ASIA PACIFIC BOILER Corp

On February 1, 2015, Yulong Pump entered into a Warranty Deed Agreement with Xiushan Qin , a former officer and former director of the Company, pursuant to which Mr. Qin has agreed to transfer to Yulong Pump by July 31, 2015 all outstanding securities of Hohhot Devotion Boiler General Company Private Limited (“Hohhot Devotion Boiler”).  The Warranty Deed Agreement does not provide for financial consideration Together, Hohhot Devotion Boiler and Yulong Pump are planning to begin construction of a new state of the art boiler manufacturing factory with a planned investment of approximately USD$250 million when the said amount has been raised. The companies intend to commence staffing and training of the new boiler plant employees concurrently with the start of construction. Yulong Pump and Hohhot Devotion Boiler also intend to rezone for commercial and residential use industrial land owned by Hohhot Devotion Boiler in Inner Mongolia.   As at the date of this report, the acquisition of Hohhot Devotion Boiler by Yulong Pump remains incomplete, and there is no guarantee that any such acquisition will be completed.  Further, there is no guarantee that Yulong Pump or Hohhot Devotion Boiler will successfully financing the construction of their planned boiler facility. On August 5, 2015, the warranty deed was extended to October 31, 2015. As at the date of this report, the acquisition has not been completed.  There is no guarantee that the transfer will be completed or that it will be completed on terms favorable to Yulong Pump.  Throughout the three months ended March 31, 2019 and year ended December 31, 2018, Yulong Pump had no business activities.

Operating expenses for the three months ended December 31, 2019 were $532,000 compared with $12,458 for the three months ended March 31, 2018. As part of our aforesaid mergers and acquisitions strategy, we entered into a consulting agreement with Surewin Capital International Limited to assist us in the acquisition of Wunong Technology (Shenzhen) Co., Ltd. In consideration therewith, we issued 7,200,000 shares of our common stock to Surewin Capital International Limited and incurred a $500,000 consulting cost paid in stock. Consequently, our net loss significantly increased from $12,485 for the three months ended 31 March 2018 to a net loss of $532,000 for the three months ended 31 March 2019. Because the consulting cost was paid in stock, it does not affect our cash flow.

We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.

We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A complete summary of these policies is included in the notes to our financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

We have implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and we do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations.