{"url_path":"/sec/elre/10-k/2026/item-7","section_key":"item-7","section_title":"Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-07-14","source_url":"https://www.sec.gov/Archives/edgar/data/1438461/0001640334-26-001178-index.html","accession_number":"0001640334-26-001178","cik":"0001438461","ticker":"ELRE","issuer_name":"Yinfu Gold Corp.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1438461/0001640334-26-001178-index.html","primary_entity_key":"0001438461","primary_entity_name":"Yinfu Gold Corp."},"word_count":1331,"has_tables":true,"body_markdown":"**Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations**\n\n \n\nThe following discussion should be read in conjunction with our audited financial statements and the related notes that appear elsewhere in this annual report. The following discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Item 1A.\n\n \n\nOur audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.\n\n \n\n \n\n20\n\n*Table of Contents*\n\n \n\n**Overview**\n\n \n\nYinfu Gold Corporation (the “Company”) is a Wyoming corporation incorporated on September 1, 2005, under the name Ace Lock & Security, Inc. Our name was changed to Yinfu Gold Corporation as of November 18, 2010.\n\n \n\nWe have had limited operations and based upon our reliance on the sale of our common stock and the advances from our president, there are no assurances of any future source of funds for our operations.\n\n \n\nEffective May 19, 2025, the Company has accepted the resignation of Mr. Jiang Libin from his position as President, CEO, CFO, the Chairman of the Board of Directors, Treasurer, Secretary and as a Director of the Company. Mr. Jiang Libin has served on the Board since December 12, 2015. The Company sincerely thanks Jiang Libin for his loyal service.\n\n \n\nAlso effective May 19, 2025, the Company announced the appointment of Mr. Zhang Hong as the President, CEO, CFO, the Chairman of the Board of Directors, Treasurer, Secretary. Since December 12, 2015, he has served as the director of the Company.\n\n \n\n**Plan of Operation**\n\n \n\nWe devote substantial efforts to enter into new-emerging application industries of Internet Technology, Artificial Intelligence (AI) and the Internet of Things (IOT). However, our planned principal operations have not yet commenced.\n\n \n\n**Need for Additional Capital**\n\n \n\nThe Company has not generated enough revenues from operations, and may be unable to fund on-going activities. We cannot guarantee that we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in developing our own hardware and software, and the possibility of new regulations that will make our company difficult or impossible to operate.\n\n  \n\nIf we are unable to meet our needs for cash from either our operations, or possible alternative sources, then we may be unable to continue, develop, or expand our operations.\n\n \n\nIf we are unable to complete any phase of our development program or fail to raise additional capital to maintain our operations in the future, we may be unable to carry out our full business plan or we may be forced to cease operations.\n\n \n\n**Results of Operations**\n\n \n\nWe have generated $0 in revenues and have incurred $147,960 in expenses for the year ended March 31, 2026.\n\n \n\nThe following table provides selected financial data about our company as of March 31, 2026 and 2025.\n\n \n\n \n\n \n\n**March 31,**\n\n**202****6**\n\n \n\n \n\n**March 31,**\n\n**202****5**\n\n \n\nCash\n\n \n$822\n \n\n \n$440\n \n\nTotal Assets\n\n \n\n \n17,683\n \n\n \n\n \n22,443\n \n\nTotal Liabilities\n\n \n\n \n652,856\n \n\n \n\n \n517,459\n \n\nStockholders’ Deficit\n\n \n$(635,173 )\n \n$(495,016 )\n\n \n\nAs of March 31, 2026, the Company’s cash balance was $822 compared to $440 as of March 31, 2025, and our total assets as of March 31, 2026, were $17,683, compared with $22,443 as of March 31, 2025. The decrease in total assets was due to the amortization charges on right-of-use and the lease modification as of March 31, 2026.\n\n \n\nAs of March 31, 2026, the Company had total liabilities of $652,856 compared with total liabilities of $517,459 as of March 31, 2025. The significant increase in total liabilities was primarily attributed to the increase of debts owed to Mr Zhang Hong in the total amount of $93,222 for the years ended March 31, 2026, which consisted of accumulated salary of $55,000 and loan of $38,222.\n\n \n\n \n\n21\n\n*Table of Contents*\n\n \n\n \n\n \n\n**Year ended March 31, 2026**\n\n \n\n \n\n**Year ended March 31, 2025**\n\n \n\n \n\n**Fluctuation**\n\n \n\n \n\n**%**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevenue\n\n \n$-\n \n\n \n$-\n \n\n \n$N/A\n \n\n \n\n \nN/A\n \n\nOperating Expenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nGeneral and administrative\n\n \n\n \n97,683\n \n\n \n\n \n45,355\n \n\n \n\n \n52,328\n \n\n \n\n \n115%\n\nProfessional fees\n\n \n\n \n50,277\n \n\n \n\n \n42,044\n \n\n \n\n \n8,233\n \n\n \n\n \n20%\n\n     Total Operating Expenses\n\n \n\n \n147,960\n \n\n \n\n \n87,399\n \n\n \n\n \n60,561\n \n\n \n\n \n69%\n\n     Net loss from Operations\n\n \n\n \n(147,960)\n \n\n \n(87,399)\n \n\n \n(60,561)\n \n\n \n69%\n\nOther income (expense)\n\n \n\n \n16,898\n \n\n \n\n \n116,843\n \n\n \n\n \n(99,945)\n \n\n \n-86%\n\n     Net loss\n\n \n$(131,062)\n \n$29,444\n \n\n \n$(160,506)\n \n\n \n-545%\n\n \n\n*Revenues*\n\n \n\n The Company has generated no operating revenues during the year ended March 31, 2026 and 2025.\n\n \n\n*Operating expenses*\n\n \n\nFor the year ended March 31, 2026, total operating expenses were $147,960 which consisted of general and administrative fees and professional fees. For the year ended March 31, 2025, total operating expenses were $87,399 which consisted of general and administrative fees and professional fees. The increase in operating expense was mainly due to the increase in general and administrative expenses, which mainly resulted from the increase in Management’s salary expense of $55,000 for the year ended March 31, 2026.\n\n \n\n**Liquidity and Capital Resources**\n\n \n\nWorking Capital\n\n \n\n \n\n \n\n**As of**\n\n**March 31,**\n\n**202****6**\n\n \n\n \n\n**As of**\n\n**March 31,**\n\n**202****5**\n\n \n\nCurrent Assets\n\n \n\n$\n\n14,287\n\n \n\n \n\n$\n\n11,938\n\n \n\nCurrent Liabilities\n\n \n\n$\n\n650,213\n\n \n\n \n\n$\n\n507,642\n\n \n\nWorking Capital Deficiencies\n\n \n\n$\n\n(635,926\n\n)\n\n \n\n$\n\n(495,704\n\n)\n\n \n\nAs of March 31, 2026, the Company had a working capital deficiency of $635,926, compared with working capital deficiency of $495,704 as of March 31, 2025. The increase in working capital deficiency was primarily attributed to the increase in current liabilities due to (1) the increase in debts of $38,222 owed to Mr Zhang Hong; (2) salary payable of $55,000 to Mr Zhang Hong; and (3) borrowing of $16,718 from a third party.\n\n  \n\nCash Flows\n\n \n\n \n\n \n\n**Year Ended**\n\n**March 31,**\n\n**202****6**\n\n \n\n \n\n**Year Ended**\n\n**March 31,**\n\n**202****5**\n\n \n\nCash Used in Operating Activities\n\n \n$(50,160 )\n \n$(72,114 )\n\nCash Used in Investing Activities\n\n \n$-\n \n\n \n$-\n \n\nCash Provided by Financing Activities\n\n \n$38,132\n \n\n \n$80,535\n \n\nEffects on changes in foreign exchange rate\n\n \n$12,410\n \n\n \n$(8,469 )\n\nNet Increase (Decrease) in Cash During the Year\n\n \n$382\n \n\n \n$(48 )\n\n \n\n \n\n22\n\n*Table of Contents*\n\n \n\n**Cash Flows Used in Operating Activities**\n\n \n\nDuring the year ended March 31, 2026, the Company had $50,160 in cash used in operating activities which was mainly attributed to loss from operations of $131,062, an increase in other receivable of $1,352, a decrease of $18,447 in advance from related party, and a decrease of $2,573 in operating lease liability, and partially offset by  the amortization of right-of-use asset of $603,  the increase in wage payable to related party of $55,000, and the increase in other payable of $47,671.\n\n \n\nDuring the year ended March 31, 2025, the Company had $72,114 in cash used in operating activities which was mainly attributed to a decrease of $78,703 in wage payable to related party, a decrease in advance from related party of $33,258, partially offset by the net income of $29,444, an increase in other payable of $10,942, a decrease in operating lease liability of 3,787. The increase in cash used for operating activities was primarily due to the decrease in wages payable to related party and the decrease in advances received from related party.\n\n  \n\n**Cash Flows Used in Investing Activities**\n\n \n\nDuring the years ended March 31, 2026 and 2025, the Company used no cash in investing activities.\n\n \n\n**Cash Flows Provided by Financing Activities** \n\n \n\nFor the year ended March 31, 2026, the Company had $38,132 in cash provided by financing activities which was mainly attributed to proceeds from related party short-term loan of $45,163, offset by repayment to related party of $7,031.\n\n \n\nFor the year ended March 31, 2025, the Company had $80,535 in cash provided by financing activities which was attributed to proceeds of $80,535 from related parties.\n\n \n\n**Off-Balance Sheet Arrangements**\n\n \n\nWe do not have any 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 or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.\n\n \n\n**Critical Accounting Estimates****and Policies**\n\n \n\nThe Company does not have critical accounting estimate."}