# EDGAR Filing Document

**Accession Number:** 0001310630
**File Stem:** 0001493152-23-003862
**Filing Date:** 2023-2
**Character Count:** 88271
**Document Hash:** cac58f7de54d0a17731948434aafac1f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-003862.hdr.sgml**: 20230207

**ACCESSION NUMBER**: 0001493152-23-003862

**CONFORMED SUBMISSION TYPE**: 10-Q/A

**PUBLIC DOCUMENT COUNT**: 62

**CONFORMED PERIOD OF REPORT**: 20220331

**FILED AS OF DATE**: 20230207

**DATE AS OF CHANGE**: 20230207

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** China Foods Holdings Ltd.
- **CENTRAL INDEX KEY:** 0001310630
- **STANDARD INDUSTRIAL CLASSIFICATION:** MEDICINAL CHEMICALS & BOTANICAL PRODUCTS [2833]
- **IRS NUMBER:** 910974149
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32522
- **FILM NUMBER:** 23595762

**BUSINESS ADDRESS:**
- **STREET 1:** SUITE 3102, EVERBRIGHT CENTER
- **STREET 2:** 108 GLOUCESTER ROAD
- **CITY:** WANCHAI
- **STATE:** K3
- **ZIP:** 0000
- **BUSINESS PHONE:** 852-3618-8608

**MAIL ADDRESS:**
- **STREET 1:** SUITE 3102, EVERBRIGHT CENTER
- **STREET 2:** 108 GLOUCESTER ROAD
- **CITY:** WANCHAI
- **STATE:** K3
- **ZIP:** 0000

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** China Foods Holdings, Ltd.
- **DATE OF NAME CHANGE:** 20190513

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Trafalgar Resources, Inc.
- **DATE OF NAME CHANGE:** 20041203

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q/A**

(**Amendment No: 1)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended **March 31, 2022** or

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from __________to _________

**<u>001-32522</u>**

Commission file number

**<u>China Foods Holdings Ltd.</u>**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **84-1735478** |
| State or other jurisdiction <br> of incorporation or organization | (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| Room 2301A, China Resources Building,<br> 26 Harbour Road,<br> Wanchai, Hong Kong | **0000** |
| (Address of principal executive offices) | (Zip Code) |

---

**(852) 3618-8608**

Registrant's telephone number, including area code

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically on its corporate Web site, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ 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," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☐ Smaller reporting company ☒ <br> Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS:

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date.

---

| | |
|:---|:---|
| **Class** | **Outstanding May 13, 2022** |
| Common Stock, with $0.0001 par value | 20,252,309 shares |

---

**NOTES REGARDING OUR COMPANY**

**Forward Looking Statements**

This periodic report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive positions, growth opportunities for existing products, plans and objectives of management. Statements in this periodic report that are not historical facts are hereby identified as forward-looking statements. Our Company and our representatives may from time to time make written or oral statements that are "forward-looking," including statements contained in this Quarterly Report and other filings with the Securities and Exchange Commission and in reports to our Company's stockholders. Management believes that all statements that express expectations and projections with respect to future matters, as well as from developments beyond our Company's control including changes in global economic conditions are forward-looking statements within the meaning of the Act. These statements are made on the basis of management's views and assumptions, as of the time the statements are made, regarding future events and business performance. There can be no assurance, however, that management's expectations will necessarily come to pass. Factors that may affect forward-looking statements include a wide range of factors that could materially affect future developments and performance, including the following:

Changes in Company-wide strategies, which may result in changes in the types or mix of businesses in which our Company is involved or chooses to invest; changes in U.S., global or regional economic conditions; changes in U.S. and global financial and equity markets, including significant interest rate fluctuations, which may impede our Company's access to, or increase the cost of, external financing for our operations and investments; increased competitive pressures, both domestically and internationally; legal and regulatory developments, such as regulatory actions affecting environmental activities; the imposition by foreign countries of trade restrictions and changes in international tax laws or currency controls; adverse weather conditions or natural disasters, such as hurricanes and earthquakes; and labor disputes, which may lead to increased costs or disruption of operations.

This list of factors that may affect future performance and the accuracy of forward-looking statements are illustrative, but by no means exhaustive. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

**Disclosures Related to Our Chinese Operations**

China Foods Holdings Ltd. (the "Company", "CFOO", or "we") was incorporated in Delaware on January 10, 2019. The Company is a Delaware holding company and we conduct our primary operations in China through our wholly owned subsidiary Guangzhou Xiao Xiang Health Industry Company Limited, a limited liability company organized under the laws of China on March 8, 2017 ("GXXHIC"). GXXHIC is wholly owned by Alpha Wellness (HK) Limited, a limited liability company organized under the laws of Hong Kong on April 24, 2019, which is in turn wholly owned by Elite Creation Group, a limited liability company formed under the laws of the British Virgin Islands formed on September 5, 2018. Alpha Wellness (HK) Limited and Elite Creation Group are holding companies without operations and are wholly owned by the Company.

Substantially all of our operations are conducted in China, and are governed by Chinese laws, rules and regulations. Our subsidiary, GXXHIC, is subject to Chinese laws, rules, and regulations. Uncertainties with respect to the interpretation and enforcement of Chinese laws, rules and regulations could have a material adverse effect on us. Risks and uncertainties arising from the legal system in China, including risks and uncertainties regarding that the rules and regulations in China can change quickly with little advance notice and that the Chinese government may intervene or influence our operations at any time, could result in a material adverse change in our operations and the value of our securities.

We do not believe there GXXHIC is in violation of any laws, rules or regulations but since these newly enacted rules are still evolving, we cannot assure you that our business operations comply with such regulations and authorities' requirements in all respects during the development of these new rules. However, in terms of business operation, GXXHIC expects to adapt to the newly issued rules and take dependent measures to comply with the laws and regulations of the Chinese authorities. The PRC government's authority in regulating our operations and its oversight and control over offerings and listings conducted overseas by, and foreign investment in, China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors. Implementation of industry-wide regulations in this nature may cause the value of such securities to significantly decline or be worthless. Risks and uncertainties arising from the legal system in China, including risks and uncertainties regarding the enforcement of laws and quickly evolving rules and regulations in China, could result in a material adverse change in our operations and the value of our securities. But so far, the current operation and securities value of CFOO are stable, and we believe that its risks are to the Company are manageable.

GXXHIC has received a Business License from the relevant department of the State Administration for Market Regulation. Apart from the Business License, GXXHIC may be subject to additional licensing requirements for our business operation due to the uncertainties of interpretation and implementation of relevant laws and regulations and the enforcement practice by relevant government authorities.

For more information on these risks and other risks relating to our company, please see our 2021 Annual Report on Form 10-K/A for the period ended December 31, 2021.

**The Holding Foreign Companies Accountable Act**

The Holding Foreign Companies Accountable Act (the "HFCAA"), was enacted on December 18, 2020. The HFCAA requires that the Public Company Accounting Oversight Board (the "PCAOB") determine whether it is unable to inspect or investigate completely registered public accounting firms located in a non-U.S. jurisdiction because of a position taken by one or more authorities in that jurisdiction. Our auditor, HKCM & CPA Co., is based in Hong Kong and is subject to the determinations announced by the PCOAB on December 16, 2021 and the HFCAA. On December 16, 2021, the PCAOB reported its determination that it was unable to inspect or investigate completely registered public accounting firms headquartered in the PRC and Hong Kong, because of positions taken by PRC authorities in those jurisdictions. On March 30, 2022, based on this determination, the Company was transferred to the SEC's "Conclusive list of issuers identified under the HFCA." Since our auditor is located in Hong Kong, a jurisdiction where the PCAOB has been unable to conduct inspections without the approval of the Chinese authorities, our auditor is not currently inspected by the PCAOB. The HFCAA states that if the SEC determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspection by the PCAOB for two consecutive years beginning in 2021, the SEC shall prohibit our shares from being traded on a national securities exchange or in the over-the-counter trading market in the United States. The related risks and uncertainties could cause the value of our shares to significantly decline or be worthless.

**Table of Contents**

---

| | | |
|:---|:---|:---|
|  |  | Page<br>No. |
|  | [**PART I – FINANCIAL INFORMATION**](#Na_001) |  |
| Item 1. | [Consolidated Financial Statements (Unaudited)](#Na_002) | 3 |
|  | [Notes to Consolidated Financial Statements](#Na_003) | 7 |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#GV_012) | 19 |
| Item 3. | [Quantitative and Qualitative Disclosures about Market Risk](#GV_011) | 21 |
| Item 4. | [Controls and Procedures](#GV_010) | 21 |
|  | **[PART II – OTHER INFORMATION](#GV_009)** |  |
| Item 1. | [Legal Proceedings](#GV_008) | 22 |
| Item 1A. | [Risk Factors](#GV_007) | 22 |
| Item 2. | [Unregistered Sales of Equity Securities and Proceeds](#GV_006) | 22 |
| Item 3. | [Defaults Upon Senior Securities](#GV_005) | 22 |
| Item 4. | [Mine Safety Disclosure](#GV_004) | 22 |
| Item 5. | [Other Information](#GV_003) | 22 |
| Item 6. | [Exhibits](#GV_001) | 23 |
| [SIGNATURES](#GV_002) | [SIGNATURES](#GV_002) | 24 |

---

**PART I – FINANCIAL INFORMATION**

Item 1. Financial Statements

**China Foods Holdings Ltd.**

**Condensed Consolidated Balance Sheets**

---

| |
|:---|
| **ASSETS** |
| **Current Assets** |
| Cash and cash equivalents |
| Prepayments and other receivables |
| Inventories |
| Tax recoverable |
| Right-of-use assets |
| **Total Current Assets** |
| **Non-Current Assets** |
| Plant and equipment |
| Intangible assets |
| **Total Non-Current Assets** |
| **TOTAL ASSETS** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |
| **Current Liabilities** |
| Accrued liabilities and other payables |
| Customer deposits |
| Lease liabilities |
| Amount due to a director |
| Amount due to a related company |
| **Total Current Liabilities** |
| **Non-Current Liabilities** |
| Lease liabilities |
| **Total Non-Current Liabilities** |
| **Stockholders' Equity** |
| Common stock $0.0001par value, 100,000,000 shares authorized, 20,252,309 and 20,252,309 shares issued and outstanding as of March 31 2022 and December 31, 2021 respectively |
| Additional paid-in capital |
| Accumulated other comprehensive income |
| Accumulated deficit) |
| **Total Shareholders' Equity** |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**China Foods Holdings Ltd.**

**Condensed Consolidated Statements of Operations and Comprehensive Loss**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | Three Months Ended<br>March 31, 2022 | Three Months Ended<br>March 31, 2021 |
| Revenue, net | $68799 | $167643 |
| Cost of revenue | (18837) | (153684) |
| Gross profit | 49962 | 13959 |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;Selling and distribution expenses | 8 | 11649 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 124929 | 214176 |
| Total operating expenses | 124937 | 225825 |
| Loss from Operation | (74975) | (211866) |
| Other Income |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 342 | 510 |
| &nbsp;&nbsp;&nbsp;Sundry income | 77 | 6289 |
| Total other income | 419 | 6799 |
| Profit before income tax | (74556) | (205067) |
| Income tax expenses | (2268) |  |
| Net loss | $(76824) | $(205067) |
| Other comprehensive income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency adjustment gain (loss) | (602) | 1856 |
| Comprehensive loss | $(77426) | (203211) |
| Net loss per common share |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted\* | $(0.00) | $(0.01) |
| Weighted average number of common share |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | 20252309 | 20252309 |

---

\* denotes net loss per common share of less than $0.001 per share.

The accompanying notes are an integral part of these condensed consolidated financial statements.

**CHINA FOODS HOLDINGS LTD.**

**Condensed Consolidated Statements of Changes in Shareholders' Equity**

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Share** | **Amount** | **Additional paid-in**<br>**capital** | **Accumulated**<br>**deficit** | **Accumulated other comprehensive**<br>**income** | **Total**<br> **shareholders'** <br>**Equity** |
| **Balance at January 1, 2022** | 20252309 | $2025 | $1290355 | $(918195) | $26516 | $400701 |
| Net loss for the period |  |  |  | (76824) |  | (76824) |
| Foreign currency translation adjustment | - | - | - | - | (602) | (602) |
| **Balance at March 31, 2022** | 20252309 | $2025 | $1290355 | $**(995019)** | $**25914** | $**323275** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Share** | **Amount** | **Additional paid-in**<br>**capital** | **Accumulated**<br>**deficit** | **Accumulated other comprehensive**<br>**income** | **Total**<br> **shareholders'** <br>**Equity** |
| **Balance at January 1, 2021** | 20252309 | $2025 | $1290355 | $(462786) | $5244 | $834838 |
| Net loss for the period |  |  |  | (205067) |  | (205067) |
| Foreign currency translation adjustment | - | - | - | - | 1856 | 1856 |
| **Balance at March 31, 2021** | 20252309 | $2025 | $1290355 | $(667853) | $7100 | $631627 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**China Foods Holdings Ltd.**

**Condensed Consolidated Statements of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | March 31, 2022 | March 31, 2021 |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(76824) | $(205067) |
| Adjustments to reconcile net income to net cash used in operating activities |  |  |
| Depreciation of plant and equipment | 19618 | 21430 |
| Amortization of intangible assets | 132 | 130 |
| Non-cash lease expense | 31556 | 19238 |
|  | (25518) | (164269) |
| Change in operating assets and liabilities: |  |  |
| Accounts receivables |  | (164682) |
| Prepayments and other receivable | (20879) | 7978 |
| Inventories | (4542) | 39122 |
| Accrued liabilities and other payables | 329 | 41482 |
| Accounts payable |  | (7827) |
| Tax payable | 64 | (1806) |
| Customer deposit | (63732) | (49191) |
| Lease liabilities | (26377) | 225 |
| Net cash used in operating activities | (140655) | (298968) |
| **Cash flow from financing activities:** |  |  |
| Repayment of lease liabilities |  | (17349) |
| Advances from a director | 29153 | 37960 |
| Advances from a related company | - | - |
| Net cash provided by financing activities | 29153 | 20611 |
| Foreign currency translation adjustment | (4249) | 2353 |
| Net change in cash and cash equivalents | (115751) | (276004) |
| **CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD** | 609434 | 1006394 |
| **CASH AND CASH EQUIVALENTS, END OF PERIOD** | $493683 | $730390 |
| **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION** |  |  |
| Cash paid for interest | $- | $- |
| Cash paid for income taxes | $- | $- |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

**China Foods Holdings Ltd.**

**Notes to the Unaudited Condensed Consolidated Financial Statements**

**March 31, 2022**

**NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION**

China Foods Holdings Ltd. (the "Company") was incorporated in Delaware on January 10, 2019. On July 9, 2020, the Company consummated the Share Exchange Agreement ("the "Share Exchange Agreement") with Elite Creation Group Limited, a private limited company organized under the laws of British Virgin Islands ("ECGL"). As a result of the acquisition of ECGL, the Company entered into the healthcare product distributing and marketing industry, pursuing a new strategy of developing and distributing health related products, including supplements, across the globe with a focus on mainland China, Europe and Australia.

We are a health and wellness company that develops, markets, promotes and distributes a variety of customized health and wellness care products and services, including supplements, healthy snacks, meal replacements, skincare products, and nutritional consultation services to consumers in China. We work with certain licensed healthcare food factories to develop and manufacture products and services that are distributed conventionally through sales agents and also through a network of e-commerce and social media platforms.

In addition to products, we are committed to providing customized science based wellness consultation and service programs to customers. Our diverse products and services target health conscious customers and differentiate based upon age and gender and seek to manage different conditions. We reach out to customers fitting certain health and lifestyle profiles through our offline and online consultation services, and track eating habits and health indicators to provide customized products such as supplements. We believe this will facilitate the ability of customers to monitor, understand and adjust their health practices and lifestyle anytime and anywhere for increased customer engagement and retention.

We conduct our business through our wholly owned subsidiary Guangzhou Xiao Xiang Health Industry Company Limited, a limited liability company organized under the laws of China on March 8, 2017 and Alpha Wellness (HK) Limited, a limited liability company organized under the laws of Hong Kong on April 24, 2019. Elite Creation Group, a limited liability company formed under the laws of the British Virgin Islands formed on September 5, 2018, is holding companies without operations.

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of presentation and consolidation**

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial reporting, and in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the unaudited consolidated financial statements contained in this report reflect all adjustments that are normal and recurring in nature and considered necessary for a fair presentation of the financial position and the results of operations for the interim periods presented. The year-end balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results of operations for the interim period are not necessarily indicative of the results expected for the full year. These unaudited consolidated financial statements, footnote disclosures and other information should be read in conjunction with the financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

The unaudited condensed consolidated financial statements are presented in US Dollars and include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The results of subsidiaries acquired or disposed of during the years are included in the consolidated statements of operations from the effective date of acquisition or up to the effective date of disposal.

The following table depicts the description of the Company's subsidiaries:

SCHEDULE OF SUBSIDIARIES INFORMATION

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| | | | | |
|:---|:---|:---|:---|:---|
| Name | Place of incorporation<br> and kind of<br> legal entity | Principal activities | Particulars of registered/ <br>paid up share capital | Effective interest<br> held |
| Elite Creation Group Limited | BVI, a limited liability company | Investment holding | 50,000 issued shares of US$1each | 100% |
| Alpha Wellness (HK) Limited | Hong Kong, a limited liability company | Investment holding | 300,000 issued shares for HK$300,000 | 100% |
| Guangzhou Xiao Xiang Health Industry Company Limited | The PRC, a limited liability company | Sales of healthcare products | RMB 8,300,000 | 100% |

---

**Cash and cash equivalents**

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.

**Inventories**

Inventories are stated at the lower of cost or market value (net realizable value), cost being determined on a first-in-first-out method. Costs include material and manufacturing overhead costs. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. As of March 31, 2022 and December 31, 2021, the Company did not record an allowance for obsolete inventories, nor have there been any write-offs.

**Plant and equipment**

Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values:

SCHEDULE OF ESTIMATED USEFUL LIVES

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| | | |
|:---|:---|:---|
|  | Expected useful lives | Residual value |
| Furniture, fixture and equipment | 3 years | 5% |
| Motor vehicle | 3.33 to 4 years | 5% |
| Leasehold improvement | 2 years | 5% |

---

Expenditures for repairs and maintenance are expensed as incurred. When assets have been retired or sold, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the results of operations.

Depreciation expense for the three months ended March 31, 2022 and 2021 were $19,618 and $21,430, respectively.

**Intangible assets**

Intangible assets represented trademarks of their products and are stated at cost less accumulated amortization and any recognized impairment loss. Amortization is provided over the term of their registrations on a straight-line basis, which is 10 years and will expire in 2028.

Amortization expense for the three months ended March 31, 2022 and 2021 were $132 and $130, respectively.

**Impairment of long-lived assets**

In accordance with the provisions of ASC Topic 360, "Impairment or Disposal of Long-Lived Assets", all long-lived assets such as plant and equipment, as well as intangible assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. There has been no impairment charge for the periods presented.

**Revenue recognition**

The Company adopted Accounting Standards Codification ("ASC") 606 – Revenue from Contracts with Customers" ("ASC 606"). Under ASC 606, a performance obligation is a promise within a contract to transfer a distinct good or service, or a series of distinct goods and services, to a customer. Revenue is recognized when performance obligations are satisfied and the customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for goods or services. Under the standard, a contract's transaction price is allocated to each distinct performance obligation. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps:

● identify the contract with a customer;

● identify the performance obligations in the contract;

● determine the transaction price;

● allocate the transaction price to performance obligations in the contract; and

● recognize revenue as the performance obligation is satisfied.

Currently, the Company operates two business segments. Healthcare Business mainly provides health consulting advisory services and healthcare and wellness products to the customers and our Wine Business provides wine products to the customers.

Revenue is earned from the rendering of health consulting advisory services to the customers. The Company recognizes services revenue over the period in which such services are performed. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as current portion of deferred revenue in the accompanying consolidated balance sheets. Amounts not expected to be recognized as revenue within the 12 months following the balance sheet date are classified as deferred revenue, net of current portion.

The sale and distribution of the healthcare products, such as (i) Nutrition Catering (ii) Special Health Food (iii) Health Supplement and (iv) Skincare, is the only performance obligation under the fixed-fee arrangements. Revenue is recognized from the sale of their healthcare products upon delivery to the customers, whereas the title and risk of loss are fully transferred to the customers. The Company records its revenues, net of value added taxes ("VAT") on the majority of the products at the rate of 17% on the invoiced value of sales. The cost, such as shipping cost and material cost, is recognized when the product delivered to the customers. The Company records its cost including taxes.

Our Wine Business mainly provides wine products to the customers, with a right to return. The Company acts as the principal in substantially all of its customer arrangements and as such, generally records revenues on a gross basis. Revenues exclude any taxes that the Company collects from customers and remits to tax authorities. Revenue is recognized from the sale of wine products upon delivery to the customers, whereas the title and risk of loss are fully transferred to the customers. The Company records its revenues, net of value added taxes ("VAT") on the majority of the products at the rate of 17% on the invoiced value of sales. The revenues are presented net of sales returns and discounts. The Company recorded product sales returns of $4,741 and $0 for the period ended March 31, 2022 and 2021, respectively. The cost, such as shipping cost and material cost, is recognized when the product delivered to the customers. The Company records its cost including taxes.

**Income taxes**

The Company adopted the ASC 740 Income tax provisions of paragraph 740-10-25-13, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the condensed consolidated financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the condensed consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13.

The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary.

**Uncertain tax positions**

The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC 740 provisions of Section 740-10-25 for the three months ended March 31, 2022 and 2021.

**Foreign currencies translation**

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the condensed consolidated statement of operations.

The reporting currency of the Company is United States Dollar ("US$") and the accompanying financial statements have been expressed in US$. In addition, the Company is operating in Hong Kong SAR and the People's Republic of China and maintain its books and record in its local currency, Hong Kong Dollars ("HK$") and Renminbi ("RMB"), which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, assets and liabilities of its subsidiaries whose functional currency is not US$ are translated into US$, in accordance with ASC Topic 830-30, "*Translation of Financial Statement*", using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the year. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statements of changes in shareholders' equity.

Translation of amounts from HK$ and RMB into US$ has been made at the following exchange rates for the three months ended March 31, 2022 and 2021:

SCHEDULE OF FOREIGN CURRENCIES TRANSLATION EXCHANGE RATES

---

| | | |
|:---|:---|:---|
|  | 2022 | 2021 |
| Period-end HK$:US$ exchange rate | 0.12711 | 0.12863 |
| Period average HK$:US$ exchange rate | 0.12811 | 0.12891 |
| Period-end RMB:US$ exchange rate | 0.15764 | 0.15248 |
| Period average RMB:US$ exchange rate | 0.15752 | 0.15431 |

---

**Net loss per share**

The Company calculates net loss per share in accordance with ASC Topic 260, "*Earnings per Share."* Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

**Comprehensive income**

ASC Topic 220, "*Comprehensive Income*", establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying condensed consolidated statements of changes in stockholders' equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit.

**Leases**

The Company adopted Topic 842, *Leases* ("ASC 842"), using the modified retrospective approach through a cumulative-effect adjustment and utilizing the effective date of January 1, 2019 as its date of initial application, with prior periods unchanged and presented in accordance with the previous guidance in Topic 840, Leases ("ASC 840").

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Leases with a term greater than one year are recognized on the balance sheet as right-of-use ("ROU") assets, lease liabilities and long-term lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected remaining lease term. However, certain adjustments to the right-of-use asset may be required for items such as prepaid or accrued lease payments. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

In accordance with the guidance in ASC 842, components of a lease should be split into three categories: lease components (e.g. land, building, etc.), non-lease components (e.g. common area maintenance, consumables, etc.), and non-components (e.g. property taxes, insurance, etc.). Subsequently, the fixed and in-substance fixed contract consideration (including any related to non-components) must be allocated based on the respective relative fair values to the lease components and non-lease components.

Lease expense is recognized on a straight-line basis over the lease terms. Lease expense includes amortization of the ROU assets and accretion of the lease liabilities. Amortization of ROU assets is calculated as the periodic lease cost less accretion of the lease liability. The amortized period for ROU assets is limited to the expected lease term.

The Company has elected a practical expedient to combine the lease and non-lease components into a single lease component. The Company also elected the short-term lease measurement and recognition exemption and does not establish ROU assets or lease liabilities for operating leases with terms of 12 months or less.

**Related parties**

The Company follows the ASC 850-10, *Related Party* for the identification of related parties and disclosure of related party transactions.

Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

**Commitments and contingencies**

The Company follows the ASC 450-20, *Commitments* to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company's financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company's business, financial position, and results of operations or cash flows.

**Fair value of financial instruments**

The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification ("Paragraph 820-10-35-37") to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below:

---

| | |
|:---|:---|
| Level 1 | Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. |
| Level 2 | Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. |
| Level 3 | Pricing inputs that are generally observable inputs and not corroborated by market data. |

---

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

The carrying amounts of the Company's financial assets and liabilities, such as cash and cash equivalents, approximate their fair values because of the short maturity of these instruments.

**Recent accounting pronouncements**

From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board ("FASB") or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

In May 2021, the FASB issued ASU 2021-04, *Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40)*, ("ASU 2021-04"). This ASU reduces diversity in an issuer's accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. This ASU provides guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic. It specifically addresses: (1) how an entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; (2) how an entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange; and (3) how an entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange. This ASU will be effective for all entities for fiscal years beginning after December 15, 2021. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. Early adoption is permitted, including adoption in an interim period. The adoption of ASU 2021-04 on January 1, 2022 did not have a material impact on the Company's financial statements or disclosures.

**Segment Reporting**

Accounting Standards Codification ("ASC") Topic 280, "*Segment Reporting*" establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organization structure as well as information about geographical areas, business segments and major customers in consolidated financial statements. Currently, the Company operates in one reportable operating segment in Hong Kong and China.

