ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this Annual Report. Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.
Background
The Company was incorporated under the laws of the State of Nevada on February 24, 2021. Until April 2026, the Company’s primary focus has been on mineral property exploration.
Effective April 10, 2026, there occurred a change in control of the Company. On such date, Zhang Chengcheng acquired 5,000,000 shares of the Company’s common stock from the former control person, and was appointed the Sole Officer and Director of the Company.
Also effective April 10, 2026, the Company entered into the Letter of Intent to acquire Taizhou Sentian Sanitary Ware Co., Ltd. (Taizhou Sentian), a company owned by the Company’s Sole Officer and Director, Zhang Chengcheng. The Letter of Intent contemplates that the Company would issue a combination of common stock and a new series of preferred stock (the rights and preferences of which are to be determined) in the acquisition. The definitive agreement is expected to be completed by approximately May 31, 2026, following the completion of certain administrative actions required by applicable Chinese law, with a closing to occur shortly thereafter.
Taizhou Sentian was founded in 2008 and is based in Taizhou, Zhejiang Province, China (Yangtze River Delta), within a few miles of Taizhou Luqiao Airport and high-speed rail access and port access. Taizhou Sentian manufactures sanitary ware / bathroom fixtures, including shower panels, simple shower enclosures, garden/outdoor showers, faucets and shower columns. Taizhou Sentian conducts its operations in approximately 12,000 sq. meters of leased building space and employs approximately 100 staff. Taizhou Sentian website is located at cnsentian.com.
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It is the intention of the Board of Directors to change the Company’s plan of business, upon the successful completion of the Taizhou Sentian acquisition, of which there is no assurance.
The discussion below relates to the Company’s operating results and financial position prior to the April 2026 change in control. It is expected that future operating results of the Company will be significantly different than its historical operating results.
Results of Operations
As of February 28, 2026, we had deficit of $86,564. Our financial statements have been prepared assuming that we will continue as a going concern. 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.
Year ended February 28, 2026 compared to year ended February 28, 2025 .
Revenue . During the year ended February 28, 2026, the Company had $33,500 in revenue compared to $26,000 during the year ended February 28, 2025.
Operating Expenses . During the year ended February 28, 2026, we incurred total expenses and professional fees of $42,889 compared to $33,123 during the year ended February 28, 2025. General and administrative and professional fee expenses incurred generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting.
Net loss . Our net loss for the year ended February 28, 2026 was $9,389 compared to $7,123 for the year ended February 28, 2025.
Liquidity and Capital Resources
As at February 28, 2026 our total assets were $10,116 compared to $27,005 in total assets at February 28, 2025. As at February 28, 2026, our current liabilities were $60,280 compared to $67,780 as of February 28, 2025.
Stockholders’ deficit was $50,164 as of February 28, 2026 compared to stockholders’ equity of $40,775 as of February 28, 2025.
Cash Flows from Operating Activities . For the year ended February 28, 2026, net cash flows used in operating activities was $10,103 consisting of net loss of $9,389, decrease in prepaid expenses of $6,086, deferred revenue of $7,500 and depreciation expense of $700. For the year ended February 28, 2025, net cash flows used in operating activities was $1,390 consisting of net loss of $7,123, increase in prepaid expenses of $6,500, deferred revenue of $12,000 and depreciation expense of $233.
Cash Flows from Investing Activities . For the year ended February 28, 2026, net cash used in investing activities was $0 compared to $3,500 during the year ended February 28, 2025.
Cash Flows from Financing Activities . Cash flows provided by financing activities during the year ended February 28, 2026 were $0 compared to $22,070, consisting entirely of loan from shareholder for the year ended February 28, 2025.
Critical Accounting Policies and Estimates
Our significant accounting policies are described in Note 3 – Summary of Significant Accounting Policies to the financial statements included in this Annual Report. These policies are considered critical to understanding our financial condition and results of operations as they require significant management judgment and estimates in their application.
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Plan of Operation and Funding
We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. 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 expected to be adequate to fund our operations over the next six 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) developmental expenses associated with a start-up business and (ii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. 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.
Material Commitments
As of the date of this Annual Report, we do not have any material commitments.
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.
