UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

 

For the quarterly period ended March 31, 2021

 

OR

 

[  ] 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 000-55963

 

JS BEAUTY LAND NETWORK TECHNOLOGY INC.

(Exact name of registrant as specified in its charter)

 

Nevada		83-1365356
(State or other jurisdiction		I.R.S. Employer
of incorporation)		Identification Number

 

No. 99, Taihu Road, Yancheng, Jiangsu Province, China

(Address of principal executive offices)

 

778-888-2886

(Registrant’s telephone number, including area code)

 

Securities registered under Section 12(b) of the Exchange Act: None

 

Securities Registered Pursuant to Section 12(g) of the Act:

 

Title of Each Class		Trading Symbol		Name of Each Exchange on which registered
Common Stock, par value $0.001		JSBL		n/a

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the 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	[X]	Smaller reporting company	[X]
		Emerging growth company	[X]

 

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 [X]

 

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date.

 

Class		Outstanding at August 2, 2021
Common Stock, par value $0.001		2,676,428

 

Documents incorporated by reference: None

 

 

 

CONDENSED FINANCIAL STATEMENTS

 

Condensed Consolidated Balance Sheets as of March 31 (unaudited) and December 31, 2020 (audited)	3
Condensed Consolidated Statements of Operations and Comprehensive Income for the three months March 31, 2021 and 2020 (unaudited)	4
Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2021 and 2020 (unaudited)	5
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020 (unaudited)	6
Notes to Condensed Financial Statements (unaudited)	7

 

 

JS BEAUTY LAND NETWORKING TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEET

 

		March 31, 2021				December 31, 2020
		(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents		$	645,222			$	721,529
Prepaid expense			-				10,666
Other receivable			20,817				19,782
Due from related party			3,959				3,975
Total Current Assets			669,998				755,952
Right-of-use asset			134,751				127,778
Property And Equipment, Net			6,120				6,760
Total Assets		$	810,869			$	890,489
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accrued liabilities		$	34,285			$	36,690
Due to related party			106,022				106,452
Tax payable			-				10,453
Other payable			131,836				131,750
Lease liability-current			68,850				68,319
Shares to be issued			22,000				98,000
Total Current Liabilities			362,993				451,664
Lease liability			41,696				59,459
Total Liabilities		$	404,689				511,123
Stockholders’ Equity
Common stock, $0.001 par value, 100,000,000 shares authorized; 2,654,428 and 2,556,428 shares issued and outstanding at March 31, 2021 and December 31, 2020			2,654				2,556
Additional paid in capital			1,393,897				1,294,405
Accumulated deficit			(1,039,498	)			(967,401	)
Accumulated other comprehensive income			55,694				56,390
Total JS Beauty Land Network Technology Inc.’ Equity		$	412,747				385,950
Non-controlling interest			(6,567	)			(6,583	)
Total Stockholders’ Equity			406,180				379,367
Total Liabilities and Stockholders’ Equity		$	810,869			$	890,490

 

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

 

 

JS BEAUTY LAND NETWORKING TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)

 

		For the Three Months ended March 31,
		2021				2020
Revenue		$	-			$	50,877
Cost of goods sold			-				22,172
Gross Profit			-				28,705
Operating expenses
Selling expense			-				-
General and administrative			71,488				45,036
Operating expenses			71,488				45,036
Operating income (loss)			(71,488	)			(16,331	)
Other income (expense)
Interest income			444				71
Interest expense			(1,607	)			(1,494	)
Other income (expense), net			(1,163	)			(1,423	)
Net income (loss)		$	(72,651	)		$	(17,754	)
Less: net income (loss) attributable to non-controlling interest			(554	)			2
Net income (loss) attributable to JS Beauty Land Network Technology Inc.			(72,097	)			(17,756	)
Other comprehensive income (loss)
Foreign currency translation (loss) gain			(126	)			(8,371	)
Less: foreign currency translation gain attributable to non-controlling interest			570				24
Total Comprehensive Loss Attributable to JS Beauty Land Network Technology Inc.		$	(72,793	)		$	(26,151	)
Loss per share - basic and diluted		$	(0.03	)		$	(0.01	)
Weighted average shares- basic and diluted			2,611,806				2,192,692

 

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

 

 

JS BEAUTY LAND NETWORKING TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(UNAUDITED)

 

		Common Stock								Additional Paid-in				Accumulated				Accumulated Other Comprehensive				Noncontrolling				Total Stockholders’
		Shares				Amount				Capital				Deficit				Income				Interest				Equity
Balance as of December 31, 2020			2,556,428				2,556				1,294,405				(967,401	)			56,390				(6,583	)			379,367
Imputed interest expense			-				-				1,590				-				-				-				1,590
Share issuance for subscription received in prior period			98,000				98				97,902				-				-				-				98,000
Net loss			-				-				-				(72,097	)			-				(554	)			(72,651	)
Accumulated other comprehensive income			-				-				-				-				(696	)			570				(126	)
Balance as of March 31, 2021			2,654,428			$	2,654			$	1,393,897			$	(1,039,498	)		$	55,694			$	(6,567	)		$	406,180

 

		Common Stock								Additional Paid-in				Accumulated				Accumulated Other Comprehensive				Noncontrolling				Total Stockholders’
		Shares				Amount				Capital				Deficit				Income				Interest				Equity
Balance as of December 31, 2019			2,136,428				2,136				868,438				(623,311	)			10,625				(4,669	)		$	253,219
Imputed interest expense			-				-				1,473				-				-				-				1,473
Share issuance for subscription received in prior period			80,000				80				79,920				-				-				-				80,000
Net loss			-				-				-				(17,756	)			-				2				(17,754	)
Accumulated other comprehensive income			-				-				-				-				(8,395	)			24				(8,371	)
Balance as of March 31, 2020			2,216,428			$	2,216			$	949,831			$	(641,067	)		$	2,230			$	(4,643	)		$	308,567

 

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

 

 

JS BEAUTY LAND NETWORKING TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

 

		For the Three Months ended March 31,
		2021				2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(72,651	)		$	(17,754	)
Non-cash adjustment to reconcile net loss to net cash:
Depreciation and amortization			619				821
Imputed interest expense			1,590				1,473
Changes in Operating Assets and Liabilities:
Prepaid expense			10,738				(18,021	)
Other receivable			(1,128	)			4,107
Inventory			-				22,114
Right-of-use asset			(24,467	)			-
Accrued liabilities			(2,405	)			(17,050	)
Payroll payable			-				(3,400	)
Tax payable			(10,523	)			540
Other payable			86				8,018
NET CASH PROVIDED BY(USED IN) OPERATING ACTIVITIES			(98,141	)			(19,152	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets			-				(223	)
NET CASH USED IN INVESTING ACTIVITIES			-				(223	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from shares to be issued			22,000				4,000
NET CASH PROVIDED BY FINANCING ACTIVITIES			22,000				4,000
NET INCREASE IN CASH AND CASH EQUIVALENTS			(76,141	)			(15,375	)
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS			(166	)			(1,806	)
CASH AND CASH EQUIVALENTS:
Cash Balance, Beginning of Period			721,529				121,198
Cash Balance, End of Period		$	645,222			$	104,017
SUPPLEMENTAL DISCLOSURES:
Cash paid for income tax		$	-			$	-
Cash paid for interest		$	-			$	-

 

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

 

 

JS BEAUTY LAND NETWORK TECHNOLOGY INC. AND SUBSIDIARY

 

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

NATURE OF OPERATIONS

 

JS Beauty Land Network Technology Inc. (the “Company” or “JS” or “We’ or “Us”) is a Nevada corporation incorporated on May 8, 2018. The Company was formed as a US corporation to use as a vehicle for raising equity both in the United States and abroad.

 

On August 6, 2018, the Company and an unrelated party established a subsidiary company, Jiangsu Meiyunmei Technology Inc. (“MYM”), in China. The Company owns 99% of the common shares of MYM. MYM’s business plan is to operate jewelry manufacturing facilities and retailers in China, particularly dealing in fine emerald and jade jewelry. MYM intends to offer jewelry both in a retail setting and through online channels. MYM intends to target high-end jewelry consumers and investors and collectors of fine jade jewelry. In the longer term, MYM intends to operate a franchising business for retail sales of fine jewelry. MYM started jewelry retail sales in November 2018.

 

The outbreak of COVID-19 coronavirus in China starting from the beginning of 2020 has resulted reduction of working hours for the Company. The Company followed the restrictive measures implemented in China, by suspending operation and having employees’ work remotely during February and March 2020. The Company gradually resumed operation and production starting in April 2020. The demand for our products decreased in February and March 2020. The recent developments of COVID-19 are expected to result in lower sales and gross margin in 2021. Due to the negative impact of COVID-19 on domestic and global economy, the extent to which COVID-19 will affect our results of operations and future financial results in the long term remains uncertain. Other financial impact could occur though such potential impact is unknown at this time.

 

Jewelry business is a traditional industry, inventory can be held huge capital, result is sales profit is low. Since 2021, JS has implemented the transformation plan. After building its own web-famous platform, JS has eliminate the inventory and used the new modern sales model to create a new sales platform base and realize a new model of sales.

 

BASIS OF PRESENTATION

 

The Company’s unaudited condensed consolidated financial statements are prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). The unaudited condensed consolidated financial statements include the financial statements of JS and its subsidiary MYM. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the unaudited condensed consolidated financial statements have been included.

 

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s unaudited condensed financial statements. Such unaudited financial statements and accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects and have been consistently applied in preparing the accompanying unaudited financial statements.

 

Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) were omitted pursuant to such rules and regulations. The results for the period ended March 31, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021.

 

 

Non-controlling interests

 

Non-controlling interests represents the individual shareholder’s proportionate share of 1% of equity interest in Jiangsu Meiyunmei Technology Inc.

 

USE OF ESTIMATES

 

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

 

RECENT ACCOUNTING PRONOUNCEMENTS

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

 

NOTE 2 - RISKS AND UNCERTAINTIES

 

The outbreak of COVID-19 coronavirus in China starting from the beginning of 2020 has resulted reduction of working hours for the Company. The Company followed the restrictive measures implemented in China, by suspending operation and having employees’ work remotely during February and March 2020. The Company gradually resumed operation and production starting in April 2020. The demand for our products decreased in February and March 2020. The recent developments of COVID-19 are expected to result in lower sales and gross margin in 2021. Due to the negative impact of COVID-19 on domestic and global economy, the extent to which COVID-19 will affect our results of operations and future financial results in the long term remains uncertain. Other financial impact could occur though such potential impact is unknown at this time.

 

The Company incurs expense transactions that are denominated in RMB. A portion of the Company’s subsidiary’s assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies that require certain supporting documentation in order to affect the remittance.

 

As of March 31, 2021 and December 31, 2020, $561,159 and $617,810 of the Company’s cash were on deposit at financial institutions in the PRC where there currently is a rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. The Company’s bank account in the PRC is protected by deposit insurance up to RMB500,000.

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and other receivable. Cash in bank amounted to $645,222 and $721,519 as of March 31, 2021 and December 31, 2020, respectively. Other receivable amounted to $20,817 and $19,782 as of March 31, 2021 and December 31, 2020, respectively.

 

NOTE 3 - GOING CONCERN

 

The Company has generated revenue since inception to date and has sustained operating loss of $72,651 during the three months ended March 31, 2021. The Company had a working capital of $307,005 and a negative accumulated deficit of $1,039,498 as of March 31, 2021. These factors raise substantial doubts about the Company’s ability to continue as a going concern. 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 obtaining additional financing from its shareholders or other sources, as may be required.

 

The accompanying financial statements have been prepared assuming that 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 classifications of liabilities that may result should the Company be unable to continue as a going concern.

 

 

In order to maintain its current level of operations, the Company will require additional working capital from either cash flow from operations or from the sale of its equity. However, the Company currently has no commitments from any third parties for the purchase of its equity. If the Company is unable to acquire additional working capital, it will be required to significantly reduce its current level of operations.

 

NOTE 4 – PROPERTY AND EQUIPMENT

 

As of March 31, 2021 and December 31, 2020, the Company had gross property and equipment of $12,241 and $12,291 and accumulated depreciation of $6,120 and $5,531, respectively. Property and equipment consisted of the office equipment. For the three months ended March 31, 2021 and 2020, depreciation expenses amounted to $619 and $575, respectively.

 

NOTE 5 - RELATED PARTIES

 

Due from a related party amounted to $3,959 and $3,975 as of March 31, 2021 and December 31, 2020, respectively. The amount due from a related party, chairman of MYM, Yang Yang.

 

Due to related parties amounted to $106,022 and $106,452 as of March 31, 2021 and December 31, 2020, respectively. The amount due to two related parties, director of the Company, Faxian Qiang, and director of MYM, Zhaojin Xu, are loans made by related parties, which are unsecured, non-interest bearing, and due on demand. The Company accrued imputed interest with 6% per annum. Imputed interest amounted $1,590 and $1,473 for the three months ended March 31, 2021 and 2020, and was recorded as paid in capital.

 

Our directors have not been compensated for the services.

 

NOTE 6 – OTHER PAYABLE

 

Other payable amounted to $131,836 and $131,750 as of March 31, 2021 and December 31, 2020, respectively. Other payable are payments for general and administrative expenses made by an unrelated party on behalf of the Company. The balance of other payable is unsecured, non-interest bearing, and due on demand. Other payable is primarily payments for incorporation fees, audit fees, and professional fees.

 

NOTE 7 - STOCKHOLDERS’ EQUITY

 

The Company is authorized to issue 100,000,000 shares of common stock and 10,000,000 shares of preferred stock. There is no preferred stock issued and outstanding as of March 31, 2021 and December 31, 2020. There are 2,654,428 and 2,556,428 shares of common stock issued and outstanding as of March 31, 2021 and December 31, 2020, respectively.

 

In October 2020, the Company sold 39,000 shares of common stock at $1.0 per share for total of $39,000 to 24 unrelated parties. These shares were issued in January 2021.

 

In November 2020, the Company sold 50,000 shares of common stock at $1.0 per share for total of $50,000 to 50 unrelated parties. These shares were issued in January and March 2021.

 

In December 2020, the Company sold 9,000 shares of common stock at $1.0 per share for total of $9,000 to 9 unrelated parties. These shares were issued in March 2021.

 

In January 2021, the Company sold 7,000 shares of common stock at $1.0 per share for total of $7,000 to 7 unrelated parties. These shares were issued in April 2021.

 

 

In February 2021, the Company sold 2,000 shares of common stock at $1.0 per share for total of $2,000 to 2 unrelated parties. These shares were issued in April 2021.

 

In March 2021, the Company sold 13,000 shares of common stock at $1.0 per share for total of $13,000 to 13 unrelated parties. These shares were issued in April 2021.

 

NOTE 8 – LEASE

 

MYM has entered into a operating leases agreement with Nanjing Dongfang Shihua Real Estate Co., Ltd. The lease term of the office space is from November 1, 2019 to October 31, 2022. The current monthly rent including monthly management fee is approximately $5,839 (RMB 39,647). The operating lease is listed as separate line item on the Company’s condensed consolidated financial statements and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are also listed as a separate line item on the Company’s condensed consolidated financial statements.

 

For the three months ended March 31, 2021, the Company recognized approximately $18,350 in total lease costs.

 

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

 

Information related to the Company’s operating ROU assets and related lease liabilities are as follows:

 

		Three Months Ended March 31, 2021
Cash paid for operating lease liabilities		$	18,350
Weighted-average remaining lease term			1.58
Weighted-average discount rate			4.75	%
Minimum future lease payments		$	110,546

 

The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending March 31:

 

2022		$	68,850
2023			41,696
2024			-
2025			-
2026 and thereafter			-
Total		$	110,546

 

NOTE 9 – SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to March 31, 2021 to the date these financial statements were issued.

 

In April 2021, the Company issued 7,000 shares, 2,000 shares and 13,000 shares of common stock that were sold in January 2021, February 2021 and March 2021, respectively.

