UNITED ~~STATESSECURITIES~~STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 10−Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: ~~September~~March 3031, ~~2015~~ 2016

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 000-30183

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED
(Exact Name of Registrant as Specified in Its Charter)

NEW YORK	13-3874771
(State or other jurisdiction of	(I.R.S. Empl. Ident. No.)
incorporation or organization)

8/F East Area
Century Golden Resources Business Center
69 Banjing Road
Haidian District
Beijing, People’s Republic of China, 100089
(Address of Principal Executive Offices)

+86-10-884-52568
(Registrant’s Telephone Number, Including Area Code)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [X] No [ ]

Indicate by check mark whether the registrant is a larger accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

The numbers of shares outstanding of each of the issuer’s classes of common equity, as of ~~November~~May 1218, ~~2015~~2016 are as follows:

Class of Securities	Shares Outstanding
Common Stock, $0.01 par value	77,655,862

TABLE OF CONTENTS

	PART I Financial Information	Page
Item 1.	Financial Statements	2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1814
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2419
Item 4	Controls and Procedures	2419
	PART II Other Information
Item 1.	Legal Proceedings	2521
Item 1A.	Risk Factors	2521
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2521
Item 3.	Defaults Upon Senior Securities	2521
Item 4.	Mine Safety Disclosures	2521
Item 5.	Other Information	2521
Item 6.	Exhibits	2521

Part I – FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) March 31, 2016

~~ITEM~~2 ~~1. FINANCIAL STATEMENTS.~~

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

		March 31,			December 31,
		2016			2015
ASSETS
Current assets
Cash and cash equivalents	$	22,000		$	29,429
Inventories		362,914			359,194
Account receivable		-			5,544
Other receivables		28,285			26,508
Deposits and prepayments		33,091			14,447
Total current assets		446,290			435,122

Investments		87,951			87,512
Property, plant and equipment (net)		316,157			320,386
	$	850,398		$	843,020

LIABILITIES AND EQUITY
Current liabilities
Short-term loan	$	58,813		$	58,519
Accounts payable		4,893			4,869
Accrued liabilities		191,257			192,306
Due to directors		637,508			627,832
Due to related parties		430,500			417,653
Other payables		734,854			660,868
Total current liabilities		2,057,825			1,962,047

Commitments and Contingencies		-			-

Equity
Common stock: par value $.01; 200,000,000 shares authorized; 77,655,862 shares issued and outstanding		776,558			776,558
Additional paid-in capital		28,877,540			28,877,540
Deficit accumulated during the development stage		(31,076,284	)		(30,996,907	)
Accumulated other comprehensive income		203,320			204,099
Total China Longyi stockholders' equity		(1,218,866	)		(1,138,710	)
Noncontrolling interest		11,439			19,683
Total Equity		(1,207,427	)		(1,119,027	)
	$	850,398		$	843,020

~~September~~See ~~30,~~notes ~~2015~~to consolidated financial statements

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED CONSOLIDATED ~~BALANCE~~STATEMENTS ~~SHEETS~~OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)

		September 30,			December 31,
		Three months ended
ASSETS		2015			2014
		March 31,
Current assets
		2016			2015
Cash and cash equivalents	$	27,490		$	46,366
Revenues
Inventories		368,647			389,362
Sales	$	16,466		$	3,560
Account receivalbes		26,601			27,654
Cost of sales		16,466			4,165
Other receivables		59,931			6,312
Gross margin		-			(605	)
Deposits and prepayments		23,578			15,331
Operating expenses
Total current assets		506,247			485,025
General and administrative expenses		103,486			139,143
Investment		70,468			11,157
		103,486			139,143
Property, plant and equipment (net)		333,046			358,531
Loss from operations		(103,486	)		(139,748	)
	$	909,761		$	854,713
Other income (expense)
LIABILITIES AND EQUITY
Interest income		7			19
Current liabilities
Other income (expense)		25,273			-
Accounts payable	$	5,441		$	5,657
Transaction exchange gain		(2,828	)		1,322
Accrued liabilities		193,997			181,747
Interest expense		(5,860	)		-
Due to directors		614,966			641,134
		16,592			1,341
Due to related parties		411,961			389,842
Loss before income tax expense and noncontrolling interest		(86,894	)		(138,407	)
Other payables		673,017			434,026
Income tax expense		-			-
Total current liabilities		1,899,382			1,652,406
Net loss		(86,894	)		(138,407	)
Equity
Less: Net loss attributable to noncontrolling interest		7,517			7,415
Common stock: par value $.01; 200,000,000 shares authorized; 77,655,862 shares issued and outstanding		776,558			776,558
Net loss attributable to China Longyi	$	(79,377	)	$	(130,992	)
Additional paid-in capital		28,877,540			28,877,540
Basic and diluted loss per share	$	(0.00	)	$	(0.00	)
Deficit accumulated during the development stage		(30,858,724	)		(30,654,175	)
Weighted average number of shares outstanding-basic and diluted		77,655,862			77,655,862
Accumulated other comprehensive income		183,826			162,255
Comprehensive loss
Total China Longyi stockholders' equity		(1,020,800	)		(837,822	)
Net loss	$	(86,894	)	$	(138,407	)
Noncontrolling interest		31,179			40,129
Foreign currency translation adjustment		(1,506	)		424
Total Equity		(989,621	)		(797,693	)
Comprehensive loss		(88,400	)		(137,983	)
	$	909,761		$	854,713
Comprehensive loss attributable to noncontrolling interest		(8,244	)		(6,815	)
Comprehensive loss attributable to China Longyi	$	(80,156	)	$	(131,168	)

See notes to consolidated financial statements

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF ~~OPERATIONS~~CASH ~~AND~~FLOWS ~~COMPREHENSIVE LOSS~~ (UNAUDITED)

		Three months ended						Nine months ended
		Three months ended December 31,
		September 30,						September 30,
		2016			2015
		2015			2014			2015			2014
Cash flows from operating activities:
Revenues
Net loss	$	(86,894	)	$	(138,407	)
Sales	$	153,976			-		$	163,119			-
Adjustments to reconcile net loss to net cash used in operations:
Cost of sales		185,308			-			206,167			-
Depreciation and amortization		5,773			5,921
Gross margin		(31,332	)		-			(43,048	)		-
Changes in operating assets and liabilities:
Operating expenses
Accounts receivable		5,513			-
General and administrative expenses		121,637			105,066			363,965			367,795
Other receivables		(1,626	)		(830	)
Goodwill impairment loss		-			-			-			-
Deposits and prepayment		(18,377	)		(8,147	)
Write-off inventory and bus licenses		-			-			-			-
Inventory		(1,899	)		4,165
Research and development costs		-						-			-
Other payables		68,474			181,051
		121,637			105,066			363,965			367,795
Due to related parties		11,608			10,582
Loss from operations		(152,969	)		(105,066	)		(407,013	)		(367,795	)
Accounts payable and accrued liabilities		-			6,518
Other income (expense)
Net cash used in operations		(17,428	)		60,853
Interest income		6			9			55			16
Cash flows from investing activities:
Other income (expense)		179,750			1,730			193,710			5,202
Net cash provided by (used in) investing activities		-			-
Transaction exchange gain		(10,089	)		(14,988	)		(4,786	)		(15,900	)
Cash flows from financing activities:
Gain on asset disposal		-			-			-			-
Proceeds (repayments) loans from directors		7,087			(1,629	)
Gain on debt settlement		-			-			-			-
Net cash provided by financing activities		7,087			(1,629	)
Gain on disposal subsidiary		-			-			-			-
Effect of foreign exchange rate fluctuation		2,912			(1,541	)
Interest expense		-						-			-
Increase(decrease) in cash and cash equivalents		(7,429	)		57,683
		169,667			(13,249	)		188,979			(10,682	)
Cash and cash equivalents, beginning of period		29,429			46,366
Loss before income tax expense and noncontrolling interest		16,698			(118,315	)		(218,034	)		(378,477	)
Cash and cash equivalents, end of period	$	22,000		$	104,049
Income tax expense		-			-			-			-
Supplemental disclosures of cash flow information:
Net loss		16,698			(118,315	)		(218,034	)		(378,477	)
Cash paid for interest	$	-		$	-
Less: Net loss attributable to noncontrolling interest		(1,789	)		8,151			13,485			23,789
Cash paid for income taxes	$	-		$	-
Net loss attributable to China Longyi	$	14,909		$	(110,164	)	$	(204,549	)	$	(354,688	)
Basic and diluted loss per share	$	0.00		$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average number of shares outstanding-basic and diluted		77,655,862			77,655,862			77,655,862			77,655,862
Comprehensive loss
Net loss	$	16,698		$	(118,315	)	$	(218,034	)	$	(378,477	)
Foreign currency translation adjustment		32,528			26,938			26,106			17,642
Comprehensive loss		49,226			(91,377	)		(191,928	)		(360,835	)
Comprehensive loss attributable to noncontrolling interest		6,352			(8,151	)		(8,950	)		(23,037	)
Comprehensive loss attributable to China Longyi	$	42,874		$	(83,226	)	$	(182,978	)	$	(337,798	)

See notes to consolidated financial statements

~~CHINALONGYI~~CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED ~~CONSOLIDATED~~ ~~STATEMENTS~~Notes OFto ~~CASH~~condensed ~~FLOWS~~consolidated financial statements (~~UNAUDITED~~Unaudited) March 31, 2016

		Nine months ended September 30,
		2015			2014
Cash flows from operating activities:
Net loss	$	(218,034	)	$	(378,477	)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization		17,855			28,777
Changes in operating assets and liabilities:
Accounts receivalbes					(1,628	)
Other receivables		(55,496	)		2,080
Deposits and prepayment		(9,099	)		(11,309	)
Inventory		6,064			(47	)
Other payables		278,867			57,995
Due to related parties		32,130			53,362
Accounts payable and accrued liabilities					(28	)
Net cash used in operations		52,287			(249,275	)
Cash flows from investing activities:
Purchase of investment		(61,551	)		-
Purchases of property and equipment		(5,668	)
Net cash provided by (used in) investing activities		(67,219	)
Cash flows from financing activities:
Proceeds (repayments) loans from directors		(6,479	)		222,970
Net cash provided by financing activities		(6,479	)		222,970
Effect of foreign exchange rate fluctuation		2,535			15,827
Increase(decrease) in cash and cash equivalents		(18,876	)		(10,478	)
Cash and cash equivalents, beginning of period		46,366			20,715
Cash and cash equivalents, end of period	$	27,490		$	10,237
Supplemental disclosures of cash flow information:
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The unaudited consolidated financial statements of China Longyi Group International Holdings Limited (the “Company” or “China Longyi”) include the accounts of China Longyi and its wholly-owned and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation.

~~See~~1. ~~notes~~BUSINESS toDESCRIPTION ~~consolidated~~AND ~~financial statements~~ ORGANIZATION

5We are a holding company that only operates through our indirect Chinese subsidiaries Beijing SOD and Chongqing SOD. Through our Chinese subsidiaries, we develop, manufacture and market our SOD products in China. SOD is a naturally occurring enzyme which may act as a potent antioxidant defense in cells that are exposed to oxygen.

~~CHINA~~The ~~LONGYI~~following ~~GROUP~~chart ~~INTERNATIONAL~~reflects ~~HOLDINGS~~our organizational ~~LIMITED~~structure ~~Notes~~as ~~to condensed~~of ~~consolidated~~the ~~financial~~date ~~statements~~of ~~(Unaudited)~~this ~~September~~report. ~~30, 2015~~

~~The~~6 accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The unaudited consolidated financial statements of China Longyi Group International Holdings Limited (the “Company” or “China Longyi”) include the accounts of China Longyi and its wholly-owned and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation.

1.CHINA ~~BUSINESS~~LONGYI ~~DESCRIPTION~~GROUP ~~AND~~INTERNATIONAL ~~ORGANIZATION~~HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) March 31, 2016

BUSINESS

1.	BUSINESS DESCRIPTION AND ORGANIZATION (Continued)

	CONTROL BY PRINCIPAL STOCKHOLDERS

	The directors, executive officers, affiliates and related parties own, beneficially and in the aggregate, the majority of the voting power of the outstanding shares of the common stock of the Company. Accordingly, if they voted their shares uniformly, directors, executive officers and affiliates would have the ability to control the approval of most corporate actions, including increasing the authorized capital stock of China Longyi and the dissolution, merger or sale of the Company's assets.

	GOING CONCERN

	The Company has earned only insignificant revenues since its inception. As at March 31, 2016, the Company has a working capital deficiency of $1,611,534 and accumulated deficit from recurring net losses of $31,076,284 incurred for the current and prior years as of March 31, 2016. As at March 31, 2016, the Company has cash and cash equivalents of $22,000.

	The Company’s ability to continue as a going concern ultimately is dependent on the management’s ability to obtain equity or debt financing, attain further operating efficiencies, and achieve profitable operations. The unaudited consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company not be able to continue as a going concern.

Overview of Our Business

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

	PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

	The unaudited consolidated financial statements for all periods presented include the financial statements of China Longyi Group International Holdings Limited, and its subsidiaries: Top Team Holdings Limited, Full Ample Group Limited (Daykeen Group, BVI), Top Time International Limited (HK), Beijing SOD, and Chongqing SOD. The unaudited consolidated financial statements have been prepared in accordance with US GAAP. All significant intercompany accounts and transactions have been eliminated.

	The Company has determined the People’s Republic of China Chinese Yuan Renminbi (“RMB”) to be its functional currency. The accompanying unaudited consolidated financial statements are presented in United States (US) dollars. The unaudited consolidated financial statements are translated into US dollars from RMB at quarter-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

	RMB is not freely convertible into the currency of other nations. All such exchange transactions must take place through authorized institutions. There is no guarantee the RMB amounts could have been, or could be, converted into US dollars at rates used in translation.

	NONCONTROLLING INTEREST IN SUBSIDIARIES

	The Company owns 90% of the equity interests in Beijing SOD, and the remaining 10% is owned by Miss Ran Wang. Therefore, the Company records non-controlling interest expense to allocate 10% of the loss of the Beijing SOD to Miss Ran Wang, its non-controlling shareholder.

We7 are a holding company that only operates through our indirect Chinese subsidiaries Beijing SOD and Chongqing SOD. Through our Chinese subsidiaries, we develop, manufacture and market our SOD products in China. SOD is a naturally occurring enzyme which may act as a potent antioxidant defense in cells that are exposed to oxygen. Certain research has shown that under certain biological conditions, SOD revitalizes cells and reduces the rate of cell destruction. It neutralizes the most common free radical—superoxide radical—by converting it into hydrogen peroxide and water. Because superoxide is harmful to human cells, and certain forms of SOD exist naturally in most humans, many studies show that SOD is valuable in protecting human cells from the harmful effects of superoxide. SOD is thought to be more powerful than antioxidant vitamins as it activates the body's productions of its own antioxidants. As a result, SOD is referred to as the “enzyme of life.” Commercially, SOD has a wide range of applications and is widely applied in foods, drinks, skin care productions, pharmaceuticals, to combat ailments ranging from sunburn to rheumatoid arthritis.

~~History~~CHINA ~~and~~LONGYI ~~Corporate Structure~~GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) March 31, 2016

We are a New York corporation that was incorporated on February 29, 1996, as United Network Technologies, Inc. and we changed our name to Panagra International Corporation on October 2, 1998. From our inception until 2001, we were relatively inactive with limited operations. On August 2, 2001 we changed our name to Minghua Group International Holdings Limited and at that time we also increased the authorized common shares of our common stock from 40,000,000 shares to 200,000,000 shares. On October 16, 2007, we effectuated a 1-for-20 reverse stock split of all our issued and outstanding shares of common stock, or the Reverse Split, and changed our name to China Longyi Group International Holdings Limited.

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

	The Company owns 81% of the equity interest in Chongqing SOD of which 9% is owned by Miss Ran Wang, and the remaining 10% by Mr. Guoqing Tan. Therefore, the Company records non-controlling interest charge in the statement of operations to allocate 19% of the results of operations of Chongqing SOD to its non-controlling shareholders.

	USE OF ESTIMATES

	The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

	SIGNIFICANT ESTIMATES

	Several areas require significant management estimates relating to uncertainties for which it is reasonably possible that there will be a material change in the near term. The more significant areas requiring the use of management estimates related to determination of net realizable value of inventory, allowance for doubtful accounts, property and equipment, accrued liabilities, and the useful lives for depreciation.

	REVENUE RECOGNITION

	Revenue is recognized when persuasive evidence of an arrangement exists, the price is fixed and determinable, delivery has occurred and there is a reasonable assurance of collection of the sales proceeds. The Company generally obtains purchase authorizations from its customers for a specified amount of products at a specified price and considers delivery to have occurred when the customer takes title of the products.

	PROPERTY, PLANT AND EQUIPMENT

	Property, plant and equipment are recorded at cost. Significant additions and improvements are capitalized, while repairs and maintenance are charged to expenses as incurred. Equipment purchased for specific research and development projects with no alternative uses are expensed. Assets under construction are not depreciated until construction is completed and the assets are ready for their intended use. Gains and losses from the disposal of property, plant and equipment are recorded in loss on disposal and impairment of property, plant and equipment included in the consolidated statements of comprehensive income (loss).

	Depreciation and amortization are provided for financial reporting purposes primarily on the straight-line method over the estimated useful lives of the respective assets as follows:

Reverse Acquisition

	Estimated
	Useful Life
Transportation equipment	5 years
Furniture and office equipment	5 years
Production equipment	10 years
Building and improvements	20 years

In8 June 2001 we formed Minghua Acquisition Corp., a Delaware corporation, and acquired all the equity interests of Minghua Group International Holding (Hong Kong) Limited, or Minghua Hong Kong, a Hong Kong limited company formed on June 4, 1997, for a purchase price of $1,000,000 in cash and 28,000,000 (pre Reverse Split) shares of our common stock. The shares received by the Minghua Hong Kong shareholders equaled 70% of our issued and outstanding shares of common stock, resulting in a change of control to the Minghua Hong Kong shareholders.

6CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) March 31, 2016

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) September 30, 2015

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

	CASH AND CASH EQUIVALENTS

	Cash equivalents consist of highly liquid investments that are readily convertible to cash generally with maturities of three months or less when purchased.

	INVENTORY

	Prior to January 1, 2015, inventories are stated at the lower of cost or replacement cost with respect to raw materials and the lower of cost or market with respect to finished goods and work in progress. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11 (“ASU 2015-11”), Simplifying the Measurement of Inventory, which the Company adopted on January 1, 2015. Subsequent to January 1, 2015, inventories are stated at the lower of cost or replacement cost with respect to raw materials and the lower of cost or net realizable value with respect to finished goods and work in progress. The cost of work in progress and finished goods is determined on a weighted average cost basis and includes direct material, direct labor and overhead costs. Net realizable value represents the anticipated selling price, net of distribution cost, less estimated costs to completion for work in progress.

	Inventories as of March 31, 2016were $362,914 and $359,194 in December 31, 2015.

	INCOME TAXES

	Income tax expense is based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences between assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes. In accordance with ASC Topic 740 (formerly SFAS No. 109, “Accounting for income taxes”) these deferred taxes are measured by applying currently enacted tax laws.

	The Company did not provide any current or deferred income tax provision or benefit for any period presented to date because it has experienced operating losses since inception. The benefit of any tax income (loss) carry forwards is fully offset by a valuation allowance, as there is a more than fifty percent chance that the Company will not realize those benefits.

	There are net operating loss carry forwards allowed under the Hong Kong and China Governments’ tax system.

	RESEARCH AND DEVELOPMENT COSTS

	Company sponsored research and development costs, related to both present and future products, are charged to operations when incurred and are included in operating expenses. Expenditures for research and development for the three months period ended March 31, 2016 and 2015 were both $0 and a cumulative amount of $8,880,206 for the period from June 4, 1997 (inception) to March 31, 2016.

	SHIPPING AND HANDLING

	Costs relating to shipping and handling are part of general and administrative expenses in the unaudited consolidated statements of operations and comprehensive loss. Insignificant amount of shipping and handling costs incurred during the three months ended March 31, 2016 and 2015.

1.9 ~~BUSINESS DESCRIPTION AND ORGANIZATION (Continued)~~

AtCHINA ~~that~~LONGYI ~~time,~~GROUP ~~the~~INTERNATIONAL ~~sole~~HOLDINGS ~~asset~~LIMITED ofNotes ~~Minghua Hong~~to ~~Kong~~condensed ~~was~~consolidated anfinancial ~~85%~~statements equity interest in the Shenzhen Minghua Environmental Protection Vehicle Co., Ltd., or Minghua EPV, a PRC corporation. The remaining 15% equity minority interest in China Minghua EPV was owned by a related party, Asia Key Group Limited, through its wholly-owned subsidiary Minghua Real Estate (~~Shenzhen~~Unaudited) ~~Ltd.,~~March ~~formerly known as Minghua Investment Co.~~31, Ltd., or Minghua Real Estate. On January 29, 2004, the Company acquired this 15% minority interest held by Minghua Real Estate, in a related party transaction by paying $990,638 in cash and issuing 28,210,000 (prereverse split) shares of our common stock. Through Minghua EPV, our business became the development and commercialization of mass transit, hybrid electric vehicles, primarily buses. 2016

Acquisition of the Bus Installation Company

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

	EARNING (LOSS) PER SHARE

	Basic earnings (loss) per common share ("LPS") is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per common share is calculated by adjusting the weighted average outstanding shares, assuming conversion of all potentially dilutive stock options.

	There were no stock options and potentially dilutive securities outstanding as at March 31, 2016.

	STOCK - BASED COMPENSATION

	Compensation expense for costs related to all share-based payments, including grants of stock options, is recognized through a fair-value based method. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value for stock options. The Company uses the grant date stock price to determine the grant date fair value of restricted shares. The Company has elected to recognize share-based compensation costs using the straight-line method over the requisite service period with a graded vesting schedule, provided that the amount of compensation costs recognized at any date is at least equal to the portion of the grant date value of the awards that are vested at that date. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Share based compensation costs are recorded net of estimated forfeitures such that expense is recorded only for those awards that are expected to vest.

	The Company had no such compensation expense for the three months ended March 31, 2016 and 2015.

	COMPARATIVE FIGURES

	Certain comparative figures have been reclassified in order to conform with the presentation adopted in the current period.

	COMPREHENSIVE INCOME (LOSS)

	The Company’s comprehensive income (loss) consists of net income (loss) and foreign currency translation adjustments.

	RECENTLY ADOPTED ACCOUNTING STANDARDS

	There were no changes to the new accounting pronouncements as described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 except for the following:

	In February 2016, the Financial Accounting Standards Board ("FASB") issued guidance which amends the existing accounting standards for leases. Consistent with existing guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification. Under the new guidance, a lessee will be required to recognize right-of-use assets and lease liabilities on the balance sheet. The new guidance is effective for us from November 1, 2020, and interim periods in the following year. Early adoption of this guidance is permitted and we will be required to adopt using a modified retrospective approach. We are evaluating the timing and the impact of adopting this guidance on our consolidated financial statements and disclosures.

On10 March 13, 2003, our indirect subsidiary, Ming Hua Environmental Protection Science and Technology Limited, a Hong Kong limited company, or Minghua Science, acquired an 89.8% equity interest in the Guangzhou City View Bus Installation Company, or the Bus Installation Company, through its acquisition of Good View Bus Manufacturing (Holdings) Company Limited, a Hong Kong limited company and Eagle Bus Development Limited, a Hong Kong limited company, which own 23.8% and 66% of the Bus Installation Company, respectively. The Bus Installation Company manufactured motor coaches for domestic sale in China and for export under the “Eagle” brand name. We sold 6 standard diesel buses in 2005 and 5 standard diesel buses in 2004, however, once we sold off the inventory of diesel buses and parts that we acquired along with our acquisition of the Bus Installation Company, we no longer sold or manufactured diesel buses.

~~Acquisition~~CHINA ofLONGYI ~~Beijing~~GROUP ~~Cardinal~~ INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) March 31, 2016

On June 16, 2004, Minghua Hong Kong formed a wholly owned subsidiary in the PRC, named Beijing China Cardinal Real Estate Consulting Co., Ltd., or Beijing Cardinal. We intended to use Beijing Cardinal as a vehicle to make future real estate investments in the PRC. However, at December 31, 2006, Beijing Cardinal had not begun significant operations.

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

	In January 2016, FASB issued amendments to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. The provisions under this amendment are effective for us from November 1, 2018, and for interim periods in the following year and early adoption is not permitted. We are evaluating the impact of adopting this guidance to our consolidated financial statements.

	In November 2015, FASB issued guidance intended to simplify accounting for deferred taxes. Beginning on November 1, 2017 and including the interim periods following that date, we will be required to present all deferred tax balances as non-current. Existing GAAP guidance requires us to record deferred tax balances as either current or non-current in accordance with the classification of the underlying attributes. Early adoption of this guidance is permitted and may be applied either prospectively or retrospectively to all periods presented. We expect to early adopt this guidance prospectively at the end of the second quarter of fiscal year 2016, but we are still evaluating how significant the impact of the adoption will be on our consolidated balance sheet.

	Other amendments to GAAP in the U.S. that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our consolidated financial statements upon adoption.

~~Sale~~3. STOCKHOLDERS' EQUITY The Company's capital structure as of ~~Environmental~~March ~~Vehicle Business~~31, 2016 and December 31, 2015 was as follows:

Through Minghua Hong Kong, we had been focused on the development and commercialization of mass transit, hybrid electric vehicles, primarily buses. However, although prototype hybrid vehicles and a limited number of other vehicles have been produced, we have not been able to successfully commercialize these vehicles. As a result, on September 28, 2006, we disposed of our entire interests in Minghua Hong Kong and Minghua Science to Messrs. Han Lian Zhong and Niu Rui Cheng for 1 HK$, in exchange for their assumption of Minghua Hong Kong and Minghua Science’s debt. However, we retained our interests in China Cardinal, which were transferred to our subsidiary, Euromax International Investments Limited, or Euromax, and in the Guangzhou City View Bus Installation Company, which was transferred to our subsidiary, Top Team Holdings Limited (BVI), or Top Team.

Common stock – par value $0.01	Authorized	Issued and outstanding

March 31, 2016	200,000,000	77,655,862

December 31, 2015	200,000,000	77,655,862

7As of March 31, 2015, the Company had accumulated deficit of $31,076,284.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) September 30, 2015

4.	INVESTMENT

	On January 5, 2010, the Company invested in Cangshan Duoha Vegetable Food Company (“Duoha”) with 50,000 shares of the Company’s common stock worth $10,000 as $0.2 per share to acquire 20% equity interest in of Duoha. According to the investment agreement, although we own 20% equity of Duoha, we do not have significant influence over Duoha’s operating and financing policies. Therefore, the management of the Company implemented the cost method to account above investment.

	In May of 2015, we signed an investment agreement with Guizhou Biology Technology Ltd. (“Guizhou”). According to the investment agreement, the Company invested RMB 500,000 to acquire 20% equity interest in Guizhou. Although we own 20% equity of Guizhou, we do not have significant influence over Guizhou’s operating and financing policies. As of March 31, 2016, the company has invested RMB 500,000 in Guizhou. The amount of investment as of March 31, 2016 and December 31, 2015 was $87,951 and $87,512 respectively.

1.11 ~~BUSINESS DESCRIPTION AND ORGANIZATION (Continued)~~

~~Qiang~~CHINA ~~Long~~LONGYI ~~Investment~~ GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) March 31, 2016

~~On January 29, 2004, we entered into a subscription agreement with Qiang Long Real Estate Development Co~~5., ~~Ltd.,~~INVENTORIES ~~or Qiang~~Inventories ~~Long, a PRC company, pursuant to which, as amended and supplemented from time to time, Qiang Long was obligated to purchase 140,000,000 (pre reverse split) shares of our common stock, par value $0.01~~ at anMarch ~~aggregate purchase price of US$29~~31,~~400,000,~~ or2016and ~~$0.21~~December ~~per share. An amount equaling US$653~~31,~~795~~ ~~was paid~~2015 toconsisted ~~us as a performance bond and an additional US$632,911 was paid to us in 2006 in exchange for 3,013,862 (pre reverse split) shares. The balance~~ of US$28,113,294 was to be paid in full by June 30, 2007, for the remaining 136,986,138 (pre reverse split) shares. On June 29, 2007, we consummated our obligations under the contract, pursuant to a letter agreement between the Company and Qiang Long. Pursuant to the letter agreement, we acknowledged our receipt of the final payment in cash from Qiang Long as fulfillment of Qiang Long’s investment obligation, and agreed to issue 50,000,000 (pre reverse split) shares to Qiang Long on or before July 23, 2007, and the remaining 86,986,138 (pre reverse split) shares within fifteen (15) business days following the effective date of an amendment to our Certificate of Incorporation to effect a one-for-twenty reverse split of our outstanding common stock, which will be equal to 4,349,307 shares post-reverse split. Accordingly, on August 2, 2007, 50,000,000 shares were issued to Qiang Long. :

As a result of the closing of the investment transaction with Qiang Long, our Chairman, Mr. Changde Li, now beneficially owns and controls 155,000,000 (pre reverse split) shares (7,750,000 shares post-reverse split) or 54.0% of the Company’s issued and outstanding common stock, 15,000,000 (pre reverse split) of which he holds indirectly through Qiang Long, 136,986,137 (pre reverse split) of which he holds indirectly through Qiang Long’s affiliate, Jolly Concept Management Limited, a BVI company, and 3,013,863 (pre reverse split) of which he holds through Qiang Long’s affiliate, Chinese Dragon Heritage Investment Management Limited, a PRC company.

		March 31,		December 31,
		2016		2015
Raw Materials	$	50,565	$	26,124
Work in progress		268,054		266,717
Finished goods		44,295		66,353
	$	362,914	$	359,194

~~Acquisition~~6. ofPROPERTY ~~Top Time~~AND EQUIPMENT Property and equipment at cost consisted of:

From the time when we sold the 6 standard diesel buses in the first quarter of 2005 until November 12, 2007 when we completed the acquisition transaction with Daykeen Group Limited, or Daykeen, discussed herein, we had limited operations and did not engage in active business operations other than our search for, and evaluation of, potential business opportunities for acquisition or participation.

		March 31,			December 31,
		2016			2015
Transportation equipment	$	53,158		$	52,892
Furniture and office equipment		57,329			57,043
Production equipment, buildings and improvements		378,217			376,331
Subtotal		488,704			486,266
Less: impairment provision		(47,802	)		(47,563	)
accumulated depreciation		(311,374	)		(304,015	)
		129,528			134,688
Construction in progress		186,629			185,698
		316,157			320,386

OnDepreciation ~~November~~expense ~~12,~~as ~~2007, we completed an acquisition transaction with Top Time International Limited, a Hong Kong Company, or Top Time, whereby we paid Daykeen, Top Time’s sole shareholder, a total consideration~~ of ~~$54.9~~March ~~million (RMB 407 million~~31, ~~based on an exchange~~ ~~ratio~~2016 ofwas $~~1=RMB~~ 7,359.~~414)~~ inAccumulate ~~exchange~~impairment ~~for~~as ~~100% ownership~~ of ~~Top~~March ~~Time~~31, ~~consisting~~2016 ~~of $30 million in cash~~ and ~~$24.9~~December ~~million in shares of our common stock issuable~~31, ~~within~~2015 ~~90 days of the closing. $30 million of cash~~ was ~~paid to Daykeen by three transactions~~$47,802 ~~Beijing Cardinal, De Qiu Hong,~~ and ~~Mr. Chen Zhiping paid~~ $~~29 million~~47, ~~$0.4 million~~563, ~~and $0.6 million on behalf of the Company,~~ respectively. As a result, the Company offset the same amounts of balance of the three parties’ current accounts. The equity portion of the purchase price amounts to a total of 62,250,000 (post reverse split) shares of our common stock (based upon $0.02/share, the average of the closing price of the Company’s common stock on the OTCBB for the 365 calendar days prior to May 31, 2007, which was adjusted for our stock split which occurred on October 16, 2007 and resulted an effective purchase price of $0.40 per share). Top Time thereby became our wholly owned subsidiary and Daykeen will become our controlling stockholder upon our issuance to Daykeen of the equity portion of the purchase price in accordance with the Share Purchase Agreement.

87. COMMITMENTS AND CONTINGENCIES From time to time, the Company has disputes that arise in the ordinary course of its business. Currently, according to management, there are no material legal proceedings to which the Company is a party to or to which any of their property is subject that will have a material adverse effect on the Company’s financial condition.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) September 30, 2015

8.	SHORT-TERM LOAN

	During the year of 2015, Shiling Wang provided the Company an unsecured loan for an amount of RMB 380,000 in PRC, and the interest rate of the loan is 25% per annum.

	The principal amount for three months ended March 31, 2016 was $58,813 and for the year ended of 2015 was $58,519 respectively, and was recorded on the balance sheet as a short-term loan.

1.12 ~~BUSINESS DESCRIPTION AND ORGANIZATION (Continued)~~

~~Top~~CHINA ~~Time~~LONGYI ~~was~~GROUP ~~incorporated~~INTERNATIONAL inHOLDINGS ~~Hong~~LIMITED ~~Kong in~~Notes ~~December~~to ~~2006~~condensed ~~and~~consolidated ~~currently~~financial ~~has~~statements ~~two~~(Unaudited) ~~subsidiaries: Beijing SOD and Chongqing SOD. Beijing SOD was incorporated in China in~~ March ~~2005~~31, ~~and is 90% owned by Top Time and 10% owned by Ms. Ran Wang.~~2016

For accounting purposes, the acquisition of Top Time was treated as a reorganization of entities under common control. When we refer in this report to business and financial information for periods prior to the consummation of the acquisition, we are referring to the business and financial information of Top Time on a consolidated basis unless the context suggests otherwise.

9.	OTHER PAYABLES

	Other payables are carrying value as of the balance sheet date of obligations incurred and payable, which are not elsewhere specified in the taxonomy.

	Other payables as of March 31, 2016 and December 31, 2015 consist of the following:

Sale of Top Team Subsidiaries

		March 31,		December 31,
		2016		2015
Due to Tailong Zhongrui International Corporation	$	35,597	$	35,419
Due to Beijing De Qiuhong Investment Ltd.		488,552		486,116
Due to Small and Medium Sized Enterprises Union of China		31,496		-
Educational funds		10,217		9,754
Wage payable		108,732		86,740
Project payment		23,216		23,100
Other payable		37,044		19,739
Total	$	734,854	$	660,868

Through acquisition of Top Time, our business became the development, manufacture and sale of SOD products. As a result, on November 28, 2007, we disposed of five subsidiaries held by Top Team Holdings Limited (BVI): Euromax International Investments Limited, Beijing China Cardinal Real Estate Consulting Co., Ltd, Eagle Bus Development Limited (HK), Good View Bus Manufacturing Company Limited (HK), and Guangzhou City View Bus Installation Company Limited (PRC), to Mr. Zhiping Cheng, for an aggregate sale price of RMB 5,000,000 (approximately $715,000).

10.	RELATED PARTY TRANSACTIONS AND STOCKHOLDER’S LOAN

	Due to directors and due to related companies are loans to the Company that are unsecured, non-interest bearing and have no fixed terms of repayment, therefore, deemed payable on demand.

	The Company rents office space from the related company on a month to month basis.

~~The~~11. ~~following~~SUBSEQUENT ~~chart~~EVENTS ~~reflects~~Management ~~our organizational~~has ~~structure~~considered asall ofevents occurring through the date ofthe ~~this~~financial ~~report~~statements have been issued, and has determined that there are no such events that are material to the financial statement.

913

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) September 30, 2015

1. BUSINESS DESCRIPTION AND ORGANIZATION (Continued)

CAPITAL RESOURCES AND BUSINESS RISKS

The Company remains in the development stage and only operates through indirect Chinese subsidiaries Beijing SOD and Chongqing SOD. Through Chinese subsidiaries, we develop, manufacture and market our SOD products in China. SOD is a naturally occurring enzyme which may act as a potent antioxidant defense in cells that are exposed to oxygen. All of the company’s future business operations are subject to all of the risks inherent in the establishment of a new business enterprise. The Company has no proven revenue stream from the sales of its products. Additional capital resources through current and future offerings of securities will be needed in order to accomplish the Company's present marketing, development and manufacturing plans. The manufacturing facility and other operations in China, as well as the business financial conditions and results of operations are, to a significant degree, subject to economic, political and social events in China.

The Company had incurred losses since inception and had working capital deficiency of $1,393,135 as at September 30, 2015 (December 31, 2014: deficiency of $1,167,381). There exits substantial doubt about the Company’s ability to continue as a going concern, which contemplated the realization of assets and the payment of liabilities in the ordinary course of business. To alleviate the situation, management obtained $28,113,294 in funding through the issuance of additional stock to one of the Company’s shareholders on July 27, 2007. On November 12, 2007, the Company completed an acquisition transaction with Top Time whereby it paid Daykeen, Top Time’s sole shareholder, a total consideration of $54.9 million, in exchange for 100% ownership of Top Time, consisting of $30 million in cash and $24.9 million in shares of our common stock issuable within 90 days of the closing. The equity portion of the purchase price amounts to a total of 62,250,000 post reverse split shares of the Company’s common stock.

On July 27, 2007, the Company instructed the prior Transfer Agent to issue the 2,500,000 post reverse split shares of common stock deliverable to Qiang Long in the name of Jolly Concept Management Limited, in accordance with Qiang Long’s instructions. On December 14, 2007, the Company instructed present Transfer Agent to issue the replacement certificate showing the new name of the company and the correct number of shares, post reverse-split, and the remaining 4,349,307 shares of common stock issuable to Qiang Long, to Jolly Concept Management Limited and to Zhang, Lifang. The Company also agreed to issue 1,131,026 shares of common stock post-reverse-split to Luck Pond Enterprises Limited or its designee, for its services as finder in connection with the Qiang Long investment. On December 14, 2007, the Company instructed present Transfer Agent to issue the total amount of 62,250,000 shares of the Company’s common stock, post-reverse-split, issuable to Daykeen, to Daykeen Investment Limited.

As of September 30, 2015 the Company has accumulated deficit from recurring net loss of $30,858,724 and cash and cash equivalent of $27,490.The application of the going concern basis of presentation assumes that the Company will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. There is, primarily as a result of the conditions described above, substantial doubt as to the appropriateness of the use of the going concern assumption. The accompanying unaudited financial statements have been prepared on a going concern basis notwithstanding these conditions.

The ability of the Company to continue as a going concern is dependent on its ability to generate sufficient positive cash flows from future operations and the continued funding from the Company’s major shareholders. If the going concern basis were not appropriate for these financial statements, then adjustments would be necessary to the carrying values of assets and liabilities, the reported revenues and expenses, and the balance sheet classifications used.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) September 30, 2015

1. BUSINESS DESCRIPTION AND ORGANIZATION (Continued)

RESTRICTIONS ON TRANSFER OF ASSET OUT OF CHINA

Dividend payments by the Company’s operating subsidiaries are limited by certain statutory regulations in China. No dividends may be paid by these subsidiaries without first receiving prior approval from the State Administration of Foreign Exchange. Dividend payments are restricted to 85% of profits, after tax. Repayments of loans or advances from subsidiaries to China Longyi, unless certain conditions are met, will be restricted by the Chinese government.

CONTROL BY PRINCIPAL STOCKHOLDERS

The directors, executive officers, affiliates and related parties own, beneficially and in the aggregate, the majority of the voting power of the outstanding shares of the common stock of the Company. Accordingly, if they voted their shares uniformly, directors, executive officers and affiliates would have the ability to control the approval of most corporate actions, including increasing the authorized capital stock of China Longyi and the dissolution, merger or sale of the Company's assets.

GOING CONCERN

The Company is an early stage development company and has earned only insignificant revenues since its inception. As at September 30, 2015, the Company has a working capital deficiency of $1,393,135 and accumulated deficit from recurring net losses of $30,858,724 incurred for the current and prior years as of September 30, 2015. As at September 30, 2015, the Company has cash and cash equivalents of $27,490.

The application of the going concern basis of presentation assumes that the Company will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. There is, primarily as a result of the conditions described above, substantial doubt as to the appropriateness of the use of the going concern assumption. The accompanying unaudited financial statements have been prepared on a going concern basis notwithstanding these conditions.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

The unaudited consolidated financial statements for all periods presented include the financial statements of China Longyi Group International Holdings Limited, and its subsidiaries Top Team Holdings Limited, Full Ample Group Limited (Daykeen Group, BVI), Top Time International Limited (HK), Beijing SOD, and Chongqing SOD. The unaudited consolidated financial statements have been prepared in accordance with US GAAP. All significant intercompany accounts and transactions have been eliminated.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) September 30, 2015

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The Company has determined the People’s Republic of China Chinese Yuan Renminbi (“RMB”) to be its functional currency. The accompanying unaudited consolidated financial statements are presented in United States (US) dollars. The unaudited consolidated financial statements are translated into US dollars from RMB at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

RMB is not freely convertible into the currency of other nations. All such exchange transactions must take place through authorized institutions. There is no guarantee the RMB amounts could have been, or could be, converted into US dollars at rates used in translation.

NONCONTROLLING INTEREST IN SUBSIDIARIES

The Company owns 90% of the equity interests in Beijing SOD, and the remaining 10% is owned by Miss Ran Wang. Therefore, the Company records noncontrolling interest expense to allocate 10% of the loss of the Beijing SOD to Miss Ran Wang, its noncontrolling shareholder.

The Company owns 81% of the equity interest in Chongqing SOD of which 9% is owned by Miss Ran Wang, and the remaining 10% by Mr. Guoqing Tan. Therefore, the Company records noncontrolling interest charge in the statement of operations to allocate 19% of the results of operations of Chongqing SOD to its noncontrolling shareholders.

USE OF ESTIMATES

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

SIGNIFICANT ESTIMATES

Several areas require significant management estimates relating to uncertainties for which it is reasonably possible that there will be a material change in the near term. The more significant areas requiring the use of management estimates related to determination of net realizable value of inventory, allowance for doubtful accounts, property and equipment, accrued liabilities, and the useful lives for depreciation.

REVENUE RECOGNITION

Revenues are recognized as earned when the following four criteria are met: (1) a customer issues a purchase order or otherwise agrees to purchase products; (2) products are delivered to the customer; (3) pricing is fixed or determined in accordance with the purchase order or agreement; and (4) collectability is reasonably assured.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) September 30, 2015

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

PROPERTY AND EQUIPMENT

Impairment of long-lived assets is recognized when events or changes in circumstances indicate that the carrying amount of the asset, or related groups of assets, may not be recoverable. Under the provisions of SFAS No. 144, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of”, the Company recognizes an “impairment charge” when the expected net undiscounted future cash flows from an asset's use and eventual disposition are less than the asset's carrying value and the asset's carrying value exceeds its fair value. Measurement of fair value for an asset or group of assets may be based on appraisal, market values of similar assets or estimated discounted future cash flows resulting from the use and ultimate disposition of the asset or assets.

Expenditures for maintenance, repairs and betterments, which do not materially extend the normal useful life of an asset, are charged to operations as incurred. Upon sale or other disposition of assets, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or income (loss) is reflected in income.

Depreciation and amortization are provided for financial reporting purposes primarily on the straight-line method over the estimated useful lives of the respective assets as follows:

	Estimated
	Useful Life
Transportation equipment	5 years
Office, computer software and equipment	5 years
Furniture and fixtures	5 years
Production equipment	10 years
Building and improvements	20 years

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) September 30, 2015

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

CASH AND CASH EQUIVALENTS

The Company invests idle cash primarily in money market accounts, certificates of deposits and short-term commercial paper. Money market funds and all highly liquid debt instruments with an original maturity of three months or less are considered cash equivalents.

INTANGIBLE ASSETS

The Company adopted the provisions of ASC Topic 350 (formerly SFAS No. 142, Goodwill and Other Intangible Assets), according to which goodwill and indefinite lived intangible assets are not amortized, but are reviewed annually for impairment, or more frequently, if indications of possible impairment exist. The Company has performed the requisite annual transitional impairment tests on intangible assets and made the impairment adjustments as necessary. All goodwill and indefinite lived intangible assets had been written down to zero in the prior years.

INCOME TAXES

Income tax expense is based on reported income before income taxes. Deferred income taxes reflect the effect of temporary differences between assets and liabilities that are recognized for financial reporting purposes and the amounts that are recognized for income tax purposes. In accordance with ASC Topic 740 (formerly SFAS No. 109, “Accounting for income taxes”) these deferred taxes are measured by applying currently enacted tax laws.

The Company did not provide any current or deferred income tax provision or benefit for any period presented to date because it has experienced operating losses since inception. The benefit of any tax income (loss) carry forwards is fully offset by a valuation allowance, as there is a more than fifty percent chance that the Company will not realize those benefits.

There are net operating loss carry forwards allowed under the Hong Kong and China Governments’ tax system.

RESEARCH AND DEVELOPMENT COSTS

Company sponsored research and development costs, related to both present and future products, are charged to operations when incurred and are included in operating expenses. Expenditures for research and development for the nine months period ended September 30, 2015 and 2014 were both $0 and a cumulative amount of $8,880,206 for the period from June 4, 1997 (inception) to September 30, 2015.

SHIPPING AND HANDLING

Costs relating to shipping and handling are part of general and administrative expenses in the unaudited consolidated statements of operations and comprehensive loss. Insignificant amount of shipping and handling costs incurred during the nine months ended September 30, 2015 and 2014.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) September 30, 2015

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

EARNING (LOSS) PER SHARE

Basic earnings (loss) per common share ("LPS") is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per common share is calculated by adjusting the weighted average outstanding shares, assuming conversion of all potentially dilutive stock options.

There were no stock options and potentially dilutive securities outstanding at September 30, 2015.

EQUITY BASED COMPENSATION

The Company accounts for employee stock options in accordance with ASC Topic 718, (formerly SFAS 123(R),“Share-Based Payment.”) which requires that share-based payment transactions be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, or vesting period. The Company had no such compensation expense for the nine months ended September 30, 2015 and 2014.

COMPARATIVE FIGURES

Certain comparative figures have been reclassified in order to conform with the presentation adopted in the current period.

COMPREHENSIVE INCOME (LOSS)

The accompanying financial statements are presented in U.S. dollars. The functional currency is the RMB. The financial statements are translated into U.S. dollars from RMB at year-end exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. Currency translation adjustments are presented as other comprehensive income.

RECENTLY ADOPTED ACCOUNTING STANDDARDS

In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. The new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The adoption of ASU 2014-08 is not expected to have a material impact on the Company’s consolidated financial statements.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) September 30, 2015

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

In February 2013, the FASB issued guidance that clarifies the scope of transactions subject to disclosures about offsetting assets and liabilities. The guidance requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. This guidance is effective for annual and interim reporting periods beginning on or after January 1, 2013 on a retrospective basis. The adoption of this guidance did not have a material impact on the Company’s disclosures in the condensed consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The guidance in this update supersedes the revenue recognition requirements in Topic 605 Additionally, this update supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition — Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of Topic 360, Property, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification., Plant, and Equipment, and intangible assets within the scope of Topic 350, Intangibles — Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement (including the constraint on revenue) in this update. This ASU is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2016 for public companies and 2017 for non-public companies. Management is evaluating the effect, if any, on the Company’s financial statements.

In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation: Topic 718. This amendment requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not expect the adoption of this guidance will have a significant impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Company does not expect that the adoption of this standard will have a material effect on the Company’s consolidated financial statements.

In November 2014, FASB issued Accounting Standards Update No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). The amendments permit the use of the Fed Funds Effective Swap Rate (also referred to as the Overnight Index Swap Rate, or OIS) as a benchmark interest rate for hedge accounting purposes. Public business entities are required to implement the new requirements in fiscal years (and interim periods within those fiscal years) beginning after December 15, 2015. All other types of entities are required to implement the new requirements in fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. The Company does not expect the adoption of ASU 2014-16 to have material impact on the Company’s consolidated financial statement.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED Notes to condensed consolidated financial statements (Unaudited) September 30, 2015

3. LONG TERM INVESTMENT

On January 5, 2010, the Company invested in Cangshan Duoha Vegetable Food Company (“Duoha”) with 50,000 shares of the Company’s common stock worth $10,000 as $0.2 per share to acquire 20% equity interest in of Duoha. According to the investment agreement, although we own 20% equity of Duoha, we do not have significant influence over Duoha’s operating and financing policies. Therefore, the management of the Company implemented the cost method to account above investment.

In the May of 2015, we signed an investment agreement with Guizhou Biology Technology Ltd. According to the investment agreement, the Company invested RMB 500,000 to acquire 20% equity interest in of Guizhou. Although we own 20% equity of Guizhou, we do not have significant influence over Guizhou’s operating and financing policies. Until September 30, 2015, the company invested RMB 380,000 to Guizhou, and will invest RMB 120,000 in the coming days of 2015.

4. INCOME TAXES

Net operating loss carry forwards are allowed under the Hong Kong and Chinese governments’ tax systems. In China, the previous five years’ net operating losses are allowed to be carried forward to offset future taxable income. In Hong Kong, net operating losses can be carried forward indefinitely to offset future taxable income. No deferred tax asset has been recognized due to the uncertainty of the Company having future taxable profits.

5. COMMITMENTS AND CONTINGENCIES

From time to time, the Company has disputes that arise in the ordinary course of its business. Currently, according to management, there are no material legal proceedings to which the Company is a party to or to which any of their property is subject that will have a material adverse effect on the Company’s financial condition.

6. SUBSEQUENT EVENTS

Management has considered all events occurring through the date the financial statements have been issued, and has determined that there are no such events that are material to the financial statement.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our financial statements and the notes thereto.

Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q, including the following “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains “forward-looking statements” relating to the business of China Longyi Group International Holdings Limited and its subsidiary companies. The forward-looking statements include, among others, statements concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. These statements are based on assumptions and are subject to known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Risks and uncertainties include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; and any of the factors mentioned in the “Risk Factors” section of the Company’s annual report on Form 10-K filed on ~~March~~April 3114, ~~2015~~2016. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by law, we assume no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available in the future.

Use of Certain Defined Terms

Except as otherwise indicated by the context, references in this report to:

• “Beijing SOD” are references to Beijing Longyi Biology Technology Co. Ltd., our indirect, 90% owned subsidiary, a PRC company; • “China” and “PRC” are references to the People’s Republic of China; • “China Longyi,” “we,” “us,” “our,” or the “Company” are references to the combined business of China Longyi Group International Holdings Limited (formerly known as Minghua Group International Holdings Limited) and/or its consolidated subsidiaries, as the case may be; • “Chongqing SOD” are references to Chongqing JiuZhou Dismutase Biology Technology Co., Ltd., our indirect, majority-owned subsidiary, a PRC company; • “Exchange Act” ~~mean~~means the Securities Exchange Act of 1934, as amended; • “RMB” ~~refer~~refers to Renminbi, the legal currency of China; • “Securities Act” ~~mean~~means the Securities Act of 1933, as amended; • “Top Time” are references to Top Time International Limited, our indirect wholly-owned subsidiary, a Hong Kong company; and • “U.S. dollar,” “$” and “US$” are to the legal currency of the United States.

Overview of our Business

We are a holding company that only operates through our indirect Chinese subsidiaries Beijing SOD and Chongqing SOD. Through our Chinese subsidiaries, we develop, manufacture and market our SOD products in China. SOD is a naturally occurring enzyme which may act as a potent antioxidant defense in cells that are exposed to oxygen. Certain research has shown that under certain biological conditions, SOD revitalizes cells and reduces the rate of cell destruction. It neutralizes the most common free radical—superoxide radical—by converting it into hydrogen peroxide and water. Because superoxide is harmful to human cells, and certain forms of SOD exist naturally in most humans, many studies show that SOD is valuable in protecting human cells from the harmful effects of superoxide. SOD is thought to be more powerful than antioxidant vitamins as it activates the body's productions of its own antioxidants. As a result, SOD is referred to as the “enzyme of life.” Commercially, SOD has a wide range of applications and is widely applied in foods, drinks, skin care productions, pharmaceuticals, to combat ailments ranging from sunburn to rheumatoid arthritis.

1814

~~Third~~First Quarter of ~~2015~~2016 Financial Performance Highlights

The following are some financial highlights for the three months ended ~~September~~March 3031, ~~2015~~2016:

• Revenue: Revenue increased $~~153~~12,~~976~~906, to $~~153~~16,~~976~~466 for the three months ended ~~September~~March 3031, ~~2015~~2016, from $03,560 for the same period in ~~2014~~2015. • Expense from operations: Expense from operations ~~increased~~decreased $1635,~~571~~657, or 1525.7763%, to $~~121~~103,~~637~~486 for the three months ended ~~September~~March 3031, ~~2015~~2016, from $~~105~~139,~~066~~143 for the same period in ~~2014~~2015. • Net loss: Net loss decreased $~~135~~51,~~013~~513, or ~~114~~37.1122%, to ~~a net income of~~ $1686,~~698~~894 for the three months ended ~~September~~March 3031, ~~2015~~2016, from ~~a net loss of~~ $~~(118~~138,~~315)~~407 for the same period in ~~2014~~2015. • Fully diluted net income per share: Fully diluted net loss per share was $0 for the three months ended ~~September~~March 3031, ~~2015~~2016, as compared to $0 for the same period in ~~2014~~2015.

Provision for Income Taxes

• United States: China Longyi Group International Holding Limited is subject to United States tax at a tax rate of 34%. No provision for income taxes in the United States has been made as China Longyi Group International Holding Limited had no income subject to United States taxation in the ~~third~~first quarter of ~~2015~~2016. • British Virgin Islands: Our wholly owned subsidiary Top Team Holdings Limited was incorporated in the British Virgin Islands, or the BVI, and, under the current laws of the BVI, is not subject to income taxes. • China: Before the implementation of the enterprise income tax, or EIT, Foreign Invested Enterprises or FIEs, established in the PRC were generally subject to an EIT rate of 33.0%, which includes a 30.0% state income tax and a 3.0% local income tax. On March 16, 2007, the National People’s Congress of China passed the new Corporate Income Tax Law, or EIT Law, and on November 28, 2007, the State Council of China passed the Implementing Rules for the EIT Law, or Implementing Rules, which took effect on January 1, 2008. The EIT Law and Implementing Rules impose a unified EIT of 25.0% on all domestic- invested enterprises and FIEs, unless they qualify under certain limited exceptions. Therefore, nearly all FIEs are subject to the new tax rate alongside other domestic businesses rather than benefiting from the old tax laws applicable to FIEs, and its associated preferential tax treatments, beginning January 1, 2008. Despite these pending changes, the EIT Law gives the FIEs established before March 16, 2007, or Old FIEs, such as our subsidiaries Beijing SOD and Chongqing SOD, a five-year grandfather period during which they can continue to enjoy their existing preferential tax treatments. During this five-year grandfather period, the Old FIEs which enjoyed tax rates lower than 25% under the original EIT Law shall gradually increase their EIT rate by 2% per year until the tax rate reaches 25%. In addition, the Old FIEs that are eligible for the “two-year exemption and three-year half reduction” or “five-year exemption and five-year half-reduction” under the original EIT Law, are allowed to remain to enjoy their preference until these holidays expire. The discontinuation of any such special or preferential tax treatment or other incentives would have an adverse effect on any organization’s business, fiscal condition and current operations in China. In addition to the changes to the current tax structure, under the EIT Law, an enterprise established outside of China with “de facto management bodies” within China is considered a resident enterprise and will normally be subject to an EIT of 25.0% on its global income. The Implementing Rules define the term “de facto management bodies” as “an establishment that exercises, in substance, overall management and control over the production, business, personnel, accounting, etc., of a Chinese enterprise.” If the PRC tax authorities subsequently determine that we should be classified as a resident enterprise, then our consolidated global income will be subject to PRC income tax of 25.0% .

1915

WeIn ~~incurred~~addition noto the changes to the current tax structure, under the EIT Law, an enterprise established outside of China with “de facto management bodies” within China is considered a resident enterprise and will normally be subject to an EIT of 25.0% on its global income. The ~~taxes~~Implementing inRules ~~either~~define the ~~three~~term ~~months~~“de ~~ended~~facto management bodies” as “an ~~September~~establishment 30that exercises, ~~2015~~in orsubstance, overall management and control over the ~~three~~production, ~~months~~business, ~~ended~~personnel, ~~September~~accounting, 30etc., ~~2014~~of a Chinese enterprise.” If the PRC tax authorities subsequently determine that we should be classified as a resident enterprise, then our consolidated global income will be subject to PRC income tax of 25.0% .

We incurred no income taxes in either the three months ended March 31, 2016 or the three months ended March 31, 2015.

Results of Operations

Three Months Ended ~~September~~March 3031, ~~2015~~2016 Compared to Three Months ended ~~September~~March 3031, ~~2014~~2015

The following table summarizes the results of our operations for the three months ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015 and provides information regarding the dollar and percentage increase or (decrease) from the three months ended ~~September~~March 3031, ~~2014~~2015 to the same period of ~~2015~~2016.

		Three Months Ended
		September 30,						Increase		% Increase
		March 31,						Increase		% Increase
Item		~~2015~~2016			~~2014~~2015			(Decrease)		(% Decrease)
Revenue	$	~~153~~16,~~976~~466		$	03,560		$	~~153~~12,~~976~~906		-362.53%
Cost of Revenue		~~185~~16,~~308~~466			04,165			~~185~~12,~~308~~301		-295.34%
Gross Profit		~~(31,332~~0	)		0(605	)		~~(31,332~~605	)	-100%
Operating Expenses		~~121~~103,~~637~~486			~~105~~139,~~066~~143			16(35,~~571~~657	)	15(25.7763%	)
Other Income (expense)		~~169~~16,~~667~~592			~~(13~~1,~~249~~341	)		~~182~~15,~~916~~251		~~1380~~1137.6029%
Provision for Taxes		-			-			-		-
Net loss attributable to China Longyi	$	1479,~~909~~377		$	~~(110~~130,~~164~~992	)	$	(~~125~~51,~~073~~615	)	(~~113,53~~39.40%	)

Revenues. Our revenues ~~were~~are ~~historically~~ derived primarily from sales of our SOD products. ~~Revenues~~Our revenues increased $~~153~~12,~~976~~906, to $~~153~~16,~~976~~466 for the three months ended ~~September~~March 3031, ~~2015~~2016, from $03,560 for the same period in ~~2014~~2015. The increase in revenues was due to more SOD products being sold ~~in 2015~~for ~~as compared with~~ the ~~same~~three months ~~period~~ended ofMarch ~~2014. During the third quarter of 2015~~31, we ~~sold~~2016 ~~SOD~~compared ~~Fruit~~with ~~Enzymes produced in our Henan Tian Jie Shan factory while during~~ the same period of ~~2014 we did not sell any products~~2015.

Cost of Revenues. Our cost of revenues is primarily comprised of the costs of our raw materials, labor and overhead. As a result of our increased manufacturing activities during the ~~third~~first quarter of ~~2015~~2016, our cost of revenues increased $~~185~~12,~~308~~301, to $~~185~~16,~~308~~466 for the three months ended ~~September~~March 3031, ~~2015~~2016, from $04,165 during the same period in ~~2014~~2015.

Gross Profit. Our gross profit ~~decreased~~increased by $31605,~~332,~~ to ~~$(31,332)~~ $0 for the three months ended ~~September~~March 3031, ~~2015~~2016 from $0(605) during the same period in ~~2014~~ 2015. The ~~change of~~ gross profit isincreased mainly ~~attributable~~due to ~~the promotion~~more ~~event.~~SOD ~~During~~products ~~the~~being ~~promotion period, we~~ sold ~~some~~for the ofthree ~~new~~months ~~products (Fruit~~ended ~~enzyme)~~March at31, a2016 ~~preferential~~compared ~~price~~with tothe ~~our~~same ~~selected~~period ~~customers.~~of 2015.

Operating Expenses. Our total operating expenses for the three months ended ~~September~~March 3031, ~~2015~~2016 ~~increased~~decreased $1635,~~571~~657, or 1525.7763%, to $~~121~~103,~~637~~486, from $~~105~~139,~~066~~143 for the same period in ~~2014~~2015. This ~~increase~~decrease was mainly ~~because~~attributable to the fact that we paid ~~more~~less professional and financial ~~consulting~~consultation fees tofor the ~~our~~three ~~financial~~months ~~consulting~~ended ~~service~~March ~~provider as~~31, 2016 compared with the same period of ~~2014~~2015.

~~Other~~16 Income (expense). Other income was $169,667 during the three months ended September 30, 2015, an increase of $182,916 from an expense of $(13,249) during a same period in 2014. Such increase mainly came from the income from a part of the sold inventory which was not recognized when the manufacturing facility was acquired by us. Such value was written off when it was consolidated into Beijing SOD.

20Other Income (expense). Other income was $16,592 during the three months ended March 31, 2016, an increase of $15,251 from income of $1,341 during a same period in 2015.

Net ~~Income (~~Loss) attributable to China Longyi. As a result of above facts, our net ~~income~~loss ~~increased~~decreased by $~~125~~51,~~073~~615, or ~~113~~39.5340%, to $1479,~~909~~377 for the three months ended ~~September~~March 3031, ~~2015~~2016, from ~~a net loss of~~ $~~(110~~130,~~164)~~992 for the same period in ~~2014~~2015.

Nine Months Ended September 30, 2015 Compared to Nine Months ended September 30, 2014

The following table summarizes the results of our operations for the nine months ended September 30, 2105 and 2014 and provides information regarding the dollar and percentage increase or (decrease) from the nine months ended September 30, 2014 to the same period of 2015.

		Nine Months Ended
		September 30,						Increase		% Increase
Item		2015			2014			(Decrease)		(% Decrease)
Revenue	$	163,119		$	0		$	163,119		-
Cost of Revenue		206,167			0			206,167		-
Gross Profit		(43,048	)		0			(43,048	)	-
Operating Expenses		363,965			367,795			(3,830	)	(1.04%	)
Other Income (expense)		188,979			(10,682	)		199,661		1869.13%
Provision for Taxes		-			-			-		-
Net loss attributable to China Longyi	$	(204,549	)	$	(354,688	)	$	(150,139	)	(42.33%	)

Revenues. Revenues increased $163,119, to $163,119 for the nine months ended September 30, 2015, from $0 for the same period in 2014. The increase in revenues was due to SOD products being sold in 2015. We produced SOD Fruit Enzymes as our new products in our Henan Tian Jie Shan factory. During the period of nine months ended September 30, 2015, we also held promotion events in order to introduce new SOD products, and sold some new products at a preferential price to our selected customers.

Cost of Revenues. Due to our manufacturing activities, our cost of revenues increased $206,167, to $206,167 for the nine months ended September 30, 2015, from $0 during the same period in 2014.

Gross Profit. Our gross profit decreased by $43,048, to $(43,048) for the nine months ended September 30, 2015 from $0 during the same period in 2014. The gross profit decreased as a result of the Company’s promotion events. During the promotion period, we sold some new products at a preferential price to our selected customers.

Operating Expenses. Our total operating expenses for the nine months ended September 30, 2015 decreased $3,830, or 1.04%, to $363,965, from $367,795 for the same period in 2014. This decrease was mainly because we paid less financial consulting fees to our financial consulting service provider as compared with the same period of 2014.

Other Income (expense). Other income was $188,979 during the nine months ended September 30, 2015, an increase of $199,661 from other expense of $(10,682) during a same period in 2014. Such increase mainly came from the income from a part of the sold inventory which was not recognized when the manufacturing facility was acquired by us. Such value was written off when it was consolidated into Beijing SOD.

Net Loss attributable to China Longyi. As a result of above facts, our net loss decreased by $150,139, or 42.33%, to $(204,549) for the nine months ended September 30, 2015, from $(354,688) for the same period in 2014.

Liquidity and Capital Resources

We had $2722,~~490~~000 in cash and cash equivalents as of ~~September~~March 3031, ~~2015~~2016. As of such date, we also had total current assets of $~~506~~446,~~247~~291 and total assets of $~~909~~850,~~761~~399. We had total current liabilities (consisting of accounts payable, accrued liabilities, due to directors and other payables) in the amount of $12,~~899~~057,~~382~~825. Our stockholders’ equity as of ~~September~~March 3031, ~~2015~~2016 was $(~~989~~1,~~621~~207,426). Since inception, we have accumulated a net loss of $~~(30~~31,~~858~~076,~~724)~~284.

The following table summarizes the statements of cash flows from the financial statements for the ~~nine~~three months ended ~~September~~March 3031, ~~2015 compared~~2016 compared to the ~~nine~~three months ended ~~September~~March 3031, ~~2014~~2015:

		Nine Months Ended
		Three Months Ended
		September 30,
		March 31,
		2015			2014
		2016			2015
Net Cash Provided By/(Used In) Operating Activities	$	52(17,~~287~~428	)	$	~~(249~~60,~~275~~853	)
Net Cash Provided By/(Used In) Investing Activities		~~(67,219~~-	)		-
Net Cash Provided By/(Used In) Financing Activities		(67,~~479~~087	)		~~222~~(1,~~970~~629	)
Effect of foreign exchange rate fluctuation		2,~~535~~912			15(1,~~827~~541	)
Net increase (decrease) in Cash and Cash Equivalents		(187,~~876~~ 429	)		~~(10~~57,~~478~~683	)
Cash and Cash Equivalents - Beginning of Period		4629,~~366~~429			2046,~~715~~366
Cash and Cash Equivalents – End of Period		2722,~~490~~000			10104,~~237~~049

Operating Activities

Net cash ~~provided~~used byin operating activities was $5217,~~287~~428 for the ~~nine~~three-month period ended ~~September~~March 3031, ~~2015~~2016 representing ana ~~increase~~decrease of $~~301~~78,~~562 from~~281 from $~~(249~~60,~~275)~~853 of net cash ~~used~~provided inby the operating activities for the same period of ~~2014~~of 2015. The ~~increase~~decrease of the cash provided by operating activities was mainly ~~attributed~~attributable to the fact that there was a change of other payables and ~~net~~deposits and ~~loss~~prepayment. Cash provided ~~from~~by other payable was $~~278~~68,~~867~~474 infor ~~2015~~the three months ended March 31, ~~compared~~2016, towhile the cash provided from other payables was $57181,~~995 in~~051 ~~2014~~in the same period of 2015. ~~Net~~Cash ~~loss~~used in deposits and prepayment was $~~218~~(18,~~034~~377) for inthe ~~2015~~three asmonths ~~compared~~ended toMarch ~~net~~31, ~~loss~~2016 ofas compared with $~~378~~8,~~477~~147 in ~~2014.~~the same period of 2015.

Investing Activities

Net cash used in investing activities for the ~~nine~~three-month ~~period~~ period ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015 was $~~(67,219)~~0 and $0, respectively. In May 2015, we entered into an investment agreement with Guizhou Biology Technology Ltd. (“Guizhou Biology”). According to the investment agreement, the Company agreed to invest RMB 500,000 to acquire 20% equity interest in Guizhou Biology. By September 30, 2015, the Company had paid RMB 380,000 to Guizhou Biology.

Financing Activities

Net cash provided by financing activities for the ~~nine~~three-month period ended ~~September~~March 3031, ~~2015~~2016 was $(67,~~479)~~087 as compared to $~~222~~1,~~970~~629 ~~provided~~used ~~by financing~~in financing activities for the same period in ~~2014~~2015. WeSuch ~~repaid~~change was attributable to the fact that we received $67,~~479~~087 ofas ~~the~~a loan from one of our directors during the ~~nine~~first quarter ~~months~~of ~~ended September 30, 2015~~2016.

