Financial Analysis

NOTE 17: COMMITMENTS AND CONTINGENCIES As of December 31, 2025 and 2024, the Company has no material commitments or contingencies.

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The following table provides information about disaggregated revenue from customers into the nature of the products and services, and the related timing of revenue recognition: SCHEDULE OF DISAGGREGATED REVENUE For the Year Ended For the Year Ended Type of products or services Timing of revenue recognition December 31, 2025 December 31, 2024 Consultancy service fee income Services transferred over time $ 68,305 $ 19,524 Sales of healthcare products Goods transferred at a point in time 258,802 106,024 Sales of wine products Goods transferred at a point in time 764 107,791 TOTAL $ 327,871 $ 233,339

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NOTE 13: INCOME TAXES The provision for income taxes consisted of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE 2025 2024 Years ended December 31, 2025 2024 Current tax $ - $ 836 Deferred tax - - Income tax expense $ - $ 836 The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company operates in various countries: United States of America, Hong Kong and the PRC that are subject to taxes in the jurisdictions in which they operate, as follows: United States of America CFOO is registered in the State of Delaware and is subject to US federal corporate income tax. The U.S. Tax Cuts and Jobs Act (the Tax Reform Act) was signed into law. The Tax Reform Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018 . The Companys policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued or paid interest or penalties which were not material to its results of operations for the years presented. For the years ended December 31, 2025 and 2024, the Company did not have any interest and penalties associated with tax positions. As of December 31, 2025 and 2024, the Company has not accrued any penalties on uncertain tax positions. As of December 31, 2025, the operation in the …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10: LEASE The Company leased warehouse facilities under non-cancelable operating leases with a lease term of two years. Pursuant to the terms of the lease agreements, the Company may apply for renewal three months prior to the expiry of the lease term, subject to the Landlords consent. The Landlord has agreed to refund the security deposit upon termination of the leases, provided that the original deposit receipt is returned. Right of use assets and lease liability right of use are as follows: SCHEDULE OF RIGHT OF USE ASSETS AND LEASE LIABILITY December 31, 2025 December 31, 2024 Right-of-use assets $ 20,425 $ - The lease liability is as follows: December 31, 2025 December 31, 2024 Current portion $ 10,920 $ - Non-current portion 9,504 - Total $ 20,424 $ - Total lease liability $ 20,424 $ - …

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Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Accounting Standards Recently Adopted In August 2020, the FASB issued ASU 2020-06, Debt Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging Contracts in Entitys Own Equity (Subtopic 815-40). This ASU reduces the number of accounting models for convertible debt instruments and convertible preferred stock and amends the guidance for the derivatives scope exception for contracts in an entitys own equity to reduce form-over-substance-based accounting conclusions. In addition, this ASU improves and amends the related earnings per share guidance. This standard became effective for the Company beginning on January 1, 2022. Adoption is either a modified retrospective method or a fully retrospective method of transition. The Company adopted this guidance effective January 1, 2022, and the adoption of this standard did not have a material impact on its consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), DebtModifications and Extinguishments (Subtopic 470-50), CompensationStock Compensa …

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NOTE 14: PENSION COSTS The Company is required to make contributions to their employees under a government-mandated defined contribution pension scheme for its eligible full-times employees in the Peoples Republic of China and mandatory provident funds for its eligible full-times employees in Hong Kong. The Company is required to contribute a specified percentage of the participants relevant income based on their age and wage level. During the years ended December 31, 2025 and 2024, $ 10,941 and $ 13,081 contributions were made accordingly. …

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NOTE 15: RELATED PARTY TRANSACTIONS From time to time, the Companys directors, related parties and related company advanced funds to the Company for working capital purposes. Those advances are unsecured, non-interest bearing and due on demand. As of December 31, 2025 and 2024, the Company owed the balance of $ 474,102 and $ 360,858 to its directors, owed the balance of $ 370,302 and $ 290,649 to a related company, owed the balance of $ 362,608 and $ 166,423 to a related party, and advance the balance of $ 477 and nil from its director. The Company has the following transactions with related parties as of the year or during the year: SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES Name of related party Relationship with the Company Nature of the transaction 2025 2024 As of December 31, Name of related party Relationship with the Company Nature of the transaction 2025 2024 Kong Xiao Jun Chief Executive Officer, Chief Financial Officer and Director Advances to the Company $ 471,631 $ 353,967 Yang Huan Director Advances (from)/ to the Company $ ( 477 ) 4,420 Yunsi Liu Director Advances to the Company $ 2,471 2,471 KHK Resources Investments Limited (Formerly known as HY Resources Investments Limited) Shareholder Advances to the Company $ 370,302 $ 290,649 Wong Ka Leng Wong Ka Leng is the legal representative of Guangzhou Xiao Xiang Health Industry Company Limited Advances to the Company $ 362,608 $ 166,423 Advances to the Company Wong Ka Leng is the legal representative of Guangzho …

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NOTE 4: SEGMENT REPORTING Currently, the Company has two reportable business segments: (i) Healthcare Segment, mainly provides health consulting advisory services and healthcare and wellness products to the customers; and (ii) Wine Segment, mainly provides the wine products to the customers. In the following table, revenue is disaggregated by primary major product line, including a reconciliation of the disaggregated revenue with the reportable segments. SUMMARY OF REPORTABLE SEGMENTS Healthcare Wine Year Ended December 31, 2025 Healthcare Wine Segment Segment Total Revenue from external customers: Consulting service income $ 68,305 $ - $ 68,305 Sale of healthcare products 258,802 - 258,802 Sale of wine products - 764 764 Total revenue 327,107 764 327,871 Cost of sales: Consulting service income (67,184 ) - (67,184 ) Sale of healthcare products (230,680 ) - (230,680 ) Sale of wine products - (45 ) (45 ) Total cost of revenue (297,864 ) (45 ) (297,909 ) Gross profit 29,243 719 29,962 Operating Expenses Selling and distribution (1,048 ) (4,193 ) (5,241 ) General and administrative (84,729 ) (338,915 ) (423,644 ) Total operating expenses (85,777 ) (343,108 ) (428,885 ) Segment loss $ (56,534 ) $ (342,389 ) $ (398,923 ) Healthcare Wine Year Ended December 31, 2024 Healthcare Wine Segment Segment Total Revenue from external customers: Consulting service income $ 19,524 $ - $ 19,524 Sale of healthcare products 106,024 - 106,024 Sale of wine products - 107,791 107,791 Total revenue …

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NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation The Companys consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). All adjustments considered necessary for a fair presentation have been included. These adjustments consist of normal and recurring accruals, as well as non-recurring charges. The consolidated financial statements are presented in US Dollars and include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The results of subsidiaries acquired or disposed of during the periods are included in the consolidated statements of operations from the effective date of acquisition or up to the effective date of disposal. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant areas for which management uses estimates include: inventories; estimated lives for tangible and intangible assets; and val …

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NOTE 11: SHAREHOLDERS EQUITY Common Stock The Company is authorized, subject to limitations prescribed by Delaware law, to issue up to 100,000,000 shares of common stock with a par value of $ 0.0001 . Dividend Rights Subject to preferences that may apply to shares of preferred stock outstanding at the time, the holders of outstanding shares of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and only then at the times and in the amounts that our board of directors may determine. Voting Rights Each holder of common stock is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders. Under our Certificate of Incorporation, stockholders do not have the right to cumulate votes for the election of directors. No Preemptive or Similar Rights Our common stock is not entitled to preemptive rights and is not subject to conversion, redemption or sinking fund provisions. Right to Receive Liquidation Distributions Upon our dissolution, liquidation or winding-up, the assets legally available for distribution to our stockholders are distributable ratably among the holders of our common stock, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights and payment of liquidation preferences, if any, on any outstanding shares of preferred stock. As of December 31, 2025 and 2024, a total of 20,252,309 …

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NOTE 18: SUBSEQUENT EVENTS In accordance with ASC Topic 855, Subsequent Events , which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after December 31, 2025, up through the date the Company issued the audited consolidated financial statements. During the period, the Company did not have any material recognizable subsequent events. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing