UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-Q





xQUARTERLY REPORT UNDER
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the
quarterly period ended March 31,
2009




oTRANSITION REPORT UNDER
SECTION 13 OR 15(d) OF THE EXCHANGE ACT


For the
transition period from _____________________ to ______________





Commission
file number 000-50903





FLURIDA
GROUP, INC.


((Exact name of
registrant as specified in its charter)





Nevada
                
                3469
                
                26-0688130(State or other jurisdiction of
                  incorporation or organization)
                
                (Primary Standard
                  Industrial Classification
                  Code Number)
                
                IRS I.D.





800
      West Fifth Avenue, Suite 210B
                Naperville,
      IL
              
              60563(Address
      of principal executive offices)
              
              (Zip
      Code)





Issuer’s
telephone number:  630-778-8519





N/A


(Former
name, former address and former three months, if changed since last
report)





Check
whether the issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.


Yes x  No  ̈





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.





Large
      accelerated filer
                        
                         ̈
                        
                        Accelerated
      filer
                        
                         ̈Non-accelerated
      filer
                        
                         ̈
                        
                        Smaller
      Reporting Company
                        
                        x





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).


Yes ̈Nox





As of May
22, 2009 there were 38,990,827 shares issued and outstanding of the registrant’s
common stock.














INDEX





PART
      I — FINANCIAL INFORMATION
                3Item
      1.
                Financial
      Statements.
                3Item
      2.
                Management’s
      Discussion and Analysis or Plan of Operation.
                24Item
      3.
                Quantitative
      and Qualitative Disclosure about Market Risk
                28Item
      4.
                Controls
      and Procedures.
                28PART
      II — OTHER INFORMATION
                28Item
      1.
                Legal
      Proceedings.
                28Item
      2.
                Unregistered
      Sales of Equity Securities and Use of Proceeds.
                28Item
      3.
                Defaults
      Upon Senior Securities
                28Item
      4.
                Submission
      of Matters to a Vote of Security Holders.
                28Item
      5.
                Other
      Information.
                28Item
      6.
                Exhibits.
                29






2





PART
I — FINANCIAL INFORMATION





Item
      1.
            Financial
      Statements.





FLURIDA
GROUP, INC.


(A
Development Stage Enterprise)





Financial
Statements


(Unaudited)





As
of March 31, 2009, 2008, and 2007





Table
of Contents





Condensed
      Consolidated Balance Sheets
                5Condensed
      Consolidated Statement of Operation
                6Condensed
      Consolidated Shareholders Equity
                7Condensed
      Consolidated Statement of Cash Flows
                8Notes
      to Condensed Consolidated Financial Statements
                9


4





FLURIDA
GROUP, INC.


(A
Development Stage Enterprise)


CONSOLIDATED
BALANCE SHEETS





March 31
                  
                  
                  December312009
                  
                  
                  2008(Unaudited)ASSETSCurrent
      assets:Cash
      and cash equivalents
                  
                  $
                  389,006
                  
                  
                  $
                  605,932Accounts
      receivable, net
                  
                  
                  811,452
                  
                  
                  
                  479,431Inventory
                  
                  
                  1,045,066
                  
                  
                  
                  646,594Total
      Current Assets
                  
                  $
                  2,245,524
                  
                  
                  $
                  1,731,957Property,
      plant and equipment, net
                  
                  $
                  —
                  
                  
                  $
                  —TOTAL
      ASSETS
                  
                  $
                  2,245,524
                  
                  
                  $
                  1,731,957LIABILITIES
      & EQUITYCurrent
      liabilities:Loans
      from shareholders
                  
                  
                  —
                  
                  
                  
                  —Account
      Payable
                  
                  
                  1,204,725
                  
                  
                  $
                  626,868Credit
      Card Payable
                  
                  
                  638
                  
                  
                  
                  1,269Total
      Current Liabilities
                  
                  $
                  1,205,362
                  
                  
                  $
                  628,137Stockholders'
      Equity:Common
      stock, $0.001 par value;200,000,000
      shares authorized;38,990,827
      shares issued and outstanding.
                  
                  $
                  38,991
                  
                  
                  $
                  38,991Paid-in
      capital
                  
                  $
                  1,221,613
                  
                  
                  $
                  1,221,613Deficit
      accumulated during the development stage
                  
                  
                  (235,467
                  )
                  
                  
                  (186,255
                  )Accumulated
      other comprehensive Income(Loss)
                  
                  
                  15,024
                  
                  
                  
                  29,471Total
      stockholders' equity
                  
                  $
                  1,040,161
                  
                  
                  $
                  1,103,820TOTAL
      LIABILITIES & EQUITY
                  
                  $
                  2,245,524
                  
                  
                  $
                  1,731,957


5





FLURIDA
GROUP, INC.


(A
Development Stage Enterprise)


CONSOLIDATED
STATEMENT OF LOSS




Cumulative
      fromDecember
      19, 2006Three
                    
                    
                    Three
                    
                    
                    Three
                    
                    
                    (Date
      of Inception)Months
      Ended
                    
                    
                    Months
      Ended
                    
                    
                    Months
      Ended
                    
                    
                    ThroughMarch
      31
                    
                    
                    March
      31
                    
                    
                    March
      31
                    
                    
                    March
      31,2009
                    
                    
                    2008
                    
                    
                    2007
                    
                    
                    2009Revenues:
                    
                    $
                    1,504,324
                    
                    
                    $
                    —
                    
                    
                    $
                    —
                    
                    
                    $
                    3,048,191Cost
      of Goods Sold
                    
                    $
                    1,416,293
                    
                    
                    $
                    —
                    
                    
                    $
                    —
                    
                    
                    $
                    2,881,085Gross
      Profit
                    
                    $
                    88,030
                    
                    
                    $
                    —
                    
                    
                    $
                    —
                    
                    
                    $
                    167,105Operating
      expenses:Research
      and development
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —Selling,
      general and administrative expenses
                    
                    
                    137,738
                    
                    
                    
                    105,118
                    
                    
                    
                    —
                    
                    
                    
                    421,461Depreciation
      and amortization expenses
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —Total
      Operating Expenses
                    
                    
                    137,738
                    
                    
                    
                    105,118
                    
                    
                    
                    —
                    
                    
                    
                    421,461Operating
      Loss
                    
                    $
                    (49,708
                    )
                    
                    $
                    (105,118
                    )
                    
                    $
                    —
                    
                    
                    $
                    (254,356
                    )Investment
      income, net
                    
                    $
                    496
                    
                    
                    $
                    2,423
                    
                    
                    $
                    —
                    
                    
                    $
                    19,514Interest
      Expense, net
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    $
                    625Loss
      before taxes
                    
                    $
                    (49,212
                    )
                    
                    $
                    (102,695
                    )
                    
                    $
                    —
                    
                    
                    $
                    (235,467
                    )Loss
      tax expense
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    $
                    —Net
      Loss
                    
                    $
                    (49,212
                    )
                    
                    $
                    (102,695
                    )
                    
                    $
                    —
                    
                    
                    $
                    (235,467
                    )Net
      Loss per common share-Basics
                    
                    $
                    (0.00
                    )
                    
                    $
                    (0.00
                    )
                    
                    $
                    —
                    
                    
                    $
                    (0.01
                    )Net
      Loss per common share-Diluted
                    
                    $
                    (0.00
                    )
                    
                    $
                    (0.00
                    )
                    
                    $
                    —
                    
                    
                    $
                    (0.01
                    )Other
      comprehensive Income(Loss), net of tax:Foreign
      currency translation adjustments
                    
                    
                    (14,447
                    )
                    
                    
                    7,095
                    
                    
                    
                    —
                    
                    
                    
                    15,024Total
      other comprehensive Income(Loss)
                    
                    $
                    (14,447
                    )
                    
                    $
                    7,095
                    
                    
                    $
                    —
                    
                    
                    $
                    15,024Comprehensive
      Loss
                    
                    $
                    (63,659
                    )
                    
                    $
                    (95,600
                    )
                    
                    $
                    —
                    
                    
                    $
                    (220,443
                    )
 6





FLURIDA
GROUP, INC.


(A
Development Stage Enterprise)


CONSOLIDATED
STATEMENT OF STOCKHOLDERS EQUITY


FOR
THE PERIOD ENDED MARCH 31, 2009





DeficitAccumulated
                  
                  
                  AccumulatedAdditional
                  
                  
                  During the
                  
                  
                  Other
                  
                  
                  TotalCommon Stock
                  
                  
                  Paid-in
                  
                  
                  Development
                  
                  
                  Comprehensive
                  
                  
                  Stockholders'Shares
                  
                  
                  Amount
                  
                  
                  Capital
                  
                  
                  Stage
                  
                  
                  Income (Loss)
                  
                  
                  EquityBalance,
      December 31, 2006
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  (1,500
                  )
                  
                  
                  
                  
                  $
                  (1,500
                  )Proceeds
      from sale of  common stock @0.001 per share on August 20,
      2007
                  
                  
                  25,997,760
                  
                  
                  $
                  25,998
                  
                  
                  $
                  —
                  
                  
                  $
                  —
                  
                  
                  
                  
                  
                  $
                  25,998Issuance
      of common stocks to shareholders @0.05 per share on December 10,
      2007
                  
                  
                  1,294,000
                  
                  
                  $
                  1,294
                  
                  
                  $
                  63,406
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  64,700Adjustment
      for Exchange rate changes
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  (126
                  )
                  
                  $
                  (126
                  )Net
      loss for the year ended December 31, 2007
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  (19,119
                  )
                  
                  
                  
                  
                  
                  $
                  (19,119
                  )Balance,
      December 31, 2007
                  
                  
                  27,291,760
                  
                  
                  $
                  27,292
                  
                  
                  $
                  63,406
                  
                  
                  $
                  (20,619
                  )
                  
                  $
                  (126
                  )
                  
                  $
                  69,953Issuance
      of common stocks to Williams @0.10 per share  on April 15,
      2008
                  
                  
                  50,000
                  
                  
                  $
                  50
                  
                  
                  $
                  4,950
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  5,000Issuance
      of common stocks to convert loans @0.10 per share  on April 15,
      2008
                  
                  
                  11,649,067
                  
                  
                  $
                  11,649
                  
                  
                  $
                  1,153,257
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  1,164,906Adjustment
      for Exchange rate changes
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  29,597
                  
                  
                  $
                  29,597Net
      Income for the year ended December 31, 2008
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  (165,636
                  )
                  
                  $
                  —
                  
                  
                  $
                  (165,636
                  )Balance,
      December 31, 2008
                  
                  
                  38,990,827
                  
                  
                  $
                  38,991
                  
                  
                  $
                  1,221,613
                  
                  
                  $
                  (186,255
                  )
                  
                  $
                  29,471
                  
                  
                  $
                  1,103,820Adjustment
      for Exchange  rate changes
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  (14,447
                  )
                  
                  
                  (14,447
                  )Net
      loss for the period ended March 31, 2009
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  (49,212
                  )
                  
                  
                  
                  
                  
                  $
                  (49,212
                  )Balance,
      March 31, 2009
                  
                  
                  38,990,827
                  
                  
                  $
                  38,991
                  
                  
                  $
                  1,221,613
                  
                  
                  $
                  (235,467
                  )
                  
                  $
                  15,024
                  
                  
                  $
                  1,040,161


7





FLURIDA
GROUP, INC.


(A
Development Stage Enterprise)


CONSOLIDATED
STATEMENT OF CASH FLOWS





Cumulative fromDecember 19, 2006Three
                    
                    
                    Three
                    
                    
                    Three
                    
                    
                    (Date of Inception)Months Ended
                    
                    
                    Months Ended
                    
                    
                    Months Ended
                    
                    
                    ThroughMarch 31
                    
                    
                    March 31
                    
                    
                    March 31
                    
                    
                    March 31,2009
                    
                    
                    2008
                    
                    
                    2007
                    
                    
                    2009Operating
      Activities:Net
      Loss
                    
                    $
                    (49,212
                    )
                    
                    $
                    (102,695
                    )
                    
                    $
                    —
                    
                    
                    $
                    (235,467
                    )Adjustments
      to reconcile net income to net cash providedby operating
      activities:Non-cash
      portion of share based legal fee expense
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    5,000Increase
      in Inventory
                    
                    
                    (398,472
                    )
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    (1,045,066
                    )Increase
      in account receivable
                    
                    
                    (332,021
                    )
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    (811,452
                    )Decrease  in
      other payable
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    (1,500
                    )Increase
      in account payable
                    
                    
                    577,857
                    
                    
                    
                    14,335
                    
                    
                    
                    —
                    
                    
                    
                    1,204,725Decrease
      in credit card payable
                    
                    
                    (631
                    )
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    638Net
      cash provided by operating activities
                    
                    $
                    (202,479
                    )
                    
                    $
                    (88,360
                    )
                    
                    $
                    —
                    
                    
                    $
                    (647,655
                    )Investing
      Activities:Organization
      cost
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —Net
      cash provided by investing activities
                    
                    $
                    —
                    
                    
                    $
                    —
                    
                    
                    $
                    —
                    
                    
                    $
                    —Financing
      Activities:Proceeds
      from issuance of common stock
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    90,698Repay
      loans to shareholders
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    (25,066
                    )Proceeds
      from loan from shareholders
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    —
                    
                    
                    
                    1,191,472Net
      cash provided by financing activities
                    
                    $
                    —
                    
                    
                    $
                    —
                    
                    
                    $
                    —
                    
                    
                    $
                    1,257,104Effect
      of  Exchange Rate on Cash
                    
                    $
                    (14,447
                    )
                    
                    $
                    7,095
                    
                    
                    $
                    —
                    
                    
                    $
                    15,024Net
      increase (decrease) in cash and cash equivalents
                    
                    $
                    (216,926
                    )
                    
                    $
                    (81,265
                    )
                    
                    $
                    —
                    
                    
                    $
                    389,006Cash
      and cash equivalents at beginning of the year
                    
                    $
                    605,932
                    
                    
                    $
                    1,249,499
                    
                    
                    $
                    —
                    
                    
                    $
                    —Cash
      and cash equivalents at end of the period
                    
                    $
                    389,006
                    
                    
                    $
                    1,168,234
                    
                    
                    $
                    —
                    
                    
                    $
                    389,006


8





FLURIDA
GROUP, INC. AND SUBSIDIARIES





NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





NOTE
A- BUSINESS DESCRIPTION





Flurida
Group, Inc. (the “Company”), incorporated under the laws of Nevada on December
19, 2006, with registered address at 502 East John Street, Carson City, NV
89706.  Flurida Group, Inc. operates its business in USA as Flurida
Group USA, Inc., the Company’s wholly owned branch located in the State of
Illinois and has principle office at 800 West Fifth Avenue, Suite 210,
Naperville, IL 60563.





Besides
USA operation, Flurida Group, Inc. also established one representative office in
China and one subsidiary in Europe:





Flurida
Group Qingdao Office. (“Flurida Qingdao”): Flurida Group Qingdao Office is
registered on December 10, 2007.  It is a representative office on
behalf of Flurida Group, Inc. to conduct the business of trading services,
distribution, and marketing of the appliance parts in China. The Flurida Group
Qingdao Office is located at Room 301, Unit 1, Yulong Building, 19 Miaoling
Road, Qingdao, China 266061.  Flurida Qingdao





Flurida
Group European S.R.L (“Flurida European”): Flurida Group European S.R.L. was
established on December 28, 2007 and is 100% owned by Flurida Group,
Inc.  Flurida European is in the business of trading services,
distribution, and marketing of the appliance parts in Europe.  The
Flurida European is located at Via locatelli 2, 21010 Vizzola, Ticino,
VA-Italy.





The
Company’s main business includes sourcing, distribution and marketing of
appliance parts in Asia, Europe, North and South America.





These
parts are manufactured in China by Zhong Nan Fu Rui Mechanical Electronics
Manufacturing Co., Ltd. (“Zhong Nan Fu Rui”).  It was established in
2005 specializing in home appliance components and subassemblies manufacturing,
and located in Qingdao City, Shandong Province, China.  On September
18, 2007, Flurida Group, Inc. signed a long-term distribution agreement with
Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co., Ltd.  Zhong
Nan Fu Rui is a Chinese manufacturing company owned 100% by Mr. Jianfeng Ding,
the founder of the Company.


9





FLURIDA
GROUP, INC. AND SUBSIDIARIES





NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





NOTE
B – SIGNIFICANT ACCOUNTING POLICIES





Basis of
accounting





The
financial statements reflect the assets, revenues and expenditures of the
Company on the accrued basis of accounting.





Principles of
Consolidation





The
consolidated financial statements of the Company include the accounts of Flurida
Group USA, Flurida Group Qingdao Office, and Flurida Group European
S.R.L.  All significant intercompany balances and transactions have
been eliminated in consolidation.





Use of
Estimates





The
preparation of financial statements in conformity with generally accepted
accounting principles in the United States of America requires management to
make estimates and assumptions that affect certain amounts reported in the
financial statements and disclosures.  Accordingly, actual results
could differ from those estimates.





Cash and Cash
Equivalents





The
Company considers all highly-liquid investments with an original maturity of
three months or less when purchased to be cash equivalents.





Foreign Currency
Translation





The
Company has determined the United States dollars to be its functional currency
for Flurida Group USA; People’s Republic of China Chines Yuan Renminbi to be its
functional currency in Flurida Qingdao office; and European Euro to be its
functional currency in European business.  Assets and liabilities were
translated to U.S. dollars at the period-end exchange rate.  Statement
of operations amounts were translated to U.S. dollars using the first date of
each month during the year.  Gains and losses resulting from
translating foreign currency financial statements are accumulated in other
comprehensive income (loss), a separate component of shareholders’
equity.


10





FLURIDA
GROUP, INC. AND SUBSIDIARIES





NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





NOTE
B – SIGNIFICANT ACCOUNTING POLICIES





Property, Plant, and
Equipment Depreciation





Property,
plant, and equipment are stated at cost.  Depreciation is being
provided principally by straight line methods over the estimated useful lives of
the assets.  As of March 31, 2009, there were no fixed assets in the
Company’s balance sheets.





Stock-Based
Compensation





The
Company accounts for stock issued for services using the fair value
method.  In accordance with Emerging Issues Task Force (“EITF”) 96-98,
the measurement date of shares issued for services is the date at which the
counterparty’s performance is complete.





Basics and Diluted Net Loss
Per Common Share




Basic
earnings per share is computed by dividing income available to common
shareholders (the numerator) by the weighted-average number of common shares
outstanding (the denominator) for the period. Diluted earnings per share assume
that any dilutive convertible securities outstanding were converted, with
related preferred stock dividend requirements and outstanding common shares
adjusted accordingly. It also assumes that outstanding common shares were
increased by shares issuable upon exercise of those stock options for which
market price exceeds the exercise price, less shares which could have been
purchased by us with the related proceeds. In periods of losses, diluted loss
per share is computed on the same basis as basic loss per share as the inclusion
of any other potential shares outstanding would be anti-dilutive.





The
Company only issued one type of shares, i.e., common shares
only.  There are no other types securities were
issued.  Accordingly, the diluted and basics net loss per common share
are the same.


11





FLURIDA
GROUP, INC. AND SUBSIDIARIES





NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)





Revenues





Flurida
Group, Inc had total revenue of $ 1,504,324, including $ 1,095,109 consignment
sales to Electrolux, and $409,215 sales in first quarter ended at March 31,
2009.





From the
period of January to March 2009, the Company sold total quantity of 30,217
icemakers and 247,968 motors to an US company, Electrolux, located at
Springfield, TN for $ 1,101,574 which is the sum of $ 6,465 as direct sales and
$ 1,095,109 as consignment sales.  There are 30,217 icemakers and
15,120 motors were manufactured and supplied by Zhong Nan Fu Rui; and 232,848
motors were manufactured and supplied by Qingdao Fu Bi Da Co.,
Ltd.  All the icemakers and motors were shipped out at FOB shipping
point Qingdao, China.





The
company sold total quantity of 17,180 Motor, 1600 Fan, 6,830 Lamp, 4,324 Dac
Box, and 37,260 Magnet to Electrolux Europe for $79,792. The 37,260 magnets were
supplied by Shanghai Fu Lu Trading Co., Ltd.; all the parts were shipped out at
FOB shipping point at Shanghai, China.  The motors and other related
refrigerator appliance parts were manufactured and supplied by Qingdao Fu Bi Da
Co., Ltd., and were shipped out at FOB shipping point at Qingdao,
China.





The
Company sold total quantity of 60,480 motors to another US company, Master
Precision Global (MPG), a sub-assembler to Electrolux, for $237,686. The motors
were manufactured and supplied by Qingdao Fu Bi Da Co., Ltd. and shipped out at
FOB shipping point at Qingdao, China.





In the
first quarter of 2009, the Company sold thermostats, the key parts for
icemakers, to Zhong Nan Fu Rui.  The parts were exclusively used for
the icemakers purchase order by Electrolux.  Flurida Group purchased
the parts from Wako Electronics, Inc., an US Company located at Louisville, KY
40299.  Flurida Group also sold Rocker Switch, the key parts for
icemakers, to Zhong Nan Fu Rui.  The parts, Rocker Switch, were
exclusively used for the icemakers purchase order by Electrolux.  The
Company purchased the parts, Rocker Switch, from CW Industries, an US Company
located at Southampton, PA. The total cost for all the parts purchased is
$79,985.70.  Then, Flurida Group, Inc. adds averaged 5% margin based
on the cost of purchase, so, $85,271.90 were sold and invoiced to Zhong Nan Fu
Rui.   Flurida Group, Inc. adopted the cost plus pricing
policies.  For the sales value less than 2 million US dollars, the
sales price will be cost of purchase plus averaged 5% of cost.


12





FLURIDA
GROUP, INC. AND SUBSIDIARIES





NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)





Revenues
(Continued)





In
summary, as of March 31, 2009, the Company incurred the total revenue of
$1,504,324 and cost of goods sold $1,416,293 respectively.  The cost
of goods sold is also discussed in Note C, Related Party
Transactions.





Operating
Expense





Below
table list the detail operating expense for the period ended at March 31, 2009,
2008, and 2007.





Three Months
                  Ended
                
                
                Three Months
                  Ended
                
                
                Three Months
                  EndedMarch 31, 2009
                
                
                March 31, 2008
                
                
                March 31, 2007ExpenseBank
      Service Charges
                
                $
                446.96
                
                
                $
                660.54
                
                
                $
                —Business
      operation tax
                
                
                1,546.77
                
                
                
                52.99
                
                
                
                —Business
      Registration
                
                
                675.00
                
                
                
                807.36
                
                
                
                —Flurida
      Europe Operating Exp
                
                
                8,928.00
                
                
                
                31,632.82
                
                
                
                —Industry
      Show
                
                
                16,895.00
                
                
                
                —
                
                
                
                —Insurance
      Expense
                
                
                2,627.72
                
                
                
                —
                
                
                
                —Meals
      and Entertainment
                
                
                687.39
                
                
                
                —
                
                
                
                —Office
      Supplies
                
                
                353.15
                
                
                
                68.45
                
                
                
                —Parking
      fee
                
                
                180.00
                
                
                
                —
                
                
                
                —Payroll
      Expense – ERHosing
      public accum fund -ER
                
                
                361.48
                
                
                
                366.70
                
                
                
                —Social  insurance-ER
                
                
                1,785.09
                
                
                
                1,215.12
                
                
                
                —US
      Medicare Tax – ER
                
                
                579.99
                
                
                
                —
                
                
                
                —US
      Social Security Tax -ER
                
                
                2,479.34
                
                
                
                —
                
                
                
                —Payroll
      Expense - ER - Other
                
                
                916.62
                
                
                
                1,010.63
                
                
                
                —Total
      Payroll Expense – ER
                
                
                6,122.52
                
                
                
                2,592.45
                
                
                
                —Payroll
      Expenses – EEFederal
      Tax Withholding
                
                
                8,000.01
                
                
                
                —
                
                
                
                —Housing
      public accum fund –EE
                
                
                361.47
                
                
                
                366.69
                
                
                
                —Net
      Wage Payment-EE
                
                
                40,483.34
                
                
                
                25,354.48
                
                
                
                —Social
      Insurance-EE
                
                
                606.06
                
                
                
                412.53
                
                
                
                —State
      Tax Withholding
                
                
                800.00
                
                
                
                —
                
                
                
                —US
      Medicare Tax –EE
                
                
                579.99
                
                
                
                —
                
                
                
                —US
      Social Security Tax – EE
                
                
                2,480.01
                
                
                
                —
                
                
                
                —Total
      Payroll Expenses – EE
                
                
                53,310.88
                
                
                
                26,133.70
                
                
                
                —Postage
      & Shipping
                
                
                1,052.04
                
                
                
                2,038.53Professional
      Fees
                
                
                30,200.00
                
                
                
                29,412.27Rent
      Expense
                
                
                5,175.00
                
                
                
                6,820.00
                
                
                
                —Telephone
      Expense
                
                
                1,358.27
                
                
                
                753.21
                
                
                
                —Transfer
      Agent ServiceSet
      up & Application Fee
                
                
                1,250.00
                
                
                
                —
                
                
                
                —Total
      Transfer Agent Service
                
                
                1,250.00
                
                
                
                —
                
                
                
                —Travel
      ExpenseAir
      agent fee
                
                
                172.19
                
                
                
                349.40
                
                
                
                —Airfare
                
                
                2,715.82
                
                
                
                1,391.80
                
                
                
                —Hotel
      Expense
                
                
                3,836.58
                
                
                
                2,404.06
                
                
                
                —Total
      Travel Expense
                
                
                6,724.59
                
                
                
                4,145.26
                
                
                
                —Utilities
                
                
                204.62
                
                
                
                —
                
                
                
                —Total
      Expense
                
                $
                137,737.91
                
                
                $
                105,117.58
                
                
                $
                —


13





Inventory





On June,
2008, Flurida Group, Inc signed a consigned inventory agreement with Electrolux
Home Products De Mexico, S.A. DEC.V. (Electrolux).  Under the term of
the agreement, the supplier, Flurida Group, Inc, agreed to produce, to maintain
the transit the customized products per Electrolux’s specification. Electrolux
maintain a storage location within Electrolux’s Juarez site for consigned
inventory. And Flurida Group, Inc is facilitated to use of Electrolux’s storage
location at such site to the sale of products to Electrolux; Electrolux will
provide labor resources for receipt, stock up, and pulls of consigned products.
Flurida Group, Inc., retains title and ownership of products while in transit to
Electrolux’s site and while stored in the consigned inventory
location.


Title and
ownership will pass to Electrolux when they withdraw products from the consigned
inventory location. Upon withdrawal, Electrolux will pay for it under the
payment term stated in the purchasing order correspond with the withdraw
products.


Products
residing in the consigned inventory for 90 days with no activity due to non
communicated demand change will no longer qualify for consignment, and will be
considered as withdrawn product after 90 days. Accordingly, title passage and
invoicing shall occur on such product per the term.





At the
period ended March 31, 2009, there was total inventory of $ 1,045,066 including
$ 928,642 consignment inventory and $ 116,424 ending inventory for Flurida
Group, Inc.


14


FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Inventory
(Continued)
 
 In the
first quarter of 2009, the Company sold total quantity of 30,217 icemakers
including 224 as sold and 29,993 as consignment inventory, and the quantity of
247,968 motors as consignment inventory to Electrolux for $1,101,574; the amount
of $ 1,101,574 was the sum of $ 6,465 as sold sales and $ 1,095,109 as
consignment sales. For the period ended at March 31, 2009, there was consignment
sale of $1,095,109 and a value of $ 166,467 products were withdrawn and
invoiced. As a result, there was a value of $ 928,642 as consignment inventory
for the period ended March 31, 2009.
 
 There was
also an ending inventory of $ 116,424 for Flurida Group, Inc, which was a
purchase of 30240 motors from Zhong Nan Fu Rui for FOB shipping point at Qingdao
on November 5, 2008. This purchase hasn’t considered as a sale or a consignment
inventory at the period ended March 31, 2009. Therefore, those motors were
stored in a warehouse of a US company, Electrolux; and Flurida Group, Inc paid
warehouse cost to Electrolux for residing the product.
 
 Income
Tax
 
 The
Company filed extension for corporate tax return Form 1120 to Internal Revenue
Service and IL 1120 to the State of Illinois.  There is no income tax
for the State of Nevada.  China’s Qingdao representative office
expenditures will be reported in the Company’s U.S. tax return Form
1120.  Flurida Group European will report income tax return to Italy
government.
 
 Payroll
Expense
 
 Beginning
at 2008, Flurida Qingdao’s Representative office hired 7 full time employees to
take care of daily management and administrative activities for the
Company.  Flurida Group USA began to have payroll for officers at
January 2009.
 
 The
consolidated total payroll expense for the period ended March 31, 2009 was $
59,433.  The payroll expense details are listed as
follows:
  15
 
 FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Payroll Expense (
Continued)
 
 Flurida
Group Payroll Expense
 
 Three Months
                    Ended
                  
                  
                  Three Months
                    Ended
                  
                  
                  Three Months
                    EndedMarch 31, 2009
                  
                  
                  March 31, 2008
                  
                  
                  March 31, 2007Payroll Expense–ERHosing public accum fund–ER
                  
                  $
                  361.48
                  
                  
                  $
                  366.70
                  
                  
                  $
                  —Social  insurance-ER
                  
                  
                  1,785.09
                  
                  
                  
                  1,215.12
                  
                  
                  
                  —US MedicareTax–ER
                  
                  
                  579.99
                  
                  
                  
                  —
                  
                  
                  
                  —US Social Security Tax–ER
                  
                  
                  2,479.34
                  
                  
                  
                  —
                  
                  
                  
                  —Payroll Expense - ER–Other
                  
                  
                  916.62
                  
                  
                  
                  1,010.63
                  
                  
                  
                  —Total Payroll Expense–ER
                  
                  
                  6,122.52
                  
                  
                  
                  2,592.45
                  
                  
                  
                  —Payroll Expenses–EEFederal Tax
      Withholding
                  
                  
                  8,000.01
                  
                  
                  
                  —
                  
                  
                  
                  —Housing public accum fund
      -EE
                  
                  
                  361.47
                  
                  
                  
                  366.69
                  
                  
                  
                  —Net Wage
      Payment-EE
                  
                  
                  40,483.34
                  
                  
                  
                  25,354.48
                  
                  
                  
                  —Social
      Insurance-EE
                  
                  
                  606.06
                  
                  
                  
                  412.53
                  
                  
                  
                  —State Tax
      Withholding
                  
                  
                  800.00
                  
                  
                  
                  —
                  
                  
                  
                  —US Medicare Tax–EE
                  
                  
                  579.99
                  
                  
                  
                  —
                  
                  
                  
                  —US Social Security Tax–EE
                  
                  
                  2,480.01
                  
                  
                  
                  —
                  
                  
                  
                  —Total Payroll Expenses–EE
                  
                  
                  53,310.88
                  
                  
                  
                  26,133.70
                  
                  
                  
                  —Total
      Payroll Expense
                  
                  $
                  59,433.40
                  
                  
                  $
                  28,726.15
                  
                  
                  $
                  —
 
 The
housing public accumulated fund and social insurance were paid by both employer
and employees in China; the employee portion of housing public accumulated fund
and social insurance was withheld by employer, and then submitted to local tax
authority in China.
 
 Started
from January 2009, Flurida Group had salaries for officers Jianfeng Ding and
Yaru Huang for $ 100,000 and $ 60,000 respectively. The Social Security tax and
Medicare tax were paid by both employer and employees in USA; employees also
withheld portion of Federal and State tax calculate by each individual’s status.
All of the tax was submitted to Internal Revenue Service and local government at
a monthly basis.
  16
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Concentration of credit
risk
 
 The
Company maintains its cash in bank accounts which, at times, may exceed the
federally insured limits.  The Company has not experienced any losses
in such accounts and believes it is not exposed to any significant credit risk
on cash.
 
 Recent Accounting
Pronouncements
 
 In
December 2004, the FASB issued Statement of Financial Accounting Standards No.
153 (SFAS 153), “Exchange of Non-monetary Assets.”  SFAS 153 amends
the guidance in APB No. 29, “Accounting for Non-monetary Assets.”  APB
No. 29 was based on the principle that exchanges of non-monetary assets should
be measured on their fair value of the assets exchanged.  SFAS 153
amends APB No. 29 to eliminate the exception for non-monetary exchanges of
similar productive assets and replaces it with a general exception for exchanges
of non-monetary assets that do not have commercial substance if the future cash
flows of the entity are expected to change significantly as a result of the
exchange.  SFAS 151 is effective for financial statements issued for
fiscal years beginning after June 15, 2005.  The adoption of SFAS 153
did not have a material effect on the Company’s financial position or results of
operation.  In December 2004, the FASB revised Statement of Financial
Accounting Standards No. 123 (SFAS 123 (R)), “Accounting for Stock-Based
Compensation.”  The SFAS 123(R) revision established for accounting
for transactions in which an entity exchanges its equity instruments for goods
or services and focuses primarily on accounting for transactions in which an
entity obtains employee services in share-based payment
transactions.  It does not change the accounting guidance for
share-based payment transactions with parties other than
employees.  For public entities that file as small business issuers,
the revisions to SFAS 123 (R) are effective as of the beginning of the first
interim or annual reporting period that begins after December 15,
2005.  Adoption of SFAS 123 (R) is not expected to have a material
impact on the Company’s financial position or results of
operations.
 
 In May
2005, the FASB issued SFAS no. 154, “Accounting Changes and Error Corrections
(“SFAS No. 154”) which replaces APB Opinion No. 20, “Accounting Changes” and
SFAS No. 3, “Reporting Accounting Changes in Interim Financial Statements-An
Amendment of ABP Opinion No. 28.  SFAS No. 154 provides guidance on
the accounting for and reporting of accounting changes and error corrections.
Specifically, this statement requires “retrospective application” of the direct
effect for a voluntary change in accounting principle to prior periods’
financial statements, if it is practical to do so.  SFAS No. 154 also
strictly defines the term “restatement” to mean the correction of an error
revising previously issued financial statements.
  17
 
 FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Recent Accounting
Pronouncements (Continued)
 
 SFAS No.
154 is effective for accounting changes and corrections of errors made in fiscal
years beginning after December 15, 2005.  The management believes that
adoption of SFAS No. 154 will not have a material impact on the results of
operations, financial positions or cash flows.
 
 In July
2006, the FASB issued Financial Interpretation No. 48, “Accounting for
Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109” (“FIN
48”), and supplemented by FASB Financial Staff Position FIN 48-1, Definition of
Settlement in FASB Interpretation No. 48, issued May 2, 2007.  FIN 48
specifies how tax benefits for uncertain tax positions are to be recognized,
measured, and derecognized in financial statements; requires certain disclosures
of uncertain tax matters; specifies how reserves for uncertain tax positions
should be classified on the balance sheet; and provides transition and interim
period guidance, among other provisions.  FIN 48 is effective for
fiscal years beginning after December 15, 2006 and as a result, is effective for
the Company in the fiscal year 2008.
 
 In
September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (“SFAS
157”).  SFAS 157 defines fair value, establishes a framework for using
fair value assets and
liabilities, and expends disclosures about fair value measurements.  This
statement applies whenever other statements require or permit assets or
liabilities to be measured at fair value.  SFAS 157 is effective for
fiscal years beginning after November 15, 2007.  The management
believes that there is no material impact on its consolidated results of
operations, cash flows, and financial position.
 
 In
September 2006, the Securities and Exchange Commission (“SEC”) issued Staff
Accounting Bulletin (“SAB”) No. 108, Quantifying Financial Misstatements (“SAB
108”), which expresses the Staff’s views regarding the process of quantifying
financial statement misstatements.  Registrants are required to
quantify the impact of correcting all misstatements, including both carryover
and reversing effects of prior year misstatements, on the current year financial
statements.  The financial statements would require adjustment when
either approach results in quantifying a misstatement that is material, after
considering all relevant quantitative and qualitative factors.  SAB
108 is effective for financial statements covering the first fiscal year ending
after November 15, 2006.  The management believes that there is no
material impact on its consolidated results of operations, cash flows, and
financial position.
  18
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
  NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Recent Accounting
Pronouncements (Continued)
  In
December 2007, the Financial Accounting Standards Board issued FASB Statement
No. 141 (Revised 2007), Business Combinations (“SFAS 141R”). SFAS 141R
provides additional guidance on improving the relevance, representational
faithfulness, and comparability of the financial information that a reporting
entity provides in its financial reports about a business combination and its
effects. This Statement applies prospectively to business combinations for
which the acquisition date is on or after the beginning of the first annual
reporting period beginning on or after December 15, 2008.
  In
December 2007, the Financial Accounting Standards Board issued FASB Statement
No. 160,Noncontrolling
Interests in Consolidated Financial Statements—an amendment of ARB
No. 51 (“SFAS 160”). SFAS 160 amends ARB No. 51 to establish
accounting and reporting standards for the noncontrolling interest in a
subsidiary and for the deconsolidation of a subsidiary. This Statement is
effective for fiscal years and interim periods within those fiscal years,
beginning on or after December 15, 2008. The Company is currently
evaluating the impact of adopting SFAS 160 on our financial
statements.
  In May
2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted
Accounting Principles.” SFAS 162 identifies the sources of accounting
principles and the framework for selecting the principles used in the
preparation of financial statements of nongovernmental entities that are
presented in conformity with generally accepted accounting principles (GAAP) in
the United States. SFAS 162 is effective 60 days.
  following
the SEC’s approval of the Public Company Accounting Oversight Board amendments
to AU Section 411, The Meaning
of Present Fairly in Conformity With Generally Accepted Accounting
Principles. Our Company is currently evaluating the impact of SFAS 162 on
its financial statements but does not expect it to have a material
effect.
  Management
does not anticipate that the adoption of these standards will have a material
impact on the financial statements.
  19
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
C – RELATED PARTY TRANSACTIONS
 
 Common Shares Issued to
Executive and Non-Executive Officers and Directors
 
 As of
March 31, 2009, total 32,129,960 shares were issued to officers and
directors.  Please see the Table  below for
details:
  Name
                      
                      Total
Shares
                      
                      
                      Total
Amount
                      
                      
                      PercentageFenglan  Li
                      
                      
                      165,000
                      
                      
                      
                      15,750
                      
                      
                      
                      0.42
                      %Fuling Li
                      
                      
                      115,000
                      
                      
                      
                      10,750
                      
                      
                      
                      0.29
                      %Ying Zhong
                      
                      
                      2,000,000
                      
                      
                      
                      200,000
                      
                      
                      
                      5.13
                      %Gian Franco
      Barbieri
                      
                      
                      102,000
                      
                      
                      
                      9,700
                      
                      
                      
                      0.26
                      %Xiaoyong Fu
                      
                      
                      750,000
                      
                      
                      
                      75,000
                      
                      
                      
                      1.92
                      %Jianfeng Ding & Yaru
      Huang
                      
                      
                      28,997,760
                      
                      
                      
                      325,998
                      
                      
                      
                      74.37
                      %Total
                      
                      
                      32,129,760
                      
                      
                      $
                      637,197.76
                      
                      
                      
                      82.39
                      %
 
 * Based
on total issued shares as of March 31, 2009: 38,990,827
 
 Cost of Goods
Sold
 
 The
Company’s purchase is primarily from supplier, Zhong Nan Fu Rui Mechanical
Electronics Manufacturing Co., Ltd., owned 100% by the founder of the Company,
Jianfeng Ding.  Due to Jianfeng Ding, and Yaru Huang, husband and
wife, combined hold 74.37% issued common shares for Flurida Group, Inc., the two
entities, Flurida Group, Inc., and Zhong Nan Fu Rui Mechanical Electronics
Manufacturing Co., Ltd., are under common control according to EITF
02-5.
  20
 
 FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
C – RELATED PARTY TRANSACTIONS (Continued)
 
 Cost of Goods
Sold(Continued)
 
 The productsthe Companywill sell are manufactured in China by
Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co., Ltd. (“Zhong Nan Fu
Rui”).  It was established in 2005 specializing in home appliance
components and subassembliesmanufacturing, and located in Qingdao
City, Shandong Province, China.  On September 18, 2007, amended June 25,
2008 and further amended on August 4, 2008, Flurida Group, Inc. signed a five
year distribution agreement with Zhong Nan Fu Rui Mechanical Electronics
Manufacturing Co., Ltd.  Zhong Nan Fu Rui is a Chinese manufacturing
company owned 100% by Mr. Jianfeng Ding, our president.  Under the
terms of the agreement Zhong Nan Fu Rui authorizes Flurida to be its exclusive
sales agent for the ice making product lines, including icemaker and ice water
dispensing systems all over the world. The ice making product lines shall
include the products that Zhong Nan Fu Rui developed before the agreement signed
and the products that will be developed solely by Zhong Nan Fu Rui during the
term of the agreement. Zhong Nan Fu Rui is the exclusive supplier of the
products we sell. Although the distribution agreement requires that the purchase
price we will pay for these products will be comparable to what the Flurida
would have paid a non-related party in market price, Mr. Ding may face a
conflict in calculating the price the products are sold to Flurida and the
determining amount of products the Flurida purchase.  However, because
Mr. Ding has a fiduciary duty to Flurida and the shareholders, he has indicated
that he will assure strict adherence to this provision of the agreement and will
not require Flurida to purchase a quantity of products in excess of that which
Flurida can reasonably afford or reasonably expect to sell in within two to
three months of our purchase of the products.
 
 The
management of Flurida Group, Inc. believes that the purchase price for the parts
from Zhong Nan Fu Rui will be market price.  Flurida Group, Inc. and
Zhong Nan Fu Rui are two totally separated entities, i.e., Flurida Group, Inc.
is a USA corporation and will fully comply with USA regulations and USA general
accepted accounting principles; Zhong Nan Fu Rui is a Chinese company and it
will comply with Chinese legal systems.
 
 Flurida
Group, Inc. and Zhong Nan Fu Rui will operate independently.  Zhong
Nan Fu Rui, as a Chinese local manufacturer, will record their manufacturing
costs and inventories based on the Chinese accounting regulations rulings. But,
when Flurida Group, Inc. purchases the parts from Zhong Nan Fu Rui, Flurida
Group will record the actual costs paid to Zhong Nan Fu Rui as the costs for
inventory of Flurida Group, Inc.  There is no any relationship for
Zhong Nan Fu Rui’s manufacturing historic costs with Flurida Group’s inventory
value.  Specifically, Flurida’s inventory value is equal to the
purchase price or actual cost of the parts purchased from Zhong Nan Fu Rui, and
the purchase price of the parts will be fair market price.  Flurida
Group, Inc. will adopt the first-in and first-out inventory system according to
generally accepted accounting principles in USA.
  21
 
 FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE
C – RELATED PARTY TRANSACTIONS (Continued)
 
 Cost of Goods
Sold(Continued)
 
 The
management of Zhong Nan Fu Rui disclosed to Flurida Group, Inc. that, Zhong Nan
Fu Rui  adopted the cost plus pricing policies with market adjustment,
negotiable with customers.  Zhong Nan Fu Rui adopted the cost plus
system for all the products for all customers including the product, icemakers
exclusively distributed by Flurida Group, Inc.  Specifically, the
selling price is determined by total actual manufacturing cost of direct
manufacturing materials (parts), direct manufacturing labor, and allocated
manufacturing overhead cost, plus 5-10% of total manufacturing
cost.  Zhong Nan Fu Rui’s minimum gross profit margin is
5%.
 
 Flurida
Group also purchased the products from suppliers, Qingdao Fu Bi Da Co., Ltd and
Shanghai Fu Lu Trading Co., Ltd on purchase orders basis.
 
 Qingdao
Fu Bi Da Co., Ltd, owned 100% indirectly by Jianfeng Ding and Yaru Huang,
husband and wife. Qingdao Fu Bi Da Co., Ltd is a manufacturing company, and it
was established in January 15, 2002 specializing in home appliance control
components and subassemblies manufacturing, and located in Qingdao City,
Shandong Province, China. The plant space is around 70,000 sq ft. 14 units
injection molding machine up to 600 metric tons.
 
 In the
period end March 31, 2009, Flurida Group, Inc. purchased 30,217 icemakers and
15,120 motors from Zhong Nan Fu Rui at total cost of $ 398,819 for FOB shipping
point at Qingdao, China respectively to the sales amount of
$431,032.  The total parts price of $ 398,819 from Zhong Nan Fu Rui
consists of 80% of direct manufacturing materials and labor, 10% of allocated
manufacturing overhead, and 10% of profit margin.
 
 Flurida
Group, Inc. also purchased 310,508 motors, 1,600 fans, 6,830 lamps, and 4,324
dac boxes from Qingdao Fu Bi Da Co., Ltd. at total cost of $ 931,531 for FOB
shipping point at Qingdao, China.
 
 In
addition, Flurida Group, Inc. purchased 37,260 magnets from Shanghai Fu Lu
Trading Co., Ltd. a trading company established in April 23, 2007, located at
Shanghai, China, 100% owned indirectly by Jianfeng Ding and Yaru Huang, at total
cost of $5,958 for FOB shipping point at Shanghai, China.
 
 To
manufacture the related refrigerator appliance parts, Zhong Nan Fu Rui needs key
parts made in USA, which were purchased through Flurida Group, Inc. in
USA.  The costs of purchasing the parts were $79, 986.
 
 Therefore,
for the period ended March 31, 2009, the total cost of goods sold was
$1,416,293.
  22
  FLURIDA
GROUP, INC. AND SUBSIDIARIES
 
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 
 NOTE D – SHAREHOLDERS’
EQUITY
 
 During
the year ended December 31, 2008, Flurida Group, Inc has issued total 11,699,067
new shares on April 15, 2008, including 11,649,067 shares issued to loan holders
who converted all the loans to common shares. At the year ended December 31,
2008, Flurida Group, Inc. incurred net loss of $ (165,636). Therefore, the total
stockholders’ equity balance at December 31, 2008 was $ 1,103,820.
 
