Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Ho Wah Genting Group Ltd | s105057_ex99-1.htm |
| 8-K/A - 8-K/A - Ho Wah Genting Group Ltd | s105057_8ka.htm |
Exhibit 99.2
HO WAH GENTING GROUP LIMITED
HO WAH GENTING GROUP SDN BHD
FINANCIAL STATEMENTS
Table of Contents
| Page Number | |
| Unaudited Pro Forma Financial Statements | F-2 |
| Pro Forma Condensed Balance Sheet as of September 30, 2016 | F-3 |
| Pro Forma Condensed Statements of Operations for the Three-Month and Nine-month periods ended September 30, 2016 | F-4 |
| Notes to Pro Forma Financial Statements | F-6 |
Unaudited Pro Forma Condensed Combined Financial Information
The accompanying unaudited pro forma condensed financial information have been prepared to present the balance sheet and statements of operations of HO WAH GENTING GROUP LIMITED (the “Company”), to indicate how the consolidated financial statements of the Company might have looked like if the acquisition of Ho Wah Genting Group SDN BHD, (“HWGG”) and transactions related to the acquisition had occurred as of the beginning of the periods presented.
The unaudited pro forma condensed combined balance sheet as of September 30, 2016 is presented as if the acquisition of HWGG had occurred on September 30, 2016.
The unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2016, and year ended December, 31, 2015, are presented as if the acquisition of HWGG had occurred on January 1, 2015 and were carried forward through each of the aforementioned periods presented.
These pro forma condensed financial statements are presented for illustrative purposes only and are not intended to be indicative of actual consolidated financial position and consolidated results of operations had the purchase been in effect during the periods presented, or of consolidated financial condition or consolidated results of operations that may be reported in the future.
Note the pro forma adjustments contained in the pro forma condensed financial statements relate to the assumptions of all prior and existing liabilities of the Company upon consummation of the purchase.
| F-2 |
Unaudited Pro Forma Condensed Balance Sheet
As of September 30, 2016
(Stated in U.S. Dollars)
| Historical | Pro Forma | |||||||||||||||||||
Ho Wah Genting Group SDN BHD | HO WAH GENTING GROUP LIMITED | Adjustments | Note 2 | Combined | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Cash and cash equivalents | 695,029 | - | 695,029 | |||||||||||||||||
| Other receivables, deposits and prepayment | 46,945 | - | 46,945 | |||||||||||||||||
| Amount due from director | 668,508 | - | 668,508 | |||||||||||||||||
| Amount due from related company | 803,532 | - | 803,532 | |||||||||||||||||
| Short-term investments | 59,034 | - | 59,034 | |||||||||||||||||
| Total current assets | 2,273,048 | - | 2,273,048 | |||||||||||||||||
| Non-current assets | ||||||||||||||||||||
| Property, plant and equipment | 65,266 | - | 65,266 | |||||||||||||||||
| Total non-current assets | 65,266 | - | 65,266 | |||||||||||||||||
| Total assets | 2,338,314 | - | 2,338,314 | |||||||||||||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||
| Account payables and other accruals | 2,138,536 | 2,000 | (2,000 | ) | (1 | ) | 2,138,536 | |||||||||||||
| Amount due to related party | 63,254 | 36,999 | (36,999 | ) | (1 | ) | 63,254 | |||||||||||||
| Total current liabilities | 2,201,790 | 38,999 | 2,201,790 | |||||||||||||||||
| Deferred tax liabilities | - | - | - | |||||||||||||||||
| Total non-current liabilities | - | - | - | |||||||||||||||||
| Total liabilities | 2,201,790 | 38,999 | 2,201,790 | |||||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||
| STOCKHOLDERS’ DEFICIT | ||||||||||||||||||||
| (402,172 | ) | (1 | ) | |||||||||||||||||
| Common stock | 402,172 | 514 | (500 | ) | (2 | ) | 14 | |||||||||||||
| Additional paid-in capital | - | 21,036 | (21,036 | ) | (1 | ) | 402,158 | |||||||||||||
| 402,172 | (1 | ) | ||||||||||||||||||
| (514 | ) | (1 | ) | |||||||||||||||||
| 500 | (2 | ) | ||||||||||||||||||
| Accumulated deficit | (37,338 | ) | (60,549 | ) | 60,549 | (3 | ) | (37,338 | )0z0 | |||||||||||
| Non-controlling interest | - | - | - | |||||||||||||||||
| Accumulated other comprehensive loss | (228,310 | ) | - | (228,310 | ) | |||||||||||||||
| Total stockholders’ (deficit) equity | 136,524 | (38,999 | ) | 136,524 | ||||||||||||||||
| Total liabilities and stockholders’ deficit | 2,338,314 | - | 2,338,314 | |||||||||||||||||
| F-3 |
Unaudited Proforma Condensed Statement of Operations
For the Nine months Ended September 30, 2016
(Stated in U.S. Dollars)
| Historical | Pro Forma | |||||||||||||||||||
Ho Wah Genting Group SDN BHD | HO WAH LIMITED | Adjustments | Note 2 | Combined | ||||||||||||||||
| Revenue | 19,052 | 1,235 | (1,235 | ) | (1 | ) | 19,052 | |||||||||||||
| Cost of revenue | (3,082 | ) | - | (3,082 | ) | |||||||||||||||
| Gross profit | 15,970 | 1,235 | - | - | 15,970 | |||||||||||||||
| Operating expenses | ||||||||||||||||||||
| General and administrative | 272,353 | 43,373 | (43,373 | ) | (1 | ) | 272,353 | |||||||||||||
| Income/(Loss) from operations | (256,383 | ) | (42,138 | ) | (256,383 | ) | ||||||||||||||
| Interest expenses | 205 | - | 205 | |||||||||||||||||
| Other income | (615 | ) | - | (615 | ) | |||||||||||||||
| Other expenses | (42,383 | ) | (42,383 | ) | ||||||||||||||||
| Exchange gain (loss) | 2,265 | - | 2,265 | |||||||||||||||||
| Income/(Loss) before income taxes | (296,911 | ) | (42,138 | ) | (296,911 | ) | ||||||||||||||
| Provision for income taxes | (736 | ) | - | (736 | ) | |||||||||||||||
| GAIN/(LOSS) FROM DISCONTINUED OPERATIONS | (297,647 | ) | (42,138 | ) | - | - | (297,647 | ) | ||||||||||||
| Gain (loss) from discontinued operations | (16,810 | ) | (16,810 | ) | ||||||||||||||||
| Net Income/(Loss) | (314,457 | ) | (42,138 | ) | - | - | (314,457 | ) | ||||||||||||
| Foreign currency translation adjustment | 39,584 | - | 39,584 | |||||||||||||||||
| Comprehensive Income/(Loss) | (274,873 | ) | (42,138 | ) | - | - | (274,873 | ) | ||||||||||||
| F-4 |
Proforma Condensed Statement of Operations
For the Year Ended December 31, 2015
(Stated in U.S. Dollars)
| Historical | Pro Forma | |||||||||||||||||||
Ho Wah Genting Group SDN BHD | HO WAH GENTING GROUP | Adjustments | Note 2 | Combined | ||||||||||||||||
| Revenue | 35,019 | 18,950 | (18,950 | ) | (1 | ) | 35,019 | |||||||||||||
| Cost of revenue | (10,194 | ) | - | - | - | (10,194 | ) | |||||||||||||
| Gross profit | 24,825 | 18,950 | - | 24,825 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| General and administrative | 215,795 | 26,906 | (26,906 | ) | (1 | ) | 215,795 | |||||||||||||
| Loss from operations | (190,970 | ) | (7,956 | ) | - | - | (190,970 | ) | ||||||||||||
| Other income | 19,765 | - | - | - | 19,765 | |||||||||||||||
| Loss before income taxes | (171,205 | ) | (7,956 | ) | - | - | (171,205 | ) | ||||||||||||
| Provision for income taxes | (121 | ) | - | - | - | (121 | ) | |||||||||||||
| Net Loss | (171,326 | ) | (7,956 | ) | - | - | (171,326 | ) | ||||||||||||
| Foreign currency translation adjustment | (122,661 | ) | - | - | - | (122,661 | ) | |||||||||||||
| Comprehensive Loss | (293,987 | ) | (7,956 | ) | - | - | (293,987 | ) | ||||||||||||
| F-5 |
Notes to Pro Forma Condensed Financial Statements
Note 1 – Basis of Presentation
The proforma condensed combined balance sheet as of September 30, 2016, and the proforma condensed combined statements of operations for the period ended September 30, 2016, are based on the historical financial statements of the Company and HWGG after giving effect of the reverse merger between the Company and HWGG on September 30, 2016, and the assumptions, reclassifications and adjustments described in the accompanying notes to the unaudited pro forma condensed combined financial information.
Note 2 –Adjustments
| (1) | To eliminate assets and liabilities retained by predecessor owners of the Company |
| (2) | To record cancellation of 3,000,000 shares of predecessor owners of the Company, and record of issuance of 5,140,319 shares of our Common Stock for all of the outstanding capital stock of HWGG with the result that HWGG became wholly owned subsidiaries of ours. |
| (3) | To eliminate paid in capital for HWGG’s shares |
| (4) | To eliminate the Company’s expenses as the result of the elimination of assets and liabilities of the Company’s as of September 30, 2016. |
| F-6 |