 

Other than the above stated Subsequent Event, the Company has evaluated the existence of events and transactions subsequent to the balance sheet date through the date the consolidated financial statements were issued and has determined that there were no significant subsequent events or transactions that would require recognition or disclosure in the financial statements.

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Forward Looking Statements

 

This management’s discussion and analysis should be read in conjunction with the financial statements and notes included elsewhere in this registration statement.

 

This management’s discussion and analysis, as well as other sections of this registration statement, may contain “forward-looking statements” that involve risks and uncertainties, including statements regarding our plans, future events, objectives, expectations, estimates, forecasts, assumptions or projections. Any statement that is not a statement of historical fact is a forward-looking statement, and in some cases, words such as “believe,” “estimate,” “project,” “expect,” “intend,” “may,” “anticipate,” “plan,” “seek,” and similar expressions identify forward-looking statements. These statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the anticipated outcomes or results, and undue reliance should not be placed on these statements. These risks and uncertainties include, but are not limited to, the matters discussed under the caption “Risk Factors” in Item 1A of this registration statement. JS Beauty Land Network Technology Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

For the period ended March 31, 2021, the financial statements have been prepared by management in accordance with the standards of the generally accepted accounting principles in the United States of America.

 

Overview

 

JS Beauty Land Network Technology Inc. was organized on May 8, 2018 as a Nevada corporation under Chapter 78 of the Nevada Revised Statutes. The Company has one subsidiary, Jiangsu Meiyunmei Technology Inc. (“MYM”), a Chinese company. The Company owns 99% of the common shares of MYM.

 

The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act which became law in April 2012. The definition of an “emerging growth company” is a company with an initial public offering of common equity securities which occurred after December 8, 2011 and has less than $1 billion of total annual gross revenues during last completed fiscal year.

 

Overview of the Business

 

The Company commenced jewelry sales on November 2018 and started to generate revenue at that time. The Company was formed as a US corporation to use as a vehicle for raising equity both in the United States and abroad.

 

JS Beauty Land Network Technology, Inc. (also referred to as “the Company”) is a Chinese retailer and wholesaler of jade stone-adorned jewelry and decorations. The Company intends to directly engage in the manufacture, marketing and sales of fine jewelry and art from China through its newly formed Chinese subsidiary, Jiangsu Meiyunmei Technology Inc. (“MYM”). The Company commenced retail sales operations in November 2018. We are unaware of any specific restrictions imposed by the Government of China with respect to the conduct of the business of the Company or its Chinese subsidiary. The Company intends to utilize a business model that would focus on repeat clientele and collectors. In addition to its core business, the Company intends to offer memberships to its customers estimated to cost approximately $1,500, which will offer exclusive purchase opportunities. The Company’s activities will range from procuring high-quality stones, to building cooperative partnerships with its customers. The Company’s Chinese headquarters are in Xuanwu, Nanjing, Jiangsu, China.

 

Jewelry is a traditional industry, inventory can be held huge capital, sales profit is low. Since 2021, JS has implemented the transformation plan. After building its own web-famous platform, JS has eliminate the inventory and used the new modern sales model to create a new sales platform base and realize a new model of sales.

 

 

Market Opportunity

 

In recent years, in the Chinese market, web-celebrity with goods sales model, no inventory, no stores, using web-celebrity effect, often create new sales records. JS company has built its own web-celebrity platform and has signed more than 150 web-celebrity stars to achieve sales performance. Business benefit web celebrity sales, in China has been accepted by the market, constantly innovative sales performance, has made this business model is widely

 

Marketing and Distribution

 

Marketing will be done through a variety of channels, including the Internet, networking, trade shows, social media, and influencer marketing. In addition, print advertising will target carefully chosen audiences. The distribution channels will be retail branch locations and online through the We Chat platform.

 

Target Market

 

JS Beauty Land Network Technology, Inc. anticipates that the primary customers of its products and services will be:

 

	●	Men between 30 and 44 Years - Management believes that this market has a high interest in the purchase of high-end jade jewelry.
	●	Luxury Market - Luxury jewelry sales.
	●	Junior Buyers – According to Chinese traditions, people give longevity locks, bracelets, and necklaces to children as goodwill tokens and as a way of wishing them a healthy and happy life.
	●	Wedding Market - It is estimated that more than 50% of sales are related to weddings.
	●	Festival Market - Jewelry sales influenced by festivals and anniversaries. Most people buy jewelry as a gift to celebrate birthdays and festivals, especially the Lunar New Year and Qixi Festival (the Chinese equivalent of Valentine’s Day).

 

Potential Acquisitions

 

As an adjunct to its business strategy, the Company will also seek to identify potential acquisitions which are involved in the operation of jewelry manufacturing facilities and jewelry retailers in China, particularly those dealing in fine emerald and jade jewelry.

 

Capital Formation

 

JS Beauty Land Network Technology Inc., shareholder’s equity capital formation.

 

The company was formed on May 8, 2018, with no capital. Thereafter, the Company issued 1,000,000 shares of founder’s capital to Faxian Qian at $0.001 per share for an aggregate of $1,000. In August and September 2018, the Company sold an additional 371,428 at investors in China for prices ranging from $0.25 per share to $0.50 per share for aggregate proceeds of $118,957.

 

The Company filed a Registration Statement in 2019 to register 1,000,000 IPO shares together with 456,425 selling shareholder shares. At December 31, 2019, 765,000 of the IPO shares had been sold with gross proceeds of $765,000. The IPO offering has now been terminated as to the remaining 235,000 shares in the registration statement.

 

During fiscal year 2020, the Company sold an additional 420,000 shares of common stock in a private placement with gross proceeds of 420,000 ($1.00 per share).

 

During fiscal year 2021, the Company may require additional funding for ongoing operations. There is no guarantee that we will be able to raise any additional capital and have no current arrangements for any such financing.

 

 

Results of Operations

 

Three Months Ended March 31, 2021 Compared to March 31, 2020

 

The following table summarizes the results of our operations during the three months ended March 31, 2021 and 2020, respectively, and provides information regarding the dollar and percentage increase or (decrease) from the current three-month period to the prior three-month period:

 

Line Item		3/31/2021				3/31/2020				Increase (Decrease)				Percentage Increase (Decrease)
Revenues		$	—			$	50,877			$	(50,877	)			inf.
Operating expenses			71,488				45,036				26,452				58.7	%
Net loss			(72,651	)			(17,754	)			54,897				309.2	%
Loss per share of common stock			(0.03	)			(0.01	)			(0.02	)			200.0	%

 

We recorded a net loss of $72,651 for the three months ended March 31, 2021 as compared with a net loss of $17,754 for the three months ended March 31, 2020 due primarily to a reduction in sales and increase in general and administrative expense.

 

Liquidity and Capital Resources

 

As of March 31, 2021, we had total assets of $810,869, working capital of $307,005 and an accumulated stockholders’ deficit of $1,039,498. Our operating activities used $73,674 in cash for the three-month period ending March 31, 2021. Our revenues were $0.00 in the three-month period ending March 31, 2021 compared to $50,877 in the comparable period of 2020.

 

Management believes that the Company’s cash on hand will be sufficient to fund all Company obligations and commitments for the next twelve months. Historically, we have depended on loans from our principal shareholders and their affiliated companies to provide us with working capital as required. There is no guarantee that such funding will be available when required and there can be no assurance that our stockholders, or any of them, will continue making loans or advances to us in the future.

 

At March 31, 2021, the Company had loans outstanding from two related parties in the aggregate amount of $106,022, which represents amounts loaned to the Company to pay the Company’s expenses of operation. All such advances are non-interest bearing and payable on demand. The Company accrued imputed interest with 6% interest rate per annum. Imputed interest amounted $1,590 during the three months ended March 31, 2021.

 

Coronavirus Pandemic

 

The outbreak of COVID-19 coronavirus in China starting from the beginning of 2020 has resulted reduction of working hours for the Company. The Company followed the restrictive measures implemented in China, by suspending operation and having employees’ work remotely during February and March 2020. The Company gradually resumed operation and production starting in April 2020. The demand for our products decreased in February and March 2020. The recent developments of COVID-19 are expected to result in lower sales and gross margin in 2021. Due to the negative impact of COVID-19 on domestic and global economy, the extent to which COVID-19 will affect our results of operations and future financial results in the long term remains uncertain. Other financial impact could occur though such potential impact is unknown at this time.

 

Off Balance Sheet Arrangements

 

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

 

 

Contractual Obligations and Commitments

 

None.

 

Seasonality

 

Our operating results are not affected by seasonality.

 

Inflation

 

Our business and operating results are not affected in any material way by inflation.

 

Critical Accounting Policies

 

Use of estimates

 

The preparation of our financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Estimates and judgments used are based on management’s experience and the assumptions used are believed to be reasonable given the circumstances that exist at the time the financial statements are prepared. Actual results may differ from these estimates.

 

Emerging Growth Company

 

The Company has made an election to be an emerging growth company as defined under the Jumpstart Our Business Startups Act of 2012 (“Jobs Act”). Included with this election, the Company has also irrevocably elected to use the provisions within the Jobs Act that allow companies that go public to continue to use the private company adoption date rules for new accounting policies. In this regard, the Company has made an irrevocable election to use the extended transition period provided in Securities Act Section 7(a)(2)(B) for complying with new or revised accounting standards. Should the Company obtain revenues in excess of $1 billion on an annual basis, have its non-affiliated market capitalization increase to over $700 million as of the last day of its second quarter, or raise in excess of $1 billion in public offerings of its equity or instruments directly convertible into its equity, it will forfeit its status under the Jobs Act as an emerging growth company.

 

Other

 

The Securities and Exchange Commission issued Financial Reporting Release No. 60, “Cautionary Advice Regarding Disclosure About Critical Accounting Policies” suggesting that companies provide additional disclosure and commentary on their most critical accounting policies. In Financial Reporting Release No. 60, the Securities and Exchange Commission has defined the most critical accounting policies as the ones that are most important to the portrayal of a company’s financial condition and operating results, and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The nature of our business generally does not call for the preparation or use of estimates. Due to the fact that the Company does not have any operating business, we do not believe that we do not have any such critical accounting policies.

 

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Information not required to be filed by Smaller reporting companies.

 

 

ITEM 4. Controls and Procedures.

 

Disclosures and Procedures

 

Pursuant to Rules adopted by the Securities and Exchange Commission, the Company carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Exchange Act Rules. This evaluation was done as of the end of the period covered by this report under the supervision and with the participation of the Company’s principal executive officer (who is also the principal financial officer).

 

Based upon that evaluation, he believes that the Company’s disclosure controls and procedures are not effective in gathering, analyzing and disclosing information needed to ensure that the information required to be disclosed by the Company in its periodic reports is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Such conclusion is due to the presence of material weakness in internal control over financial reporting as described below: we did not maintain effective internal control over financial reporting as we are a very small company and does not have separation of duties and our accounting staff lack sufficient U.S. GAAP experience and requires further substantial training.

 

Changes in Internal Controls

 

There was no change in the Company’s internal control over financial reporting that was identified in connection with such evaluation that occurred during the period covered by this report 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

 

There are no legal proceedings against the Company and the Company is unaware of such proceedings contemplated against it.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

In the period between January 1, 2021 and March 31, 2021, the Company issued an additional 98,000 shares in a private offering in China for net proceeds of $98,000 ($1.00 per share) to several unrelated parties.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

Not applicable.

 

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

(a) Not applicable.

(b) Item 407(c)(3) of Regulation S-K:

 

During the quarter covered by this Report, there have not been any material changes to the procedures by which security holders may recommend nominees to the Board of Directors.

 

ITEM 6. EXHIBITS

 

(a) Exhibits

 

31.1		Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Principal Executive Officer and Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

	JS BEAUTY LAND NETWORK TECHNOLOGY INC.
	By:	/s/ Faxian Qian
	Title:	Chief Executive Officer, President, Chief Financial Officer

 

Dated: August 2, 2021