Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This periodic report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act") with respect to the financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive positions, growth opportunities for existing products, plans and objectives of management. Statements in this periodic report that are not historical facts are hereby identified as forward-looking statements. Our Company and our representatives may from time to time make written or oral statements that are "forward-looking," including statements contained in this Interim Report and other filings with the Securities and Exchange Commission and in reports to our Company's stockholders. Management believes that all statements that express expectations and projections with respect to future matters, as well as from developments beyond our Company's control including changes in global economic conditions are forward-looking statements within the meaning of the Reform Act. These statements are made on the basis of management's views and assumptions, as of the time the statements are made, regarding future events and business performance. There can be no assurance, however, that management's expectations will necessarily come to pass. Factors that may affect forward-looking statements include a wide range of factors that could materially affect future developments and performance, including the following:

Changes in Company-wide strategies, which may result in changes in the types or mix of businesses in which our Company is involved or chooses to invest; changes in U.S., global or regional economic conditions; changes in U.S. and global financial and equity markets, including significant interest rate fluctuations, which may impede our Company's access to, or increase the cost of, external financing for our operations and investments; increased competitive pressures, both domestically and internationally; legal and regulatory developments, such as regulatory actions affecting environmental activities; the imposition by foreign countries of trade restrictions and changes in international tax laws or currency controls; adverse weather conditions or natural disasters, such as hurricanes and earthquakes; and labor disputes, which may lead to increased costs or disruption of operations.

This list of factors that may affect future performance and the accuracy of forward-looking statements are illustrative, but by no means exhaustive.

Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

Business Overview

We are a health and wellness company that develops, markets, promotes and distributes a variety of customized health and wellness care products and services, including supplements, healthy snacks, meal replacements, skincare products, and nutritional consultation services to consumers in China and Hong Kong. We work with certain licensed healthcare food factories to develop and manufacture products and services that are distributed conventionally through sales agents and also through a network of e-commerce and social media platforms.

In addition to products, we are committed to providing customized science-based wellness consultation and service programs to customers. Our diverse products and services target health-conscious customers and differentiate based upon age and gender and seek to manage different conditions. We reach out to customers fitting certain health and lifestyle profiles through our offline and online consultation services, and track eating habits and health indicators to provide customized products such as supplements. We believe this will facilitate the ability of customers to monitor, understand and adjust their health practices and lifestyle anytime and anywhere for increased customer engagement and retention.

While recent trade tensions and high tariffs pose potential risks to our supply chain and pricing, we are actively monitoring the situation and implementing strategies such as supplier diversification, local sourcing, and logistics optimization to mitigate these impacts. Committed to innovation and customer well-being, we strive to provide holistic, accessible, and customized wellness solutions that empower our customers to lead healthier lives despite the evolving global trade environment.

We conduct our business through our wholly owned subsidiary Guangzhou Xiao Xiang Health Industry Company Limited, a limited liability company organized under the laws of China on March 8, 2017, and Alpha Wellness (HK) Limited, a limited liability company organized under the laws of Hong Kong on April 24, 2019. Elite Creation Group, a limited liability company formed under the laws of the British Virgin Islands formed on September 5, 2018, is holding companies without operations.

RESULTS OF OPERATIONS

The following table sets forth certain operational data for the three and six months ended June 30, 2026, and 2025:

		Three Months Ended				Three Months Ended
		June 30, 2026				June 30, 2025
Revenue, net		$	2			$	142,214
Cost of revenue			-				(126,654	)
Gross profit			2				15,560
Total operating expenses			(63,754	)			(112,915	)
Total other income			2				3
Loss before income tax			(63,750	)			(97,352	)
Income tax expense			-				-
Net loss			(63,750	)			(97,352	)

		Six Months Ended				Six Months Ended
		June 30, 2026				June 30, 2025
Revenue, net		$	255			$	142,255
Cost of revenue			(24	)			(126,670	)
Gross profit			231				15,585
Total operating expenses			(125,581	)			(216,681	)
Total other income			3				189
Loss before income tax			(125,347	)			(200,907	)
Income tax expense			-				-
Net loss			(125,347	)			(200,907	)

Revenue. For the three and six months ended June 30, 2026, we generated revenues of $2 and $255, respectively. For the comparative three and six months ended June 30, 2025, we generated revenues of $142,214 and $142,255, respectively. There was a significant decrease in revenue because of a reducing demand in healthcare products during the period.

Cost of Revenue. For the three and six months ended June 30, 2026, the cost of revenue was $0 and $24, respectively, and as a percentage of net revenue, approximately 0% and 9%, Cost of revenue for the three and six months ended June 30, 2025, was $126,654 and $126,670, respectively, and as a percentage of net revenue, approximately 89% and 89%, respectively. The decrease in cost of revenue was in line with the drop in revenue during the period.

Gross Profit. For the three months ended June 30, 2026, and 2025, the gross profit was $2 and $15,560, respectively, the gross profit margin was 100% and 11%, respectively. For the six months ended June 30, 2026, and 2025, the gross profit was $231 and $15,585, respectively, the gross profit margin was 90% and 11%, respectively.The decrease in gross profit amount was due to lower sales volumes during the period. Cost of revenue decreased in step with reduced sales activity, as direct manufacturing and product costs were aligned with current demand levels. Consequently, cost of revenue was nominal for the three and six months ended June 30, 2026, resulting in gross margins of 100.0% and 90%, respectively.

Operating Expenses. For the three and six months ended June 30, 2026, the operating cost was $63,754 and $125,581, respectively, and while for the three and six months ended June 30, 2025, was $112,915 and $216,681, respectively. The operating expenses decreased due to a decrease in selling expenses and better control in administrative expenses.

Other Income. For the three and six months ended June 30, 2026, the total other income was $2 and $3, respectively and for the three and six months ended June 30, 2025 was $3 and $189, respectively. Other income decreased due to a decrease in receipt of bank interest income.

Net Loss. For the three and six months ended June 30, 2026, we incurred a net loss of $63,750 and $125,347, respectively and for the three and six months ended June 30, 2025, we incurred a net loss of $97,352 and $200,907, respectively. The decrease in net loss was primarily attributable to the significant decrease in administrative expenses.

Liquidity and Capital Resources

As of June 30, 2026, we had cash and cash equivalents of $15,923.

As of December 31, 2025, we had cash and cash equivalents of $9,893.

We believe that our current cash and other sources of liquidity discussed below are adequate to support general operations for at least the next 12 months.

		Six Months Ended June 30,
		2026				2025
Net cash used in operating activities		$	(149,705	)		$	(186,613	)
Net cash used in investing activities			-				-
Net cash provided by financing activities			167,550				216,549

Operating Activities.

For the six months ended June 30, 2026, net cash used in operating activities was $149,705 which primarily consisted of a net loss of $125,347, non-cash adjustments of depreciation of plant and equipment of $3,504, non-cash adjustments of depreciation of right of use assets of $5,513, amortization of intangible asset of $245, non-cash lease expense of $441, increase in deposits and other receivables of $3,840, increase in inventories of $1,152, decrease in accrued liabilities and other payables of $28,169, increase in customer deposits of $5,463, decrease in lease liabilities of $5,954 and increase in income tax refundable of $409.

For the six months ended June 30, 2025, net cash used in operating activities was $186,613 which primarily consisted of a net loss of $200,907, non-cash adjustments of depreciation of plant and equipment of $3,489, amortization of intangible asset of $232, decrease in deposits and other receivables of $157,061, increase in inventories of $43,295, increase in accrued liabilities and other payables of $1,500, decrease in customer deposits of $96,118 and increase in income tax refundable of $8,575.

We expect to continue to rely on cash generated through financing from our existing stockholders and private placements of our securities, however, to finance our operations and future acquisitions.

Investing Activities.

For the six months ended June 30, 2026, and 2025, net cash used in investing activities was $0 and $0, which was movement during the period.

Financing Activities.

For the six months ended June 30, 2026, and 2025, net cash provided by financing activities was $167,550 and $216,549, which primarily consisted of advances from a director, related parties and a related company.

Off Balance Sheet Arrangements

We have not entered into any off-balance sheet arrangements, and it is not anticipated that the Company will enter into any off-balance sheet arrangements.

Critical Accounting Policies, Judgments and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operations. Critical accounting policies are those that are most important to the presentation of our financial condition and results of operations and require management's subjective or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management's current judgments. We believe the following accounting policies are critical in the preparation of our financial statements.

The Company's accounting policies are more fully described in Note 1 and 2 of the unaudited condensed consolidated financial statements. As discussed in Note 1 and 2, the preparation of the unaudited condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about the future events that affect the amounts reported in the financial statements and the accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual differences could differ from these estimates under different assumptions or conditions. The Company believes that the following addresses the Company's most critical accounting policies.

Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets will be reflected on the balance sheet when it is determined that it is more likely than not that the asset will be realized. A valuation allowance has currently been recorded to reduce our deferred tax assets to $0.

Forward-looking Statements

The Private Securities Litigation Reform Act of 1995 (the "Reform Act") provides a safe harbor for forward-looking statements made by or on behalf of our Company. Our Company and our representatives may from time to time make written or oral statements that are "forward-looking," including statements contained in this report and other filings with the Securities and Exchange Commission and in reports to our Company's stockholders. Management believes that all statements that express expectations and projections with respect to future matters, as well as from developments beyond our Company's control including changes in global economic conditions are forward-looking statements within the meaning of the Reform Act. These statements are made on the basis of management's views and assumptions, as of the time the statements are made, regarding future events and business performance. There can be no assurance, however, that management's expectations will necessarily come to pass. Factors that may affect forward-looking statements include a wide range of factors that could materially affect future developments and performance, including the following:

Changes in Company-wide strategies, which may result in changes in the types or mix of businesses in which our Company is involved or chooses to invest; changes in U.S., global or regional economic conditions; changes in U.S. and global financial and equity markets, including significant interest rate fluctuations, which may impede our Company's access to, or increase the cost of, external financing for our operations and investments; increased competitive pressures, both domestically and internationally; legal and regulatory developments, such as regulatory actions affecting environmental activities; the imposition by foreign countries of trade restrictions and changes in international tax laws or currency controls; adverse weather conditions or natural disasters, such as hurricanes and earthquakes; and labor disputes, which may lead to increased costs or disruption of operations.

This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative, but by no means exhaustive.

Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty.