FLURIDA GROUP INC - FORM 10-Q

Attached files

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EXCEL - IDEA: XBRL DOCUMENT - FLURIDA GROUP INC	Financial_Report.xls
EX-31.1 - CERTIFICATION - FLURIDA GROUP INC	flug_ex311.htm
EX-32.1 - CERTIFICATION - FLURIDA GROUP INC	flug_ex321.htm
EX-31.2 - CERTIFICATION - FLURIDA GROUP INC	flug_ex312.htm
EX-32.2 - CERTIFICATION - FLURIDA GROUP INC	flug_ex322.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2013

o	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _______ to _______

Commission file number 333-151200

FLURIDA GROUP, INC.

((Exact name of registrant as specified in its charter)

Nevada		3469		26-0688130
(State or other jurisdiction of incorporation or organization)		(Primary Standard Industrial Classification Code Number)		IRS I.D.

22 West Washington St, Suit 1500 Chicago, IL		60602
(Address of principal executive offices)		(Zip Code)

Issuer’s telephone number: 630-778-6991

N/A

(Former name, former address and former three months, if changed since last report)

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 x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

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

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	Smaller Reporting Company	x

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

As of August 14, 2013 there were 39,290,827 shares issued and outstanding of the registrant’s common stock.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION

Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis or Plan of Operation.	26
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	37
Item 4.	Controls and Procedures.	37

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings.	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	38
Item 3.	Defaults Upon Senior Securities	38
Item 4.	Mine Safety Dislcosures.	38
Item 5.	Other Information.	38
Item 6.	Exhibits.	39

PART I — FINANCIAL INFORMATION

Item 1.

Financial Statements

FLURIDA GROUP, INC.

Financial Statements

(Unaudited)

As of June 30, 2013 and 2012

Table of Contents

Consolidated Balance Sheets			5

Consolidated Statement of Operation			6

Consolidated Shareholders Equity			7

Consolidated Statement of Cash Flows			8

Notes to Unaudited Consolidated Financial Statements			9

FLURIDA GROUP, INC.
CONSOLIDATED BALANCE SHEETS
	June 30			December 31
	2013			2012
ASSETS
Current assets:
Cash and cash equivalents	$	1,261,608		$	194,265
Accounts receivable, net		3,165,830			1,558,282
Inventory		2,773,541			2,278,467
Total Current Assets	$	7,200,979		$	4,031,014

Property, plant and equipment, net	$	87,634		$	88,276

Other assets:
Loan to supplier	$	-		$	101,185
Accrued interest receivable		1,407			-
Security deposit		6,264			6,264
Total Other Assets	$	7,671		$	107,449

TOTAL ASSETS	$	7,296,284		$	4,226,739
LIABILITIES & EQUITY
Current liabilities:
Account payable	$	4,399,133		$	2,168,172
Loan from Bank	$	700,000		$	-
Income taxes payable		45,710			-
Unearned revenue		179,518			224,976
Total current liabilities	$	5,324,361		$	2,393,148

Stockholders' Equity:
Common stock, $0.001 par value;
200,000,000 shares authorized;
39,290,827 shares issued and outstanding.	$	39,291		$	39,291

Paid-in capital		1,251,313			1,251,313

Retained earnings		687,459			543,164

Accumulated other comprehensive Income (loss)		(6,140	)		(177	)

Total stockholders' equity	$	1,971,923		$	1,833,591

TOTAL LIABILITIES & EQUITY	$	7,296,284		$	4,226,739

FLURIDA GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATION
	Six Months Ended						Three Months Ended
	June 30, 2013			June 30, 2012			June 30, 2013		June 30, 2012
	Unaudited			Unaudited			Unaudited		Unaudited
Revenues:	$	10,706,316		$	7,587,236		$	5,942,809	$	4,246,446
Cost of Goods Sold	$	9,808,090		$	6,862,647		$	5,412,886	$	3,876,964
Gross Profit	$	898,226		$	724,589		$	529,923	$	369,482
Operating expenses:
Research and development		11,777			14,971			6,847		7,482

Selling, general and administrative expenses		625,729			595,790			343,041		307,444

Depreciation and amortization expenses		12,603			10,023			6,421		5,112
Total Operating Expenses	$	650,109		$	620,784		$	356,309	$	320,038

Operating Income	$	248,117		$	103,805		$	173,614	$	49,444

Investment income, net	$	1,470		$	6,273		$	99	$	3,314
Interest expense, net		9,000			2,222			5,622		-
Income before taxes	$	240,587		$	107,856		$	168,091	$	52,758
Income tax expense		96,292			64,433			69,492		36,433
Net income	$	144,295		$	43,423		$	98,599	$	16,325

Net Income per common share-Basics	$	0.00		$	0.00		$	0.00	$	0.00
Net Income per common share-Diluted	$	0.00		$	0.00		$	0.00	$	0.00

Other comprehensive Income(Loss), net of tax:
Foreign currency translation adjustments		(5,963	)		(4,124	)		8,817		(2,434	)
Total other comprehensive Income(Loss)	$	(5,963	)	$	(4,124	)	$	8,817	$	(2,434	)
Comprehensive Income (Loss)	$	138,332		$	39,299		$	107,416	$	13,891

FLURIDA GROUP, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY
FOR THE PERIOD ENDED June 30, 2013

					Additional					Accumulated Other			Total
	Common Stock				Paid-in		Retained			Comprehensive			Stockholders'
	Shares		Amount		Capital		Earnings			Income (Loss)			Equity
Balance, December 31, 2006							$	(1,500	)				$	(1,500	)

Balance, December 31, 2007		27,291,760	$	27,292	$	63,406	$	(20,619	)	$	(126	)	$	69,953

Balance, December 31, 2008		38,990,827	$	38,991	$	1,221,613	$	(214,698	)	$	29,471		$	1,075,377

Balance, December 31, 2009		38,990,827	$	38,991	$	1,221,613	$	(23,633	)	$	48,979		$	1,285,950

Adjustment for Exchange
rate changes										$	(43,456	)	$	(43,456	)

Net Income for the year
ended December 31, 2010							$	211,205					$	211,205
Balance, December 31, 2010		38,990,827	$	38,991	$	1,221,613	$	187,572		$	5,523		$	1,453,699
Adjustment for Exchange
rate changes										$	5,542		$	5,542

Net Income for the year
ended December 31, 2011							$	200,501					$	200,501
Balance, December 31, 2011		38,990,827	$	38,991	$	1,221,613	$	388,073		$	11,065		$	1,659,742
Issuance of common
stocks to Williams @ 0.10
per share on November 1, 2012		300,000	$	300	$	29,700							$	30,000

Adjustment for Exchange
rate changes										$	(11,242	)	$	(11,242	)

Net Income for the year
ended December 31, 2012							$	155,091					$	155,091
Balance, December 31, 2012		39,290,827	$	39,291	$	1,251,313	$	543,164		$	(177	)	$	1,833,591
Adjustment for Exchange
rate changes										$	(5,963	)	$	(5,963	)

Net Income for the six months
period ended June 30, 2013							$	144,295					$	144,295
Balance, June 30, 2013		39,290,827	$	39,291	$	1,251,313	$	687,459		$	(6,140	)	$	1,971,923

FLURIDA GROUP, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
	Six Months Ended						Three Months Ended
	June 30, 2013			June 30, 2012			June 30, 2013			June 30, 2012
Operating Activities:	Unaudited			Unaudited			Unaudited			Unaudited
Net Income	$	144,295		$	43,423		$	98,599		$	16,325
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense		12,603			10,023			6,421			5,112
Inventory		(495,074	)		(647,828	)		(381,516	)		(478,285	)
Account receivable		(1,607,548	)		(720,340	)		(1,287,620	)		(425,003	)
Accrued interest receivable		(1,407	)		(5,615	)		(64	)		(2,808	)
Unearned revenue		(45,458	)		128,293			110,697			(9,788	)
Increase in income tax payable		45,710			-			45,710			-
Increase in account payable		2,230,961			2,905,122			817,845			1,958,679
Net cash provided by operating activities	$	284,082		$	1,713,078		$	(589,928	)	$	1,064,232
Investing Activities:
Purchase Property		(11,961	)		(15,302	)		(2,348	)		(7,783	)
Net cash provided by investing activities	$	(11,961	)	$	(15,302	)	$	(2,348	)	$	(7,783	)
Financing Activities:
Proceeds from issuance of common stock		-			-			-			-
Proceeds from loan from shareholders		-			-			-			-
Loans return from supplier		101,185			-			101,185			-
Loans from Bank		700,000			-			700,000			-
Net cash provided by financing activities	$	801,185		$	-		$	801,185		$	-
Effect of Exchange Rate on Cash	$	(5,963	)	$	(4,124	)	$	8,817		$	(2,434	)
Net increase (decrease) in cash and cash equivalents	$	1,067,343		$	1,693,652		$	217,726		$	1,054,015
Cash and cash equivalents at beginning of the period	$	194,265		$	741,231		$	1,043,882		$	1,380,868
Cash and cash equivalents at end of the period	$	1,261,608		$	2,434,883		$	1,261,608		$	2,434,883

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A – BUSINESS DESCRIPTION

Flurida Group, Inc. (the “Company”), incorporated under the laws of Nevada on December 19, 2006, with registered address at 502 East John Street, Carson City, NV 89706. Flurida Group, Inc. operates its business in USA as Flurida Group USA, Inc., the Company’s wholly owned branch located in the State of Illinois and has principle office at 22 West Washington ST, Suite 1500, Chicago, IL 60602.

Flurida Group leased a warehouse at 24412 S Main Street, Carson, CA 90745.

Flurida Group Inc closed its subsidiary Flurida Group European S.R.L (“Flurida European”) in July 2011.

The company closed its Flurida Qingdao China office in July, 2009.

The Company’s main business includes sourcing, distribution and marketing of appliance parts in Asia, Europe, North and South America. In additionally, the Company also sells stoves, thermostat and other electronic components.

These parts are manufactured in China most by Chuzhou Fuda Mechanical & Electronics Co., Ltd (“ChuZhou Fuda”), and some by Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co., Ltd. (“Zhong Nan Fu Rui”). ChuZhou Fuda was an appliance components and sub-assemblies manufacturer established on March 18, 2008 and located in Chuzhou City, Anhui Province, China. Zhong Nan Fu Rui was established in 2005 specializing in home appliance components and subassemblies manufacturing, and located in Qingdao City, Shandong Province, China. .

NOTE B – SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect certain amounts reported in the financial statements and disclosures. Accordingly, actual results could differ from those estimates.

Basis of accounting

The financial statements reflect the assets, revenues and expenditures of the Company on the accrued basis of accounting.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B – SIGNIFICANT ACCOUNTING POLICIES (Continue)

Cash and Cash Equivalents

The Company considers all highly-liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Foreign Currency Translation

The Company has determined the United States dollars to be its functional currency for Flurida Group USA and European Euro to be its functional currency in European business. Assets and liabilities were translated to U.S. dollars at the period-end exchange rate. Statement of operations amounts were translated to U.S. dollars using the first date of each month during the year. Gains and losses resulting from translating foreign currency financial statements are accumulated in other comprehensive income (loss), a separate component of shareholders’ equity.

Property, Plant, and Equipment Depreciation

Property, plant, and equipment are stated at cost. Depreciation is being provided principally by straight line methods over the estimated useful lives of the assets. Expenditures for maintenance and repairs, which do not improve or extend the expected useful lives of the assets, are expensed to operations while major repairs are capitalized.

The equipments were recorded as fixed asset to depreciate over 7 years and the electronic data processing equipments and furniture were recorded as fixed asset to depreciate over 5 years with straight line method.

For the period of January to March 31, 2013, the Company purchased $ 5,171 Furniture and equipments, and $ 4,443 Computer and data process equipments.

For the period of April to June 30, 2013, the Company purchased $ 2,348 Computer and data process equipments.

As of June 30, 2013, the company has furniture, Computer and data processing equipments, and equipments at a purchase cost of $ 137,548, and $ 49,916 of accumulated depreciation expense was recorded.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Security Deposit

The Company started having an office in California State from September 2010, which is located at 24412 S Main ST, STE 105, Carson CA 90745. Flurida Group USA Inc made $ 6,264 security deposit for leasing the property.

Account Receivable

As of June 30, 2013, the company had a total of $ 3,165,830 account receivable from it major customers. Detail showed as below.

	6/30/2013
Chuzhou FuDa	$	442,800
Domestic LLC	$	50
Electrolux- Australia	$	205,657
Electrolux-Anderson-US	$	736,343
Electrolux-Mexico	$	22,385
Electrolux Do Brasil	$	143,240
Electrolux-Major Appliance	$	478,259
Electrolux - Sweden	$	8,502
Electrolux Italy	$	153,019
Electrolux Hungary	$	514,023
Electrolux St.Cloud	$	165,240
Procon Inc	$	880
Qingdao Fubida	$	277,255
Stanco Metal Products Inc	$	18,179
TOTAL AR	$	3,165,830

Accrued Interest Receivable

In January 1, 2013, the company entered a new loan agreement of $101,185 with its main supplier Zhong Nan Fu Rui Mechanical electronics Co., Ltd at interest rate of 5.00%, term January 1, 2013 to December 31, 2013; and at June 30, 2013, Zhong Nan Fu Rui Mechanical Electronics Co., Ltd returned $ 101,185 to the Company. As of June 30, 2013, total of $ 1,407 accrued interest receivable with interest rate at 5.00% was incurred.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B – SIGNIFICANT ACCOUNTING POLICIES (Continued)

Account Payable

The Company incurred accounts payable including professional fees, purchases, payroll and payroll tax liability, and other service fee payables.

As of June 30, 2013, the company had a total of $ 4,399,133 account payable, which was included $ 4,153,578 for Chu Zhou Fu Da, and $ 134,313 for US suppliers, $ 80,260 for salary and payroll tax payable, and $ 30,982 for all other account payable.

Basics and Diluted Net Loss Per Common Share

Basic earnings per share is computed by dividing income available to common shareholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. Diluted earnings per share assume that any dilutive convertible securities outstanding were converted, with related preferred stock dividend requirements and outstanding common shares adjusted accordingly. It also assumes that outstanding common shares were increased by shares issuable upon exercise of those stock options for which market price exceeds the exercise price, less shares which could have been purchased by us with the related proceeds. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive.

The Company only issued one type of shares, i.e., common shares only. There are no other types securities were issued. Accordingly, the diluted and basics net loss per common share are the same.

Concentration of credit risk

The Company maintains its cash in bank accounts which, at times, may exceed the federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash.

Income Tax Payable

For the period of January 1 to June 30, 2013 and 2012, the Company incurred income tax expense of $ 96,292 and $ 64,433 respectively. As of June 30, 2013, the income taxes payable of the Company was $ 45,710.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B – SIGNIFICANT ACCOUNTING POLICIES (Continued)

Inventory

The inventory was valued at cost of purchase from suppliers.

On June, 2008, Flurida Group, Inc signed consigned inventory agreements with Electrolux Home Products De Mexico, S.A. DEC.V., and Electrolux Home Products at Anderson, South Carolina (Electrolux), under the term of the agreements, the supplier, Flurida Group, Inc, agreed to produce, to maintain the transit the customized products per Electrolux’s specification. Electrolux maintain a storage location within Electrolux’s Juarez site for consigned inventory. And Flurida Group, Inc is facilitated to use of Electrolux’s storage location at such site to the sale of products to Electrolux; Electrolux will provide labor resources for receipt, stock up, and pulls of consigned products. Flurida Group, Inc., retains title and ownership of products while in transit to Electrolux’s site and while stored in the consigned inventory location. Title and ownership will pass to Electrolux when they withdraw products from the consigned inventory location. Upon withdrawal, Electrolux will pay for it under the payment term stated in the purchasing order correspond with the withdraw products. Products residing in the consigned inventory for 90 days with no activity due to non communicated demand change will no longer qualify for consignment, and will be considered as withdrawn product after 90 days. Accordingly, title passage and invoicing shall occur on such product per the term.

On July, 2012, Flurida Group, Inc signed deposit inventory agreements with Electrolux Italia S.p.A., which was effective in January 2013. under the term of the agreements, the supplier, Flurida Group, Inc, agreed to produce, to maintain the transit the customized products per Electrolux’s specification. Electrolux maintain a storage location within Electrolux’s Italia site for consigned inventory. And Flurida Group, Inc is facilitated to use of Electrolux’s storage site located at Treviso, Italy to deposit the products to selling Electrolux; Electrolux will provide labor resources for receipt, stock up, and pulls of consigned products. Flurida Group, Inc., retains title and ownership of products while in transit to Electrolux’s site and while stored in the consigned inventory location. Title and ownership will pass to Electrolux when they withdraw products from the consigned inventory location. Upon withdrawal, Electrolux will pay for it under the 60 days payment term stated in the Frame Agreement. Products residing in the consigned inventory for 30 days with no activity due to non communicated demand change will no longer qualify for consignment, and will be considered as withdrawn product after 30 days. Accordingly, title passage and invoicing shall occur on such product per the term.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B – SIGNIFICANT ACCOUNTING POLICIES (Continued)

Inventory (Continue)

As of June 30, 2013, there were 8,304 icemakers and 18,144 pieces motor in Electrolux Juarez warehouse as of consignment inventory. Also, there were 251,136 pieces motors, and 147,000 icemakers in Electrolux Anderson warehouse as of consignment inventory. And, there were 24,224 pieces Dac Boxes, and 17,176 Deflector in Electrolux Italy warehouse as of consignment inventory.

The company also had 25,200Icemakers and 90,720 motors been shipped out at FOB shipping point Nanjing, China to Electrolux Juarez warehouse. The company also had 315,360 pieces Motor and 46,704 icemakers been shipped out at FOB shipping point Nanjing, China to Electrolux Anderson warehouse. Those purchases haven’t considered as a sale or a consignment inventory at the period ended June 30, 2013. However, it’s the in transit inventories of Flurida Group, Inc.

As a result, as of June 30, 2013, the company had total inventory at a value $ 2,773,541.

Revenues Recognition

Revenues include sales of appliance parts in Asia, Europe, and North America.

Revenues are recognized from product sales upon shipment, which is the point in time when risk of loss is transferred to the customer, net of estimated returns and allowances.

For the fiscal quarter ended June 30, 2013, the Company had total net revenue of $ 5,942,809.

For the period April 1 to June 30, 2013, the Company sold icemakers and motors to, Electrolux USA, located at Charlotte NC for sales of $ 3,695,927. The icemakers and motors were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd; all the icemakers and motors were shipped out at FOB shipping point Nanjing, China.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B – SIGNIFICANT ACCOUNTING POLICIES (Continued)

Revenues Recognition (Continued)

The company also sold motors, to Stanco Metal Products for $ 27,268; the motors were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd; all the motors were shipped out at FOB shipping point Nanjing, China.

For the fiscal quarter ended June 30, 2013, the Company sold components and appliance parts to Electrolux –Australia for $ 159,010. The components were manufactured and supplied by Chu Zhou Fu Da Mechanical and Electronics; all the icemakers and components were shipped out at FOB shipping point Nanjing, China.

The Company sold DAC Boxes, Deflector, and other related parts to Electrolux –Italy for total $ 46,173. The DAC Boxes, Magnets, Motors and other related parts were manufactured and supplied by Zhong Nan Fu Rui and Chu Zhou Fuda; all the DAC Boxes magnets, and motors were shipped out at FOB shipping point, Qingdao and Nanjing, China.

The Company also sold DAC Boxes, Magnets, Motors, and other related parts to Electrolux – Hungry for total $ 514,023. The DAC Boxes, magnets and Motors were manufactured and supplied by Zhong Nan Fu Rui and ChuZhou Fuda; all the DAC Boxes magnet, and motors were shipped out at FOB shipping point Qingdao and Nanjing, China.

The Company also sold DAC Boxes and related parts to Electrolux –Sweden for $ 8,502. The DAC Box and parts were manufactured and supplied by Chu Zhou Fuda; all the DAC Boxes were shipped out at FOB shipping point Nanjing, China.

The company sold Motors, icemakers, and some related refrigerator appliance parts to North Carolina Electrolux Major Appliances, Inc for $ 720,189. The parts, icemakers, and motors were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd, and were shipped out at FOB shipping point Nanjing, China.

The Company also sold Motors to Electrolux –ST. Cloud for $ 74,066. The motors were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd, and were shipped out at FOB shipping point Nanjing, China.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B – SIGNIFICANT ACCOUNTING POLICIES (Continued)

Revenues Recognition (Continued)

The Company sold Motors and other parts to Electrolux – Do Brasil for $142,442. The motors were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd, and were shipped out at FOB shipping point Nanjing, China.

The company sold icemakers to an US company, Domestic LLC for $ 29,282. And the icemakers were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd; all the icemakers were shipped out at FOB shipping point Nanjing, China.

The company sold stoves to The Paradigm Project for $ 77,813. The stoves were manufactured and supplied by Zhong Nan Fu Rui, and were shipped out at FOB shipping point at Qingdao, China.

The company sold parts to General Electric Company for $ 5,000. The parts were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd, and were shipped out at FOB shipping point Nanjing, China.

In the period of April 1, 2013 to June 30, 2013, the Company sold parts or provided services to America Corporation for a total of $ 2,260.

For the period of April to June 30, 2013, the Company sold thermostats and other related key parts for icemakers and motors, to ChuZhouFuDa, and Qingdao Fubida Electronic. The parts were used for the icemakers and motors. Flurida Group purchased the parts from Wako Electronics, Inc., an US Company located at Louisville, KY 40299. Flurida Group also sold Rocker Switch, the key parts for icemakers, to ChuZhouFuDa. The parts, Rocker Switch, were used for the icemakers .The Company purchased the parts, Rocker Switch, from CW Industries, an US Company located at Southampton, PA; and also Flurida Group purchased some other related key parts from corporate America, and then sold to Qingdao Fubida Electronic, and ChuZhouFuDa. Flurida Group, Inc. adds averaged 5% - 10% margin based on the cost of purchase, then sold to them, so, $ 266,698, and $ 174,332 were sold and invoiced to ChuZhouFuDa, and Qingdao Fubida Electronic respectively in the fiscal quarter ended June 30, 2013.

In summary, for the period of April 1 to June 30, 2013, the Company incurred the total gross sales of $ 5,942,986. And the Company had sales discount and return of $ 177, so, a total of $ 5,942,809 net sales were recorded. The cost of goods sold is discussed in details in Note C, Related Party Transactions.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B – SIGNIFICANT ACCOUNTING POLICIES (Continued)

Comprehensive Income

The company’s comprehensive income is comprised of net income, unrealized gains and losses on marketable securities classified foreign currency translation adjustments, and unrealized gains and losses on derivative financial instruments related to foreign currency hedging.

Operating Expense

Operating Expenses includes research and development expense, all selling, general and administrative expenses, and depreciation expenses for Flurida Group Inc. For the fiscal quarter ended June 30, 2013 and 2012, the Company had total operating expenses of $ 356,309 and $ 320,038 respectively, which include the research and development expense of $ 6,847 and $ 7,482, and depreciation expenses of $ 6,421 and $ 5,112, and selling, general and administrative expense of $ 343,041 and $ 307,444. Detail was showed on Exhibit A.

Professional Fee

Professional fees are consist of accounting and auditing fee, legal fee, commission and consulting expenses, SEC filling fee, and other professional expenses. The total professional fees were $ 65,190 and $ 57,982 for the fiscal quarter ended June 30, 2013 and 2012 respectively.

	Three Months Ended
	June 30, 2013		June 30, 2012
Professional Fees
Accounting & Auditing service		35,500		36,250
Auditing Factory		4,535		3,140
Commission & Consultant fee		21,000		17,607
Legal fee		3,750		640
Edgar SEC Filing Fee		-		-
Transfer Agent Service		405		345
Total Professional Fees	$	65,190	$	57,982

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B – SIGNIFICANT ACCOUNTING POLICIES (Continued)

Payroll Expense

Started from February 2013, Flurida Group stayed the salaries amount of officers Jianfeng Ding, Yaru Huang, and Ying Zhong for $350,000, $84,000, $ 84,000. The Social Security tax and Medicare tax were paid by both employer and employees in USA; employees also withheld portion of Federal and State tax calculate by each individual’s status. All of the tax was submitted to Internal Revenue Service and local government at a semiweekly basis.

The total payroll expenses for the fiscal quarter ended June 30, 2013 and 2012 were listed as follows:

	Three Months Ended
	June 30, 2013		June 30, 2012
Payroll Expense - ER
Federal Unemployment Tax		-		-
State Unemployment Tax		71		-
US Medicare Tax - ER		2,373		2,501
US Social Security Tax -ER		7,969		6,671
Payroll Expense - ER - Other		-		-
Total Payroll Expense - ER		10,412		9,172
Payroll Expenses - EE
Federal Tax Withholding		33,480		31,449
State Tax Withholding		11,356		10,596
US Medicare Tax -EE		2,373		2,501
US Net Salaries payment - EE		136,830		122,790
US Social Security Tax - EE		7,969		4,519
Total Payroll Expenses - EE		192,007		171,856

Total Payroll Expenses	$	202,419	$	181,028

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B – SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recent Accounting Pronouncements

Business Combinations —The new guidance on business combinations retains the underlying concepts of the previously issued standard in that the acquirer of a business is required to account for the business combination at fair value. As with previous guidance, the assets and liabilities of the acquired business are recorded at their fair values at the date of acquisition. The excess of the purchase price over the estimated fair values are recorded as goodwill. The new pronouncement results in some changes to the method of applying the acquisition method of accounting for business combinations in a number of significant aspects. Under the new guidance, all acquisition costs are expensed as incurred and in-process research and development costs are recorded at fair value as an indefinite-lived intangible asset. Prior to the adoption, in-process research and development costs were immediately expensed and acquisition costs were capitalized. Further, the new guidance generally requires restructuring charges associated with a business combination to be expensed subsequent to the acquisition date.

Fair Value Measurements and Disclosures — The pronouncements define fair value, establish guidelines for measuring fair value, and expand disclosures regarding fair value measurements.

Derivative Instruments and Hedging Activities — The pronouncement requires additional disclosures about the objectives of derivative instruments and hedging activities, the method of accounting for such instruments, and a tabular disclosure of the effects of such instruments and related hedged items on Financial Statements. The pronouncement does not change the accounting treatment for derivative instruments.

Variable Interest Entities and Transfers of Financial Assets and Extinguishments of Liabilities — The pronouncement on transfers of financial assets and extinguishments of liabilities removes the concept of a qualifying special-purpose entity and removes the exception from applying variable interest entity accounting to qualifying special-purpose entities. The new guidance on variable interest entities requires an entity to perform an ongoing analysis to determine whether the entity’s variable interest or interests give it a controlling financial interest in a variable interest entity. The pronouncements are effective for fiscal years beginning after November 15, 2009.

Management does not anticipate that the adoption of these standards will have a material impact on the financial statements.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B – SIGNIFICANT ACCOUNTING POLICIES (Continued)

Income Tax

Income taxes are provided for tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes. Deferred taxes are recognized for differences between the bases of assets and liabilities for financial statement and income tax purposes. The differences in asset and liability bases relate primarily to organization and start-up costs (use of different methods and periods to calculate deduction). Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes. The deferred tax assets and/or liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. The components of the deferred tax asset and liability are classified as current and concurrent based on their characteristics. Valuation allowances are provided for deferred tax assets based on management’s projection of the sufficiency of future taxable income to realize the assets.

NOTE C – RELATED PARTY TRANSACTIONS

Common Shares Issued to Executive and Non-Executive Officers and Directors

As of June 30, 2013, total 29,162,760 shares were issued to officers and directors. Please see the table below for details:

Name	Total Shares	Total Amount	Percentage
Fenglan Li	165,000	15,750	0.42%
Ying Zhong	2,000,000	200,000	5.09%
Jianfeng Ding & Yaru Huang
Jianfeng Ding & Yaru Huang	26,997,760	323,998	68.72%
Total	29,162,760	$539,748	74.23%

· Based on total outstanding issued shares as of June 30, 2013: 39,290,827

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE C – RELATED PARTY TRANSACTIONS (Continued)

Cost of Goods Sold

The Company’s purchase is primarily from supplier, Chuzhou Fuda Mechanical & Electronics Co., Ltd, owned 100% by the founder of the Company, Jianfeng Ding. Due to Jianfeng Ding, and Yaru Huang, husband and wife, combined hold 68.72% issued common shares for Flurida Group, Inc., the two entities, Flurida Group, Inc., and Chuzhou Fuda Mechanical & Electronics Co., Ltd are under common control according to EITF 02-5.

The products the Company will sell are manufactured in China by Chuzhou Fuda Mechanical & Electronics Co., Ltd (“Chuzhou Fuda”). Chuzhou Fuda, owned 100% indirectly by Jianfeng Ding and Yaru Huang, husband and wife, is an appliance components and sub-assemblies manufacturer established on March 18, 2008. Chuzhou Fuda is located in Chuzhou City, Anhui Province, China. The plant space is around 100,000sq. ft. with 18 molding machine up to 800 metric ton and 6 assemblies lines for appliance components and assemblies.

The management of Flurida Group, Inc. believes that the purchase price for the parts from Chuzhou Fuda will be market price. Flurida Group, Inc. and Chuzhou Fuda are two totally separated entities, i.e., Flurida Group, Inc. is a USA corporation and will fully comply with USA regulations and USA general accepted accounting principles; Chuzhou Fuda is a Chinese company and it will comply with Chinese legal systems.

Flurida Group, Inc. and Chuzhou Fuda will operate independently. Chuzhou Fuda, as a Chinese local manufacturer, will record their manufacturing costs and inventories based on the Chinese accounting regulations rulings. But, when Flurida Group, Inc. purchases the parts from Chuzhou Fuda, Flurida Group will record the actual costs paid to Chuzhou Fuda as the costs for inventory of Flurida Group, Inc. There is no any relationship for Chuzhou Fuda’s manufacturing historic costs with Flurida Group’s inventory value. Specifically, Flurida’s inventory value is equal to the purchase price or actual cost of the parts purchased from Chuzhou Fuda, and the purchase price of the parts will be fair market price. Flurida Group, Inc. will adopt the first-in and first-out inventory system according to generally accepted accounting principles in USA.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE C – RELATED PARTY TRANSACTIONS (Continued)

Cost of Goods Sold (Continued)

Flurida Group also purchased the products from suppliers, Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co., Ltd. (“Zhong Nan Fu Rui”). It was owned 100% by the founder of the Company, Jianfeng Ding., and established in 2005 specializing in home appliance components and subassemblies manufacturing, and located in Qingdao City, Shandong Province, China.

