UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-Q





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





For the
quarterly period ended September 30,
2010




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


For the
transition period from _____________________ to ______________





Commission
file number 333-151200





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.





22
      West Washington St., , Suite 1500
                Chicago,
      IL
              
              60602(Address
      of principal executive offices)
              
              (Zip
      Code)





Issuer’s
telephone number:  312-854-8052





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  ̈ No
x





As of
September 30, 2010 there were 38,990,827 shares issued and outstanding of the
registrant’s common stock.










TABLE
OF CONTENTS




PART
      I — FINANCIAL INFORMATION
              F-1Item
      2.  Management’s Discussion and Analysis or Plan of
      Operation.
              3Item
      3.  Quantitative and Qualitative Disclosure about Market
      Risk
              10Item
      4.  Controls and Procedures.
              10PART
      II — OTHER INFORMATION
              10Item
      1.  Legal Proceedings.
              10Item
      2.  Unregistered Sales of Equity Securities and Use of
      Proceeds.
              11Item
      3.  Defaults Upon Senior Securities
              11Item
      4. (Removed and Reserved).
              11Item
      5.  Other Information.
              11Item
      6.  Exhibits.
              11


2




PART
I — FINANCIAL INFORMATION


FLURIDA
GROUP, INC.
 (A
Development Stage Enterprise)
 
 Financial
Statements
 (Unaudited)
 
 As
of September 30, 2010, 2009
  F-1
 
 Table
of Contents
 
 Condensed
      Consolidated Balance Sheets
                F-3Condensed
      Consolidated Statement of Operation
                F-4Condensed
      Consolidated Shareholders Equity
                F-5Condensed
      Consolidated Statement of Cash Flows
                F-6Notes
      to Condensed Consolidated Financial Statements
                F-7
  F-2
 
 FLURIDA
GROUP, INC.
 (A
Development Stage Enterprise)
 CONSOLIDATED
BALANCE SHEETS
 
 September 30
                        
                        
                        December 31
                        
                        
                        December 312010
                        
                        
                        2009
                        
                        
                        2008(Unaudited)
                        
                        
                        (Unaudited)
                        
                        
                        (Unaudited)ASSETSCurrent
      assets:Cash
      and cash equivalents
                        
                        $
                        418,427
                        
                        
                        $
                        700,959
                        
                        
                        $
                        605,932Accounts
      receivable, net
                        
                        
                        2,464,031
                        
                        
                        
                        876,375
                        
                        
                        
                        479,431Inventory
                        
                        
                        1,698,422
                        
                        
                        
                        1,253,869
                        
                        
                        
                        618,151Total
      Current Assets
                        
                        $
                        4,580,880
                        
                        
                        $
                        2,831,203
                        
                        
                        $
                        1,703,514Property,
      plant and equipment, net
                        
                        $
                        30,152
                        
                        
                        $
                        -
                        
                        
                        $
                        -Other
      assets:Loan
      to Supplier
                        
                        $
                        284,626
                        
                        
                        $
                        278,091
                        
                        
                        $
                        -Accrued
      Interest Receivable
                        
                        
                        18,522
                        
                        
                        
                        7,389
                        
                        
                        
                        -Deposit
                        
                        
                        6,264
                        
                        
                        
                        -
                        
                        
                        
                        -Total
      Other Assets
                        
                        $
                        309,412
                        
                        
                        $
                        285,480
                        
                        
                        $
                        -TOTAL
      ASSETS
                        
                        $
                        4,920,444
                        
                        
                        $
                        3,116,683
                        
                        
                        $
                        1,703,514LIABILITIES
      & EQUITYCurrent
      liabilities:Account
      Payable
                        
                        $
                        3,405,784
                        
                        
                        $
                        1,830,077
                        
                        
                        $
                        626,868Unearned
      Revenue
                        
                        
                        60,000
                        
                        
                        
                        -
                        
                        
                        
                        -Credit
      Card Payable
                        
                        
                        -
                        
                        
                        
                        656
                        
                        
                        
                        1,269Total
      Current Liabilities
                        
                        $
                        3,465,784
                        
                        
                        $
                        1,830,733
                        
                        
                        $
                        628,137Stockholders'
      Equity:Common
      stock, $0.001 par value;200,000,000
      shares authorized;38,990,827
      shares issued and outstanding.
                        
                        $
                        38,991
                        
                        
                        $
                        38,991
                        
                        
                        $
                        38,991Paid-in
      capital
                        
                        
                        1,221,613
                        
                        
                        
                        1,221,613
                        
                        
                        
                        1,221,613Deficit
      accumulated during the development stage
                        
                        
                        190,770
                        
                        
                        
                        (23,633
                        )
                        
                        
                        (214,698
                        )Accumulated
      other comprehensive Income(Loss)
                        
                        
                        3,286
                        
                        
                        
                        48,979
                        
                        
                        
                        29,471Total
      stockholders' equity
                        
                        $
                        1,454,660
                        
                        
                        $
                        1,285,950
                        
                        
                        $
                        1,075,377TOTAL
      LIABILITIES & EQUITY
                        
                        $
                        4,920,444
                        
                        
                        $
                        3,116,683
                        
                        
                        $
                        1,703,514
  F-3
 
 FLURIDA
GROUP, INC.
 (A
Development Stage Enterprise)
 CONSOLIDATED
STATEMENT OF OPERATION
 
 Cumulative fromNine Months Ended
                  
                  
                  Three Months Ended
                  
                  
                  December 19, 2006September 30
                  
                  
                  September 30
                  
                  
                  (Date of Inception)2010
                  
                  
                  2009
                  
                  
                  2010
                  
                  
                  2009
                  
                  
                  to September 30, 2010Unaudited
                  
                  
                  Unaudited
                  
                  
                  Unaudited
                  
                  
                  Unaudited
                  
                  
                  UnauditedRevenues:
                  
                  $
                  8,515,125
                  
                  
                  $
                  7,767,522
                  
                  
                  $
                  3,077,322
                  
                  
                  $
                  3,222,445
                  
                  
                  $
                  17,837,759Cost
      of Goods Sold
                  
                  
                  7,618,019
                  
                  
                  
                  7,007,089
                  
                  
                  
                  2,745,526
                  
                  
                  
                  2,865,007
                  
                  
                  
                  16,178,426Gross
      Profit
                  
                  $
                  897,106
                  
                  
                  $
                  760,433
                  
                  
                  $
                  331,796
                  
                  
                  $
                  357,438
                  
                  
                  $
                  1,659,333Operating
      expenses:Research
      and development
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -Selling,
      general and administrative expenses
                  
                  
                  635,318
                  
                  
                  
                  436,133
                  
                  
                  
                  208,173
                  
                  
                  
                  214,217
                  
                  
                  
                  1,507,060Depreciation
      and amortization expenses
                  
                  
                  630
                  
                  
                  
                  -
                  
                  
                  
                  462
                  
                  
                  
                  -
                  
                  
                  
                  630Total
      Operating Expenses
                  
                  $
                  635,948
                  
                  
                  $
                  436,133
                  
                  
                  $
                  208,635
                  
                  
                  $
                  214,217
                  
                  
                  $
                  1,507,690Operating
      Income( Loss)
                  
                  $
                  261,158
                  
                  
                  $
                  324,300
                  
                  
                  $
                  123,161
                  
                  
                  $
                  143,221
                  
                  
                  $
                  151,643Investment
      income, net
                  
                  
                  11,214
                  
                  
                  
