The following information should be read in conjunction with (i) the financial
statements of Fovea Jewelry Holdings, Ltd., a Wyoming corporation (the
"Company"), and the notes thereto appearing elsewhere in this Form 10-Q together
with (ii) the more detailed business information and the December 31, 2020
audited financial statements and related notes included in the Company's Annual
Report on Form 10-K (File No. 000-56156; the "Form 10"), as filed with the
Securities and Exchange Commission on March 26, 2021. Statements in this section
and elsewhere in this Form 10-Q that are not statements of historical or current
fact constitute "forward-looking" statements.
OVERVIEW
The Company is incorporated in the State of Wyoming as a result of a
domestication from the State of Nevada on March 4, 2019, and has a fiscal year
end of December 31.
CRITICAL ACCOUNTING POLICIES
PLAN OF OPERATION
Our plan of operations over the next 12 month period is to continue developing
our website to have a fully functioning online store and sell our diamond
products.
Results of Operations
Comparison of the three months ended June 30, 2021and June 30, 2020
The following table sets forth certain operational data for the three months
ended June 30, 2021, compared to the three months ended June 30, 2020:
Three months ended June 30,
2021 2020
Revenue $ 305,286 $ 282,165
Cost of revenue (244,873 ) (245,176 )
Gross profit 60,413 36,989
Operating Expenses (10,807 ) (7,147 )
Income from operations 49,596 29,842
Income tax expense (3,590 ) 638
NET INCOME $ 46,006 $ 30,480
Revenue. We generated revenues of $305,286 and $282,165 for the three months
ended June 30, 2021 and 2020, respectively. The increase in revenue is
attributable to the increase in market demand.
Cost of Revenue. Cost of revenue for the three months ended June 30, 2021, was
$244,873, as compared to cost of revenue of $245,176 for the same period ended
June 30, 2020. Cost of revenue decreased primarily as a result of the decrease
in cost price.
Gross Profit. We achieved a gross profit of $60,413 and $36,989 for the three
months ended June 30, 2021, and 2020, respectively. The increase in gross profit
is primarily attributable to the increasing market demand.
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Operating Expenses. We incurred G&A expenses of $10,807 and $7,147 for the three
months ended June 30, 2021, and 2020, respectively. The increase in G&A is
primarily attributable to increase professional, administrative and other fees.
Income Tax Expense. Our income tax expenses for the three months ended June 30,
2021 was $3,590 and an income tax credit of $638 for the three months ended June
30, 2020.
Net Income. During the three months ended June 30, 2021, we incurred a net
income of $46,006, as compared to net income of $30,480 for the same period
ended June 30, 2020.
Comparison of the six months ended June 30, 2021and June 30, 2020
Six months ended June 30,
2021 2020
Revenue $ 468,173 $ 400,065
Cost of revenue (326,555 ) (333,123 )
Gross profit 141,618 66,942
Operating Expenses (19,326 ) (23,590 )
Income from operations 122,292 43,352
Income tax (expense) credit (9,428 ) 638
NET INCOME $ 112,864 $ 43,990
Revenue. We generated revenues of $468,173 and $400,065 for the six months ended
June 30, 2021 and 2020, respectively. The increase in revenue is attributable to
the increase in market demand.
Cost of Revenue. Cost of revenue for the six months ended June 30, 2021, was
$326,555, as compared to cost of revenue of $333,123 for the same period ended
June 30, 2020. Cost of revenue decreased primarily as a result of the decrease
in cost price.
Gross Profit. We achieved a gross profit of $141,618 and $66,942 for the six
months ended June 30, 2021, and 2020, respectively. The increase in gross profit
is primarily attributable to the increasing market demand.
Operating Expenses. We incurred G&A expenses of $19,326 and $23,5903 for the six
months ended June 30, 2021, and 2020, respectively. The decrease in G&A is
primarily attributable to decrease professional, administrative and other fees.
Income Tax Expense. Our income tax expenses for the six months ended June 30,
2021 was $9,428 and an income tax credit of $638 for the six months ended June
30, 2021.
Net Income. During the six months ended June 30, 2021, we incurred a net income
of $112,864, as compared to net income of $43,990 for the same period ended June
30, 2020.
Liquidity and Capital Resources
As of June 30, 2020, we had cash and cash equivalents of $697,347 and accounts
receivable of $254,347. As of December 31, 2020, we had cash and cash
equivalents of $832,151.
Six Months Ended June 30,
2021 2020
Net cash (used in) provided by operating activities $ (128,203 ) $ 34,576
Net cash used in investing activities
$ - $ -
Net cash provided by financing activities $ - $ -
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Net Cash (Used In) Provided By Operating Activities.
For the six months ended June 30, 2021, net cash used in operating activities
was $128,203 which consisted primarily of a net income of $112,864, an increase
in depreciation of property, plant and equipment of $3,865, an increase in
accounts receivable of $254,347, an increase in accrued expenses and other
payables of $10,06 and offset by a decrease in deferred tax liabilities of $645.
For the six months ended June 30, 2020, net cash provided by operating
activities was $34,576, which consisted primarily of a net income of $43,990, an
increase in depreciation of property, plant and equipment of $3,866 offset by a
decrease in accrued expenses and other payables of $12,642 and a decrease in
deferred tax liabilities of $638.
Net Cash Used In Investing Activities.
For the six months ended June 30, 2021 and 2020, net cash used in investing
activities was $0.
Net Cash Provided By Financing Activities.
For the six months ended June 30, 2021 and 2020, net cash provided by financing
activities was $0.
Off-Balance Sheet Arrangements
The Company has no off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on the financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to stockholders.
Subsequent Events
None through the date of this filing.
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