At the period ended March 31, 2013, the Company had ending inventory $ 2,392,025 that was majority purchased from Zhong Nan Fu Rui and ChuZhou FuDa.

From the period April 1 to June 30, 2013, Flurida Group, Inc. purchased Stoves and parts from Zhong Nan Fu Rui at total cost of $ 67,409 for FOB shipping point at Qingdao, China.

The Company purchased Icemakers, motors, and parts from ChuZhou FuDa at total cost of $ 5,329,342 for FOB shipping point at Nanjing, China.

To manufacture the related refrigerator appliance parts, Zhong Nan Fu Rui and Chu Zhou Fu Da., needs key parts made in USA, which were purchased through Flurida Group, Inc. in USA. The costs of purchasing the parts were $ 396,764 in the fiscal quarter ended June 30, 2013.

For the fiscal quarter ended June 30, 2013, the Company had total purchase of $ 5,793,515.

At the periods ended June 30, 2013, the company had total ending inventory at a value $ 2,773,541.

For the period of April 1 to June 30, 2013, the company had freight cost and other related cost of $ 1,613.

Therefore, in the fiscal quarter ended June 30, 2013, the Company incurred a total cost of goods sold of $ 5,412,886.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE C – RELATED PARTY TRANSACTIONS (Continued)

Loan to Supplier

At January 1st, 2013, Flurida Group, Inc entered into a new loan agreement of $101,185 with the company’s primary supplier, Zhong Nan Fu Rui. The outstanding balance bears interest at 5.00%, pursuant to a written agreement, for the term from January 1st 2013 to December 31st 2013. At June 30, 2013, the supplier returned $ 101,185 in full to the Company.

NOTE D – SHAREHOLDERS’ EQUITY

During the year ended December 31, 2008, Flurida Group, Inc has issued total 11,699,067 new shares on April 15, 2008, including 11,649,067 shares issued to loan holders who converted all the loans to common shares. At the year ended December 31, 2008, Flurida Group, Inc. incurred net loss of $ (194,079).

Therefore, the total stockholders’ equity balance at December 31, 2008 was $ 1,075,377.

On April 15, 2008, 50,000 shares issued to Williams Law Group at $ 0.10, for the legal service value of $5,000. On April 1, 2008, seven non-affiliated loan holders asked for repayment of their loans in the aggregate amount of $ 25,066 plus the total interest cost of $624.72, which was paid on the same date, April 1, 2008; meantime, seven additional lenders loaned an aggregate amount of $ 9,926.

On April 15, 2008, total loan amount of $1,164,906 was converted to common shares at price of $0.10 per share, for the total shares of 11,649,067 shares, which were issued to the loans holders.

There were no new shares issued during the period ending December 31, 2009, 2010, and 2011.

On November 1, 2012, 300,000 shares were issued to Williams Law Group at $ 0.10, for the legal service value of $30,000.

Therefore, as of June 30, 2013 total shares issued and outstanding are 39,290,827.

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE E – GOING CONCERN

The Company’s customer concentration may raise doubt about its ability to continue as a going concern. The financial statements do not include adjustments that might result from the outcome of this uncertainty and if the Company is unable to generate significant revenue or secure financing, then the Company may be required to cease or curtail its operations. In the first quarter ended June 30, 2013, the Company generated sales revenue of $ 5,942,809. The Company’s significant customers are Electrolux and its subsidiaries located in various countries. Electrolux and its subsidiaries are operated independently in various countries, the management assess that it is unlikely if Electrolux and its subsidiary discontinue the purchase in near future due to the Company secured a purchase order in next three years with Electrolux and its subsidiaries. Because of the concentration of the customer and supplier base and Company’s heavily reliance on the Electrolux and its subsidiaries, Company may face the difficulty as going concern. However, the going concern may be mitigated due to the close relationship between the Company and it’s suppliers, Zhong Nan Fu Rui and Chuzhou Fuda Mechanical & Electronics Co., Ltd , which are 100% owned by the founder, Jianfeng Ding. Zhong Nan Fu Rui and Chuzhou Fuda Mechanical & Electronics Co., Ltd.’s current customers can be served by the Company for the same quality of products and services. Besides, as of June 30, 2013, the cash and cash equivalent balance was $ 1,261,608, the management believes that the revenues will be generated and its cash flows will be maintained to cover its operational costs and the risk of going concern in long term is significantly low.

Exhibit A
	Six Months Ended		Six Months Ended		Three Months Ended		Three Months Ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Operating expenses
Administration Expense		694		784		565		234
Bank Service Charges		24,955		14,590		13,399		13,824
Business Registration and Permits		343		-		-		-
Certification		11,050		28,105		6,779		-
Computer and Internet Expenses		329		869		146		276
Depreciation Expenses		12,603		10,023		6,421		5,112
Fuel charge		315		1,363		71		1,058
Gift and Promotion		-		3,657		-		2,080
Meals and Entertainment		17,127		8,603		6,859		5,619
Office Supplies		4,526		4,996		3,422		3,235
Parking Fee		102		537		48		524
Payroll Expense - ER		24,804		25,540		10,412		9,172
Payroll Expenses - EE		354,574		357,160		192,007		171,856
Penalty and Fines Expenses		826		-		527		-
Postage and Shipping		1,950		4,246		1,173		1,986
Professional Fees		86,190		63,786		65,190		57,982
Rent Expense		31,012		25,992		13,648		13,060
Repair and Maintenance		21		750		-		-
Research and Development Expense		11,777		14,971		6,847		7,482
Service Cost		-		277		-		57
Telephone Expense		6,461		5,075		3,198		2,994
Travel Expense
Airfare		33,167		26,511		16,494		11,317
Car Rental		3,753		3,004		1,965		2,475
Hotel Expense		19,949		18,542		6,113		8,859
Local Transportation		2,230		231		129		231
Total Travel Expense		59,099		48,288		24,701		22,882
Utilities		1,351		1,172		896		605
Total Operating Expense		650,109		620,784		356,309		320,038

Item 2.

Management’s Discussion and Analysis or Plan of Operation.

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes, and other financial information included in this Form 10-Q.

Our Management’s Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national, and local general economic and market conditions; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; change in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; the risk of foreign currency exchange rate; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission.

Although the forward-looking statements in this Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

Overview

Our business is the sale of appliance parts in Asia, Europe, Australia, North and South America. The main products that we sell to these markets are icemakers, motors, ice water dispensing system, and appliance assemblies and stoves.

These parts are manufactured in China by Chuzhou Fuda Mechanical & Electronics Co., Ltd (“ChuZhou Fuda”) and Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co., Ltd. (“Zhong Nan Fu Rui”)

Chuzhou Fuda Mechanical & Electronics Co., Ltd. owned 100% indirectly by Jianfeng Ding and Yaru Huang, husband and wife is an appliance components and sub-assemblies manufacturer established on March 18, 2008. Chuzhou Fuda is located in Chuzhou City, Anhui Province, China. The plant space is around 100,000 sq. ft. with 18 molding machine up to 800 metric ton and 6 assemblies lines for appliance components and assemblies.

Zhong Nan Fu Rui was established in 2005 specializing in home appliance components and subassemblies manufacturing, and located in Qingdao City, Shandong Province, China. On September 18, 2007, amended June 25, 2008 and further amended on August 4, 2008, Flurida Group, Inc. signed a long-term distribution agreement with Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co., Ltd. Zhong Nan Fu Rui is a Chinese manufacturing company owned 100% by Mr. Jianfeng Ding, our president. Although this Agreement expired in 2012, we continue to operate under the same terms as the written agreement.

We sell the following main types of appliance parts:

·	Automatic Refrigerator Build-in Icemaker: The automatic refrigerator build-in icemaker is designed for household refrigeration products, such as refrigerator, under-counter refrigerator, freezer to make the ice cubes automatically

Refrigerator Through-Door Ice Water System: Refrigeration Through-Door Ice Water System is the system that stores the ice cubes harvested from the icemaker, delivered and dispensed the ice, crushed ice or water to the refrigerator door through the electronic control system at the front of the refrigerator door. The through-door ice water system normally includes the following assemblies: ice bucket assembly, motor rail assembly, module assembly, facade assembly, housing assembly. The ice bucket assembly and the motor rail assembly can be located in the freezer, in the refrigerator door and or sealed chamber in the refrigerator. The module assembly, facade assembly and housing assembly vary according to the specific design from each client.

Shade Pole Motor and Motor Assembly for Refrigerator or Freezers: The shade pole motor and motor assembly is a key part for refrigerators or freezers. Flurida Group Inc’s motor part is designed and specified for the refrigerators or freezers made by Electrolux, an US company with headquarter in Charlotte, NC. Flurida also supplies the motors and motor assemblies to Electrolux Europe facilities in Italy and Hungary.

High-efficiency Stove: a wood-fuel metal stove which has higher combustion efficiency, lower fuel consumption, lower pollution than the average rocket stoves on the market. Those stoves sold to users in under-developed countries to save them time in cooking and money in fuel while reducing CO2 emission and deforestation.

We are an “emerging growth company” (“EGC”) that is exempt from certain financial disclosure and governance requirements for up to five years as defined in the Jumpstart Our Business Startups Act (“the JOBS Act”), that eases restrictions on the sale of securities; and increases the number of shareholders a company must have before becoming subject to the U.S. Securities and Exchange Commission’s (SEC’s) reporting and disclosure rules (See “Emerging Growth Companies” section above). We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the Jobs Act, that allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

Results of Operations

For the three months ended June 30, 2013 vs. June 30, 2012.

Revenue

For the three months ended June 30, 2012, the Company had net total revenue of $4,246,446 to the Company’s Europe, North and South America customers.

For the three months ended June 30, 2013, the Company had net total revenue of $5,942,809, which was increased nearly 40% than the fiscal quarter ended June 30, 2012 total revenue of $4,246,446. This increase was because all main customer sales went up, plus new product stove sales started in 2012 third quarter and continued in the quarter ended June 30, 2013.

The company sold stoves to The Paradigm Project for $ 77,813. The stoves were manufactured and supplied by Zhong Nan Fu Rui, and were shipped out at FOB shipping point at Qingdao, China.

In the period of April 1, 2013 to June 30, 2013, the Company sold parts or provided services to America Corporation for a total of $ 2,260.

In both fiscal quarter ended June 30, 2013 and 2012 sales, more than 80% of total revenues were generated through Electrolux controlled subsidiaries in various countries. Electrolux Group operated its each subsidiary independently in each country, and all the sales orders and sales contracts were negotiated and signed independently. Accordingly, we believe that lack of one or a few subsidiaries of Electrolux sales order may have effect on our overall sales revenue, but the effects were slightly reduced in 2013 vs 2012. We signed long-term distribution agreement with various Electrolux subsidiaries, the risk of loss the contracts with Electrolux is significantly low.

Cost of Revenue

Our Costs of Goods Sold, as we expected will increased slightly due to increasing Chinese Yuan’s currency exchange rate, labor costs, and raw materials. We anticipate this trend to continue and may adjust our unit price upward to reduce the impact of rising costs.

For the three months ended June 30, 2013, the Company incurred a total cost of goods sold of $5,412,886, for the purchases of parts, motor, and icemakers for the total sales of $5,942,809.

At the period ended March 31, 2013, the Company had ending inventory $ 2,392,025 that was majority purchased from Zhong Nan Fu Rui and ChuZhou FuDa.

From the period April 1 to June 30, 2013, Flurida Group, Inc. purchased Stoves and parts from Zhong Nan Fu Rui at total cost of $ 67,409 for FOB shipping point at Qingdao, China.

The Company purchased Icemakers, motors, and parts from ChuZhou FuDa at total cost of $ 5,329,342 for FOB shipping point at Nanjing, China.

For the fiscal quarter ended June 30, 2013, the Company had total purchase of $ 5,793,515.

At the periods ended June 30, 2013, the company had total ending inventory at a value $ 2,773,541.

For the period of April 1 to June 30, 2013, the company had freight cost and other related cost of $ 1,613.

Therefore, in the fiscal quarter ended June 30, 2013, the Company incurred a total cost of goods sold of $ 5,412,886 which was increased nearly 40 % comparing to the three months ended June 30, 2012 cost of goods sold of $3,876,964. The increase of cost of goods sold was due to the sales increase, increasing Chinese Yuan’s currency exchange rate, labor costs, and raw materials.

The cost of goods sold in the Statements of Operations includes costs of products purchased from suppliers, shipping costs or freight in costs for the products shipping FOB port China, warehouse costs, and other costs if any directly related to the products inspection, duty and custom taxes of products, internal transfer costs if any. The selling, general and administrative expense includes operation expense such as travel, professional, office rent, telephone, certification fees, wages and salaries for management and administrative employees, and other expense related to operation. There was no allocation of portion of any selling, general and administrative expense to the cost of goods sold.

Our gross margin may not be comparable to those of other entities, since some other entities may include all or allocate portion of the costs related to their distribution network into cost of goods sold.

Expense

Our operation expenses consist of selling, general and administrative expenses, and research & development expenses, and depreciation expenses:

	Three Months Ended		Three Months Ended
	June 30, 2013		June 30, 2012
Operating expenses
Administration Expense		565		234
Bank Service Charges		13,399		13,824
Business Registration and Permits		-		-
Certification		6,779		-
Computer and Internet Expenses		146		276
Depreciation Expenses		6,421		5,112
Fuel charge		71		1,058
Gift and Promotion		-		2,080
Meals and Entertainment		6,859		5,619
Office Supplies		3,422		3,235
Parking Fee		48		524
Payroll Expense - ER		10,412		9,172
Payroll Expenses - EE		192,007		171,856
Penalty and Fines Expenses		527		-
Postage and Shipping		1,173		1,986
Professional Fees		65,190		57,982
Rent Expense		13,648		13,060
Repair and Maintenance		-		-
Research and Development Expense		6,847		7,482
Service Cost		-		57
Telephone Expense		3,198		2,994
Travel Expense
Airfare		16,494		11,317
Car Rental		1,965		2,475
Hotel Expense		6,113		8,859
Local Transportation		129		231
Total Travel Expense		24,701		22,882
Utilities		896		605
Total Operating Expense		356,309		320,038

Started from February 2013, Flurida Group had salaries for officers Jianfeng Ding, Yaru Huang, and Ying Zhong for $350,000, $84,000, $84,000. And Flurida Group USA hired employees to taking care of the office, research and development, and marketing activities, therefore, the Company incurred a total payroll expense of $202,419 for the three months ended June 30, 2013. For maintaining and operating the business, the Company expensed a total of $21,000 commission and consulting fee. In order to increasing the sales in Europe and North America, the Company expensed $6,779certification fees on the products we sold or exported in the period of April 1 to June 30, 2013. Due to the raise of sale volume and customers, the Company had travel expenses of $24,701, and had equipment and research development expenses of $6,847.

We expect selling, general, and administrative expenses to increase in future periods as we initiate a number of marketing and promotional activities.

Income Taxes

We are subject to income taxes in the U.S. and we incurred income tax expense of $69,492 and $36,433 for the three months ended June 30, 2013 and 2012 respectively. As of June 30, 2013, the company had income taxes payable of $45,710.

Net Income (Loss)

We had a net income of $98,599 and $16,325 for three months ended June 30, 2013 and 2012 respectively.

For the Six months ended June 30, 2013 vs. June 30, 2012.

Revenue

For the six months ended June 30, 2012, the Company had net total revenue of $ 7,587,236 to the Company’s Europe, North and South America customers.

For the six months ended June 30, 2013, the Company had net total revenue of $10,706,316, which was increased nearly 41% than the six months ended June 30, 2012 total revenue of $7,587,236. This increase was because all main customer sales went up, plus new product stove sales started in 2012 third quarter and continued in the quarter ended June 30, 2013.

For the period January 1 to June 30, 2013, the Company sold icemakers and motors to, Electrolux USA, located at Charlotte NC for sales of $ 6,255,254. The icemakers and motors were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd; all the icemakers and motors were shipped out at FOB shipping point Nanjing, China.

The company also sold motors, to Stanco Metal Products for $ 99,982; the motors were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd; all the motors were shipped out at FOB shipping point Nanjing, China.

For the six months ended June 30, 2013, the Company sold components and appliance parts to Electrolux –Australia for $ 437,735. The components were manufactured and supplied by Chu Zhou Fu Da Mechanical and Electronics; all the icemakers and components were shipped out at FOB shipping point Nanjing, China.

The Company sold DAC Boxes, Deflector, and other related parts to Electrolux –Italy for total $ 202,630. The DAC Boxes, Magnets, Motors and other related parts were manufactured and supplied by Zhong Nan Fu Rui and Chu Zhou Fuda; all the DAC Boxes magnets, and motors were shipped out at FOB shipping point, Qingdao and Nanjing, China.

The Company also sold DAC Boxes, Magnets, Motors, and other related parts to Electrolux – Hungry for total $ 917,361. The DAC Boxes, magnets and Motors were manufactured and supplied by Zhong Nan Fu Rui and ChuZhou Fuda; all the DAC Boxes magnet, and motors were shipped out at FOB shipping point Qingdao and Nanjing, China.

The Company also sold DAC Boxes and related parts to Electrolux –Sweden for $ 13,807. The DAC Box and parts were manufactured and supplied by Chu Zhou Fuda; all the DAC Boxes were shipped out at FOB shipping point Nanjing, China.

The company sold Motors, icemakers, and some related refrigerator appliance parts to North Carolina Electrolux Major Appliances, Inc for $ 967,025. The parts, icemakers, and motors were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd, and were shipped out at FOB shipping point Nanjing, China.

The Company also sold Motors to Electrolux –ST. Cloud for $ 156,757. The motors were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd, and were shipped out at FOB shipping point Nanjing, China.

The Company sold Motors and other parts to Electrolux – Do Brasil for $246,120. The motors were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd, and were shipped out at FOB shipping point Nanjing, China.

The company sold icemakers to an US company, Domestic LLC for $ 43,924. And the icemakers were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd; all the icemakers were shipped out at FOB shipping point Nanjing, China.

The company sold stoves to The Paradigm Project for $ 234,145. The stoves were manufactured and supplied by Zhong Nan Fu Rui, and were shipped out at FOB shipping point at Qingdao, China.

The company sold thermostats and icemakers to an US company, Exact Replacement Parts for $ 65,742. The parts were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd, and were shipped out at FOB shipping point Nanjing, China.

In the period of January 1, 2013 to June 30, 2013, the Company sold parts or provided services to America Corporation for a total of $ 5,260.

For the period of January 1 to June 30, 2013, the Company sold thermostats and other related key parts for icemakers and motors, to ChuZhouFuDa, and Qingdao Fubida Electronic. The parts were used for the icemakers and motors. Flurida Group purchased the parts from Wako Electronics, Inc., an US Company located at Louisville, KY 40299. Flurida Group also sold Rocker Switch, the key parts for icemakers, to ChuZhouFuDa. The parts, Rocker Switch, were used for the icemakers .The Company purchased the parts, Rocker Switch, from CW Industries, an US Company located at Southampton, PA; and also Flurida Group purchased some other related key parts from corporate America, and then sold to Qingdao Fubida Electronic, and ChuZhouFuDa. Flurida Group, Inc. adds averaged 5% - 10% margin based on the cost of purchase, then sold to them, so, $ 533,050, and $ 523,138 were sold and invoiced to ChuZhouFuDa, and Qingdao Fubida Electronic respectively for the six months period ended June 30, 2013.

In summary, for the period of January 1 to June 30, 2013, the Company incurred the total gross sales of $ 10,706,931. And the Company had sales discount and return of $ 615, so, a total of $ 10,706,316 net sales were recorded.

In both six months period ended June 30, 2013 and 2012 sales, more than 80% of total revenues were generated through Electrolux controlled subsidiaries in various countries. Electrolux Group operated its each subsidiary independently in each country, and all the sales orders and sales contracts were negotiated and signed independently. Accordingly, we believe that lack of one or a few subsidiaries of Electrolux sales order may have effect on our overall sales revenue, but the effects were slightly reduced in 2013 vs 2012. We signed long-term distribution agreement with various Electrolux subsidiaries, the risk of loss the contracts with Electrolux is significantly low.

Cost of Revenue

For the six months ended June 30, 2013, the Company incurred a total cost of goods sold of $9,808,090, for the purchases of parts, motor, and icemakers for the total sales of $10,706,316.

At the period ended December 31, 2013, the Company had ending inventory $ 2,278,467 that was majority purchased from ChuZhou FuDa and Zhong Nan Fu Rui.

From the period January 1 to June 30, 2013, Flurida Group, Inc. purchased Stoves and parts from Zhong Nan Fu Rui at total cost of $ 248,757 for FOB shipping point at Qingdao, China.

The Company purchased Icemakers, motors, and parts from ChuZhou FuDa at total cost of $ 9,053,430 for FOB shipping point at Nanjing, China.

For the six months ended June 30, 2013, the Company had total purchase of $ 10,296,955.

At the periods ended June 30, 2013, the company had total ending inventory at a value $ 2,773,541.

For the period of January 1 to June 30, 2013, the company had freight cost and other related cost of $ 7,662.

Therefore, in the six months period ended June 30, 2013, the Company incurred a total cost of goods sold of $ 9,808,090 which was increased nearly 43 % comparing to the three months ended June 30, 2012 cost of goods sold of $6,862,647. The increase of cost of goods sold was due to the sales increase, increasing Chinese Yuan’s currency exchange rate, labor costs, and raw materials.

Expense

Our operation expenses consist of selling, general and administrative expenses, and research & development expenses, and depreciation expenses:

	Six Months Ended		Six Months Ended
	June 30, 2013		June 30, 2012
Operating expenses
Administration Expense		694		784
Bank Service Charges		24,955		14,590
Business Registration and Permits		343		-
Certification		11,050		28,105
Computer and Internet Expenses		329		869
Depreciation Expenses		12,603		10,023
Fuel charge		315		1,363
Gift and Promotion		-		3,657
Meals and Entertainment		17,127		8,603
Office Supplies		4,526		4,996
Parking Fee		102		537
Payroll Expense - ER		24,804		25,540
Payroll Expenses - EE		354,574		357,160
Penalty and Fines Expenses		826		-
Postage and Shipping		1,950		4,246
Professional Fees		86,190		63,786
Rent Expense		31,012		25,992
Repair and Maintenance		21		750
Research and Development Expense		11,777		14,971
Service Cost		-		277
Telephone Expense		6,461		5,075
Travel Expense
Airfare		33,167		26,511
Car Rental		3,753		3,004
Hotel Expense		19,949		18,542
Local Transportation		2,230		231
Total Travel Expense		59,099		48,288
Utilities		1,351		1,172
Total Operating Expense		650,109		620,784

Started from February 2013, Flurida Group had salaries for officers Jianfeng Ding, Yaru Huang, and Ying Zhong for $350,000, $84,000, $84,000. And Flurida Group USA hired employees to taking care of the office, research and development, and marketing activities, therefore, the Company incurred a total payroll expense of $379,378 for the six months ended June 30, 2013. For maintaining and operating the business, the Company expensed a total of $21,000 commission and consulting fee. In order to increasing the sales in Europe and North America, the Company expensed $ 11,050 certification fees on the products we sold or exported in the period of January 1 to June 30, 2013. Due to the raise of sale volume and customers, the Company had travel expenses of $ 59,099, and had equipment and research development expenses of $11,777.

