Zhanling International Reports Continued Losses and Financial Strain for Three and Nine Months Ended February 28, 2025

Zhanling International Ltd reported its financial results for the three and nine months ended February 28, 2025, revealing a continued lack of revenue generation and ongoing operational losses. The company recorded a net loss of $7,595 for the three months and $24,161 for the nine months, compared to losses of $10,848 and $21,399, respectively, in the same periods of the previous fiscal year. The decrease in quarterly losses reflects a reduction in general and administrative expenses, which fell by 30% to $7,595 from $10,848, while expenses for the nine-month period increased by 13% to $24,161 from $21,399.

The company's financial position has deteriorated, with total assets remaining at $4,465 as of February 28, 2025, unchanged from the previous fiscal year. However, total liabilities surged to $37,000 from $8,540, primarily due to an increase in amounts due to related parties, which rose to $32,985 from $3,342. This has resulted in a stockholders' deficit of $32,535, up from $8,374, and an accumulated deficit of $414,371, indicating significant financial strain.

Zhanling International continues to operate as a development-stage company with no revenues, focusing on potential mergers or acquisitions within the large consumption platform in China. The company has not engaged in any significant operational activities since its inception in 2009 and has no current plans to generate revenue until it successfully implements its business strategy. The management has indicated that it plans to seek additional capital through private placements of common stock or loans from directors to support its operations.

The company’s liquidity remains a concern, as it reported no cash on hand and a net cash used in operating activities of $30,336 for the nine months ended February 28, 2025, compared to $17,799 in the prior year. Financing activities provided $30,336 during the same period, primarily from loans advanced by the director, Mr. YongQing Liu. The company has acknowledged that it does not have sufficient cash to fund its operational expenses beyond the next 12 months, raising substantial doubt about its ability to continue as a going concern.

Looking ahead, Zhanling International's management has expressed the need to raise funds to commence its exploration program and cover ongoing operational expenses. The company has not established any financing arrangements and cannot assure investors of its ability to raise sufficient capital. The lack of operational revenue and the ongoing financial losses underscore the challenges facing the company as it seeks to navigate its future business endeavors.