RESULTS OF OPERATIONS

The following summary of our results of operations should be read in conjunction with our financial statements included elsewhere in this annual report.

As at August 31, 2019, the Company has a working capital deficit of $778,127 and has not yet established a stabilized source of revenue sufficient to cover operating cost for the foreseeable future. These factors, among others, may raise substantial doubt about the Company's ability to continue as a going concern.

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

Comparison of the years ended August 31, 2019 and, 2018





                                            Years Ended
                                            August 31,
                                        2019          2018         Change       %
Revenue                               $       -     $       -     $      -        -
General and administrative expenses     271,780       227,003       44,777       20 %
Net loss                              $ 271,780     $ 227,003     $ 44,777       20 %





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Our general and administrative expenses were $271,780 for the year ended August 31, 2019, with an increase of $44,777 as compared to $227,003 for the same period in 2018. The increase in general and administrative expenses was primarily due to increased company management fees, partially offset by decrease in payroll expenses.

Liquidity and Capital Resources





Working Capital



                             August 31,      August 31,
                                2019            2018           Change         %
Current assets               $    73,572     $    14,503     $   59,069       407 %
Current liabilities          $   851,699     $   521,003     $  330,696        63 %
Working capital deficiency   $  (778,127 )   $  (506,500 )   $ (271,627 )      54 %

The Company's current assets consists of cash and cash equivalents of $54,467 and prepaid expense of $19,105 at August 31, 2019, with an increase of $59,069 as compared to cash and cash equivalents of $2,503 and prepaid expense of $12,000 at August 31, 2018. The increase was primarily due to the positive cash flow in the year, as discussed in the section for cash flows below.

As at August 31, 2019, current liabilities consisted of accounts payable and accrued liabilities of $27,000 and due to a related party of $824,699, as compared to August 31, 2018, current liabilities consisted of accounts payable and accrued liabilities of $18,777 and due to a related party of $502,226. The increase in current liabilities of $330,696 is primarily due to the operating expenses paid by the related party.





Cash Flows



                                                   Years Ended
                                                    August 31,
                                                2019         2018         Change         %
Cash used in operating activities             $ (2,509 )   $ (91,835 )   $  89,326       (97 %)
Cash provided by financing activities           53,220             -        53,220       N/A
Effects on changes in foreign exchange rate      1,253         1,162            91         8 %

Net change in cash and cash equivalents $ 51,964 $ (90,673 ) $ 142,637 (157 %)

Cash Flow from Operating Activities

Cash flows used in operations was $2,509 during the year ended August 31, 2019, compared with cash flows used in operations of $91,832 during the same period in 2018. The decrease of $89,326 is mainly due to decrease in other creditors - related party, partially offset by increase in expenses paid by related party.

Cash Flow from Financing Activities

Cash flows provided by financing activities was $53,220 during the year ended August 31, 2019. It consists of advance from related party of $1,942,650, expenses paid for related party of $1,006,698 and repayment to related party of $882,732.

Plan of Operation and Funding

We expect that working capital requirements will continue to be funded through further issuances of our securities and loans from our executive officers and principal shareholders, including Joseph Ho. Our working capital requirements are expected to increase in line with the growth of our business.

Existing working capital, further advances and debt instruments, and anticipated cash flow are not expected to be adequate to fund our operations and potential acquisitions over the next twelve months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) the acquisition of businesses in the health-related industry; (ii) acquisition of inventory; (iii) developmental expenses associated with a start-up business; and (iv) marketing expenses. We intend to finance these expenses with further issuances of equity securities and debt instruments. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.






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We will also be sourcing funds from potential investors to finance purchases of raw materials needed to support our operations and surplus for potential buyers.

We believe our business plan will create a significant growth potential to the Company which would generate more than sufficient revenue and liquidity to sustain the Company for the next twelve months and a significant future growth.

Off-Balance Sheet Arrangements

As of the date of this Annual Report, 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, capital expenditures or capital resources that are material to investors.





Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.

As of August 31, 2019, the Company had an accumulated deficit of $889,870 and net loss of $271,780 for the year ended August 31, 2019. Losses have principally occurred as a result of the substantial resources required for general and administrative expenses associated with our operations. The continuation of the Company as a going concern is dependent upon the continued financial support from its stockholders or external financing. Management believes the existing stockholders will provide the additional cash to meet with the Company's obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.

These conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments to reflect the possible future effect on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of these uncertainties. Management believes that the actions presently being taken to obtain additional funding and implement its strategic plan provides the opportunity for the Company to continue as a going concern.

Critical Accounting Policies

We have identified the following policies below as critical to our business and results of operations. Our reported results are impacted by the application of the following accounting policies, certain of which require management to make subjective or complex judgments. These judgments involve making estimates about the effect of matters that are inherently uncertain and may significantly impact quarterly or annual results of operations. For all of these policies, management cautions that future events rarely develop exactly as expected, and the best estimates routinely require adjustment. Specific risks associated with these critical accounting policies are described in the following paragraphs.





Use of Estimates

The preparation of financial statements in conformity with U.S. 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 as well as the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Recent Accounting Pronouncements

Our company has implemented all new accounting pronouncements and does not believe that there are any other accounting pronouncements that have been issued that may have a material impact on its financial statements.

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