We expect selling, general, and administrative expenses to increase in future periods as we initiate a number of marketing and promotional activities.

Income Taxes

We are subject to income taxes in the U.S. and we incurred income tax expense of $96,292 and $64,433 for the six months ended June 30, 2013 and 2012 respectively. As of June 30, 2013, the company had income taxes payable of $45,710.

Net Income (Loss)

We had a net income of $144,295 and $43,423 for six months ended June 30, 2013 and 2012 respectively.

Commitments and Contingencies

The Company has signed a long-term distribution agreement with Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co., Ltd. Zhong Nan Fu Rui is a Chinese manufacturing company owned 100% by Mr. Jianfeng Ding, also the founder of Flurida Group, Inc. Also, On June 2008, the company signed a consigned inventory agreement with an US company, Electrolux Home Products DE Mexico and Anderson, S.A.DEC.V (Electrolux).

Foreign Currency Translation

Liquidity and Capital Resources

	At June 30		At June 30		At December 31
	2013		2012		2012

Current Ratio*		1.37		1.34		1.77
Cash	$	1,261,608	$	2,434,883	$	194,265
Working Capital**	$	1,876,618	$	1,376,738	$	1,637,866
Total Assets	$	7,296,284	$	6,695,347	$	4,226,739
Total Liabilities	$	5,324,361	$	4,996,306	$	2,393,148

Total Equity	$	1,971,923	$	1,699,041	$	1,833,591

Total Debt/Equity***		2.70		2.94		1.31

*Current Ratio = Current Assets /Current Liabilities

**Working Capital = Current Assets - Current Liabilities

*** Total Debt / Equity = Total Liabilities / Total Shareholders’ Equity.

The Company’s overall working capital was increased in the fiscal quarter ended June 30, 2013 comparing to fiscal quarter ended June 30, 2012, due to the overall increase of the accounts receivable and inventory; also, the Company’s current ratio was increased as June 30, 2013 comparing to 2012 due to the increase of the accounts receivable and decrease of the accounts payable.

Currently the Company has a sales agreement with Electrolux, such agreement require the Company to supply the motors, ice makers, and other parts based on Electrolux’s needs. The management projected that the needs for our Company’s products shall be stable with slight increase worldwide. However, due to the consignment arrangement with Electrolux, the Company would keep certain level of consignment inventory to meet the Electrolux’s requirements. In addition, due to the consignment terms with Electrolux, the sales would be recognized when the Electrolux withdraw the products or the consignment inventory at Electrolux’s warehouse for 60 days. In our due course of business dealing with Electrolux’s consignment sales, all the sales incurred in 2012 were for the products withdrew before the 75 days terms, i.e., the products might be considered as sales automatically based on the consignment terms. After the products withdrew by Electrolux, the Company may receive the payment in 7 days with discount through DB Supplier Finance.

Our activities for generating cash flows were operating activities in 2013 and 2012. There were no investing activities incurred for three months period 2013, and 2012. The management will continue to improve our current business on marketing, customer services and general administrative activities effectiveness; we still continually focus on developing our new products electronic ice maker. We are also working on some new projects such as vegetable try system for Electrolux; LED display GPS system for US new customer and extend new style for stoves. We currently anticipate that those products will be ready in the market within two years, although there always could be further delays.

Specifically, the management still believes that within the operating activities, the efforts of collecting accounts receivables and making payments of accounts payables still are the primary factors for the changes of cash flows in the year 2013 or later.

The Company had cash and cash equivalents of $ 1,261,608 at June 30, 2013 and $1,876,618 of working capital and $2,434,883 at June 30, 2012 and $1,376,738 of working capital.

The total debt of $5,324,361 for June 30, 2013 included total of $ 4,053,578 for Chu Zhou Fu Da, and $134,313 for US suppliers, $80,260 for salary and payroll tax payable, and $30,982 for all other account payable, $ 700,000 loan from the Bank, $ 45,710 income tax liabilities, and $ 179,518 unearned revenue.

Our independent auditor has indicated that our customer concentration may raise doubt about its ability to continue as a going concern. The financial statements do not include adjustments that might result from the outcome of this uncertainty and if the Company is unable to generate significant revenue or secure financing, then the Company may be required to cease or curtail its operations. However, due to the close relationship between the Company and its supplier, Zhong Nan Fu Rui and Chuzhou Fu Da, which are 100% owned by the founder, Jianfeng Ding, Chuzhou Fuda and Zhong Nan Fu Rui’s current customers can be served by the Company for the same quality of products and services. Besides, as of June 30, 2013, the cash and cash equivalent balance was $1,261,608, the management believes that the revenues will be generated and its cash flows will be maintained to cover its operational costs and the risk of going concern in long term is significantly low.

Interest Rate Risk

We do not have significant interest rate risk, as our debt obligations (i.e., notes payables to shareholders which can be converted to common stocks). The annual interest rate of notes payable is 8%, and the interest expense would be accrued if the notes were not converted to common shares, and the notes holders request the Company for repayment of principles plus the interest. Seven non-affiliated loan holders asked the Company for repayment of notes plus interest on April 1, 2008. All remaining loan holders converted their loans to common shares on April 15, 2008.

Item 3.

Quantitative and Qualitative Disclosure about Market Risk

Not applicable.

Item 4.

Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

The Company has established disclosure controls and procedures to ensure that information required to be disclosed in this quarterly report on Form 10-Q was properly recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms. The Company’s controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers to allow timely decisions regarding required disclosure.

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) at June 30, 2013 based on the evaluation of these controls and procedures required by paragraph (b) of Rule 13a-15 or Rule 15d-15 under the Exchange Act. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, at June 30, 2013, our disclosure controls and procedures are not effective.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company's internal control over financial reporting that occurred during the Company's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1.

Legal Proceedings.

None.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

(a) Unregistered Sales of Equity Securities.

None.

(b) Use of Proceeds.

The Registrant did not sell any unregistered securities during the three months ended June 30, 2013.

Item 3.

Defaults Upon Senior Securities

None.

Item 4.

Mine Safety Disclosures.

Not applicable.

Item 5.

Other Information.

Not applicable.

Item 6.

Exhibits.

(a) Exhibits.

Exhibit No.		Document Description

31.1		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.

31.2		CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.

32.1 *		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002

32.2 *		CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002

Exhibit 101

Interactive data files formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, and (iv) the Notes to the Consolidated Financial Statements.**

101.INS		XBRL Instance Document**

101.SCH		XBRL Taxonomy Extension Schema Document**

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document**

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document**

101.LAB		XBRL Taxonomy Extension Label Linkbase Document**

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document**

_______________

* This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 of the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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.

	Flurida Group, Inc.,a Nevada corporation

August 14, 2013	By:	/s/ Jianfeng Ding
		Jianfeng Ding
		Principal Executive Officer

In accordance with the Exchange Act, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

SIGNATURE	NAME	TITLE	DATE

/s/ Jianfeng Ding	Jianfeng Ding	Principal Executive Officer and Director	August 14, 2013

/s/ Yaru Hang	Yaru Hang	Principal Financial Officer and Principal	August 14, 2013
		Accounting Officer

EXHIBIT INDEX

Exhibit No.		Document Description

31.1		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.

31.2		CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.

32.1 *		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002

32.2 *		CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002

Exhibit 101		Interactive data files formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, and (iv) the Notes to the Consolidated Financial Statements.**

101.INS		XBRL Instance Document**

101.SCH		XBRL Taxonomy Extension Schema Document**

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document**

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document**

101.LAB		XBRL Taxonomy Extension Label Linkbase Document**

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document**

_____________

Attached files

FLURIDA GROUP INC Reports

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