Folkup Development Inc.

CIK:0001684506|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Revenue, net	$ 573,258	$ 410,187	$ 1,919,812	$ 1,704,935
Cost of revenue	(472,266)	(342,745)	(1,143,352)	(1,435,139)
Gross profit	100,992	67,442	776,460	269,796
Operating expenses:
Sales and marketing expenses	254,167	237,068	430,800	555,334
General and administrative expenses	589,325	234,823	1,178,415	641,661
Professional fee	919,300	14,188	985,192	173,442
Total operating expenses	1,762,792	486,079	2,594,407	1,370,437
Other (expense) income:
Gain on disposal of subsidiary			103,746
Sundry income	0	40,735	0	80,991
Interest income	2	0	6	6
Interest expenses	(48,207)	(37,456)	(134,439)	(39,845)
Total other (expenses) income	(48,205)	3,279	(30,687)	41,152
LOSS BEFORE INCOME TAXES	(1,710,005)	(415,358)	(1,848,634)	(1,059,489)
Income tax expense	(5,859)	0	(5,859)	0
NET LOSS	(1,715,864)	(415,358)	(1,854,493)	(1,059,489)
Less: Net loss attributable to non-controlling interests	(9,913)	(9,930)	(21,599)	(9,930)
Net loss attributable to stockholders of Folkup Development Inc.	$ (1,705,951)	$ (405,428)	$ (1,832,894)	$ (1,049,559)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (1,854,493)	$ (1,059,489)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation of plant and equipment	53,863	5,170
Depreciation of energy assets	24,204	0
Depreciation of right-of-use assets	75,581	53,714
Gain on disposal of a subsidiary	(103,746)	0
Non-cash lease expenses	3,491	2,699
Change in operating assets and liabilities:
Accounts and retention receivables	(1,080,354)	106,713
Deposits, prepayments and other receivables	629,057	(628,574)
Contract assets	(935,536)	(698,363)
Contract liabilities	2,370,105	732,729
Accounts payables	(405,022)	0
Accrued liabilities and other payables	104,819	768,329
Net cash used in operating activities	(1,118,031)	(717,072)
Cash flows from investing activities:
Purchases of plant and equipment	(367,496)	(5,634)
Purchases of energy assets	(189,400)	0
Purchases of long-term investments	(128,418)	0
Proceed from disposal of a subsidiary	451,753	0
Net cash used in investing activities	(233,561)	(5,634)
Cash flows from financing activities:
Advance from a director	625,932	(1,448)
Advance from related companies	109,856	0
Payment of lease liabilities	(78,791)	(55,684)
Proceed from borrowings	3,072,236	769,203
Repayment of borrowings	(616,169)	0
Net cash provided by financing activities	3,113,064	712,071
Effect on exchange rate change on cash and cash equivalents	6,550	(4,317)
Net change in cash and cash equivalents	1,768,022	(14,952)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	160,594	243,641
CASH AND CASH EQUIVALENTS, END OF PERIOD	1,928,616	228,689
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for tax	0	0
Cash paid for interest	$ 130,948	$ 39,845

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 1,928,616	$ 160,594
Accounts and retention receivables	1,163,523	83,169
Deposits, prepayments and other receivables	311,064	1,031,566
Purchase deposits	2,735,868	1,800,332
Total current assets	6,139,071	3,075,661
Non-current assets:
Energy assets	0	285,236
Long-term investment	458,601	0
Plant and equipment	380,730	64,161
Right-of-use assets	81,300	157,379
TOTAL ASSETS	7,059,702	3,582,437
Current liabilities:
Contract liabilities	4,528,479	2,158,374
Accounts payable	372,270	1,100,268
Accrued liabilities and other payables	234,212	129,393
Operating lease liabilities	34,738	88,537
Bank and other borrowings	1,961,272	588,279
Amounts due to related parties	1,561,117	825,329
Total current liabilities	8,692,088	4,890,180
Non-current liabilities:
Operating lease liabilities non current	46,960	68,961
Bank and other borrowings	1,590,557	180,662
TOTAL LIABILITIES	10,329,605	5,139,803
Commitments and contingencies	0	0
STOCKHOLDERS' DEFICIT
Common stock, $0.001 par value; 75,000,000 shares authorized; 9,800,000 shares issued and outstanding	9,800	9,800
Additional paid in capital	351,583	351,583
Accumulated other comprehensive loss	5,592	(7,120)
Accumulated deficit	(3,609,783)	(1,906,054)
Total deficit of Folkup Development Inc.	(3,242,808)	(1,551,791)
Non-controlling interest	(27,095)	(5,575)
Total deficit	(3,269,903)	(1,557,366)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 7,059,702	$ 3,582,437