Zhanling International Reports Increased Net Loss and Financial Strain for Six Months Ending November 30, 2024

Zhanling International Ltd reported its financial results for the six months ending November 30, 2024, revealing a net loss of $16,566, compared to a loss of $10,552 for the same period in the previous year. The company did not generate any revenue during this period, consistent with its ongoing status as a development-stage entity. General and administrative expenses increased significantly, with costs rising to $16,566 from $10,552, reflecting a 57% increase year-over-year. The basic and diluted net loss per share for the six months was $0.23, compared to $0.14 in the prior year.

The company's financial position has deteriorated, with total assets reported at $8,763 as of November 30, 2024, down from $166 as of May 31, 2024. Current liabilities decreased to $3,322 from $5,198, while non-current liabilities surged to $30,381 from $3,342, primarily due to amounts owed to related parties. Zhanling's stockholders' deficit increased to $24,940, up from $8,374, indicating a growing financial strain.

Strategically, Zhanling International continues to focus on potential mergers and acquisitions, particularly targeting private entities in the large consumption platform sector in China. The company has undergone significant leadership changes, with YongQing Liu currently serving as Chief Executive Officer, President, and Chairman of the Board. The company has not engaged in any significant acquisitions or product launches during this reporting period, maintaining its focus on evaluating business opportunities.

Operationally, Zhanling has not reported any customer counts or user statistics, as it has not generated revenue or established operational activities. The company’s cash flow situation remains critical, with net cash used in operating activities amounting to $27,039 for the six months ended November 30, 2024, compared to $20,647 for the same period in 2023. The company has indicated plans to seek additional capital through private placements or loans from directors to support its operations.

Looking ahead, Zhanling International's ability to continue as a going concern is uncertain, as it has incurred significant losses and has a stockholders' deficit. The company has acknowledged the need for additional funding to support its business plan and operational expenses. Management has expressed intentions to raise capital, but there are no guarantees that sufficient funding will be secured, which raises substantial doubt about the company's future viability.