{"url_path":"/sec/hgyn/10-k/2026/item-15","section_key":"item-15","section_title":"Item 15 **","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-08","source_url":"https://www.sec.gov/Archives/edgar/data/1324759/0001493152-26-021954-index.html","accession_number":"0001493152-26-021954","cik":"0001324759","ticker":"HGYN","issuer_name":"HONG YUAN HOLDING GROUP","edgar_url":"https://www.sec.gov/Archives/edgar/data/1324759/0001493152-26-021954-index.html","primary_entity_key":"0001324759","primary_entity_name":"HONG YUAN HOLDING GROUP"},"word_count":5401,"has_tables":true,"body_markdown":"**ITEM\n15**\n**EXHIBITS\nAND FINANCIAL STATEMENT SCHEDULES.**\n\n \n\n(a)\nThe\nfollowing documents have been filed as part of this Annual Report on Form 10-K.\n\n \n\n1.\nFinancial\nStatements\n\n \n\nYears\nEnded December 31, 2025, and 2024\n\n \n\n \n**Page**\n\n**Report of Independent Registered Public Accounting Firm (PCAOB ID 7275)**\n**F-1**\n\n**Balance Sheets as of December 31, 2025, and 2024**\n**F-2**\n\n**Statements of Operations for the Years Ended December 31, 2025, and 2024**\n**F-3**\n\n**Statements of Shareholders’ Deficit for the Years Ended December 31, 2025 and 2024**\n**F-4**\n\n**Statements of Cash Flows for the Years Ended December 31, 2025, and 2024**\n**F-5**\n\n**Notes to Financial Statements**\n**F-6**\n\n \n\n2.\nFinancial\nStatement Schedules.\n\n \n\nAll\nschedules are omitted because they are not applicable, or not required, or because the required information is included in the Financial\nStatements or the Notes thereto.\n\n \n\n3.\nExhibits.\nThe following exhibits are filed as part of, or incorporated by reference into, this Annual Report:\n\n \n\n**Exhibit**\n\n**No.**\n\n \n**Description**\n\n \n \n \n\n3.1*\n \n[Articles of Incorporation and Amendment thereto.](https://www.sec.gov/Archives/edgar/data/1324759/000121390021012350/ea136699ex3-1_cereplast.htm)\n\n \n \n \n\n3.2*\n \n[Bylaws](https://www.sec.gov/Archives/edgar/data/1324759/000121390021012350/ea136699ex3-2_cereplast.htm)\n\n \n \n \n\n10.1*\n \n[Securities Purchase Agreement between Custodian ventures, LLC and Xudong Li dated October 22, 2020](https://www.sec.gov/Archives/edgar/data/1324759/000121390021027803/ea141285ex10-1_cereplast.htm)\n\n \n \n \n\n23.1\n \n[Consent\nof Independent Registered Public Accounting Firm](ex23-1.htm)\n\n \n \n \n\n31.1\n \n[Certification\nof Chief Executive Officer pursuant to Rule 13a-14 or Rule 15d-14 of Securities Exchange Act of 1934.](ex31-1.htm)\n\n \n \n \n\n32.1\n \n[Certification\nof Chief Executive Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).](ex32-1.htm)\n\n \n \n \n\n101.INS\n \nInline\nXBRL Instance Document\n\n101.SCH\n \nInline\nXBRL Taxonomy Extension Schema\n\n101.CAL\n \nInline\nXBRL Taxonomy Extension Calculation\n\n101.DEF\n \nInline\nXBRL Taxonomy Extension Definition\n\n101.LAB\n \nInline\nXBRL Taxonomy Extension Label\n\n101.PRE\n \nInline\nXBRL Taxonomy Extension Presentation\n\n104\n \nInline\nXBRL for the cover page of this Annual Report on Form 10-K, included in the Exhibit 101 Inline XBRL Document Set.\n\n \n\n*\nPreviously\nfiled\n\n \n\n16\n\n \n\n \n\n**SIGNATURES**\n\n \n\nPursuant\nto the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed\non its behalf by the undersigned, thereunto duly authorized.\n\n \n\nDate:\nMay 8, 2026\nBy:\n*/s/\nLi Xudong*\n\n \n \nLi\nXudong\n\n \n \n\nChief\nExecutive Officer\n\n(Principal\nExecutive Officer\n\n \n\nIn\naccordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities\nindicated on May 8, 2026\n\n \n\nSignature\n \nTitle\n\n \n \n \n\n*/s/\nLi Xudong*\n \nChief\nExecutive Officer and a Director\n\nLi\nXudong\n \n(Principal\nExecutive Officer)\n\n \n \n \n\n*/s/\nZhang Haosong*\n \nDirector\n\nZhang\nHaosong\n \n \n\n \n\n17\n\n \n\n \n\n**ALOBA,\nAWOMOLO & PARTNERS**\n\n**(Chartered\nAccountants)**\n\nFloor\n4, Providence Court, Ajibade Bus Stop, Beside CocaCola Ibadan, Oyo State, Nigeria\n\nTel:\n08055439586, 08034725835\n\nEmail:\naudits@alobaawomolo.org; alobaawomolopartners@gmail.com; website: www.alobaawomolo.org\n\n \n\n \n\nREPORT\nOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\n\n \n\nTo\nthe Board of Directors and Stockholders of Hong Yuan Holding Group\n\n \n\n**Opinion\non the Financial Statements**\n\n \n\nWe\nhave audited the accompanying balance sheet of Hong Yuan Holding Group (the Group) as of December 31, 2025, and the related\nstatements of income, stockholders’ equity, and cash flows for the period ended December 31, 2025, and the related notes\n(collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all\nmaterial respects, the financial position of the Group as of December 31, 2025, and the results of its operations and its cash flows\nfor the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of\nAmerica.\n\n \n\n**Substantial\nDoubt about the Group’s Ability to Continue as a Going Concern**\n\n \n\nThe accompanying consolidated financial statements have been prepared on a going concern basis. For the year ended December 31, 2025,\nthe Group generated revenue; however, it incurred a net loss, reported negative operating cash flows, and had a working capital deficit\nas of year-end. These conditions raise substantial doubt about the Group’s ability to meet its obligations as they fall due within\none year after the financial statements are issued. Management’s plans to address these conditions, including raising additional\nfunding and improving operating performance, are disclosed in the financial statements. The financial statements do not include any adjustments\nthat might result from the outcome of this uncertainty.\n\n \n\n**Basis\nfor Opinion**\n\n \n\nThese\nfinancial statements are the responsibility of the Group’s management. Our responsibility is to express an opinion on the consolidated\nGroup’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting\nOversight Board (United States) (PCAOB) and are required to be independent with respect to the Group in accordance with the U.S. federal\nsecurities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe\nconducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Group\nis not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,\nwe are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion\non the effectiveness of the Group’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur\naudits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error\nor fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding\nthe amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant\nestimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits\nprovide a reasonable basis for our opinion.\n\n \n\n**Critical\nAudit Matters**\n\n \n\nCritical\naudit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required\nto be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements\nand (2) involved our especially challenging, subjective, or complex judgments. We determined that there were no critical audit matters.\n\n \n\nAloba,\nAwomolo& Partners – PCAOB ID #7275\n\n \n\n \n\nWe\nhave served as the Group’s auditor since 2025.\n\nIbadan,\nNigeria\n\nMay 7, 2026\n\n \n\nF-1\n\n \n\n \n\n**HONG\nYUAN HOLDING GROUP**\n\n**Consolidated\nBalance Sheets**\n\n \n\n  \nDecember 31,  \nDecember 31, \n\n  \n2025  \n2024 \n\n  \n   \n  \n\nASSETS \n    \n   \n\nCurrent Assets \n    \n   \n\nCash and cash\nequivalents \n$16,747  \n$38,527 \n\nCash and cash equivalents\nunder discontinued operations \n -  \n 7,764 \n\nAccounts receivable, net \n 404,048  \n - \n\nInventory \n 34,286  \n 30,786 \n\nPrepaid expense and other\nreceivable \n 124,966  \n 27,601 \n\nCurrent assets under discontinued\noperations \n -  \n 24,338 \n\nTotal Current Assets \n 580,047  \n 129,016 \n\n  \n    \n   \n\nProperty and equipment, net of accumulated \n 209  \n 557 \n\nIntangible assets, net of accumulated \n 9,492  \n - \n\nDeferred expenses \n 11,580  \n - \n\nRight of use assets \n 9,987  \n 93,091 \n\n  \n    \n   \n\nTOTAL ASSETS \n$611,315  \n$222,664 \n\n  \n    \n   \n\nLIABILITIES AND STOCKHOLDERS’\nDEFICIT \n    \n   \n\nCurrent Liabilities \n    \n   \n\nAccounts payable and accrued\nliabilities \n$111,698  \n$36,617 \n\nOperating lease liabilities\n- Current \n 9,987  \n 73,967 \n\nDeferred revenue \n 120,652  \n - \n\nTax payable \n 11,201  \n 4,228 \n\nDue to related party \n 338,131  \n 251,887 \n\nCurrent liabilities under\ndiscontinued operations \n -  \n 5,643 \n\nTotal Current Liabilities \n 591,669  \n 372,342 \n\n  \n    \n   \n\nOperating lease liabilities\n- Noncurrent \n -  \n 19,124 \n\n  \n    \n   \n\nTOTAL LIABILITIES \n 591,669  \n 391,466 \n\n  \n    \n   \n\nCommitments and contingencies \n -  \n - \n\n  \n    \n   \n\nStockholders’ Deficit \n    \n   \n\nSeries A-1 Preferred stock: 5,000,000 shares\nauthorized; $0.001 par value 5,000,000 issued and outstanding at December 31, 2025 and 2024 \n 5,000  \n 5,000 \n\nCommon stock: 2,000,000,000 shares authorized;\n$0.001 par value 74,640,766 shares issued and outstanding at December 31, 2025 and 2024 \n 74,641  \n 74,641 \n\nAdditional Paid-in Capital \n 97,471,393  \n 97,471,393 \n\nStatutory surplus reserve \n 24,008  \n 314 \n\nAccumulated other comprehensive income \n 14,865  \n 1,478 \n\nAccumulated deficit \n (97,652,645) \n (97,784,280)\n\nTotal Hong Yuan Holding Group Stockholders’\nDeficit \n (62,738) \n (231,454)\n\nNon-controlling interests \n 82,384  \n 62,652 \n\nTotal stockholders’ deficit \n 19,646  \n (168,802)\n\nTOTAL LIABILITIES AND STOCKHOLDERS’\nDEFICIT \n$611,315  \n$222,664 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-2\n\n \n\n \n\n**HONG\nYUAN HOLDING GROUP**\n\n**Consolidated\nStatements of Operations**\n\n \n\n  \n**2025**** **** **\n**2024** \n\n  \n**Year Ended** \n\n  \n**December\n31,** \n\n  \n**2025**** **** **\n**2024** \n\n  \n   \n  \n\nRevenue \n$837,753  \n$245,572 \n\nCost of revenue \n 298,108  \n 152,675 \n\nGross\nProfit \n 539,645  \n 92,897 \n\n  \n    \n   \n\nOperating Expenses \n    \n   \n\nSelling and marketing \n 45,714  \n - \n\nGeneral and administrative \n 236,116  \n 152,343 \n\nProfessional fees \n 81,337  \n 36,855 \n\nTotal\nOperating Expenses \n 363,167  \n 189,198 \n\n  \n    \n   \n\nOperating income (loss) from continuing operations \n 176,478  \n (96,301)\n\n  \n    \n   \n\nOther Income and Expense \n    \n   \n\nInterest income \n 11  \n 18 \n\nOther income \n 200  \n 153 \n\nTotal other income  \n 211  \n 171 \n\n  \n    \n   \n\nNet Income before taxes \n 176,689  \n (96,130)\n\n  \n    \n   \n\nProvision for income taxes \n 12,905  \n 307 \n\n  \n    \n   \n\nIncome (loss) from continuing\noperations \n 163,784  \n (96,437)\n\n  \n    \n   \n\nDiscontinued operations \n    \n   \n\nLoss from discontinued operation \n (3,026) \n - \n\nLoss on deconsolidation of the discontinued\noperations \n (2,814) \n - \n\nLoss from discontinued operations,\nnet of tax benefits \n (5,840) \n - \n\n  \n    \n   \n\nNet Income (loss) \n$157,944  \n$(96,437)\n\nNet income (loss) attributable\nto non-controlling interests \n 2,615  \n 2,407 \n\nNet income (loss) attributable\nto Hong Yuan Holding Group \n 155,329  \n (98,844)\n\n  \n    \n   \n\nOther comprehensive income (loss) \n 13,387  \n (242)\n\n  \n    \n   \n\nComprehensive Income (loss) \n$168,716  \n$(99,086)\n\n  \n    \n   \n\nBasic and dilutive net income (loss) per common\nshare \n$0.00  \n$(0.00)\n\n  \n    \n   \n\nWeighted average number of common shares outstanding\n- basic and diluted \n 74,640,766  \n 74,640,766 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-3\n\n \n\n \n\n**HONG\nYUAN HOLDING GROUP**\n\n**Consolidated\nStatements of Stockholders’ Deficit**\n\n \n\n  \n\n**Number\nof**\n\n**Shares**\n  \nPar\nValue  \n\n**Number\nof**\n\n**Shares**\n  \nPar\nValue  \nPaid-in\n\nCapital  \nsurplus\nreserve  \nComprehensive\nIncome (Loss)  \n\nAccumulated\n\nDeficit\n  \n\ncontrolling\n\nInterests\n  \n\nStockholders’\n\nDeficit\n \n\n  \nPreferred\nStock  \nCommon\nStock  \nAdditional  \nStatutory  \n\nAccumulated\n\nOther\n\n  \n  \nNon-  \n\nTotal\n\n \n\n  \n\n**Number\nof**\n\n**Shares**\n  \nPar\nValue  \n\n**Number\nof**\n\n**Shares**\n  \nPar\nValue  \nPaid-in\n\nCapital  \nsurplus\nreserve  \nComprehensive\nIncome (Loss)  \n\nAccumulated\n\nDeficit\n  \n\ncontrolling\n\nInterests\n  \n\nStockholders’\n\nDeficit\n \n\n  \n   \n   \n   \n   \n   \n   \n   \n   \n   \n  \n\nBalance - December 31, 2023 \n   5,000,000  \n$5,000  \n 74,640,766  \n$74,641  \n$97,466,278  \n$-  \n$1,720  \n$(97,685,122) \n$-  \n$  (137,483)\n\nAcquisition of subsidiary\nunder common control \n -  \n -  \n -  \n -  \n (64,103) \n -  \n -  \n -  \n -  \n (64,103)\n\nConsolidation of VIE with\nnon-controlling interests \n -  \n -  \n -  \n -  \n 69,218  \n -  \n -  \n -  \n 60,211  \n 129,429 \n\nNet loss \n -  \n -  \n -  \n -  \n -  \n 314  \n -  \n (99,158) \n 2,407  \n (96,437)\n\nAccumulated\nother comprehensive income \n -  \n -  \n -  \n -  \n -  \n -  \n (242) \n -  \n 34  \n (208)\n\nBalance - December\n31, 2024 \n 5,000,000  \n$5,000  \n 74,640,766  \n$74,641  \n$97,471,393  \n$314  \n$1,478  \n$(97,784,280) \n$62,652  \n$(168,802)\n\n \n\n  \n   \n   \n   \n   \n   \n  \nAccumulated  \n   \n   \n \n\n  \nPreferred\nStock  \nCommon\nStock  \nAdditional  \nStatutory  \nOther  \n  \nNon-  \nTotal \n\n  \n\n**Number\nof**\n\n**Shares**\n  \nPar\nValue  \n\n**Number\nof**\n\n**Shares**\n  \nPar\nValue  \nPaid-in\n\nCapital  \n\nsurplus\n\nreserve\n  \n\nComprehensive\n\nIncome\n(Loss)\n  \n\nAccumulated\n\nDeficit\n  \n\ncontrolling\n\nInterests\n  \n\nStockholders’\n\nDeficit\n \n\n  \n   \n   \n   \n   \n   \n   \n   \n   \n   \n  \n\nBalance - December 31, 2024 \n   5,000,000  \n$5,000  \n 74,640,766  \n$74,641  \n$97,471,393  \n$314  \n$1,478  \n$(97,784,280) \n$62,652  \n$  (168,802)\n\nBalance \n   5,000,000  \n$5,000  \n 74,640,766  \n$74,641  \n$97,471,393  \n$314  \n$1,478  \n$(97,784,280) \n$62,652  \n$  (168,802)\n\nDeconsolidation of the\ndiscontinued operations \n -  \n -  \n -  \n -  \n -  \n 23,694  \n -  \n (23,694) \n -  \n - \n\nNet loss \n -  \n -  \n -  \n -  \n -  \n -  \n -  \n 155,329  \n 2,615  \n 157,944 \n\nAccumulated other comprehensive\nincome \n -  \n -  \n -  \n -  \n -  \n -  \n 13,387  \n -  \n 17,117  \n 30,504 \n\nBalance - December 31, 2025 \n 5,000,000  \n$5,000  \n 74,640,766  \n$74,641  \n$97,471,393  \n$24,008  \n$14,865  \n$(97,652,645) \n$82,384  \n$19,646 \n\nBalance \n 5,000,000  \n$5,000  \n 74,640,766  \n$74,641  \n$97,471,393  \n$24,008  \n$14,865  \n$(97,652,645) \n$82,384  \n$19,646 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-4\n\n \n\n** **\n\n**HONG\nYUAN HOLDING GROUP**\n\n**Consolidated\nStatements of Cash Flows**\n\n \n\n  \n2025  \n2024 \n\n  \nYear Ended \n\n  \nDecember\n31, \n\n  \n2025  \n2024 \n\n  \n   \n  \n\nCASH FLOWS FROM OPERATING\nACTIVITIES \n    \n   \n\nNet Income\n(loss) \n$163,783  \n$(96,437)\n\nNet (loss) from discontinued\noperations \n (5,839) \n - \n\nAdjustments to reconcile\nnet income to net cash provided by operating activities: \n    \n   \n\nDepreciation and amortization \n 1,614  \n 1,356 \n\nLease expense \n 39,068  \n 58,535 \n\nChanges in operating assets\nand liabilities: \n    \n   \n\nAccounts receivable \n (372,088) \n (11,540)\n\nInventory \n (2,093) \n (44,378)\n\nPrepaid expense and other\nreceivable \n (93,555) \n (16,891)\n\nAccounts payable and accrued\nliabilities \n 69,726  \n 36,418 \n\nDeferred revenue \n 117,389  \n - \n\nOperating lease payment \n (39,068) \n (58,535)\n\nTax payable \n 8,425  \n 4,281 \n\nDue to related party \n 86,243  \n 37,609 \n\nNet Cash Provided by Operating Activities from\nContinuing Operations \n (26,395) \n (89,582)\n\nNet Cash Used in Operating Activities from\nDiscontinued Operations \n (2,045) \n - \n\nNet Cash (Used in) Operating Activities \n (28,440) \n (89,582)\n\n  \n    \n   \n\nCASH FLOWS FROM INVESTING\nACTIVITIES \n    \n   \n\nDeferred renovation expenses \n (12,519) \n - \n\nDevelopment cost of\nintangible assets \n (9,236) \n - \n\nNet Cash (Used in) Investing Activities \n (21,755) \n - \n\n  \n    \n   \n\nCASH FLOWS FROM FINANCING\nACTIVITIES \n    \n   \n\nProceeds from capital contribution \n 5,565  \n 130,634 \n\nCapital contribution from\nnon-controlling interests \n 13,913  \n - \n\nNet Cash Provided by Financing Activities \n 19,478  \n 130,634 \n\n  \n    \n   \n\nEFFECT OF EXCHANGE RATE CHANGE ON CASH &\nCASH EQUIVALENTS \n 1,173  \n (744)\n\n  \n    \n   \n\nNet change in cash and cash equivalents \n (29,544) \n 40,308 \n\nCash and cash equivalents, beginning of period \n 46,291  \n 5,983 \n\nCash and cash equivalents, end of period \n$16,747  \n$46,291 \n\n  \n    \n   \n\nSUPPLEMENTAL CASH FLOW INFORMATION: \n    \n   \n\nCash paid for income taxes \n$6,301  \n$- \n\nCash paid for interest \n$-  \n$- \n\n  \n    \n   \n\nNON-CASH INVESTING AND FINANCING\nACTIVITIES \n    \n   \n\nRight of use asset and\nrelated liability \n$(47,264) \n$148,401 \n\nAcquisitions of subsidiary\nunder common control \n$-  \n$64,103 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-5\n\n \n\n \n\n**HONG\nYUAN HOLDING GROUP**\n\n**NOTES\nTO FINANCIAL STATEMENTS**\n\n \n\n**Note\n1 – Organization**\n\n \n\nHong\nYuan Holding Group (“We”, “the Company”, “Hong Yuan”) was incorporated on September 29, 2001 in the\nState of Nevada under the name of Biocorp North America Inc. On March 18, 2005, we filed an amendment to our certificate of incorporation\nto change our name to Cereplast, Inc.\n\n \n\nOn\nFebruary 10, 2014, the Company, filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Bankruptcy Code\nin the United States Bankruptcy Court for the Southern District of Indiana (the “Bankruptcy Court “). On February 14, 2014,\nthe Company filed a motion in the Bankruptcy Court seeking to convert the Company’s Chapter 11 Case to a Chapter 7 bankruptcy case.\nOn March 27, 2014, the court granted the Company’s motion and on that date the Company’s Chapter 11 Case was converted to\na Chapter 7 case. As a result, the Company adopted liquidation basis of accounting on the discontinued operations according to ASC 205-30\n“Presentation of Financial Statements – Liquidation Basis of Accounting”, accordingly the accumulated deficit generated\nprior to bankruptcy proceedings remained unadjusted.\n\n \n\nOn\nJanuary 31, 2014, the Board of Directors of Cereplast, Inc. (the “Company”) approved a 1-for-50 reverse split (the “Reverse\nSplit) which was previously approved by the shareholders on April 5, 2013 and previously disclosed on Current Report Form 8-K filed on\nApril 5, 2013.\n\n \n\nOn\nFebruary 3, 2014, Cereplast, Inc. (the “Company”) filed a Certificate of Amendment to its Articles of Incorporation to effect\nthe reverse split (the “Reverse Split”), effective as of February 21, 2014.\n\n \n\nOn\nMarch 22, 2019, the eight judicial District Court of Nevada appointed Custodian Ventures, LLC as custodian for Cereplast, Inc., proper\nnotice having been given to the officers and directors of Cereplast, Inc. There was no opposition.\n\n \n\nOn\nJune 04, 2019, the Company filed a certificate of revival with the state of Nevada, appointing David Lazar as, President, Secretary,\nTreasurer and Director.\n\n \n\nA\nchange of control of the Company was completed on November 3, 2020, control was obtained by the sale of 50,000,000 common shares and\n$5,000,000 Series A-1 Preferred Shares from Custodian Ventures, LLC to Xudong Li. After November 3, 2020, the Company’s operations\nare determined and structured by the new major shareholder.\n\n \n\nOn\nNovember 18, 2020, the Company filed an amendment to its certificate of incorporation to change its name to Hong Yuan Holding Group.\n\n \n\nThe\nCompany is a development stage enterprise devoting substantial efforts to establishing a new business, financial planning, raising capital,\nand research into products which may become part of the Company’s product portfolio. The Company has not realized significant sales\nsince inception. A development stage company is defined as one in which all efforts are devoted substantially to establishing a new business\nand, even if planned principal operations have commenced, revenues are insignificant.\n\n \n\nOn\nOctober 1, 2024, The Company entered into an agreement to acquire from Xudong Li (the majority shareholder of the Company) 100% equity\ninterest of Hongyuan International Holding Group Co., Ltd. (“Hongyuan HK”) in exchange for HK $500,000 (approximately $64,103)\nor issuing the equivalent value of the Company’s common stocks, payable upon the completion of changing registered owner with the\nAdministration for Industrial and Commerce. Hongyuan HK was established in Hong Kong on July 28, 2021.\n\n \n\nF-6\n\n \n\n \n\nAlso\non October 1, 2024, Hongyuan HK entered into a series of agreements including a Shareholders’ Voting Rights Entrustment Agreement,\nan Exclusive Management Consulting and Service Agreement and a Share Pledge Agreement (collectively the “Agreements”) with\nFengcuiyuan Chang Technology Development Co., Ltd (“Fengcuiyuan”) and its registered owners (the “Transaction”).\nFengcuiyuan is a corporation formed under the laws of the PRC on September 3, 2021, in which Xudong Li (the majority shareholder of the\nCompany) controls 95% of its equity interest. Fengcuiyuan owns 98% of Rongcheng (Sichuan) Supply Chain Management Co., Ltd (“Rongcheng”),\na corporation formed under the laws of the PRC located in Chengdu, Sichuan, China, incorporated on April 17, 2024. On November 12, 2024,\nChongqing Xuchang Qingrong Trading Co., Ltd. (“Xuchang”) located in Chongqing, Sichuan, China, was formed as a 55% subsidiary\nof Rongcheng.\n\n \n\nAccording\nto the Agreements, Hongyuan HK assumed financial and operating control of Fengcuiyuan. As a result, Hongyuan HK has been determined to\nhave a controlling financial interest in Fengcuiyuan, requiring Hongyuan HK to consolidate the financial statements of Fengcuiyuan and\nits subsidiaries, and ultimately consolidate with its parent company, Hong Yuan. The Transaction was accounted for as a reorganization\nof entities under common control. As the combining entities have been under common control since September 2021, the consolidated financial\nstatements of the Company recognized the assets and liabilities received in the reorganization at their historical carrying amounts,\nas reflected in the historical financial statements of each entity.\n\n \n\nThe\nCompany, through its subsidiary and the Agreements with Fengcuiyuan, focuses on supply chain management services, is mainly engaged in\nthe wholesale and internet sales of fast-moving consumer goods such as food, daily necessities, and electronic products, covering diversified\nfields such as pre-packaged food, agricultural and by-products, and household goods.\n\n \n\nIn\nApril 2025, the Company changed its business model. Rongcheng relinquished its 55% ownership in Xuchang and received its original investment\nback, but will still fund the opening of stores operated by Xuchang. In the future, the investment funds for stores will be recovered\nas loans from the stores’ profits. As a result, Xuchang was deconsolidated from the Company’s consolidated financial statements\nstarting in the second quarter of 2025 and Xuchang’s operating results prior to the deconsolidation was accounted for as discontinued\noperations.\n\n \n\nThe\naccompanying financial statements have been prepared assuming the continuation of the Company as a going concern. The Company has not\nyet established an ongoing source of revenues sufficient to cover its operating costs and is dependent on debt and equity financing to\nfund its operations. Management of the Company is making efforts to raise additional funding until a registration statement relating\nto an equity funding facility is in effect. While management of the Company believes that it will be successful in its capital formation\nand planned operating activities, there can be no assurance that the Company will be able to raise additional equity capital, or be successful\nin the development and commercialization of the products it develops or initiates collaboration agreements thereon. The accompanying\nfinancial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of\nassets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going\nconcern.\n\n \n\n**Note\n2 – Summary of significant accounting policies**\n\n \n\n**Basis\nof Presentation**\n\n \n\nThis\nsummary of significant accounting policies of the Company (a development stage company) is presented to assist in understanding the Company’s\nfinancial statements. These accounting policies conform to accounting principles generally accepted in the United States of America and\nhave been consistently applied in the preparation of the accompanying financial statements. The Company has realized insignificant revenues\nfrom its planned principal business purpose and, accordingly, is considered to be in its development stage in accordance with Financial\nAccounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 915 (SFAS No. 7). The\nCompany has elected a fiscal year end of December 31.\n\n \n\n**Principles\nof Consolidation**\n\n \n\nThe\nconsolidated financial statements include the accounts of the Company, its subsidiary and variable interest entity (“VIE”)\nfor which the Company is the primary beneficiary. All inter-company accounts and transactions have been eliminated in consolidation.\n\n \n\nIn\ndetermining Fengcuiyuan is a VIE of Hongyuan HK, the Company considered the following indicators, among others:\n\n \n\n1.\nHongyuan\nHK enjoys exclusive and non-competitive rights to intellectual property rights and licensing arising from the performance of the\nAgreements, and controls and administers the financial affairs and daily operation of Fengcuiyuan. The registered owners of Fengcuiyuan\nas a group have no right to make any decision about Fengcuiyuan’s activities without the consent of Hongyuan HK.\n\n2.\nHongyuan\nHK is assigned all voting rights of Fengcuiyuan and has the right to appoint all directors and senior management personnel of Fengcuiyuan.\nThe registered owners of Fengcuiyuan possess no substantive voting rights.\n\n3.\nThe\nregistered owners of Fengcuiyuan have pledged their shares in Fengcuiyuan as collateral to secure these Agreements.\n\n4.\nThe\nAgreements are valid for 10 years. Termination is prohibited by Fengcuiyuan and its registered owners, making termination within\nthe control of the Company.\n\n5.\nHongyuan\nHK is entitled to a management consulting and service fee based on the workload and commercial value of the technical services provided\nat a price agreed upon by both parties, has the right to adjust the consulting service fee standards at any time based on the quantity\nand content of the services provided to Fengcuiyuan. Therefore, Hongyuan HK is the primary beneficiary of Fengcuiyuan.\n\n \n\n**Use\nof Estimates**\n\n \n\nThe\npreparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates\nand assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the\ndate of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ\nsignificantly from those estimates.\n\n \n\nF-7\n\n \n\n \n\n**Cash\nand Cash Equivalents**\n\n \n\nFor\npurposes of reporting within the statements of cash flows, the Company considers all cash on hand, cash accounts not subject to withdrawal\nrestrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash and cash\nequivalents.\n\n \n\n**Property\nand Equipment**\n\n \n\nProperty\nand equipment are stated at cost less accumulated depreciation. Major repairs and betterments that significantly extend original useful\nlives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred.\nWhen property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the\nrespective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line\nmethod for substantially all assets with estimated lives as follows:\n\nSchedule\nof Estimated Useful Lives of Property and Equipment\n\nMachinery\n& equipment\n \n10\nyears\n\nAutomobile\n \n4\nyears\n\nOffice\nequipment\n \n3\nyears\n\n \n\nLease\n\n \n\nASC\nTopic 842, *“Leases”* requires recognition of leases on the balance sheets as right-of-use (“ROU”) assets\nand lease liabilities. ROU assets represent the Company’s right to use underlying assets for the lease terms and lease liabilities\nrepresent the Company’s obligation to make lease payments arising from the leases. Operating lease ROU assets and operating lease\nliabilities are recognized based on the present value and future minimum lease payments over the lease term at commencement date. The\nCompany’s future minimum lease payments used to determine the Company’s lease liabilities mainly include minimum lease rent\npayments. Leases with a lease term of 12 months or less at inception are not recorded on the Company’s balance sheet and are expensed\non a straight-line basis over the lease term in the Company’s statement of operations. As most of the Company’s leases do\nnot provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at commencement\ndate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based\non its understanding of what its credit rating would be.\n\n \n\n**Stock-Based\nCompensation**\n\n \n\nThe\nCompany accounts for stock-based compensation in accordance with ASC 718 Compensation - Stock Compensation (“ASC 718”). ASC\n718 addresses all forms of share-based payment (“SBP”) awards including shares issued under employee stock purchase plans\nand stock incentive shares. Under ASC 718 awards result in a cost that is measured at fair value on the awards’ grant date, based\non the estimated number of awards that are expected to vest and will result in a charge to operations.\n\n \n\n**Loss\nper Share**\n\n \n\nBasic\nearnings (loss) per share are computed by dividing income available to common shareholders by the weighted-average number of common shares\navailable. Diluted earnings (loss) per share is computed similar to basic earnings per share except that the denominator is increased\nto include the number of additional common shares that would have been outstanding if the potential common shares had been issued and\nif the additional common shares were dilutive. The Company’s diluted loss per share is the same as the basic loss per share for\nthe years ended December 31, 2025 and 2024, as there are no potential shares outstanding that would have a dilutive effect.\n\n \n\n**Income\nTaxes**\n\n \n\nIncome\ntax expense is based on pretax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences\nof temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded\nto reduce deferred tax assets to the amount that will more likely than not be realized. The Company recorded a valuation allowance against\nits deferred tax assets as of December 31, 2025 and 2024.\n\n \n\nThe\nCompany accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The\nfirst step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more\nlikely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any.\nThe second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The\nCompany classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt)\nof cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.\n\n \n\nF-8\n\n \n\n \n\n**Note\n3 - Going Concern**\n\n \n\nThe\naccompanying financial statements have been prepared assuming the continuation of the Company as a going concern. The Company has not\nyet established an ongoing source of revenues sufficient to cover its operating costs and is dependent on debt and equity financing to\nfund its operations. Management of the Company is making efforts to raise additional funding until a registration statement relating\nto an equity funding facility is in effect. While management of the Company believes that it will be successful in its capital formation\nand planned operating activities, there can be no assurance that the Company will be able to raise additional equity capital or be successful\nin the development and commercialization of the products it develops or initiates collaboration agreements thereon. The accompanying\nfinancial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of\nassets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going\nconcern.\n\n \n\n**Note\n4 - Property and Equipment**\n\n \n\nProperty\nand equipment consist of:\n\nSchedule\nof Property and Equipment\n\n  \nDecember 31,  \nDecember 31, \n\n  \n2025  \n2024 \n\n  \n   \n  \n\nOffice Equipment \n$4,186  \n$4,011 \n\nTotal \n 4,186  \n 4,011 \n\nLess: accumulated depreciation \n (3,977) \n (3,454)\n\n  \n    \n   \n\nProperty and equipment, net \n$209  \n$557 \n\n \n\n**Note\n5 – Intangible assets**\n\n \n\nIntangible\nassets include development costs incurred relating to internal-use software.\n\n** **\n\n**Note\n6 – Leases**\n\n \n\nOn\nApril 10, 2024, Fengcuiyuan entered into an operating lease agreement to rent an office. The lease has an original term of 2 years expiring\nApril 24, 2026.\n\n \n\nBalance\nsheet information related to the Company’s leases is presented below:\n\nSchedule\nof Balance Sheet Information Related to Company’s Leases\n\n  \n\n**December\n31**\n\n**2025**\n \n\nOperating Leases \n   \n\nOperating lease right-of-use assets \n$9,987 \n\n  \n   \n\nOperating lease liabilities - current \n 9,987 \n\nOperating lease liability – non-current \n - \n\nTotal operating lease liabilities \n$9,987 \n\n \n\nThe\nfollowing provides details of the Company’s lease expenses:\n\nSchedule\nof Company’s Lease Expenses\n\n  \n2025  \n2024 \n\n  \nYear\nEnded December 31, \n\n  \n2025  \n2024 \n\nOperating lease expense \n$39,068  \n$- \n\n \n\nOther\ninformation related to leases is presented below:\n\nSchedule\nof Other Information Related to Leases\n\n  \nYear Ended \n\n  \nDecember\n31, 2025 \n\nCash Paid For Amounts Included\nIn Measurement of Liabilities: \n   \n\nOperating cash flows from operating\nleases \n$39,068 \n\n  \n   \n\nWeighted Average Remaining Lease Term: \n   \n\nOperating leases \n 0.32\nyears \n\n  \n   \n\nWeighted Average Discount Rate: \n   \n\nOperating leases \n 5.6%\n\n \n\nMaturities\nof lease liabilities were as follows:\n\nSchedule\nof Maturities of Lease Liabilities\n\nFor the 12 months ending December 31: \n  \n\n2026 \n 10,038 \n\nTotal lease payments \n 10,038 \n\nLess: imputed interest \n (51)\n\nTotal lease liabilities \n 9,987 \n\nLess: current portion \n (9,987)\n\nLease liabilities\n– non-current portion \n$- \n\n \n\nF-9\n\n \n\n \n\n**Note\n7 – Related party transaction**\n\n \n\nDuring\nthe year ended December 31, 2025, the Company’s current majority shareholder advanced $86,244 to the Company as working capital.\nAs of December 31, 2025 and 2024, the Company owed its current majority shareholder of $338,131 and $251,887, respectively, including\n$64,103 for acquisition of Hongyuan HK. The advances are non-interest bearing and are due on demand.\n\n \n\n**Note\n8 – Common stock**\n\n \n\nAt\nDecember 31, 2025, the Company is authorized to issue 2,000,000,000 shares of $0.001 par value common stock.\n\n \n\nAs\nof December 31, 2025, a total of 74,640,766 shares of common stock with par value $0.001 remain outstanding.\n\n \n\n**Note\n9 – Preferred stock**\n\n \n\nAs\nof December 31, 2025, a total of 5,000,000 shares of Series A-1 preferred stock with par value $0.001 remain outstanding.\n\n \n\n**Note\n10 – Income Taxes**\n\n \n\nThe\nCompany is subject to taxation in the United States (USA) and its subsidiaries were incorporated in China and are governed by the Income\nTax Law of China.\n\n \n\nDeferred\ntaxes represent the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial\nreporting purposes. Temporary differences result primarily from the recording of tax benefits of net operating loss carry forwards.\n\n \n\nAs\nof December 31, 2025, the Company has an insufficient history to support the likelihood of ultimate realization of the benefit associated\nwith the deferred tax asset. Accordingly, a valuation allowance has been established for the full amount of the net deferred tax asset.\n\n \n\nThe\nprovision for income taxes consists of the following:\n\nSchedule of Provision for Income Taxes\n\n  \n2025  \n2024 \n\n  \nYear\nEnded December 31, \n\n  \n2025  \n2024 \n\nCurrent: \n   \n  \n\nUSA \n$-  \n$- \n\nChina \n 12,905  \n 307 \n\n  \n    \n   \n\nDeferred: \n    \n   \n\nUSA \n -  \n - \n\nChina \n -  \n - \n\n  \n    \n   \n\nProvision for income taxes \n$12,905  \n$307 \n\n \n\nF-10\n\n \n\n \n\nThe\nCompany’s effective income tax rate differs from the amount computed by applying the federal statutory income tax rate to loss\nbefore income taxes for the years ended December 31, 2025 and 2024 as follows:\n\n  Schedule of Effective Income Tax Rate Reconciliation\n\n  \n2025  \n2024 \n\n  \nYear\nEnded December 31, \n\n  \n2025  \n2024 \n\n  \n   \n  \n\nIncome tax benefit at federal\nstatutory rate (21%) \n$37,105  \n$(20,187)\n\nDifference in foreign income tax rates \n (41,948) \n 12,307 \n\nChange in valuation allowance \n 17,748  \n 8,187 \n\nProvision for income taxes \n$12,905  \n$307 \n\n \n\nThe\ncomponents of deferred taxes consist of the following at December 31, 2025 and 2024:\n\nSchedule of Deferred Tax Assets and Liabilities  \n\n  \n\n**December\n31,**\n\n**2025**\n  \n\n**December\n31,**\n\n**2024**\n \n\n  \n   \n  \n\nNet operating loss carryforwards \n$20,483,488  \n$20,465,740 \n\nLess: valuation allowance \n (20,483,488) \n (20,465,740)\n\nNet deferred tax assets \n$-  \n$- \n\n \n\nUncertain\nTax Positions\n\n \n\nInterest\nassociated with unrecognized tax benefits is classified as income tax, and penalties are classified as selling, general, and administrative\nexpenses in the statements of operations. As of December 31, 2024, and 2025, the Company had no unrecognized tax benefits and related\ninterest and penalty expenses. Currently, the Company is not subject to examination by major tax jurisdictions.\n\n \n\n**Note\n11 – Discontinued operations**\n\n \n\nIn\nApril 2025, the Company changed its business model. Rongcheng relinquished its 55% ownership in Xuchang and received its original investment\nback, but will still fund the opening of stores operated by Xuchang. In the future, the investment funds for stores will be recovered\nas loans from the stores’ profits. As a result, Xuchang was deconsolidated from the Company’s consolidated financial statements\nstarting in the second quarter of 2025 and Xuchang’s operating results prior to the deconsolidation was accounted for as discontinued\noperations. The Company recorded a loss on deconsolidation of the discontinued operations of $2,788 in the second quarter of 2025.\n\n \n\nThe\nCompany has reclassified its previously issued financial statements to segregate the discontinued operations as of the earliest period\nreported.\n\n \n\n**Note\n12 – Subsequent Event**\n\n \n\nIn\naccordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial\nstatements were available to be issued, and has determined that it does not have any material subsequent events to disclose in these\nfinancial statements.\n\n \n\nF-11"}