Zhanling International Reports Increased Net Loss and Improved Stockholders' Equity

Zhanling International Ltd reported its financial results for the three months ending August 31, 2025, revealing a net loss of $8,126, compared to a net loss of $5,970 for the same period in 2024. The company's total operating expenses increased by 36% to $8,126, primarily due to professional fees associated with disclosure and news service applications. The company has not generated any revenue during this period, consistent with its ongoing status as a development-stage entity focused on potential mergers or acquisitions.

The financial position of Zhanling International showed a significant change in stockholders' equity, with a reduction in the stockholders' deficit from $48,231 as of May 31, 2025, to $22,679 as of August 31, 2025. This improvement was attributed to the issuance of 3,441,000 shares of common stock, which settled $33,678 of accounts payable, including $32,985 owed to the company's Chief Executive Officer, YongQing Liu. The total liabilities decreased from $48,397 to $23,729, reflecting a reduction in both current and non-current liabilities.

Operationally, Zhanling International has not reported any significant customer counts or user statistics, as it remains in the early stages of its business development. The company has not expanded geographically or launched new products, focusing instead on evaluating potential business opportunities. The employee headcount remains unchanged, with no new hires reported during the quarter. The company continues to rely on advances from related parties, with $10,353 received from CEO YongQing Liu during the reporting period.

Management has expressed concerns regarding the company's ability to continue as a going concern, given its accumulated deficit of $438,193 and the lack of operational revenue. The company plans to seek additional capital through private placements of its common stock and loans from directors to meet its operational expenses. However, there is uncertainty regarding the effectiveness of these plans, and the company has acknowledged that it may not be able to raise sufficient funds to support its business activities.

Looking ahead, Zhanling International's management remains focused on identifying and pursuing potential acquisition targets within the large consumption platform in China. However, the company has not provided specific timelines or details regarding future operational plans or expected revenues. The financial statements indicate that the company will need to secure additional funding to sustain its operations and implement its business strategy effectively.