**Disaggregation of Revenue**

The following table provides information about disaggregated revenue from customers into the nature of the products and services, and geographic regions, and includes a reconciliation of the disaggregated revenue with reportable segments.

SCHEDULE OF DISAGGREGATED REVENUE WITH REPORTABLE SEGMENTS

---

| | | |
|:---|:---|:---|
|  | **For the Period Ended March 31, 2022** | **For the Period Ended March 31, 2021** |
| Consultancy service fee income | $64058 | $- |
| Sales of wine products | 4741 | 166384 |
| Sale of healthcare products |  | 1259 |
| TOTAL | $**68799** | $**167643** |

---

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

**NOTE 3 - SEGMENT REPORTING**

Currently, the Company has two reportable business segments:

(i) Healthcare
 Segment, mainly provides health consulting advisory services and healthcare and wellness
 products to the customers; and

(ii) Wine
 Segment, mainly provides the wine products to the customers.

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2022** | **Three Months Ended March 31, 2022** | **Three Months Ended March 31, 2022** |
|  | **Healthcare Segment** | **Wine**<br> **Segment** | **Total** |
| **Revenue from external customers:** |  |  |  |
| Consulting service income | $64058 | $– | $64058 |
| Sale of wine products | – | 4741 | 4741 |
| Total revenue | 64058 | 4741 | 68799 |
| **Cost of sales:** |  |  |  |
| Consulting service income | (14243) |  | (14243) |
| Sale of wine products |  | (4594) | (4594) |
| **Total cost of revenue** | (14243) | (4594) | (18837) |
| Gross profit | 49815 | 148 | 49962 |
| **Operating Expenses** |  |  |  |
| Selling and distribution |  | (8) | (8) |
| General and administrative | (31479) | (93450) | (124929) |
| Total operating expenses | (31479) | (93458) | (124937) |
| **Segment (loss) income** | $18336 | $(93310) | $(74975) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2021** | **Three Months Ended March 31, 2021** | **Three Months Ended March 31, 2021** |
|  | **Healthcare Segment** | **Wine**<br> **Segment** | **Total** |
| **Revenue from external customers:** |  |  |  |
| Consulting service income | $- | $– | $- |
| Sale of wine products |  | 166384 | 166384 |
| Sale of healthcare products | - | 1259 | 1259 |
| Total revenue | - | 167643 | 167643 |
| **Cost of sales:** |  |  |  |
| Consulting service income |  |  |  |
| Sale of wine products | - | (152614) | (152614) |
| Sale of healthcare products |  | (1070) | (1070) |
| **Total cost of revenue** | - | (153684) | (153684) |
| Gross profit |  | 13959 | 13959 |
| **Operating Expenses** |  |  |  |
| Selling and distribution |  | (11649) | (11649) |
| General and administrative | (34839) | (179337) | (214176) |
| Total operating expenses | (34839) | (190986) | (225825) |
| **Segment (loss) income** | $(34839) | $(177027) | $(211866) |

---

In the following table, revenue is disaggregated by primary major product line, and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the reportable segments.

**NOTE 4** **- PREPAYMENTS AND OTHER RECEIVABLE**

Prepayments and other receivable consisted of the following:

SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLE

---

| | | |
|:---|:---|:---|
|  | March 31, 2022 | December 31, 2021 |
| Prepayments | $1538 | $3077 |
| Other deposits | 33862 | 33961 |
| Other receivables | 124733 | 102216 |
|  | $60133 | $129254 |

---

Other receivable represented deposit payments made to suppliers for daily operation, procurement, which are interest-free, unsecured and received by the Company when corporation with suppliers are terminated. Other deposits represented deposit payments made to vendors for procurement, which are interest-free, unsecured and relieved against accounts payable when goods are received by the Company.

**NOTE 5 - INVENTORIES**

Inventories consisted of the following:

SCHEDULE OF INVENTORIES

---

| | | |
|:---|:---|:---|
|  | March 31, 2022 | December 31, 2021 |
| Finished goods | $332093 | $327551 |

---

For the three months ended March 31, 2022 and 2021, no allowance for obsolete inventories was recorded by the Company.

**NOTE 6 - LEASE**

The Company leased office and warehouse facilities under various non-cancelable operating leases expiring at the term of 2 to 4 year, through December 31, 2025.

Right of use assets and lease liability – right of use are as follows:

---

| | | |
|:---|:---|:---|
|  | March 31, 2022 | December 31, 2021 |
|  |  | (Audited) |
| Right-of-use assets | $320942 | $350563 |

---

The lease liability – right of use is as follows:

---

| | | |
|:---|:---|:---|
|  | March 31, 2022 | December 31, 2021 |
|  | | (Audited) |
| Current portion | 115564 | 114132 |
| Non-current portion | 216400 | 246022 |
| &nbsp;&nbsp;&nbsp;Total | $331964 | $360154 |

---

As of March 31, 2022, the operating lease payment of $26,377 will become matured in the next 12 months.

**NOTE 7 - PROPERTY, PLANT AND EQUIPMENT**

**** 

---

| | | |
|:---|:---|:---|
|  | March 31, 2022 | December 31, 2021 |
|  | | (Audited) |
| Motor vehicle | $311343 | $311343 |
| Furniture, fixture and equipment | 15465 | 15465 |
| Leasehold improvement | 27358 | 27358 |
| Foreign translation adjustment | 17594 | 17603 |
|  | 371760 | 371769 |
| Less: accumulated depreciation | (248125) | (228507) |
| Foreign translation adjustment | (10756) | (10658) |
| Plant and equipment, net | $112879 | $132604 |

---

Depreciation expense for the three months period ended March 31, 2022 and 2021 were $19,618 and $21,430, respectively.

**NOTE - 8 AMOUNTS DUE TO A DIRECTOR AND A RELATED COMPANY**

As of March 31, 2022 and December 31, 2021, the amounts represented temporary advances to the Company by its director and its related company which were unsecured, interest-free and have no fixed terms of repayments.

**NOTE 9 – SHAREHOLDERS' EQUITY**

***Common Stock***

The Company is authorized, subject to limitations prescribed by Delaware law, to issue up to 100,000,000 shares of common stock with a nominal par value of $0.0001.

*Dividend Rights*

Subject to preferences that may apply to shares of preferred stock outstanding at the time, the holders of outstanding shares of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and only then at the times and in the amounts that our board of directors may determine.

*Voting Rights*

Each holder of common stock is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders. Under our Certificate of Incorporation, stockholders do not have the right to cumulate votes for the election of directors.

*No Preemptive or Similar Rights*

Our common stock is not entitled to preemptive rights and is not subject to conversion, redemption or sinking fund provisions.

*Right to Receive Liquidation Distributions*

Upon our dissolution, liquidation or winding-up, the assets legally available for distribution to our stockholders are distributable ratably among the holders of our common stock, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights and payment of liquidation preferences, if any, on any outstanding shares of preferred stock.

As of March 31, 2022, and December 31, 2021, a total of 20,252,309and 20,252,309 outstanding shares of common stock were issued, respectively.

***Preferred Stock***

The Company is not currently authorized to issue shares of preferred stock. The Certificate of Incorporation however, allows the board of directors to authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of the common stock in the event that shares of preferred stock are authorized in the future. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of our company and may adversely affect the market price of our common stock and the voting and other rights of the holders of common stock. The Company has no current plans to issue any shares of preferred stock.

**NOTE 10 - INCOME TAXES**

The provision for income taxes consisted of the following:

SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE

---

| | | |
|:---|:---|:---|
|  | Three months ended March 31 | Three months ended March 31 |
|  | 2022 | 2021 |
| Current tax | $2268 | $- |
| Deferred tax | - | - |
| Income tax expense | $2268 | $- |

---

The Company mainly operates in the PRC that is subject to taxes in the governing jurisdictions in which it operates. The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate, as follows:

BVI

Under the current BVI law, the Company is not subject to tax on income.

The PRC

The Company's subsidiary operating in the PRC is subject to the Corporate Income Tax Law of the People's Republic of China at a unified income tax rate of 25%. The reconciliation of income tax rate to the effective income tax rate for the three months ended March 31, 2022 and 2021 is as follows:

SCHEDULE OF RECONCILIATION TAX RATE TO EFFECTIVE INCOME TAX RATE

---

| | | |
|:---|:---|:---|
|  | Three months ended March 31, | Three months ended March 31, |
|  | 2022 | 2021 |
| Loss before income taxes | $(92981) | $(170229) |
| Statutory income tax rate | 25% | 25% |
| Income tax expense at statutory rate | (23245) | (42557) |
| Net operating loss | 23245 | 42557 |
| Income tax expense | $- | $- |

---

Hong Kong

The Company's subsidiary operating in Hong Kong is subject to the Hong Kong Profits Tax at the two-tiered profits tax rates from 8.25% to 16.5% on the estimated assessable profits arising in Hong Kong during the current year, after deducting a tax concession for the tax year. The reconciliation of income tax rate to the effective income tax rate for the three months ended March 31, 2022 and 2021 is as follows:

SCHEDULE OF RECONCILIATION TAX RATE TO EFFECTIVE INCOME TAX RATE

---

| | | |
|:---|:---|:---|
|  | Three months ended March 31, | Three months ended March 31, |
|  | 2022 | 2021 |
| Loss before income taxes | $23718 | $(31621) |
| Statutory income tax rate | 8.25% | 8.25% |
| Income tax expense at statutory rate | 1957 | (2608) |
| Tax adjustments | 311 |  |
| Net operating loss | - | 2608 |
| Income tax expense | $2268 | $- |

---

The following table sets forth the significant components of the deferred tax assets of the Company as of March 31, 2022 and December 31, 2021:

SCHEDULE OF DEFERRED TAX ASSETS

---

| | | |
|:---|:---|:---|
|  | March 31, 2022 | December 31, 2021 |
|  | | (Audited) |
| Deferred tax assets: |  |  |
| Net operating loss carryforwards |  |  |
| - United States | $60129 | 31905 |
| - Hong Kong |  | 2608 |
| - PRC | 339794 | 163060 |
|  | 399923 | 197573 |
| Less: valuation allowance | (399923) | (197573) |
| Deferred tax assets, net | $- | $- |

---

**NOTE 11 - RELATED PARTY TRANSACTIONS**

From time to time, the Company's director advanced funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand.

The Company has been provided free office space by its stockholder. The management determined that such cost is nominal and did not recognize the rent expense in its condensed consolidated financial statements.

Apart from the transactions and balances detailed elsewhere in these accompanying unaudited condensed consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented.

**NOTE 12 - CONCENTRATIONS OF RISK**

The Company is exposed to the following concentrations of risk:

(a) Major customers

For the three months ended March 31, 2022, a single customer represented more than 10% of the Company's revenues. This customer accounted for 99% of the Company's revenues amounting to $64,058.

For the three months ended March 31, 2021, a single customer represented more than 10% of the Company's revenues. This customer accounted for 100% of the Company's revenues amounting to $167,643 with $164,682 of accounts receivable.

All of the Company's customers are located in the People's Republic of China.

(a) Major vendors

For the three months ended March 31, 2022, a single vendor represented more than 10% of the Company's purchases. This vendor accounted for 100% of the Company's purchases amounting to $4,594 with $0 of accounts payable.

For the three months ended March 31, 2021, a single vendor represented more than 10% of the Company's purchases. This vendor accounted for 100% of the Company's purchases amounting to $123,742 with $0 of accounts payable.

All of the Company's vendors are located in the People's Republic of China.

(c) Credit risk

Financial instruments that are potentially subject to credit risk consist principally of trade receivables. The Company believes the concentration of credit risk in its trade receivables is substantially mitigated by its ongoing credit evaluation process and relatively short collection terms. The Company does not generally require collateral from customers. The Company evaluates the need for an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.

(d) Economic and political risk

The Company's major operations are conducted in the People's Republic of China. Accordingly, the political, economic, and legal environments in PRC, as well as the general state of PRC's economy may influence the Company's business, financial condition, and results of operations.

(e) Exchange rate risk

The Company cannot guarantee that the current exchange rate will remain steady; therefore there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of RMB converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice.

**NOTE 13 COMMITMENTS AND CONTINGENCIES**

As of March 31, 2022, the Company has no material commitments or contingencies.

**NOTE 14 SUBSEQUENT EVENT**

In accordance with ASC Topic 855, "*Subsequent Events*", which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after March 31, 2022 up through the date the Company issued the unaudited condensed consolidated financial statements. During the period, the Company did not have any material recognizable subsequent events.

**Item 2. Management's Discussion and Analysis or Plan of Operation.**

**<u>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</u>**

This periodic report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive positions, growth opportunities for existing products, plans and objectives of management. Statements in this periodic report that are not historical facts are hereby identified as forward-looking statements. Our Company and our representatives may from time to time make written or oral statements that are "forward-looking," including statements contained in this Quarterly Report and other filings with the Securities and Exchange Commission and in reports to our Company's stockholders. Management believes that all statements that express expectations and projections with respect to future matters, as well as from developments beyond our Company's control including changes in global economic conditions are forward-looking statements within the meaning of the Act. These statements are made on the basis of management's views and assumptions, as of the time the statements are made, regarding future events and business performance. There can be no assurance, however, that management's expectations will necessarily come to pass. Factors that may affect forward-looking statements include a wide range of factors that could materially affect future developments and performance, including the following:

Changes in Company-wide strategies, which may result in changes in the types or mix of businesses in which our Company is involved or chooses to invest; changes in U.S., global or regional economic conditions; changes in U.S. and global financial and equity markets, including significant interest rate fluctuations, which may impede our Company's access to, or increase the cost of, external financing for our operations and investments; increased competitive pressures, both domestically and internationally; legal and regulatory developments, such as regulatory actions affecting environmental activities; the imposition by foreign countries of trade restrictions and changes in international tax laws or currency controls; adverse weather conditions or natural disasters, such as hurricanes and earthquakes; and labor disputes, which may lead to increased costs or disruption of operations.

This list of factors that may affect future performance and the accuracy of forward-looking statements are illustrative, but by no means exhaustive. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

 ****

**<u>Business Overview</u>**

We are a health and wellness company that develops, markets, promotes and distributes a variety of customized health and wellness care products and services, including supplements, healthy snacks, meal replacements, skincare products, and nutritional consultation services to consumers in China. We work with certain licensed healthcare food factories to develop and manufacture products and services that are distributed conventionally through sales agents and also through a network of e-commerce and social media platforms.

In addition to products, we are committed to providing customized science based wellness consultation and service programs to customers. Our diverse products and services target health conscious customers and differentiate based upon age and gender and seek to manage different conditions. We reach out to customers fitting certain health and lifestyle profiles through our offline and online consultation services, and track eating habits and health indicators to provide customized products such as supplements. We believe this will facilitate the ability of customers to monitor, understand and adjust their health practices and lifestyle anytime and anywhere for increased customer engagement and retention.

We conduct our business through our wholly owned subsidiary Guangzhou Xiao Xiang Health Industry Company Limited, a limited liability company organized under the laws of China on March 8, 2017 and Alpha Wellness (HK) Limited, a limited liability company organized under the laws of Hong Kong on April 24, 2019. Elite Creation Group, a limited liability company formed under the laws of the British Virgin Islands formed on September 5, 2018, is holding companies without operations.

**<u>RESULTS OF OPERATIONS</u>**

We have been significantly impacted by COVID-19 global pandemic. In addition to the devastating effects on human life, the pandemic is having a negative ripple effect on the global economy, leading to disruptions and volatility in the global financial markets. China and many other countries have issued policies intended to stop or slow the further spread of the disease.

COVID-19 and China's response to the pandemic are significantly affecting the economy. There are no comparable events that provide guidance as to the effect the COVID-19 pandemic may have, and, as a result, the ultimate effect of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the effects on the economy, the markets we serve, our business or our operations.

The following table sets forth certain operational data for the three months ended March 31, 2022 and 2021:

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>March 31, 2022 | Three Months Ended<br>March 31, 2021 |
| Revenue, net | $68799 | $167643 |
| Cost of revenue | (18837) | (153684) |
| Gross profit | 49962 | 13959 |
| Total operating expenses | (124937) | (225825) |
| Total other income | 419 | 6799 |
| Loss before income tax | (74556) | (205067) |
| Income tax expenses | (2268) | - |
| **Net loss** | **(76824)** | **(205067)** |

---

*Revenue.* For the three months ended March 31, 2022, we generated revenues of $68,799 and three months ended March 31, 2021, we generated revenues of $167,643 from our current business operations, respectively. The significant decrease due to the significant drop in the sales of wine products from the continued lockdown under the tight pandemic measure in China. The major customers are located in the HK during the period ended March 31, 2022, while all the major customers are located in the PRC during the period ended March 31, 2021.

*Cost of Revenue*. For the three months ended March 31, 2022, the cost of revenue was $18,837 and as a percentage of net revenue, approximately 27.38%. Cost of revenue for the three months ended March 31, 2021 was $153,684, and as a percentage of net revenue, approximately 91.67%. The cost of revenue decreased due to a significant drop in the sales in PRC.

*Operation expenses*. In the three months ended March 31, 2022, the operation cost was $124,937 and while for the three months ended March 31, 2021 was $225,825. The operation expenses decreased due to a decrease in administrative expenses

*Other income*. In the three months ended March 31, 2022, the other income was $419 and while for the three months ended March 31, 2021 was $6,799. The other income decreased due to a salary subsidy during the period ended March 31, 2021.

*Net Loss.* For the three months ended March 31, 2022, we incurred a net loss of $74,556, compared for the three months ended March 31, 2021. we incurred a net loss of $205,067. The net loss is primarily attributable to the decrease in administrative expenses and decrease in revenue.

**Liquidity and Capital Resources**

As of March 31, 2022, we had cash and cash equivalents of $493,683, inventories of $332,093, right of use assets of $320,942, tax recoverable of $8,846, and prepayments and other receivables of $160,133.

As of December 31, 2021, we had cash and cash equivalents of $609,434, inventories of $327,551 operating right of use assets of $350,563, tax recoverable of $8,910 and prepayments and other receivables of $139,254.

We believe that our current cash and other sources of liquidity discussed below are adequate to support general operations for at least the next 12 months.

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| | | |
|:---|:---|:---|
|  | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2022 | 2021 |
| Net cash provided by (used in) operating activities | $(140655) | $(298968) |
| Net cash used in investing activities |  |  |
| Net cash provided by financing activities | 29153 | 20611 |

---

*Net Cash Provided By (Used In) Operating Activities.*

For the three months ended March 31, 2022, net cash used in operating activities was $140,655, which consisted primarily of the decrease in prepayment and other receivables of $20,879, decrease in inventories of $4,542, increase in accrued liabilities and other payables of $329, increase in income tax payable of 65, decrease in customers deposit of $63,732, and increase in lease liabilities of $26,377.

For the three months ended March 31, 2021, net cash used in operating activities was $298,968, which consisted primarily of the increase in accounts receivables of $164,682, decrease in prepayment and other receivables of $7,978, decrease in inventories of $39,122, increase in accrued liabilities and other payables of $41,482, decrease in accounts payable of $7,827, decrease in income tax payable of $1,806, decrease in customers deposit of $49,191, and increase in lease liabilities of $225.

We expect to continue to rely on cash generated through financing from our existing shareholders and private placements of our securities, however, to finance our operations and future acquisitions.

*Net Cash Used In Investing Activities.*

For the three months ended March 31, 2022, there is no net cash provided by investing activities.

For the three months ended March 31, 2021, there is no net cash provided by investing activities.

*Net Cash Provided By Financing Activities.*

For the three months ended March 31, 2022 net cash provided by financing activities was $$29,153, which consisted primarily of advance from a director of $29,153.

For the three months ended March 31, 2021 net cash provided by financing activities was $$20,611, which consisted primarily of advance from a director of $37,960 and repayment of lease liabilities of $17,349

**Off Balance Sheet Arrangements**

We have not entered into any off-balance sheet arrangements and it is not anticipated that the Company will enter into any off-balance sheet arrangements.

**Critical Accounting Policies, Judgments and Estimates**

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operations. Critical accounting policies are those that are most important to the presentation of our financial condition and results of operations and require management's subjective or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management's current judgments. We believe the following accounting policies are critical in the preparation of our financial statements.

The Company's accounting policies are more fully described in Note 1 and 2 of the financial statements. As discussed in Note 1 and 2, the preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about the future events that affect the amounts reported in the financial statements and the accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual differences could differ from these estimates under different assumptions or conditions. The Company believes that the following addresses the Company's most critical accounting policies.

Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets will be reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized. A valuation allowance has currently been recorded to reduce our deferred tax asset to $0.

**Forward-looking Statements**

The Private Securities Litigation Reform Act of 1995 (the "Act") provides a safe harbor for forward-looking statements made by or on behalf of our Company. Our Company and our representatives may from time to time make written or oral statements that are "forward-looking," including statements contained in this report and other filings with the Securities and Exchange Commission and in reports to our Company's stockholders. Management believes that all statements that express expectations and projections with respect to future matters, as well as from developments beyond our Company's control including changes in global economic conditions are forward-looking statements within the meaning of the Act. These statements are made on the basis of management's views and assumptions, as of the time the statements are made, regarding future events and business performance. There can be no assurance, however, that management's expectations will necessarily come to pass. Factors that may affect forward-looking statements include a wide range of factors that could materially affect future developments and performance, including the following:

Changes in Company-wide strategies, which may result in changes in the types or mix of businesses in which our Company is involved or chooses to invest; changes in U.S., global or regional economic conditions; changes in U.S. and global financial and equity markets, including significant interest rate fluctuations, which may impede our Company's access to, or increase the cost of, external financing for our operations and investments; increased competitive pressures, both domestically and internationally; legal and regulatory developments, such as regulatory actions affecting environmental activities; the imposition by foreign countries of trade restrictions and changes in international tax laws or currency controls; adverse weather conditions or natural disasters, such as hurricanes and earthquakes; and labor disputes, which may lead to increased costs or disruption of operations.

This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative, but by no means exhaustive. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

**Item 3. Quantitative and Qualitative Disclosures about Market Risk**

Not required for smaller reporting companies.

**Item 4. Controls and Procedures**

Our Chief Executive Officer and Chief Financial Officer are responsible for establishing and maintaining disclosure controls and procedures for the Company.

(a) <u>Evaluation of Disclosure Controls and Procedures</u>

Our management evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our President and Principal Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report were not effective such that the information required to be disclosed by us in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) accumulated and communicated to our management as appropriate to allow timely decisions regarding disclosure. A controls system cannot provide absolute assurance, however, that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected but we believe the controls and procedures do provide a reasonable assurance.

(b) <u>Changes in the Company's Internal Controls Over Financial Reporting</u>

There have been no changes in internal control over financial reporting that occurred during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the internal control over financial reporting.

**Part II - Other Information**

**Item 1. Legal Proceedings**

There are no legal proceedings, which are pending or have been threatened against us or any of our officers, directors or control persons of which management is aware.

**Item 1A. Risk Factors**

Not applicable to smaller reporting companies.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

**Recent Sales of Unregistered Securities**

We have not sold any restricted securities during the three months ended March 31, 2022.

**Use of Proceeds of Registered Securities**

None; not applicable.

**Purchases of Equity Securities by Us and Affiliated Purchasers**

During the three months ended March 31, 2022, we have not purchased any equity securities nor have any officers or directors of the Company.

**Item 3. Defaults Upon Senior Securities**

We are not aware of any defaults upon senior securities. Management has indicated they do not, at this time, intend to pursue the defaults.

**Item 4. Mine Safety Disclosures**

None; not applicable.

**Item 5. Other Information**

None; not applicable.

**Item 6. Exhibits**

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| | |
|:---|:---|
| **Exhibits No.** |  |
| 31.1 | [Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex31-1.htm) |
| 32.1 | [Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex32-1.htm) |
| 101.INS\* | Inline XBRL Instance Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

\* These interactive data files are deemed "furnished" and not "filed" or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, or deemed "furnished" and not "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under these sections.

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| China Foods Holdings Ltd. |  |  |
| Dated: February 7, 2023 | By: | */s/ Kong Xiao Jun* |
|  |  | Kong Xiao Jun |
|  |  | Chief Executive Officer & Chief Financial Officer |

---

## Exhibit 31.1

**Exhibit 31.1**

**Rule 13a-14(a) Certification of the Chief Executive Officer**

Pursuant to 18 U.S.C. 1350

(Section 302 of the Sarbanes-Oxley Act of 2002)

I, Kong Xiao Jun, certify that:

1. I
 have reviewed this amended report on Form 10-Q of China Foods Holdings Ltd.;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or
 omit to state a material fact necessary to make the statements made, in light of the circumstances
 under which such statements were made, not misleading with respect to the period covered
 by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this
 report, fairly present in all material respects the financial condition, results of operations
 and cash flows of the registrant as of, and for, the periods presented in this report;

4. I
 am responsible for establishing and maintaining disclosure controls and procedures (as defined
 in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
 (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. I
 have disclosed, based on our most recent evaluation of internal control over financial reporting,
 to the registrant's auditors and the audit committee of the registrant's board
 of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: February 7, 2023 | By: | */s/ Kong Xiao Jun* |
|  |  | Kong Xiao Jun |
|  |  | Chief Executive Officer & Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

**AND PRINCIPAL FINANCIAL OFFICER**

**Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to**

**Section 906 of the Sarbanes-Oxley Act of 2002**

I, Kong Xiao Jun, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that this Amended Quarterly Report of China Foods Holdings Ltd. on Form 10-Q for the period ended March 31, 2022, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such Form 10-Q/A fairly presents, in all material respects, the financial condition and results of operations of China Foods Holdings Ltd.

---

| | | |
|:---|:---|:---|
| Date: February 7, 2023 | By: | */s/ Kong Xiao Jun* |
|  |  | Kong Xiao Jun |
|  |  | Chief Executive Officer & Chief Financial Officer |

---