UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________

 

FORM 10-Q

 

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

 

For the quarterly period ended September 30, 2018

 

☐  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934

For the transition period from ______ to _______

 

Commission File Number 000-53737

 

SINO UNITED WORLDWIDE CONSOLIDATED LTD.

 

(Exact name of registrant as specified in its charter)

 

Nevada  (State of incorporation)

 

136-20 38th Ave. Unit 3G

Flushing, NY 11354(Address of Principal Executive Offices)

_______________

 

718-395-8706 (Issuer Telephone number)

_______________  

 

Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

 

Indicate by check mark whether the registrant is a larger accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one)

 

Large accelerated filer ☐ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☑ 
  Emerging growth company ☐

 

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

 

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

 

At September 30, 2018, there were 33,503,604 shares of the registrant's common stock issued and outstanding.

 

     

 

 

SINO UNITED WORLDWIDE CONSOLIDATED LTD.

FORM 10-Q

September 30, 2018

INDEX

 

PART I-- FINANCIAL INFORMATION

 

Item 1. Financial Statements 3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 11
Item 3. Quantitative and Qualitative Disclosures About Market Risk 14
Item 4. Control and Procedures 14

 

PART II-- OTHER INFORMATION

 

Item 1. Legal Proceedings 16
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 16
Item 3. Defaults Upon Senior Securities 16
Item 4. Mine Safety Disclosures. 16
Item 5. Other Information. 16
Item 6. Exhibits 16
SIGNATURES 17

 

     

 

Sino United Worldwide Consolidated Ltd.

Index to the consolidated financial statements

 

Table of Contents Page(s)
Balance Sheets at September 30, 2018 (Unaudited) and December 31, 2017 (Audited) F-2
Unaudited Statements of Comprehensive Income(loss) for the Three and Nine Months Ended September 30, 2018 and 2017 F-3
Unaudited Statements of Cash Flows for the Nine Months Ended September 30, 2018 and 2017 F-4
Notes to the Financial Statements (Unaudited) F-5 - F-8

 

  3  

 

Sino United Worldwide Consolidated Ltd.
Consolidated Balance Sheets
 
         
      September 30, 2018       December 31, 2017  
      (Unaudited)       (Audited)  
ASSETS                
Current Assets                
Cash   $ 19,872     $ 50,044  
Accounts receivable     51,000       15,000  
Total Current Assets     70,872       65,044  
                 
Total Assets   $ 70,872     $ 65,044  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIENCY                
Current Liabilities                
Credit card payable   $ 11,206     $ 4,630  
Convertible promissory note - related parties     95,000       95,000  
Accrued expenses - related parties     22,750       1,188  
Accrued expenses and other current liabilities     4,234       42,734  
Total Current Liabilities     133,190       143,552  
                 
COMMITMENTS AND CONTINGENCIES                
                 
Stockholders' Deficiency                
Common stock, $0.001 par value, 394,500,000 shares authorized; 33,503,604 shares issued and outstanding     33,504       33,504  
Additional paid-in capital     1,647,731       1,647,731  
Accumulated deficit     (1,743,553 )     (1,759,743 )
Total Stockholders' Deficiency     (62,318 )     (78,508 )
Total Liabilities and Stockholders’ Deficiency   $ 70,872     $ 65,044  
                 
                 

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

 

  F- 2  

 

Sino United Worldwide Consolidated Ltd.
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
                 
   

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

    2018   2017   2018   2017
Revenue                
Consultancy revenue - related party   $ 60,000     $ —       $ 120,000     $ —    
Costs of revenue     9,000       —         18,000       —    
Gross profit     51,000       —         102,000       —    
                                 
Operating expenses                                
General and administrative     14,827       48,005       80,784       81,000  
Total operating expenses     14,827       48,005       80,784       81,000  
                                 
Income(Loss) from operations     36,173       (48,005 )     21,216       (81,000 )
                                 
Other expense:                                
Interest expense - related party     (1,188 )     —         (3,563 )     —    
Interest expense - other     (727 )     —         (1,463 )     —    
Total other expense     (1,915 )     —         (5,026 )     —    
                                 
Income(Loss) from continuing operations before income tax provision     34,258       (48,005 )     16,190       (81,000 )
Income tax provision     —         —         —         —    
Income(Loss) from continuing operations     34,258       (48,005 )     16,190       (81,000 )
                                 
Discontinued operations                                
Loss from discontinued operations, net of tax     —         (826,821 )     —         (547,872 )
                                 
Net income(loss)     34,258       (874,826 )     16,190       (628,872 )
                                 
Other comprehensive income                                
Foreign currency translation adjustment     —         (8,835 )     —         37,976  
Comprehensive income(loss)   $ 34,258     $ (883,661 )   $ 16,190     $ (590,896 )
                                 
Earnings (loss) per share                                
Basic   - continuing operation   $ 0.00     $ (0.00 )   $ 0.00     $ (0.00 )
- discontinuing operation   $ —       $ (0.01 )   $ —       $ (0.01 )
Total   $ 0.00     $ (0.01 )   $ 0.00     $ (0.01 )
                                 
Diluted    - continuing operation   $ 0.00     $ (0.00 )   $ 0.00     $ (0.00 )
    - discontinuing operation   $ —       $ (0.01 )   $ —       $ (0.01 )
Total   $ 0.00     $ (0.01 )   $ 0.00     $ (0.01 )
                                 
Weighted average shares outstanding                                
Basic     33,503,604       58,985,937       33,503,604       58,985,937  
Diluted     33,503,604       58,985,937       33,503,604       58,985,937  
                                 
                                 

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

 

  F- 3  

 

Sino United Worldwide Consolidated Ltd.
Consolidated Statements of Cash Flows
(Unaudited)
         
   

Nine Months Ended

September 30,

    2018   2017
CASH FLOW FROM OPERATING ACTIVITIES                
Net income (loss)   $ 16,190     $ (628,872 )
Net loss from discontinued operation     —         (547,872 )
Net income (loss) from continuing operation     16,190       (81,000 )
                 
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:                
Change in operating assets and liabilities:                
Accounts receivable     (36,000 )     —    
Credit card payable     6,576       22,268  
Accrued expenses and other current liabilities     (16,938 )     (4,000 )
Net cash used in continuing operation     (30,172 )     (62,732 )
Net cash provided by discontinued operation     —         111,825  
Net cash provided by (used in) operating activities     (30,172 )     49,093  
                 
CASH FLOW FROM INVESTING ACTIVITIES                
Net cash used in continuing operation     —         —    
Net cash used in discontinued operation     —         (2,810 )
Net cash used in investing activities     —         (2,810 )
                 
CASH FLOW FROM FINANCING ACTIVITIES                
Proceeds from non-related party loan     —         2,734  
Loan payable - related party     —         95,000  
Loan payable - non-related party     —         —    
Net cash provided by continuing operation     —         97,734  
Net cash used in discontinued operation     —         (146,126 )
Net cash used in financing activities     —         (48,392 )
                 
Effect of exchange rate changes on cash     —         16,224  
INCREASE (DECREASE) IN CASH     (30,172 )     14,115  
Cash - beginning of period     50,044       3,016  
Cash - end of period   $ 19,872     $ 17,131  
                 
Supplement disclosure information                
Cash paid for interest   $ —       $ —    
Cash paid for interest - discontinued operation   $ —       $ 24,854  
Cash paid for income taxes   $ —       $ —    
Cash paid for income taxes - discontinued operation   $ —       $ 2,746  
                 
Non-cash financing activities:                
Due to related parties balance were settled by sale of subsidiary   $ —       $ 379,254  
                 
                 
The accompanying notes are an integral part of these consolidated financial statements.

 

  F- 4  

 

Sino United Worldwide Consolidated Ltd.

Notes to the Consolidated Financial Statements

As of and for the nine months ended September 30, 2018

(Unaudited) 

 

Note 1 – Organization

 

Organization

 

Sino United Worldwide Consolidated Ltd. (the “Company”), a Nevada Corporation, provides IT management consulting services. The Company is also developing new businesses in various fields through careful review and critical selection of new growth businesses. The Company is planning to strengthen our core competencies in high technology and blockchain related businesses, such as blockchain apps technology, fintech services, professional consultancy for ICO’s, and other high potential critical blockchain projects.

 

Note 2 – Going Concern

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company had a working capital deficit of $63,028, an accumulated deficit of $1,743,553 and a stockholders’ deficiency of $62,318 as of September 30, 2018. The Company did not generate sufficient cash or income from its continuing operation. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

The Company is developing new businesses in various fields. There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support the Company’s working capital requirements. To the extent that funds generated from any private placements, public offering and/or bank financing are insufficient to support the Company’s working capital requirements, the Company will have to raise additional working capital from additional financing. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available, the Company may not be able continue its operations.

 

Note 3 — Summary of Significant Accounting Policies

 

Basis of presentation

 

The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2018 and the results of operations and cash flows for the three and nine months ended September 30, 2018 and 2017. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and nine months ended September 30, 2018 is not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2018. The balance sheet on December 31, 2017 has been derived from the audited financial statements at that date.

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission's rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2017 as included in our Annual Report on Form 10-K.

 

Certain amounts in last year’s financial statements have been reclassified to conform to current year presentation.

 

Use of Estimates

 

The preparation of consolidated financial statements in conformity with accounting principles generally accepted 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 consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results. Significant accounting estimates reflected in the Company’s consolidated financial statements included the valuation of accounts receivable, the estimated useful lives of long-term assets, and the valuation of short-term investment and the valuation of deferred tax assets.

 

Fair Value of Financial Instruments

 

ASC Topic 820, Fair Value Measurement 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. This topic also establishes a fair value hierarchy that requires classification based on observable and unobservable inputs when measuring fair value. The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels:

 

Level one - Quoted market prices in active markets for identical assets or liabilities;
Level two - Inputs other than level one inputs that are either directly or indirectly observable; and
Level three - Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. 

 

Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter.

 

  F- 5  

 

The fair values of the Company’s cash, accounts receivable, accrued expenses and other current liabilities approximate their carrying values due to the relatively short maturities of these instruments. The carrying value of the Company’s short- and long-term debt approximates fair value based on management’s best estimate of the interest rates that would be available for similar debt obligations having similar terms at the balance sheet date.

 

There are no financial instruments measured at fair value on a recurring basis.

 

Cash and cash equivalents

 

Cash and cash equivalents include cash on hand and deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal and use and with an original maturity of three months or less. The Company maintains its cash in bank deposit accounts. Cash accounts are guaranteed by the Federal Deposit Insurance Corporation up to $250,000. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on such cash.

 

Accounts Receivable and Allowance for Doubtful Accounts

 

Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. The Company follows paragraph 310-10-50-9 of the FASB Accounting Standards Codification to estimate the allowance for doubtful accounts. The Company performs on-going credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current credit worthiness, as determined by the review of their current credit information; and determines the allowance for doubtful accounts based on historical write-off experience, customer specific facts and economic conditions.

 

Outstanding account balances are reviewed individually for collectability. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Bad debt expense is included in general and administrative expenses, if any. Pursuant to paragraph 310-10-50-2 of the FASB Accounting Standards Codification account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company has adopted paragraph 310-10-50-6 of the FASB Accounting Standards Codification and determine when receivables are past due or delinquent based on how recently payments have been received.

 

For the nine months ended September 30, 2018 and 2017, the Company recorded bad debt expense of $nil and $313,430, respectively, which were included in the loss from discontinued operations.

 

Convertible Instruments

 

The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815, Derivatives and Hedging Activities.

 

Applicable GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.

 

The Company accounts for convertible instruments (when it has been determined that the embedded conversion options should not be bifurcated from their host instruments) as follows: The Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption.

 

Translation Adjustment

 

The Company’s financial statements are presented in the U.S. dollar ($), which is the Company’s reporting and functional currency. The functional currency of the Company’s subsidiaries is TWD. Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of comprehensive income (loss). Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange prevailing at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the statements of comprehensive income (loss).

 

In accordance with ASC 830, Foreign Currency Matters, the Company translates the assets and liabilities into U.S. dollars using the rate of exchange prevailing at the balance sheet date and the statements of comprehensive income (loss) and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from TWD into U.S. dollar are recorded in stockholders’ equity(deficiency) as part of accumulated other comprehensive income. The exchange rates used for the financial statements in accordance with ASC 830, Foreign Currency Matters, are as follows:

 

Average Rate for the period   September 30, 2018   September 30, 2017
Taiwan dollar(TWD)     —         1  
United States Dollar($)     —         0.033  
                 
Exchange Rate at     September 30, 2018       September 30, 2017  
Taiwan dollar(TWD)     —         1  
United States Dollar($)     —         0.033  

 

The subsidiary in Taiwan was sold as of September 30, 2017.

 

  F- 6  

 

Revenue Recognition

 

The Company adopted ASU 2014-09, 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.

 

Recently Issued Accounting Pronouncements

 

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard bodies that may have an impact on the Company’s accounting and reporting. The Company believes that any recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on its accounting or reporting or that such impact will not be material to its financial position, results of operations, and cash flows when implemented.

 

NOTE 4 – Discontinued Operation

 

On September 30, 2017, pursuant to agreements with one of our directors, Li-An Chu, the Company transferred the 100% ownership in Jinchih, to Li-An Chu in exchange for cancellation of loan payable of $379,254 to Li-An Chu and cancellation of total 25,503,333 shares of the Company’s common stock owned by a group of stockholders, including Li-An Chu. As a result of these transactions, Jinchih is no longer a wholly owned subsidiary of the Company as of September 30, 2017. Since Jinchih was sold back to Li-An Chu who is the Company’s director, CEO and CFO at the time of the transaction, no gain or loss was recorded. The net gain of $99,822 from the sale of Jinchih was included in stockholders’ equity.

 

The results of operations of discontinued operations for the three months ended September 30, 2018 and 2017 are as following:

 

    2018   2017
Revenue   $ —       $ 472,848  
Cost of goods sold     —         (413,009 )
General and administrative expenses     —         (392,962 )
Depreciation and amortization     —         (544,934 )
Interest expense, net of interest income     —         (8,525 )
Income tax provision     —         59,761 )
Income from discontinued operations   $ —       $ (826,821 )

 

The results of operations of discontinued operations for the nine months ended September 30, 2018 and 2017 are as following:

 

    2018   2017
Revenue   $ —       $ 2,439,841  
Cost of goods sold     —         (1,827,637 )
General and administrative expenses     —         (591,703 )
Depreciation and amortization     —         (544,934 )
Interest expense, net of interest income     —         (23,439 )
Income tax provision     —         —    
Income from discontinued operations   $ —       $ (547,872 )

 

NOTE 5 – Convertible Promissory Note

 

On October 1, 2017, Mr. Tee-Keat Ong, the Chairmen of the Board of Directors, and the Company entered into a loan agreement pursuant to which Mr. Tee-Keat Ong agreed to lend the Company $30,000 initially with future loan amount up to $1,000,000. On the same date, the Company issued a promissory note to Mr. Tee-Keat Ong for the principal amount of $30,000. The promissory note bears interest at five percent (5%) per annum and is due after 120 days following the issue date of the Note. Pursuant to the terms of the note, the note is convertible into the Company’s common stock at a conversion price of $0.001 per share.

 

On October 1, 2017, the Company entered into a loan agreement with Ms. Shoou Chyn Kan, who is a significant debt holder of the Company, and is also an indirect shareholder the Company. Pursuant to the loan agreement, Ms. Shoou Chyn Kan agreed to lend the Company $65,000 initially with future loan amount up to $1,000,000. On the same date, the Company issued a promissory note to Ms. Shoou Chyn Kan for the principal amount of $65,000. The promissory note bears interest at five percent (5%) per annum and is due after 120 days following the issue date of the Note . Pursuant to the terms of the note, the note is convertible into the Company’s common stock at a conversion price of $0.001 per share.

 

Interest expenses on the convertible promissory notes above were interest of $1,188 and $3,563 for the three and nine months ended September 30, 2018.

 

NOTE 6 – Related Party Transactions

 

As of September 30, 2018 and December 31, 2017, balance of convertible promissory notes with related parties was $95,000 (See Note 5). The balances of the accrued interest are included in “Accrued expenses-related parties”.

 

The Company provides consultancy service to its sole customer whose legal representative of such customer is a family member of a significant shareholder of the Company. The Company generated revenue of $60,000 and $120,000 for the three and nine months ended September 30, 2018, respectively.

 

The Company accrued salary payable to Yanru Zhou, CEO of the Company, in cost of revenue. The salaries accrued were $9,000 and $18,000 for the three and nine months ended September 30, 2018. The balance of the salary accrued amounted to $18,000 and $0 as of September 30, 2018 and December 31, 2017, respectively, These balances are included in “Accrued expenses-related parties”.

 

The Company paid $0 and $30,000 to North America Chinese Financial Association (“NACF”), a significant shareholder of the Company, for marketing and consultancy service for the three and nine months ended September 30, 2018. These expenses are included into the General & Administrative Expenses.

 

  F- 7  

 

NOTE 7 – Income Taxes

 

The Company was incorporated in the United States and are subject to income tax according to U.S. tax law.

 

A reconciliation of the provision for income taxes to the Company’s effective income tax rate for continuing operation is as follows:

 

    Nine Months Ended September 30,
    2018   2017
Pre-tax income(loss)   $ 16,190     $ (81,000 )
U.S. federal corporate income tax rate     21 %     35 %
Expected U.S. income tax benefit     3,400       (28,350 )
Change of valuation allowance     (3,400 )     28,350  
Effective tax expense   $ —       $ —    

 

As of September 30, 2018 and December 31, 2017, the Company has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future periods, and does not believe that there will be any significant increases or decreases of unrecognized tax benefits within the next twelve months. No interest or penalties relating to income tax matters have been imposed on the Company during the three and nine months ended September 30, 2018 and 2017, and no provision for interest and penalties is deemed necessary as of September 30, 2018 and December 31, 2017.

 

The Company 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.

 

The U.S. Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduces the U.S. statutory tax rate from 35% to 21% and creates new taxes on certain foreign-sourced earnings and certain related-party payments, which are referred to as the global intangible low-taxed income tax and the base erosion tax, respectively. The Tax Act requires the Company to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. Since the Company has no foreign subsidiaries after it disposed its Taiwan subsidiary on September 30, 2017, the Company believes that Tax Act will not have significant impact on the Company’s financial statements.

 

NOTE 8 – Subsequent Events

 

The Company has evaluated the existence of significant events subsequent to the balance sheet date through the date the financial statements were issued and has determined that there were no subsequent events or transactions which would require recognition or disclosure in the financial statements.

 

  F- 8  

 

Item 2. Management's Discussion and Analysis Of Financial Condition And Plan Of Operation.

 

This Quarterly Report contains forward-looking statements within the meaning of the federal securities laws. These include statements about our expectations, beliefs, intentions or strategies for the future, which we indicate by words or phrases such as "anticipate," "expect," "intend," "plan," "will," "we believe," "management believes" and similar language. The forward-looking statements are based on the current expectations of the Company and are subject to certain risks, uncertainties and assumptions, including those set forth in the discussion under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this report. Actual results may differ materially from results anticipated in these forward-looking statements. We base the forward-looking statements on information currently available to us, and we assume no obligation to update them.

 

Investors are also advised to refer to the information in our previous filings with the Securities and Exchange Commission (SEC), especially on Forms 10-K, 10-Q and 8-K, in which we discuss in more detail various important factors that could cause actual results to differ from expected or historic results. It is not possible to foresee or identify all such factors. As such, investors should not consider any list of such factors to be an exhaustive statement of all risks and uncertainties or potentially inaccurate assumptions.

 

Overview

 

From October 2013 until September, 2017, through our Taiwan subsidiary Jinchih International Limited (“Jinchih”), we were engaged in design, marketing and distributing of hardware and software technologies, including new cell phone apps, as well as solutions and technology in fleet management, the driving record management system (DMS) that provide total solution and management mechanism for vehicles and driver behavior control and analysis, which increase driving safety and efficiency.

 

On September 30, 2017, pursuant to agreements with one of the Company’s directors, Li-An Chu, the Company transferred the 100% ownership in its wholly owned Taiwan Subsidiary, Jinchih International Limited (“Jinchih”), to Li-An Chu in exchange for cancellation of debt $379,254, and cancellation of total 25,503,333 shares of the Company’s common stock owned by a group of stockholders, including Li-An Chu. As a result of these transactions, Jinchih is no longer a wholly owned subsidiary of the Company as of September 30, 2017.

 

Currently, the Company provides IT management consulting services. The Company is also developing new businesses in various fields through careful review and critical selection of new growth businesses. The Company is planning to strengthen its core competencies in high technology and blockchain related businesses, such as blockchain dapps technology, fintech services, professional consultancy for ICO’s, and other high potential critical blockchain projects.

 

Results of Operations

 

Three and Nine Months Ended September 30, 2018 and 2017

 

Revenue

 

The Company generated $60,000 and $120,000 of revenue from the continuing operation during the three and nine months ended September 30, 2018. As discussed previously, the Company sold its wholly-owned subsidiary Jinchih on September 30, 2017, we included the revenue from Jinchih for the three and nine months ended September 30, 2017 in the income from discontinued operation on Consolidated Statements of Comprehensive Income(loss).

 

Our revenue of $60,000 and $120,000 was generated from the consulting services for I.T. management and ICO’s from a related party. Our CEO provided these consultancy service on behalf of the Company. Accordingly, we recorded the salary accrued for the CEO as cost of revenue. The salary accrued was $9,000 and $18,000 for the three and nine months ended September 30, 2018.

 

  11  

 

General and administrative expenses

 

General and administrative expenses primarily consist of investor relation expenses, professional fees and other miscellaneous operational expenses. General and administrative expenses for the three months ended September 30, 2018 and 2017 were $14,827 and $48,005, respectively. General and administrative expenses for the nine months ended September 30, 2018 and 2017 were $80,784 and $81,000, respectively. The changes in general and administrative expense is primarily related to the professional fee paid for filing the Company’s prior period 10K and 10Qs.

 

Interest expense

 

Interest expense from continuing operation was $1,915 for the three months ended September 30, 2018 which included the interest on the convertible promissory notes issued for $1,187. There was no interest expense from continuing operation for the three months ended September 30, 2017.

 

Interest expense from continuing operation was $5,026 for the nine months ended September 30, 2018 which included the interest on the convertible promissory notes issued for $3,563. There was no interest expense from continuing operation for the nine months ended September 30, 2017.

 

Income (Loss) from continuing operations

 

The Company generated net income from continuing operations of $34,258 and net loss from continuing operations of $48,005 for the three months ended September 30, 2018 and 2017, respectively.

 

The Company generated net income from continuing operations of $16,190 and net loss from continuing operations of $81,000 for the nine months ended September 30, 2018 and 2017, respectively.

 

Loss from discontinued operations

 

The Company generated net loss from discontinued operations of $826,821 and $547,872 for the three and nine months ended September 30, 2017, respectively. There was no income or loss generated for the three and nine months ended September 30, 2018.

 

Net income(loss)

 

As a result of the foregoing, the Company generated net income of $34,258 and $16,190 for the three and nine months ended September 30, 2018, respectively. The Company generated net loss of $874,826 and $628,872 for the three and nine months ended September 30, 2017, respectively.

Liquidity and Capital Resources

We have funded our operations to date primarily through the operations and related party loan, bank loan and capital contributions. The Company had a working capital deficit of $62,318, an accumulated deficit of $1,743,553 and a stockholders’ deficiency of $62,318 as of September 30, 2018. The Company did not generate sufficient cash or income from its continuing operation. There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support the Company’s working capital requirements. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

The Company plans to rely on the advances and loans from related parties, the proceeds from funds generated from private placements, public offering and/or bank financing to support the Company’s working capital requirements. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available, the Company may not be able continue its operations.

 

As of September 30, 2018, our current assets were $70,872 primarily consisting of cash of $19,872 and account receivable of $51,000. Our current liabilities were primarily composed of credit card payable of $11,206, convertible promissory notes of $95,000 and accrued expenses and other current liabilities of $26,984.

 

  12  

 

Cash Flow from Operating Activities

 

Net cash used in operating activities was $30,172 for the nine months ended September 30, 2018, which consisted of our net income from continuing operation of $16,190, a change of accounts receivable of $36,000, a change of credit card payable of $6,576 and a change of accrued expenses of $16,938.

 

Net cash provided by operating activities was $49,093 during the nine months ended September 30, 2017, which consisted of our net loss from continuing operation of $81,000, a change of credit card payable of $22,268, a change of accrued expenses of $4,000 and net cash provided by discontinued operation of $111,825.

 

Cash Flow from Investing Activities

 

There were no investing activities for the nine months ended September 30, 2018.

 

Net cash used in investing activities totaled $2,810 for the nine months ended September 30, 2017, all of which contributed by discontinued operation.

 

Cash Flow from Financing Activities

 

There were no financing activities for the nine months ended September 30, 2018.

 

Net cash used in financing activities was $48,392 during the nine months ended September 30, 2017, which primarily consisted of proceeds from non-related party loan of $2,734, and proceeds from loan payable from related party of $95,000, offset by net cash used in discontinued operation of $146,126.

 

Off-Balance Sheet Arrangements

 

There are no 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, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources.

 

Inflation

 

We do not believe our business and operations have been materially affected by inflation.

 

Critical Accounting Policies and Estimates

 

Refer to note 3 in the accompanying consolidated financial statements.

 

Impact of Accounting Pronouncements

 

There were no recent accounting pronouncements that have had a material effect on the Company’s financial position or results of operations.

 

  13  

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Not required for smaller reporting companies.

 

Item 4. Controls and Procedures.

 

Disclosure Controls and Procedures

 

Regulations under the Securities Exchange Act of 1934 (the “Exchange Act”) require public companies to maintain “disclosure controls and procedures,” which are defined as controls and other procedures that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

We conducted an evaluation, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of September 30, 2018. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of September 30, 2018, our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses described below.

 

In light of the material weaknesses described below, we performed additional analysis to ensure our financial statements were prepared in accordance with generally accepted accounting principles. Accordingly, we believe 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.

 

A material weakness is a control deficiency (within the meaning of the Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 2) or combination of control deficiencies that result in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. Management has identified the following two material weaknesses which have caused management to conclude that, as of September 30, 2018, our disclosure controls and procedures were not effective at the reasonable assurance level:

 

  1. We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act which is applicable to us for the quarter ending September 30, 2018. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

 

  2. We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

 

To address these material weaknesses, management performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented.

 

  14  

 

Management's Report on Internal Control over Financial Reporting.

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting for the company in accordance with as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the (i) effectiveness and efficiency of operations, (ii) reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, and (iii) compliance with applicable laws and regulations. Our internal controls framework is based on the criteria set forth in the Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

 

Due to 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 and procedures may deteriorate.

 

A material weakness in internal controls is a deficiency in internal control, or combination of control deficiencies, that adversely affects the Company’s ability to initiate, authorize, record, process, or report external financial data reliably in accordance with accounting principles generally accepted in the United States of America such that there is more than a remote likelihood that a material misstatement of the Company’s annual or interim financial statements that is more than inconsequential will not be prevented or detected. In the course of making our assessment of the effectiveness of internal controls over financial reporting, we identified some material weaknesses in our internal control over financial reporting.

 

We lack sufficient personnel with the appropriate level of knowledge, experience and training in the application of accounting operations of our company. This weakness causes us to not fully identify and resolve accounting and disclosure issues that could lead to a failure to perform timely internal control and reviews.

 

Management is currently reviewing its staffing and systems in order to remedy the weaknesses identified in this assessment. However, because of the above condition, management’s assessment is that the Company’s internal controls over financial reporting were not effective as of September 30, 2018. Additionally, the Registrant’s management has concluded that the Registrant has a material weakness associated with its U.S. GAAP expertise.

 

This Annual Report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.

 

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 intend to our personnel resources and technical accounting expertise within the accounting function. First, we intend to create a position to segregate duties consistent with control objectives of having separate individuals perform (i) the initiation of transactions, (ii) the recording of transactions and (iii) the custody of assets. Second, we intend to create a senior position to focus on financial reporting and standardizing and documenting our accounting procedures with the goal of increasing the effectiveness of the internal controls in preventing and detecting misstatements of accounting information. Third, 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. We anticipate the costs of implementing these remediation initiatives will be approximately $37,500 to $50,000 a year in increased salaries, legal and accounting expenses.

 

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.

 

  15  

 

PART II — OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

To the best knowledge of the officers and directors, the Company was not a party to any legal proceeding or litigation as of September 30, 2018.

 

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

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information.

 

None.

 

Item 6. Exhibits.

 

Exhibit No. Description
31.1 Chief Executive Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 Chief Financial Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.
32.2 Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002
101 The following materials from Sino United Worldwide Consolidated Ltd.’s Quarterly Report on Form 10-Q for the period ended September 30, 2018 are formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheet; (ii) the Consolidated Statement of Comprehensive Income; (iii) the Consolidated Statements of Cash Flows, and (iv) Notes to Consolidated Financial Statements. This Exhibit 101 is deemed not filed for purposes of Sections 11 or 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

  

  16  

 

SIGNATURES

 

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

  SINO UNITED WORLDWIDE CONSOLIDATED LTD.
   
   
   
Date: November 19, 2018  By:  /s/ Yanru Zhou        
  Yanru Zhou
  Chief Executive Officer
   
   
  SINO UNITED WORLDWIDE CONSOLIDATED LTD.
   
   
   
Date: November 19, 2018 By:  /s/ Yanru Zhou        
  Yanru Zhou
  Chief Financial Officer

 

 17

Exhibit 31.1

 

Certification Pursuant to Section 302 of the Sarbanes- Oxley Act of 2022

 

I, Yanru Zhou, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Sino United Worldwide Consolidated Ltd. (the “Registrant”);

 

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

 

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

 

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

 

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

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

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

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

 

 

Dated: November 19, 2018

 

 

By: /s/ Yanru Zhou        

Name: Yanru Zhou

Title: Chief Executive Officer

Exhibit 31.2

 

Certification Pursuant to Section 302 of the Sarbanes- Oxley Act of 2022

 

I, Yanru Zhou, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Sino United Worldwide Consolidated Ltd.;

 

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

 

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

 

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

 

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

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

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

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

 

 

Dated: November 19, 2018

 

 

By: /s/ Yanru Zhou        

Name: Yanru Zhou

Title: Chief Financial Officer

Exhibit 32.1

 

Certification Pursuant to 18 U.S.C. Section 1350

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

 

In connection with the Quarterly Report of Sino United Worldwide Consolidated Ltd. (the “Registrant”) on Form 10-Q for the quarter ended September 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Yanru Zhou, as CEO of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

 

(1) The Report fully complies with the requirements of section 13(a) or 15(d), as applicable of the Securities Exchange Act of 1934; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

 

 

Dated: November 19, 2018

 

 

By: /s/ Yanru Zhou        

Name: Yanru Zhou

Title: Chief Executive Officer

 

 

A signed original of this written statement required by Section 906 has been provided to Sino United Worldwide Consolidated Ltd. and will be retained by Sino United Worldwide Consolidated Ltd. and furnished to the Securities and Exchange Commission or its staff.

Exhibit 32.2

 

Certification Pursuant to 18 U.S.C. Section 1350

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

 

In connection with the Quarterly Report of Sino United Worldwide Consolidated Ltd. (the “Registrant”) on Form 10-Q for the quarter ended September 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Yanru Zhou, as CFO of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

 

(3) The Report fully complies with the requirements of section 13(a) or 15(d), as applicable of the Securities Exchange Act of 1934; and

 

(4) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

 

 

Dated: November 19, 2018

 

 

By: /s/ Yanru Zhou        

Name: Yanru Zhou

Title: Chief Financial Officer

 

 

A signed original of this written statement required by Section 906 has been provided to Sino United Worldwide Consolidated Ltd. and will be retained by Sino United Worldwide Consolidated Ltd. and furnished to the Securities and Exchange Commission or its staff.