WEB NEWS Comments & Business Outlook
Three months ended
March 31,
2016
2015
Revenues
Sales
$
16,466
$
3,560
Cost of sales
16,466
4,165
Gross margin
-
(605
)
Operating expenses
General and administrative expenses
103,486
139,143
103,486
139,143
Loss from operations
(103,486
)
(139,748
)
Other income (expense)
Interest income
7
19
Other income (expense)
25,273
-
Transaction exchange gain
(2,828
)
1,322
Interest expense
(5,860
)
-
16,592
1,341
Loss before income tax expense and noncontrolling interest
(86,894
)
(138,407
)
Income tax expense
-
-
Net loss
(86,894
)
(138,407
)
Less: Net loss attributable to noncontrolling interest
7,517
7,415
Net loss attributable to China Longyi
$
(79,377
)
$
(130,992
)
Basic and diluted loss per share
$
(0.00
)
$
(0.00
)
Weighted average number of shares outstanding-basic and diluted
77,655,862
77,655,862
Comprehensive loss
Net loss
$
(86,894
)
$
(138,407
)
Foreign currency translation adjustment
(1,506
)
424
Comprehensive loss
(88,400
)
(137,983
)
Comprehensive loss attributable to noncontrolling interest
(8,244
)
(6,815
)
Comprehensive loss attributable to China Longyi
$
(80,156
)
$
(131,168
)
Comments & Business Outlook
CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Twelve months ended
December 31,
2015
2014
Revenues
Sales
$
160,349
$
107,566
Cost of sales
236,725
192,027
Gross margin
(76,376
)
(84,461
)
Operating expenses
General and administrative expenses
516,912
486,758
Goodwill impairment loss
Write-off inventory and bus licenses
Research and development costs
-
-
516,912
486,758
Loss from operations
(593,288
)
(571,219
)
Other income (expense)
Interest income
64
60
Other income (expense)
236,748
179,826
Transaction exchange gain
(14,110
)
(5,042
)
Gain on asset disposal
Gain on debt settlement
Gain on disposal subsidiary
Interest expense
222,702
174,844
noncontrolling interest
(370,586
)
(396,375
)
Income tax expense
-
-
Net loss
(370,586
)
(396,375
)
Less: Net loss attributable to noncontrolling interest
27,854
29,140
Net loss attributable to China Longyi
$
(342,732
)
$
(367,235
)
Basic and diluted loss per share
$
(0.00
)
$
(0.00
)
Weighted average number of
77,655,862
77,655,862
Comprehensive loss
Net loss
$
(370,586
)
$
(396,375
)
Foreign currency translation adjustment
49,252
4,215
Comprehensive loss
(321,334
)
(392,160
)
Comprehensive loss attributable to noncontrolling interest
(20,446
)
(28,964
)
Comprehensive loss attributable to China Longyi
$
(300,888
)
$
(363,196
)
Auditor trail
ITEM 4.01 CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT.
(a) Dismissal of Previous Independent Registered Public Accounting Firm.
(i) On April 7, 2016, China Longyi Group International Holdings Limited (the “Company”) dismissed its independent registered public accounting firm, Tao Su, CPA (“Tao Su”). The dismissal of Tao Su was approved by the board of directors of the Company.
(b) Engagement of New Independent Registered Public Accounting Firm
On April 7, 2016, concurrent with the dismissal of Tao Su, the Company, upon the board of directors’ approval, engaged Anton & Chia LLP. (“Anton & Chia”) as its new independent registered public accounting firm to audit and review the Company’s financial statements effective immediately.
During the Company’s two most recent fiscal years ended December 31, 2015 and 2014 and through the subsequent interim period to April 7, 2016, the Company did not consult Anton & Chia with respect to (a) the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that might be rendered on the Company’s consolidated financial statements, and neither a written report was provided to the Company or oral advice was provided that Anton & Chia concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or (b) any matter that was the subject of either a disagreement as defined in Item 304(a)(1)(iv) of Regulation S-K or a reportable event as described in Item 304(a)(1)(v) of Regulation S-K.
Comments & Business Outlook
CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
Three months ended
Nine months ended
September 30,
September 30,
2015
2014
2015
2014
Revenues
Sales
$
153,976
-
$
163,119
-
Cost of sales
185,308
-
206,167
-
Gross margin
(31,332
)
-
(43,048
)
-
Operating expenses
General and administrative expenses
121,637
105,066
363,965
367,795
Goodwill impairment loss
-
-
-
-
Write-off inventory and bus licenses
-
-
-
-
Research and development costs
-
-
-
121,637
105,066
363,965
367,795
Loss from operations
(152,969
)
(105,066
)
(407,013
)
(367,795
)
Other income (expense)
Interest income
6
9
55
16
Other income (expense)
179,750
1,730
193,710
5,202
Transaction exchange gain
(10,089
)
(14,988
)
(4,786
)
(15,900
)
Gain on asset disposal
-
-
-
-
Gain on debt settlement
-
-
-
-
Gain on disposal subsidiary
-
-
-
-
Interest expense
-
-
-
169,667
(13,249
)
188,979
(10,682
)
Loss before income tax expense and noncontrolling interest
16,698
(118,315
)
(218,034
)
(378,477
)
Income tax expense
-
-
-
-
Net loss
16,698
(118,315
)
(218,034
)
(378,477
)
Less: Net loss attributable to noncontrolling interest
(1,789
)
8,151
13,485
23,789
Net loss attributable to China Longyi
$
14,909
$
(110,164
)
$
(204,549
)
$
(354,688
)
Basic and diluted loss per share
$
0.00
$
(0.00
)
$
(0.00
)
$
(0.00
)
Weighted average number of shares outstanding-basic and diluted
77,655,862
77,655,862
77,655,862
77,655,862
Comprehensive loss
Net loss
$
16,698
$
(118,315
)
$
(218,034
)
$
(378,477
)
Foreign currency translation adjustment
32,528
26,938
26,106
17,642
Comprehensive loss
49,226
(91,377
)
(191,928
)
(360,835
)
Comprehensive loss attributable to noncontrolling interest
6,352
(8,151
)
(8,950
)
(23,037
)
Comprehensive loss attributable to China Longyi
$
42,874
$
(83,226
)
$
(182,978
)
$
(337,798
)
Management Discussion and Analysis
Revenues. Our revenues were historically derived primarily from sales of our SOD products. Revenues increased $153,976, to $153,976 for the three months ended September 30, 2015, from $0 for the same period in 2014. The increase in revenues was due to SOD products being sold in 2015 as compared with the same period of 2014. During the third quarter of 2015, we sold SOD Fruit Enzymes produced in our Henan Tian Jie Shan factory while during the same period of 2014 we did not sell any products.
Net Income (Loss) attributable to China Longyi. As a result of above facts, our net income increased by $125,073, or 113.53%, to $14,909 for the three months ended September 30, 2015, from a net loss of $(110,164) for the same period in 2014.
Comments & Business Outlook
CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
Six months ended
Three months ended
June 30,
June 30,
2015
2014
2015
2014
Revenues
Sales
$
9,143
$
-
$
5,583
$
-
Cost of sales
10,697
-
6,532
-
Gross margin
(1,554
)
-
(949
)
-
Operating expenses
General and administrative expenses
242,328
262,729
103,185
134,152
Goodwill impairment loss
-
-
-
-
Write-off inventory and bus licenses
-
-
-
-
Research and development costs
-
-
-
-
242,328
262,729
103,185
134,152
Loss from operations
(243,882
)
(262,729
)
(104,134
)
(134,152
)
Other income (expense)
Interest income
49
7
30
3
Other income (expense)
13,960
3,472
13,960
629
Transaction exchange gain
5,303
(912
)
3,981
7,196
Gain on asset disposal
-
-
-
-
Gain on debt settlement
-
-
-
-
Gain on disposal subsidiary
-
-
-
-
Interest expense
-
-
-
-
19,312
2,567
17,971
7,828
Loss before income tax expense and noncontrolling interest
(224,570
)
(260,162
)
(86,163
)
(126,324
)
Income tax expense
-
-
-
-
Net loss
(224,570
)
(260,162
)
(86,163
)
(126,324
)
Less: Net loss attributable to noncontrolling interest
15,274
15,638
7,859
8,184
Net loss attributable to China Longyi
$
(209,296
)
$
(244,524
)
$
(78,304
)
$
(118,140
)
Basic and diluted loss per share
$
(0.00
)
$
(0.00
)
$
(0.00
)
$
(0.00
)
Weighted average number of shares outstanding-basic and diluted
77,655,862
77,655,862
77,655,862
77,655,862
Comprehensive loss
Net loss
$
(224,570
)
$
(260,162
)
$
(86,163
)
$
(126,324
)
Foreign currency translation adjustment
(6,422
)
2,443
2,874
11,739
Comprehensive loss
(230,992
)
(257,719
)
(83,289
)
(114,585
)
Comprehensive loss attributable to noncontrolling interest
(15,302
)
(14,876
)
(7,859
)
(8,184
)
Comprehensive loss attributable to China Longyi
$
(215,690
)
$
(242,843
)
$
(75,430
)
$
(106,401
)
Management Discussion and Analysis
Revenues. Our revenues were historically derived primarily from sales of our SOD products. Revenues increased $5,583, to $5,583 for the three months ended June 30, 2015, from $0 for the same period in 2014. The increase in revenues was due to more SOD products being sold in 2015 as compare with same period of 2014. During the second quarter of 2015, we sold SOD Fruit Enzymes produced in our Guizhou Tian Jieshan factory as compared with the same period of 2014, in which we did not sell any products.
Net Loss attributable to China Longyi. As a result of above facts, our net loss decreased by $39,836, or 33.72%, to $(78,304) for the three months ended June 30, 2015, from $(118,140) for the same period in 2014.
Comments & Business Outlook
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
Three months ended
March 31,
2015
2014
Revenues
Sales
$
3,560
$
-
Cost of sales
4,165
-
Gross margin
(605
)
-
Operating expenses
General and administrative expenses
139,143
128,577
139,143
128,577
Loss from operations
(139,748
)
(128,577
)
Other income (expense)
Interest income
19
4
Other income (expense)
-
2,843
Transaction exchange gain
1,322
(8,108
)
1,341
(5,261
)
Loss before income tax expense and noncontrolling interest
(138,407
)
(133,838
)
Income tax expense
-
-
Net loss
(138,407
)
(133,838
)
Less: Net loss attributable to noncontrolling
7,415
7,454
Net loss attributable to China Longyi
$
(130,992
)
$
(126,384
)
Basic and diluted loss per share
$
(0.00
)
$
(0.00
)
Weighted average number of shares outstanding-basic and diluted
77,655,862
77,655,862
Comprehensive loss
Net loss
$
(138,407
)
$
(133,838
)
Foreign currency translation adjustment
424
9,830
Comprehensive loss
(137,983
)
(124,008
)
Comprehensive loss attributable to noncontrolling interest
(6,815
)
(8,289
)
Comprehensive loss attributable to China Longyi
$
(131,168
)
$
(115,719
)
Management Discussion and Analysis
Revenues. Our revenues were historically derived primarily from sales of our SOD products. Revenues increased $3,560, to $3,560 for the three months ended March 31, 2015, from $0 for the same period in 2014.The increase in revenues was due to more SOD products sold in the first quarter of 2015 as compare with same period of 2014. We produced SOD Fruit Enzymes as our new product in Guizhou, and we built the new factory in Tian Jieshan of Guizhou. During the spring festival of 2015, we held promotion events in order to introduce new SOD products, and sold some new products to our selected customers at a price that we believe competitive.
Net Loss attributable to China Longyi. As a result of above facts, our net loss increased by $4,608, or 3.65%, to $130,992 for the three months ended March 31, 2015, from $(126,384) for the same period in 2014.
Comments & Business Outlook
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (A DEVELOPMENT STAGE COMPANY)
Nine months ended
Three months ended
Period from Jun 4,1997
September 30,
September 30,
(inception) to
2014
2013
2014
2013
September 30, 2014
Revenues
Sales
$
-
$
11,095
$
-
$
680
$
1,027,204
Cost of sales
-
7,409
-
406
$
1,040,259
Gross margin
-
3,686
-
274
$
(13,055
)
Operating expenses
General and administrative expenses
367,795
366,165
105,066
99,751
$
19,571,638
Goodwill impairment loss
-
-
-
-
$
5,408,584
Write-off inventory and bus licenses
-
-
-
-
$
3,322,712
Research and development costs
-
-
-
$
8,880,206
367,795
366,165
105,066
99,751
$
37,183,140
Loss from operations
(367,795
)
(362,479
)
(105,066
)
(99,477
)
$
(37,196,195
)
Other income (expense)
Interest income
16
23
9
(8
)
$
325,703
Other income (expense)
5,202
-
1,730
-
$
1,253,413
Transaction exchange gain
(15,900
)
21,404
(14,988
)
1,738
$
1,073,983
Gain on asset disposal
-
-
-
-
$
1,172
Gain on debt settlement
-
-
-
-
$
156,018
Gain on disposal subsidiary
-
-
-
-
$
4,093,455
Interest expense
-
-
-
$
(712,302
)
(10,682
)
21,427
(13,249
)
1,730
$
6,191,442
Loss before income tax expense and noncontrolling interest
(378,477
)
(341,052
)
(118,315
)
(97,747
)
$
(31,004,753
)
Income tax expense
-
-
-
-
$
-
Net loss
(378,477
)
(341,052
)
(118,315
)
(97,747
)
$
(31,004,753
)
Less: Net loss attributable to noncontrolling interest
23,789
28,912
8,151
(9,563
)
$
363,125
Net loss attributable to China Longyi
$
(354,688
)
$
(312,140
)
$
(110,164
)
$
(107,310
)
$
(30,641,628
)
Basic and diluted loss per share
$
(0.00
)
$
(0.00
)
$
(0.00
)
$
(0.00
)
Weighted average number of shares outstanding-basic and diluted
77,655,862
77,655,862
77,655,862
77,655,862
Comprehensive loss
Net loss
$
(378,477
)
$
(341,052
)
$
(118,315
)
$
(97,747
)
$
(31,004,753
)
Foreign currency translation adjustment
17,642
(18,465
)
26,938
(1,791
)
Comprehensive loss
(360,835
)
(359,517
)
(91,377
)
(99,538
)
Comprehensive loss attributable to noncontrolling interest
(23,037
)
(29,903
)
(8,151
)
(9,760
)
Comprehensive loss attributable to China Longyi
$
(337,798
)
$
(329,614
)
$
(83,226
)
$
(89,778
)
Management Discussion and Analysis
Revenues. Our revenues were historically derived primarily from sales of our SOD products. Revenues decreased $680, to $0 for the three months ended September 30, 2014, from $680 for the same period in 2013 as we did not sell any SOD products and our operating subsidiary, Chongqing SOD, ceased production and was in the process of the relocation.
Net Loss attributable to China Longyi. As a result of above facts, our net loss increased by $2,854, or 2.66%, to $(110,164) for the three months ended September 30, 2014, from $(107,310) for the same period in 2013.
Comments & Business Outlook
Six months ended
Three months ended
June 4,1997
June 30,
June 30,
(inception) to
2014
2013
2014
2013
June 30, 2014
Revenues
Sales
$
-
$
10,415
$
-
$
815
$
1,027,204
Cost of sales
-
7,003
-
275
$
1,040,259
Gross margin
-
3,412
-
540
$
(13,055
)
Operating expenses
General and administrative expenses
262,729
266,414
134,152
167,752
$
19,466,572
Goodwill impairment loss
-
-
-
-
$
5,408,584
Write-off inventory and bus licenses
-
-
-
-
$
3,322,712
Research and development costs
-
-
-
$
8,880,206
262,729
266,414
134,152
167,752
$
37,078,074
Loss from operations
(262,729
)
(263,002
)
(134,152
)
(167,212
)
$
(37,091,129
)
Other income (expense)
Interest income
7
15
3
(9
)
$
325,694
Other income (expense)
3,472
-
629
-
$
1,251,683
Transaction exchange gain
(912
)
19,666
7,196
34,289
$
1,088,971
Gain on asset disposal
-
-
-
-
$
1,172
Gain on debt settlement
-
-
-
-
$
156,018
Gain on disposal subsidiary
-
-
-
-
$
4,093,455
Interest expense
-
-
-
$
(712,302
)
2,567
19,681
7,828
34,280
$
6,204,691
Loss before income tax expense and noncontrolling interest
(260,162
)
(243,321
)
(126,324
)
(132,932
)
$
(30,886,438
)
Income tax expense
-
-
-
-
$
-
Net loss
(260,162
)
(243,321
)
(126,324
)
(132,932
)
$
(30,886,438
)
Less: Net loss attributable to noncontrolling
15,638
19,349
8,184
29,531
$
354,974
Net loss attributable to China Longyi
$
(244,524
)
$
(223,972
)
$
(118,140
)
$
(103,401
)
$
(30,531,464
)
Basic and diluted loss per share
$
(0.00
)
$
(0.00
)
$
(0.00
)
$
(0.00
)
Weighted average number of shares outstanding-basic and diluted
77,655,862
77,655,862
77,655,862
77,655,862
Comprehensive loss
Net loss
$
(260,162
)
$
(243,321
)
$
(126,324
)
$
(132,932
)
$
(30,886,438
)
Foreign currency translation adjustment
2,443
(16,688
)
11,739
(7,392
)
Comprehensive loss
(257,719
)
(260,009
)
(114,585
)
(140,324
)
Comprehensive loss attributable to noncontrolling interest
(14,876
)
(20,143
)
(8,184
)
(29,531
)
Comprehensive loss attributable to China Longyi
$
(242,843
)
$
(239,866
)
$
(106,401
)
$
(110,793
)
Management Discussion and Analysis
Revenues. Our revenues were historically derived primarily from sales of our SOD products. Revenues decreased $815, to $0 for the three months ended June 30, 2014, from $815 for the same period in 2013 as we did not sell any SOD products and our operating subsidiary, Chongqing SOD, ceased production and was in the process of the relocation.
Net Loss attributable to China Longyi. As a result of above factors, our net loss increased by $14,739, or 14.25%, to $(118,140) for the three months ended June 30, 2014, from $(103,401) for the same period in 2013.
Comments & Business Outlook
Three months ended
Period from June 4,1997
March 31,
(inception) to
2014
2013
March 31, 2014
Revenues
Sales
$
-
$
9,600
$
1,027,204
Cost of sales
-
6,728
$
1,040,259
Gross margin
-
2,872
$
(13,055
)
Operating expenses
General and administrative expenses
128,577
98,662
$
19,332,420
Goodwill impairment loss
-
-
$
5,408,584
Write-off inventory and bus licenses
-
-
$
3,322,712
Research and development costs
-
-
$
8,880,206
128,577
98,662
$
36,943,922
Loss from operations
(128,577
)
(95,790
)
$
(36,956,977
)
Other income (expense)
Interest income
4
6
$
325,691
Other income (expense)
2,843
-
$
1,251,054
Transaction exchange gain
(8,108
)
(14,623
)
$
1,081,775
Gain on asset disposal
-
-
$
1,172
Gain on debt settlement
-
-
$
156,018
Gain on disposal subsidiary
-
-
$
4,093,455
Interest expense
-
-
$
(712,302
)
(5,261
)
(14,617
)
$
6,196,863
Loss before income tax expense and noncontrolling interest
(133,838
)
(110,407
)
$
(30,760,114
)
Income tax expense
-
-
$
-
Net loss
(133,838
)
(110,407
)
$
(30,760,114
)
Less: Net loss attributable to noncontrolling
7,454
8,876
$
346,790
Net loss attributable to China Longyi
$
(126,384
)
$
(101,531
)
$
(30,413,324
)
Basic and diluted loss per share
$
(0.00
)
$
(0.00
)
Weighted average number of shares outstanding-basic and diluted
77,655,862
77,655,862
Comprehensive loss
Net loss
$
(133,838
)
$
(110,407
)
$
(30,760,114
)
Foreign currency translation adjustment
9,830
15,522
Comprehensive loss
(124,008
)
(94,885
)
Comprehensive loss attributable to noncontrolling interest
(8,289
)
(8,970
)
Comprehensive loss attributable to China Longyi
$
(115,719
)
$
(85,915
)
Management Discussion and Analysis
Revenues. Our revenues were historically derived primarily from sales of our SOD products. Revenues decreased $9,600, to $0 for the three months ended March 31, 2014, from $9,600 for the same period in 2013 as we did not sell any SOD products and our operating subsidiary, Chongqing SOD, ceased production and was in the process of the relocation.
Net Loss attributable to China Longyi. As a result of above facts, our net loss increased by $24,853, or 24.48%, to $(126,384) for the three months ended March 31, 2014, from $(101,531) for the same period in 2013.
Comments & Business Outlook
Twelve months ended
Period from June 4, 1997
December 31,
(inception) to
2013
2012
December 31, 2013
Revenues
Sales
$
58,380
$
256,304
$
1,027,204
Cost of sales
48,086
123,388
$
1,040,259
Gross margin
10,294
132,916
$
(13,055
)
Operating expenses
General and administrative expenses
583,410
680,933
$
19,203,843
Goodwill impairment loss
-
-
$
5,408,584
Write-off inventory and bus licenses
-
-
$
3,322,712
Research and development costs
-
-
$
8,880,206
583,410
680,933
$
36,815,345
Loss from operations
(573,116
)
(548,017
)
$
(36,828,400
)
Other income (expense)
Interest income
27
1,106
$
325,687
Other income (expense)
84,104
94,545
$
1,248,211
Transaction exchange gain
12,824
30,860
$
1,089,883
Gain on asset disposal
-
-
$
1,172
Gain on debt settlement
-
-
$
156,018
Gain on disposal subsidiary
-
-
$
4,093,455
Interest expense
-
-
$
(712,302
)
96,955
126,511
$
6,202,124
Loss before income tax expense and noncontrolling interest
(476,161
)
(421,506
)
$
(30,626,276
)
Income tax expense
-
-
$
-
Net loss
(476,161
)
(421,506
)
$
(30,626,276
)
Less: Net loss attributable to noncontrolling interest
48,230
49,607
$
339,336
Net loss attributable to China Longyi
$
(427,931
)
$
(371,899
)
$
(30,286,940
)
Basic and diluted loss per share
$
(0.01
)
$
(0.00
)
Weighted average number of shares outstanding-basic and diluted
77,655,862
77,655,862
Comprehensive loss
Net loss
$
(476,161
)
$
(421,506
)
(30,626,276
)
Foreign currency translation adjustment
(10,889
)
(26,956
)
Comprehensive loss
(487,050
)
(448,462
)
Comprehensive loss attributable to noncontrolling interest
(49,909
)
(49,770
)
Comprehensive loss attributable to China Longyi
$
(437,141
)
$
(398,692
)
Management Discussion and Analysis
Results of Operations
We are a development stage company. We have only generated limited revenues from our operations since our inception. Before November 12, 2007, we had limited operations and our purpose was to acquire an operating business or the valuable assets of an unidentified company. As a result of the acquisition of Top Time, we changed our business to the development, manufacture and sale of SOD products.
Revenue
Our revenues are derived primarily from sales of our SOD products. Our revenues in fiscal year 2013 amounted to $58,380, which is $197,924 or approximately 77.22% less than that of fiscal year 2012, when we had revenues of $256,304. The decrease in revenues was attributable to fewer products being sold as compared with 2012, which was due to the suspension of our SOD products producing as we are relocating to another region as requested by the government.
Net Income.
As a result of the factors described above, our net loss increased $54,655, or 12.97%, to $(476,161) for the year ended December 31, 2013, from $(421,506) for 2012.
Comments & Business Outlook
Six months ended
Three months ended
Period From
June 30,
June 30,
(inception) to
2013
2012
2013
2012
June 30, 2013
Revenues
Sales
$
10,415
$
5,673
$
815
$
2,025
$
979,239
Cost of sales
7,003
4,067
275
1,359
$
999,176
Gross margin
3,412
1,606
540
666
$
(19,937
)
Operating expenses
General and administrative expenses
266,414
228,842
167,752
146,017
$
18,886,847
Goodwill impairment loss
-
-
-
-
$
5,408,584
Write-off inventory and bus licenses
-
-
-
-
$
3,322,712
Research and development costs
-
-
-
$
8,880,206
266,414
228,842
167,752
146,017
$
36,498,349
Loss from operations
(263,002
)
(227,236
)
(167,212
)
(145,351
)
$
(36,518,286
)
Other income (expense)
Interest income
15
923
(9
)
58
$
325,675
Other income (expense)
-
67
-
-
$
1,164,107
Transaction exchange gain
19,666
17,683
34,289
7,974
$
1,096,725
Gain on asset disposal
-
-
-
-
$
1,172
Gain on debt settlement
-
-
-
-
$
156,018
Gain on disposal subsidiary
-
-
-
-
$
4,093,455
Interest expense
-
-
-
$
(712,302
)
19,681
18,673
34,280
8,032
$
6,124,850
Loss before income tax expense and
)
)
)
)
)
Income tax expense
-
-
-
-
$
-
Net loss
(243,321
)
(208,563
)
(132,932
)
(137,319
)
$
(30,393,436
)
Less: Net loss attributable to noncontrolling
Net loss attributable to China Longyi
$
(223,972
)
$
(170,484
)
$
(103,401
)
$
(107,788
)
$
(30,082,981
)
Basic and diluted loss per share
$
(0.00
)
$
(0.00
)
$
(0.00
)
$
(0.00
)
Weighted average number
Comprehensive loss
Net loss
$
(243,321
)
$
(208,563
)
$
(132,932
)
$
(137,319
)
$
(30,393,436
)
Foreign currency translation adjustment
(16,688
)
(20,181
)
(7,392
)
(10,885
)
Comprehensive loss
(260,009
)
(228,744
)
(140,324
)
(148,204
)
Comprehensive loss attributable to
)
)
)
)
Comprehensive loss attributable to China
)
)
)
)
