EDGAR 10-K Filing

Company CIK: 1317839
Filing Year: 2021
Filename: 1317839_10-K_2021_0001477932-21-002347.json

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ITEM 1. BUSINESS
Item 1. Business.
Overview
Umatrin Holding Limited (formerly known as Golden Opportunities Corporation) (the “Company”) was incorporated in the State of Delaware on February 2, 2005. The Company was originally incorporated in order to locate and negotiate with a targeted business entity for the combination of that target company with the Company.
On January 6, 2016, the Company acquired 80% of the equity interests of UMatrin Worldwide SDN BHD (“Umatrin”) in exchange for the issuance of a total of 100,000,000 shares of its common stock to the two holders of Umatrin, Dato’ Sri Eu Hin Chai and Dato’ Liew. Immediately following the Share Exchange, the business of Umatrin became the business of UMHL. The UMHL operation office remained in Malaysia and the business market will remain focus in Asia.
Background of Umatrin Holding Limited
UMATRIN HOLDING LIMITED, formerly known as Golden Opportunities Corporation, was incorporated in the state of Delaware on February 2, 2005 (“UMHL”, or the “Company”). The Company was originally incorporated in order to locate and negotiate with a targeted business entity for the combination of that target company with the Company.
On March 27, 2015, a total of 19,555,000 shares were acquired by Umatrin Group Ltd (“UGL”, a company incorporated in Seychelles, through its principal and director, Dato’ Sri Eu Hin Chai (“Dato’ Sri”). At that time, UGL also acquired promissory notes that covert into common shares of the UMHL. In April 2015, the promissory notes were converted into 24,749,100 shares of UMHL common stock. Upon conversion, UGL held 44,304,100 shares of UMHL common stock out of a total issued and outstanding of 58,319,100 shares. As a result of UGL’s acquisition, UGL currently hold 75% of the outstanding shares in UMHL and is the majority shareholder of UMHL.
On March 31, 2015, symbol of the Company’s common stock was changed to “UMHL”.
On March 31, 2015, Dato’ Sri was appointed to the board of directors. In addition, Michael Zahorik was appointed as the Vice President to provide management continuity and to provide his insight and expertise with the Company’s development. Dato Sri’ was appointed as President and CEO to serve until the next shareholder meeting, and continuing thereafter until removal or resignation.
Michael Zahorik has since resigned from his position at the Company and Dato’ Sri remains as an officer of the Company.
Background of U Matrin Worldwide SDN BHD
U Matrin Worldwide SDN BHD, formerly known as OLC Worldwide SDN BHD, was incorporated in Malaysia on July 22, 1993 (“Umatrin”).
Since its incorporation until September 2014, Umatrin remained dormant. On April 26, 2013, Umatrin was awarded with a direct selling license (number AJL932015) by the Ministry of Domestic Trade and Consumer Affairs in Malaysia. However, since April 26, 2013 and until September 2014, Umatrin maintained no operation.
On July 3, 2014 and August 12, 2014, Umatrin appointed both Dato’ Liew Kok Hong (“Dato’ Liew”) and Dato’ Sri as the company’s directors. Together, Dato’ Liew and Dato’ Sri with Dato’ Ho Phooi Keow (“Dato’ Ho”), the co-founder of Umatrin, decided to start the business and expand it throughout Asia as a leading Online to Offline (O2O) company that provides technology, products and services to enable consumers, merchants, and other participants to conduct E-commerce on its I-Cloud ecosystem. As of the date of this Annual Report, both Dato’ Liew and Dato’ Ho have resigned from their positions at the Company due to respective personal reasons.
As an early-stage company, Umatrin focuses on health and beauty care products. Umatrin had cooperated with several corporations and is appointed as their sole distributor for their health and beauty care products in Asia. Umatrin introduces its products via online platform and offline platform which is our retail shop. At our retail store, Umatrin also provides training and product introductory speeches to public.
At the early stage of our business, our marketing teams focus on selling our products to the end-user and also introduced an Independent Dealer Program to our customer. To be qualified, the customer only needs to host a product demo and then will receive a discount on product purchases and earn additional credit for each product sold during the demo. Consequently, our customer will become our Independent Dealer.
Main Business Activities
Umatrin aims to provide healthy and youthfulness to the consumer through our extensive research and development conducted by our certified dermatologist and pharmacist partners.
Our Products
We have curated non-toxic beauty, personal care to health and wellness products. The principal markets for Umatrin’s products are in Malaysia as well as Asia countries. We market out products through three primary methods: direct contact, online distribution and/or by our dealer program. Our marketing and sales teams work closely together to maintain a high standard of service to our customers. Each and every new product launched will be communicated to our existing customers and to the public. Since September 2014, our best seller products include:
(a) AkeroAfatelo
Akero Afatelo is a nutrient product which contains telomerase and spirulina as the main ingredients. This product is produce by nanotechnology. Akero Afatelo contains agrobacterium, a kind of edible rare blue-green algae that lives in fresh water. Therefore, this product is organic and non-toxic, with higher nutrient value compare to spirulina chorella. It contains strong vitality and can be quickly absorbed by human body without excessive decomposition. It was recognized by the United Nations Food Conference as “the most ideal food for human being” and the World Health Organization referred it as “the best health care product for human in the 21st century”.
(b) Akero Karela
Bitter gourd is not the popular vegetable to eat on its own. However, bitter gourd is important especially for the liver. It can detoxify and lower blood fat. Akero Karela made with bitter gourd peptides provide human body with the desired nutrient balance, activate cells and strengthen the body organs. It also help to improve your health, prevents constipation and prevents toxins from accumulating in your body.
(c) UNIBERSIH
Unibersih is a natural and unpolluted herbal essence. This unique essence which consist of a total of eleven kinds of organic natural herbs is an all-rounded detoxification element which can excrete waste and toxins thoroughly. It is applicable to those problems brought to our body in modern living, such as constipation, pigmentation, overweight, bad breath, unsound sleep, lack of physical strength, indigestion, abdominal swelling, dry and pale skin, poor immune system etc. It can also strengthen the function of detoxification.
(d) SOPHIELICIOUS
Sophielicous is an anti-aging supplement formulated by using a novel processing technology and the ingredients consists of 3 types of plant stem cells and collagen tri-peptide to enhance the longevity of skin cells. Apple stem cell obtained from the rare and endangered Swiss apple which found rich in epigenetic factors and metabolites to activate sleeping cell, repairs and regenerates new cell; Grape stem cell ensures the vitality and generation capacity of the skin, to protect and prevent the UV damage and pigmentation thus even the skin tone; Argon stem cell derived from very resistant and rare argon tree is for a deep-seated rejuvenation of the skin, restoration of the skin’s firmness and wrinkle reduction. It also contains the wonder from deep sea: marine collagen used is in the very short chain of amino acids known tri-peptide. Collagen tri-peptide with the small molecule size can be absorbed fast to the body compare to others collagen, works as cushion and support the epidermis, making it firm and preventing our skin from sagging; lastly the green tea extracts work as powerful antioxidant for the cell protection. Combining all benefits, Sophielicious provides significant anti-aging effect and restores skin.
(e) AKERO SECRET ANTI-AGING SKIN CARE GOLD SERIES
Umatrin introduces our own anti-aging skin care series known as “AKERO SECRET”. The product was developed with 100% natural botanical active ingredients and adopted a unique nanotechnology for skin hydration and anti-aging. This technology gives user a luminous, firm and flawless skin. It improves skin tone in just 7 days and skin will look more plump in just 14 days. After 28 days, skin will look more translucent. Continuous use will improve skin elasticity, lightens pigmentation, for a brighter looking skin. AKERO SECRET includes moisturizing cleansing foam, facial toner, brightening serum, soothing emulsion, ageless cream and protective sunscreen.
(f) AKERO Beauty Serum
This exclusive Akero Beauty Serum contained the latest Swiss Apple Stem Cell active ingredients which help to neutralizes and repairs the effects of emotional and environmental stress on the skin. It helps to restore the skin complexion, firm up and reduce fine wrinkle lines, makes the skin look fuller, whiter, younger and more beautiful. As we age, the reduced turnover of our cells means we can lose control over how our skin ages, and Epidermal stem cells needed to create healthy new skin are significantly reduced and function less efficiently. Scientists have found that a novel extract derived from the stem cells of a rare apple tree cultivated for its extraordinary longevity shows tremendous ability to rejuvenate aging skin. By stimulating aging skin stem cells, this plant extract has been shown to lessen the appearance of unsightly wrinkles. Clinical trials show that this unique formulation increases the longevity of skin cells, resulting in skin that has a more youthful and radiant appearance.
(g) AKERO Fruit Juice - Resveratrol Natural Antioxidants
Resveratrol is a natural antioxidant, can reduce blood viscosity, inhibiting platelet aggregation and vasodilation, maintain blood flow, can prevent the occurrence and development of various cardiovascular problems. Resveratrol through a variety of different ways to play a variety of effects has anti-allergic, antipyretic and analgesic activity. Resveratrol can inhibit cell inflammation; cell inflammation can lead to arthritis and other diseases.
(h) AKERO Gold Mask
Akero Gold Mask helps to renew skin, improve blood circulation and is high in antioxidants and minerals. The effects of this product are seen almost immediately with visible improvement to the skin firmness and reduction of the appearance of fine lines and wrinkles. It provides instant skin clarity and toning leaving your skin looking radiant, youthful and revitalize.
(i) AKERO Warming Lipstick
Akero Warming Lipstick contains 100% natural ingredients and does not contain any sort of toxins, irritants or paraffin which may bring harm to the lips. This lipstick has fullerene which helps to enhance the vitality and give nourishment for the lips. Moreover, it contains bitter ginseng root extract for lips protection and sodium hyaluronic acid to lock the moisture in the lips. Akero Warming Lipstick also contains Vitamin E which improves the lips texture. The most important feature of Akero Warming Lipstick is, it is manufactured using temperature technology and lip temperature discoloration technology. This lipstick does not fade and the color will last long on the lips unlike other lipsticks. This lipstick is guaranteed that it does not leave any stain or traces. Akero Warming Lipstick creates exclusive color which will be the secret of your confidence to show your best look always.
(j) AKERO Feminine Wash
Akero Feminine Wash a specially designed sulfate-free intimate wash for a woman’s special cleansing needs. Apple extracts will stay fresh and free of any discomfort throughout the day. Female’s body parts are so much sensitive and need to be treated like one. We cannot simply use the same cleanser for all of female’s body part. Feminine or vaginal wash is a product specially designed to take care of female’s private body part from unwanted odor, infections and to provide extra safe cleansing.
Raw Materials and supplies
We do not depend on principal suppliers for any of our single product. Most of the raw materials were supplied by various suppliers and some are repackaged in Malaysia. Akero Secret, our anti-aging skin care product, was manufactured in Taiwan.
Intellectual Property
On December 31, 2015, our trademark “AKERO SECRET” was successfully registered with the Trademark Registry of Malaysia.
Licenses and agreements
Our manufacture, Nutriskin Marketing Sdn. Bhd., possessed two licenses for our products from Ministry of Health Malaysia, as listed below:
No.
Name of Product
Validity Period
MAL/Notification Number
License Holder
1.
AKERO FEMININE WASH
August 19, 2020 - August 19, 2022
NOT200804869K
AKERO FEMININE WASH
2.
Jian-Mei-Nin (Unibersih)
July 30, 2015 - July 30, 2020
MAL20001394T
Jian-Mei-Nin(Unibersih)
Customers
We do not depend on any major customers. Our customers’ basis consists of retail-based end-users and dealers.
Government Regulation
All of our health and beauty products are approved by our Ministry of Health in Malaysia.
Our Marketing Strategies
Umatrin markets products via online to offline. Umatrin believes that via online channel, we are able to reach our target audiences around the world. Based on Euromonitor International, internet retailing of health and beauty shows fast growth in Asia Pacific Market. As for our offline channel, we have one retail store in Malaysia, whereby anyone can step in and try our products. Following Umatrin’s Mission: Improve each standard of living. We provide our customer with quality health and beauty products and also allow them to host event to share our products and at the same time earning additional credit for each sale during the event. Consequently, we will appoint them as our dealers if they wish to start-up their own business. Umatrin will provide market support to the dealers, such as advertisements, products introductory speeches and website to introduce the products to public. This strategy allows Umatrin’s products to reach to each and every single person around the Asia Pacific as Umatrin’s believe the best advertising will always be by way of word-of-mouth referrals.
Most of our customers and dealers are from Malaysia. We have 20,000 dealers in Malaysia. From Umatrin’s sales, we have seen a market trend that consumers are buying more anti-aging products from us.
Industry Trends- Anti-Aging Products Market
The global market for Anti-Aging Products is projected to exceed US$260 billion by 2022, driven by the expanding base of aging population, growing prominence of non-invasive cosmetic procedures and steady launch of high-efficacy products. The desire to look young and retain beauty and health is a major consumer psychological factor influencing growth in the market. While older women remain the primary customer base, adoption of preventive skin care regimen among women in the 20s and 30s age group to safeguard against premature aging is bringing younger consumers into the spotlight. Other major factors also influencing growth in the market include growing research in skin biology and new understanding into the regenerative potential of stem cells; emergence of probiotic skincare technology for visibly radiant and younger looking skin; innovation in anti-aging active ingredients such as hydroxypropyl tetrahydropyrantriol, salicyloyl phytosphingosine and anti-tyrosinase; and the rise of the “she-economy” comprising senior women aged over 50 with high net worth. The United States and Europe represent the largest markets worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 6.3% over the analysis period led by factors such as aggressive retail marketing, rising health and beauty awareness, rising disposable incomes and increasing per capita spending on appearance maintenance cosmetic products among the growing base of affluent middle-class population (http://www.strategyr.com/MarketResearch/Anti_Aging_Products_Market_Trends.asp).
Hence, Umatrin is moving towards developing our own brand and anti-aging products. Recently we have developed a 100% natural anti-aging skin care series products under the brand “AKERO SECRET”. We have received lots of positive feedbacks on this new skin care series. GCI Magazine had reported that “In anti-aging and beauty trends, the desire for more natural ingredients is one of the fastest growing around the world. Zion Market Research has published a new report titled ”Anti-Aging Market (Baby Boomer, Generation X and Generation Y), by product (Botox, Anti-Wrinkle Products, Anti-Stretch Mark Products, and Others), by Services (Anti-Pigmentation Therapy, Anti-Adult Acne Therapy, Breast Augmentation, Liposuction, Chemical Peel, Hair Restoration Treatment, and Others), by Device (Microdermabrasion, Laser Aesthetics, Anti-Cellulite Treatment and Anti-Aging Radio Frequency Devices) : Global Industry Perspective, Comprehensive Analysis, Size, Share, Growth, Segment, Trends and Forecast, 2015 - 2021”. According to the report, the global anti-aging market was valued at USD 140.3 billion in 2015, is expected to reach USD 216.52 billion in 2021 and is anticipated to grow at a CAGR of 7.5% between 2016 and 2021.
In view of the above, Umatrin does not stop right here, but aims at developing and manufacturing more anti-aging products to benefit the public enlarged. In order to achieve this, additional capital funds are required for Umatrin to venture into manufacturing industry and expanding further research and development to develop more and more quality products.
Competitive Analysis
Market Analysis
Asia is the Earth’s largest and most populous continent. It comprises 30% of Earth’s land area, and has historically been home to 60% of the planet’s human population (roughly 4.4 billion people reside in Asia). Asia is notable for not only the overall large size, but unusually dense and large settlements as well as vast barely populated regions. Rising individual incomes and changing lifestyles drive the global beauty care products industry.
Lucintel, a leading global management consulting and market research firm, has analyzed the global beauty care industry and presents its findings in “Global Beauty Care Products Industry 2012-2017: Trend, Profit, and Forecast Analysis.” The industry encompasses manufacturers’ segment revenue related to beauty care products. As per the study, increased awareness has resulted in higher demand for luxury products, especially cosmetics. Providing quality products at a low cost is a challenge for manufacturers. Skincare, the largest segment, represents the growth in products during the forecast period. Increased demand for multi-feature products such as moisturizing cream with sun protection and anti-aging or anti-wrinkle properties are likely to drive market growth.
The cosmetics segment also has growth potential as demand is increasing for premium cosmetics in the expanding middle class in developing countries.
Many famous companies sell their cosmetic products online also in countries where they do not have representatives. At present, cosmetics industry is focusing on launching organic cosmetic products because people are now becoming more and more conscious about the chemicals and the harmful effects in the cosmetics. Players are globally exploring the markets to tap the hidden growth potential. Regulatory bodies are also ensuring that consumers have full knowledge about the ingredients of products and hence focusing on labeling.
A new global anti-ageing report from Research and Markets, forecasts the global product market will grow at a CAGR of 6.7% over the period 2013-2018, with the rising global ageing population being the main driver. (www.cosmeticsdesign-europe.com)
Competitors
The beauty and health industry is highly competitive and, at times, subject to rapidly changing consumer preferences and industry trends. Competition generally provides incentives to boost brand strength, assortment and continuity of merchandise selection, reliable order fulfillment and on-time delivery, and a higher level of brand support and customer support. We compete with a large number of multi-national manufacturers of beauty and health products, many of which have significantly greater resources than we do. Many of our competitors also have the ability to develop and market products similar to and competitive with our products. Specifically, we compete with the major skin care companies which market many brands including Avon, Chanel, Clarins, Clinique, Estée Lauder, L’Oréal, Lancôme, Neutrogena and Shiseido, major health supplement companies which market many brands including USANA, CVS, Nature Made and Carlson Labs. Most, if not all of these competitors, have launched anti-aging skin care products. We also compete with several smaller prestige boutique and designer anti-aging products brands.
We believe that we compete primarily on the basis of product differentiation, sales and marketing strategy and distribution model. We focus on anti-aging industry by introducing quality natural products to be consumed or applied on skins to naturally reach the ultimate results. In addition, we are moving forward to develop our innovative product formulation and differentiated product concepts. We believe that our expertise within the anti-aging industry, brand authenticity and loyal consumer base, and multi-channel marketing and distribution expertise provide us with competitive advantages in the market for prestige anti-aging beauty and health products.
Principal Methods of Competition
A core element of our success is our distinctive Online to Offline (O2O) marketing strategy and multi-channel distribution model. We focus on educating consumers about the unique benefits of our products, developing intimate relationships with consumers, capitalizing on our multi-channel distribution strategy to effectively reach and engage those consumers and allowing our consumers to enjoy the benefit to be profitable by sharing the same to other consumers. We believe educational media such as products introductory demo and continuous products roadshows are effective at informing consumers about the innovative product formulation, application technique and resulting benefits of our products. We also believe that our company-owned boutiques enhance the authenticity of our brand and provide a personal environment in which we offer our broadest product assortment and provide one-on-one consumer consultations and product demonstrations. At the same time, our physical presence at the event hosted by our dealers have helped to further strengthen our brand image and provide additional points of contact to educate consumers about our products. Moreover, this model allows us to:
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acquire new consumers and maintain premium brand positioning without large expenditures on print-based advertising and marketing common in our industry;
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provide consumers the ability to select the most convenient channel to purchase our products;
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develop intimate consumer relationships that foster brand loyalty and encourage repeat purchases;
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build a base of recurring revenues as a substantial percentage of our consumers participate in our product continuity programs through which products initially purchased are automatically replenished; and
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drive traffic across our sales channels.