 On April
15, 2008, 50,000 shares issued to Williams Law Group at $ 0.10, for the legal
service value of $5,000.  On April 1, 2008, seven non-affiliated loan
holders asked for repayment of their loans in the aggregate amount of $ 25,066
plus the total interest cost of $624.72, which was paid on the same date, April
1, 2008; meantime, seven additional lenders loaned an aggregate amount of $
9,926.  On April 15, 2008, total loan amount of $1,164,906 was
converted to common shares at price of $0.10 per share, for the total shares of
11,649,067 shares, which were issued to the loans holders.
 
 There
were no new shares issued during the period ending March 31,
2009.  Therefore, as of March 31, 2009, total shares issued and
outstanding are 38,990,827.
 
 NOTE
E – GOING CONCERN
 
 The
Company’s lack of operating history and operation loss raise substantial doubt
about its ability to continue as a going concern.  The financial
statements do not include adjustments that might result from the outcome of this
uncertainty and if the Company is unable to generate significant revenue or
secure financing, then the Company may be required to cease or curtail its
operations.  However, due to the close relationship between the
Company and it’s major suppliers, Zhong Nan Fu Rui Mechanical Electronics
Manufacturing Co., Ltd., and Qingdao Fu Bi Da Electronics Co., Ltd.,
which are 100% owned directly or indirectly by the founders, Jianfeng Ding &
Yaru Huang, Zhong Nan Fu Rui’s and Qingdao Fu Bi Da’s current customers can be
served by the Company for the same quality of products and
services.  Besides, as of March 31, 2009, the cash and cash equivalent
balance was $389,006, the management believes that the revenues will be
generated and its cash flows will be maintained to cover its operational costs
and the risk of going concern in long term is significantly
low.
  23
  Item 2.Management’s Discussion and Analysis
or Plan of Operation.
  This
10−Q contains forward-looking statements. Our actual results could differ
materially from those set forth as a result of general economic conditions and
changes in the assumptions used in making such forward-looking statements. The
following discussion and analysis of our financial condition and results of
operations should be read together with the audited consolidated financial
statements and accompanying notes and the other financial information appearing
else where in this report. The analysis set forth below is provided pursuant to
applicable Securities and Exchange Commission regulations and is not intended to
serve as a basis for projections of future events. Refer also to "Cautionary
Note Regarding Forward Looking Statements" and “Risk Factors”
below.
 
 Overview
 
 Our
business is the sale of appliance parts in Asia, Europe, North and South
America.  The main products that we sell to these markets are
icemakers, motors, appliance assemblies.
 
 These
parts are manufactured in China by Zhong Nan Fu Rui Mechanical Electronics
Manufacturing Co., Ltd. (“Zhong Nan Fu Rui”)  We also purchase parts
for resale from Qingdao Fu Bi Da Co., Ltd. and Shanghai Fu Lu Trading Co.,
Ltd.
 
 Zhong Nan
Fu Rui was established in 2005 specializing in home appliance components and
subassemblies manufacturing, and located in Qingdao City, Shandong Province,
China.  On September 18, 2007, amended June 25, 2008 and further
amended on August 4, 2008, Flurida Group, Inc. signed a long-term distribution
agreement with Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co.,
Ltd.  Zhong Nan Fu Rui is a Chinese manufacturing company owned 100%
by Mr. Jianfeng Ding, our president.
 
 Qingdao
Fu Bi Da Co., Ltd. was established in 2002 specializing in home appliance
control components and subassemblies manufacturing, and is located in Qingdao
City, Shandong Province, China. Shanghai Fu Lu Trading Co., Ltd. was established
in 2007 and is a trading company that sources products in China for export.
Qingdao Fu Bi Da Co., Ltd. and Shanghai Fu Lu Trading Co., Ltd. are beneficially
owned by Mr. Ding and Ms. Huang.  Mr. Ding is the CEO of both
companies.
  We sell
primarily the following types of appliance parts:
  ·
              Automatic Refrigerator Build-in
      Icemaker:The automatic refrigerator build-in icemaker is designed
      for household refrigeration products, such as refrigerator, under-counter
      refrigerator, freezer to make the ice cubes
  automatically.
 
 ·
              Refrigerator Through-Door Ice
      Water System:Refrigeration Through-Door Ice Water System is the
      system that stores the ice cubes harvested from the icemaker, delivered
      and dispensed the ice, crushed ice or water to the refrigerator door
      through the electronic control system at the front of the refrigerator
      door. The through-door ice water system normally includes the following
      assemblies: ice bucket assembly, motor rail assembly, module assembly,
      facade assembly, housing assembly. The ice bucket assembly and the motor
      rail assembly can be located in the freezer, in the refrigerator door and
      or sealed chamber in the refrigerator. The module assembly, facade
      assembly and housing assembly vary according to the specific design from
      each client.
  24
 
 ·
              Shade Pole Motor and Motor
      Assembly for Refrigerator or Freezers:The shade pole
      motor and motor assembly is a key part for refrigerators or
      freezers.
 
 All of
our sales in the first three months ended March 31, 2009 were to Electrolux and
its affiliates or sub-assemblers.
 
 Results of
Operations
 
 For the three months ended
March 31, 2009 vs. March 31, 2008.
 
 Revenue
 
 We had no
revenue for the three months ended March 31, 2008.
 
 For the
three months ended March 31, 2009, we had revenue of $1,504,324 from
parts, motors and icemaker sales. All of our sales in the first three months
ended March 31, 2009 were to Electrolux and its affiliates or sub-assemblers as
well as to certain key parts made in the U.S. sold to Zhong Nan Fu
Rui.
 
 Cost of
Revenue
 
 Our Costs
of Goods Sold, as we expected will increased slightly due to increasing Chinese
Yuan’s currency exchange rate, labor costs, and raw materials.  We
anticipate this trend to continue and may adjust our unit price upward to reduce
the impact of rising costs.
 
 We had no
cost of goods sold for the three months ended March 31,
2008.  The cost of goods sold for the three
months ended March 31, 2009 was $1,416,293 consisting of purchases of
parts, motor, and icemakers from our affiliates.
 
 In the
period end March 31, 2009, Flurida Group, Inc. purchased 30,217 icemakers and
15,120 motors from Zhong Nan Fu Rui at total cost of $ 398,819 for FOB shipping
point at Qingdao, China respectively to the sales amount of
$431,032.  The total parts price of $ 398,819 from Zhong Nan Fu Rui
consists of 80% of direct manufacturing materials and labor, 10% of allocated
manufacturing overhead, and 10% of profit margin.
 
 Flurida
Group, Inc. also purchased 310,508 motors, 1,600 fans, 6,830 lamps, and 4,324
dac boxes from Qingdao Fu Bi Da Co., Ltd. at total cost of $ 931,531 for FOB
shipping point at Qingdao, China.
 
 In
addition, Flurida Group, Inc. purchased 37,260 magnets from Shanghai Fu Lu
Trading Co., Ltd. a trading company established in April 23, 2007, located at
Shanghai, China, 100% owned indirectly by Jianfeng Ding and Yaru Huang, at total
cost of $5,958 for FOB shipping point at Shanghai, China.
  25
 
 To
manufacture the related refrigerator appliance parts, Zhong Nan Fu Rui needs key
parts made in USA, which were purchased through Flurida Group, Inc. in
USA.  The costs of purchasing the parts were $79, 986.
 
 Expense
 
 Our
expenses consist of selling, general and administrative expenses.
 
 We had $105,118 in expenses in the
three months ended March 31, 2008 vs. $ 137,738for the three months ended
March 31, 2009, a 31% increase.  The primary reasons for this increase
were increases in payroll expenses from $26,133.70in the three months
ended March 31, 2008 vs. $53,310.88in the three months
ended March 31, 2009, an increase of 104% due to increased sales
activity.
 
 We expect
selling, general, and administrative expenses to increase in future periods as
we initiate a number of marketing and promotional activities.
 
 Income
Taxes
 
 We are
subject to income taxes in the U.S., while the subsidiary in Italy is subject to
the income tax laws of Italy.  The representative sales office in
China is not subject to Chinese income tax.
 We paid
no income taxes for the three months ended March 31, 2008 and March 31, 2009 due
to the net operation loss.
 
 Net Loss
 
 We
incurred a net loss of ($95,600) for the period ended March 31, 2008 and
($63,659) for the period ended March 31, 2009.
 
 Commitments
and Contingencies
 
 The
Company has signed a long-term distribution agreement with Zhong Nan Fu Rui
Mechanical Electronics Manufacturing Co., Ltd.  Zhong Nan Fu Rui is a
Chinese manufacturing company owned 100% by Mr. Jianfeng Ding, also the founder
of Flurida Group, Inc.  Also, on June 2008, the company signed a
consigned inventory agreement with an US company, Electrolux Home Products DE
Mexico, S.A.DEC.V (Electrolux).
 
 Foreign
Currency Translation
 
 The
Company has determined the United States dollars to be its functional currency
for Flurida Group USA; People’s Republic of China Chinese Yuan Renminbi to be
its functional currency in Flurida Qingdao office; and European Euro to be its
functional currency for our Italian subsidiary.  Assets and
liabilities were translated to U.S. dollars at the period-end exchange
rate.  The exchange rate of issuance of common stocks to shareholders
was used as one U.S. dollar to 6.83 Chinese Yuan
(RMB).  Statement of operations amounts were translated to U.S.
dollars using the historic rate, i.e., the rate at first date of each month
during the year.  Gains and losses resulting from translating foreign
currency financial statements are accumulated in other comprehensive income
(loss), a separate component of shareholders’ equity.
  26
  Liquidity
and Capital Resources
 
 Flurida
Group, Inc
 
 At March 31
                    
                    
                    At March 312009
                    
                    
                    2008Current
      Ratio
                    
                    
                    1.86
                    
                    
                    
                    0.98Cash
                    
                    $
                    389,006
                    
                    
                    $
                    1,168,234Working
      Capital
                    
                    $
                    1,040,162
                    
                    
                    $
                    1,152,399Total
      Assets
                    
                    $
                    2,245,524
                    
                    
                    $
                    1,168,234Total
      Liabilities
                    
                    $
                    1,205,362
                    
                    
                    $
                    1,195,882Total
      Equity
                    
                    $
                    1,040,161
                    
                    
                    $
                    (27,648
                    )Total
      Debt/Equity
                    
                    
                    1.16
                    
                    
                    
                    -43.25
 
 *Current
Ratio = Current Assets /Current Liabilities
 
 ** Total
Debt / Equity = Total Liabilities / Total Shareholders Equity.
 
 The
Company had cash and cash equivalents of $389,006 at March 31, 2009 and the
working capital of $1,040,162.
 
 The total
debt of $1,205,362 for March 31, 2009 includes the accounts payable of
$1,204,725 and credit card payable of $638.
 
 Our
independent auditor has indicated that our lack of operating history and
financial resources raise substantial doubt about our ability to continue as a
going concern. The financial statements do not include adjustments that might
result from the outcome of this uncertainty and if the Company is unable to
generate significant revenue or secure financing, then the Company may be
required to cease or curtail its operations. However, due to the close
relationship between the Company and its supplier, Zhong Nan Fu Rui, which is
100% owned by the founder, Jianfeng Ding, Zhong Nan Fu Rui’s current customers
can be served by the Company for the same quality of products and services.
Besides, as of March 31, 2009, the cash and cash equivalent balance was $
389,006 , the management believes that the revenues will be generated and its
cash flows will be maintained to cover its operational costs and the risk of
going concern in long term is significantly low.
  27


Item
      3.
              Quantitative
      and Qualitative Disclosure about Market
Risk
 
 Not
applicable.
 
 Item
      4.
              Controls
      and Procedures.
  Evaluation of Disclosure
Controls and Procedures
 
 As of March 31, 2009, under the directionof our Chief Executive Officer andChief Financial Officer, we evaluated our disclosure
controls and procedures as of March 31, 2009 and concluded that our disclosure
controls and procedures were ineffective as of March 31,
2009.
 
 There were no changes in our internal control over
financial reporting during the fiscal quarter ended March 31, 2009, that have
materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.
 
 PART
II — OTHER INFORMATION
  Item 1.
                Legal
      Proceedings.
  None.
  Item
      2.
              Unregistered
      Sales of Equity Securities and Use of
Proceeds.
 (a)                 Unregistered Sales of Equity
Securities.
  The
Registrant did not sell any unregistered securities during the three months
ended March 31, 2009.
  (b)                 Use of
Proceeds.
  The
Registrant did not sell any unregistered securities during the three months
ended March 31, 2009.
 
 Item
      3.
              Defaults
      Upon Senior Securities
  None.
 
 Item
      4.
              Submission
      of Matters to a Vote of Security
Holders.
  The
Registrant did not submit any matters to a vote of its security holders during
the three-months ended March 31, 2009.
  Item
      5.
              Other
      Information.
  Not
applicable.
  28
  Item
      6.
              Exhibits.
  (a)
Exhibits.
 Exhibit
                    No.
                  Document
      Description31.1
                  CERTIFICATION
      of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002.31.2
                  CERTIFICATION
      of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002.32.1
                  CERTIFICATION
      of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      906 OF THE SARBANES-OXLEYACT OF 200232.2
                  CERTIFICATION
      of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      906 OF THE SARBANES-OXLEYACT OF
2002
 
 *  This
exhibit shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934 or otherwise subject to the liabilities of that
section, nor shall it be deemed incorporated by reference in any filing under
the Securities Act of 1933 of the Securities Exchange Act of 1934, whether made
before or after the date hereof and irrespective of any general incorporation
language in any filings.
  
 SIGNATURES
 
 In
accordance with the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
 
 Flurida
Group, Inc., a Nevada corporation
 
 Title
                
                Name
                
                Date
                
                SignaturePrincipal
      Executive Officer
                
                Jianfeng
      Ding
                
                4/9/2009
                
                /s/
      Jianfeng Ding
 
 In
accordance with the Exchange Act, this Report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
 
 SIGNATURE
                          
                          NAME
                          
                          TITLE
                          
                          DATE/s/
      Jianfeng Ding
                          
                          Jianfeng
      Ding
                          
                          Principal
      Executive Officer and Director
                          
                          4/9/2009/s/
      Yaru Hang
                          
                          Yaru
      Hang
                          
                          Principal
      Financial Officer and Principal Accounting Officer
                          
                          4/9/2009/s/
      Xiaoyong Fu
                          
                          Xiaoyong
      Fu
                          
                          Director
                          
                          4/9/2009/s/
      Ying Zhong
                          
                          Ying
      Zhong
                          
                          Director
                          
                          4/9/2009
  29
  EXHIBIT
INDEX
 
 Exhibit
                  No.
                Document
      Description31.1
                CERTIFICATION
      of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002.31.2
                CERTIFICATION
      of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002.32.1
                CERTIFICATION
      of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      906 OF THE SARBANES-OXLEYACT OF 200232.2
                CERTIFICATION
      of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION
      906 OF THE SARBANES-OXLEYACT OF
2002
 
 
 *  This
exhibit shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934 or otherwise subject to the liabilities of that
section, nor shall it be deemed incorporated by reference in any filing under
the Securities Act of 1933 of the Securities Exchange Act of 1934, whether made
before or after the date hereof and irrespective of any general incorporation
language in any filings.
   30