BUSINESS COMBINATION

12 Months Ended

Jun. 30, 2022

ORGANIZATION AND BUSINESS BACKGROUND

BUSINESS COMBINATION

4. BUSINESS COMBINATION

Acquisition of JYIF

On July 1, 2021, the Company completed the acquisition of 51% equity interest of JiaYu Insurance Finance Limited (“JYIF”). The total consideration of the acquisition is $137,919.

The purchase price allocation resulted in $127,399 of goodwill, as below:

Acquired assets:	US$
Cash and cash equivalents	$	2,596
Prepayments		1,743
Plant and equipment		2,138
Amount due from related parties		21,203
		27,680
Less: Assumed liabilities
Accrued liabilities and other payables		(7,053	)
		(7,053	)
Fair value of net assets acquired		20,627
Non-controlling interest		(10,107	)
Goodwill recorded		127,399
Cash consideration allocated	$	137,919

During the year ended June 30, 2022, the Company disposed of its 51% equity interest and resulted with a loss of $161,559.

Acquisition of UPL

On June 30, 2022, the Company completed the acquisition of 100% equity interest of Union Passenger Limited (“Union”) (the “Acquisition”). The total consideration of the acquisition is issuance of an aggregate 8,000,000 restricted share of Company common stock (valued at $0.60 per share, equivalent to $4,800,000).

The purchase price allocation resulted in $5,029,592 of goodwill, as below:

Acquired assets:	US$
Cash and cash equivalents	$	53,942
Deposits		18,432
Plant and equipment		29,401
Other receivable		6,372
Amounts due from related parties		24,545
		132,692
Less: Assumed liabilities
Accounts payable		(61,324	)
Accrued liabilities and other payables		(14,222	)
Amounts due to related parties		(286,738	)
		(362,284	)
Fair value of net liabilities acquired		(229,592	)
Goodwill recorded		5,029,592
Consideration allocated	$	4,800,000