UNITED 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 30, 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 11, 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	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20
Item 4	Controls and Procedures	20

	PART II Other Information

Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3.	Defaults Upon Senior Securities	21
Item 4.	Mine Safety Disclosures	21
Item 5.	Other Information	21
Item 6.	Exhibits	21

Part I – FINANCIAL INFORMATION

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

September 30, 2016

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS

		Unaudited			Audited
		September 30,			December 31,
ASSETS		2016			2015
Current assets
Cash and cash equivalents	$	152,912		$	29,429
Inventories		333,210			359,194
Account receivables		175,775			5,544
Due from directors		8,099			-
Other receivables		77,815			26,508
Deposits and prepayments		103,523			14,447
Total current assets		851,334			435,122

Investment		85,099			87,512
Property, plant and equipment (net)		295,266			320,386
	$	1,231,699		$	843,020

LIABILITIES AND EQUITY
Current liabilities
Short-term loan	$	-		$	58,519
Accounts payable		1,468			4,869
Accrued liabilities		452,837			192,306
Due to directors		590,134			627,832
Due to related parties		394,247			417,653
Other payables		580,377			660,868
Total current liabilities		2,019,063			1,962,047

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		(30,731,204	)		(30,996,907	)
Other comprehensive income		227,473			204,099
Stockholders' equity (deficit)		(849,633	)		(1,138,710	)
Noncontrolling interest		62,269			19,683
Total Equity		(787,364	)		(1,119,027	)
	$	1,231,699		$	843,020

See notes to unaudited condensed consolidated interim financial statements

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

		Three months ended						Nine months ended
		September 30,						September 30,
		2016			2015			2016			2015
Revenues
Sales	$	1,034,223		$	153,976		$	1,675,034		$	163,119
Cost of sales		687,311			185,308			1,158,944			206,167
Gross margin		346,912			(31,332	)		516,090			(43,048	)
Operating expenses
General and administrative expenses		301,162			121,637			578,100			363,965
		301,162			121,637			578,100			363,965
Profit (Loss) from operations		45,750			(152,969	)		(62,010	)		(407,013	)
Other income (expense)
Interest income		87			6			98			55
Other income (expense)		195,764			179,750			392,186			193,710
Foreign exchange gain (loss)		210			(10,089	)		(15,993	)		(4,786	)
Interest expense		154			-			(8,946	)		-
		196,215			169,667			367,345			188,979
Income (Loss) before income tax and noncontrolling interest		241,965			16,698			305,335			(218,034	)
Income tax		-			-			-			-
Net Income (loss)		241,965			16,698			305,335			(218,034	)
Less: Net income (loss) attributable to noncontrolling interest		(25,272	)		(1,789	)		(39,632	)		13,485
Net income (loss) attributable to the Company	$	216,693		$	14,909		$	265,703		$	(204,549	)

Basic and diluted income (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 income (loss)
Net Income (loss)	$	241,965		$	16,698		$	305,335		$	(218,034	)
Foreign currency translation		(1,144	)		32,528			26,328			26,106
Comprehensive income (loss)		240,821			49,226			331,663			-191,928

Comprehensive income (loss) attributable to noncontrolling interest		493			6,352			42,586			-8,950
Comprehensive income (loss) attributable to the Company	$	240,328		$	42,874		$	289,077		$	(182,978	)

See notes to unaudited condensed consolidated interim financial statements

CHINALONGYI GROUP INTERNATIONAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

		Nine months ended September 30,
		2016			2015
Cash flows from operating activities:
Net income ( loss)	$	305,335		$	(218,034	)
Adjustments to reconcile net income (loss) to net cash used in operations:
Depreciation and amortization		22,869			17,855
Changes in operating assets and liabilities:
Accounts receivables		(173,029	)		-
Other receivables		(52,846	)		(55,496	)
Due from directors		(8,225	)		-
Deposits and prepayment		(90,864	)		(9,099	)
Inventory		16,326			6,064
Other payables		203,929			278,867
Due to related parties		(17,375	)		32,130
Accounts payable and accrued liabilities		(3,318	)		-
Net cash provided by operations		202,802			52,287

Cash flows from investing activities:
Purchase of investment		-			(61,551	)
Purchases of property and equipment		(6,335	)		(5,668	)
Net cash (used in) investing activities		(6,335	)		(67,219	)

Cash flows from financing activities:
Proceeds (repayments) of short term loans		(57,788	)		-
Proceeds (repayments) loans from directors		(23,886	)		(6,479	)
Net cash (used in) financing activities		(81,674	)		(6,479	)
Effect of foreign exchange rate fluctuation		8,690			2,535
Increase(decrease) in cash and cash equivalents		123,483			(18,876	)
Cash and cash equivalents, beginning of period		29,429			46,366
Cash and cash equivalents, end of period	$	152,912		$	27,490

Supplemental disclosures of cash flow information:
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

See notes to unaudited condensed consolidated interim financial statements

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED
Notes to unaudited condensed consolidated interim financial statements
September 30, 2016

The accompanying unaudited consolidated interim 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. These unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The unaudited condensed consolidated interim 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. BUSINESS DESCRIPTION AND ORGANIZATION

The following chart reflects our organizational structure as of the date of this report.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LIMITED
Notes to unaudited condensed consolidated interim financial statements
September 30, 2016

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 September 30, 2016, the Company has a working capital deficiency of $1,167,729 and accumulated deficit from recurring net losses of $30,731,204 incurred for the current and prior years as of September 30, 2016. As at September 30, 2016, the Company has cash and cash equivalents of $152,912.

	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 condensed consolidated interim 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.

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

	PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

	The unaudited condensed consolidated interim 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 condensed consolidated interim 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 condensed consolidated interim financial statements are presented in United States (US) dollars. The unaudited condensed consolidated interim 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.

CHINA LONGYI GROUP INTERNATIONAL HOLDINGS LTD 10-Q