We believe that our company benefits from strong consumer loyalty as well as the emotional connection formed between our consumers and our brand. In turn, we believe that our consumers are strong advocates for our brand and have displayed a desire and willingness to convert others to our brand. Strong consumer loyalty has resulted in the development of a community of consumers who share a passion for our products and our brand. This community has expressed itself through attendance at events we sponsor, as well as events initiated by individual consumers. In addition, these loyal consumers have established multiple online community independent of the Company’s efforts. This loyal community of users provides invaluable feedback that we often incorporate into our product development.
As consumers continue to blend their off-line and on-line activities, from “showrooming” and retail apps to sofa shopping and click-and-collect, the lines between internet retailing, e-commerce and physical retailing are increasingly blurred. Big retailers are taking an “omni-channel” approach by merging their offline, on-line and mobile capabilities to create a seamless experience for shoppers. To elaborate, consumer behavior driving internet sales surge. E-commerce and m-commerce have changed the way that consumers’, even those who still visit physical stores, approach on shopping. The main drivers of e-commerce include: the search for value and convenience; increased access to, and usage of, the internet; faster download speeds; improved delivery and online payment methods; and the shift towards mobile devices such as smartphones and tablets. Hence, we will be co-operating with our partners to allow our consumer to purchase our products by just a click at their mobile devices apps.
We use third-party contract manufacturers and suppliers to obtain substantially all raw materials, components and packaging products and to manufacture finished some of products relating to our Umatrin and AKERO SECRET brands products. We utilize approximately 20 different product and packaging suppliers from which we source and contract manufacture our products. Suppliers purchase all necessary raw materials, including the natural ingredients used to manufacture our products.
With respect to our other third-party manufacturers, we make purchases through purchase orders. We believe that we have good relationships with our manufacturers and that there are alternative sources in the event that one or more of these manufacturers is not available. We continually review our manufacturing needs against the capacity of our contract manufacturers to ensure that we are able to meet our production goals, reduce costs, and operate more efficiently.
Research and Development
We previously invested approximately $19,500 for a third-party manufacturer to develop AKERO SECRET. We did not incur additional research and development expenses in the fiscal year ended December 31, 2020.
Employees
Umatrin’s core team has served with numerous companies like E-commerce, financial sector companies and variety of internet services. The team has over five years’ experiences in operating and managing E-commerce sites, brand marketing, product development and financial security. The team also has over ten years’ experiences in internet performance and security and was involved in world-class networking enterprises. We currently have 22 full-time employees.

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ITEM 1A. RISK FACTORS
Item 1A. Risk Factors.
Smaller reporting companies are not required to provide the information required by this item.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B. Unresolved Staff Comments.
Smaller reporting companies are not required to provide the information required by this item.

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ITEM 2. PROPERTIES
Item 2. Properties.
We own the following property:
Location
Area
(square meters)
Certificate No.
Encumbrance
No. 32, Jalan Radin Bagus 3, Bandar Baru Seri Petaling, 57000 Kuala Lumpur
178.4
Parcel of land held under PM8479
Leasehold property with its lease term expiring on May 4, 2110.

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ITEM 3. LEGAL PROCEEDINGS
Item 3. Legal Proceedings
To the best of our knowledge, except as set forth below, there are no material pending legal proceedings or threat against us to which we are a party or of which any of our property is the subject. From time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.
A former Director of the Company represents that the Company owes back compensation for services he believes he rendered to the Company and expenses he paid on behalf of the Company. No claim has been filed against the Company for potential damages; accordingly, the Company is unable to reasonably estimate a potential loss or liability in this matter including related legal costs. In the event that a claim is filed against the Company, the Company will provide further disclosure and intends to fight such claim.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4. Mine Safety Disclosures.
Not Applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Our common stock is quoted on the OTC Markets, or OTC, under the symbol “UMHL”. As of April 14, 2021, the closing price for our common stock was $0.045 per share. The bid prices set forth below reflect inter-dealer quotations, do not include retail markups, markdowns or commissions and do not necessarily reflect actual transactions.
The following table sets forth, for the periods indicated, the high and low bid prices of our common stock.
High
Low
Fiscal Year Ended December 31, 2021
First Quarter
$ 0.0840
$ 0.0130
Fiscal Year Ended December 31, 2020
First Quarter
$ 0.0168
$ 0.0100
Second Quarter
$ 0.0280
$ 0.0046
Third Quarter
$ 0.0370
$ 0.0105
Fourth Quarter
$ 0.0210
$ 0.0122
Fiscal Year Ended December 31, 2019
First Quarter
$ 0.0300
$ 0.0200
Second Quarter
$ 0.0200
$ 0.0200
Third Quarter
$ 0.0200
$ 0.0170
Fourth Quarter
$ 0.1480
$ 0.0150
Holders
As of April 14 2021, there are approximately 122 shareholders of record of our common stock.
Dividends
Since inception we have not paid any dividends on our common stock. We currently do not anticipate paying any cash dividends in the foreseeable future on our common stock, when issued pursuant to this offering. Although we intend to retain our earnings, if any, to finance the exploration and growth of our business, our Board of Directors will have the discretion to declare and pay dividends in the future.
Payment of dividends in the future will depend upon our earnings, capital requirements, and other factors, which our Board of Directors may deem relevant.
Recent Sale of Unregistered Securities
There were no unregistered sales of the Company’s equity securities during the fiscal year ended December 31, 2020, that were not otherwise disclosed in a Quarterly Report on Form 10-Q or Current Report on Form 8-K.
Equity Compensation Plan Information
None.

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ITEM 6. SELECTED FINANCIAL DATA
Item 6. Selected Financial Data.
Smaller reporting companies are not required to provide the information required by this item.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The information set forth in this Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") contains certain "forward-looking statements”. Forward-looking statements are statements other than historical information or statements of current condition. Some forward-looking statements may be identified by use of terms such as "believes", "anticipates", "intends" or "expects". These forward-looking statements relate to our plans, liquidity, ability to complete financing and purchase capital expenditures, growth of our business including entering into future agreements with companies, and plans to successfully develop and obtain approval to market our product. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs.
You should read the following discussion and analysis in conjunction with the Financial Statements and Notes attached hereto, and the other financial data appearing elsewhere in this report.
US Dollars are denoted herein by "USD", "$" and "dollars".
Overview
Umatrin Holding Limited (formerly known as Golden Opportunities Corporation) (“UMHL”) was incorporated in the state of Delaware on February 2, 2005. UMHL was originally incorporated in order to locate and negotiate with a targeted business entity for the combination of that target company with the Company.
On January 6, 2016, UMHL acquired 80% of the equity interests of U Matrin Worldwide SDN. BHD. ("Umatrin") in exchange for the issuance of a total of 100,000,000 shares of its common stock to the two holders of Umatrin, Dato' Sri Eu Hin Chai and Dato' Liew Kok Hong. Immediately following the Share Exchange, the business of Umatrin became the business of UMHL. The Company’s operation office remained in Malaysia and the business market will remain focus in Asia.
Umatrin, formerly known as OLC Worldwide SDN. BHD., was incorporated in Malaysia on July 22, 1993. Umatrin has curated non-toxic beauty, personal care to health and wellness products. We market our products through three primary methods: direct contact, online distribution and/or by our dealer program. We apply leading O2O (Online to Offline) marketing strategy to both retail and wholesale trade. We provide technology and services to enable consumers, merchants and other participants to conduct business in our cloud-based trading system. We use advanced network technology and rigorous management system to create unlimited business brand space. Without allocating large sums of operating cost, it continuously introduces new products, combined with O2O internet business model and career opportunities.
Results of Operations - Comparison for the year ended December 31, 2020 and 2019
Sales
For the year ended December 31, 2020, the Company generated $3,681,484 in revenues, which has an increase of $2,476,931, or 206% compared to the year ended December 31, 2019. This was due to increase in sales volume for Akero product series as the economy was improving.
Gross profit and gross margin
The Company was able to generate a gross profit margin of $1,536,066 for the year ended December 31, 2020, which has an increase of $562,683 or 58% compared to the year ended December 31, 2019. This was due to increase in sales volume for new Akero product series which has higher profit margin and improvement in the overall market condition.
Selling, general and administrative costs
Major operating costs include salaries and wages, advertising and promotional costs for the years ended December 31, 2020 and 2019. Selling, general and administrative costs decreased from $854,212 for the year ended December 31, 2019 to $815,111 for the year ended December 31, 2020. The decrease was due to increase in operating efficiency and reduction in utility cost.
Net income
For the year ended December 31, 2020, the Company had $498,542 in net profit as compared to $95,138 in net profit for the year ended December 31, 2019, which was an increase in net profit of $403,404. The Company will continue to implement new marketing strategies to improve its financial position.
Liquidity and Capital Resources
We had cash and cash equivalent of $50,459 and $171,678 as of December 31, 2020 and 2019, respectively.
Our company's operations have been funded through an equity financing and a series of debt transactions, primarily with shareholders, directors, and officers of our company and affiliated entities. These related party debt transactions such as advances have operated as informal lines of credit since the inception of our company, and related parties have extended credit as needed which our company has repaid at its convenience. We anticipate that we will incur operating losses in the foreseeable future and we believe we will need additional cash to support our daily operations while we are attempting to execute our business plan and produce revenues. If our related parties are unable or unwilling to provide additional capital, we would likely require financing from third parties. There can be no assurance that any additional financing will be available to us, on terms we believe to be favorable or at all. The inability to obtain additional capital would have a material adverse effect on our operations and financial condition and could force us to curtail or discontinue operations entirely and/or file for protection under bankruptcy laws.
The following table sets forth information about our net cash flow for the years ended December 31, 2020 and 2019:
For the years ended
December 31,
December 31,
Net cash provided by (used in) operating activities
728,908
344,732
Net cash provided by (used in) investing activities
(53,185 )
(82,872 )
Net cash provided by (used in) financing activities
(794,222 )
(128,932 )
Operating Activities
For the year ended December 31, 2020 we generated $728,908 in operating activities as compared to generated $344,732 in operating activities during the year ended December 31, 2019. The movement in net cash used in operating activities resulted from the movement in inventory, prepaid tax, other receivables and deposits, accounts payable and accrued expenses and other payables.
Investing Activities
During the year ended December 31, 2020 we used $53,185 in investing activities as compared to using $82,872 in investing activities during the year ended December 31, 2019. The movement in net cash used in investing activity resulted from purchase of equipment.
Financing Activities
During the year ended December 31, 2020, we used $794,222 in financing activities as compared to using $128,932 in financing activities during the year ended December 31, 2019.
During the year ended December 31, 2020, the net cash provided by financing activities resulted from net repayment to related party of $726,690 and net repayment for borrowings of $67,532.
During the year ended December 31, 2019, the net cash provided by financing activities resulted from net repayment received from related party of $147,797 and net repayment to term loan of $18,865.
Loan Commitment
On December 23, 2014, MYR 2,300,000 (approximately $657,507) term loan was granted to Umatrin for the purchase of four Story Shop Offices located at No.32, 32-1, 32-2, 32-3, Jalan Radin Bagus 3, Bandar Baru Seri Petaling, 57000, Kuala Lumpur with a repayment period of 240 months. This term loan was secured by (i) title deed for the said property, and (ii) way of guarantee by directors of the Company. This term loan is subject to an interest charges at 2.10% per annum below the Bank's Base Lending Rate ("BLR") with daily rests. The BLR is currently at 6.85% for both December 31, 2020 and December 31, 2019.
On July 27, 2015, the drawdown of MYR2,300,000 (approximately $609,554) was made and repayment effectively starts on December 1, 2015 with a fixed installment of MYR14,863.14 (approximately $3,561) for 240 installments.
Interest expenses were $15,438 and $23,576 for the years ended December 31, 2020 and 2019, respectively.
We have no known demands or commitments and we are not aware of any events or uncertainties as of December 31, 2020 that will result in or that are reasonably likely to materially increase or decrease our current liquidity.
We had no material commitments for capital expenditure for the years ended December 31, 2020 and 2019 except mentioned above.
Going Concern
Our financial statements have been prepared on a going concern basis. As reflected in the accompanying financial statements, the Company had accumulated deficit of $2,993,454 as of December 31, 2020 which include a profit of $498,542 for the year ended December 31, 2020. We expect to finance our operations primarily through our existing cash, our operations and any future financing. However, there exists substantial doubt about our ability to continue as a going concern because we will be required to obtain additional capital in the future to continue our operations and there is no assurance that we will be able to obtain such capital, through equity or debt financing, or any combination thereof, or on satisfactory terms or at all. Additionally, no assurance can be given that any such financing, if obtained, will be adequate to meet our capital needs. If adequate capital cannot be obtained on a timely basis and on satisfactory terms, our operations would be materially negatively impacted. Therefore, our auditor has substantial doubt as to our ability to continue as a going concern. Our ability to complete additional offerings is dependent on the state of the debt and/or equity markets at the time of any proposed offering, and such market's reception of the Company and the offering terms. There is no assurance that capital in any form would be available to us, and if available, on terms and conditions that are acceptable.
Critical Accounting Policies and Estimates
Please refer to Note 2 of our Consolidated Financial Statements included in the financial statements for the year ended December 31, 2020 for details of our critical accounting policies.
Off Balance Sheet Arrangements
We do not have any off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, sales or expenses, results of operations, liquidity or capital expenditures, or capital resources that are material to an investment in our securities.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
Smaller reporting companies are not required to provide the information required by this item.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8. Financial Statements and Supplementary Data.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of Umatrin Holding Limited
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheet of Umatrin Holding Limited and subsidiaries (the “Company”) as of December 31, 2020, and the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows for the year ended December 31, 2020, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Umatrin Holding Limited as of December 31, 2020, and the results of its operations and its cash flows for the year ended December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.
The Company’s Ability to Continue as a Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.
Yichien Yeh, CPA
We have served as the Company’s auditor since 2020.
Oakland Gardens, New York
April 14, 2021
UMATRIN HOLDING LIMITED
CONSOLIDATED BALANCE SHEETS
(AUDITED)
December 31,
December 31,
Assets
Current Assets
Cash and cash equivalents
$ 50,459
$ 171,678
Accounts receivables
15,980
-
Accounts receivables-related parties
22,301
-
Inventory
31,303
27,611
Prepaid tax
6,666
13,348
Deferred tax assets
-
10,484
Due from related parties
523,704
398,580
Total Current Assets
650,413
621,701
Land, property and equipment, net
860,787
889,285
Deposits
45,552
19,874
Total Assets
1,556,752
1,530,860
Liabilities
Current Liabilities
Term loan payable-current portion
32,058
22,533
Hire purchase-current portion
20,296
10,917
Accounts payable and accrued expenses
431,082
231,812
Other payables
204,185
202,400
Due to related parties
354,971
983,210
Total Current Liabilities
1,042,592
1,450,872
Term loan payable-long term
343,408
435,924
Hire purchase payable-long term
61,289
53,013
Total Long Term Liabilities
404,697
488,937
Total Liabilities
1,447,289
1,939,809
Equity
Umatrin Holding Limited Stockholders' Equity
Preferred stock: 10,000,000 authorized; $0.00001 par value
0 and 0 shares issued and outstanding
-
-
Common stock: 500,000,000 authorized; $0.00001 par value
182,444,266 shares issued and outstanding
1,825
1,825
Additional paid in capital
3,136,561
3,136,561
Accumulated deficits
(2,993,454 )
(3,369,169 )
Accumulated other comprehensive loss
(115,048 )
(130,943 )
Total Umatrin Holding Limited Stockholders' Equity
29,884
(361,726 )
Non-controlling interest
79,579
(47,223 )
Total Equity
109,463
(408,949 )
Total Liabilities and Stockholders Equity
$ 1,556,752
$ 1,530,860
See accompanying notes to financial statements
UMATRIN HOLDING LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(AUDITED)
For the Years Ended
December 31,
December 31,
Sales
$ 3,376,684
$ 1,204,553
Sales-related parties
304,800
-
3,681,484
1,204,553
Cost of sales
2,145,418
231,170
Gross profit
1,536,066
973,383
Operating expenses
Selling, general & administrative expenses
815,111
854,212
Total operating expenses
815,111
854,212
Profit/(Loss) from operations
720,955
119,171
Other income (expenses)
Interest expense
(17,142 )
(24,033 )
Total other income (expenses)
(17,142 )
(24,033 )
Net profit/(loss) before income taxes
703,813
95,138
Provision for income taxes
(205,271 )
-
Net profit/(loss)
$ 498,542
$ 95,138
Less: Net profit/(loss) attributable to non-controlling interest
$ 122,827
$ 42,102
Net profit/(loss) attributable to Umatrin Holding Limited
$ 375,714
$ 53,036
Other comprehensive profit/(loss), net of tax
Foreign currency translation adjustment
19,870
6,192
Comprehensive profit/(loss)
518,412
88,947
Comprehensive profit/(loss) attributable to the non-controlling interest
126,801
40,864
Comprehensive profit/(loss) attributable to Umatrin Holding Limited
$ 391,611
$ 48,083
Loss per common share - basic and diluted
$ 0.00
$ 0.00
Weighted average number of shares outstanding - basic and diluted
182,444,266
182,444,266
See accompanying notes to financial statements
UMATRIN HOLDING LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(AUDITED)
For the Years Ended
December 31,
December 31,
Cash flows from operating activities
Net profit/(loss) including non-controlling interest
$ 703,813
$ 95,138
Adjustment to reconcile net profit/(loss) from operations:
Depreciation expense
88,276
78,170
Changes in Operating Assets and Liabilities
Inventory
(3,330 )
(9,172 )
Prepaid tax
(198,706 )
92,828
Accounts receivables and deposits
(61,582 )
9,990
Deferred tax assets
10,211
-
Accounts payable and accrued expenses
232,893
48,014
Income tax payable
-
-
Other payables
(42,668 )
29,764
Advance from customers
-
-
Net cash provided by operating activities
728,908
344,732
Cash flows from investing activity
Purchase of property and equipment
(53,185 )
(82,872 )
Advances received from/(made to) related parties
Net cash provided by used in investing activity
(53,185 )
(82,872 )
Cash flows from financing activities
Proceeds from common stock issued and to be issued
-
-
Proceeds/(Repayment) to related party, net
(726,690 )
(147,797 )
Proceeds/(Repayments) from loan, net
(67,532 )
18,865
Net cash used in financing activities
(794,222 )
(128,932 )
Effect of exchange rate changes
(2,720 )
2,318
Net increase (decrease) in cash and cash equivalents
(121,219 )
135,247
Cash and cash equivalents at beginning of period
171,678
36,431
Cash and cash equivalents at end of period
$ 50,459
$ 171,678
Supplemental disclosures of cash flow information
Interest paid
$ 17,142
$ 24,033
Income taxes (refund)/paid
$ 198,706
$ (92,828 )
See accompanying notes to financial statements
UMATRIN HOLDING LIMITED
STATEMENTS OF OWNERS' EQUITY
For the Years Ended December 31, 2020 and 2019
Umatrin Holding Limited Shareholders'
Accumulated
Common Stock, $0.00001
Additional Paid-In
Retained
Earnings
Other
Comprehensive
Non-
controlling
Total
Shares
Amount
Capital
(Deficit)
Loss
Interest
Equity
Balance, December 31, 2018
182,444,266
$ 1,825
$ 3,136,561
$ (3,422,205 )
$ (125,991 )
$ (88,087 )
$ (497,897 )
Net income (loss)
53,036.00
42,102.00
95,138
Cumulative translation adjustment
(4,952.00 )
(1,238.00 )
(6,190 )
Balance, December 31, 2019
182,444,266
$ 1,825
$ 3,136,561
$ (3,369,169 )
$ (130,943 )
$ (47,223 )
$ (408,949 )
Net income (loss)
375,715
122,827
498,542
Cumulative translation adjustment
15,895
3,975
19,870
Balance, December 31, 2020
182,444,266
$ 1,825
$ 3,136,561
$ (2,993,454 )
$ (115,048 )
$ 79,579
$ 109,463
See accompanying notes to financial statements
UMATRIN HOLDINGS LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2020
(AUDITED)
1. ORGANIZATION
Umatrin Holding Limited (formerly known as Golden Opportunities Corporation) (“UMHL”) was incorporated in the state of Delaware on February 2, 2005. UMHL was originally incorporated in order to locate and negotiate with a targeted business entity for the combination of that target company with the Company.
On January 6, 2016, UMHL acquired 80% of the equity interests of U Matrin Worldwide SDN. BHD. ("Umatrin") in exchange for the issuance of a total of 100,000,000 shares of its common stock to the two holders of Umatrin, Dato' Sri Eu Hin Chai and Dato' Liew Kok Hong. Immediately following the Share Exchange, the business of Umatrin became the business of UMHL.
U Matrin Worldwide SDN BHD, formerly known as OLC Worldwide SDN. BHD., was incorporated in Malaysia on July 22, 1993. The principal activities of Umatrin is direct selling and trading on beauty and personal care products, and investment holding.
UMHL entered into a share exchange agreement with Umatrin whereas the acquisition was accounted under US GAAP as a business combination under common control with UMHL being the acquirer as both entities were owned by the same controlling shareholders. Prior to the business combination, Dato' Sri Eu Hin Chai, through Umatrin Group Ltd., held 76% of the outstanding shares of common stock of the Company. Dato' Sri Eu Hin Chai and Dato' Liew Kok Hong beneficially owned 61.25% and 38.75% of Umatrin immediately prior to the closing. Accordingly, historical cost will be the basis for transfer of assets and liabilities in the business combination in accordance with ASC 805-50-30-5.
Umatrin Holding Limited and its subsidiary U Matrin Worldwide SDN. BHD. shall be referred as the “Company”.
The organization structure as follows:
Umatrin Holding Ltd.
(USA)
80%
U Matrin Worldwide SDN BHD
(Malaysia)
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States ("US GAAP").
The accompanying consolidated financial statements include the accounts of the Company and its subsidiary. Significant inter-company transactions have been eliminated in consolidation.
In accordance with ASC 805-50-45-5, for transactions between entities under common control, financial statements and financial information presented for prior periods have been be retroactively adjusted to furnish comparative information. The accompanying consolidated financial statements are presented retrospectively as though the share exchange agreement between the UMHL and Umatrin occurred at the beginning of the first period presented.
Use of estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Reclassification
Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported net income or losses.
Functional and presentation currency
The functional currency of Umatrin is the currency of the primary economic environment in which the Company operates which is Malaysia Ringgit (“MYR”).
Transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at the end of the reporting periods. Exchange differences arising on the settlement of monetary items and on translation of monetary items at period-end are included in income statement of the period.
For the purpose of presenting these financial statements, the Company’s assets and liabilities are expressed in US$ at the exchange rate on the balance sheet date, stockholder’s equity accounts are translated at historical rates, and income and expense items are translated at the weighted average exchange rate during the period. The resulting translation adjustments are reported under accumulated other comprehensive income in the stockholder’s equity section of the balance sheets.
Exchange rate used for the translation as follows:
Period End
Average
US$ to MYR
Rate
Rate
December 31, 2020
4.0567
4.2017
December 31, 2019
4.0925
4.1421
Fair value of financial instruments
The Company’s balance sheet includes financial instruments, including cash, term loan, accounts payable, accrued expenses, amounts due to related party and convertible notes payable to a related party. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.
Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy 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.
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2020. The respective carrying value of certain amounts on the balance sheet financial instruments approximated their fair values due to the short-term nature of these instruments.
Related parties
The Company adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.
Risks and Uncertainties
The Company’s operations are subject to significant risks and uncertainties including financial, operational and regulatory risks, including the potential risk of business failure.
Commitments and contingencies
The Company adopted ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.
Cash and cash equivalents
The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.
The cash and cash equivalents for the years ended December 31, 2020 and 2019 were $50,459 and $171,678 respectively.
Trade Receivables
Trade receivables are carried at anticipated realizable value. Bad debts are written off in the period in which they are identified. An estimate is made for doubtful debts based on a review of all outstanding amounts at the balance sheet date.
Bad debt expenses were $nil and $nil for the years ended December 31, 2020 and 2019, respectively.
At December 31, 2020 and 2019, the Company’s outstanding trade receivables were $38,281 and $nil.
Inventories
Inventories, which are primarily comprised of finished goods for sale, are stated at the lower of cost or net realizable value, using the first-in first-out (FIFO) method. The Company evaluates the need for reserves associated with obsolete, slow-moving and non-salable inventory by reviewing net realizable values on a periodic basis. Only defects products could be return to our suppliers.
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation and impairment losses, if any.
Depreciation is calculated under the straight-line method to write off the cost of the assets over their estimated useful lives.
Computer and software
5 years
Furniture and fittings
10 years
Office equipment
10 years
Renovation and improvements
10 years
Motor vehicle
5 years
Building
40 years
Land
95 years
An item of equipment is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising from de-recognition of asset is recognized in profit or loss.
Expenditures for repairs and maintenance, which do not improve or extend the expected useful lives of the assets, are expensed as incurred while major replacements and improvements are capitalized.
Impairment of Long-lived Assets
In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recorded no impairment charge for the years ended December 31, 2020 and 2019.
Revenue Recognition
The Company adopted ASU 201409, Topic 606 on January 1, 2018, using the modified retrospective method. ASC 606 requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.
The adoption of Topic 606 has no impact on revenue amounts recorded on the Company’s interim financial statements.
The Company generally recognizes product sales revenue when the performance obligation have been satisfied pursuant to Malaysia law, including such factors as contract existed with the customer, delivery and acceptance of products by customer has occurred, the sales price is fixed or determinable and allocated to the products sold, sales and value-added tax laws have been complied with, and collectability is reasonably assured. The Company estimates potential returns and records such estimates against its gross revenue to arrive at its reported net sales revenue.
Commission
The Company expenses commission costs as incurred and includes it in selling expenses. The Company expenses commission costs as incurred and includes it in selling expenses. The Company grants commission to dealers and promoters to promote and sell the products. Amount of commission is based upon agreed value between the Company and the dealers and promoters as there is no fix basis for such amount.
Advertising
The Company expenses advertising costs as incurred and includes it in selling expenses. The Company recorded $nil and $nil for advertising and promotions expenses during the years ended December 31, 2020 and 2019, respectively.
Income taxes and valuation allowance
The Company follows ASC 740, Income Taxes. The Company records deferred tax assets and liabilities for future income tax consequences that are attributable to differences between financial statement carrying amounts of assets and liabilities and their income tax bases. The measurement of deferred tax assets and liabilities is based on enacted tax rates that are expected to apply to taxable income in the year when settlement or recovery of those temporary differences is expected to occur. The Company recognizes the effect on deferred tax assets and liabilities of any change in income tax rates in the period that includes the enactment date. The Company record a valuation allowance to reduce deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized.
A tax benefit from an uncertain tax position may be recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that the relevant taxing authority that has full knowledge of all relevant information will examine each uncertain tax position. Although the Company believes the estimates are reasonable, no assurance can be given that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals.
Comprehensive Income (Loss)
The Company follows the provisions of the Financial Accounting Standards Board (the “FASB”) ASC 220 Reporting Comprehensive Income, and establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements. The Company’s comprehensive income (loss) consists of net income (loss) and foreign currency translation adjustments.
Segment Information
The Company adopted ASC-280, Disclosures about Segments of an Enterprise and Related Information, which requires certain financial and supplementary information to be disclosed on an annual and interim basis for each reportable segment of an enterprise. The Company believes that it operates in one business segment (marketing and sales) and in one geographical segment Malaysia, because all of the Company’s current operations are conducted in Malaysia.
Recent Accounting Pronouncements
In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which revises the accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance requires the fair value measurement of investments in equity securities and other ownership interests in an entity, including investments in partnerships, unincorporated joint ventures and limited liability companies (collectively, equity securities) that do not result in consolidation and are not accounted for under the equity method. Entities will need to measure these investments and recognize changes in fair value in net income. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities they classify under current guidance as available for sale in other comprehensive income (OCI). They also will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. Instead, for these types of equity investments that do not otherwise qualify for the net asset value practical expedient, entities will be permitted to elect a practicability exception and measure the investment at cost less impairment plus or minus observable price changes (in orderly transactions). The ASU also establishes an incremental recognition and disclosure requirement related to the presentation of fair value changes of financial liabilities for which the fair value option (FVO) has been elected. Under this guidance, an entity would be required to separately present in OCI the portion of the total fair value change attributable to instrument-specific credit risk as opposed to reflecting the entire amount in earnings. For derivative liabilities for which the FVO has been elected, however, any changes in fair value attributable to instrument-specific credit risk would continue to be presented in net income, which is consistent with current guidance. The standard is effective beginning January 1, 2018 via a cumulative-effect adjustment to beginning retained earnings, except for guidance relative to equity securities without readily determinable fair values which is applied prospectively. ‘ The adoption of this ASU did not have any impact on the Company’s consolidated results of operations and financial condition.
In February 2016, the FASB issued ASU No. 2016-02, Leases, replacing existing lease accounting guidance. The new standard introduces a lessee model that would require entities to recognize assets and liabilities for most leases, but recognize expenses on their income statements in a manner similar to current accounting. The ASU does not make fundamental changes to existing lessor accounting. However, it modifies what qualifies as a sales-type and direct financing lease and related accounting and aligns a number of the underlying principles with those of the new revenue standard, ASU No. 2014-09, such as evaluating how collectability should be considered and determining when profit can be recognized. The guidance eliminates existing real estate-specific provisions and requires expanded qualitative and quantitative disclosures. The standard requires modified retrospective transition by which it is applied at the beginning of the earliest comparative period presented in the year of adoption. The ASU is effective January 1, 2019. The Company adopted the new standard on January 1, 2019 using the modified retrospective method of adoption. The transition method expedient which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, prior periods have not been restated. The adoption of this ASU did not have any impact on the Company’s consolidated results of operations and financial condition as the Company did not have any leases at the time of adoption.
3. GOING CONCERN
As reflected in the accompanying financial statements, the Company had accumulated deficit of $2,993,454 as of December 31, 2020 which include a profit of $498,542 for the year ended December 31, 2020.
The Company ability to generate profit in the next 12 months is uncertain given that the market in which it operates is facing an economic slowdown. Management's plans include the raising of capital through the equity markets to fund future operations, seeking additional acquisitions, and generating profits through its business operations; however, there can be no assurances the Company will be successful in its efforts to secure additional equity financing and obtaining sufficient profit. These factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
4. SIGNIFICANT CONCENTRATION
Financial instruments which potentially expose the Company to concentrations of credit risk consist of cash and accounts receivable as of December 31, 2020 and 2019. The Company performs ongoing evaluations of its cash position and credit evaluations to ensure collections and minimize losses.
The major part of the Company’s cash at December 31, 2020 and 2019 is maintained at financial institutions in the Malaysia which provide insurance on deposit for up to MYR 250,000 for each depositor in a bank. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk in this area.
Geographic Concentration
For the years ended December 31, 2020 and 2019, the Company’s sales were mainly made to customers located in the Malaysia. In addition, total accounts receivables as of December 31, 2020 and 2019 also arose from customers located in the Malaysia.
Major parts of net assets of the Company are also located in the Malaysia.
Customer Concentration
The following table sets forth information as to the revenue derived from those customers that accounted for more than 10% of our revenue for the year ended December 31, 2020:
Amount
%
Gao Xue Mei
$ 564,122
15 %
The following table sets forth information as to the accounts receivable derived from those customers that accounted for more than 10% of our accounts receivable as of December 31, 2020:
Amount
%
MNS Sdn. Bhd.
$ 15,980
42 %
Aura Secret Sdn. Bhd.
$ 22,301
58 %
5. LAND, PROPERTY & EQUIPMENT
Land, property & equipment consist of the following:
December 31,
December 31,
Computer and software
$ 24,649
$ 21,795
Furniture and fittings
30,071
29,808
Office equipment
43,882
43,498
Renovations and improvements
354,034
350,937
Motor vehicle
134,131
81,007
Building
918,886
910,848
Land
225,455
223,483
Total
1,731,108
1,661,376
Less: accumulated depreciation
(870,321 )
(772,091 )
Net
$ 860,787
$ 889,285
The depreciation expense charged to general and administrative expenses were $88,276 and $78,170 for the years ended December 31, 2020 and 2019, respectively.
6. RELATED PARTIES TRANSACTIONS
As of December 31, 2020, accounts receivable from Aura Secret Sdn Bhd. is $22,301.
For the year ended December 31, 2020, the Company had $33,777, $117,203 and $154,220 sales from Aura Secret Sdn Bhd, Global Bizrewards Sdn. Bhd. and Global Patronage Sdn. Bhd., respectively.
Due from related parties consists of the following:
December 31,
December 31,
Purpose
Global Bizrewards Sdn. Bhd.
$ 199,679
$ 274,413
Advance
Koperasi Usahawan
57,010
105,382
Advance
Global Patronage Sdn Bhd
14,246
14,121
Advance
Yaya Media Sdn Bhd
1,870
Advance
SKH Media Sdn. Bhd.
246,462
-
Advance
Hipland Realty Sdn. Bhd.
4,437
4,398
Advance
Total Due from
523,704
398,580
Due to related parties consists of the following:
December 31,
December 31,
Purpose
Dato Sri Warren Eu Hin Chai
$ 320,473
$ 896,867
Capital Advance
Michael A. Zahorik
30,307
30,307
Capital Advance
Aura Secret Sdn. Bhd.
4,191
-
Capital Advance
SKH Media Sdn. Bhd.
-
56,036
Capital Advance
Total Due to
354,971
983,210
The related parties’ relationship to the Company as follows:
Name
Relationship
Michael A. Zahorik
Former director
Global Bizrewards Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
SKH Media Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
Dato Sri Warren Eu Hin Chai
Director & Shareholder of the Company
Koperasi Usahawan
Related by common director, Dato' Sri Eu Hin Chai
Global Patronage Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
Yaya Media Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
Aura Secret Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
Hipland Realty Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
The amounts due from or due to related parties’ were unsecured, non-interest bearing, and due on demand.
7. STOCKHOLDERS’ EQUITY
Equity -Common Stock
The Company has 182,444,266 shares of common stock issued and outstanding as of December 31, 2020.
8. COMMITMENTS, CONTINGENCIES, RISKS AND UNCERTAINTIES
Operating Lease Commitments
The Company entered into a property lease agreement for office space which started on December 1, 2014 and expired on October 31, 2015 for monthly payment of MYR10,000 (approximately $2,250). The lease was not renewed and the Company continues to rent the property on a month to month basis until June 30, 2018.
The rent expenses were $nil and $nil for the years ended December 31, 2020 and 2019, respectively.
Concentration and Credit risk
Cash deposits with banks are held in financial institutions in Malaysia, which are federally insured with deposit protection up to MYR250,000 (approximately $59,899). Accordingly, the Company has a concentration of credit risk related to the uninsured part of bank deposits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant credit risk.
The Company had no concentration in demand for its products.
The Company depends on few suppliers for its products. Accordingly, the Company has a concentration risk related to these suppliers. Failure to maintain existing relationships with the suppliers or to establish new relationships in the future could negatively affect the Company’s ability to obtain products sold to customers in a timely manner. If the Company is unable to obtain ample supply of products from existing suppliers or alternative sources of supply, the Company may be unable to satisfy the orders from its customers, which could materially and adversely affect revenues.
Contingent Liability
A former Director of the Company represents that the Company owes back compensation for services he believes he rendered to the Company and expenses he paid on behalf of the Company. The Company believes all balances owed to him have been settled in prior periods. The Company asserts that a claim has not be filed against the Company for potential damages; accordingly, the Company is unable to reasonably estimate a potential loss or liability in this matter including related legal costs. In the event that a claim is filed against the Company, the Company will provide further disclosure.
9. TERM LOAN
On December 23, 2014, MYR2,300,000 (approximately $657,507) term loan was granted to the Company for the purchase of a four-story office with a repayment period of 240 months.
The term loan was secured by the title deed for the said property and guaranteed by directors of the Company. The term loan is subject to an interest charges at 2.10% per annum below the Bank’s Base Lending Rate (“BLR”) with daily rests. The BLR is currently at 6.85% for December 31, 2020.
On July 27, 2015, the Company made a drawdown of MYR2,300,000 (approx. $609,554) on the term loan. The repayment started effectively on September 1, 2015 with a fixed installment of MYR14,863.14 (approx. $3,561) for 240 installments.
The outstanding balance of the term loan is $375,466, of which $32,058 is due within one year and classified as short term, and $343,408 is due after one year, and has classified as long term.
Interest expenses were $15,436 and $23,576 for the years ended December 31, 2020 and 2019, respectively.
December 31,
December 31,
Repayable within 1 year.
$ 32,058
$ 22,533
Repayable within 2 year
33,132
23,287
Repayable within 3 year
34,242
24,385
Repayable within 4 year
35,389
25,508
Repayable within 5 year
36,575
26,680
Repayable after 5 year
204,070
336,064
Total Due from
375,466
458,457
10. LEASE
The Company acquired motor vehicle under hire purchase agreements under capital lease. The lease arrangement requires monthly payments of $1,869 for a period of 36 to 84 months.
The Company has included the asset as motor vehicle as follows:
December 31,
December 31,
Motor vehicle
$ 134,130
$ 89,502
Less : accumulated depreciation
28,395
6,750
Net
105,735
82,752
Interest expenses were $1,706 and $457 for the years ended December 31, 2020 and 2019, respectively.
The future minimum payments under the capitalized lease, together with the present minimum value of net minimum lease payments at the period ended December 31, 2020 and December 31, 2019 as follows:
December 31,
December 31,
Repayable within 1 year.
$ 22,431
$ 10,917
Repayable within 2 year
22,431
10,917
Repayable within 3 year
17,666
10,917
Repayable within 4 year
11,013
10,917
Repayable within 5 year
11,013
10,917
Thereafter
7,346
9,345
Total
91,900
63,930
Less amount representing interest
9,823
8,851
Present value of lease payments
82,077
55,079
11. PROVISION FOR TAXES
United States
Umatrin Holding Ltd (“UMHL”) is established in the State of Delaware in United States and is subject to Delaware State and US Federal tax laws. UMHL has not recognized an income tax benefit for its operating losses based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses and other temporary differences, the realization of which could not be considered more likely than not. Further, the benefit from utilization of NOL carry forwards could be subject to limitations due to material ownership changes that could occur in the Company as it continues to raise additional capital. Based on such limitations, the Company has significant NOLs for which realization of tax benefits is uncertain. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not.
As of December 31, 2020, UMHL has accumulated net operating losses of $2,993,454 which carryovers as a deferred tax asset that begins to expire in 2025.
The net losses before income taxes and its provision for income taxes as follows:
For the years ended
December 31,
December 31,
Net loss before income taxes
(115,595 )
(115,373 )
Tax expenses (benefit) at the statutory tax rate
(24,275 )
(24,228 )
Tax effect of:
Valuation allowance
24,275
24,228
Income tax benefit
-
-
The components of deferred tax assets and liabilities as follows:
December 31,
December 31,
Deferred tax asset
Net operating losses carry forwards
525,652
501,377
Valuation allowance
(525,652 )
(501,377 )
Deferred tax assets, net
-
-
Malaysia
The Company’s subsidiary, U Matrin Worldwide Sdn Bhd, is established in Malaysia and its income is subject to Malaysia tax laws. The income tax rate is 17% (2019 : 17%) for the first MYR500,000 ($123,934) taxable income and 24% (2019 : 24%) thereafter.
The net income before income taxes and its provision for income taxes as follows:
For the years ended
December 31,
December 31,
Net profit before income taxes
819,408
210,511
Tax expenses (benefit) at the statutory tax rate
196,658
50,523
Tax effects of:
Utilization of deferred tax assets previously not recognized
(1,598 )
(50,523 )
Valuation of allowance on deferred tax assets
10,211
-
Income tax expense (benefit)
205,271
-
The components of deferred tax assets and liabilities as follows:
December 31,
December 31,
Deferred tax asset
Expenses not currently deductible
-
10,484
Valuation allowance
-
-
Deferred tax assets, net
-
10,484
The Company has prepaid income tax of $6,666 and $13,348 as of December 31, 2020 and 2019, respectively.
12. SUBSEQUENT EVENTS
Management has evaluated subsequent events through the date the financial statements were issued. Based on our evaluation, no events have occurred which require adjustment or disclosure.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
(1)
Previous Independent Registered Public Accounting Firm
On November 5, 2019, the Board of Directors of the Company appointed JLKZ CPA LLP ("JLKZ") as its new independent registered public accounting firm to audit and review the Company’s financial statements. During the two most recent fiscal years ended December 31, 2018 and December 31, 2017 and any subsequent interim periods through the date hereof prior to the engagement of JLKZ, neither the Company, nor someone on its behalf, has consulted JLKZ regarding:
(i)
either: the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that might be rendered on the Company’s consolidated financial statements, and either a written report was provided to the Company or oral advice was provided that the new independent registered public accounting firm concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or
(ii)
any matter that was either the subject of a disagreement as defined in paragraph 304(a)(1)(iv) of Regulation S-K or a reportable event as described in paragraph 304(a)(1)(v) of Regulation S-K.
(2)
New Independent Registered Public Accounting Firm
On June 25, 2020, the Board of Directors of the Company appointed Yichien Yeh, CPA (“Yeh”) as its new independent registered public accounting firm to audit and review the Company’s financial statements for the period ended September 30, 2020. During the two most recent fiscal years ended December 31, 2019 and December 31, 2018 and any subsequent interim periods through the date hereof prior to the engagement of JLKZ, neither the Company, nor someone on its behalf, has consulted Yeh regarding:
(I)
either: the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that might be rendered on the Company’s consolidated financial statements, and either a written report was provided to the Company or oral advice was provided that the new independent registered public accounting firm concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or
(ii)
any matter that was either the subject of a disagreement as defined in paragraph 304(a)(1)(iv) of Regulation S-K or a reportable event as described in paragraph 304(a)(1)(v) of Regulation S-K.

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ITEM 9A. CONTROLS AND PROCEDURES
Item 9A. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Limitations on Systems of Controls
Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. To address the material weaknesses identified in our evaluation, we performed additional analysis and other post-closing procedures in an effort to ensure our financial statements included in this annual report have been prepared in accordance with generally accepted accounting principles. Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the company’s principal executive and principal financial officers and effected by the company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:
•
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;
•
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and,
•
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, but not eliminate, this risk.
As of December 31, 2020, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control--Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO-2013 framework”) and SEC guidance on conducting such assessments. Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.
The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were lack of a functioning audit committee due to a lack of a majority of independent members; lack of a majority of outside directors on board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; inadequate segregation of duties consistent with control objectives and affecting the functions of authorization, recordkeeping, custody of assets, and reconciliation; and, management dominated by a single individual/small group without adequate compensating controls.
Management believes that the material weaknesses did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.
Management’s Remediation Initiatives
In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we have initiated, or plan to initiate, the following series of measures:
We will create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function when funds are available to us. And, we plan to appoint one or more outside directors to our board of directors who shall be appointed to an audit committee resulting in a fully functioning audit committee who will undertake the oversight in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and assumptions made by management when funds are available to us.
Management believes that the appointment of one or more outside directors, who shall be appointed to a fully functioning audit committee, will remedy the lack of a functioning audit committee and a lack of a majority of outside directors on our Board.
We will work as quickly as possible to implement these initiatives; however, the lack of adequate working capital and positive cash flow from operations will likely slow this implementation.
Changes in internal controls over financial reporting
There was no change in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

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ITEM 9B. OTHER INFORMATION
Item 9B. Other Information.
None.
PART III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10. Directors, Executive Officers and Corporate Governance.
Directors and Executive Officers
The following sets forth information about our directors and executive officers as of the date of this report:
Name
Age
Title
Dato’ Sri Warren Eu Hin Chai
President, CEO, CFO, Director
Dato’ Zakaria Bin Abdul Rahman
Vice President, Director
Choy Chee Hong
Director
Teoh Bi Shan
Director
Teng Ling Ching
Director
All of our directors hold offices until the next annual meeting of the shareholders of the Company, and until their successors have been qualified after being elected or appointed. Officers serve at the discretion of the board of directors.
The following sets forth biographical information regarding the above Officers and Directors.
Dato’ Sri Warren Eu Hin Chai, Chairman of the Board, Chief Executive Officer, Chief Financial Officer, President and Director
During the past five years and to date, Dato’ Sri Warren Eu is the director for SKH Media, Global Bizrewards, Hipland Realty and UMatrin Worldwide, as well as Vice President and Director of Umatrin Holding Limited. He has led SKH Media into a company specialized in marketing communications. He had used his insights, experience, expertise, creativity, environment knowledge and business sense to helped SKH Media’s clients to compete successfully in marketing strategy, advertising every form of marketing communication and in monitoring progress to increase their profits in a sustainable way. He has introduced loyalty programme marketing via Global Bizrewards to boost the participated merchant brand and at the same time benefited the consumers. He has also ventured himself into property and hotel industry via Hipland Realty. In view of his extensive knowledge in various industries, he is the best candidate to be appointed as the President, Chairman of the Board, Director, CEO, and CFO to lead the Company to success.
Dato’ Zakaria Bin Abdul Rahman, Vice President and Director
Dato’ Zakaria Bin Abdul Rahman, age 57, is currently serve as the Vice President of myPPP Malaysia and Vice President of Putrajaya Football Club. He has been awarded the royal awards of Pingat Jasa Negara (PJN), Johan Setia Mahkota (JSM) and Anugerah Setia Negara (ASN). His experience including working as the Chairman of Cempaka Helicopter Corporation Sdn Bhd, the Executive Chairman of KN Furniture Manufacture (M)Sdn Bhd, the Chairman of Oxford United Sdn Bhd, the Chairman of SNZ Heritage Sdn Bhd, the Chairman of Tiara Astana Sdn Bhd and the Chairman of Tiara Cattle Sdn Bhd.
Choy Chee Hong, Director
Choy Chee Hong, age 46, has extensive experience in marketing and promoting Health and Beauty Products. His personal sales achievements reached USD5,000,000 per annum and group sales achievements reached USD50,000,000 per annum. He had been working as the Diamond Speaker of Al-Ihsan Sdn Bhd from 2011 to June, 2019.
Teoh Bi Shan, Director
Ms. Teoh joined Umatrin since April 2015 and has served as our legal advisor. She had successfully resolved the company legal dispute and had reorganized the management of the company towards ISO standards. She is a law graduate from University of Northumbria, United Kingdom. After she obtained her Certificate in Legal Practice (CLP), she joined Jeff Leong Poon & Wong and has advised public listed companies in fund raising and other corporate exercises on Bursa Malaysia including initial public offerings, trust deed, warrant, rights issues, bond issues, share split and restructuring. Thereafter, she shifted from a corporate lawyer to a litigator and joined Vin & Isaac Lee. She has several years of complex litigation experience in directorship dispute, partnership dissolution, business contract dispute and intellectual property dispute.
Teng Ling Ching, Director
Mr. Teng was an accomplished systems administrator with more than 14 years of experience managing server infrastructures and data-center operations across multiple platforms such as Unix, Linux, Windows. He had effectively plan, install, configure and optimize the IT infrastructure to consistently achieve high ability and performance. He had proven his ability to create and deliver solutions for fast business growth, organizational development and systems/network optimization. Throughout his history of employment with MVM Home Entertainment and MNC Group Indonesia, he is well known as skilled troubleshooter and a great team leader in a range of IT environments.
Term of Office
Our directors hold office until the next annual general meeting of our stockholders and until their successors have been duly elected and qualified or until removed from office in accordance with our bylaws. Our officers are elected by and serve at the discretion of the board of directors.
Family Relationships
There are no family relationships between any of our directors or executive officers.
Certain Legal Proceedings
To our knowledge, no director, nominee for director, or executive officer of the Company has been a party in any legal proceeding material to an evaluation of his ability or integrity during the past ten years.
Potential Conflicts of Interest
We are not aware of any current or potential conflicts of interest with our director or executive officer.
Board Committees
We have not formed an Audit Committee, Compensation Committee or Nominating and Corporate Governance Committee as of the filing of this Annual Report. Our Board of Directors performs the principal functions of an Audit Committee. We currently do not have an audit committee financial expert on our Board of Directors.
Compliance with Section 16(A) Of the Exchange Act.
Section 16(a) of the Exchange Act requires the Company’s officers and directors, and persons who beneficially own more than 10% of a registered class of the Company’s equity securities, to file reports of ownership and changes in ownership with the Securities and Exchange Commission and are required to furnish copies to the Company. Based solely on our review of the reports filed with the SEC, no person failed to timely file reports required by Section 16(a) in the past two fiscal years.
Code of Ethics
We have not adopted a Code of Ethics applicable to our Principal Executive Officer and Principal Financial Officer.

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ITEM 11. EXECUTIVE COMPENSATION
ITEM 11. EXECUTIVE COMPENSATION
The following is a summary of the compensation we paid to our current executive officer, for the years ended December 31, 2019 and 2020.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
Name and Principal Position
Year
Salary ($)
Bonus ($)
Stock Awards ($)
Option Awards
($)
Non-equity Incentive
Plan Compen-
sation
($)
Non-qualified Deferred Compen-
sation
Earnings ($)
All Other Compen-
sation
($)
Total Compen-
sation ($)
Dato’ Sri Warren Eu Hin Chai,
$ -
-
-
-
-
-
-
-
CEO, CFO & Director
$ -
-
-
-
-
-
-
-
Dato’ Zakaria Bin Abdul Rahman
$ -
-
-
-
-
-
-
-
Former Vice President & Director (1)
$ -
-
-
-
-
-
-
-
________________
(1)
On January 1, 2019, the Board of Directors (the “Board”) of the Company appointed Dato’ Zakaria Bin Abdul Rahman to fill the vacancy left by Dato’ Dr. William Lee Wun Loong’s passing and serve as the Vice President of the Company.
Compensation Discussion and Analysis
We strive to provide our named executive officers (as defined in Item 402 of Regulation S-K) with a competitive base salary that is in line with their roles and responsibilities when compared to peer companies of comparable size in similar locations.
We plan to implement a more comprehensive compensation program, which takes into account other elements of compensation, including, without limitation, short and long term compensation, cash and non-cash, and other equity-based compensation such as stock options. We expect that this compensation program will be comparable to the programs of our peer companies and aimed to retain and attract talented individuals.
Compensation of Directors
The following is a summary of the compensation we paid to the Directors of UMHL, for the years ended December 31, 2020 and 2019:
Name and Principal Position
Fiscal
Year
Salary
($)
Bonus
($)
Stock
Awards
($)
Option
Awards
($)
Non-equity Incentive Plan Compensation
($)
Change in Pension Value and Nonqualified Deferred Compensation Earnings
($)
All Other Compensation
($)
Total
($)
Dato’ Sri Warren Eu Hin Chai
119,000
-
-
-
-
-
-
119,000
43,466
-
-
-
-
-
-
43,466
Dato’ Dr. William Lee Wun Loong
-
-
-
-
-
-
-
-
Former Director
-
-
-
-
-
-
-
-
Dato’ Osmanthus Ang Kui Hwa
-
-
-
-
-
-
-
-
Former Director
-
-
-
-
-
-
-
-
Teoh Bi Shan
34,271
-
-
-
-
-
-
34,271
28,977
-
-
-
-
-
-
28,977
Teng Ling Ching
31,415
-
-
-
-
-
-
31,415
31,875
-
-
-
-
-
-
31,875
Dato’ Zakaria Bin Abdul Rahman
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Choy Chee Hong
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
As of the date of this report, we have no formal or informal arrangements or agreements to compensate our directors for services they provide as directors.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The following table sets forth certain information as of the date hereof with respect to the beneficial ownership of our ordinary shares, the sole outstanding class of our voting securities, by (i) each stockholder known to be the beneficial owner of 5% or more of the outstanding ordinary shares of the Company, (ii) each executive officer and director, and (iii) all executive officers and directors as a group. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. ordinary shares subject to options, warrants or convertible securities exercisable or convertible within 60 days as of the date hereof are deemed outstanding for computing the percentage of the person or entity holding such options, warrants or convertible securities but are not deemed outstanding for computing the percentage of any other person.
Name of Beneficial Owner
Amount
and Nature
of
Beneficial
Ownership
Percentage
of Class (1)
Dato’ Sri Warren Eu Hin Chai (2)
112,788,813
61.82 %
Dato’ Dr. William Lee Wun Loong
27,414,100
15.03 %
All Executives and Directors as a group (1 person)
140,202,913
76.85 %
Other 5% shareholders:
None
________________
(1)
Based on 182,444,266 shares of common stock outstanding as of April 14, 2021.
(2)
Including 106,200,000 shares held directly and 6,588,813 shares held indirectly through Umatrin Group Ltd. Principal office of Umatrin Group Ltd. is located at 24 Lesperance Complex Providence Industrial Estate, Maha T2 0000. Dato’ Sri Warren Eu Hin Chai, our CEO, CFO and director, is the sole stockholder of Umatrin Group Ltd. Through his position as the sole stockholder in Umatrin Group Ltd, Dato’ Sri has the sole voting and dispositive power to in the shares held by Umatrin Group Ltd.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13. Certain Relationships and Related Transactions, and Director Independence.
Due from related parties consists of the following:
December 31,
December 31,
Purpose
Global Bizrewards Sdn. Bhd.
$ 199,679
$ 274,413
Advance
Koperasi Usahawan
57,010
105,382
Advance
Global Patronage Sdn. Bhd.
14,246
14,121
Advance
Yaya Media Sdn. Bhd.
1,870
Advance
SKH Media Sdn. Bhd.
246,462
-
Advance
Hipland Reality Sdn. Bhd.
4,437
4,389
Advance
Total Due from
523,704
398,580
Due to related parties consists of the following:
December 31,
December 31,
Purpose
Dato Sri Warren Eu Hin Chai
$
320,473
$
896,867
Capital
Advance
Michael A. Zahorik
30,307
30,307
Capital
Aura Secret Sdn. Bhd.
4,191
-
Advance
SKH Media Sdn. Bhd.
-
56,036
Capital
Advance
Total Due to
354,971
983,210
The related parties’ relationship to the Company as follows:
Name
Relationship
Michael A. Zahorik
Former director
Global Bizrewards Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
M1 Tech Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
Sportlight Academy Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
M1Elite Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
SKH Media Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
Dato Sri Warren Eu Hin Chai
Director & Shareholder of the Company
Koperasi Usahawan
Related by common director, Dato' Sri Eu Hin Chai
Global Patronage Sdn Bhd
Related by common director, Dato' Sri Eu Hin Chai
Yaya Media Sdn Bhd
Related by common director, Dato' Sri Eu Hin Chai
Hipland Realty Sdn. Bhd.
Related by common director, Dato' Sri Eu Hin Chai
The amounts due from or due to related parties’ above were unsecured, non-interest bearing, and due on demand.
As of December 31, 2020, accounts receivable from Aura Secret Sdn Bhd. is $22,301.
For the year ended December 31, 2020, the Company had $33,777, $117,203 and $154,220 sales from Aura Secret Sdn Bhd, Global Bizrewards Sdn. Bhd. and Global Patronage Sdn. Bhd., respectively.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14. Principal Accounting Fees and Services.
The following table sets forth the fees billed by our principal independent accountant for each of our last two fiscal years for the categories of services indicated.
Years Ended
December 31,
Category
Audit Fees
$ 48,500
$ 45,000
Audit Related Fees
Tax Fees
3,000
All Other Fees
Audit fees. Consists of fees billed for the audit of our annual financial statements, review of our Form 10-K, review of our quarterly financial statements, review of our Forms 10-Q and services that are normally provided by the accountant in connection with year-end and interim statutory and regulatory filings or engagements.
Audit-related fees. Consists of fees billed for the review of registration statements, audit related consulting and services that are normally provided by the accountant in connection with non-year end statutory and regulatory filings or engagements.
Tax fees. Consists of professional services rendered by our principal accountant for tax compliance, tax advice, and tax planning.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15. Exhibits, Financial Statement Schedules.
a) Documents filed as part of this Annual Report
1.
Consolidated Financial Statements
2.
Financial Statement Schedules
3.
Exhibits
Exhibits #
Title
3.1
Certificate of Incorporation of the Company (1)
3.2
Certificate of Amendment to the Articles of Incorporation of the Company, dated June 3, 2008 (2)
3.3
Certificate of Amendment to the Articles of Incorporation of the Company, dated March 16, 2015 (3)
3.4
Certificate of Amendment to the Articles of Incorporation of the Company, dated March 28, 2015 (3)
3.5
Bylaws (2)
10.1
Share Exchange Agreement, dated January 6, 2016, by and among Dato’ Sri Warren Eu Hin Chai, Dato’ Liew Kok Hong, the Company, and UMATRIN WORLDWIDE SDN BHD. (3)
10.2
Term Loan Agreement, dated December 23, 2014, by and between RHB Bank Berhad and UMATRIN WORLDWIDE SDN BHD. (3)
10.3
Sale and Purchase Agreement, dated November 12, 2014, by and between Mega Panorama Sdn Bhd. and UMATRIN WORLDWIDE SDN BHD. (3)
21.1
List of Subsidiaries (3)
31.1
Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1
Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002+
101.INS
XBRL Instance Document
101.SCH
XBRL Taxonomy Extension Schema Document
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB
XBRL Taxonomy Extension Label Linkbase Document
101.PRE
XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document
_____________
+
In accordance with the SEC Release 33-8238, deemed being furnished and not filed.
(1)
Incorporated by reference to the Company’s Registration Statement on Form 10-SB, as filed with the Securities and Exchange Commission on March 8, 2005.
(2)
Incorporated by reference to the Company’s Registration Statement on Form S-1, as filed with the Securities and Exchange Commission on August 29, 2008.
(3)
Incorporated by reference to the Company’s Current Report on Form 8-K, as filed with the Securities and Exchange Commission on January 6, 2016.