REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
Vanjia Corporation
Opinion on the Financial Statements
We have audited the accompanying
balance sheets of Vanjia Corporation ( “the Company”) as of December 31, 2018 and 2017, the related statements of operations,
cash flows, and stockholders’ equity for the years then ended, and the related notes (collectively referred to as the "financial
statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of
the Company at December 31, 2018 and 2017, and the results of its operations and its cash flows for the years ended December 31,
2018 and 2017, in conformity with the U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are
the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s 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 audits 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.
The accompanying financial statements
have been prepared assuming that Vanjia Corporation will continue as a going concern. As described in Note 1 to the financial statements,
the Company has incurred losses from operations and is in need of additional capital to grow its operations so that it can become
profitable. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s
plans with regard to these matters are described in Note 1. The accompanying financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
/s/ KCCW Accountancy Corp
.
We have served as the Company’s auditor since
2011.
Diamond Bar, California
March 26, 2019
F-1
VANJIA CORPORATION
BALANCE SHEETS
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
1. NATURE OF OPERATIONS AND SUMMARY OF ACCOUNTING
POLICIES
Basis of Presentation and Organization
Vanjia Corporation (formerly Vantone
Realty Corporation), a company in the developmental stage (the “Company”), was incorporated on August 19, 2011 in the
State of Texas. The Company has conducted limited business operations since its inception. The Company‘s business plan is
to build affordable homes in Houston, Texas. In 2018, the Company began a business to enroll students for real estate licensing
courses.
The Company's year-end is December 31.
Going Concern
These financial statements were
prepared on the basis of accounting principles applicable to going concern, which assumes the realization of assets and discharge
of liabilities in the normal course of business. As shown in the accompanying financial statements, the Company had an accumulated
deficit of $86,209 as of December 31, 2018, and had net loss of $17,496 for the year ended December 31, 2018.
The Company faces all the risks
common to companies at development stage, including capitalization and uncertainty of funding sources, high initial expenditure
levels, uncertain revenue streams, and difficulties in managing growth. The Company's losses raise substantial doubt about its
ability to continue as a going concern. The Company's financial statements do not reflect any adjustments that might result from
the outcome of this uncertainty.
The Company is currently addressing
its liquidity issue by continually seeking investment capital through private placements of common stock and debt. The Company
believes its current and future plans enable it to continue as a going concern. The Company's ability to achieve these objectives
cannot be determined at this time. These financial statements do not give effect to any adjustments which would be necessary should
the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities
in other than the normal course of business and at amounts which may differ from those in the accompanying financial statements.
Use of Estimates
The preparation of financial
statements in conformity with generally accepted accounting principles in the United States of America, requires management to
make estimates and assumptions that affect 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 revenue and expenses during the reporting period.
Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and cash equivalents include
cash and all highly liquid instruments with original maturities of three months or less.
F-6
Impairment of long-lived
assets
The Company reviews its long-lived
assets whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Impairment is
evaluated by comparing the carrying value of the long-lived assets with the estimated future net undiscounted cash flows expected
to result from the use of the assets, including cash flows from disposition. Should the sum of the expected future net cash flows
be less than the carrying value, the Company would recognize an impairment loss at that date. An impairment loss would be measured
by comparing the amount by which the carrying value exceeds the fair value (estimated discounted future cash flows) of the long-lived
assets.
Net Income (Loss) per Share
Basic income (loss) per share
is computed by dividing net income by weighted average number of shares of common stock outstanding during each period. Diluted
income(loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common
stock equivalents and potentially dilutive securities outstanding during each period. At December 31, 2018 and 2017, the Company
does not have any outstanding common stock equivalents; therefore, a separate computation of diluted loss per share is not presented.
Income Taxes
The Company accounts for income
taxes in accordance with ASC 740, Income Taxes, which requires that the Company recognize deferred tax liabilities and assets based
on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities, using enacted
tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the
change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when, in the opinion of management,
it is more likely than not that some or all of any deferred tax assets will not be realized.
Recent Accounting Pronouncements
The Company does not expect
the adoption of recently issued accounting pronouncements to have a significant impact on its result of operations, financial position
or cash flow.
2. INCOME TAXES
As of December 31, 2018, the Company
had net operating loss carry forwards of approximately $86,209 that may be available to reduce future year's taxable income. Future
tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization
is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating
to these tax loss carry-forwards.
The provision for federal income tax
consists of the following for the years ended December 31:
|
|
2018
|
|
2017
|
|
Current
|
$
|
-
|
|
$
|
-
|
|
Deferred
|
|
-
|
|
|
-
|
|
Net provision for income taxes
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
F-7
The difference between the effective
rate reflected in the provision for income taxes on loss before taxes and the amounts determined by applicable statutory U.S. tax
rate for the years ended December 31, 2018 and 2017 are analyzed below:
|
|
2018
|
|
2017
|
|
U.S. federal statutory income tax rate
|
21%
|
|
34%
|
|
Provisional re-measurement of deferred taxes
|
0%
|
|
(13)%
|
|
Changes in valuation allowance
|
(21)%
|
|
(21)%
|
|
Effective income tax rate
|
0%
|
|
0%
|
Significant components of the Company's
deferred taxes as of December 31, 2018 and 2017 were as follows:
|
Deferred tax asset attributable to:
|
December 31, 2018
|
|
December 31, 2017
|
|
Net operating loss carryover
|
$
|
18,104
|
|
$
|
14,430
|
|
Less: valuation allowance
|
|
(18,104)
|
|
|
(14,430)
|
|
Net deferred tax asset
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
3. LINE OF CREDIT
The Company has available a
line of credit with an officer and shareholder that provided maximum borrowing up to $1,000,000 for working capital purposes. The
line of credit has no expiration date and is due on demand. Borrowings under the line of credit bear interest at 0% per annum.
As of December 31, 2018 and 2017, the Company had outstanding balance of $0 and $8,800 respectively, on the line of credit.
4. EQUITY
On June 15, 2018, the Company
issued 84,500,000 shares to the Company’s CEO and director, Tian Su Hua, and 84,500,000 shares to the Company’s CFO,
Tian Jia, in consideration for discharge of debts ($16,900) owed to Tian Su Hua and Tian Jia.
On June 28, 2018, the Company
issued 125,000,000 shares of common stock to the Company’s CFO, Tian Jia, in consideration for exchange of property located
in Anderson County, Texas.
On September 28, 2018, the Company
issued 200,000,000 shares of common stock to the Company’s CFO, Tian Jia, in consideration for $20,000 in cash.
On November 29,2018, the Company
issued 480,000,000 shares of common stock to the Company’s CFO, Tian Jia, for $48,000 in cash. As of December 31, 2018, the
amount of 48,000 recorded as a stock subscription receivable was presented in the balance sheet as a deduction from the stockholders’
equity.
On December 31, 2018, the Company
issued 150,000,000 shares of common stock to the Company’s CFO, Tian Jia, in consideration of $15,000 in cash.
F-8
5. SUBSEQUENT EVENTS
The Company has evaluated subsequent
events through the date which the financial statements were available to be issued. All subsequent events requiring recognition
as of December 31, 2018 have been incorporated into these financial statements and there are no subsequent events that require
disclosure in accordance with FASB ASC Topic 855, “Subsequent Events.”
F-9
ITEM 7A. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK.
We are a small reporting company as defined by Rule 12b-2
of the Securities Exchange Act of 1934 and are not required to provide the information