0001213900-21-042644.txt : 20210816
0001213900-21-042644.hdr.sgml : 20210816
20210816063344
ACCESSION NUMBER: 0001213900-21-042644
CONFORMED SUBMISSION TYPE: 10-Q
PUBLIC DOCUMENT COUNT: 41
CONFORMED PERIOD OF REPORT: 20210630
FILED AS OF DATE: 20210816
DATE AS OF CHANGE: 20210816
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: Pony Group Inc.
CENTRAL INDEX KEY: 0001784058
STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AUTOMOTIVE REPAIR, SERVICES & PARKING [7500]
IRS NUMBER: 833532241
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 10-Q
SEC ACT: 1934 Act
SEC FILE NUMBER: 333-234358
FILM NUMBER: 211174372
BUSINESS ADDRESS:
STREET 1: ENGINEER EXPERIMENT BUILDING, A202
STREET 2: 7 GAOXIN SOUTH AVENUE, NANSHAN DISTRICT
CITY: SHENZHEN, GUANGDONG PROVINCE
STATE: F4
ZIP: 518000
BUSINESS PHONE: 86-0755-86665622
MAIL ADDRESS:
STREET 1: ENGINEER EXPERIMENT BUILDING, A202
STREET 2: 7 GAOXIN SOUTH AVENUE, NANSHAN DISTRICT
CITY: SHENZHEN, GUANGDONG PROVINCE
STATE: F4
ZIP: 518000
10-Q
1
f10q0621_ponygroup.htm
QUARTERLY REPORT
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(MARK ONE)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2021
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: [ ]
Pony Group Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
83-3532241
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
Engineer Experiment Building, A202
7 Gaoxin South Avenue, Nanshan District Shenzhen, Guangdong Province
People’s Republic of China
(Address of principal executive offices)
+86755 86665622
(Issuer’s telephone number)
Securities registered pursuant to Section 12(b) of
the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
None
N/A
N/A
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐No☒
Indicate by check mark whether the registrant has submitted electronically
every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during
the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large
accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company”
in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting company
☒
Emerging growth company
☒
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of August 13, 2021, there were 11,500,000 shares of common stock,
par value $0.001 per share, issued and outstanding.
Ordinary shares, $0.001 par value, 70,000,000 shares authorized, 11,500,000 shares issued and outstanding as of June 30,2021 and December 31, 2020, respectively*
11,500
11,500
Additional paid-in capital
176,000
176,000
Accumulated foreign currency exchange loss
(9,178
)
(6,323
)
Accumulated deficit
(241,196
)
(182,320
)
Total Pony Group Inc stockholders’ equity
(62,874
)
(1,143
)
Total equity
(62,874
)
(1,143
)
Total liabilities and equity
$
297,590
$
336,826
* The shares are presented on a retroactive basis to reflect the nominal
share issuance.
The accompanying notes are integral to these consolidated
financial statements.
1
PONY GROUP INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For The Three Months
Ended
June 30,
For The Six Months
Ended
June 30,
2021
2020
2021
2020
Revenue
$
40,005
$
13,977
$
52,273
$
22,709
Cost of revenue
20,800
3,910
52,250
10,038
Gross profit
19,205
10,067
23
12,671
Operating expenses
General & administrative expenses
55,645
20,188
78,805
32,767
Total operating expenses
55,645
20,188
78,805
32,767
Income (loss) from operation
(36,440
)
(10,121
)
(78,782
)
(20,096
)
Other income (expenses)
Other income (expense)
20,005
2,719
19,906
2,961
Total other income
20,005
2,719
19,906
2,961
Income (Loss) before income taxes
(16,435
)
(7,402
)
(58,876
)
(17,135
)
Provision for income tax
-
-
-
-
Net Income (Loss)
$
(16,435
)
$
(7,402
)
$
(58,876
)
$
(17,135
)
Net Income (Loss)
(16,435
)
(7,402
)
(58,876
)
(17,135
)
Other Comprehensive Income
-
-
-
-
Comprehensive income (loss)
(16,435
)
(7,402
)
(58,876
)
(17,135
)
The accompanying notes are integral to these consolidated
financial statements.
* The shares are presented on a retroactive basis
to reflect the nominal share issuance.
The accompanying notes are integral to these consolidated
financial statements.
3
PONY GROUP INC., AND SUBSIDIARIES
CONSOLIDATED STATEMETNS OF CASH FLOWS
For The Six Months Ended June 30,
2021
2020
Operating activities
Net Loss
$
(58,876
)
$
(17,135
)
Changes in operating assets and liabilities:
Accounts receivable
27,325
-
Other receivable
(1
)
(122
)
Accounts payable
6,867
-
Other payable
51,028
53,787
Cash provided (used) in operating activities
26,343
36,530
Cash flow used in investing activities:
Investment in Pony HK
-
-
Cash used in investing activities
-
-
Cash flow provided (used) by financing activities:
Pay for deferred offering cost
-
(23,000
)
Advance from (repayment to) related party
(35,400
)
(31,432
)
Proceed from Issue of Common Stock
-
250,000
Cash provided by financing activities
(35,400
)
195,568
Effects of currency translation on cash
(2,855
)
(1,377
)
Net increase (decrease) in cash
(11,912
)
230,721
Cash at beginning of the period
286,957
44,105
Cash at end of period
$
275,045
$
274,826
The accompanying notes are integral to these consolidated
financial statements.
4
PONY GROUP INC., AND SUBSIDIARIES
NOTES FOR THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JUNE 30, 2021
NOTE 1 - ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Organization and Operations
PONY GROUP INC, (The “Company” or “PONY”) was
incorporated on Jan 7, 2019 in the state of Delaware.
On March 7, 2019, Pony Group Inc (the “Purchaser”), and
Wenxian Fan, the sole owner of PONY LIMOUSINE SERVICES LIMITED, entered into a Stock Purchase Agreement (the “Purchase Agreement”),
pursuant to which Wenxian Fan (the “Seller”) would sell to the Purchaser, and the Purchaser will purchase from the Seller,
10,000 shares of the PONY LIMOUSINE SERVICES LIMITED, which represented 100% of the shares. On March 07, 2019, this transaction was completed.
PONY LIMOUSINE SERVICES LIMITED (“PONYHK”) is a limited
liability company formed under the laws of Hong Kong on April 28, 2106, which was formed by FAN WENXIAN. Its registered office is located
at FLAT/RM 01 11/f, LUCKY COMM BLDG, 103 DES VOEUX RD WEST, SHEUNG WAN, HONG KONG. The business nature of the Company is to provide cross
boarder limousine services to customers. On February 2, 2019, Universe Travel Culture & Technology Ltd. (“Universe Travel”)
was incorporated as a wholly-owned PRC subsidiary of Pony HK
Details of the Company’s structure as of June 30, 2021 is as
follow:
5
Reverse Merger Accounting – Since Pony HK
and Pony US were entities under Ms. Fan’s common control prior to the “Purchase Agreement” was executed, and because
of certain other factors, including that the member of the Company’s executive management is from Pony HK, Pony HK is deemed to
be the acquiring company for accounting purposes and the Merger was accounted for as a reverse merger and a recapitalization in accordance
with generally accepted accounting principles in the United States (“GAAP”). These unaudited consolidated financial statements
reflect the historical results of Pony HK prior to the Merger and that of the combined Company following the Merger, and do not include
the historical financial results prior to the completion of the Merger. Common stock and the corresponding capital amounts of the Company
pre-Merger have been retroactively restated as capital stock shares.
Basis of Accounting and Presentation - The
accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America.
Cash and Cash Equivalents – For purpose
of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of 90 days or less
to be cash equivalents.
Accounts Receivable - The customers are required
to make payments when they book the services, otherwise, the services will not be arranged. Sometimes, the Company extends credit to its
group clients.
As of June 30, 2021 and December 31, 2020, accounts receivable was
$13,380 and $40,705, respectively. The company considers accounts receivable to be fully collectible and determined that an allowance
for doubtful accounts was not necessary.
PONY LIMOUSINE SERVICES LIMITED, a 100% subsidiary of the Company,
has agreements with its two major clients that the payments for the services rendered be settled every six months. The two major clients
account for 87.00% of the revenue for the six months ended June 30, 2021 and 57.00% for the same period 2020, respectively.
Revenue Recognition -
The Company recognizes revenue in accordance with ASC 606. The core principle of ASC606 is to recognize revenue when promised goods or
services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or
services. ASC 606 defines a five-step process to achieve this core principle, which includes: (1) identifying contracts with customers,
(2) identifying performance obligations within those contracts, (3) determining the transaction price, (4) allocating the transaction
price to the performance obligation in the contract, which may include an estimate of variable consideration, and (5) recognizing revenue
when or as each performance obligation is satisfied. Our sales arrangements generally ask customers to pay in advance before any services
can be arranged. The company recognizes revenue when each performance obligation is satisfied. Documents and terms and the completion
of any customer acceptance requirements, when applicable, are used to verify services rendered. The Company has no returns or sales discounts
and allowances because services rendered and accepted by customers are normally not returnable.
6
Cost of revenue – Cost
of revenue includes cost of services rendered during the period, net of discounts and sales tax.
Income Taxes – Income tax expense represents
current tax expense. The income tax payable represents the amounts expected to be paid to the taxation authority. Hong Kong profits tax
has been provided at the rate of 16.5% on the estimated assessable profit for the period.
Foreign Currency Translation - PONY LIMOUSINE
SERVICES LIMITED’s functional currency is the Hong Kong Dollar (HK$) and Universe Travel Culture & Technology Ltd.’s functional
currency is the Renminbi (RMB). The reporting currency is that of the US Dollar. Assets, liabilities and owners’ contribution are
translated at the exchange rates as of the balance sheet date. Income and expenditures are translated at the average exchange rate of
the year.
The exchange rates used to translate amounts in HK$ and RMB into USD
for the purposes of preparing the financial statements were as follows:
June 30, 2020
Balance sheet
HK$7.77 to US $1.00
RMB 6.46 to US $1.00
Statement of operation and other comprehensive income
HK$7.77 to US $1.00
RMB 6.46 to US$1.00
December 31, 2020
Balance sheet
HK$7.75 to US $1.00
RMB 6.53 to US $1.00
June 30, 2020
Statement of operation and other comprehensive income
HK$7.76 to US $1.00
RMB 7.03 to US$1.00
NOTE 2 - GOING CONCERN
The Company had operating losses of $58,876 and $17,135 during the
six months ended June 30, 2021 and 2020, respectively.
The Company has accumulated deficit of $241,193 and $182,320 as of
June 30, 2021 and December 31, 2020, respectively. The Company’s continuation as a going concern is dependent on its ability to
generate sufficient cash flows from operations to meet its obligations and/or obtain additional financing, as may be required.
The accompanying financial statements have been prepared assuming the
Company will continue as a going concern; however, the above condition raises substantial doubt about the Company’s ability to do
so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification
of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.
Management’s Plan to Continue as a Going Concern
In order to continue as a going concern, the Company will need, among
other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital
from the sale of its equity securities, (2) sales of the Company’s products, (3) short-term and long-term borrowings from banks,
and (4) short-term borrowings from stockholders or other related party (ies) when needed. However, management cannot provide any assurance
that the Company will be successful in accomplishing any of its plans.
The ability of the Company to continue as a going concern is dependent
upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing
and attain profitable operations.
7
NOTE 3 - RELATED
PARTY TRANSACTIONS
PONY GROUP INC, incorporated on Jan 7, 2019 in the state of Delaware,
is the sole owner of PONY LIMOUSINE SERVICES LIMITED (Pony HK), during the six months ended June 30, 2021, Pony HK paid $58,779 on behalf
of PONY GROUP INC for the US legal and audit cost incurred relevant to the OTC listing.
Amount of receivable from shareholders
due to the company declared a 6,000 to 1 stock split. After the stock split, the par value of the commons stocks was $0.001 per share.
The shareholders should pay the consideration of $8,998 to the company. For the company use a retroactive basis to present
the nominal shares, the considerations and receivable form shareholders also should be represented.
June 30, 2021
December 31, 2020
Receivable from shareholders
$
8,998
$
8,998
Total due from related parties
$
8,998
$
8,998
Ms. Wenxian Fan, the director, loaned working capital to Pony HK with
no interest and paid on behalf of Pony HK for the subcontracted services and employee salaries.
The Company has the following payables to Ms. Wenxian Fan:
June 30, 2021
December 31, 2020
To Wenxian Fan
$
265,083
$
300,483
Total due to related parties
$
265,083
$
300,483
NOTE 4 - MAJOR SUPPLIERS AND CUSTOMERS
The Company purchased majority of its subcontracted services from three
major suppliers during the six months ended June 30, 2021: Shenzhen Lingshang Cultural Technology Co., Ltd for 48.26%, CHANGYING BUSINESS
LIMITED for 34.28%, Global Express (Hong Kong) Limited for 11.20%.
The Company had two major customers for the six months ended June
30, 2021: HENG TAI WINE LIMITED for 79.43% of revenue and Shenzhen Shangjia Electronic Technology., Ltd for 17.01% of revenue.
8
NOTE 5 - COMMON
STOCK
On May 23, 2019, PONY GROUP INC sold 1,500 shares of common stock to
the following shareholders. On May 24, 2019, these transactions were completed, the consideration received were deposited into the company’s
bank account. On June 1, 2020, the company declared a 6,000 to 1 stock split. After the stock split, the par value of the commons stocks
was $0.001 per share. The shareholders and the number of shares held after the stock dividend are as following:
Name
Shares
Consideration
Pony Group Ltd.
5,580,000
5,580
Aller Bonvoyage Inc
360,000
360
Capital Club Holding Limited
360,000
360
KERUIDA Investment Limited
900,000
900
Synionm Investments Limited
900,000
900
Wisdom travel service investments Limited
900,000
900
In June 2020, the Company announced the closing
of its initial public offering of 2,500,000 ordinary shares at a public offering price of $0.1 per share, for total gross proceeds of
approximately $250,000 before deducting underwriting discounts, commissions and other related expenses.
NOTE 6 - SUBSEQUENT EVENTS
Management has evaluated subsequent events
through August 13, 2021, the date which the financial statements were available to be issued. All subsequent events requiring recognition
as of June 30, 2021 have been incorporated into these financial statements and there are no subsequent events that require disclosure
in accordance with FASB ASC Topic 855, “Subsequent Events.”
9
Item 2. Management’s
Discussion and Analysis of Financial Condition and Results of Operations
Overview
We were incorporated in the State of Delaware on January 7, 2019. We
are a travel service provider. We currently provide car services to individual and group travellers. We currently offer carpooling, airport
pick-up and drop-off, and personal driver services for travellers between Guangdong Province and Hong Kong. We collaborate with car fleet
companies and charge a service fee by matching the traveller and the driver. We officially launched our online service through our “Let’s
Go” mobile application in December 2019 to provide multi-language services to international travellers coming to visit China. Redefining
user experience, we aim to provide our users with comprehensive and convenient service offerings and become a one-stop travel booking
resource for travellers. While network scale is important, we recognize that transportation happens locally. We currently operate
in two markets – Guangdong Province and Hong Kong and plan to expand our offering in more oversea markets.
Plan of Operations
In January 2019, we started our Research and Development (“R&D”)
project mobile Lets Go App (“App”) designed to have multi-language interface to attract users from the world, focusing on
providing one-stop travel services to foreigners traveling in China, for both leisure and business.
In April 2019, we rolled out the basic version which supports carpooling,
car rental, airport pick-up and/or drop-off, etc., ready for download at Apple App store; the basic version has an interface in Chinese
language only. In May 2019, we rolled out second version which has an enhanced interface in both Chinese and English language, supporting
payment through PayPal.
We intend to attract users from outside of China to use our App and
expand our offerings on the App to serve as a one-stop shop to book tickets, reserve hotels, rent cars and hire English speaking drivers.
Our goal is to grow to an international player in the travel service
market. To accomplish such goal, we will cooperate with other businesses which have capital, marketing and technology resources or products.
We expect to recruit more workforce and talents, and develop new technologies and products.
10
Results
of Operations
For the three and
six months ended June 30, 2021 Compared to June 30, 2020
Revenue
For the three months ended June 30, 2021 and 2020, revenues were $40,005
and $13,977, respectively, with an increase of $26,028 over the same period in 2020. Due to the effect of COVID-19, the number of travellers
between Guangdong province and Hong Kong decease significantly. Thus the orders of our travel service business decrease in the three months
ended June 30, 2020.
For the six months ended June 30, 2021 and 2020, revenues were $52,273
and $22,709 respectively, with an increase of $29,564 over the same period in 2020.The increase is mainly due to the effect of COVID-19.
In compliance with the government health emergency rules in place, the Company temporarily closed all offices in China and ceased operations
from January 19, 2020 to February 10, 2020. During the six months ended June 30, 2021, parts orders of our travel service business have
recovered.
Cost of Revenue
Cost of Revenue for the three months ended June 30, 2021 and 2020 were
$20,800 and $3,910, respectively, with an increase of $16,890 over the same period in 2020. The increase mainly due to the service orders
increase a lot, thus the cost of revenue increased accordingly.
Cost of Revenue for the six months ended June 30, 2021 and 2020 were
$52,250 and $10,038, respectively, with an increase of $42,212 over the same period in 2020. The increase mainly due to the service orders
increase significantly, thus the cost of revenue increased accordingly.
Gross Profit
Gross profits were $19,205 and $10,067 for the three months ended June
30, 2021 and 2020, respectively, an increase of $9,138 over the same period in 2020. The gross profit margin as a percentage of sales
for the three months ending June 30, 2021 and 2020 were 48.01% and 72.03% respectively.
Gross profits were $23 and $12,671 for the six months ended June 30,
2021 and 2020, respectively, a decrease of $12,648 over the same period in 2020. The gross profit margin as a percentage of sales for
the six months ending June 30, 2021 and 2020 were 0.04% and 55.80%, respectively.
Operating Expenses
Operating expenses for the three months ended June 30, 2021 and 2020
were $55,645 and $20,188 respectively for an increase of $35,457. The increase mainly due to professional fees paid during the tree months
ended June 30, 2021. The company paid legal fees and audit fees which were related to the OTC listing and restatement of quarterly financial
report during the three month ended June 30, 2021.
Operating expenses for the six months ended June 30, 2021 and 2020
were $78,805 and $32,767, respectively, an increase of $46,038 from the same period in 2020. The increase was mainly due to the effect
of COVID-19 which the Company temporarily closed all offices in China and ceased operations from January 19, 2020 to February 10, 2020.
There was no such item during the six months ended June 30, 2021. The increase was also due to the professional fees paid which was mentioned
above.
11
Other Income
Other income consists of interest income and exchange gain (loss) for
the three months ended June 30, 2021 and 2020, the net other income were $20,005 and $2,719, respectively with an increase of $17,286.
The increase was mainly due to the change of exchange rate and the increase of average cash balance. For the six months ended June 30,
2021 and 2020, the net other income (expenses) were $19,906 and $2,961, respectively with an increase of $16,945. The increase was mainly
due to the change of exchange rate and the increase of average cash balance.
For the three and
six months ended June 30, 2020 compared to June 30, 2019
Revenue
For the three months ended June 30, 2020 and 2019, revenues were $13,977
and $13,253, respectively, with an increase of $724 over the same period in 2019. Due to the effect of COVID-19, the number of travellers
between Guangdong province and Hong Kong decease significantly. Thus the orders of our travel service business decreased in the three
months ended June 30, 2020. The decrease was offset by development service revenue RMB68,000 (USD 9,605) for we provided development service
for Shenzhen Shangjia Electronic Technology Co., Ltd to develop an applet base on WeChat platform.
For the six months ended June 30, 2020 and 2019, revenues were $ 22,709
and $ 26,324, respectively, with a decrease of $3,615 over the same period in 2019.The decrease is mainly due to the effect of COVID-19.
In compliance with the government health emergency rules in place, the Company temporarily closed all offices in China and ceased operations
from January 19, 2020 to February 10, 2020. We expect the COVID-19 outbreak may materially affect our financial condition and results
of operations going forward.
Cost of Revenue
Cost of Revenue for the three months ended June 30, 2020 and 2019 were
$3,910 and $12,678, respectively, with a decrease of $8,768 over the same period in 2019. The decrease mainly due to the service orders
decreased significantly, thus the cost of revenue decrease accordingly.
Cost of Revenue for the six months ended June 30, 2020 and 2019 were
$10,038 and $23,577, respectively, with a decrease of $13,539 over the same period in 2019. The decrease mainly due to the service orders
decreased significantly, thus the cost of revenue decrease accordingly.
Gross Profit
Gross profits were $10,067 and $575 for the three months ended June
30, 2020 and 2019, respectively, an increase of $9,492 over the same period in 2019. The gross profit margin as a percentage of sales
for the three months ending June 30, 2020 and 2019 was 72.03% and 4.34% respectively.
Gross profits were $12,671 and $2,747 for the six months ended June
30, 2020 and 2019, respectively, an increase of $9,924 over the same period in 2019. The gross profit margin as a percentage of sales
for the six months ending June 30, 2019 and 2018 was 55.80% and 10.44%, respectively.
Operating Expenses
Operating expenses for the three months ended
June 30, 2020 and 2019 were $20,188 and $24,278 respectively for a decrease of $4,090. The decrease was mainly due to the effect of COVID-19
and management and employee agreement to decrease salary payments. The management expects the operating expenses will increase in the
future.
Operating expenses for the six months ended June
30, 2020 and 2019 were $32,767 and $78,006, respectively, a decrease of $45,239 or 57.99% from the same period in 2019. The decrease mainly
due to the effect of COVID-19 the Company temporarily closed all offices in China and ceased operations from January 19, 2020 to February
10, 2020.
12
Other Income
Other income consists of interest income and exchange gain (loss) for
the three months ended June 30, 2020 and 2019, the net other income was $2,719 and $1,423, respectively with an increase of $1,296. The
increase was mainly due to the change of exchange rate. For the six months ended June 30, 2020 and 2019, the net other income (expenses)
were $2,961 and $1,493, respectively with an increase of $1,468. The increase was mainly due to the change of exchange rate.
Liquidity and Capital Resources
We suffered recurring losses from operations and have an accumulated
deficit of $241,196 as of June 30, 2021. We had a cash balance of $275,045 and working capital of negative $62,874 as of June 30, 2021.
The Company has incurred losses of $58,876 and $17,135 for the six months ended June 30, 2021 and 2020, respectively. The Company has
not continually generated significant gross margins. Unless our operations generate a significant increase in gross margins and cash flows
from operating activities, our continued operations will depend on whether we are able to raise additional funds through various sources,
such as equity and debt financing, other collaborative agreements and/or strategic alliances. Our management is actively engaged in seeking
additional capital to fund our operations in the short to medium term. Such additional funds may not become available on acceptable terms
and there can be no assurance that any additional funding that we do obtain will be sufficient to meet our needs in the long term. As
of June 30, 2021, we have enough cash to last approximately six months.
Net cash provided by operating activities for the six months ended
June 30, 2021, amounted to $26,343, compared to $36,530 net cash provided by operating activities for the six months ended June 30, 2020.
The decrease of net cash provided by operating activities was primarily due to the increase of net loss.
There were $0 cash used by investment activities for the six months
ended June 30, 2021 and 2020.
Net cash used in financing activities for the six months ended June
30, 2021 amounted to $35,400, compared to net cash provided by financing activities of $195,568 in the same period 2020. In June 2020,
we completed the initial public offering and received proceeds of $250,000 before deducting underwriting discounts, commissions and other
related expenses.
13
COVID-19
In January 2020, the World Health Organization declared a global health
emergency as the novel coronavirus (“COVID-19”) outbreak continues to spread beyond China. In an effort to contain COVID-19,
the Chinese authorities have suspended air, road, and rail travel in the area around Wuhan and placed restrictions on travel and other
activities throughout China, including Guangdong Province and Hong Kong, the key market in which we operate. In compliance with the government
health emergency rules in place, the Company temporarily closed all offices in China and ceased operations from January 19, 2020 to February
10, 2020. At the end of this period, management reopened our business.
As of the date of this prospectus, the Hong Kong government has reported
cases of COVID-19 in the region, has upgraded its response level to emergency, its highest response level, and is taking other steps to
manage the outbreak. On February 8, 2020, the Hong Kong government began enforcing a compulsory 21-day quarantine for anyone, with reduced
quarantine period for vaccinated persons arriving in Hong Kong from overseas depending on their port of embarkation. Moreover, this mandatory
quarantine does not apply to individuals transiting Hong Kong International Airport and certain exempted groups such as flight crews.
However, health screening measures are in place at all of Hong Kong’s borders and the Hong Kong authorities will quarantine individual
travellers, including passengers transiting the Hong Kong International Airport, if the Hong Kong authorities determine the traveller
to be a health risk. On January 30, 2020, the Hong Kong government closed certain transportation links and border checkpoints connecting
Hong Kong with mainland China (all located in Guangdong Province) until further notice, and on February 3, 2020 suspended ferry services
from Macau (which has border checkpoints connecting Macau with Guangdong Province).
