the period from December 31, 2015 to December 31, 2016, unaudited financial statements of ATXG for the quarter ended June 30, 2017 and unaudited pro forma financial information for the quarter ended June 30, 2017

Exhibit Number	Description of Exhibits
(3)	Articles of Incorporation and Bylaws
3.1	Articles of Incorporation (incorporated by reference to our Registration Statement on Form S-1 filed on August 5, 2015)
3.2	Bylaws (incorporated by reference to our Registration Statement on Form S-1 filed on August 5, 2015)
99.1	Financial Statements of business acquired for the period from December 31, 2015 to December 31, 2016.
99.2	Unaudited financial statements for the quarter ended June 30, 2017.
99.3	Pro Forma Financial Information for the quarter ended June 30, 2017.

39

SIGNATURES

Pursuant to 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 hereunto duly authorized.

Dated: September 25, 2017

ADDENTAX GROUP CORP.

/s/ Hong Zhida

Hong Zhida

President, CEO, CFO, Director

40

EX-99.1

YINGXI INDUSTRIAL CHAIN GROUP CO., LTD

Report of Independent Auditor and Consolidated Financial Statements

Years Ended December 31, 2016 and 2015

Index to Consolidated Financial Statements

	Page
Report of Independent Registered Public Accounting Firm	3
Consolidated Balance Sheets	4
Consolidated Statements of Operations and Comprehensive Income (Loss)	5
Consolidated Statements of Stockholders’ Equity	6
Consolidated Statements of Cash Flows	7
Notes to the Consolidated Financial Statements	8

2

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of
Yingxi Industrial Chain Group Co., Ltd. (“the Company”)

We have audited the accompanying balance sheets of Yingxi Industrial Chain Group Co., Ltd. (incorporated in the Republic of Seychelles) and its subsidiaries, as at December 31, 2016 and 2015, and the related consolidated statements of operations and comprehensive income (loss), stockholders’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Yingxi Industrial Chain Group Co., Ltd. and its subsidiaries as at December 31, 2016 and 2015, and the consolidated results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles in the United States of America.

The Company is not required to have nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal controls over financial reporting. Accordingly, we express no such opinion.

	Anthony Kam & Associates Limited
Hong Kong, China	Certified Public Accountants
September 14, 2017

3

YINGXI INDUSTRIAL CHAIN GROUP CO., LTD

CONSOLIDATED BALANCE SHEETS

	December 31, 2016			December 31, 2015
ASSETS
Current Assets
Cash and cash equivalents	$	227,687		$	123,133
Accounts receivable		5,415,614			3,209,461
Notes receivable		795,062			64,495
Due from related parties		-			533,968
Inventory		428,602			629,395
Prepaid expenses		412,598			43,695
Other current assets		61,766			10,757
Total Current Assets		7,341,329			4,614,904
Property and equipment, net		683,647			744,075
TOTAL ASSETS	$	8,024,976		$	5,358,979
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	2,821,528		$	802,038
Loan payable		-			184,800
Deferred revenue		363,818			92,984
Due to related parties		3,900,030			2,006,255
Tax payable		108,438			12,698
Other current liabilities		131,760			56,682
Total Current Liabilities		7,325,574			3,155,457
TOTAL LIABILITIES		7,325,574			3,155,457
COMMITMENTS AND CONTINGENCIES		-			-
STOCKHOLDERS’ EQUITY
Common stock, $0.0004 par value; 250,000,000 shares authorized; 250,000,000 shares issued and outstanding, respectively		100,000			100,000
Additional paid-in capital		374,499			2,047,600
Retained earnings		345,219			215,394
Accumulated other comprehensive loss		(120,316	)		(159,472	)
Total stockholders’ equity		699,402			2,203,522
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	8,024,976		$	5,358,979

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

4

YINGXI INDUSTRIAL CHAIN GROUP CO., LTD

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	Years Ended
	December 31,
	2016			2015
Revenue	$	14,427,141		$	9,294,356
Cost of revenue		12,751,777			7,950,642
Gross Profit		1,675,364			1,343,714
Operating Expense
General and administrative		1,516,876			1,474,278
Total Operating Expenses		1,516,876			1,474,278
Operating Income (Loss)		158,488			(130,564	)
Other Income (Expense)
Other income		17,755			193,248
Interest expense		(2,701	)		(21,874	)
Other expense		(7,728	)		(14,142	)
Total Other Income		7,326			157,232
Income Before Income Taxes		165,814			26,668
Provision for income taxes		(35,989	)		(20,439	)
Net Income	$	129,825		$	6,229
Other Comprehensive Income (Loss)
Foreign currency translation adjustments		39,156			(101,758	)
Total Comprehensive Income (Loss)		168,981			(95,529	)
Basic and Diluted Loss per Common Share	$	0.00		$	0.00
Basic and Diluted Weighted Average Common Shares Outstanding		250,000,000			250,000,000

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

5

YINGXI INDUSTRIAL CHAIN GROUP CO., LTD

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

										Accumulated
	Common Stock				Additional					Other			Total
	Number of				Paid-in			Retained		Comprehensive			Stockholders’
	Shares		Amount		Capital			Earnings		Loss			Deficit
Balance - December 31, 2014		250,000,000	$	100,000	$	2,047,600		$	209,165	$	(57,714	)	$	2,299,051
Common stock issued for cash		-		-		-			-		-			-
Foreign currency translation adjustments		-		-		-			-		(101,758	)		(101,758	)
Net income		-		-		-			6,229		-			6,229
Balance - December 31, 2015		250,000,000		100,000		2,047,600			215,394		(159,472	)		2,203,522
Acquisition of subsidiaries		-		-		(1,673,101	)		-		-			(1,673,101	)
Foreign currency translation adjustments		-		-		-			-		39,156			39,156
Net income		-		-		-			129,825		-			129,825
Balance - December 31, 2016		250,000,000	$	100,000	$	374,499		$	345,219	$	(120,316	)	$	699,402

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

6

YINGXI INDUSTRIAL CHAIN GROUP CO., LTD

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Years Ended
	December 31,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	129,825		$	6,229
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		102,967			91,368
Changes in operating assets and liabilities:
Accounts receivable		(2,520,317	)		(327,054	)
Inventory		166,207			(2,006	)
Prepaid expenses		(389,421	)		225,727
Other receivable		(54,178	)		977,656
Accounts payable		2,156,185			18,984
Deferred revenue		290,162			(327,695	)
Tax payable		101,160			(52,116	)
Other payable		82,601			(1,834,027	)
Net cash provided by (used in) operating activities		65,191			(1,222,934	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(102,629	)		(158,033	)
Sales of property and equipment		10,829			-
Note receivable		(769,654	)		(66,653	)
Loan to related parties		-			(551,829	)
Collection of loan to related parties		521,832			-
Net cash used in investing activities		(339,622	)		(776,515	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock		100,000			-
Loan from related parties		468,424			2,073,365
Repayment of loans		(180,600	)		(81,220	)
Net cash provided by financing activities		387,824			1,992,145
Effects on changes in foreign exchange rate		(8,839	)		(5,765	)
Net increase (decrease) in cash and cash equivalents		104,554			(13,069	)
Cash and cash equivalents - beginning of period		123,133			136,202
Cash and cash equivalents - end of period	$	227,687		$	123,133
Supplemental Cash Flow Disclosures
Cash paid for interest and income tax	$	2,808		$	-

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

7

YINGXI INDUSTRIAL CHAIN GROUP CO., LTD

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2016 AND 2015

(All English names of the companies, except Yingxi Industrial Chain Investment Co., Ltd, and natural persons in this report are not their official English names but are stated here for identification purpose only.)

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Yingxi Industrial Chain Group Co., Ltd. (“the Company”, “we”, “us” or “our”, Yingxi”) was incorporated on August 4, 2016 in the Republic of Seychelles. During the reporting period, the Company was mainly engaged in textile and garment manufacturing and providing logistics services to its customers. The Company also provides business consultancy to their customers in assisting them to identify weaknesses in their operation in order to optimize their efficiency. The Company also assists their customers in improving their supply chain management which involves the movement and storage of raw materials, of work in progress inventory, and of finished goods from point of origin to point of consumption.

Recent Developments

Our subsidiaries were controlled by the same owners immediately prior to their acquisition by Yingxi. As a result of the acquisition of the subsidiaries by Yingxi, they became 100% owned subsidiaries of Yingxi. As these transactions are between entities under common control, the Company has reported the results of operations for the period in a manner similar to a pooling of interests and has consolidated financial results since the initial date in which the above companies were under common control. Assets and liabilities were combined on their carrying values and no recognition of goodwill was made. The Company has presented earnings per share based on the new parent company shares issued to the former shareholders of the Company.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The consolidated financial statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States.

Basis of Consolidation

The consolidated financial statements include the accounts of Yingxi Industrial Chain Group., Ltd. and its wholly-owned subsidiaries. Intercompany balance and transactions between consolidated entities are eliminated.

Principal subsidiaries

The details of the principal subsidiaries of Yingxi are set out as follows:

Name of subsidiaries	Place of incorporation	Percentage of interest			Principal activities
Shares held directly
Yingxi Industrial Chain Investment Co., Ltd (“YICI”)	Hong Kong China		100	%	Investment holdings
Shares held indirectly
Dongguan Heng Sheng Wei Garments Co., Ltd (“DHSW”)	China		100	%	Garment manufacturing and business consultancy
Qianhai Yingxi Textile and Garments Co., Ltd (“QYTG”)	China		100	%	Investment holdings
Shantou Chenghai Dai Tou Garments Co., Ltd (“SCDT”)	China		100	%	Garment manufacturing
Shenzhen Hua Peng Fa Logistics Co., Ltd (“SHPF”)	China		100	%	Logistics and business consultancy
Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd (“SQYI”)	China		100	%	Investment holdings
Shenzhen Xin Kuai Jie Transport Co., Ltd (“SXKJ”)	China		100	%	Logistics

8

Use of Estimates

The preparation of the consolidated financial statements in conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Foreign Currency Translation

The Company’s reporting currency is the U.S. Dollars (“USD”). The functional currency of the Company and its subsidiaries is Chinese Yuan Renminbi (“RMB”). All transactions initiated in RMB are translated into USD in accordance with ASC 830, “Foreign Currency Matters,” as follows:

i)	Assets and liabilities at the rate of exchange in effect at the balance sheet date.
ii)	Equities at historical rate
iii)	Revenue and expense items at the average rate of exchange prevailing during the period.

Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity.

	December 31, 2016		December 31, 2015
Spot RMB: USD exchange rate	$	0.14	$	0.15
Average RMB: USD exchange rate	$	0.15	$	0.16

Cash and Cash Equivalents

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with original maturities of three months or less, which are readily convertible to known amounts of cash.

Accounts Receivable

The Company’s accounts receivable consists of trade receivables from customers. The Company maintains an allowance for doubtful accounts based on the Company’s assessment of collectability of the customer receivable. The Company analyzes past history with a customer, customer credit, collection history, and financial condition when evaluating the collectability of customer accounts. Uncollectible accounts are charged off to the allowance when it is deemed probable that the receivable will not be recovered.

	December 31, 2016		December 31, 2015
Within 1 year	$	3,985,638	$	3,209,461
1 - 2 years		1,429,976		-
		5,415,614		3,209,461

For the concentration risk disclosure, please refer to Note 9.

Financial Instruments

The Company’s consolidated financial instruments consist primarily of cash, accounts receivable, prepaid expenses, inventory and other assets, accounts payable and accrued expenses and other payables. The carrying amounts of such financial instruments approximate their respective estimated fair value due to their short-term maturities.

Concentrations of Credit Risks

The Company’s exposure to concentrations of credit risk primarily related to its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company’s management assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

9

Inventory

Inventory is stated at the lower of cost (weighted average) or net realizable value. The company’s inventory is constantly monitored for obsolescence. This is based on the management’s estimates and they have taken into considerations factors such as turnover, technical obsolescence, right of return status to suppliers and price protection offered by suppliers. These estimates are necessarily subject to a degree of measurement uncertainty. Reserves for slow-moving and obsolete inventory at December 31, 2016 were $0 (2015 - $0).

Related Parties

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions see Note 8.

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use.

The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are retired or sold, the asset’s cost and related accumulated depreciation are eliminated with any remaining gain or loss recognized in net earnings.

Depreciation of plant and equipment, is recorded on the straight-line method over estimated useful lives, generally as follows:

	Years
Production equipment	5 - 10
Vehicles	3 - 15
Office equipment	5 - 10

Impairment of long-lived assets

We evaluate carrying value of long-lived assets whenever events or changes in circumstances would indicate that it is more likely than not their carrying values may exceed their realizable values, and records impairment charges when considered necessary.

When circumstances indicate that impairment may have occurred, the Company tests such assets for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of such assets and their eventual disposition to their carrying amount. In estimating these future cash flows, assets and liabilities are grouped at a lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other such groups. If the undiscounted future cash flows are less than the carrying amount of the asset, an impairment loss, measured as the excess of the carrying value of the asset over its estimated fair value, is recognized. Fair values are determined based on discounted cash flows, quoted market values or external appraisals as applicable.

Deferred Revenue

Deferred revenue are services billed to customers for which the services have not been fully performed. At December 31, 2016 and 2015, deferred revenue was $363,818 and $92,984, respectively.

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes.” The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. As at December 31, 2016 and 2015, the Company did not have any amounts recorded pertaining to uncertain tax positions.

10

Uncertain Tax Positions

The Company follows guidance issued by the FASB regarding accounting for uncertainty in income taxes. This guidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an income tax position is required to meet before being recognized in the financial statements and applies to all income tax positions. Each income tax position is assessed using a two-step process. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement.

The Company records income tax related interest and penalties as a component of the provision for income tax expense. As of December 31, 2016 and 2015, the Company determined there were no uncertain tax provisions.

Earnings (Loss) Per Share

The Company has adopted ASC 260, “Earnings Per Share,” (“EPS”) which requires presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying consolidated statements of operations and comprehensive loss, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

The Company had no potentially dilutive securities, such as convertible debt, options or warrants, issued and outstanding during years ended December 31, 2016 and 2015.

Revenue Recognition

The Company recognizes revenue only when all of the following criteria have been met:

i)	Persuasive evidence for an agreement exists;
ii)	Service has been provided;
iii)	The fee is fixed or determinable; and,
iv)	Collection is reasonably assured.

Recent Accounting Pronouncements

The FASB has issued Accounting Standards Update (ASU) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, clarifying the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. They also provide more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable. For public companies, the amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company does not anticipate the adoption of ASU 2017-01 will have a material impact on its consolidated financial statements.

NOTE 3 – INVENTORY

Inventory at December 31, 2016 and 2015 consist of the following:

	December 31, 2016		December 31, 2015
Raw material	$	98,282	$	509,708
Work in progress		71,896		97,274
Finished goods		258,424		1,041
Consigned processing materials		-		21,357
Reusable materials		-		15
	$	428,602	$	629,395

11

NOTE 4 – NOTES RECEIVABLE

Notes receivable at December 31, 2016 and 2015 amounted to $795,062 and $64,495, respectively.

The amounts are interest free, unsecured and have no fixed terms of repayment. As at 31 December 2016 and 2015, there were no interest due and outstanding and no provisions had been made for non-repayment of the loan or interest.

NOTE 5 – PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2016 and 2015, consist of the following:

	December 31, 2016			December 31, 2015
Cost:
Production equipment	$	140,249		$	137,240
Vehicle		813,747			880,024
Office equipment		11,264			10,810
		965,260			1,028,074
Less: accumulated depreciation		(281,613	)		(283,999	)
Property and equipment, net	$	683,647		$	744,075

Depreciation expense for the years ended December 31, 2016 and 2015 amounted to $102,967 and $91,368, respectively.

NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED LABILITIES

Accounts payable and accrued liabilities at December 31, 2016 and 2015, consist of the following:

	December 31, 2016		December 31, 2015
Accounts payable	$	2,704,259	$	707,792
Accrued payroll		117,269		94,246
Total	$	2,821,528	$	802,038

	December 31, 2016		December 31, 2015
Accounts payable
Within 1 year	$	2,677,531	$	456,342
1 - 2 year		-		251,450
2 - 3 year		26,728		-
Total	$	2,704,259	$	707,792

NOTE 7 – LOAN PAYABLE

As of December 31, 2016, and 2015, the Company had loan payable of $0 and $184,800, respectively. The term is from December 24, 2013 to December 23, 2018 and the interest rate is 6.4125% per annum. During the year ended December 31, 2016 and 2015, the Company repaid $180,600 and $81,220, respectively. The Company fully paid back all the loan in March 2016. The difference between the loan payable as of December 31, 2015 and the loan repayment in 2016 was recorded as exchange difference.

Interest expenses for the years ended December 31, 2016 and 2015 amounted to $2,701 and $21,874, respectively.

NOTE 8 – RELATED PARTY TRANSACTIONS

Due from related parties

12

Due from related parties at December 31, 2016 and 2015 consist of the following:

Related party	December 31, 2016		December 31, 2015		Relationship with the Company
Chen Zhongpeng	$	-	$	263,308	Company’s legal representative
Huang Dewu		-		193,660	Company’s legal representative
Chen Qiuying		-		77,000	Company’s supervisor
	$	-	$	533,968

The amounts were interest free, unsecured and had no fixed terms of repayment.

Due to related parties

Due to related parties at December 31, 2016 and 2015 consist of the following:

Related party	December 31, 2016		December 31, 2015		Relationship with the Company
Chen Zhongpeng	$	459,232	$	-	Company’s legal representative
Yang Bihua		1,957		58,071	Company’s legal representative
Huang Dewu		15,807		-	Company’s legal representative
Ding Yinping		750,842		867,524	Company’s legal representative
Huang Jinlong		1,091,348		1,080,660	Company’s supervisor
Shareholders for acquisition of subsidiaries		1,580,844		-	Shareholders under common control
	$	3,900,030	$	2,006,255

The amounts were interest free, unsecured and had no fixed terms of repayment. The amounts owed to the shareholders for the acquisition of subsidiaries of $1,580,844 (2015: nil) was paid in May 2017.

NOTE 9 – CONCENTRATION OF CREDIT RISKS

The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, or whose accounts payable balances individually represented 10% or more of the Company’s total accounts payable, the details of which are set out as follows:

For the years ended December 31, 2016 and 2015, five customers accounted for 43% and five customer accounted for 54% of the revenue of the Company, respectively.

At December 31, 2016 and 2015, five customers accounted for 74% and five customers accounted for 94% of the accounts receivable of the Company, respectively.

NOTE 10 – INCOME TAX

Yingxi was incorporated on August 4, 2016 in the Republic of Seychelles. Its subsidiary YICI was incorporated on July 28, 2016 in Hong Kong China. YICI’s subsidiaries DHSW, QYTG, SCDT, SHPF, SQYI and SXKJ were incorporated on May 15, 2009, November 29, 2016, May 13, 1982, July 6, 2006, January 29, 2016, and September 28, 2001 respectively in China.

The Company operates in China and they file their tax returns in accordance with China’s laws and regulations.

Provision for income taxes for the years ended December 31, 2016 and 2015 were $35,989 and $20,439 respectively. The income tax rate for the years 2016 and 2015 are 25% in China. However, DHSE enjoyed a preferential income tax rate at 10% for the years 2016 and 2015. Whereas SHPF enjoyed a preferential income tax rate at 10% for the year 2016.

YICI does not generate any income during the two years and hence does not have to pay any Hong Kong Profits tax.

13

NOTE 11 – SHAREHOLDERS’ EQUITY

Common Stock

The Company is authorized to issue 250,000,000 shares of common stock at a par value of $0.0004.

On August 4, 2016, 250,000,000 shares were issued to the founders for $100,000.

As of December 31, 2016, the Company had 250,000,000 shares of common stock issued and outstanding.

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

NOTE 12 – SUBSEQUENT EVENTS

The Company has analyzed its operations subsequent to June 30, 2017, through the date these financials were approved to be issued, and has determined that it does not have any material events.

14

EX-99.2

YINGXI INDUSTRIAL CHAIN GROUP CO., LTD

INDEX TO INTERIM FINANCIAL STATEMENTS

TABLE OF CONTENTS

(UNAUDITED)

	Page
Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016	2
Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2017 and 2016	3
Consolidated Statements of Cash Flows for Six Months Ended June 30, 2017 and 2016	4
Notes to the Consolidated Financial Statements	5

1

YINGXI INDUSTRIAL CHAIN GROUP CO., LTD

CONSOLIDATED BALANCE SHEETS

	June 30, 2017			December 31, 2016
	(Unaudited)			(Audited)
ASSETS
Current Assets
Cash and cash equivalents	$	1,098,254		$	227,687
Accounts receivable		4,779,708			5,415,614
Notes receivable		1,131,898			795,062
Due from related parties		21,824			-
Inventory		454,272			428,602
Prepaid expenses		962,722			412,598
Other current assets		63,292			61,766
Total Current Assets		8,511,970			7,341,329
Property and equipment, net		648,459			683,647
TOTAL ASSETS	$	9,160,429		$	8,024,976
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued liabilities	$	2,764,288		$	2,821,528
Loan payable		2,655,000			-
Deferred revenue		225,423			363,818
Due to related parties		2,751,534			3,900,030
Tax payable		24,636			108,438
Other current liabilities		161,249			131,760
Total Current Liabilities		8,582,130			7,325,574
Long-term loan payable		1,475,000			-
TOTAL LIABILITIES		10,057,130			7,325,574
COMMITMENTS AND CONTINGENCIES		-			-
STOCKHOLDERS’ EQUITY (DEFICIT)
Common stock, $0.0004 par value; 250,000,000 shares authorized; 250,000,000 shares issued and outstanding, respectively		100,000			100,000
Additional paid-in capital (deficiency)		(1,062,501	)		374,499
Retained earnings		209,845			345,219
Accumulated other comprehensive loss		(144,045	)		(120,316	)
Total stockholders’ equity (deficit)		(896,701	)		699,402
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	9,160,429		$	8,024,976

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

2

YINGXI INDUSTRIAL CHAIN GROUP CO., LTD

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Revenue	$	4,208,819		$	3,615,869		$	7,292,010		$	6,850,617
Cost of revenue		3,937,257			3,136,863			6,746,056			5,942,449
Gross Profit		271,562			479,006			545,954			908,168
Operating Expense
General and administrative		382,167			404,877			676,827			767,546
Total Operating Expenses		382,167			404,877			676,827			767,546
Operating Income (Loss)		(110,605	)		74,129			(130,873	)		140,622
Other Expense
Interest expense		-			-			-			(2,701	)
Other expense		(1,888	)		(4,737	)		(2,173	)		(4,969	)
Total Other expense		(1,888	)		(4,737	)		(2,173	)		(7,670	)
Income Before Income Taxes		(112,493	)		69,392			(133,046	)		132,952
Provision for income taxes		(2,176	)		(10,486	)		(2,328	)		(17,361	)
Net Income (Loss)		(114,669	)		58,906		$	(135,374	)	$	115,591
Other Comprehensive Income (Loss)
Foreign currency translation adjustments		(29,985	)		(62,289	)		(23,729	)		(53,772	)
Total Comprehensive Income (Loss)		(144,654	)		(3,383	)		(159,103	)		61,819
Basic and Diluted Loss per Common Share	$	(0.00	)	$	0.00		$	(0.00	)	$	0.00
Basic and Diluted Weighted Average Common Shares Outstanding		250,000,000			250,000,000			250,000,000			250,000,000

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

3

YINGXI INDUSTRIAL CHAIN GROUP CO., LTD

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended
	June 30,
	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$	(135,374	)	$	115,591
Adjustments to reconcile net income to net cash from operating activities:
Depreciation		52,652			35,185
Changes in operating assets and liabilities:
Accounts receivable		755,557			(249,526	)
Inventory		(14,171	)		(223,589	)
Prepaid expenses		(532,999	)		(226,416	)
Other receivable		107			8,810
Accounts payable		(115,753	)		1,373,576
Deferred revenue		(146,309	)		(89,356	)
Tax payable		(85,671	)		25,853
Other payable		25,705			(15,740	)
Net cash provided by (used in) operating activities		(196,256	)		754,388
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of subsidiary		(1,458,000	)		-
Purchase of property and equipment		-			(20,434	)
Note receivable		(312,173	)		(990,070	)
Loan to related parties, net		(23,613	)		(41,413	)
Net cash used in investing activities		(1,793,786	)		(1,051,917	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceed from borrowings		4,082,400			-
Repayment of loans		-			(183,720	)
Loans from related parties, net		(1,235,162	)		506,018
Net cash provided by financing activities		2,847,238			322,298
Effects on changes in foreign exchange rate		13,371			6,402
Net increase in cash and cash equivalents		870,567			31,171
Cash and cash equivalents - beginning of period		227,687			123,133
Cash and cash equivalents - end of period	$	1,098,254		$	154,304
Supplemental Cash Flow Disclosures
Cash paid for interest and income tax	$	-		$	2,701
Cash paid for income taxes	$	-		$	-

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

4

YINGXI INDUSTRIAL CHAIN GROUP CO., LTD

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2017

(Unaudited)

(All English names of the companies, except Yingxi Industrial Chain Investment Co., Ltd, and natural persons in this report are not their official English names but are stated here for identification purpose only.)

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Yingxi Industrial Chain Group Co., Ltd. (“the Company”, “we”, “us” or “our”, Yingxi”) was incorporated on August 4, 2016 in the Republic of Seychelles. During the reporting period, the Company was mainly engaged in textile and garment manufacturing and providing logistics services to its customers. The Company also provides business consultancy to their customers in assisting them to identify weaknesses in their operation in order to optimize their efficiency. The Company also assists their customers in improving their supply chain management which involves the movement and storage of raw materials, of work in progress inventory, and of finished goods from point of origin to point of consumption.

Recent Developments

Our subsidiaries were controlled by the same owners immediately prior to their acquisition by Yingxi. As a result of the acquisition of the subsidiaries by Yingxi, they became 100% owned subsidiaries of Yingxi. As these transactions are between entities under common control, the Company has reported the results of operations for the period in a manner similar to a pooling of interests and has consolidated financial results since the initial date in which the above companies were under common control. Assets and liabilities were combined on their carrying values and no recognition of goodwill was made. The Company has presented earnings per share based on the new parent company shares issued to the former shareholders of the Company.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Regulation S-X. These interim unaudited consolidated financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2016, thereto contained herein.

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the consolidated financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

Basis of Consolidation

These consolidated financial statements include the accounts of Yingxi Industrial Chain Group Co., Ltd and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.

Principal of subsidiaries

The details of the principal subsidiaries of Yingxi are set out as follows:

Name of subsidiaries	Place of incorporation	Percentage of interest			Principal activities
Shares held directly
Yingxi Industrial Chain Investment Co., Ltd (“YICI”)	Hong Kong China		100	%	Investment holdings
Shares held indirectly
Dongguan Heng Sheng Wei Garments Co., Ltd (“DHSW”)	China		100	%	Garment manufacturing and business consultancy
Qianhai Yingxi Textile and Garments Co., Ltd  (“QYTG”)	China		100	%	Investment holdings
Shantou Chenghai Dai Tou Garments Co., Ltd (“SCDT”)	China		100	%	Garment manufacturing
Shenzhen Hua Peng Fa Logistics Co., Ltd (“SHPF”)	China		100	%	Logistics and business consultancy
Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd (“SQYI”)	China		100	%	Investment holdings
Shenzhen Xin Kuai Jie Transport Co., Ltd (“SXKJ”)	China		100	%	Logistics

5

Use of Estimates

The preparation of the consolidated financial statements are in conformity with the GAAP that requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Foreign Currency Translation

The Company’s reporting currency is the U.S. Dollars (“USD”). The functional currency of the Company and its subsidiaries is Chinese Yuan Renminbi (“RMB”). All transactions initiated in RMB are translated into USD in accordance with ASC 830, “Foreign Currency Matters,” as follows:

i)	Assets and liabilities at the rate of exchange in effect at the balance sheet date.
ii)	Equities at historical rate
iii)	Revenue and expense items at the average rate of exchange prevailing during the period.

Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity.

	June 30, 2017		December 31, 2016		June 30, 2016
Spot CNY: USD exchange rate	$	0.1475	$	0.1437	$	0.1504
Average CNY: USD exchange rate	$	0.1452 - 0.1458	$	0.1505	$	0.1529 - 0.1531
Spot HKD: USD exchange rate	$	0.1289	$	0.1289	$	0.1289
Average HKD: USD exchange rate	$	0.1289	$	0.1289	$	0.1289

Accounts Receivable

The Company’s accounts receivable consists of trade receivables from customers. The Company maintains an allowance for doubtful accounts based on the Company’s assessment of collectability of the customer receivable. The Company analyzes past history with a customer, customer credit, collection history, and financial condition when evaluating the collectability of customer accounts. Uncollectible accounts are charged off to the allowance when it is deemed probable that the receivable will not be recovered.

	June 30, 2017		December 31, 2016
Within 1 year	$	3,411,587	$	3,985,638
1 - 2 year		1,368,121		1,429,976
		4,779,708		5,415,614

For the concentration risk disclosure, please refer to Note 9.

6

Financial Instruments

The Company’s consolidated financial instruments consist primarily of cash, accounts receivable, prepaid expenses, inventory and other assets, accounts payable and accrued expenses and other payables. The carrying amounts of such financial instruments approximate their respective estimated fair value due to their short-term maturities.

Concentrations of Credit Risks

The Company’s exposure to concentrations of credit risk primarily related to its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company’s management assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

Inventory

Inventory is stated at the lower of cost (weighted average) or net realizable value. The Company’s inventory is constantly monitored for obsolescence. This is based on the management’s estimates and they have taken into considerations factors such as turnover, technical obsolescence, right of return status to suppliers and price protection offered by suppliers. These estimates are necessarily subject to a degree of measurement uncertainty. Reserves for slow-moving and obsolete inventory at June 30, 2017 were $0 and at December 31, 2016 were $0.

Related Parties

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions see Note 8.

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use.

The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are retired or sold, the asset’s cost and related accumulated depreciation are eliminated with any remaining gain or loss recognized in net earnings.

Depreciation of plant and equipment, is recorded on the straight-line method over estimated useful lives, generally as follows:

	Years
Production equipment	5 - 10
Vehicles	3 - 15
Office equipment	5 - 10

Impairment of long-lived assets

We evaluate carrying value of long-lived assets whenever events or changes in circumstances would indicate that it is more likely than not their carrying values may exceed their realizable values, and records impairment charges when considered necessary.

When circumstances indicate that impairment may have occurred, the Company tests such assets for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of such assets and their eventual disposition to their carrying amount. In estimating these future cash flows, assets and liabilities are grouped at a lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other such groups. If the undiscounted future cash flows are less than the carrying amount of the asset, an impairment loss, measured as the excess of the carrying value of the asset over its estimated fair value, is recognized. Fair values are determined based on discounted cash flows, quoted market values or external appraisals as applicable.

Deferred Revenue

Deferred revenue are services billed to customers for which the services have not been fully performed. As of June 30, 2017 and December 31, 2016, deferred revenue were $225,423 and $363,818, respectively.

7

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes.” The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

Uncertain Tax Positions

The Company follows guidance issued by the FASB regarding accounting for uncertainty in income taxes. This guidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an income tax position is required to meet before being recognized in the financial statements and applies to all income tax positions. Each income tax position is assessed using a two-step process. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement.

The Company records income tax related interest and penalties as a component of the provision for income tax expense. As of June 30, 2017 and December 31, 2016, the Company determined there were no uncertain tax provisions.

Earnings (Loss) Per Share

The Company has adopted ASC 260, “Earnings Per Share,” (“EPS”) which requires presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying consolidated statements of operations and comprehensive loss, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

The Company had no potentially dilutive securities, such as convertible debt, options or warrants, issued and outstanding during the six months ended June 30, 2017 and 2016.

Revenue Recognition

The Company recognizes revenue only when all of the following criteria have been met:

i)	Persuasive evidence for an agreement exists;
ii)	Service has been provided;
iii)	The fee is fixed or determinable; and,
iv)	Collection is reasonably assured.

Recent Accounting Pronouncements

The Company has reviewed all other recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our consolidated financial statements.

NOTE 3 – INVENTORY

Inventory at June 30, 2017 and December 31, 2016 consist of the following:

	June 30, 2017		December 31, 2016
Raw material	$	177,784	$	98,282
Work in progress		11,231		71,896
Finished goods		265,257		258,424
	$	454,272	$	428,602

8

NOTE 4 – NOTES RECEIVABLE

Note receivable at June 30, 2017 and December 31, 2016 amounted to $1,131,898 and $795,062, respectively.

The amounts are interest free, unsecured and have no fixed terms of repayment. As at June 30, 2017 and December 31, 2016, there were no interest due and outstanding and no provision had been made for non-repayment of the loan or interest.

NOTE 5 – PROPERTY AND EQUIPMENT

Property and equipment at June 30, 2017 and December 31, 2016, consist of the following:

	June 30, 2017			December 31, 2016
Cost:
Production equipment	$	143,957		$	140,249
Means of transport		835,267			813,747
office equipment		11,561			11,264
		990,785			965,260
Less: accumulated depreciation		(342,326	)		(281,613	)
	$	648,459		$	683,647

Depreciation expense for the six months ended June 30, 2017 and 2016 amounted to $52,652 and $35,185, respectively.

NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities at June 30, 2017 and December 31, 2016, consist of the following:

	June 30, 2017		December 31, 2016
Accounts payable	$	2,659,689	$	2,704,259
Accrued payroll		104,599		117,269
Total	$	2,764,288	$	2,821,528

	June 30, 2017		December 31, 2016
Accounts payable
Within 1 year	$	2,511,753	$	2,677,531
1 - 2 year		147,936		-
2 - 3 year		-		26,728
Total	$	2,659,689	$	2,704,259

NOTE 7 – LOAN PAYABLE

The components of our long-term debt including the current portion, and the associated interest rates, were as follows as of June 30, 2017 and December 31, 2016:

	June 30, 2017		December 31, 2016
Loan payable with no interest and 3 years maturity	$	1,475,000	$	-
Loan payable with no interest and 1 year maturity		2,655,000		-
		4,130,000		-
Current portion of loans payable		2,655,000		-
Long-term loans payable	$	1,475,000	$	-

9

During the six months ended June 30, 2017 and 2016, the Company borrowed $4,130,000 and $0, and repaid $0 and 183,720, respectively.

Interest expenses for the six months ended June 30, 2017 and 2016 amounted to $0 and $2,701, respectively.

NOTE 8 – RELATED PARTY TRANSACTIONS

Due from related parties

Due from related parties at June 30, 2017 and December 31, 2016 consist of as follows:

Related Party Name	June 30,2017		December 31, 2016		Relationship with the Company
Hong Zhida	$	20,871	$	-	CEO
Chen Zhongpeng		953		-	Company’s legal representative
	$	21,824	$	-

The amounts were interest free, unsecured and had no fixed terms of repayment.

Due to related parties

Due to related parties at June 30, 2017 and December 31, 2016 consist of as follows:

Related Party Name	June 30, 2017		December 31, 2016		Relationship with the Company
Yang Bihua	$	18,276	$	1,957	Company’s legal representative
Ding Yinping		501,245		750,842	Company’s legal representative
Huang Jinlong		1,289,950		1,091,348	Company’s supervisor
Chen Zhongpeng		814,688		459,232	Company’s legal representative
Huang Dewu		127,375		15,807	Company’s legal representative
Shareholders of acquired subsidiaries		-		1,580,844
	$	2,751,534	$	3,900,030

The amounts were interest free, unsecured and had no fixed terms of repayment. The amounts owing to shareholders of the acquired subsidiaries totaling $1,580,844 (2015: nil) , was paid in May 2017.

NOTE 9 – CONCENTRATION OF CREDIT RISKS

The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, or whose accounts payable balances individually represented 10% or more of the Company’s total accounts payable, the details of which are set out as follows:

For the six months ended June 30, 2017 and the years ended December 31, 2016, five customers accounted for 52% and five customer accounted for 43% of the revenue of the Company, respectively.

At June 30, 2017 and December 31, 2016, five customers accounted for 76% and five customers accounted for 74% of the accounts receivable of the Company, respectively.

10

NOTE 10 – INCOME TAX

Yingxi was incorporated on August 4, 2016 in the Republic of Seychelles. Its subsidiary YICI was incorporated on July 28, 2016 in Hong Kong China. YICI’s subsidiaries DHSW, QYTG, SCDT, SHPF, SQYI and SXKJ were incorporated on May 15, 2009, November 29, 2016, May 13, 1982, July 6, 2006, January 29, 2016, and September 28, 2001 respectively in China.

The Company operates in China and they file their tax returns in accordance with China’s laws and regulations.

Provision for income taxes for the six months ended 30 June, 2017 and the years ended December 31, 2016 were $2,328 and $35,989 respectively. The income tax rate for the years 2017 and 2016 are 25% in China. However, DHSW enjoyed a preferential income tax rate at 10% for the year 2016. Whereas SHPF enjoyed a preferential income tax rate at 10% for the year 2016.

YICI does not generate any income during the two years and hence does not have to pay any Hong Kong Profits tax.

NOTE 11 – SHAREHOLDERS’ EQUITY

Common Stock

The Company is authorized to issue 250,000,000 shares of common stock at a par value of $0.0004.

On August 4, 2016, 250,000,000 shares were issued to the founders for $100,000.

As of June 30, 2017, the Company had 250,000,000 shares of common stock issued and outstanding.

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

NOTE 12 –SUBSEQUENT EVENTS

The Company has analyzed its operations subsequent to June 30, 2017, through the date these financials were approved to be issued, and has determined that it does not have any material events.

11

EX-99.3

Exhibit 99.3

ADDENTAX GROUP CORP.

UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

The following unaudited pro forma combined financial statements give effect to the sale purchase transaction (the “Transaction”) between Addentax Group Corp. (the “Company”, “Addentax”, “we”, “us”, “our”) and Yingxi Industrial Chain Group Co. Ltd. (“YICG”).

Addentax Group Corp.

Pro Forma

Balance Sheet - Unaudited

June 30, 2017

	Addentax Group Corp.			Yingxi Industrial Chain Group Co., Ltd.			Proforma			Proforma
	June 30, 2017			June 30, 2017			Adjustments			AS Adjusted
ASSETS
Current Assets
Cash and cash equivalents	$	-		$	1,098,254		$	-		$	1,098,254
Accounts receivable		-			4,779,708			-			4,779,708
Notes Receivables		-			1,131,898			-			1,131,898
Due from related parties		-			21,824			-			21,824
Inventory		-			454,272			-			454,272
Prepaid expenses		5,831			962,722			-			968,553
Other current assets		-			63,292			-			63,292
Total Current Assets		5,831			8,511,970			-			8,517,801
Property and equipment, net		-			648,459			-			648,459
TOTAL ASSETS		5,831			9,160,429			-			9,166,260
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable and accrued liabilities	$	395		$	2,764,288		$	-		$	2,764,683
Loan payable		-			2,655,000			-			2,655,000
Deferred revenue		-			225,423			-			225,423
Due to related parties		43,987			2,751,534			-			2,795,521
Tax payable		-			24,636			-			24,636
Other current liabilities		-			161,249			-			161,249
Total Current Liabilities		44,382			8,582,130			-			8,626,512
Long-term loans payable		-			1,475,000			-			1,475,000
TOTAL LIABILITIES		44,382			10,057,130			-			10,101,512
STOCKHOLDERS’ DEFICIT
Common stock: 1,000,000,000 shares authorized; $0.001 par value; 506,920,000 pre merger and 506,920,000 post merger shares issued, respectively		506,920			-			-			506,920
Common stock: 250,000,000 shares authorized; $0.0004 par value; 250,000,000 shares issued and outstanding, respectively		-			100,000			(100,000	)		-
Additional paid in capital (deficiency)		41,647			(1,062,501	)		(487,118	)		(1,507,972	)
Treasury stock at cost, 500,000,000 shares		(500,000	)		-			500,000			-
Retained earnings (deficit)		(87,118	)		209,845			87,118			209,845
Accumulated other comprehensive loss		-			(144,045	)		-			(144,045	)
Total stockholders’ deficit		(38,551	)		(896,701	)		-			(935,252	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	5,831		$	9,160,429		$	-		$	9,166,260

See notes to the unaudited pro forma combined financial statements

Addentax Group Corp.

Pro Forma

Statement of Operations and Comprehensive Loss - Unaudited

For the Three Month Period Ended June 30, 2017

	Addentax Group Corp.			Yingxi Industrial Chain Group Co., LTD
	Three Months Ended			Three Months Ended			Proforma			Proforma
	June 30, 2017			June 30, 2017			Adjustment			As Adjusted
Revenue	$	-		$	4,208,819		$	-		$	4,208,819
Cost of revenue		-			(3,937,257	)		-			(3,937,257	)
Gross Profit		-			271,562			-			271,562
Operating Expenses
General and administrative		24,948			382,167			(24,948	)		382,167
Total Operating Expenses		24,948			382,167			(24,948	)		382,167
Operating Loss		(24,948	)		(110,605	)		24,948			(110,605	)
Other Expense
Other expense		-			(1,888	)		-			(1,888	)
Total Other Income		-			(1,888	)		-			(1,888	)
Loss Before Income Taxes		(24,948	)		(112,493	)		24,948			(112,493	)
Provision for income taxes		-			(2,176	)		-			(2,176	)
Net Loss	$	(24,948	)	$	(114,669	)	$	24,948		$	(114,669	)
Other Comprehensive Income (Loss)
Foreign currency translation loss		-			(29,985	)		-			(29,985	)
Total Comprehensive Loss	$	(24,948	)	$	(144,654	)	$	24,948		$	(144,654	)
Basic and Diluted Loss per Common Share	$	(0.00	)	$	(0.00	)				$	(0.00	)
Basic and Diluted Weighted Average Common Shares Outstanding*		6,920,000			250,000,000						506,920,000

* Proforma as adjusted shares are not weighted and are actual shares issued and outstanding.

See notes to the unaudited pro forma combined financial statements

Addentax Group Corp.

NOTES TO THE UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

On September 14, 2017, Addentax Group Corp. (“Addentax”, the “Company”), a company incorporated under the laws of the State of Nevada, USA and Yingxi Industrial Chain Group Co. Ltd. (“Yingxi”) and the Yingxi Shareholders entered into an agreement in which Addentax agreed to acquire all of the issued and outstanding Yingxi Common Shares from the Yingxi Shareholders in exchange for the issuance by the Company to the Yingxi Shareholders of 500,000,000 shares of Common Stock issued as payment for the Business Assets of Yingxi.

The 500,000,000 shares of Addentax issued as payment for the Business Assets of Yingxi will be restricted shares as required by Rule 144 of the United States Securities Act (the “Act” and shall display a restrictive legend as required by the United States Securities and Exchange Act.)

1. BASIS OF PRO FORMA PRESENTATION

The unaudited pro forma condensed combined balance sheets have been derived from the historical June 30, 2017 balance sheet of Yingxi after giving effect to the acquisition with Addentax Group Corp. The pro forma balance sheet and statement of operations and comprehensive loss present this transaction as if they had been consummated as of June 30, 2017, as required under Article 11 of Regulation S-X.

Historical financial information has been adjusted in the pro forma balance sheet to pro forma events that are: (1) directly attributable to the Acquisition; (2) factually supportable; and (3) expected to have a continuing impact on the Company’s results of operations. The pro forma adjustments presented in the pro forma condensed combined balance sheet and statement of operations are described in Note 3— Pro Forma Adjustments.

The unaudited pro forma combined financial information is for illustrative purposes only. These companies may have performed differently had they actually been combined for the periods presented. You should not rely on the pro forma condensed combined financial information as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the combined companies will experience after the merger. Unaudited pro forma financial information and the notes thereof should be read in conjunction with the accompanying historical financial statements of Yingxi included elsewhere in this report.

2. ACCOUNTING PERIODS PRESENTED

Certain pro forma adjustments were made to conform Yingxi’s accounting policies to the Company’s accounting policies as noted below.

The unaudited pro forma condensed combined balance sheet as of June 30, 2017 is presented as if the Yingxi acquisition had occurred on June 30, 2017, and combines the historical balance sheet of the Company at June 30, 2017 and the historical balance sheet of Yingxi at June 30, 2017.

The unaudited pro forma condensed combined statement of operations and comprehensive loss of the Company and Yingxi for the three months ended June 30, 2017 are presented as if the acquisition had taken place on June 30, 2017. The pro forma statement of operations and comprehensive loss for the three months ended June 30, 2017 combines the historical results of the Company for the three months ended June 30, 2017 and the historical results of Yingxi for three months ended June 30, 2017.

3. PRO FORMA ADJUSTMENTS

The adjustments included in the pro forma balance sheet and statement of operations and comprehensive loss are as follows:

● To record 500,000,000 shares of Addentax unregistered common stock issued in exchange for 250,000,000 shares of common stock of Yingxi Industrial Chain Group Co., Ltd.

● To eliminate the accumulated loss of Addentax incurred before the reverse acquisition.

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2017
Document And Entity Information
Entity Registrant Name	ADDENTAX GROUP CORP.
Entity Central Index Key	0001650101
Document Type	8-K
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Entity Filer Category	Smaller Reporting Company
Document Fiscal Year Focus	2017

XML

Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
STOCKHOLDERS' EQUITY (DEFICIT)
Total stockholders' equity (Deficit)		$ 699,402	$ 2,203,522
Yingxi Industrial Chain Group Co Ltd [Member]
Current Assets
Cash and cash equivalents	$ 1,098,254	227,687	123,133
Accounts receivable	4,779,708	5,415,614	3,209,461
Notes receivable	1,131,898	795,062	64,495
Due from related parties	21,824		533,968
Inventory	454,272	428,602	629,395
Prepaid expenses	962,722	412,598	43,695
Other current assets	63,292	61,766	10,757
Total Current Assets	8,511,970	7,341,329	4,614,904
Property and equipment, net	648,459	683,647	744,075
TOTAL ASSETS	9,160,429	8,024,976	5,358,979
Current Liabilities
Accounts payable and accrued liabilities	2,764,288	2,821,528	802,038
Loan payable	2,655,000		184,800
Deferred revenue	225,423	363,818	92,984
Due to related parties	2,751,534	3,900,030	2,006,255
Tax payable	24,636	108,438	12,698
Other current liabilities	161,249	131,760	56,682
Total Current Liabilities	8,582,130	7,325,574	3,155,457
Long-term loan payable	1,475,000
TOTAL LIABILITIES	10,057,130	7,325,574	3,155,457
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, $0.0004 par value; 250,000,000 shares authorized; 250,000,000 shares issued and outstanding, respectively	100,000	100,000	100,000
Additional paid-in capital (deficiency)	(1,062,501)	374,499	2,047,600
Retained earnings	209,845	345,219	215,394
Accumulated other comprehensive loss	(144,045)	(120,316)	(159,472)
Total stockholders' equity (Deficit)	(896,701)	699,402	2,203,522
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 9,160,429	$ 8,024,976	$ 5,358,979

XML

Consolidated Balance Sheets (Parenthetical) - Yingxi Industrial Chain Group Co Ltd [Member] - $ / shares	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Common stock, par value	$ 0.0004	$ 0.0004	$ 0.0004
Common stock, shares authorized	250,000,000	250,000,000	250,000,000
Common stock, shares issued	250,000,000	250,000,000	250,000,000
Common stock, shares outstanding	250,000,000	250,000,000	250,000,000

XML

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Other Expense
Net Income (Loss)					$ 129,825	$ 6,229
Yingxi Industrial Chain Group Co Ltd [Member]
Revenue	$ 4,208,819	$ 3,615,869	$ 7,292,010	$ 6,850,617	14,427,141	9,294,356
Cost of revenue	3,937,257	3,136,863	6,746,056	5,942,449	12,751,777	7,950,642
Gross Profit	271,562	479,006	545,954	908,168	1,675,364	1,343,714
Operating Expense
General and administrative	382,167	404,877	676,827	767,546	1,516,876	1,474,278
Total Operating Expenses	382,167	404,877	676,827	767,546	1,516,876	1,474,278
Operating Income (Loss)	(110,605)	74,129	(130,873)	140,622	158,488	(130,564)
Other Expense
Other income					17,755	193,248
Interest expense				(2,701)	(2,701)	(21,874)
Other expense	(1,888)	(4,737)	(2,173)	(4,969)	(7,728)	(14,142)
Total Other expense	(1,888)	(4,737)	(2,173)	(7,670)	7,326	157,232
Income Before Income Taxes	(112,493)	69,392	(133,046)	132,952	165,814	26,668
Provision for income taxes	(2,176)	(10,486)	(2,328)	(17,361)	(35,989)	(20,439)
Net Income (Loss)	(114,669)	58,906	(135,374)	115,591	129,825	6,229
Other Comprehensive Income (Loss)
Foreign currency translation adjustments	(29,985)	(62,289)	(23,729)	(53,772)	39,156	(101,758)
Total Comprehensive Income (Loss)	$ (144,654)	$ (3,383)	$ (159,103)	$ 61,819	$ 168,981	$ (95,529)
Basic and Diluted Loss per Common Share	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Basic and Diluted Weighted Average Common Shares Outstanding	250,000,000	250,000,000	250,000,000	250,000,000	250,000,000	250,000,000

XML

Consolidated Statements of Stockholders’ Equity - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balance at Dec. 31, 2014	$ 100,000	$ 2,047,600	$ 209,165	$ (57,714)	$ 2,299,051
Balance, shares at Dec. 31, 2014	250,000,000
Common shares issued for cash
Common shares issued for cash, shares
Foreign currency translation adjustments				(101,758)	(101,178)
Net loss			6,229		6,229
Balance at Dec. 31, 2015	$ 100,000	2,047,600	215,394	(159,472)	2,203,522
Balance, shares at Dec. 31, 2015	250,000,000
Acquisition of subsidiaries		(1,673,101)			(1,673,101)
Foreign currency translation adjustments				39,156	39,156
Net loss			129,825		129,825
Balance at Dec. 31, 2016	$ 100,000	$ 374,499	$ 345,219	$ (120,316)	$ 699,402
Balance, shares at Dec. 31, 2016	250,000,000

XML

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)			$ 129,825	$ 6,229
Yingxi Industrial Chain Group Co Ltd [Member]
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ (135,374)	$ 115,591	129,825	6,229
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	52,652	35,185	102,967	91,368
Changes in operating assets and liabilities:
Accounts receivable	755,557	(249,526)	(2,520,317)	(327,054)
Inventory	(14,171)	(223,589)	166,207	(2,006)
Prepaid expenses	(532,999)	(226,416)	(389,421)	225,727
Other receivable	107	8,810	(54,178)	977,656
Accounts payable	(115,753)	1,373,576	2,156,185	18,984
Deferred revenue	(146,309)	(89,356)	290,162	(327,695)
Tax payable	(85,671)	25,853	101,160	(52,116)
Other payable	25,705	(15,740)	82,601	(1,834,027)
Net cash provided by (used in) operating activities	(196,256)	754,388	65,191	(1,222,934)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of subsidiary	(1,458,000)
Purchase of property and equipment		(20,434)	(102,629)	(158,033)
Sales of property and equipment			10,829
Note receivable	(312,173)	(990,070)	(769,654)	(66,653)
Loan to related parties, net	(23,613)	(41,413)		(551,829)
Collection of loan to related parties			521,832
Net cash used in investing activities	(1,793,786)	(1,051,917)	(339,622)	(776,515)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceed from borrowings	4,082,400
Proceeds from issuance of common stock			100,000
Repayment of loans		(183,720)	(180,600)	(81,220)
Loan from related parties, net	(1,235,162)	506,018	468,424	2,073,365
Net cash provided by financing activities	2,847,238	322,298	387,824	1,992,145
Effects on changes in foreign exchange rate	13,371	6,402	(8,839)	(5,765)
Net increase in cash and cash equivalents	870,567	31,171	104,554	(13,069)
Cash and cash equivalents - beginning of period	227,687	123,133	123,133	136,202
Cash and cash equivalents - end of period	1,098,254	154,304	227,687	123,133
Supplemental Cash Flow Disclosures
Cash paid for interest and income tax		2,701	2,808
Cash paid for income taxes

XML

Organization And Description Of Business

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Organization And Description Of Business

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Yingxi Industrial Chain Group Co., Ltd. (“the Company”, “we”, “us” or “our”, Yingxi”) was incorporated on August 4, 2016 in the Republic of Seychelles. During the reporting period, the Company was mainly engaged in textile and garment manufacturing and providing logistics services to its customers. The Company also provides business consultancy to their customers in assisting them to identify weaknesses in their operation in order to optimize their efficiency. The Company also assists their customers in improving their supply chain management which involves the movement and storage of raw materials, of work in progress inventory, and of finished goods from point of origin to point of consumption.

Recent Developments

Our subsidiaries were controlled by the same owners immediately prior to their acquisition by Yingxi. As a result of the acquisition of the subsidiaries by Yingxi, they became 100% owned subsidiaries of Yingxi. As these transactions are between entities under common control, the Company has reported the results of operations for the period in a manner similar to a pooling of interests and has consolidated financial results since the initial date in which the above companies were under common control. Assets and liabilities were combined on their carrying values and no recognition of goodwill was made. The Company has presented earnings per share based on the new parent company shares issued to the former shareholders of the Company.

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Yingxi Industrial Chain Group Co., Ltd. (“the Company”, “we”, “us” or “our”, Yingxi”) was incorporated on August 4, 2016 in the Republic of Seychelles. During the reporting period, the Company was mainly engaged in textile and garment manufacturing and providing logistics services to its customers. The Company also provides business consultancy to their customers in assisting them to identify weaknesses in their operation in order to optimize their efficiency. The Company also assists their customers in improving their supply chain management which involves the movement and storage of raw materials, of work in progress inventory, and of finished goods from point of origin to point of consumption.

Recent Developments

Our subsidiaries were controlled by the same owners immediately prior to their acquisition by Yingxi. As a result of the acquisition of the subsidiaries by Yingxi, they became 100% owned subsidiaries of Yingxi. As these transactions are between entities under common control, the Company has reported the results of operations for the period in a manner similar to a pooling of interests and has consolidated financial results since the initial date in which the above companies were under common control. Assets and liabilities were combined on their carrying values and no recognition of goodwill was made. The Company has presented earnings per share based on the new parent company shares issued to the former shareholders of the Company.

XML

Summary Of Significant Accounting Policies

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Summary Of Significant Accounting Policies

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Regulation S-X. These interim unaudited consolidated financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2016, thereto contained herein.

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the consolidated financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

Basis of Consolidation

These consolidated financial statements include the accounts of Yingxi Industrial Chain Group Co., Ltd and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.

Principal of subsidiaries

The details of the principal subsidiaries of Yingxi are set out as follows:

Name of subsidiaries	Place of incorporation	Percentage of interest			Principal activities
Shares held directly
Yingxi Industrial Chain Investment Co., Ltd (“YICI”)	Hong Kong China		100	%	Investment holdings
Shares held indirectly
Dongguan Heng Sheng Wei Garments Co., Ltd (“DHSW”)	China		100	%	Garment manufacturing and business consultancy
Qianhai Yingxi Textile and Garments Co., Ltd  (“QYTG”)	China		100	%	Investment holdings
Shantou Chenghai Dai Tou Garments Co., Ltd (“SCDT”)	China		100	%	Garment manufacturing
Shenzhen Hua Peng Fa Logistics Co., Ltd (“SHPF”)	China		100	%	Logistics and business consultancy
Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd (“SQYI”)	China		100	%	Investment holdings
Shenzhen Xin Kuai Jie Transport Co., Ltd (“SXKJ”)	China		100	%	Logistics

Use of Estimates

The preparation of the consolidated financial statements are in conformity with the GAAP that requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Foreign Currency Translation

The Company’s reporting currency is the U.S. Dollars (“USD”). The functional currency of the Company and its subsidiaries is Chinese Yuan Renminbi (“RMB”). All transactions initiated in RMB are translated into USD in accordance with ASC 830, “Foreign Currency Matters,” as follows:

i)	Assets and liabilities at the rate of exchange in effect at the balance sheet date.
ii)	Equities at historical rate
iii)	Revenue and expense items at the average rate of exchange prevailing during the period.

Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity.

	June 30, 2017		December 31, 2016		June 30, 2016
Spot CNY: USD exchange rate	$	0.1475	$	0.1437	$	0.1504
Average CNY: USD exchange rate	$	0.1452 - 0.1458	$	0.1505	$	0.1529 - 0.1531
Spot HKD: USD exchange rate	$	0.1289	$	0.1289	$	0.1289
Average HKD: USD exchange rate	$	0.1289	$	0.1289	$	0.1289

Accounts Receivable

The Company’s accounts receivable consists of trade receivables from customers. The Company maintains an allowance for doubtful accounts based on the Company’s assessment of collectability of the customer receivable. The Company analyzes past history with a customer, customer credit, collection history, and financial condition when evaluating the collectability of customer accounts. Uncollectible accounts are charged off to the allowance when it is deemed probable that the receivable will not be recovered.

	June 30, 2017		December 31, 2016
Within 1 year	$	3,411,587	$	3,985,638
1 - 2 year		1,368,121		1,429,976
		4,779,708		5,415,614

For the concentration risk disclosure, please refer to Note 9.

Financial Instruments

The Company’s consolidated financial instruments consist primarily of cash, accounts receivable, prepaid expenses, inventory and other assets, accounts payable and accrued expenses and other payables. The carrying amounts of such financial instruments approximate their respective estimated fair value due to their short-term maturities.

Concentrations of Credit Risks

The Company’s exposure to concentrations of credit risk primarily related to its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company’s management assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

Inventory

Inventory is stated at the lower of cost (weighted average) or net realizable value. The Company’s inventory is constantly monitored for obsolescence. This is based on the management’s estimates and they have taken into considerations factors such as turnover, technical obsolescence, right of return status to suppliers and price protection offered by suppliers. These estimates are necessarily subject to a degree of measurement uncertainty. Reserves for slow-moving and obsolete inventory at June 30, 2017 were $0 and at December 31, 2016 were $0.

Related Parties

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions see Note 8.

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use.

The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are retired or sold, the asset’s cost and related accumulated depreciation are eliminated with any remaining gain or loss recognized in net earnings.

Depreciation of plant and equipment, is recorded on the straight-line method over estimated useful lives, generally as follows:

	Years
Production equipment	5 - 10
Vehicles	3 - 15
Office equipment	5 - 10

Impairment of long-lived assets

We evaluate carrying value of long-lived assets whenever events or changes in circumstances would indicate that it is more likely than not their carrying values may exceed their realizable values, and records impairment charges when considered necessary.

When circumstances indicate that impairment may have occurred, the Company tests such assets for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of such assets and their eventual disposition to their carrying amount. In estimating these future cash flows, assets and liabilities are grouped at a lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other such groups. If the undiscounted future cash flows are less than the carrying amount of the asset, an impairment loss, measured as the excess of the carrying value of the asset over its estimated fair value, is recognized. Fair values are determined based on discounted cash flows, quoted market values or external appraisals as applicable.

Deferred Revenue

Deferred revenue are services billed to customers for which the services have not been fully performed. As of June 30, 2017 and December 31, 2016, deferred revenue were $225,423 and $363,818, respectively.

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes.” The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

Uncertain Tax Positions

The Company follows guidance issued by the FASB regarding accounting for uncertainty in income taxes. This guidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an income tax position is required to meet before being recognized in the financial statements and applies to all income tax positions. Each income tax position is assessed using a two-step process. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement.

The Company records income tax related interest and penalties as a component of the provision for income tax expense. As of June 30, 2017 and December 31, 2016, the Company determined there were no uncertain tax provisions.

Earnings (Loss) Per Share

The Company has adopted ASC 260, “Earnings Per Share,” (“EPS”) which requires presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying consolidated statements of operations and comprehensive loss, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

The Company had no potentially dilutive securities, such as convertible debt, options or warrants, issued and outstanding during the six months ended June 30, 2017 and 2016.

Revenue Recognition

The Company recognizes revenue only when all of the following criteria have been met:

i)	Persuasive evidence for an agreement exists;
ii)	Service has been provided;
iii)	The fee is fixed or determinable; and,
iv)	Collection is reasonably assured.

Recent Accounting Pronouncements

The Company has reviewed all other recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our consolidated financial statements.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The consolidated financial statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States.

Basis of Consolidation

The consolidated financial statements include the accounts of Yingxi Industrial Chain Group., Ltd. and its wholly-owned subsidiaries. Intercompany balance and transactions between consolidated entities are eliminated.

Principal subsidiaries

The details of the principal subsidiaries of Yingxi are set out as follows:

Name of subsidiaries	Place of incorporation	Percentage of interest			Principal activities
Shares held directly
Yingxi Industrial Chain Investment Co., Ltd (“YICI”)	Hong Kong China		100	%	Investment holdings
Shares held indirectly
Dongguan Heng Sheng Wei Garments Co., Ltd (“DHSW”)	China		100	%	Garment manufacturing and business consultancy
Qianhai Yingxi Textile and Garments Co., Ltd (“QYTG”)	China		100	%	Investment holdings
Shantou Chenghai Dai Tou Garments Co., Ltd (“SCDT”)	China		100	%	Garment manufacturing
Shenzhen Hua Peng Fa Logistics Co., Ltd (“SHPF”)	China		100	%	Logistics and business consultancy
Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd (“SQYI”)	China		100	%	Investment holdings
Shenzhen Xin Kuai Jie Transport Co., Ltd (“SXKJ”)	China		100	%	Logistics

Use of Estimates

The preparation of the consolidated financial statements in conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Foreign Currency Translation

The Company’s reporting currency is the U.S. Dollars (“USD”). The functional currency of the Company and its subsidiaries is Chinese Yuan Renminbi (“RMB”). All transactions initiated in RMB are translated into USD in accordance with ASC 830, “Foreign Currency Matters,” as follows:

i)	Assets and liabilities at the rate of exchange in effect at the balance sheet date.
ii)	Equities at historical rate
iii)	Revenue and expense items at the average rate of exchange prevailing during the period.

Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity.

	December 31, 2016		December 31, 2015
Spot RMB: USD exchange rate	$	0.14	$	0.15
Average RMB: USD exchange rate	$	0.15	$	0.16

Cash and Cash Equivalents

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with original maturities of three months or less, which are readily convertible to known amounts of cash.

Accounts Receivable

The Company’s accounts receivable consists of trade receivables from customers. The Company maintains an allowance for doubtful accounts based on the Company’s assessment of collectability of the customer receivable. The Company analyzes past history with a customer, customer credit, collection history, and financial condition when evaluating the collectability of customer accounts. Uncollectible accounts are charged off to the allowance when it is deemed probable that the receivable will not be recovered.

	December 31, 2016		December 31, 2015
Within 1 year	$	3,985,638	$	3,209,461
1 - 2 years		1,429,976		-
		5,415,614		3,209,461

For the concentration risk disclosure, please refer to Note 9.

Financial Instruments

The Company’s consolidated financial instruments consist primarily of cash, accounts receivable, prepaid expenses, inventory and other assets, accounts payable and accrued expenses and other payables. The carrying amounts of such financial instruments approximate their respective estimated fair value due to their short-term maturities.

Concentrations of Credit Risks

The Company’s exposure to concentrations of credit risk primarily related to its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company’s management assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

Inventory

Inventory is stated at the lower of cost (weighted average) or net realizable value. The company’s inventory is constantly monitored for obsolescence. This is based on the management’s estimates and they have taken into considerations factors such as turnover, technical obsolescence, right of return status to suppliers and price protection offered by suppliers. These estimates are necessarily subject to a degree of measurement uncertainty. Reserves for slow-moving and obsolete inventory at December 31, 2016 were $0 (2015 - $0).

Related Parties

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions see Note 8.

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use.

The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are retired or sold, the asset’s cost and related accumulated depreciation are eliminated with any remaining gain or loss recognized in net earnings.

Depreciation of plant and equipment, is recorded on the straight-line method over estimated useful lives, generally as follows:

	Years
Production equipment	5 - 10
Vehicles	3 - 15
Office equipment	5 - 10

Impairment of long-lived assets

We evaluate carrying value of long-lived assets whenever events or changes in circumstances would indicate that it is more likely than not their carrying values may exceed their realizable values, and records impairment charges when considered necessary.

When circumstances indicate that impairment may have occurred, the Company tests such assets for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of such assets and their eventual disposition to their carrying amount. In estimating these future cash flows, assets and liabilities are grouped at a lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other such groups. If the undiscounted future cash flows are less than the carrying amount of the asset, an impairment loss, measured as the excess of the carrying value of the asset over its estimated fair value, is recognized. Fair values are determined based on discounted cash flows, quoted market values or external appraisals as applicable.

Deferred Revenue

Deferred revenue are services billed to customers for which the services have not been fully performed. At December 31, 2016 and 2015, deferred revenue was $363,818 and $92,984, respectively.

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes.” The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. As at December 31, 2016 and 2015, the Company did not have any amounts recorded pertaining to uncertain tax positions.

Uncertain Tax Positions

The Company follows guidance issued by the FASB regarding accounting for uncertainty in income taxes. This guidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an income tax position is required to meet before being recognized in the financial statements and applies to all income tax positions. Each income tax position is assessed using a two-step process. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement.

The Company records income tax related interest and penalties as a component of the provision for income tax expense. As of December 31, 2016 and 2015, the Company determined there were no uncertain tax provisions.

Earnings (Loss) Per Share

The Company has adopted ASC 260, “Earnings Per Share,” (“EPS”) which requires presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying consolidated statements of operations and comprehensive loss, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

The Company had no potentially dilutive securities, such as convertible debt, options or warrants, issued and outstanding during years ended December 31, 2016 and 2015.

Revenue Recognition

The Company recognizes revenue only when all of the following criteria have been met:

i)	Persuasive evidence for an agreement exists;
ii)	Service has been provided;
iii)	The fee is fixed or determinable; and,
iv)	Collection is reasonably assured.

Recent Accounting Pronouncements

The FASB has issued Accounting Standards Update (ASU) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, clarifying the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. They also provide more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable. For public companies, the amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company does not anticipate the adoption of ASU 2017-01 will have a material impact on its consolidated financial statements.

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Inventory

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Inventory

NOTE 3 – INVENTORY

Inventory at June 30, 2017 and December 31, 2016 consist of the following:

	June 30, 2017		December 31, 2016
Raw material	$	177,784	$	98,282
Work in progress		11,231		71,896
Finished goods		265,257		258,424
	$	454,272	$	428,602

NOTE 3 – INVENTORY

Inventory at December 31, 2016 and 2015 consist of the following:

	December 31, 2016		December 31, 2015
Raw material	$	98,282	$	509,708
Work in progress		71,896		97,274
Finished goods		258,424		1,041
Consigned processing materials		-		21,357
Reusable materials		-		15
	$	428,602	$	629,395

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Notes Receivable

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Notes Receivable

NOTE 4 – NOTES RECEIVABLE

Note receivable at June 30, 2017 and December 31, 2016 amounted to $1,131,898 and $795,062, respectively.

The amounts are interest free, unsecured and have no fixed terms of repayment. As at June 30, 2017 and December 31, 2016, there were no interest due and outstanding and no provision had been made for non-repayment of the loan or interest.

NOTE 4 – NOTES RECEIVABLE

Notes receivable at December 31, 2016 and 2015 amounted to $795,062 and $64,495, respectively.

The amounts are interest free, unsecured and have no fixed terms of repayment. As at 31 December 2016 and 2015, there were no interest due and outstanding and no provisions had been made for non-repayment of the loan or interest.

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Property And Equipment

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Property And Equipment

NOTE 5 – PROPERTY AND EQUIPMENT

Property and equipment at June 30, 2017 and December 31, 2016, consist of the following:

	June 30, 2017			December 31, 2016
Cost:
Production equipment	$	143,957		$	140,249
Means of transport		835,267			813,747
office equipment		11,561			11,264
		990,785			965,260
Less: accumulated depreciation		(342,326	)		(281,613	)
	$	648,459		$	683,647

Depreciation expense for the six months ended June 30, 2017 and 2016 amounted to $52,652 and $35,185, respectively.

NOTE 5 – PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2016 and 2015, consist of the following:

	December 31, 2016			December 31, 2015
Cost:
Production equipment	$	140,249		$	137,240
Vehicle		813,747			880,024
Office equipment		11,264			10,810
		965,260			1,028,074
Less: accumulated depreciation		(281,613	)		(283,999	)
Property and equipment, net	$	683,647		$	744,075

Depreciation expense for the years ended December 31, 2016 and 2015 amounted to $102,967 and $91,368, respectively.

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Accounts Payable And Accrued Liabilities

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Accounts Payable And Accrued Liabilities

NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities at June 30, 2017 and December 31, 2016, consist of the following:

	June 30, 2017		December 31, 2016
Accounts payable	$	2,659,689	$	2,704,259
Accrued payroll		104,599		117,269
Total	$	2,764,288	$	2,821,528

	June 30, 2017		December 31, 2016
Accounts payable
Within 1 year	$	2,511,753	$	2,677,531
1 - 2 year		147,936		-
2 - 3 year		-		26,728
Total	$	2,659,689	$	2,704,259

NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED LABILITIES

Accounts payable and accrued liabilities at December 31, 2016 and 2015, consist of the following:

	December 31, 2016		December 31, 2015
Accounts payable	$	2,704,259	$	707,792
Accrued payroll		117,269		94,246
Total	$	2,821,528	$	802,038

	December 31, 2016		December 31, 2015
Accounts payable
Within 1 year	$	2,677,531	$	456,342
1 - 2 year		-		251,450
2 - 3 year		26,728		-
Total	$	2,704,259	$	707,792

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Loan Payable

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Loan Payable

NOTE 7 – LOAN PAYABLE

The components of our long-term debt including the current portion, and the associated interest rates, were as follows as of June 30, 2017 and December 31, 2016:

	June 30, 2017		December 31, 2016
Loan payable with no interest and 3 years maturity	$	1,475,000	$	-
Loan payable with no interest and 1 year maturity		2,655,000		-
		4,130,000		-
Current portion of loans payable		2,655,000		-
Long-term loans payable	$	1,475,000	$	-

During the six months ended June 30, 2017 and 2016, the Company borrowed $4,130,000 and $0, and repaid $0 and 183,720, respectively.

Interest expenses for the six months ended June 30, 2017 and 2016 amounted to $0 and $2,701, respectively.

NOTE 7 – LOAN PAYABLE

As of December 31, 2016, and 2015, the Company had loan payable of $0 and $184,800, respectively. The term is from December 24, 2013 to December 23, 2018 and the interest rate is 6.4125% per annum. During the year ended December 31, 2016 and 2015, the Company repaid $180,600 and $81,220, respectively. The Company fully paid back all the loan in March 2016. The difference between the loan payable as of December 31, 2015 and the loan repayment in 2016 was recorded as exchange difference.

Interest expenses for the years ended December 31, 2016 and 2015 amounted to $2,701 and $21,874, respectively.

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Related Party Transactions

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Related Party Transactions

NOTE 8 – RELATED PARTY TRANSACTIONS

Due from related parties

Due from related parties at June 30, 2017 and December 31, 2016 consist of as follows:

Related Party Name	June 30,2017		December 31, 2016		Relationship with the Company
Hong Zhida	$	20,871	$	-	CEO
Chen Zhongpeng		953		-	Company’s legal representative
	$	21,824	$	-

The amounts were interest free, unsecured and had no fixed terms of repayment.

Due to related parties

Due to related parties at June 30, 2017 and December 31, 2016 consist of as follows:

Related Party Name	June 30, 2017		December 31, 2016		Relationship with the Company
Yang Bihua	$	18,276	$	1,957	Company’s legal representative
Ding Yinping		501,245		750,842	Company’s legal representative
Huang Jinlong		1,289,950		1,091,348	Company’s supervisor
Chen Zhongpeng		814,688		459,232	Company’s legal representative
Huang Dewu		127,375		15,807	Company’s legal representative
Shareholders of acquired subsidiaries		-		1,580,844
	$	2,751,534	$	3,900,030

The amounts were interest free, unsecured and had no fixed terms of repayment. The amounts owing to shareholders of the acquired subsidiaries totaling $1,580,844 (2015: nil) , was paid in May 2017.

NOTE 8 – RELATED PARTY TRANSACTIONS

Due from related parties

Due from related parties at December 31, 2016 and 2015 consist of the following:

Related party	December 31, 2016		December 31, 2015		Relationship with the Company
Chen Zhongpeng	$	-	$	263,308	Company’s legal representative
Huang Dewu		-		193,660	Company’s legal representative
Chen Qiuying		-		77,000	Company’s supervisor
	$	-	$	533,968

The amounts were interest free, unsecured and had no fixed terms of repayment.

Due to related parties

Due to related parties at December 31, 2016 and 2015 consist of the following:

Related party	December 31, 2016		December 31, 2015		Relationship with the Company
Chen Zhongpeng	$	459,232	$	-	Company’s legal representative
Yang Bihua		1,957		58,071	Company’s legal representative
Huang Dewu		15,807		-	Company’s legal representative
Ding Yinping		750,842		867,524	Company’s legal representative
Huang Jinlong		1,091,348		1,080,660	Company’s supervisor
Shareholders for acquisition of subsidiaries		1,580,844		-	Shareholders under common control
	$	3,900,030	$	2,006,255

The amounts were interest free, unsecured and had no fixed terms of repayment. The amounts owed to the shareholders for the acquisition of subsidiaries of $1,580,844 (2015: nil) was paid in May 2017.

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Concentration Of Credit Risks

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Concentration Of Credit Risks

NOTE 9 – CONCENTRATION OF CREDIT RISKS

The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, or whose accounts payable balances individually represented 10% or more of the Company’s total accounts payable, the details of which are set out as follows:

For the six months ended June 30, 2017 and the years ended December 31, 2016, five customers accounted for 52% and five customer accounted for 43% of the revenue of the Company, respectively.

At June 30, 2017 and December 31, 2016, five customers accounted for 76% and five customers accounted for 74% of the accounts receivable of the Company, respectively.

NOTE 9 – CONCENTRATION OF CREDIT RISKS

The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, or whose accounts payable balances individually represented 10% or more of the Company’s total accounts payable, the details of which are set out as follows:

For the years ended December 31, 2016 and 2015, five customers accounted for 43% and five customer accounted for 54% of the revenue of the Company, respectively.

At December 31, 2016 and 2015, five customers accounted for 74% and five customers accounted for 94% of the accounts receivable of the Company, respectively.

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Income Tax

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Income Tax

NOTE 10 – INCOME TAX

Yingxi was incorporated on August 4, 2016 in the Republic of Seychelles. Its subsidiary YICI was incorporated on July 28, 2016 in Hong Kong China. YICI’s subsidiaries DHSW, QYTG, SCDT, SHPF, SQYI and SXKJ were incorporated on May 15, 2009, November 29, 2016, May 13, 1982, July 6, 2006, January 29, 2016, and September 28, 2001 respectively in China.

The Company operates in China and they file their tax returns in accordance with China’s laws and regulations.

Provision for income taxes for the six months ended 30 June, 2017 and the years ended December 31, 2016 were $2,328 and $35,989 respectively. The income tax rate for the years 2017 and 2016 are 25% in China. However, DHSW enjoyed a preferential income tax rate at 10% for the year 2016. Whereas SHPF enjoyed a preferential income tax rate at 10% for the year 2016.

YICI does not generate any income during the two years and hence does not have to pay any Hong Kong Profits tax.

NOTE 10 – INCOME TAX

Yingxi was incorporated on August 4, 2016 in the Republic of Seychelles. Its subsidiary YICI was incorporated on July 28, 2016 in Hong Kong China. YICI’s subsidiaries DHSW, QYTG, SCDT, SHPF, SQYI and SXKJ were incorporated on May 15, 2009, November 29, 2016, May 13, 1982, July 6, 2006, January 29, 2016, and September 28, 2001 respectively in China.

The Company operates in China and they file their tax returns in accordance with China’s laws and regulations.

Provision for income taxes for the years ended December 31, 2016 and 2015 were $35,989 and $20,439 respectively. The income tax rate for the years 2016 and 2015 are 25% in China. However, DHSE enjoyed a preferential income tax rate at 10% for the years 2016 and 2015. Whereas SHPF enjoyed a preferential income tax rate at 10% for the year 2016.

YICI does not generate any income during the two years and hence does not have to pay any Hong Kong Profits tax.

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Shareholders’ Equity

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Shareholders’ Equity

NOTE 11 – SHAREHOLDERS’ EQUITY

Common Stock

The Company is authorized to issue 250,000,000 shares of common stock at a par value of $0.0004.

On August 4, 2016, 250,000,000 shares were issued to the founders for $100,000.

As of June 30, 2017, the Company had 250,000,000 shares of common stock issued and outstanding.

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

NOTE 11 – SHAREHOLDERS’ EQUITY

Common Stock

The Company is authorized to issue 250,000,000 shares of common stock at a par value of $0.0004.

On August 4, 2016, 250,000,000 shares were issued to the founders for $100,000.

As of December 31, 2016, the Company had 250,000,000 shares of common stock issued and outstanding.

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

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Subsequent Events

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Subsequent Events

NOTE 12 –SUBSEQUENT EVENTS

The Company has analyzed its operations subsequent to June 30, 2017, through the date these financials were approved to be issued, and has determined that it does not have any material events.

NOTE 12 – SUBSEQUENT EVENTS

The Company has analyzed its operations subsequent to June 30, 2017, through the date these financials were approved to be issued, and has determined that it does not have any material events.

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Summary Of Significant Accounting Policies (Policies) - Yingxi Industrial Chain Group Co Ltd [Member]

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Regulation S-X. These interim unaudited consolidated financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2016, thereto contained herein.

In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the consolidated financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

Basis of Presentation

The consolidated financial statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States.

Basis of Consolidation

Basis of Consolidation

These consolidated financial statements include the accounts of Yingxi Industrial Chain Group Co., Ltd and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.

Principal of subsidiaries

The details of the principal subsidiaries of Yingxi are set out as follows:

Name of subsidiaries	Place of incorporation	Percentage of interest			Principal activities
Shares held directly
Yingxi Industrial Chain Investment Co., Ltd (“YICI”)	Hong Kong China		100	%	Investment holdings
Shares held indirectly
Dongguan Heng Sheng Wei Garments Co., Ltd (“DHSW”)	China		100	%	Garment manufacturing and business consultancy
Qianhai Yingxi Textile and Garments Co., Ltd  (“QYTG”)	China		100	%	Investment holdings
Shantou Chenghai Dai Tou Garments Co., Ltd (“SCDT”)	China		100	%	Garment manufacturing
Shenzhen Hua Peng Fa Logistics Co., Ltd (“SHPF”)	China		100	%	Logistics and business consultancy
Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd (“SQYI”)	China		100	%	Investment holdings
Shenzhen Xin Kuai Jie Transport Co., Ltd (“SXKJ”)	China		100	%	Logistics

Basis of Consolidation

The consolidated financial statements include the accounts of Yingxi Industrial Chain Group., Ltd. and its wholly-owned subsidiaries. Intercompany balance and transactions between consolidated entities are eliminated.

Principal subsidiaries

Principal subsidiaries

The details of the principal subsidiaries of Yingxi are set out as follows:

Name of subsidiaries	Place of incorporation	Percentage of interest			Principal activities
Shares held directly
Yingxi Industrial Chain Investment Co., Ltd (“YICI”)	Hong Kong China		100	%	Investment holdings
Shares held indirectly
Dongguan Heng Sheng Wei Garments Co., Ltd (“DHSW”)	China		100	%	Garment manufacturing and business consultancy
Qianhai Yingxi Textile and Garments Co., Ltd (“QYTG”)	China		100	%	Investment holdings
Shantou Chenghai Dai Tou Garments Co., Ltd (“SCDT”)	China		100	%	Garment manufacturing
Shenzhen Hua Peng Fa Logistics Co., Ltd (“SHPF”)	China		100	%	Logistics and business consultancy
Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd (“SQYI”)	China		100	%	Investment holdings
Shenzhen Xin Kuai Jie Transport Co., Ltd (“SXKJ”)	China		100	%	Logistics

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements are in conformity with the GAAP that requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Use of Estimates

The preparation of the consolidated financial statements in conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. It also requires the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Foreign Currency Translation

Foreign Currency Translation

The Company’s reporting currency is the U.S. Dollars (“USD”). The functional currency of the Company and its subsidiaries is Chinese Yuan Renminbi (“RMB”). All transactions initiated in RMB are translated into USD in accordance with ASC 830, “Foreign Currency Matters,” as follows:

i)	Assets and liabilities at the rate of exchange in effect at the balance sheet date.
ii)	Equities at historical rate
iii)	Revenue and expense items at the average rate of exchange prevailing during the period.

Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity.

	June 30, 2017		December 31, 2016		June 30, 2016
Spot CNY: USD exchange rate	$	0.1475	$	0.1437	$	0.1504
Average CNY: USD exchange rate	$	0.1452 - 0.1458	$	0.1505	$	0.1529 - 0.1531
Spot HKD: USD exchange rate	$	0.1289	$	0.1289	$	0.1289
Average HKD: USD exchange rate	$	0.1289	$	0.1289	$	0.1289

Foreign Currency Translation

The Company’s reporting currency is the U.S. Dollars (“USD”). The functional currency of the Company and its subsidiaries is Chinese Yuan Renminbi (“RMB”). All transactions initiated in RMB are translated into USD in accordance with ASC 830, “Foreign Currency Matters,” as follows:

i)	Assets and liabilities at the rate of exchange in effect at the balance sheet date.
ii)	Equities at historical rate
iii)	Revenue and expense items at the average rate of exchange prevailing during the period.

Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders’ equity.

	December 31, 2016		December 31, 2015
Spot RMB: USD exchange rate	$	0.14	$	0.15
Average RMB: USD exchange rate	$	0.15	$	0.16

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash in banks, money market funds, and certificates of term deposits with original maturities of three months or less, which are readily convertible to known amounts of cash.

Accounts Receivable

Accounts Receivable

The Company’s accounts receivable consists of trade receivables from customers. The Company maintains an allowance for doubtful accounts based on the Company’s assessment of collectability of the customer receivable. The Company analyzes past history with a customer, customer credit, collection history, and financial condition when evaluating the collectability of customer accounts. Uncollectible accounts are charged off to the allowance when it is deemed probable that the receivable will not be recovered.

	June 30, 2017		December 31, 2016
Within 1 year	$	3,411,587	$	3,985,638
1 - 2 year		1,368,121		1,429,976
		4,779,708		5,415,614

For the concentration risk disclosure, please refer to Note 9.

Accounts Receivable

The Company’s accounts receivable consists of trade receivables from customers. The Company maintains an allowance for doubtful accounts based on the Company’s assessment of collectability of the customer receivable. The Company analyzes past history with a customer, customer credit, collection history, and financial condition when evaluating the collectability of customer accounts. Uncollectible accounts are charged off to the allowance when it is deemed probable that the receivable will not be recovered.

	December 31, 2016		December 31, 2015
Within 1 year	$	3,985,638	$	3,209,461
1 - 2 years		1,429,976		-
		5,415,614		3,209,461

For the concentration risk disclosure, please refer to Note 9.

Financial Instruments

Financial Instruments

The Company’s consolidated financial instruments consist primarily of cash, accounts receivable, prepaid expenses, inventory and other assets, accounts payable and accrued expenses and other payables. The carrying amounts of such financial instruments approximate their respective estimated fair value due to their short-term maturities.

Financial Instruments

The Company’s consolidated financial instruments consist primarily of cash, accounts receivable, prepaid expenses, inventory and other assets, accounts payable and accrued expenses and other payables. The carrying amounts of such financial instruments approximate their respective estimated fair value due to their short-term maturities.

Concentrations of Credit Risks

Concentrations of Credit Risks

The Company’s exposure to concentrations of credit risk primarily related to its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company’s management assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

Concentrations of Credit Risks

The Company’s exposure to concentrations of credit risk primarily related to its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company’s management assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

Inventory

Inventory

Inventory is stated at the lower of cost (weighted average) or net realizable value. The Company’s inventory is constantly monitored for obsolescence. This is based on the management’s estimates and they have taken into considerations factors such as turnover, technical obsolescence, right of return status to suppliers and price protection offered by suppliers. These estimates are necessarily subject to a degree of measurement uncertainty. Reserves for slow-moving and obsolete inventory at June 30, 2017 were $0 and at December 31, 2016 were $0.

Inventory

Inventory is stated at the lower of cost (weighted average) or net realizable value. The company’s inventory is constantly monitored for obsolescence. This is based on the management’s estimates and they have taken into considerations factors such as turnover, technical obsolescence, right of return status to suppliers and price protection offered by suppliers. These estimates are necessarily subject to a degree of measurement uncertainty. Reserves for slow-moving and obsolete inventory at December 31, 2016 were $0 (2015 - $0).

Related Parties

Related Parties

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions see Note 8.

Related Parties

The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions see Note 8.

Property and Equipment

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use.

The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are retired or sold, the asset’s cost and related accumulated depreciation are eliminated with any remaining gain or loss recognized in net earnings.

Depreciation of plant and equipment, is recorded on the straight-line method over estimated useful lives, generally as follows:

	Years
Production equipment	5 - 10
Vehicles	3 - 15
Office equipment	5 - 10

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use.

The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are retired or sold, the asset’s cost and related accumulated depreciation are eliminated with any remaining gain or loss recognized in net earnings.

Depreciation of plant and equipment, is recorded on the straight-line method over estimated useful lives, generally as follows:

	Years
Production equipment	5 - 10
Vehicles	3 - 15
Office equipment	5 - 10

Impairment of long-lived assets

Impairment of long-lived assets

We evaluate carrying value of long-lived assets whenever events or changes in circumstances would indicate that it is more likely than not their carrying values may exceed their realizable values, and records impairment charges when considered necessary.

When circumstances indicate that impairment may have occurred, the Company tests such assets for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of such assets and their eventual disposition to their carrying amount. In estimating these future cash flows, assets and liabilities are grouped at a lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other such groups. If the undiscounted future cash flows are less than the carrying amount of the asset, an impairment loss, measured as the excess of the carrying value of the asset over its estimated fair value, is recognized. Fair values are determined based on discounted cash flows, quoted market values or external appraisals as applicable.

Impairment of long-lived assets

We evaluate carrying value of long-lived assets whenever events or changes in circumstances would indicate that it is more likely than not their carrying values may exceed their realizable values, and records impairment charges when considered necessary.

When circumstances indicate that impairment may have occurred, the Company tests such assets for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of such assets and their eventual disposition to their carrying amount. In estimating these future cash flows, assets and liabilities are grouped at a lowest level for which there are identifiable cash flows that are largely independent of the cash flows generated by other such groups. If the undiscounted future cash flows are less than the carrying amount of the asset, an impairment loss, measured as the excess of the carrying value of the asset over its estimated fair value, is recognized. Fair values are determined based on discounted cash flows, quoted market values or external appraisals as applicable.

Deferred Revenue

Deferred Revenue

Deferred revenue are services billed to customers for which the services have not been fully performed. As of June 30, 2017 and December 31, 2016, deferred revenue were $225,423 and $363,818, respectively.

Deferred Revenue

Deferred revenue are services billed to customers for which the services have not been fully performed. At December 31, 2016 and 2015, deferred revenue was $363,818 and $92,984, respectively.

Income Taxes

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes.” The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes.” The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. As at December 31, 2016 and 2015, the Company did not have any amounts recorded pertaining to uncertain tax positions.

Uncertain Tax Positions

Uncertain Tax Positions

The Company follows guidance issued by the FASB regarding accounting for uncertainty in income taxes. This guidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an income tax position is required to meet before being recognized in the financial statements and applies to all income tax positions. Each income tax position is assessed using a two-step process. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement.

The Company records income tax related interest and penalties as a component of the provision for income tax expense. As of June 30, 2017 and December 31, 2016, the Company determined there were no uncertain tax provisions.

Uncertain Tax Positions

The Company follows guidance issued by the FASB regarding accounting for uncertainty in income taxes. This guidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an income tax position is required to meet before being recognized in the financial statements and applies to all income tax positions. Each income tax position is assessed using a two-step process. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement.

The Company records income tax related interest and penalties as a component of the provision for income tax expense. As of December 31, 2016 and 2015, the Company determined there were no uncertain tax provisions.

Earnings (Loss) Per Share

Earnings (Loss) Per Share

The Company has adopted ASC 260, “Earnings Per Share,” (“EPS”) which requires presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying consolidated statements of operations and comprehensive loss, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

The Company had no potentially dilutive securities, such as convertible debt, options or warrants, issued and outstanding during the six months ended June 30, 2017 and 2016.

Earnings (Loss) Per Share

The Company has adopted ASC 260, “Earnings Per Share,” (“EPS”) which requires presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying consolidated statements of operations and comprehensive loss, basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

The Company had no potentially dilutive securities, such as convertible debt, options or warrants, issued and outstanding during years ended December 31, 2016 and 2015.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue only when all of the following criteria have been met:

i)	Persuasive evidence for an agreement exists;
ii)	Service has been provided;
iii)	The fee is fixed or determinable; and,
iv)	Collection is reasonably assured.

Revenue Recognition

The Company recognizes revenue only when all of the following criteria have been met:

i)	Persuasive evidence for an agreement exists;
ii)	Service has been provided;
iii)	The fee is fixed or determinable; and,
iv)	Collection is reasonably assured.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Company has reviewed all other recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our consolidated financial statements.

Recent Accounting Pronouncements

The FASB has issued Accounting Standards Update (ASU) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, clarifying the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a more robust framework to use in determining when a set of assets and activities is a business. They also provide more consistency in applying the guidance, reduce the costs of application, and make the definition of a business more operable. For public companies, the amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The Company does not anticipate the adoption of ASU 2017-01 will have a material impact on its consolidated financial statements.

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Summary Of Significant Accounting Policies (Tables) - Yingxi Industrial Chain Group Co Ltd [Member]

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Schedule of Principal Subsidiaries

The details of the principal subsidiaries of Yingxi are set out as follows:

Name of subsidiaries	Place of incorporation	Percentage of interest			Principal activities
Shares held directly
Yingxi Industrial Chain Investment Co., Ltd (“YICI”)	Hong Kong China		100	%	Investment holdings
Shares held indirectly
Dongguan Heng Sheng Wei Garments Co., Ltd (“DHSW”)	China		100	%	Garment manufacturing and business consultancy
Qianhai Yingxi Textile and Garments Co., Ltd  (“QYTG”)	China		100	%	Investment holdings
Shantou Chenghai Dai Tou Garments Co., Ltd (“SCDT”)	China		100	%	Garment manufacturing
Shenzhen Hua Peng Fa Logistics Co., Ltd (“SHPF”)	China		100	%	Logistics and business consultancy
Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd (“SQYI”)	China		100	%	Investment holdings
Shenzhen Xin Kuai Jie Transport Co., Ltd (“SXKJ”)	China		100	%	Logistics

The details of the principal subsidiaries of Yingxi are set out as follows:

Name of subsidiaries	Place of incorporation	Percentage of interest			Principal activities
Shares held directly
Yingxi Industrial Chain Investment Co., Ltd (“YICI”)	Hong Kong China		100	%	Investment holdings
Shares held indirectly
Dongguan Heng Sheng Wei Garments Co., Ltd (“DHSW”)	China		100	%	Garment manufacturing and business consultancy
Qianhai Yingxi Textile and Garments Co., Ltd (“QYTG”)	China		100	%	Investment holdings
Shantou Chenghai Dai Tou Garments Co., Ltd (“SCDT”)	China		100	%	Garment manufacturing
Shenzhen Hua Peng Fa Logistics Co., Ltd (“SHPF”)	China		100	%	Logistics and business consultancy
Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd (“SQYI”)	China		100	%	Investment holdings
Shenzhen Xin Kuai Jie Transport Co., Ltd (“SXKJ”)	China		100	%	Logistics

Schedule of Foreign Currency Transaction Adjustments Accumulated Other Comprehensive Income

	June 30, 2017		December 31, 2016		June 30, 2016
Spot CNY: USD exchange rate	$	0.1475	$	0.1437	$	0.1504
Average CNY: USD exchange rate	$	0.1452 - 0.1458	$	0.1505	$	0.1529 - 0.1531
Spot HKD: USD exchange rate	$	0.1289	$	0.1289	$	0.1289
Average HKD: USD exchange rate	$	0.1289	$	0.1289	$	0.1289

	December 31, 2016		December 31, 2015
Spot RMB: USD exchange rate	$	0.14	$	0.15
Average RMB: USD exchange rate	$	0.15	$	0.16

Schedule of Accounts Receivable

	June 30, 2017		December 31, 2016
Within 1 year	$	3,411,587	$	3,985,638
1 - 2 year		1,368,121		1,429,976
		4,779,708		5,415,614

	December 31, 2016		December 31, 2015
Within 1 year	$	3,985,638	$	3,209,461
1 - 2 years		1,429,976		-
		5,415,614		3,209,461

Schedule of Estimated Useful Lives of Plant and Equipment

Depreciation of plant and equipment, is recorded on the straight-line method over estimated useful lives, generally as follows:

	Years
Production equipment	5 - 10
Vehicles	3 - 15
Office equipment	5 - 10

Depreciation of plant and equipment, is recorded on the straight-line method over estimated useful lives, generally as follows:

	Years
Production equipment	5 - 10
Vehicles	3 - 15
Office equipment	5 - 10

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Inventory (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Schedule of Inventory

Inventory at June 30, 2017 and December 31, 2016 consist of the following:

	June 30, 2017		December 31, 2016
Raw material	$	177,784	$	98,282
Work in progress		11,231		71,896
Finished goods		265,257		258,424
	$	454,272	$	428,602

Inventory at December 31, 2016 and 2015 consist of the following:

	December 31, 2016		December 31, 2015
Raw material	$	98,282	$	509,708
Work in progress		71,896		97,274
Finished goods		258,424		1,041
Consigned processing materials		-		21,357
Reusable materials		-		15
	$	428,602	$	629,395

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Property And Equipment (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Schedule of Property and Equipment

Property and equipment at June 30, 2017 and December 31, 2016, consist of the following:

	June 30, 2017			December 31, 2016
Cost:
Production equipment	$	143,957		$	140,249
Means of transport		835,267			813,747
office equipment		11,561			11,264
		990,785			965,260
Less: accumulated depreciation		(342,326	)		(281,613	)
	$	648,459		$	683,647

Property and equipment at December 31, 2016 and 2015, consist of the following:

	December 31, 2016			December 31, 2015
Cost:
Production equipment	$	140,249		$	137,240
Vehicle		813,747			880,024
Office equipment		11,264			10,810
		965,260			1,028,074
Less: accumulated depreciation		(281,613	)		(283,999	)
Property and equipment, net	$	683,647		$	744,075

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Accounts Payable And Accrued Liabilities (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Yingxi Industrial Chain Group Co Ltd [Member]

Schedule of Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities at June 30, 2017 and December 31, 2016, consist of the following:

	June 30, 2017		December 31, 2016
Accounts payable	$	2,659,689	$	2,704,259
Accrued payroll		104,599		117,269
Total	$	2,764,288	$	2,821,528

	June 30, 2017		December 31, 2016
Accounts payable
Within 1 year	$	2,511,753	$	2,677,531
1 - 2 year		147,936		-
2 - 3 year		-		26,728
Total	$	2,659,689	$	2,704,259

Accounts payable and accrued liabilities at December 31, 2016 and 2015, consist of the following:

	December 31, 2016		December 31, 2015
Accounts payable	$	2,704,259	$	707,792
Accrued payroll		117,269		94,246
Total	$	2,821,528	$	802,038

	December 31, 2016		December 31, 2015
Accounts payable
Within 1 year	$	2,677,531	$	456,342
1 - 2 year		-		251,450
2 - 3 year		26,728		-
Total	$	2,704,259	$	707,792

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Loan Payable (Tables)

6 Months Ended

Jun. 30, 2017

Yingxi Industrial Chain Group Co Ltd [Member]

Schedule of Long Term Loans Payable

The components of our long-term debt including the current portion, and the associated interest rates, were as follows as of June 30, 2017 and December 31, 2016:

	June 30, 2017		December 31, 2016
Loan payable with no interest and 3 years maturity	$	1,475,000	$	-
Loan payable with no interest and 1 year maturity		2,655,000		-
		4,130,000		-
Current portion of loans payable		2,655,000		-
Long-term loans payable	$	1,475,000	$	-

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Related Party Transactions (Tables) - Yingxi Industrial Chain Group Co Ltd [Member]

6 Months Ended

12 Months Ended

Jun. 30, 2017

Dec. 31, 2016

Schedule of Due from Related Parties

Due from related parties at June 30, 2017 and December 31, 2016 consist of as follows:

Related Party Name	June 30,2017		December 31, 2016		Relationship with the Company
Hong Zhida	$	20,871	$	-	CEO
Chen Zhongpeng		953		-	Company’s legal representative
	$	21,824	$	-

Due from related parties at December 31, 2016 and 2015 consist of the following:

Related party	December 31, 2016		December 31, 2015		Relationship with the Company
Chen Zhongpeng	$	-	$	263,308	Company’s legal representative
Huang Dewu		-		193,660	Company’s legal representative
Chen Qiuying		-		77,000	Company’s supervisor
	$	-	$	533,968

Schedule of Due to Related Parties

Due to related parties at June 30, 2017 and December 31, 2016 consist of as follows:

Related Party Name	June 30, 2017		December 31, 2016		Relationship with the Company
Yang Bihua	$	18,276	$	1,957	Company’s legal representative
Ding Yinping		501,245		750,842	Company’s legal representative
Huang Jinlong		1,289,950		1,091,348	Company’s supervisor
Chen Zhongpeng		814,688		459,232	Company’s legal representative
Huang Dewu		127,375		15,807	Company’s legal representative
Shareholders of acquired subsidiaries		-		1,580,844
	$	2,751,534	$	3,900,030

Due to related parties at December 31, 2016 and 2015 consist of the following:

Related party	December 31, 2016		December 31, 2015		Relationship with the Company
Chen Zhongpeng	$	459,232	$	-	Company’s legal representative
Yang Bihua		1,957		58,071	Company’s legal representative
Huang Dewu		15,807		-	Company’s legal representative
Ding Yinping		750,842		867,524	Company’s legal representative
Huang Jinlong		1,091,348		1,080,660	Company’s supervisor
Shareholders for acquisition of subsidiaries		1,580,844		-	Shareholders under common control
	$	3,900,030	$	2,006,255

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Organization And Description Of Business (Details Narrative)	Jun. 30, 2017	Dec. 31, 2016
Yingxi Industrial Chain Group Co Ltd [Member]
Ownership percentage	100.00%	100.00%

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Summary Of Significant Accounting Policies (Details Narrative) - Yingxi Industrial Chain Group Co Ltd [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred revenue	$ 225,423	$ 363,818	$ 92,984
Minimum percentage of uncertain tax	greater than 50%	greater than 50%
Number of dilutive securities
Inventory Valuation And Obsolescence [Member]
Reserve for obsolete inventory	$ 0	$ 0	$ 0

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Summary Of Significant Accounting Policies - Schedule of Principal Subsidiaries (Details) - Yingxi Industrial Chain Group Co Ltd [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Yingxi Industrial Chain Investment Co., Ltd ("YICI") [Member]
Name of subsidiaries	Yingxi Industrial Chain Investment Co., Ltd ("YICI") Shares held indirectly	Yingxi Industrial Chain Investment Co., Ltd ("YICI")
Place of incorporation	Hong Kong China	Hong Kong China
Percentage of interest	100.00%	100.00%
Principal activities	Investment holdings	Investment holdings
Dongguan Heng Sheng Wei Garments Co., Ltd ("DHSW") [Member]
Name of subsidiaries	Dongguan Heng Sheng Wei Garments Co., Ltd (“DHSW”)	Dongguan Heng Sheng Wei Garments Co., Ltd (“DHSW”)
Place of incorporation	China	China
Percentage of interest	100.00%	100.00%
Principal activities	Garment manufacturing and business consultancy	Garment manufacturing and business consultancy
Qianhai Yingxi Textile and Garments Co., Ltd ("QYTG") [Member]
Name of subsidiaries	Qianhai Yingxi Textile and Garments Co., Ltd ("QYTG")	Qianhai Yingxi Textile and Garments Co., Ltd ("QYTG")
Place of incorporation	China	China
Percentage of interest	100.00%	100.00%
Principal activities	Investment holdings	Investment holdings
Shantou Chenghai Dai Tou Garments Co., Ltd ("SCDT") [Member]
Name of subsidiaries	Shantou Chenghai Dai Tou Garments Co., Ltd (“SCDT”)	Shantou Chenghai Dai Tou Garments Co., Ltd (“SCDT”)
Place of incorporation	China	China
Percentage of interest	100.00%	100.00%
Principal activities	Garment manufacturing	Garment manufacturing
Shenzhen Hua Peng Fa Logistics Co., Ltd ("SHPF") [Member]
Name of subsidiaries	Shenzhen Hua Peng Fa Logistics Co., Ltd (“SHPF”)	Shenzhen Hua Peng Fa Logistics Co., Ltd (“SHPF”)
Place of incorporation	China	China
Percentage of interest	100.00%	100.00%
Principal activities	Logistics and business consultancy	Logistics and business consultancy
Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd ("SQYI") [Member]
Name of subsidiaries	Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd ("SQYI")	Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd ("SQYI")
Place of incorporation	China	China
Percentage of interest	100.00%	100.00%
Principal activities	Investment holdings	Investment holdings
Shenzhen Xin Kuai Jie Transport Co., Ltd ("SXKJ") [Member]
Name of subsidiaries	Shenzhen Xin Kuai Jie Transport Co., Ltd (“SXKJ”)	Shenzhen Xin Kuai Jie Transport Co., Ltd (“SXKJ”)
Place of incorporation	China	China
Percentage of interest	100.00%	100.00%
Principal activities	Logistics	Logistics

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Summary Of Significant Accounting Policies - Schedule of Foreign Currency Transaction Adjustments Accumulated Other Comprehensive Income (Details) - Yingxi Industrial Chain Group Co Ltd [Member]	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Spot CNY USD Exchange Rate [Member]
Foreign currency translation rate	0.1475	0.1437	0.1504
Average CNY USD Exchange Rate [Member]
Foreign currency translation rate		0.1505
Average CNY USD Exchange Rate [Member] | Minimum [Member]
Foreign currency translation rate	0.1452		0.1529
Average CNY USD Exchange Rate [Member] | Maximum [Member]
Foreign currency translation rate	0.1458		0.1531
Spot HKD: USD Exchange Rate [Member]
Foreign currency translation rate	0.1289	0.1289	0.1289
Average HKD: USD Exchange Rate [Member]
Foreign currency translation rate	0.1289	0.1289	0.1289
Spot RMB USD Exchange Rate [Member]
Foreign currency translation rate		0.0014		0.0015
Average RMB USD Exchange Rate [Member]
Foreign currency translation rate		0.0015		0.0016

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Summary Of Significant Accounting Policies - Schedule of Accounts Receivable (Details) - Yingxi Industrial Chain Group Co Ltd [Member] - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts receivable	$ 4,779,708	$ 5,415,614	$ 3,209,461
Within 1 Year [Member]
Accounts receivable	3,411,587	3,985,638	3,209,461
1-2 Year [Member]
Accounts receivable	$ 1,368,121	$ 1,429,976
1-2 Years [Member]
Accounts receivable

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Summary Of Significant Accounting Policies - Schedule of Estimated Useful Lives of Plant and Equipment (Details) - Yingxi Industrial Chain Group Co Ltd [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Production Equipment [Member] | Minimum [Member]
Estimated useful lives of property plant and equipment	5 years	5 years
Production Equipment [Member] | Maximum [Member]
Estimated useful lives of property plant and equipment	10 years	10 years
Vehicles [Member] | Minimum [Member]
Estimated useful lives of property plant and equipment	3 years	3 years
Vehicles [Member] | Maximum [Member]
Estimated useful lives of property plant and equipment	15 years	15 years
Office Equipment [Member] | Minimum [Member]
Estimated useful lives of property plant and equipment	5 years	5 years
Office Equipment [Member] | Maximum [Member]
Estimated useful lives of property plant and equipment	10 years	10 years

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Inventory - Schedule of Inventory (Details) - Yingxi Industrial Chain Group Co Ltd [Member] - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Raw material	$ 177,784	$ 98,282	$ 509,708
Work in progress	11,231	71,896	97,274
Finished goods	265,257	258,424	1,041
Consigned processing materials			21,357
Reusable materials			15
Inventory	$ 454,272	$ 428,602	$ 629,395

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Notes Receivable (Details Narrative) - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Yingxi Industrial Chain Group Co Ltd [Member]
Notes receivable	$ 1,131,898	$ 795,062	$ 64,495

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Property And Equipment (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Yingxi Industrial Chain Group Co Ltd [Member]
Depreciation	$ 52,652	$ 35,185	$ 102,967	$ 91,368

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Property And Equipment - Schedule of Property and Equipment (Details) - Yingxi Industrial Chain Group Co Ltd [Member] - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Property plant and equipment, gross	$ 990,785	$ 965,260	$ 1,028,074
Less: accumulated depreciation	(342,326)	(281,613)	(283,999)
Property and equipment, net	648,459	683,647	744,075
Production Equipment [Member]
Property plant and equipment, gross	143,957	140,249	137,240
Means of Transport [Member]
Property plant and equipment, gross	835,267
Office Equipment [Member]
Property plant and equipment, gross	$ 11,561	11,264	10,810
Vehicles [Member]
Property plant and equipment, gross		$ 813,747	$ 880,024

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Accounts Payable And Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - Yingxi Industrial Chain Group Co Ltd [Member] - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts payable	$ 2,659,689	$ 2,704,259	$ 707,792
Accrued payroll	104,599	117,269	94,246
Total	2,764,288	2,821,528	802,038
Within 1 Year [Member]
Accounts payable	2,511,753	2,677,531	456,342
1-2 Year [Member]
Accounts payable	147,936		251,450
2-3 year [Member]
Accounts payable		$ 26,728

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Loan Payable (Details Narrative) - Yingxi Industrial Chain Group Co Ltd [Member] - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Loans payable	$ 2,655,000			$ 184,800
Debt maturity, description			The term is from December 24, 2013 to December 23, 2018
Debt instrument interest rate			6.4125%
Repayment of debt	0	$ 183,720	$ 180,600	81,220
Interest expenses	0		2,701	$ 21,874
Proceeds from borrowings	$ 4,130,000

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Loan Payable - Schedule of Long Term Loans Payable (Details) - Yingxi Industrial Chain Group Co Ltd [Member] - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Loan payable gross	$ 4,130,000
Current portion of loans payable	2,655,000			$ 184,800
Long-term loans payable	1,475,000
Loan Payable With no Interest and 3 Years Maturity [Member]
Loan payable gross	1,475,000
Loan Payable With no Interest and 1 Years Maturity [Member]
Loan payable gross	$ 2,655,000

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Related Party Transactions (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Yingxi Industrial Chain Group Co Ltd [Member] | Shareholders for Acquisition Of Subsidiaries [Member]
Due to related parties	$ 1,580,844

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Related Party Transactions - Schedule of Due from Related Parties (Details) - Yingxi Industrial Chain Group Co Ltd [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Due from related parties	$ 21,824		$ 533,968
Hong Zhida [Member]
Due from related parties	$ 20,871
Relationship with the Company	CEO
Chen Zhongpeng [Member]
Due from related parties	$ 953		263,308
Relationship with the Company	Company’s legal representative	Company’s legal representative
Huang Dewu [Member]
Due from related parties			193,660
Relationship with the Company		Company’s legal representative
Chen Qiuying [Member]
Due from related parties			$ 77,000
Relationship with the Company		Company’s supervisor

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Related Party Transactions - Schedule of Due To Related Parties (Details) - Yingxi Industrial Chain Group Co Ltd [Member] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Due to related parties	$ 2,751,534	$ 3,900,030	$ 2,006,255
Yang Bihua [Member]
Due to related parties	$ 18,276	$ 1,957	58,071
Relationship with the Company	Company’s legal representative	Company's legal representative
Ding Yinping [Member]
Due to related parties	$ 501,245	$ 750,842	867,524
Relationship with the Company	Company’s legal representative	Company's legal representative
Huang Jinlong [Member]
Due to related parties	$ 1,289,950	$ 1,091,348	1,080,660
Relationship with the Company	Company’s supervisor	Company's supervisor
Chen Zhongpeng [Member]
Due to related parties	$ 814,688	$ 459,232
Relationship with the Company	Company’s legal representative	Company's legal representative
Huang Dewu [Member]
Due to related parties	$ 127,375	$ 15,807
Relationship with the Company	Company’s legal representative	Company's legal representative
Shareholders for Acquired Subsidiaries [Member]
Due to related parties
Shareholders for Acquisition Of Subsidiaries [Member]
Due to related parties		$ 1,580,844
Relationship with the Company		Shareholders under common control

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Concentration Of Credit Risks (Details Narrative) - Yingxi Industrial Chain Group Co Ltd [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Sales Revenue, Net [Member]
Concentration risk percentage	10.00%	10.00%
Sales Revenue, Net [Member] | Five Customers [Member]
Concentration risk percentage	52.00%	43.00%	54.00%
Accounts Receivable [Member]
Concentration risk percentage	10.00%	10.00%
Accounts Receivable [Member] | Five Customers [Member]
Concentration risk percentage	76.00%	74.00%	94.00%
Accounts Payable [Member]
Concentration risk percentage	10.00%	10.00%

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Income Tax (Details Narrative) - Yingxi Industrial Chain Group Co Ltd [Member] - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Provision for income taxes	$ (2,176)	$ (10,486)	$ (2,328)	$ (17,361)	$ (35,989)	$ (20,439)
DHSE [Member]
Income tax rate					10.00%	10.00%
SHPF [Member]
Income tax rate					10.00%
China [Member]
Income tax rate			25.00%		25.00%	25.00%

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Shareholders’ Equity (Details Narrative) - USD ($)		12 Months Ended
	Aug. 04, 2016	Dec. 31, 2015	Jun. 30, 2017	Dec. 31, 2016
Number of shares issued, value
Yingxi Industrial Chain Group Co Ltd [Member]
Common stock shares authorized		250,000,000	250,000,000	250,000,000
Common stock, par value		$ 0.0004	$ 0.0004	$ 0.0004
Common stock shares issued		250,000,000	250,000,000	250,000,000
Common stock shares outstanding		250,000,000	250,000,000	250,000,000
Yingxi Industrial Chain Group Co Ltd [Member] | Founders [Member]
Number of shares issued	250,000,000
Number of shares issued, value	$ 100,000