I personally do not like how the report is written. It appears intentionally confusing and poorly worded. The leased building space, lack of staff role break down. The one sentence that supposedly breaks down all of their assets.. for a company that was supposed to originally have 140m in revenue, transparency is not their strong suit.
Specifically regarding the numbers though, just compare the Q1 and Q2 reports side by side.
Cash went up by 263,094.
Notes Receivable increased by 64,774.
Accounts receivable we up by 94,933.
Inventory increased by 191,719.
Net Fixed Assets increased by 491,732.
Other receivables decreased by 468,943.
And prepaid expenses went up by 74,144.
Ignoring how Net Fixed assets managed to increase by almost a half a million dollars when in their own clarification, their assets only equal 5m yuan in the first place (728k usd) The rest of the numbers are too small for being impacted by covid. China was one of the first countries to resume day to day activity, which was in full swing in Q2. We should have seen a dramatic spike if the Q1 numbers were in fact low due to covid. What this tells me is that the company just straight up lied about their revenue as a way to drive up the price to that initial .68$
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