The effects of the COVID-19 pandemic, including the travel restrictions
described above, have resulted in a dramatic reduction in the number of people travelling from Guangdong Province to Hong Kong and a similar
reduction in the number of our customers and have, severely impacted our operating results during the first quarter of 2020. For example,
compared to the first quarter of 2019, the first quarter of 2020’s revenue, cost of revenue and operating expenses decreased by
33.2%, 43.8% and 76.6%, respectively, and gross profit and other income increased by 19.9% and 240.8%, respectively. We believe the decreases,
including the decrease in cost of revenue, are primarily attributable to the fact that we ceased car services for individual and group
travellers between Guangdong Province and Hong Kong in the first quarter of 2020, resulting in a decrease of customers. In the same period,
we started to provide express, small-package delivery services for customers in the same region in cities including Shenzhen, Guangzhou,
Zhuhai and Zhongshan, which brought in an estimated $8,700 of revenue. We expect that after our offices reopened on February 11, 2020
and as the travel restrictions started to ease, our business will gradually return to normal levels, although we are unable to predict
as of the date of this prospectus the speed of the recovery.
We expect the COVID-19 outbreak may materially affect our financial
condition and results of operations going forward. Our business operations and active ties in many regions (including Hong Kong and Guangdong
Province) may be subject to quarantines, “shelter-in-place” rules, and various other restrictions for the foreseeable future.
Due to the uncertainty of the future impacts of the COVID-19 pandemic, the extent of the financial impact cannot be reasonably estimated
at this time. Without limited the generality of the foregoing sentence, any significant disruption to travel, including travel restrictions
and other potential protective quarantine measures against COVID-19 by governmental agencies, may increase the difficulty and could make
it difficult for the Company to provide its services to its customers. Travel restrictions and protective measures against COVID-19 could
cause the Company to incur additional unexpected costs and expenses. The extent to which COVID-19 impacts the Company’s business,
sales and results of operations will depend on future developments, which are highly uncertain and cannot be predicted.
14
Going Concern
The accompanying consolidated financial statements have been prepared
assuming the Company will continue as a going concern; however, the above condition raises substantial doubt about the Company’s
ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability
and classification of assets or the amounts and classification of liabilities that may result should the Company be unable to continue
as a going concern.
In order to continue as a going concern, the Company will need, among
other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital
from the sale of its equity securities, (2) sales of the Company’s services, (3) short-term and long-term borrowings from banks,
and (4) short-term borrowings from stockholders or other related party(ies) when needed. However, management cannot provide any assurance
that the Company will be successful in accomplishing any of its plans. The ability of the Company to continue as a going concern is dependent
upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing
and attain profitable operations.
Critical Accounting Policies
The discussion and analysis of the Company’s financial condition
and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance
with accounting principles generally accepted in the United States of America. We continually evaluate our estimates, including those
related to bad debts, the useful life of property and equipment and intangible assets, and the valuation of equity transactions. We base
our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent
from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues,
expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. We believe
the following critical accounting policies affect our significant judgments and estimates used in the preparation of the financial statements.
Accounts Receivable - The customers are required to make payments
when they book the services, otherwise, the services will not be arranged. Sometimes, the Company extends credit to its group clients.
The company considers accounts receivable to be fully collectible at year-end. Accordingly, no allowance for doubtful accounts has been
recorded.
Revenue Recognition - The Company recognizes revenue in accordance
with ASC 606. The core principle of ASC606 is to recognize revenue when promised goods or services are transferred to customers in an
amount that reflects the consideration that is expected to be received for those goods or services. ASC 606 defines a five-step process
to achieve this core principle, which includes: (1) identifying contracts with customers, (2) identifying performance obligations within
those contracts, (3) determining the transaction price, (4) allocating the transaction price to the performance obligation in the contract,
which may include an estimate of variable consideration, and (5) recognizing revenue when or as each performance obligation is satisfied.
Our sales arrangements generally ask customers to pay in advance before any services can be arranged. The company recognizes revenue when
each performance obligation is satisfied. Documents and terms and the completion of any customer acceptance requirements, when applicable,
are used to verify services rendered. The Company has no returns or sales discounts and allowances because services rendered and accepted
by customers are normally not returnable
Off-Balance Sheet Arrangements
As of June 30, 2021, we did not have any off-balance sheet arrangements
as defined in Item 303(a)(4)(ii) of Regulation S-K.
15
Item 3. Quantitative and Qualitative
Disclosures about Market Risk
As a smaller reporting company, we are not required to make disclosures
under this item.
Item 4. Controls and Procedures
Under the supervision and with the participation of our management,
including our principal executive officer and principal financial and accounting officer, we conducted an evaluation of the effectiveness
of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this
evaluation, our principal executive officer and principal financial and accounting officer have concluded that as of June 30, 2021, our
disclosure controls and procedures were effective.
Disclosure controls and procedures are designed to ensure that information
required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified
in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal
executive officer and principal financial officer or persons performing similar functions, as appropriate to allow timely decisions regarding
required disclosure.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting
during the quarter ended June 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting
16
PART II — OTHER
INFORMATION
Item 1. Legal Proceedings.
Item 1A. Risk Factors
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item
3. Defaults Upon Senior Securities.
Item
4. Mine Safety Disclosures
Item
5. Other Information.
Item 6. Exhibits
The following exhibits are filed as part of, or incorporated by reference
into, this Quarterly Report on Form 10-Q.
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
*
Filed herewith.
**
Furnished.
17
SIGNATURES
In accordance with the requirements of the Exchange
Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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I, Wenxian Fan, Chief Executive Officer of Pony Group Inc., certify
that:
1.
I have reviewed this quarterly report on Form 10-Q of Pony Group Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)
Designed such disclosure controls
and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
b)
Designed such internal control
over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles;
c)
Evaluated the effectiveness
of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
Disclosed in this report any
change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter
(the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial reporting; and
5.
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and audit committee:
a)
All significant deficiencies
and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize and report financial information; and
b)
Any fraud, whether or not material,
that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
In connection with the quarterly
report of Pony Group Inc. (the “Company”) on Form 10-Q for the year ended March 31, 2021, as filed with the Securities and
Exchange Commission on the date hereof (the “Report”), I, Wenxian Fan, Chief Executive Officer of the Company, certify, pursuant
to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
1.
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
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Group Inc.DE83-3532241Engineer Experiment BuildingNanshan DistrictShenzhenCN+86755 86665622NoYesNon-accelerated Filertruetruefalsefalse1150000027504528695713380407051671668998899829759033682629759033682616458959126508330048378923278953604643379693604643379690.0010.0017000000070000000115000001150000011500000115000001150011500176000176000-9178-6323-241196-182320-62874-1143-62874-1143297590336826400051397752273227092080039105225010038192051006723126715564520188788053276755645201887880532767-36440-10121-78782-20096200052719199062961200052719199062961-16435-7402-58876-17135-16435-7402-58876-17135-16435-7402-58876-17135-16435-7402-58876-1713590000009000-565-140533-13209825000002500176000178500-1377-1377-17135-171351150000011500176000-1942-15766827890-4381-4381-24652-246521150000011500176000-6323-182320-1143-2855-2855-58876-588761150000011500176000-9178-241196-62874-58876-17135-27325112268675102853787263433653023000-35400-31432250000-35400195568-2855-1377-1191223072128695744105275045274826<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 1 - <span style="text-decoration:underline">ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</span></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> <i> </i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Organization and Operations </span></i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PONY GROUP INC, (The “Company” or “PONY”) was
incorporated on Jan 7, 2019 in the state of Delaware.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On March 7, 2019, Pony Group Inc (the “Purchaser”), and
Wenxian Fan, the sole owner of PONY LIMOUSINE SERVICES LIMITED, entered into a Stock Purchase Agreement (the “Purchase Agreement”),
pursuant to which Wenxian Fan (the “Seller”) would sell to the Purchaser, and the Purchaser will purchase from the Seller,
10,000 shares of the PONY LIMOUSINE SERVICES LIMITED, which represented 100% of the shares. On March 07, 2019, this transaction was completed.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PONY LIMOUSINE SERVICES LIMITED (“PONYHK”) is a limited
liability company formed under the laws of Hong Kong on April 28, 2106, which was formed by FAN WENXIAN. Its registered office is located
at FLAT/RM 01 11/f, LUCKY COMM BLDG, 103 DES VOEUX RD WEST, SHEUNG WAN, HONG KONG. The business nature of the Company is to provide cross
boarder limousine services to customers. On February 2, 2019, Universe Travel Culture & Technology Ltd. (“Universe Travel”)
was incorporated as a wholly-owned PRC subsidiary of Pony HK</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Details of the Company’s structure as of June 30, 2021 is as
follow:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><img alt="" src="image_001.jpg"/> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Reverse Merger Accounting </span></i></b>– Since Pony HK
and Pony US were entities under Ms. Fan’s common control prior to the “Purchase Agreement” was executed, and because
of certain other factors, including that the member of the Company’s executive management is from Pony HK, Pony HK is deemed to
be the acquiring company for accounting purposes and the Merger was accounted for as a reverse merger and a recapitalization in accordance
with generally accepted accounting principles in the United States (“GAAP”). These unaudited consolidated financial statements
reflect the historical results of Pony HK prior to the Merger and that of the combined Company following the Merger, and do not include
the historical financial results prior to the completion of the Merger. Common stock and the corresponding capital amounts of the Company
pre-Merger have been retroactively restated as capital stock shares.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Basis of Accounting and Presentation </span></i></b>- The
accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Cash and Cash Equivalents </span></i></b>– For purpose
of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of 90 days or less
to be cash equivalents.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Accounts Receivable </span></i></b>- The customers are required
to make payments when they book the services, otherwise, the services will not be arranged. Sometimes, the Company extends credit to its
group clients.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of June 30, 2021 and December 31, 2020, accounts receivable was
$13,380 and $40,705, respectively. The company considers accounts receivable to be fully collectible and determined that an allowance
for doubtful accounts was not necessary.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PONY LIMOUSINE SERVICES LIMITED, a 100% subsidiary of the Company,
has agreements with its two major clients that the payments for the services rendered be settled every six months. The two major clients
account for 87.00% of the revenue for the six months ended June 30, 2021 and 57.00% for the same period 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.35pt"><b><i><span style="text-decoration:underline">Revenue Recognition </span></i></b>-
The Company recognizes revenue in accordance with ASC 606. The core principle of ASC606 is to recognize revenue when promised goods or
services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or
services. ASC 606 defines a five-step process to achieve this core principle, which includes: (1) identifying contracts with customers,
(2) identifying performance obligations within those contracts, (3) determining the transaction price, (4) allocating the transaction
price to the performance obligation in the contract, which may include an estimate of variable consideration, and (5) recognizing revenue
when or as each performance obligation is satisfied. Our sales arrangements generally ask customers to pay in advance before any services
can be arranged. The company recognizes revenue when each performance obligation is satisfied. Documents and terms and the completion
of any customer acceptance requirements, when applicable, are used to verify services rendered. The Company has no returns or sales discounts
and allowances because services rendered and accepted by customers are normally not returnable.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.35pt"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.35pt"><b><i><span style="text-decoration:underline">Cost of revenue </span></i></b>– Cost
of revenue includes cost of services rendered during the period, net of discounts and sales tax.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.35pt"> <b><i> </i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Income Taxes </span></i></b>– Income tax expense represents
current tax expense. The income tax payable represents the amounts expected to be paid to the taxation authority. Hong Kong profits tax
has been provided at the rate of 16.5% on the estimated assessable profit for the period.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Foreign Currency Translation </span></i></b>- PONY LIMOUSINE
SERVICES LIMITED’s functional currency is the Hong Kong Dollar (HK$) and Universe Travel Culture & Technology Ltd.’s functional
currency is the Renminbi (RMB). The reporting currency is that of the US Dollar. Assets, liabilities and owners’ contribution are
translated at the exchange rates as of the balance sheet date. Income and expenditures are translated at the average exchange rate of
the year.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The exchange rates used to translate amounts in HK$ and RMB into USD
for the purposes of preparing the financial statements were as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; ">
<td style="text-decoration: underline">June 30, 2020</td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 80%; text-align: left">Balance sheet</td><td style="width: 1%"> </td>
<td style="white-space: nowrap; width: 9%; text-align: right">HK$7.77 to US $1.00</td><td style="width: 1%"> </td>
<td style="white-space: nowrap; width: 9%; text-align: left">RMB 6.46 to US $1.00</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Statement of operation and other comprehensive income</td><td> </td>
<td style="white-space: nowrap; text-align: right">HK$7.77 to US $1.00</td><td> </td>
<td style="white-space: nowrap; text-align: left">RMB 6.46 to US$1.00</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline">December 31, 2020</td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td><td> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Balance sheet</td><td> </td>
<td style="white-space: nowrap; text-align: right">HK$7.75 to US $1.00</td><td> </td>
<td style="white-space: nowrap; text-align: left">RMB 6.53 to US $1.00</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>June 30, 2020</td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td><td> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Statement of operation and other comprehensive income</td><td> </td>
<td style="white-space: nowrap; text-align: right">HK$7.76 to US $1.00</td><td> </td>
<td style="white-space: nowrap; text-align: left">RMB 7.03 to US$1.00</td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Organization and Operations </span></i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PONY GROUP INC, (The “Company” or “PONY”) was
incorporated on Jan 7, 2019 in the state of Delaware.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On March 7, 2019, Pony Group Inc (the “Purchaser”), and
Wenxian Fan, the sole owner of PONY LIMOUSINE SERVICES LIMITED, entered into a Stock Purchase Agreement (the “Purchase Agreement”),
pursuant to which Wenxian Fan (the “Seller”) would sell to the Purchaser, and the Purchaser will purchase from the Seller,
10,000 shares of the PONY LIMOUSINE SERVICES LIMITED, which represented 100% of the shares. On March 07, 2019, this transaction was completed.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PONY LIMOUSINE SERVICES LIMITED (“PONYHK”) is a limited
liability company formed under the laws of Hong Kong on April 28, 2106, which was formed by FAN WENXIAN. Its registered office is located
at FLAT/RM 01 11/f, LUCKY COMM BLDG, 103 DES VOEUX RD WEST, SHEUNG WAN, HONG KONG. The business nature of the Company is to provide cross
boarder limousine services to customers. On February 2, 2019, Universe Travel Culture & Technology Ltd. (“Universe Travel”)
was incorporated as a wholly-owned PRC subsidiary of Pony HK</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Details of the Company’s structure as of June 30, 2021 is as
follow:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>100001<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Reverse Merger Accounting </span></i></b>– Since Pony HK
and Pony US were entities under Ms. Fan’s common control prior to the “Purchase Agreement” was executed, and because
of certain other factors, including that the member of the Company’s executive management is from Pony HK, Pony HK is deemed to
be the acquiring company for accounting purposes and the Merger was accounted for as a reverse merger and a recapitalization in accordance
with generally accepted accounting principles in the United States (“GAAP”). These unaudited consolidated financial statements
reflect the historical results of Pony HK prior to the Merger and that of the combined Company following the Merger, and do not include
the historical financial results prior to the completion of the Merger. Common stock and the corresponding capital amounts of the Company
pre-Merger have been retroactively restated as capital stock shares.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Basis of Accounting and Presentation </span></i></b>- The
accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Cash and Cash Equivalents </span></i></b>– For purpose
of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of 90 days or less
to be cash equivalents.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i> </i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Accounts Receivable </span></i></b>- The customers are required
to make payments when they book the services, otherwise, the services will not be arranged. Sometimes, the Company extends credit to its
group clients.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of June 30, 2021 and December 31, 2020, accounts receivable was
$13,380 and $40,705, respectively. The company considers accounts receivable to be fully collectible and determined that an allowance
for doubtful accounts was not necessary.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PONY LIMOUSINE SERVICES LIMITED, a 100% subsidiary of the Company,
has agreements with its two major clients that the payments for the services rendered be settled every six months. The two major clients
account for 87.00% of the revenue for the six months ended June 30, 2021 and 57.00% for the same period 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>133804070510.87000.5700<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.35pt"><b><i><span style="text-decoration:underline">Revenue Recognition </span></i></b>-
The Company recognizes revenue in accordance with ASC 606. The core principle of ASC606 is to recognize revenue when promised goods or
services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or
services. ASC 606 defines a five-step process to achieve this core principle, which includes: (1) identifying contracts with customers,
(2) identifying performance obligations within those contracts, (3) determining the transaction price, (4) allocating the transaction
price to the performance obligation in the contract, which may include an estimate of variable consideration, and (5) recognizing revenue
when or as each performance obligation is satisfied. Our sales arrangements generally ask customers to pay in advance before any services
can be arranged. The company recognizes revenue when each performance obligation is satisfied. Documents and terms and the completion
of any customer acceptance requirements, when applicable, are used to verify services rendered. The Company has no returns or sales discounts
and allowances because services rendered and accepted by customers are normally not returnable.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.35pt"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.35pt"><b><i><span style="text-decoration:underline">Cost of revenue </span></i></b>– Cost
of revenue includes cost of services rendered during the period, net of discounts and sales tax.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -0.35pt"> <b><i> </i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Income Taxes </span></i></b>– Income tax expense represents
current tax expense. The income tax payable represents the amounts expected to be paid to the taxation authority. Hong Kong profits tax
has been provided at the rate of 16.5% on the estimated assessable profit for the period.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p>0.165<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i><span style="text-decoration:underline">Foreign Currency Translation </span></i></b>- PONY LIMOUSINE
SERVICES LIMITED’s functional currency is the Hong Kong Dollar (HK$) and Universe Travel Culture & Technology Ltd.’s functional
currency is the Renminbi (RMB). The reporting currency is that of the US Dollar. Assets, liabilities and owners’ contribution are
translated at the exchange rates as of the balance sheet date. Income and expenditures are translated at the average exchange rate of
the year.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The exchange rates used to translate amounts in HK$ and RMB into USD
for the purposes of preparing the financial statements were as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; ">
<td style="text-decoration: underline">June 30, 2020</td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 80%; text-align: left">Balance sheet</td><td style="width: 1%"> </td>
<td style="white-space: nowrap; width: 9%; text-align: right">HK$7.77 to US $1.00</td><td style="width: 1%"> </td>
<td style="white-space: nowrap; width: 9%; text-align: left">RMB 6.46 to US $1.00</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Statement of operation and other comprehensive income</td><td> </td>
<td style="white-space: nowrap; text-align: right">HK$7.77 to US $1.00</td><td> </td>
<td style="white-space: nowrap; text-align: left">RMB 6.46 to US$1.00</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline">December 31, 2020</td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td><td> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Balance sheet</td><td> </td>
<td style="white-space: nowrap; text-align: right">HK$7.75 to US $1.00</td><td> </td>
<td style="white-space: nowrap; text-align: left">RMB 6.53 to US $1.00</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>June 30, 2020</td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td><td> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Statement of operation and other comprehensive income</td><td> </td>
<td style="white-space: nowrap; text-align: right">HK$7.76 to US $1.00</td><td> </td>
<td style="white-space: nowrap; text-align: left">RMB 7.03 to US$1.00</td></tr>
</table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; ">
<td style="text-decoration: underline">June 30, 2020</td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 80%; text-align: left">Balance sheet</td><td style="width: 1%"> </td>
<td style="white-space: nowrap; width: 9%; text-align: right">HK$7.77 to US $1.00</td><td style="width: 1%"> </td>
<td style="white-space: nowrap; width: 9%; text-align: left">RMB 6.46 to US $1.00</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Statement of operation and other comprehensive income</td><td> </td>
<td style="white-space: nowrap; text-align: right">HK$7.77 to US $1.00</td><td> </td>
<td style="white-space: nowrap; text-align: left">RMB 6.46 to US$1.00</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-decoration: underline">December 31, 2020</td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td><td> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Balance sheet</td><td> </td>
<td style="white-space: nowrap; text-align: right">HK$7.75 to US $1.00</td><td> </td>
<td style="white-space: nowrap; text-align: left">RMB 6.53 to US $1.00</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>June 30, 2020</td><td> </td>
<td style="white-space: nowrap; text-align: right"> </td><td> </td>
<td style="white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Statement of operation and other comprehensive income</td><td> </td>
<td style="white-space: nowrap; text-align: right">HK$7.76 to US $1.00</td><td> </td>
<td style="white-space: nowrap; text-align: left">RMB 7.03 to US$1.00</td></tr>
</table>7.771.006.461.007.771.006.461.007.751.006.531.007.761.007.031.00<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-transform: uppercase"><b>NOTE 2 - <span style="text-decoration:underline">GOING CONCERN</span></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company had operating losses of $58,876 and $17,135 during the
six months ended June 30, 2021 and 2020, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has accumulated deficit of $241,193 and $182,320 as of
June 30, 2021 and December 31, 2020, respectively. The Company’s continuation as a going concern is dependent on its ability to
generate sufficient cash flows from operations to meet its obligations and/or obtain additional financing, as may be required.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying financial statements have been prepared assuming the
Company will continue as a going concern; however, the above condition raises substantial doubt about the Company’s ability to do
so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification
of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-decoration:underline">Management’s Plan to Continue as a Going Concern</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In order to continue as a going concern, the Company will need, among
other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital
from the sale of its equity securities, (2) sales of the Company’s products, (3) short-term and long-term borrowings from banks,
and (4) short-term borrowings from stockholders or other related party (ies) when needed. However, management cannot provide any assurance
that the Company will be successful in accomplishing any of its plans.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The ability of the Company to continue as a going concern is dependent
upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing
and attain profitable operations.</p>-58876-17135-241193-182320<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-transform: uppercase"><b>NOTE 3 - <span style="text-decoration:underline">RELATED
PARTY TRANSACTIONS</span></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-transform: uppercase"><b> </b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PONY GROUP INC, incorporated on Jan 7, 2019 in the state of Delaware,
is the sole owner of PONY LIMOUSINE SERVICES LIMITED (Pony HK), during the six months ended June 30, 2021, Pony HK paid $58,779 on behalf
of PONY GROUP INC for the US legal and audit cost incurred relevant to the OTC listing.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-size: 10pt">Amount of receivable from shareholders
due to the company declared a 6,000 to 1 stock split. After the stock split, the par value of the commons stocks was $0.001 per share.
The shareholders should pay the consideration of $8,998 to the company. For the company use a retroactive basis to </span><span style="font-family: Times New Roman, Times, Serif; ">p</span><span style="font-size: 10pt">resent
the nominal shares, the considerations and receivable form shareholders also should be represented.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Receivable from shareholders</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">8,998</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">8,998</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Total due from related parties</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">8,998</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">8,998</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Ms. Wenxian Fan, the director, loaned working capital to Pony HK with
no interest and paid on behalf of Pony HK for the subcontracted services and employee salaries.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has the following payables to Ms. Wenxian Fan:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">To Wenxian Fan</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">265,083</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">300,483</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Total due to related parties</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">265,083</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">300,483</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>58779Amount of receivable from shareholders
due to the company declared a 6,000 to 1 stock split. After the stock split, the par value of the commons stocks was $0.001 per share.
The shareholders should pay the consideration of $8,998 to the company.<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Receivable from shareholders</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">8,998</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">8,998</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Total due from related parties</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">8,998</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">8,998</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>8998899889988998<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br/> 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br/> 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">To Wenxian Fan</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">265,083</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">300,483</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Total due to related parties</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">265,083</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">300,483</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>265083300483265083300483<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-transform: uppercase"><b>NOTE 4 - <span style="text-decoration:underline">MAJOR SUPPLIERS AND CUSTOMERS</span></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company purchased majority of its subcontracted services from three
major suppliers during the six months ended June 30, 2021: Shenzhen Lingshang Cultural Technology Co., Ltd for 48.26%, CHANGYING BUSINESS
LIMITED for 34.28%, Global Express (Hong Kong) Limited for 11.20%.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company had two major customers for the six months ended June
30, 2021: HENG TAI WINE LIMITED for 79.43% of revenue and Shenzhen Shangjia Electronic Technology., Ltd for 17.01% of revenue. </p>30.48260.34280.112020.79430.1701<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="text-transform: uppercase"><b>NOTE 5 - <span style="text-decoration:underline">COMMON
STOCK</span></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On May 23, 2019, PONY GROUP INC sold 1,500 shares of common stock to
the following shareholders. On May 24, 2019, these transactions were completed, the consideration received were deposited into the company’s
bank account. On June 1, 2020, the company declared a 6,000 to 1 stock split. After the stock split, the par value of the commons stocks
was $0.001 per share. The shareholders and the number of shares held after the stock dividend are as following:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 1.5pt solid">Name</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consideration</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Pony Group Ltd.</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5,580,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5,580</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Aller Bonvoyage Inc</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Capital Club Holding Limited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">KERUIDA Investment Limited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Synionm Investments Limited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Wisdom travel service investments Limited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900</td><td style="text-align: left"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">In June 2020, the Company announced the closing
of its initial public offering of 2,500,000 ordinary shares at a public offering price of $0.1 per share, for total gross proceeds of
approximately $250,000 before deducting underwriting discounts, commissions and other related expenses. </p>1500the company declared a 6,000 to 1 stock split.0.001<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 1.5pt solid">Name</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Consideration</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Pony Group Ltd.</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5,580,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">5,580</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Aller Bonvoyage Inc</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Capital Club Holding Limited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">360</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">KERUIDA Investment Limited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Synionm Investments Limited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Wisdom travel service investments Limited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">900</td><td style="text-align: left"> </td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "> </p>5580000558036000036036000036090000090090000090090000090025000000.1250000<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 6 - <span style="text-decoration:underline">SUBSEQUENT EVENTS</span></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">Management has evaluated subsequent events
through August 13, 2021, the date which the financial statements were available to be issued. All subsequent events requiring recognition
as of June 30, 2021 have been incorporated into these financial statements and there are no subsequent events that require disclosure
in accordance with FASB ASC Topic 855, “Subsequent Events.”</p>A202 7 Gaoxin South Avenuefalse--12-31Q25180000001784058333-234358The shares are presented on a retroactive basis to reflect the nominal
share issuance.The shares are presented on a retroactive basis
to reflect the nominal share issuance.XML
11
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Fiscal period values are FY, Q1, Q2, and Q3. 1st, 2nd and 3rd quarter 10-Q or 10-QT statements have value Q1, Q2, and Q3 respectively, with 10-K, 10-KT or other fiscal year statements having FY.
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Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.
Amount of increase (decrease) in cash, cash equivalents, and cash and cash equivalents restricted to withdrawal or usage; including effect from exchange rate change. Cash includes, but is not limited to, currency on hand, demand deposits with banks or financial institutions, and other accounts with general characteristics of demand deposits. Cash equivalents include, but are not limited to, short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.
Change in recurring obligations of a business that arise from the acquisition of merchandise, materials, supplies and services used in the production and sale of goods and services.
The increase (decrease) during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services.
Amount of cash inflow (outflow) from financing activities, including discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.
Amount of cash inflow (outflow) from investing activities, including discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.
Amount of cash inflow (outflow) from operating activities, including discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.
Amount of cash inflow (outflow) from long-term debt by a related party. Related parties, include, but are not limited to, affiliates, owners or officers and their immediate families, and pension trusts.
NOTE 1 - ORGANIZATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Organization and Operations
PONY GROUP INC, (The “Company” or “PONY”) was
incorporated on Jan 7, 2019 in the state of Delaware.
On March 7, 2019, Pony Group Inc (the “Purchaser”), and
Wenxian Fan, the sole owner of PONY LIMOUSINE SERVICES LIMITED, entered into a Stock Purchase Agreement (the “Purchase Agreement”),
pursuant to which Wenxian Fan (the “Seller”) would sell to the Purchaser, and the Purchaser will purchase from the Seller,
10,000 shares of the PONY LIMOUSINE SERVICES LIMITED, which represented 100% of the shares. On March 07, 2019, this transaction was completed.
PONY LIMOUSINE SERVICES LIMITED (“PONYHK”) is a limited
liability company formed under the laws of Hong Kong on April 28, 2106, which was formed by FAN WENXIAN. Its registered office is located
at FLAT/RM 01 11/f, LUCKY COMM BLDG, 103 DES VOEUX RD WEST, SHEUNG WAN, HONG KONG. The business nature of the Company is to provide cross
boarder limousine services to customers. On February 2, 2019, Universe Travel Culture & Technology Ltd. (“Universe Travel”)
was incorporated as a wholly-owned PRC subsidiary of Pony HK
Details of the Company’s structure as of June 30, 2021 is as
follow:
Reverse Merger Accounting – Since Pony HK
and Pony US were entities under Ms. Fan’s common control prior to the “Purchase Agreement” was executed, and because
of certain other factors, including that the member of the Company’s executive management is from Pony HK, Pony HK is deemed to
be the acquiring company for accounting purposes and the Merger was accounted for as a reverse merger and a recapitalization in accordance
with generally accepted accounting principles in the United States (“GAAP”). These unaudited consolidated financial statements
reflect the historical results of Pony HK prior to the Merger and that of the combined Company following the Merger, and do not include
the historical financial results prior to the completion of the Merger. Common stock and the corresponding capital amounts of the Company
pre-Merger have been retroactively restated as capital stock shares.
Basis of Accounting and Presentation - The
accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America.
Cash and Cash Equivalents – For purpose
of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of 90 days or less
to be cash equivalents.
Accounts Receivable - The customers are required
to make payments when they book the services, otherwise, the services will not be arranged. Sometimes, the Company extends credit to its
group clients.
As of June 30, 2021 and December 31, 2020, accounts receivable was
$13,380 and $40,705, respectively. The company considers accounts receivable to be fully collectible and determined that an allowance
for doubtful accounts was not necessary.
PONY LIMOUSINE SERVICES LIMITED, a 100% subsidiary of the Company,
has agreements with its two major clients that the payments for the services rendered be settled every six months. The two major clients
account for 87.00% of the revenue for the six months ended June 30, 2021 and 57.00% for the same period 2020, respectively.
Revenue Recognition -
The Company recognizes revenue in accordance with ASC 606. The core principle of ASC606 is to recognize revenue when promised goods or
services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or
services. ASC 606 defines a five-step process to achieve this core principle, which includes: (1) identifying contracts with customers,
(2) identifying performance obligations within those contracts, (3) determining the transaction price, (4) allocating the transaction
price to the performance obligation in the contract, which may include an estimate of variable consideration, and (5) recognizing revenue
when or as each performance obligation is satisfied. Our sales arrangements generally ask customers to pay in advance before any services
can be arranged. The company recognizes revenue when each performance obligation is satisfied. Documents and terms and the completion
of any customer acceptance requirements, when applicable, are used to verify services rendered. The Company has no returns or sales discounts
and allowances because services rendered and accepted by customers are normally not returnable.
Cost of revenue – Cost
of revenue includes cost of services rendered during the period, net of discounts and sales tax.
Income Taxes – Income tax expense represents
current tax expense. The income tax payable represents the amounts expected to be paid to the taxation authority. Hong Kong profits tax
has been provided at the rate of 16.5% on the estimated assessable profit for the period.
Foreign Currency Translation - PONY LIMOUSINE
SERVICES LIMITED’s functional currency is the Hong Kong Dollar (HK$) and Universe Travel Culture & Technology Ltd.’s functional
currency is the Renminbi (RMB). The reporting currency is that of the US Dollar. Assets, liabilities and owners’ contribution are
translated at the exchange rates as of the balance sheet date. Income and expenditures are translated at the average exchange rate of
the year.
The exchange rates used to translate amounts in HK$ and RMB into USD
for the purposes of preparing the financial statements were as follows:
June 30, 2020
Balance sheet
HK$7.77 to US $1.00
RMB 6.46 to US $1.00
Statement of operation and other comprehensive income
HK$7.77 to US $1.00
RMB 6.46 to US$1.00
December 31, 2020
Balance sheet
HK$7.75 to US $1.00
RMB 6.53 to US $1.00
June 30, 2020
Statement of operation and other comprehensive income
The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.
The Company had operating losses of $58,876 and $17,135 during the
six months ended June 30, 2021 and 2020, respectively.
The Company has accumulated deficit of $241,193 and $182,320 as of
June 30, 2021 and December 31, 2020, respectively. The Company’s continuation as a going concern is dependent on its ability to
generate sufficient cash flows from operations to meet its obligations and/or obtain additional financing, as may be required.
The accompanying financial statements have been prepared assuming the
Company will continue as a going concern; however, the above condition raises substantial doubt about the Company’s ability to do
so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification
of assets or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.
Management’s Plan to Continue as a Going Concern
In order to continue as a going concern, the Company will need, among
other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital
from the sale of its equity securities, (2) sales of the Company’s products, (3) short-term and long-term borrowings from banks,
and (4) short-term borrowings from stockholders or other related party (ies) when needed. However, management cannot provide any assurance
that the Company will be successful in accomplishing any of its plans.
The ability of the Company to continue as a going concern is dependent
upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing
and attain profitable operations.
PONY GROUP INC, incorporated on Jan 7, 2019 in the state of Delaware,
is the sole owner of PONY LIMOUSINE SERVICES LIMITED (Pony HK), during the six months ended June 30, 2021, Pony HK paid $58,779 on behalf
of PONY GROUP INC for the US legal and audit cost incurred relevant to the OTC listing.
Amount of receivable from shareholders
due to the company declared a 6,000 to 1 stock split. After the stock split, the par value of the commons stocks was $0.001 per share.
The shareholders should pay the consideration of $8,998 to the company. For the company use a retroactive basis to present
the nominal shares, the considerations and receivable form shareholders also should be represented.
June 30, 2021
December 31, 2020
Receivable from shareholders
$
8,998
$
8,998
Total due from related parties
$
8,998
$
8,998
Ms. Wenxian Fan, the director, loaned working capital to Pony HK with
no interest and paid on behalf of Pony HK for the subcontracted services and employee salaries.
The Company has the following payables to Ms. Wenxian Fan:
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
The Company purchased majority of its subcontracted services from three
major suppliers during the six months ended June 30, 2021: Shenzhen Lingshang Cultural Technology Co., Ltd for 48.26%, CHANGYING BUSINESS
LIMITED for 34.28%, Global Express (Hong Kong) Limited for 11.20%.
The Company had two major customers for the six months ended June
30, 2021: HENG TAI WINE LIMITED for 79.43% of revenue and Shenzhen Shangjia Electronic Technology., Ltd for 17.01% of revenue.
The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.
On May 23, 2019, PONY GROUP INC sold 1,500 shares of common stock to
the following shareholders. On May 24, 2019, these transactions were completed, the consideration received were deposited into the company’s
bank account. On June 1, 2020, the company declared a 6,000 to 1 stock split. After the stock split, the par value of the commons stocks
was $0.001 per share. The shareholders and the number of shares held after the stock dividend are as following:
Name
Shares
Consideration
Pony Group Ltd.
5,580,000
5,580
Aller Bonvoyage Inc
360,000
360
Capital Club Holding Limited
360,000
360
KERUIDA Investment Limited
900,000
900
Synionm Investments Limited
900,000
900
Wisdom travel service investments Limited
900,000
900
In June 2020, the Company announced the closing
of its initial public offering of 2,500,000 ordinary shares at a public offering price of $0.1 per share, for total gross proceeds of
approximately $250,000 before deducting underwriting discounts, commissions and other related expenses.
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Management has evaluated subsequent events
through August 13, 2021, the date which the financial statements were available to be issued. All subsequent events requiring recognition
as of June 30, 2021 have been incorporated into these financial statements and there are no subsequent events that require disclosure
in accordance with FASB ASC Topic 855, “Subsequent Events.”
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
PONY GROUP INC, (The “Company” or “PONY”) was
incorporated on Jan 7, 2019 in the state of Delaware.
On March 7, 2019, Pony Group Inc (the “Purchaser”), and
Wenxian Fan, the sole owner of PONY LIMOUSINE SERVICES LIMITED, entered into a Stock Purchase Agreement (the “Purchase Agreement”),
pursuant to which Wenxian Fan (the “Seller”) would sell to the Purchaser, and the Purchaser will purchase from the Seller,
10,000 shares of the PONY LIMOUSINE SERVICES LIMITED, which represented 100% of the shares. On March 07, 2019, this transaction was completed.
PONY LIMOUSINE SERVICES LIMITED (“PONYHK”) is a limited
liability company formed under the laws of Hong Kong on April 28, 2106, which was formed by FAN WENXIAN. Its registered office is located
at FLAT/RM 01 11/f, LUCKY COMM BLDG, 103 DES VOEUX RD WEST, SHEUNG WAN, HONG KONG. The business nature of the Company is to provide cross
boarder limousine services to customers. On February 2, 2019, Universe Travel Culture & Technology Ltd. (“Universe Travel”)
was incorporated as a wholly-owned PRC subsidiary of Pony HK
Details of the Company’s structure as of June 30, 2021 is as
follow:
Reverse Merger Accounting – Since Pony HK
and Pony US were entities under Ms. Fan’s common control prior to the “Purchase Agreement” was executed, and because
of certain other factors, including that the member of the Company’s executive management is from Pony HK, Pony HK is deemed to
be the acquiring company for accounting purposes and the Merger was accounted for as a reverse merger and a recapitalization in accordance
with generally accepted accounting principles in the United States (“GAAP”). These unaudited consolidated financial statements
reflect the historical results of Pony HK prior to the Merger and that of the combined Company following the Merger, and do not include
the historical financial results prior to the completion of the Merger. Common stock and the corresponding capital amounts of the Company
pre-Merger have been retroactively restated as capital stock shares.
Basis of Accounting and Presentation - The
accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America.
Cash and Cash Equivalents – For purpose
of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of 90 days or less
to be cash equivalents.
Accounts Receivable - The customers are required
to make payments when they book the services, otherwise, the services will not be arranged. Sometimes, the Company extends credit to its
group clients.
As of June 30, 2021 and December 31, 2020, accounts receivable was
$13,380 and $40,705, respectively. The company considers accounts receivable to be fully collectible and determined that an allowance
for doubtful accounts was not necessary.
PONY LIMOUSINE SERVICES LIMITED, a 100% subsidiary of the Company,
has agreements with its two major clients that the payments for the services rendered be settled every six months. The two major clients
account for 87.00% of the revenue for the six months ended June 30, 2021 and 57.00% for the same period 2020, respectively.
Revenue Recognition -
The Company recognizes revenue in accordance with ASC 606. The core principle of ASC606 is to recognize revenue when promised goods or
services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or
services. ASC 606 defines a five-step process to achieve this core principle, which includes: (1) identifying contracts with customers,
(2) identifying performance obligations within those contracts, (3) determining the transaction price, (4) allocating the transaction
price to the performance obligation in the contract, which may include an estimate of variable consideration, and (5) recognizing revenue
when or as each performance obligation is satisfied. Our sales arrangements generally ask customers to pay in advance before any services
can be arranged. The company recognizes revenue when each performance obligation is satisfied. Documents and terms and the completion
of any customer acceptance requirements, when applicable, are used to verify services rendered. The Company has no returns or sales discounts
and allowances because services rendered and accepted by customers are normally not returnable.
Income Taxes – Income tax expense represents
current tax expense. The income tax payable represents the amounts expected to be paid to the taxation authority. Hong Kong profits tax
has been provided at the rate of 16.5% on the estimated assessable profit for the period.
Foreign Currency Translation - PONY LIMOUSINE
SERVICES LIMITED’s functional currency is the Hong Kong Dollar (HK$) and Universe Travel Culture & Technology Ltd.’s functional
currency is the Renminbi (RMB). The reporting currency is that of the US Dollar. Assets, liabilities and owners’ contribution are
translated at the exchange rates as of the balance sheet date. Income and expenditures are translated at the average exchange rate of
the year.
The exchange rates used to translate amounts in HK$ and RMB into USD
for the purposes of preparing the financial statements were as follows:
June 30, 2020
Balance sheet
HK$7.77 to US $1.00
RMB 6.46 to US $1.00
Statement of operation and other comprehensive income
HK$7.77 to US $1.00
RMB 6.46 to US$1.00
December 31, 2020
Balance sheet
HK$7.75 to US $1.00
RMB 6.53 to US $1.00
June 30, 2020
Statement of operation and other comprehensive income
Disclosure of accounting policy for basis of accounting, or basis of presentation, used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS).
Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.
Disclosure of accounting policy for (1) transactions denominated in a currency other than the reporting enterprise's functional currency, (2) translating foreign currency financial statements that are incorporated into the financial statements of the reporting enterprise by consolidation, combination, or the equity method of accounting, and (3) remeasurement of the financial statements of a foreign reporting enterprise in a hyperinflationary economy.
Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.
The entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles.
Tabular disclosure of the U.S. dollar denominated balances, balances reported for financial reporting purposes and the differences between the two balances by each relevant line item on the financial statements.
Tabular disclosure of related party transactions. Examples of related party transactions include, but are not limited to, transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners and (d) affiliates.
Tabular disclosure of changes in the separate accounts comprising stockholders' equity (in addition to retained earnings) and of the changes in the number of shares of equity securities during at least the most recent annual fiscal period and any subsequent interim period presented is required to make the financial statements sufficiently informative if both financial position and results of operations are presented.
Amount, after allowance for credit loss, of right to consideration from customer for product sold and service rendered in normal course of business, classified as current.
Percentage of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to changes in foreign income tax contingency.
Organizations and Summary of Significant Accounting Policies (Details) - Schedule of Translate Amounts in HK$ and RMB Into USD for the Purposes Preparing the Financial Statements
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
A segregation of retained earnings which is unavailable for dividend distribution. Includes also retained earnings appropriated for loss contingencies.
Amount of receivable from shareholders
due to the company declared a 6,000 to 1 stock split. After the stock split, the par value of the commons stocks was $0.001 per share.
The shareholders should pay the consideration of $8,998 to the company.
A fee charged for services from professionals such as doctors, lawyers and accountants. The term is often expanded to include other professions, for example, pharmacists charging to maintain a medicinal profile of a client or customer.
A description of the related party transaction, including transactions to which no amounts or nominal amounts were ascribed and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements. Examples of common related party transactions are, sales, purchases and transfers of realty and personal property, services received or furnished, loans and leases to and from top management and affiliates.
Carrying amount as of the balance sheet date of obligations due all related parties. For classified balance sheets, represents the current portion of such liabilities (due within one year or within the normal operating cycle if longer).
Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
Description of the stock split arrangement. Also provide the retroactive effect given by a stock split that occurs after the balance date but before the release of financial statements.