Item 2.01 Completion of Acquisition or Disposition of Assets
The economic impact of COVID-19 epidemic in the past two and a half years,
together with implementation of "Double-Reduction" educational policies which
limits operations of extracurricular learning/education centers imposed by the
government of China, have caused continual financial loss for the company. In
view of these losses, Corporation's board of directors have re-evaluated its
operation strategies, financial stability and global economic uncertainties, and
have decided to cut the continual financial losses. Therefore due to lack of
further funding to sustain certain operations, on August 1, 2022 the Board of
Directors took the following actions:
1. Hartford Great Health Management (Shanghai), Ltd., a HFUS's subsidiary in
Shanghai, China, will transfer the entire 90% of its share holdings of Hartford
International Education Technology (Shanghai) Co., Ltd. to Shanghai Qiaoshang
Overseas Culture Media Co., Ltd. for a total amount of $900 USD (approximately
RMB ¥5,850). Shanghai Qiaoshang Overseas Culture Media Co., Ltd. will bear all
claims of equity, debts, and losses effective on August 1, 2022.
2. Hangzhou Hartford Comprehensive Health Management, Ltd. a HFUS's subsidiary
in Hangzhou, China, will transfer the 90% of its shareholdings to Shanghai
Qiaoshang Overseas Culture Media Co., Ltd. for a total amount of $900 USD
(approximately RMB ¥5,850). The remaining 10% of its shareholdings will be
transferred to a related individual, Danfeng Gu, for a total amount of $100 USD
(approximately RMB ¥650). Shanghai Qiaoshang Overseas Culture Media Co., Ltd.
and Danfeng Gu will bear all claims of equity, debts, and losses effective on
August 1, 2022.
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