Yinfu Gold Corporation Reports Net Income of $29,444, Sees Significant Debt Reduction

Yinfu Gold Corporation reported a net income of $29,444 for the fiscal year ending March 31, 2025, a significant improvement compared to a net loss of $65,461 in the previous year. The company has not generated any revenue during this period, maintaining a consistent trend from the previous year. Total operating expenses increased slightly to $87,399 from $82,877, primarily due to higher professional fees. The company’s total assets decreased to $22,443 from $25,860, while total liabilities saw a substantial reduction from $2,656,537 to $517,459, largely due to the forgiveness of debt by a related party amounting to $2,103,762.

In terms of strategic developments, Yinfu Gold Corporation raised $120,000 through a private placement of 120 million shares in February 2023, which has been earmarked for working capital. The company has also undergone significant organizational changes, including the appointment of Mr. Zhang Hong as the new president and CEO effective May 19, 2025, following the resignation of Mr. Jiang Libin. This leadership transition is part of the company's ongoing efforts to adapt to its evolving business model, which now focuses on Internet Technology, Artificial Intelligence, and the Internet of Things.

Operationally, the company has three employees and plans to hire up to 20 additional staff members in the next year as it seeks to expand its operations. The company’s cash balance as of March 31, 2025, was $440, a slight decrease from $488 the previous year. The working capital deficiency improved to $495,704 from $2,631,139, reflecting the significant reduction in liabilities. However, the company continues to face challenges in generating sufficient cash flow from operations, relying heavily on funding from related parties.

Looking ahead, Yinfu Gold Corporation acknowledges the need for additional capital to sustain its operations and execute its business plan. The company has expressed uncertainty regarding its ability to secure adequate funding in the future, which raises concerns about its ability to continue as a going concern. Management's plans to address these challenges include potential sales of equity instruments and traditional financing options. The company’s financial statements indicate that if it cannot secure the necessary capital, it may be forced to cease operations, which could adversely affect shareholders.

Overall, while Yinfu Gold Corporation has made strides in reducing its liabilities and improving its financial position, it remains in a precarious situation with no current revenue and ongoing reliance on external funding. The company’s future will depend on its ability to generate revenue and secure additional capital to support its operations and growth initiatives.