BUSINESS COMBINATION

6 Months Ended

Dec. 31, 2021

ORGANIZATION AND BUSINESS BACKGROUND

BUSINESS COMBINATION

NOTE 5 – BUSINESS COMBINATION

On July 1, 2021, the Company completed the acquisition of 51% equity interest of JiaYu Insurance Finance Limited (“JYIF”) (the “Acquisition”). The total consideration of the acquisition is $131,352.

The purchase price allocation resulted in $120,916 of goodwill, as below:

Acquired assets:	US$
Cash and cash equivalents	$	2,432
Prepayments		1,743
Plant and equipment		2,138
Amount due from related parties		21,203
		27,516
Less: Assumed liabilities
Accrued liabilities and other payables		(7,053	)
		(7,053	)
Fair value of net assets acquired		20,463
Non-controlling interest		(10,027	)
Exchange difference		-
Goodwill recorded		120,916
Cash consideration allocated	$	131,352

The Acquisition was accounted for as a business combination in accordance with ASC 805 “Business Combinations”. The Company has allocated the purchase price consideration based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from management estimation. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense.