Guochun International Reports No Revenue and Increased Losses for First Half of 2024

Guochun International Inc. reported its financial results for the three and six months ended June 30, 2024, revealing no revenue generation during these periods. The company incurred an operating loss of $5,603 for the second quarter of 2024, compared to a loss of $3,994 in the same quarter of 2023. For the first half of 2024, the total operating expenses reached $17,097, up from $11,359 in the prior year, primarily due to increased professional fees. The net loss for the six months ended June 30, 2024, was $17,097, compared to a loss of $11,359 for the same period in 2023.

The company's financial position reflects a significant decline in its equity, with total equity reported at negative $45,124 as of June 30, 2024, compared to negative $16,439 a year earlier. Guochun's cash and cash equivalents stood at $0, indicating a critical liquidity position. The company has not recognized any revenues since it ceased its previous business operations related to a messenger application in June 2022, following a change in management and ownership.

Operationally, Guochun International has not made any significant acquisitions or product launches since the management transition. The company continues to seek new business opportunities but has not yet identified any viable prospects. As of June 30, 2024, the company maintained 3,870,600 shares of common stock issued and outstanding, consistent with prior periods. The lack of revenue and ongoing losses raise substantial doubt about the company's ability to continue as a going concern.

In terms of cash flow, Guochun reported net cash used in operating activities of $17,495 for the first half of 2024, an increase from $12,783 in the same period of 2023. This increase is attributed to higher professional fees. The company received $17,495 in financing activities from advances made by its current sole officer and director, Zhou Xuan, which was also an increase from the previous year.

Looking ahead, Guochun International anticipates that it will need to secure additional investment capital to fund its operating expenses in the near future. The management has acknowledged the need for improvements in internal controls and plans to implement measures to enhance oversight and financial reporting processes. However, there is no assurance that the company will successfully identify a new business opportunity or achieve financial viability in the coming periods.