                  7,323
                  
                  
                  
                  3,831
                  
                  
                  
                  4,378
                  
                  
                  
                  41,263Interest
      Expense, net
                  
                  
                  1
                  
                  
                  
                  -
                  
                  
                  
                  1
                  
                  
                  
                  -
                  
                  
                  
                  626Income(Loss)
      before taxes
                  
                  
                  272,371
                  
                  
                  
                  331,623
                  
                  
                  
                  129,991
                  
                  
                  
                  147,599
                  
                  
                  
                  192,280Income
      tax expense
                  
                  
                  57,968
                  
                  
                  
                  -
                  
                  
                  
                  57,968
                  
                  
                  
                  -
                  
                  
                  
                  62,829Net
      Income(Loss)
                  
                  $
                  214,403
                  
                  
                  $
                  331,623
                  
                  
                  $
                  69,023
                  
                  
                  $
                  147,599
                  
                  
                  $
                  129,452Net
      Income(Loss) per common share-Basics
                  
                  $
                  0.01
                  
                  
                  $
                  0.01
                  
                  
                  $
                  0.00
                  
                  
                  $
                  0.00
                  
                  
                  $
                  0.00Net
      Income(Loss) per common share-Diluted
                  
                  $
                  0.01
                  
                  
                  $
                  0.01
                  
                  
                  $
                  0.00
                  
                  
                  $
                  0.00
                  
                  
                  $
                  0.00Other
      comprehensive Income(Loss), net of tax:Foreign
      currency translation adjustments
                  
                  
                  (45,693
                  )
                  
                  
                  13,470
                  
                  
                  
                  (6,161
                  )
                  
                  
                  27,430
                  
                  
                  
                  3,286Total
      other comprehensive Income(Loss)
                  
                  $
                  (45,693
                  )
                  
                  $
                  13,470
                  
                  
                  
                  (6,161
                  )
                  
                  
                  27,430
                  
                  
                  $
                  3,286Comprehensive
      Income(Loss)
                  
                  $
                  168,710
                  
                  
                  $
                  345,093
                  
                  
                  $
                  62,862
                  
                  
                  $
                  175,029
                  
                  
                  $
                  132,738
  F-4
 
 FLURIDA
GROUP, INC.
 (A
Development Stage Enterprise)
 CONSOLIDATED
STATEMENT OF STOCKHOLDERS EQUITY
 FOR
THE PERIOD ENDED September 30, 2010
 
 DeficitAccumulated
                  
                  
                  AccumulatedAdditional
                  
                  
                  During
      the
                  
                  
                  Other
                  
                  
                  TotalCommon
      Stock
                  
                  
                  Paid-in
                  
                  
                  Development
                  
                  
                  Comprehensive
                  
                  
                  Stockholders'Shares
                  
                  
                  Amount
                  
                  
                  Capital
                  
                  
                  Stage
                  
                  
                  Income
      (Loss)
                  
                  
                  EquityNet
      loss for the year ended December 31 , 2006
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  (1,500
                  )
                  
                  
                  
                  
                  $
                  (1,500
                  )Balance,
      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 shareholder @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
      Loss for the period ended December 31, 2008
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  (194,079
                  )
                  
                  $
                  -
                  
                  
                  $
                  (194,079
                  )Balance,
      December 31, 2008
                  
                  
                  38,990,827
                  
                  
                  $
                  38,991
                  
                  
                  $
                  1,221,613
                  
                  
                  $
                  (214,698
                  )
                  
                  $
                  29,471
                  
                  
                  $
                  1,075,377Adjustment
      for Exchange rate changes
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  19,508
                  
                  
                  $
                  19,508Net
      Income for the year ended December 31, 2009
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  191,065
                  
                  
                  
                  
                  
                  
                  $
                  191,065Balance,
      December 31, 2009
                  
                  
                  38,990,827
                  
                  
                  $
                  38,991
                  
                  
                  $
                  1,221,613
                  
                  
                  $
                  (23,633
                  )
                  
                  $
                  48,979
                  
                  
                  $
                  1,285,950Adjustment
      for Exchange rate changes
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  (45,693
                  )
                  
                  $
                  (45,693
                  )Net
      Income for the year ended September 30, 2010
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  $
                  214,403
                  
                  
                  
                  
                  
                  
                  $
                  214,403Balance,
      September 30, 2010
                  
                  
                  38,990,827
                  
                  
                  $
                  38,991
                  
                  
                  $
                  1,221,613
                  
                  
                  $
                  190,770
                  
                  
                  $
                  3,286
                  
                  
                  $
                  1,454,660
  F-5
 
 FLURIDA
GROUP, INC.
 (A
Development Stage Enterprise)
 CONSOLIDATED
STATEMENT OF CASH FLOWS
 
 Cumulative
      fromNine Months Ended
                  
                  
                  Three Months Ended
                  
                  
                  December 19, 2006September 30
                  
                  
                  September 30
                  
                  
                  (Date of Inception)2010
                  
                  
                  2009
                  
                  
                  2010
                  
                  
                  2009
                  
                  
                  to September 30, 2010Operating
      Activities:
                  
                  Unaudited
                  
                  
                  Unaudited
                  
                  
                  Unaudited
                  
                  
                  Unaudited
                  
                  
                  UnauditedNet
      Income(Loss)
                  
                  $
                  214,403
                  
                  
                  $
                  331,623
                  
                  
                  $
                  69,023
                  
                  
                  $
                  147,599
                  
                  
                  $
                  190,770Adjustments
      to reconcile net income to net cash provided  by operating
      activities:Non-cash
      portion of share based legal fee expense
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  5,000Depreciation
      Expense
                  
                  
                  630
                  
                  
                  
                  -
                  
                  
                  
                  462
                  
                  
                  
                  -
                  
                  
                  
                  630Inventory
                  
                  
                  (444,553
                  )
                  
                  
                  (691,380
                  )
                  
                  
                  49,914
                  
                  
                  
                  (16,853
                  )
                  
                  
                  (1,698,422
                  )Account
      Receivable
                  
                  
                  (1,587,656
                  )
                  
                  
                  (1,500,615
                  )
                  
                  
                  (274,999
                  )
                  
                  
                  371,057
                  
                  
                  
                  (2,464,031
                  )Accrued
      Interest Receivable
                  
                  
                  (11,133
                  )
                  
                  
                  (3,691
                  )
                  
                  
                  (3,750
                  )
                  
                  
                  (3,691
                  )
                  
                  
                  (18,522
                  )Overpayment
      Credit
                  
                  
                  -
                  
                  
                  
                  
                  
                  
                  
                  15,129
                  
                  
                  
                  -
                  
                  
                  
                  -Deposit
                  
                  
                  (6,264
                  )
                  
                  
                  -
                  
                  
                  
                  (6,264
                  )
                  
                  
                  -
                  
                  
                  
                  (6,264
                  )Unearned
      Revenue
                  
                  
                  60,000
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  60,000Decrease
      Other Payable
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  (1,500
                  )Increase
      Account Payable
                  
                  
                  1,575,707
                  
                  
                  
                  2,970,966
                  
                  
                  
                  471,661
                  
                  
                  
                  462,886
                  
                  
                  
                  3,405,784Decrease
      Credit card Payable
                  
                  
                  (656
                  )
                  
                  
                  (1,269
                  )
                  
                  
                  -
                  
                  
                  
                  (1,532
                  )
                  
                  
                  -Net
      cash provided by operating activities
                  
                  $
                  (199,522
                  )
                  
                  $
                  1,105,634
                  
                  
                  $
                  321,176
                  
                  
                  $
                  959,466
                  
                  
                  $
                  (526,555
                  )Investing
      Activities:Purchase
      of Furniture and Equipment
                  
                  
                  (30,782
                  )
                  
                  
                  -
                  
                  
                  
                  (17,836
                  )
                  
                  
                  -
                  
                  
                  
                  (30,782
                  )Net
      cash provided by investing activities
                  
                  $
                  (30,782
                  )
                  
                  $
                  -
                  
                  
                  $
                  (17,836
                  )
                  
                  $
                  -
                  
                  
                  $
                  (30,782
                  )Financing
      Activities:Proceeds
      from issuance of common stock
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  90,698Loan
      to Supplier
                  
                  
                  (6,535
                  )
                  
                  
                  (278,091
                  )
                  
                  
                  (6,535
                  )
                  
                  
                  (278,091
                  )
                  
                  
                  (284,626
                  )Repay
      loans to shareholders
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  (25,066
                  )Proceeds
      from loan from shareholders
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  -
                  
                  
                  
                  1,191,472Net
      cash provided by financing activities
                  
                  $
                  (6,535
                  )
                  
                  $
                  (278,091
                  )
                  
                  $
                  (6,535
                  )
                  
                  $
                  (278,091
                  )
                  
                  $
                  972,478Effect
      of  Exchange Rate on Cash
                  
                  $
                  (45,693
                  )
                  
                  $
                  13,470
                  
                  
                  $
                  (6,161
                  )
                  
                  $
                  27,430
                  
                  
                  $
                  3,286Net
      increase (decrease) in cash and cash equivalents
                  
                  $
                  (282,532
                  )
                  
                  $
                  841,013
                  
                  
                  $
                  290,644
                  
                  
                  $
                  708,805
                  
                  
                  $
                  418,427Cash
      and cash equivalents at beginning of the period
                  
                  $
                  700,959
                  
                  
                  $
                  605,932
                  
                  
                  $
                  127,783
                  
                  
                  $
                  738,140
                  
                  
                  $
                  -Cash
      and cash equivalents at end of the period
                  
                  $
                  418,427
                  
                  
                  $
                  1,446,945
                  
                  
                  $
                  418,427
                  
                  
                  $
                  1,446,945
                  
                  
                  $
                  418,427
  F-6
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES 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 22 West Washington ST, Suite 1500, Chicago, IL
60602.
 
 Besides
USA operation, Flurida Group, Inc. also established one subsidiary in
Europe:
 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 closed its Flurida Qingdao China office in July, 2009.
 
 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.
 
 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.
  F-7
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
B – SIGNIFICANT ACCOUNTING POLICIES
 
 Principles of
Consolidation
 
 The
consolidated financial statements of the Company include the accounts of Flurida
Group USA 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 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.
 
 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 September 30, 2010, the company has furniture and equipments at a
cost of $30,782, and $630 of depreciation expense was recorded.
  F-8
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TOCONDENSEDCONSOLIDATED FINANCIAL
STATEMENTS
 
 NOTE
B – SIGNIFICANT ACCOUNTING POLICIES
 
 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.
 
 Accrued Interest
Receivable
 
 In July
1st,
2009, the company loan $278,090 to its main supplier Zhong Nan Fu Rui Mechanical
electronics Co., Ltd at interest rate of 5.31%, term July 1, 2009 to June 30,
2010.  On August 10, 2010, additional loan of $6,535.59 was advanced to
Zhong Nan Fu Rui Mechanical electronics Co., Ltd.  As of September 30,
2010, total of $18,522 accrued interest receivable with interest rate at 5.31%
was incurred.
 
 Unearned
Revenue
 
 One of
the customers prepaid the Company $ 60,000 for a design of refrigerator part,
which is the service income that the Company haven’t earned as of September 30,
2010.
 
 Account
Payable
 
 The
Company incurred accounts payable including professional fees, purchases, and
other service fee payables. As of September 30, 2010, the company has account
payable of 3,405,784, which included $ 2,888,154 for Zhong Nan Fu Rui, $ 395,998
for Chu Zhou Fu Da, $ 67,934 for Qiongdao Fu Bi Da, $ 14,278 for Shang Hai Fu Lu
International Trading, and $ 39,420 for US suppliers.
  F-9
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Revenues
 
 Revenues
include sales of appliance parts in Asia, Europe, and North
America.
  Revenues are
recognizedfrom product sales
upon shipment, which is the point in time when risk of loss is transferred to
the customer, net of estimated returns and allowances.
 
 Flurida
Group, Inc had total revenue of $ 3,077,322 in third quarter ended at September
30, 2010.
 
 From the
period of July 1 to September 30, 2010, the Company sold total quantity of
26,509 icemakers and 505,008 motors to, Electrolux USA, located at Charlotte
NCfor sales of $
1,778,346. The motors were manufactured and supplied by Zhong Nan Fu Rui; all
the motors were shipped out at FOB shipping point Qingdao, China.  And the
icemakers were manufactured and supplied by ChuZhou FuDa Mechanical &
Electronics Co., Ltd; all the icemakers were shipped out at FOB shipping point
Nanjing, China.
 
 The
Company sold total quantity of 30,240 motors to another US company, Master
Precision Global (MPG), a sub-assembler to Electrolux, for $117,936. The motors
were manufactured and supplied by Zhong Nan Fu Rui. and shipped out at FOB
shipping point at Qingdao, China.
 
 The
Company sold 997 icemakers to Electrolux –Australia for $28,773. The icemakers
were manufactured and supplied by Chu Zhou Fu Da Mechanical & Electronics;
all the icemakers were shipped out at FOB shipping point Nanjing,
China.
 
 The
Company also sold 3359 DAC Boxes to Electrolux –Sweden for $12,712. The DAC Box
were manufactured and supplied by Qingdao Fu Bi Da; all the DAC Boxes were
shipped out at FOB shipping point Qingdao, China.
 
 The
Company also sold 24,272 DAC Boxes, 22,464 Magnets, 17,920 Motors to Electrolux
– Hungry for total $174,158. The DAC Boxes, magnets and Motors were manufactured
and supplied by Zhong Nan Fu Rui, and Qingdao Fu Bi Da respectively; all the DAC
Boxes magnet, and motors were shipped out at FOB shipping point Qingdao,
China.
  F-10
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Revenues
(Continued)
 
 The
Company sold 17,714 DAC Boxes, 22,284 Magnets, 1,000 motors to Electrolux –Italy
for total $100,499. The DAC Boxes, magnets and Motors were manufactured and
supplied by Zhong Nan Fu Rui, and Qingdao Fu Bi Da respectively; all the DAC
Boxes magnets, and motors were shipped out at FOB shipping point Qingdao,
China.
 
 Also, the
company sold some related refrigerator appliance parts to Electrolux North
Carolina for $61,754. The parts were manufactured and supplied by Zhong Nan Fu
Rui, and were shipped out at FOB shipping point at Qingdao, China.
 
 In the
third quarter of 2010, the company sold total quantity of 221,184 pieces of
motors, to Stanco Metal Products for $651,636; the motors were manufactured and
supplied by Zhong Nan Fu Rui, and all of those parts were shipped out at FOB
shipping point at Qingdao, China.
 
 There was
also for parts sold to Zhong Nan Fu Rui for $139,321.
 
 The
company sold some other related refrigerator appliance parts for $ 12,186
worldwide; therefore, there was total $ 3,077,322 sales revenue for the period
of July 1 to September 30, 2010.
 
 Comprehensive
Income
 
 The
company’s comprehensive income is comprised of net income, unrealized gains and
losses on marketable securities classified foreign currency translation
adjustments, and unrealized gains and losses on derivative financial instruments
related to foreign currency hedging.
 
 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.
  F-11
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Payroll
Expense
 
 Flurida
Group USA began to have payroll for officers at January 2009.
 
 The
consolidated total payroll expense for the three month period ended September
30, 2010 was $99,589.  The payroll expenses details are listed as
follows:
 
 Three Months Ended
                    
                    
                    Three Months Ended
                    
                    
                    Three Months EndedSeptember 30, 2010
                    
                    
                    September 30, 2009
                    
                    
                    September 30, 2008Payroll
      Expense - ERHosing
      public accumulate. fund -ER
                    
                    
                    0.00
                    
                    
                    
                    0.00
                    
                    
                    
                    384.78Social  insurance-ER
                    
                    
                    0.00
                    
                    
                    
                    0.00
                    
                    
                    
                    1,275.06Payroll
      Expense - ER - Other
                    
                    
                    0.00
                    
                    
                    
                    0.00
                    
                    
                    
                    860.89State
      Unemployment Tax
                    
                    
                    0.00
                    
                    
                    
                    0.00
                    
                    
                    
                    0.00US
      Medicare Tax - ER
                    
                    
                    1,377.53
                    
                    
                    
                    1,748.12
                    
                    
                    
                    0.00US
      Social Security Tax -ER
                    
                    
                    3,211.58
                    
                    
                    
                    7,474.72
                    
                    
                    
                    0.00Total
      Payroll Expense - ER
                    
                    
                    4,589.11
                    
                    
                    
                    9,222.84
                    
                    
                    
                    2,520.73Payroll
      Expenses - EEFederal
      Tax Withholding
                    
                    
                    14,499.98
                    
                    
                    
                    19,111.46
                    
                    
                    
                    0.00Net
      Wage Payment-EE
                    
                    
                    72,760.85
                    
                    
                    
                    66,803.89
                    
                    
                    
                    12,651.64State
      Tax Withholding
                    
                    
                    3,150.00
                    
                    
                    
                    3,816.80
                    
                    
                    
                    0.00Housing
      public accumulate fund -EE
                    
                    
                    0.00
                    
                    
                    
                    0.00
                    
                    
                    
                    384.79Social
      Insurance-EE
                    
                    
                    0.00
                    
                    
                    
                    0.00
                    
                    
                    
                    432.90US
      Medicare Tax -EE
                    
                    
                    1,377.53
                    
                    
                    
                    1,748.12
                    
                    
                    
                    0.00US
      Net Salaries payment - EE
                    
                    
                    3,211.58
                    
                    
                    
                    15,025.83
                    
                    
                    
                    0.00US
      Social Security Tax - EE
                    
                    
                    0.00
                    
                    
                    
                    7,474.72
                    
                    
                    
                    0.00Payroll
      Expenses - EE - Other
                    
                    
                    0.00
                    
                    
                    
                    0.00
                    
                    
                    
                    0.00Total
      Payroll Expenses - EE
                    
                    
                    94,999.94
                    
                    
                    
                    113,980.82
                    
                    
                    
                    13,469.33Total
      Payroll Expenses
                    
                    
                    99,589.05
                    
                    
                    
                    123,203.66
                    
                    
                    
                    15,990.06
 
 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.
  F-12
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Payroll Expense
(Continue)
 
 Started
from January 2010, Flurida Group had salaries for officers Jianfeng Ding, Yaru
Huang, and Ying Zhong for $200,000, $70,000, 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.
 
 The nine
month period ending payroll expense was listed as follows:
 
 Flurida
Group Payroll Expense
 
 Nine Months Ended
                    
                    
                    Nine Months Ended
                    
                    
                    Nine Months EndedSeptember 30, 2010
                    
                    
                    September 30, 2009
                    
                    
                    September 30, 2008Payroll
      Expense - ERHosing
      public accumulate fund -ER
                    
                    
                    0.00
                    
                    
                    
                    361.48
                    
                    
                    
                    1,130.03Social  insurance-ER
                    
                    
                    0.00
                    
                    
                    
                    1,785.09
                    
                    
                    
                    3,744.56State
      Unemployment Tax
                    
                    
                    1,646.34
                    
                    
                    
                    0.00
                    
                    
                    
                    0.00US
      Medicare Tax - ER
                    
                    
                    4,197.49
                    
                    
                    
                    2,787.27
                    
                    
                    
                    0.00US
      Social Security Tax -ER
                    
                    
                    15,269.34
                    
                    
                    
                    11,918.07
                    
                    
                    
                    0.00Payroll
      Expense - ER - Other
                    
                    
                    0.00
                    
                    
                    
                    916.62
                    
                    
                    
                    2,624.42Total
      Payroll Expense - ER
                    
                    
                    21,113.17
                    
                    
                    
                    17,768.53
                    
                    
                    
                    7,499.01Payroll
      Expenses - EEFederal
      Tax Withholding
                    
                    
                    43,858.37
                    
                    
                    
                    32,944.81
                    
                    
                    
                    0.00Housing
      public accumulate fund -EE
                    
                    
                    0.00
                    
                    
                    
                    361.47
                    
                    
                    
                    1,130.03Net
      Wage Payment-EE
                    
                    
                    216,570.34
                    
                    
                    
                    132,393.07
                    
                    
                    
                    34,466.92Social
      Insurance-EE
                    
                    
                    0.00
                    
                    
                    
                    606.06
                    
                    
                    
                    1,271.29State
      Tax Withholding
                    
                    
                    9,584.40
                    
                    
                    
                    5,966.80
                    
                    
                    
                    0.00US
      Medicare Tax -EE
                    
                    
                    4,197.49
                    
                    
                    
                    2,787.27
                    
                    
                    
                    0.00US
      Net Salaries payment - EE
                    
                    
                    0.00
                    
                    
                    
                    15,025.83
                    
                    
                    
                    0.00US
      Social Security Tax - EE
                    
                    
                    15,269.34
                    
                    
                    
                    11,918.07
                    
                    
                    
                    0.00Payroll
      Expenses - Europe
                    
                    
                    0.00
                    
                    
                    
                    0.00
                    
                    
                    
                    31,632.82Total
      Payroll Expenses - EE
                    
                    
                    289,479.94
                    
                    
                    
                    202,003.38
                    
                    
                    
                    68,501.06Total
      Payroll Expenses
                    
                    
                    310,593.11
                    
                    
                    
                    219,771.91
                    
                    
                    
                    76,000.07
  F-13
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Operating
Expense
 
 Below
table list the detail selling, general and administrative expenses for nine
months period from January 1 to September 30, 2010 and three months period
ending September 30, 2010, 2009 were listed as follows:
 
 Nine Months Ended
                      
                      
                      Nine Months Ended
                      
                      
                      Three Months Ended
                      
                      
                      Three Months EndedSeptember 30, 2010
                      
                      
                      September 30, 2009
                      
                      
                      September 30, 2010
                      
                      
                      September 30, 2009ExpenseAdministration
      Expense
                      
                      
                      9,090.75
                      
                      
                      
                      135.00
                      
                      
                      
                      3,273.05
                      
                      
                      
                      0.00Bank
      Service Charges
                      
                      
                      1,059.68
                      
                      
                      
                      972.57
                      
                      
                      
                      355.58
                      
                      
                      
                      343.02Business
      operation tax
                      
                      
                      578.65
                      
                      
                      
                      2,869.80
                      
                      
                      
                      0.00
                      
                      
                      
                      0.00Business
      Registration
                      
                      
                      973.50
                      
                      
                      
                      650.00
                      
                      
                      
                      0.00
                      
                      
                      
                      0.00Certification
                      
                      
                      51,129.21
                      
                      
                      
                      39,446.76
                      
                      
                      
                      16,208.27
                      
                      
                      
                      39,446.76Commission
                      
                      
                      32,968.93
                      
                      
                      
                      0.00
                      
                      
                      
                      11,703.20
                      
                      
                      
                      0.00Computer
      and Internet Expenses
                      
                      
                      1,027.43
                      
                      
                      
                      2,664.51
                      
                      
                      
                      520.18
                      
                      
                      
                      2,664.51Credit
      Card Finance Charge
                      
                      
                      234.95
                      
                      
                      
                      0.00
                      
                      
                      
                      185.00
                      
                      
                      
                      0.00Dues
      and Subscriptions
                      
                      
                      286.00
                      
                      
                      
                      150.00
                      
                      
                      
                      286.00
                      
                      
                      
                      0.00Flurida
      Europe Operating Exp
                      
                      
                      26,165.49
                      
                      
                      
                      17,963.12
                      
                      
                      
                      4,829.24
                      
                      
                      
                      9,035.12fuel
      charge
                      
                      
                      871.06
                      
                      
                      
                      309.00
                      
                      
                      
                      843.14
                      
                      
                      
                      309.00GIFT
      AND PROMOTION
                      
                      
                      6,982.78
                      
                      
                      
                      93.24
                      
                      
                      
                      4,542.04
                      
                      
                      
                      93.24Industry
      Show
                      
                      
                      100.00
                      
                      
                      
                      17,517.08
                      
                      
                      
                      0.00
                      
                      
                      
                      622.08Insurance
      Expense
                      
                      
                      1,011.53
                      
                      
                      
                      9,223.10
                      
                      
                      
                      980.50
                      
                      
                      
                      3,423.57Meals
      and Entertainment
                      
                      
                      4,418.75
                      
                      
                      
                      2,340.84
                      
                      
                      
                      2,198.27
                      
                      
                      
                      719.33Office
      Supplies
                      
                      
                      18,562.82
                      
                      
                      
                      3,286.11
                      
                      
                      
                      13,654.60
                      
                      
                      
                      169.89Other
      Expense
                      
                      
                      0.00
                      
                      
                      
                      2,132.55
                      
                      
                      
                      0.00
                      
                      
                      
                      1,673.06Parking
      fee
                      
                      
                      236.80
                      
                      
                      
                      90.00
                      
                      
                      
                      147.80
                      
                      
                      
                      0.00Total
      Payroll Expenses
                      
                      
                      310,593.11
                      
                      
                      
                      219,771.91
                      
                      
                      
                      99,589.05
                      
                      
                      
                      123,203.66Postage & Shipping
                      
                      
                      3,425.13
                      
                      
                      
                      3,234.71
                      
                      
                      
                      1,875.66
                      
                      
                      
                      815.50Total
      Professional Fees
                      
                      
                      60,032.77
                      
                      
                      
                      51,615.20
                      
                      
                      
                      1,494.00
                      
                      
                      
                      7,288.20Rent
      Expense
                      
                      
                      22,618.19
                      
                      
                      
                      20,271.96
                      
                      
                      
                      12,358.19
                      
                      
                      
                      11,641.96Repairs
      and Maintenance
                      
                      
                      1,529.26
                      
                      
                      
                      0.00
                      
                      
                      
                      1,058.53
                      
                      
                      
                      0.00Service
      Cost
                      
                      
                      5,963.50
                      
                      
                      
                      0.00
                      
                      
                      
                      963.50
                      
                      
                      
                      0.00Telephone
      Expense
                      
                      
                      6,147.73
                      
                      
                      
                      3,935.77
                      
                      
                      
                      2,208.29
                      
                      
                      
                      887.18Total
      Transfer Agent Service
                      
                      
                      940.00
                      
                      
                      
                      1,450.00
                      
                      
                      
                      300.00
                      
                      
                      
                      200.00Total
      Travel Expense
                      
                      
                      66,333.25
                      
                      
                      
                      35,375.14
                      
                      
                      
                      28,697.92
                      
                      
                      
                      11,497.50Utilities
                      
                      
                      2,037.40
                      
                      
                      
                      634.42
                      
                      
                      
                      -98.06
                      
                      
                      
                      183.12Total
      Expense
                      
                      
                      635,318.67
                      
                      
                      
                      436,132.79
                      
                      
                      
                      208,173.95
                      
                      
                      
                      214,216.70
  F-14
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 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.
 
 As of
September 30, 2010, there were 36,951 icemakers and 36,288 motors in Electrolux
Juarez warehouse for $542,298 as consignment inventories.
 
 Also,
there were 150,984 motors in Electrolux Anderson warehouse for $396,255 as
consignment inventories.
 
 Also,
there are 12,015 pieces icemakers and 239,152 pieces motors in transit
inventories for $ 759,869.
 
 As a
result, the company had total of $1,698,422 inventory as of September 30,
2010.
  F-15
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Recent Accounting
Pronouncements
 
 Business Combinations —The
new guidance on business combinations retains the underlying concepts of the
previously issued standard in that the acquirer of a business is required to
account for the business combination at fair value. As with previous guidance,
the assets and liabilities of the acquired business are recorded at their fair
values at the date of acquisition. The excess of the purchase price over the
estimated fair values are recorded as goodwill. The new pronouncement results in
some changes to the method of applying the acquisition method of accounting for
business combinations in a number of significant aspects. Under the new
guidance, all acquisition costs are expensed as incurred and in-process research
and development costs are recorded at fair value as an indefinite-lived
intangible asset. Prior to the adoption, in-process research and development
costs were immediately expensed and acquisition costs were capitalized. Further,
the new guidance generally requires restructuring charges associated with a
business combination to be expensed subsequent to the acquisition
date.
 
 Fair Value Measurements and
Disclosures — The pronouncements define fair value, establish
guidelines for measuring fair value, and expand disclosures regarding fair value
measurements.
 
 Derivative Instruments and Hedging
Activities — The pronouncement requires additional disclosures about
the objectives of derivative instruments and hedging activities, the method of
accounting for such instruments, and a tabular disclosure of the effects of such
instruments and related hedged items on Financial Statements. The pronouncement
does not change the accounting treatment for derivative
instruments.
 
 Variable Interest Entities and
Transfers of Financial Assets and Extinguishments of Liabilities — The
pronouncement on transfers of financial assets and extinguishments of
liabilities removes the concept of a qualifying special-purpose entity and
removes the exception from applying variable interest entity accounting to
qualifying special-purpose entities. The new guidance on variable interest
entities requires an entity to perform an ongoing analysis to determine whether
the entity’s variable interest or interests give it a controlling financial
interest in a variable interest entity. The pronouncements are effective
for fiscal years beginning after November 15, 2009.
  Management
does not anticipate that the adoption of these standards will have a material
impact on the financial statements.
  F-16
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
C – RELATED PARTY TRANSACTIONS
 
 Common Shares Issued to
Executive and Non-Executive Officers and Directors
 
 As of
September 30, 2010, total 30,129,960 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
                    
                    
                    26,997,760
                    
                    
                    
                    323,998
                    
                    
                    
                    69.24
                    %Total
                    
                    
                    30,129,760
                    
                    
                    $
                    635,198
                    
                    
                    
                    77.26
                    %
 
 * Based
on total issued shares as of September 30, 2010: 38,990,827.
 
 Cost of Goods
Sold
 
 The
Company’s purchase is primarily from suppliers, Zhong Nan Fu Rui Mechanical
Electronics Manufacturing Co., Ltd., Qingdao Fu Bi Da, Chuzhou Fuda, and
Shanghai Fulu, all are 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., all the entities,
Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co., Ltd., and Qingdao Fu
Bi Da, Chuzhou Fuda, and Shanghai Fulu are under common control according to
EITF 02-5.
 
 The
products the Company sold were manufactured in China primarily by Zhong Nan Fu
Rui Mechanical Electronics Manufacturing Co., Ltd. (“Zhong Nan Fu Rui”), Qingdao
Fu Bi Da, and Chuzhou Fuda.  Zhong Nan Fu Rui was established in 2005
specializing in home appliance components and subassemblies, Qingdao Fu Bi Da
was established in 2003, and Chuzhou Fuda was established in
2009.
  F-17
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
C – RELATED PARTY TRANSACTIONS
 
 Cost of Goods
Sold
 
 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
  F-18
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
C – RELATED PARTY TRANSACTIONS (Continued)
 
 Cost of Goods Sold
(Continued)
 
 principles
in USA.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 Fubida Electronics
Co., Ltd, Shanghai Fulu International Trading Co., Ltd, and Chuzhou Fuda
Mechanical and Electronics Co., Ltd on purchase orders basis.
 
 Qingdao
Fubida Electronics Co., Ltd, owned 100% indirectly by Jianfeng Ding and Yaru
Huang, husband and wife. Qingdao Fubida Electronics Co., Ltd is a manufacturing
company, and it was established in 2003 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. 14units
injection molding machine up to 600 metric tons.
 
 Chuzhou
Fuda  Mechanical & Electronics Co., Ltd. owned 100% indirectly by
Jianfeng Ding and Yaru Huang, husband and wife is an appliance components and
sub-assemblies manufacturer established on March 18, 2008. Chuzhou Fuda is
located in Chuzhou City, Anhui Province, China. The plant space is around
100,000sq. ft. with 18 molding machine up to 800 metric ton and 6 assemblies
lines for appliance components and assemblies.
 
 Shanghai
Fulu International Trading Co., Ltd. a trading company established in 2007,
located at Shanghai, China, 100% owned indirectly by Jianfeng Ding and Yaru
Huang.
  F-19
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
C – RELATED PARTY TRANSACTIONS (Continued)
 
 Cost of Goods Sold
(Continued)
 
 For the
three months period end September 30, 2010, Flurida Group, Inc. purchased
icemakers and motors from Zhong Nan Fu Rui at total cost of $ 1,980,336 for FOB
shipping point at Qingdao, China.  The total parts price from Zhong Nan Fu
Rui consists of 80% of direct manufacturing materials and labor, 10% of
allocated manufacturing overhead, and 10% of profit margin.
 
 For the
three months period end September 30, 2010, The Company purchased icemakers from
Chuzhou Fuda Mechanical and Electronics Co., Ltd. at total cost of $395,998 for
FOB shipping point at Nanjing, China.
 
 Flurida
Group, Inc. also purchased motors, refrigerator relating parts, and DAC boxes
from Qingdao Fubida Electronics Co., Ltd. at total cost of $174,154 for FOB
shipping point at Qingdao, China, for the three months period end September 30,
2010.
 
 In
addition, Flurida Group, Inc. purchased magnets from Shanghai Fulu International
Trading Co., Ltd. a trading company established in 2007, located at Shanghai,
China, 100% owned indirectly by Jianfeng Ding and Yaru Huang, at total cost of $
20,928 for FOB shipping point at Shanghai, China for three months period end
September 30, 2010.
 
 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, and
the company also needed to pay some freight expenses. All of the costs were $
124,196 for three months period end September 30, 2010.
 
 For the
period ended June 30, 2010, the company had $ 1,748,336
inventories.
 
 The
company had total purchase of $2,695,612 for the period of July 1 to September
30, 2010; and had inventories of $ 1,698,422 as of September 30,
2010.
 
 Therefore,
there was total of $ 2,745,526 cost of good sold for the three months period
ended September 30, 2010.
  F-20
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
C – RELATED PARTY TRANSACTIONS (Continued)
 
 Loan to
Supplier
 
 At July
1st,2009, Flurida Group, Inc. loan $278,091 to the company’s primary
supplier, Zhong Nan Fu Rui. The outstanding balance bears interest at 5.31%,
pursuant to a written agreement, for the term from July 1st 2009 to
June 30th 2010.
This receivable was due on demand.  At July 1st 2010,
the loan agreement is renewed for another year by both parties at an interest
rate of 5.31%.
 
 On August
6, 2010, the Company advanced additional $6,535.59 to related party supplier,
Zhong Nan Fu Rui for the same interest of $5.31% without written
agreement.  The payment term is on demand.
 
 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 $ (194,079). Therefore, the total
stockholders’ equity balance at December 31, 2008 was $1,075,377.
 
 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 September 30, 2010. 
..
 
 Therefore,
as of September 30, 2010 total shares issued and outstanding are
38,990,827.
  F-21
 
 FLURIDA
      GROUP, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL
      STATEMENTS
 
 NOTE
E – GOING CONCERN
 
 The
Company’s short operating history and financial resources 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.  From the period July 1 to September 2010, the Company
generated sales revenue of $3.077,322, and cumulative net income of $190,770
from December 19, 2006 (date of inception) through September 30, 2010.  The
Company’s single most concentrated customer is Electrolux located in various
countries.  If Electrolux discontinue the purchase which may be very
unlikely in the near future, the Company may face the ability to continue as a
going concern.  However, due to the close relationship between the Company
and its suppliers, Zhong Nan Fu Rui and Qingdao Fubida Electronics Co., which
are 100% owned by the founder, Jianfeng Ding, Zhong Nan Fu Rui and Qingdao
Fubida Electronics Co.’s current customers can be served by the Company for the
same quality of products and services.  Besides, as of September 30, 2010,
the cash and cash equivalent balance was $418,427, 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
low.
  F-22




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 primarily the sale of appliance parts in Asia, Europe, North and
South America and Australia.  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”).




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 September 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.





Flurida
Group also purchased the products from suppliers, Qingdao Fubida Electronics
Co., Ltd, Chuzhou Fuda Mechanical & Electronics Co., Ltd. and Shanghai Fulu
International Trading Co., Ltd on a purchase orders basis.





Qingdao
Fubida Electronics Co., Ltd, owned 100% indirectly by Jianfeng Ding and Yaru
Huang, husband and wife. Qingdao Fubida Electronics Co., Ltd is a manufacturing
company, and it was established in 2003 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. 14units
injection molding machine up to 600 metric tons.





Chuzhou
Fuda  Mechanical & Electronics Co., Ltd. owned 100% indirectly by
Jianfeng Ding and Yaru Huang, husband and wife is an appliance components and
sub-assemblies manufacturer established on March 18, 2008.  Chuzhou
Fuda is located in Chuzhou City, Anhui Province, China. The plant space is
around 100,000sq. ft. with 18 molding machine up to 800 metric ton and 6
assemblies lines for appliance components and assemblies. Chuzhou Fuda is
expanding its facility and with plant building Phase II and Phase III under
construction.





Shanghai
Fulu International Trading Co., Ltd. a trading company established in 2007,
located at Shanghai, China, 100% owned indirectly by Jianfeng Ding and Yaru
Huang.





We mainly
sell 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.


3





o
            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.





o
            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.  Flurida Group Inc’s motor part is designed and
      specified for the refrigerators or freezers made by Electrolux North
      America, an US company with its headquarter located at Charlotte, NC.
      Flurida also supplies the motors and motor assemblies to Electrolux Europe
      facilities in Italy, Hungary.





Results of
Operations





For the three months ended
September 30, 2010 vs. September 30, 2009.





Revenue





Flurida
Group, Inc had total revenue of $3,077,322 in three months ended at September
30, 2010, compared with the three months revenue of $ 3,222,445 of
2009.





From the
period of July 1 to September 30, 2010, the Company sold total quantity of
26,509 icemakers and 505,008 motors to, Electrolux USA, located at Charlotte NC
for sales of $ 1,778,346. The motors were manufactured and supplied by Zhong Nan
Fu Rui; all the motors were shipped out at FOB shipping point Qingdao, China.
And the icemakers were manufactured and supplied by ChuZhou FuDa Mechanical
& Electronics Co., Ltd; all the icemakers were shipped out at FOB shipping
point Nanjing, China.




The
Company sold total quantity of 30,240 motors to another US company, Master
Precision Global (MPG), a sub-assembler to Electrolux, for $117,936. The motors
were manufactured and supplied by Zhong Nan Fu Rui. and shipped out at FOB
shipping point at Qingdao, China.




The
Company sold 997 icemakers to Electrolux –Australia for $28,773. The icemakers
were manufactured and supplied by Chu Zhou Fu Da Mechanical & Electronics;
all the icemakers were shipped out at FOB shipping point Nanjing,
China.





The
Company also sold 3359 DAC Boxes to Electrolux –Sweden for $12,712. The DAC Box
were manufactured and supplied by Qingdao Fu Bi Da; all the DAC Boxes were
shipped out at FOB shipping point Qingdao, China.





The
Company also sold 24,272 DAC Boxes, 22,464 Magnets, 17,920 Motors to Electrolux
– Hungry for total $174,158. The DAC Boxes, magnets and Motors were manufactured
and supplied by Zhong Nan Fu Rui, and Qingdao Fu Bi Da respectively; all the DAC
Boxes magnet, and motors were shipped out at FOB shipping point Qingdao,
China.





The
Company sold 17,714 DAC Boxes, 22,284 Magnets, 1,000 motors to Electrolux –Italy
for total $100,499. The DAC Boxes, magnets and Motors were manufactured and
supplied by Zhong Nan Fu Rui, and Qingdao Fu Bi Da respectively; all the DAC
Boxes magnets, and motors were shipped out at FOB shipping point Qingdao,
China.


4





Also, the
company sold some related refrigerator appliance parts to Electrolux North
Carolina for $61,754. The parts were manufactured and supplied by Zhong Nan Fu
Rui, and were shipped out at FOB shipping point at Qingdao, China.





In the
third quarter of 2010, the company sold total quantity of 221,184 pieces of
motors, to Stanco Metal Products for $651,636; the motors were manufactured and
supplied by Zhong Nan Fu Rui, and all of those parts were shipped out at FOB
shipping point at Qingdao, China.





There was
also for parts sold to Zhong Nan Fu Rui for $139,321.





The
company sold some other related refrigerator appliance parts for $ 12,186
worldwide; therefore, there was total $ 3,077,322 sales revenue for the period
of July 1 to September 30, 2010.





In
summary, for the three months ended September 30, 2010, the Company incurred the
total revenue of $ 3,077,322 and cost of goods sold $ 2,745,526 respectively.
The relatively reduced sales revenue compared with the 2009 third quarter was
due to the decrease consignment sales to Electrolux USA and Electrolux Mexico’s
for the products of icemakers and motors.




Cost of
Revenue





Our Costs
of Goods Sold, as we expected, 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.




The
Company’s purchases are primarily from the 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 being
husband and wife, who 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.





The
products the Company will 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 subassemblies manufacturing, and located in Qingdao City,
Shandong Province, China.  On September 18, 2007, amended September
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.


5





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 operate independently.  Zhong Nan Fu
Rui, as a Chinese local manufacturer, records 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 not 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 is the fair market price, or comparable to what
the Flurida would have paid a non-related party in market price, per the
agreement described above.  Flurida Group, Inc. will adopt the
first-in and first-out inventory system according to generally accepted
accounting principles in USA.





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 Fubida Electronics
Co., Ltd, Shanghai Fulu International Trading Co., Ltd, and Chuzhou Fuda
Mechanical and Electronics Co., Ltd on purchase orders basis.




Qingdao
Fubida Electronics Co., Ltd, owned 100% indirectly by Jianfeng Ding and Yaru
Huang, husband and wife. Qingdao Fubida Electronics Co., Ltd is a manufacturing
company, and it was established in 2003 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. 14units
injection molding machine up to 600 metric tons.


Chuzhou
Fuda  Mechanical & Electronics Co., Ltd. owned 100% indirectly by
Jianfeng Ding and Yaru Huang, husband and wife is an appliance components and
sub-assemblies manufacturer established on March 18, 2008. Chuzhou Fuda is
located in Chuzhou City, Anhui Province, China. The plant space is around
100,000sq. ft. with 18 molding machine up to 800 metric ton and 6 assemblies
lines for appliance components and assemblies.




Shanghai
Fulu International Trading Co., Ltd. a trading company established in 2007,
located at Shanghai, China, 100% owned indirectly by Jianfeng Ding and Yaru
Huang.




For the
three months period end September 30, 2010, Flurida Group, Inc. purchased
icemakers and motors from Zhong Nan Fu Rui at total cost of $ 1,980,336 for FOB
shipping point at Qingdao, China. The total parts price from Zhong Nan Fu Rui
consists of 80% of direct manufacturing materials and labor, 10% of allocated
manufacturing overhead, and 10% of profit margin.




6




For the
three months period end September 30, 2010, The Company purchased icemakers from
Chuzhou Fuda Mechanical and Electronics Co., Ltd. at total cost of $395,998 for
FOB shipping point at Nanjing, China.




Flurida
Group, Inc. also purchased motors, refrigerator relating parts, and DAC boxes
from Qingdao Fubida Electronics Co., Ltd. at total cost of $174,154 for FOB
shipping point at Qingdao, China, for the three months period end September 30,
2010.




In
addition, Flurida Group, Inc. purchased magnets from Shanghai Fulu International
Trading Co., Ltd. a trading company established in 2007, located at Shanghai,
China, 100% owned indirectly by Jianfeng Ding and Yaru Huang, at total cost of $
20,928 for FOB shipping point at Shanghai, China for three months period end
September 30, 2010.




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, and
the company also needed to pay some freight expenses. All of the costs were $
124,196 for three months period end September 30, 2010.




For the
period ended September 30, 2010, the company had $ 1,748,336
inventories.





The
company had total purchase of $2,695,612 for the period of July 1 to September
30, 2010; and had inventories of $ 1,698,422 as of September 30,
2010.




Therefore,
there was total of $ 2,745,526 cost of good sold for the three months period
ended September 30, 2010 compared with $ 2,865,007 cost of good sold for the
three months period ended September 30, 2009.





Expense





Our
operating expenses consist of selling, general and administrative
expenses.





For the
three months period ended September 30, 2010 and 2009, the company had a total
of $208,173 and $214,217 operating expenses, respectively. There was slight
decrease of selling, general and administrative due to the payroll decrease in
3rd
quarter payroll expenses from $123,203 in the three months ended September 30,
2009 vs. $99,589 in the three months ended September 30, 2010. Three month
payroll expense decrease may be due to the office assistant's left in USA's
office, her left caused the temporarily payroll expense decrease.  Now
after hire a new assistant, in the future the payroll expense may be expected
more expensive.




We expect
selling, general, and administrative expenses to increase in future periods as
we initiate a number of marketing and promotional activities.





For the nine months ended
September 30, 2010 vs. September 30, 2009.





Revenue





We had $
8,515,125 revenue for the nine months ended September 30, 2010, versus
$7,767,522 for the nine months ended September 30, 2009, increased by 9 %
compared with the same nine months period of 2009.





As of
September 30, 2010, the Company incurred the total revenue of $8,276,672 which
is included $3,251,138 from 2nd
quarter, and $ 2,186,665 from 1st quarter
2010.




7




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.





Our Cost
of Goods Sold for the nine months ended September 30, 2010 was $ 7,618,019 and
$7,007,089 compared with the nine months period ended September 30, 2009. The
Cost of Goods Sold was increased by 8.7 % comparable with the compared with the
same nine months period of 2009.





Accounts
Receivable





Our
accounts receivable for the period ended September 30, 2010 was $ 2,464,031, and
$1,980,046 compared with the nine months period ended September 30, 2009. The
significant increase of accounts receivable was due to the increase of 90-day
terms consignment sales with our customer, Electrolux. At such 90-days terms, we
need to ship our products to Electrolux sites, then we can recognize our
revenues by either Electrolux utilize our products or wait for 90 days. After
the sales revenue recognition, Electrolux still made payment in significant slow
paces, so that we accumulated increased accounts receivables.




Accounts
Payable





Our
accounts payable for the period ended September 30, 2010 was $ 3,405,784, and $
3,597,834 compared with the period ended September 30, 2009.




Expense





Our
operation expenses mainly consist of selling, general and administrative
expenses.





We had
$635,948 in operation expense in the nine months ended September 30, 2010 vs.
$436,133 for the nine months ended September 30, 2010, increase of $199,815
for the operating expenses.  The primary reasons for this increase
were specify by modifying the following: increases in payroll expenses from
$219,772 in the nine months ended September 30, 2009 vs. $310,593 in the
nine months ended September 30, 2010, and increases in travel expenses from
$35,375 in the nine months ended September 30, 2009 vs. $66,333 in the nine
months ended September 30, 2010. In addition, in 2010, the Company incurred
additional selling expense for commission expense of $32,969, compared with nine
month period ended September 30, 2009.




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.





Income
Taxes were estimated and accrued based on the income tax rate estimation. The
income taxes of $ 54,474, was estimated and accrued.





Net Income





As a
result of the foregoing, we incurred a net income of $ 214,403 for the nine
month period ended September 30, 2010 and net income of $331,623 for the nine
month period ended September 30, 2009.


8





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, in September 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 6.5 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.





Liquidity
and Capital Resources





At
      September 30
                  
                  
                  At
      September 302010
                  
                  
                  2009Current
      Ratio
                  
                  
                  1.42
                  
                  
                  
                  2.76Cash
                  
                  $
                  418,427
                  
                  
                  $
                  1,446,945Woking
      Capital
                  
                  $
                  1,424,508
                  
                  
                  $
                  1,103,820Total
      Assets
                  
                  $
                  4,920,444
                  
                  
                  $
                  1,731,957Total
      Liabilities
                  
                  $
                  3,465,784
                  
                  
                  $
                  628,137Total
      Equity
                  
                  $
                  1,454,660
                  
                  
                  $
                  1,103,820Total
      Debt/Equity
                  
                  
                  2.38
                  
                  
                  
                  0.57


*Current
Ratio = Current Assets /Current Liabilities





** Total
Debt / Equity = Total Liabilities / Total Shareholders Equity.





The
Company had cash and cash equivalents of $ 418,427 at September 30, 2010 and the
working capital of $ 1,424,508 .





The total
debt of $ 3,465,784 for September 30, 2010 that is included the amount of $
3,405,784 accounts payable and $60,000 unearned revenue.




Our
independent auditor has indicated that there is substantial doubt about our
ability to continue as a going concern due to the Company’s short operating
history and heavy concentration of customers. The Company’s short operating
history and financial resources 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. The Company’s single
most concentrated customer is Electrolux located in various countries. If
Electrolux discontinue the purchase which we believe may be unlikely but could
occur in near future, the Company may face the ability to continue as a going
concern. However, from the period January to September 2010, the Company
generated sales revenue of $
8,515,125, and cumulative net income of $ 190,770 from December 19, 2006 (date
of inception) through September 30, 2010, and further, as of September 30, 2010,
the cash and cash equivalent balance was$ 418,427. Thus, the management believes
that the revenues will be generated and its cash flows will be maintained to
cover its operational costs for the next 12 months.




9




Item
3. Quantitative and Qualitative Disclosure about Market Risk





Not
applicable.




Item
4. Controls and Procedures.





Evaluation of Disclosure
Controls and Procedures





The
Company maintains disclosure controls and procedures (as defined in Rule
13a-15(e) under the Securities Exchange Act) that are designed to ensure
that information required to be disclosed in the Company’s Securities Exchange
Act reports is recorded, processed, summarized and reported within the time
periods specified in SEC rules and forms, and that such information is
accumulated and communicated to the Company’s management, including its Chief
Executive Officer and Chief Financial Officer, as appropriate, to allow timely
decisions regarding required disclosure.




The
Company’s management, with the participation of the Company’s Chief Executive
Officer and Chief Financial Officer, has evaluated the effectiveness of the
Company’s disclosure controls and procedures as of the end of the period covered
by this report. Based upon that evaluation, the Chief Executive Officer and the
Chief Financial Officer have concluded that, as of the end of the period covered
by this report, the Company’s disclosure controls and procedures were
effective.




Changes in Internal Control
over Financial Reporting




There
have not been any changes in the Company’s internal control over financial
reporting (as such term is defined in Rule 13a-15(f) under the
Securities Exchange Act) during the fiscal quarter ended September 30, 2010 that
have materially affected, or are reasonably likely to materially affect, the
Company’s internal control over financial reporting.




PART
II — OTHER INFORMATION




Item
1. Legal Proceedings.





None.


10


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 September 30, 2010.




(b)                 Use of
Proceeds.





The
Registrant did not sell any registered securities during the three months ended
September 30, 2010.





Item
3. Defaults Upon Senior Securities





None.





Item
4. (Removed and Reserved).




Item
5. Other Information.





Not
applicable.




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.


11


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
                
                November
      20, 2010
                
                /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
                
                November 20, 2010/s/ Yaru Hang
                
                Yaru Hang
                
                Principal Financial Officer and
                  Principal Accounting Officer
                
                November 20, 2010


12


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.


13