The Company did not have any bank loans as of ~~September~~March 3031, ~~2015~~2016.

We17 expect to generate approximately $0.8 million to $1.5million of revenues from the sale of our products during the next 12 months. If our cash on hand and cash flow from operations do not meet our expected capital expenditure and working capital requirements for the next 12 months, we expect that our directors will provide more cash as loans to the company. However, we may in the future require additional cash resources due to changed business conditions, implementation of our strategy to expand our production capacity or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

22We expect to generate approximately $0.15 million to $0.25million of revenues from the sale of our products during the next 12 months. If our cash on hand and cash flow from operations do not meet our expected capital expenditure and working capital requirements for the next 12 months, we expect that our directors will provide more cash as loans to the company. However, we may in the future require additional cash resources due to changed business conditions, implementation of our strategy to expand our production capacity or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

Critical Accounting Policies

Economic and Political Risks The Company faces a number of risks and challenges as a result of having primary operations and marketing in the PRC. Changing political climates in the PRC could have a significant effect on the Company’s business.

~~Foreign Currencies~~ The ~~company~~Company ~~has~~faces ~~determined~~a ~~that~~number ~~RMB~~of ~~to be~~risks ~~its~~and ~~functional~~challenges ~~currency.~~as ~~The~~a ~~accompanying~~result of ~~unaudited~~having ~~consolidated~~primary ~~financial statements~~operations ~~are~~and ~~presented~~marketing in ~~U.S.~~the ~~dollars~~PRC. ~~The~~Changing ~~unaudited consolidated financial~~political ~~statements~~climates ~~are~~in ~~translated~~the ~~into~~PRC UScould ~~dollars~~have ~~from~~a ~~RMB~~significant ateffect ~~year-end~~on ~~exchange rates for assets and liabilities, and weighted average exchange rates for revenues and expenses. Capital accounts are translated at their historical exchange rates when~~ the ~~capital~~Company’s ~~transactions occurred~~business.

		September 30,			December 31,
	2015		2014		2014
	RMB	HK$	RMB	HK$	RMB	HK$
Balance sheet items, except for equity accounts	6.3613	7.7500	6.1525	7.7638	6.1190	7.7567
Items in the statements of income and comprehensive income, and the statements of cash flows	6.1738	7.7528	6.1442	7.7541	6.1424	7.7544

Foreign Currencies

~~Use of Estimates~~ The ~~preparation~~company ofhas ~~financial~~determined ~~statements~~that ~~in conformity~~RMB ~~with~~to ~~accounting~~be ~~principles~~its ~~generally~~functional currency. ~~accepted~~The inaccompanying ~~the~~audited ~~United~~consolidated ~~States~~financial ofstatements are ~~America~~presented ~~requires~~in ~~management~~U.S. todollars. ~~make~~The ~~estimates~~audited ~~and~~consolidated ~~assumptions~~financial ~~that~~statements ~~affect the~~are ~~reported~~translated ~~amounts~~into ofUS ~~assets~~dollars ~~and~~from ~~liabilities~~RMB ~~and~~at ~~disclosure~~year-end ofexchange ~~contingent~~rates for assets ~~and~~ and liabilities, atand ~~the~~weighted ~~date~~average ofexchange ~~the~~rates ~~financial~~for ~~statements~~revenues and ~~reported amounts of~~expenses. ~~revenues~~Capital ~~and~~accounts ~~expenses~~are ~~during~~translated ~~the~~at ~~reporting~~their ~~period.~~historical ~~Actual~~exchange ~~results~~rates ~~could~~when ~~differ~~the ~~from~~capital ~~those~~transactions ~~estimates~~occurred.

Significant Estimates Several areas require significant management estimates relating to uncertainties for which it is reasonably possible that there will be a material change in the near term. The more significant areas requiring the use of management estimates related to determination of net realizable value of inventory, allowance for doubtful accounts, property and equipment, accrued liabilities and, the useful lives for depreciation.

	March 31,				December 31,
	2016		2015		2015
	RMB	HK$	RMB	HK$	RMB	HK$
Balance sheet items, except for equity accounts	6.4612	7.7542	6.1422	7.7544	6.4936	7.7510

Items in the statements of income and comprehensive income, and the statements of cash flows	6.5301	7.7738	6.1373	7.7547	6.2272	7.7522

~~Restrictions~~Use ~~on Transfer~~ of ~~Assets~~Estimates Out of the PRC Dividend payments by Beijing SOD are limited by certain statutory regulations in the PRC. No dividends may be paid by Beijing SOD without first receiving prior approval from the Foreign Currency Exchange Management Bureau. Dividend payments are restricted to 85% of profits, after tax.

~~Revenue Recognition~~ The ~~Company~~preparation ~~recognizes~~of ~~revenue~~financial statements in ~~accordance~~ conformity with accounting ~~Staff~~principles ~~Accounting~~generally ~~Bulletin~~accepted ~~No.104~~in ~~“Revenue~~the ~~recognition”~~United ~~(“ASC Topic~~States ~~605”).~~of ~~Revenues~~America requires ~~are~~management ~~recognized~~to asmake ~~earned~~estimates ~~when~~and ~~the~~assumptions ~~following~~that ~~four~~affect ~~criteria~~the reported ~~are~~amounts ~~met:~~of ~~(1)~~assets aand ~~customer~~liabilities ~~issues~~and ~~purchase~~disclosure ~~orders~~of orcontingent ~~otherwise~~assets ~~agrees to purchase~~and ~~products;~~liabilities ~~(2)~~at ~~products~~the ~~are~~date ~~delivered~~of to the ~~customer;~~financial ~~(3)~~statements ~~pricing~~and isreported ~~fixed~~amounts orof ~~determined~~revenues inand ~~accordance~~expenses ~~with~~during the ~~purchase~~reporting ~~order~~period. orActual ~~agreement;~~results ~~and~~could ~~(4)~~differ ~~collectability~~from isthose ~~reasonably assured~~estimates.

23Significant Estimates

Restrictions on Transfer of Assets Out of the PRC

Dividend payments by Beijing SOD are limited by certain statutory regulations in the PRC. No dividends may be paid by Beijing SOD without first receiving prior approval from the Foreign Currency Exchange Management Bureau. Dividend payments are restricted to 85% of profits, after tax.

Revenue Recognition

The Company recognizes revenue in accordance with Staff Accounting Bulletin No.104 “Revenue recognition” (“ASC Topic 605”). Revenues are recognized as earned when the following four criteria are met: (1) a customer issues purchase orders or otherwise agrees to purchase products; (2) products are delivered to the customer; (3) pricing is fixed or determined in accordance with the purchase order or agreement; and (4) collectability is reasonably assured.

Inflation

Inflation does not materially affect our business or the results of our operations.

Seasonality

We may experience seasonal variations in our future revenues and our operating costs, however, we do not believe that these variations will be material.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.

ITEMS 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures’

Our management, with the participation of our chief executive officer and chief financial officer, Ms. Jie Chen and Mr. Xinmin Pan, respectively, evaluated the effectiveness of our disclosure controls and procedures. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports, such as this report, that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on that evaluation, Ms. Jie Chen and Mr. Xinmin Pan concluded that as of ~~September~~March 3031, ~~2015~~2016, our disclosure controls and procedures were effective at the reasonable assurance level.

Internal Controls Over Financial Reporting

During the quarter ended ~~September~~March 3031, ~~2015~~2016, there were no ~~changes~~ changes in our internal control over financial reporting identified in connection with the evaluation performed that occurred during the fiscal quarter covered by this report that has materially affected, or is reasonably likely to ~~materially~~ materially affect, our internal control over financial reporting.

2419

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, the Company has disputes that arise in the ordinary course of its business. Currently, there are no material legal proceedings to which the Company is a party to or to which any of its property is subject that will have a material adverse effect on the Company's financial condition.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 2. UNREGISTERED SHARES OF EQUITY SECURITIES AND USE OF PROCEEDS

We have not sold any equity securities during the fiscal quarter ended ~~September~~March 3031, ~~2015~~2016 that were not previously disclosed in a current report on Form 8-K that was filed during that period.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibit Number	Description
Exhibit
Number	Description
31.1	Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial information from The China Longyi Group International Holdings Limited's Quarterly Report on Form 10-Q for the quarter ended ~~September~~March 3031, ~~2015~~2016, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets at ~~September~~March 3031, ~~2015~~2016 and December 31, ~~2014~~2015, (ii) Consolidated Statements of Operations and Comprehensive Loss for the three ~~and nine months~~ ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015, (iii) Consolidated Statements of Cash Flows for the ~~nine~~six months ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015, and (iv) the Notes to Consolidated Financial Statements.

2520

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED
DATED: November 13, 2015
DATED: May 19, 2016
	By: /s/ Jie Chen
	-------------------------------------
	Jie Chen
	Chief Executive Officer
	(Principal Executive Officer)
DATED: November 13, 2015	By: /s/ Xinmin Pan
DATED: May 19, 2016	By: /s/ Xinmin Pan
	-------------------------------------
	Xinmin Pan
	Chief Financial Officer
	(Principal Financial Officer and Accounting Officer)

2621

EXHIBIT INDEX

Exhibit Number	Description
Exhibit
Number	Description
31.1	Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial information from The China Longyi Group International Holdings Limited's Quarterly Report on Form 10-Q for the quarter ended ~~September~~March 3031, ~~2015~~2016, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets at ~~September~~March 3031, ~~2015~~2016 and December 31, ~~2014~~2015, (ii) Consolidated Statements of Operations and Comprehensive Loss for the three ~~and nine months~~ ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015, (iii) Consolidated Statements of Cash Flows for the ~~nine~~six months ended ~~September~~March 3031, ~~2015~~2016 and ~~2014~~2015, and (iv) the Notes to Consolidated Financial Statements.

2722

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