KAOPU GROUP INC

CIK:0001602706|SEC Filings

Consolidated Statements of Income and Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Income and Comprehensive Income
Revenues	$ 1,990,226	$ 1,945,781	$ 4,882,008	$ 5,663,288
Operating expenses:
Cost of revenues	1,579,773	1,317,927	3,637,978	3,932,666
General and administrative	321,851	337,617	1,105,654	1,112,549
Depreciation and amortization	7,792	31,940	26,198	74,236
Total operating expense	1,909,416	1,687,484	4,769,830	5,119,451
Income from operations	80,810	258,297	112,178	543,837
Other income:
Realized and unrealized investment gain (losses), net	23,946	1,479	64,217	(19,246)
Other (expense) income	(39,294)	(90,697)	19,320	32,773
Total other (expense) income	(15,348)	(89,218)	83,537	13,527
Income before provision for income taxes	65,462	169,079	195,715	557,364
Income tax expense	11,491	20,540	31,113	37,970
Net income	53,971	148,539	164,602	519,394
Other comprehensive income (loss):
Foreign currency translation loss	(10,332)	(20,906)	(10,159)	(8,107)
Total other comprehensive loss	(10,332)	(20,906)	(10,159)	(8,107)
Comprehensive income	$ 43,639	$ 127,633	$ 154,453	$ 511,287
Net income per common share:
Basic and diluted	$ 0.00	$ 0.01	$ 0.01	$ 0.02
Weighted average number of common shares outstanding:
Basic and diluted	30,500,000	30,500,000	30,500,000	30,500,000

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 164,602	$ 519,394
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	26,198	74,236
Investment (income) loss	(52,961)	18,950
Deferred income tax	3,798	(11,480)
Changes in operating assets and liabilities:
Accounts receivable	695,816	68,071
Income tax	(23,530)	27,956
Inventory	42,464	(22,152)
Prepaid expenses, other current assets and other assets	(39,962)	(20,745)
Trust investments, restricted	105,433	(394,919)
Deferred commission cost	49,122	4,073
Other assets		39,940
Accounts payable and accrued expenses	(914,210)	(703,213)
Accounts payable and accrued expenses - related parties	(11,913)	26,688
Deferred revenues	(2,093)	28,894
Other payable	0	45,505
Deferred preneed contract revenues	(213,368)	436,266
Net cash provided by (used in) operating activities	(170,604)	137,464
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(18,025)	(171,604)
Net cash used in investing activities	(18,025)	(171,604)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related parties	11,260	0
Payment on liability for land purchase	(18,270)	0
Dividends	(119,138)	0
Net cash used in financing activities	(126,148)	0
Effect of exchange rate changes on cash and cash equivalents	38,531	(42,056)
Net change in cash and cash equivalents	(276,246)	(76,196)
Cash and cash equivalents, beginning of period	508,988	564,561
Cash and cash equivalents, end of period	232,742	488,365
Cash paid for:
Interest	59,418	64,370
Income tax	$ 68,020	$ 37,012

Consolidated Balance Sheets - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 232,742	$ 508,988
Accounts receivable, net of allowance for doubtful accounts	243,920	939,736
Income tax receivable	0	2,507
Inventory	325,870	368,334
Prepaid expenses and other current assets	105,362	68,521
Total current assets	907,894	1,888,086
Property and equipment, net of accumulated depreciation	78,513	90,758
Deposit on purchase of land	2,005,918	2,049,797
Trust investments, restricted	6,503,600	6,556,072
Deferred commission cost	893,016	942,138
Deferred tax assets - noncurrent	173,615	177,413
Other assets	96,992	93,871
Total assets	10,659,548	11,798,135
Current liabilities:
Accounts payable and accrued expenses	672,486	1,578,865
Accounts payable and accrued expenses - related parties	254,582	266,495
Income tax payable	41,658	67,695
Deferred revenues - current	95,680	97,773
Other payable - land purchase	835,200	853,470
Other payable - related party	21,923	10,663
Other payables	42,268	50,099
Total current liabilities	1,963,797	2,925,060
Deferred preneed contract revenues	8,172,033	8,385,402
Total liabilities	10,135,830	11,310,462
Commitment and contingencies
Stockholders' Equity:
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 30,500,000 shares issued and outstanding	305	305
Additional paid-in capital	1,326,107	1,326,107
Legal capital reserve	97,608	97,608
Accumulated deficit	(897,771)	(943,235)
Accumulated other comprehensive loss	(2,531)	6,888
Total stockholders' equity	523,718	487,673
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 10,659,548	$ 11,798,135