UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended ~~March~~June 3130, 2023

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

For the transition period from ____________ to ____________

Commission File Number: 333-239929

KENONGWO GROUP US, INC.

(Exact name of registrant as specified in its charter)

Nevada		37-1914208
(State or other jurisdiction of		(IRS Employer
incorporation or organization)		Identification No.)

Yangjia Group, Xiaobu Town Yuanzhou District, Yichun City Jiangxi Province, China		336000
(Address of principal executive offices)		(Zip Code)

+86-400-915-2178

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
N/A		N/A		N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One):

Large accelerated filer ☐

Accelerated filer ☐

Non-accelerated filer ☒

Smaller reporting company ☒

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

As of ~~July~~August 2716, 2023, ~~there~~ there were 101,882,485 shares of common stock, $0.0001 par value per share, issued and outstanding.

KENONGWO GROUP US, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page	~~Page~~
PART I FINANCIAL INFORMATION		1	1
Item 1.	Financial Statements	1	1
	Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 (Unaudited)		1
	Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 (Unaudited)	1
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended March 31, 2023 and 2022 (Unaudited)		2
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months EndedJune 30, 2023 and 2022 (Unaudited)	2
	Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2023 and 2022 (Unaudited)		3
	Condensed Consolidated Statements of Stockholders’ Equity for the Six Months Ended June 30, 2023 and 2022 (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows for the Three Months March 31, 2023 and 2022 (Unaudited)		4
	Condensed Consolidated Statements of Cash Flows for the Six Months June 30, 2023 and 2022 (Unaudited)	4
	Notes to Condensed Consolidated Financial Statements (Unaudited)	5	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18	18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	25	23
Item 4.	Controls and Procedures	25	23
PART II OTHER INFORMATION		27	25
Item 6.	Exhibits	27	25

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

KENONGWO GROUP US, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Stated in US Dollars)

	March 31,			December 31,
	June 30,			December 31,
	2023			2022
ASSETS
Current Assets:
Cash and cash equivalents	$	65,~~745~~081		$	234,048
Accounts receivable, net		1,~~987~~628,~~433~~512			1,517,700
Other receivables, net		~~242~~230,~~291~~349			189,118
Inventories		~~624~~621,~~385~~675			571,658
Advances and prepayments to suppliers		96137,~~100~~956			34,475
Total Current Assets		2,~~956~~623,~~954~~573			2,546,999
Plant and equipment, net		1,~~785~~642,~~474~~989			1,818,210
Construction in progress, net		9794,~~551~~384			96,249
Intangible assets, net		4238,~~722~~612			44,345
Total Non-current Assets		1,~~925~~775,~~747~~985			1,958,804
Total Assets	$	4,~~882~~399,~~701~~558		$	4,505,803
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	~~813~~727,~~989~~734		$	912,608
Accrued expenses and other payables		1831,~~265,141~~508			1,074,183
Taxes payable		54,~~899~~818			7,584
Advances from customers		7943,~~906~~421			33,510
Amount due to shareholder		857,~~088~~291			234,849
Due to related parties		~~55,299~~-			54,562
Total Current Liabilities		21,~~228~~664,~~322~~772			2,317,296
Non-Current Liabilities
Long-term loans		~~436~~415,~~573~~179			430,750
Total Liabilities		2,~~664~~079,~~895~~951			2,748,046
Stockholders’ Equity:
Common Stock, $0.0001 par value, 110,000,000 shares authorized; 101,882,485 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively		10,188			10,188
Common Stock, $0.0001 par value, 110,000,000 shares authorized; 101,882,485 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively		10,188			10,188
Paid in capital		3,126,612			3,126,612
Accumulated deficit		(1844,~~052,082~~902	)		(1,501,803	)
Accumulated other comprehensive income		~~133~~27,~~088~~709			122,760
Total Stockholders’ Equity		2,~~217~~319,~~806~~607			1,757,757
Total Liabilities and Stockholders’ Equity	$	4,~~882~~399,~~701~~558		$	4,505,803

The accompanying notes are an integral part of these condensed consolidated financial statements.

KENONGWO GROUP US, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

~~AND COMPREHENSIVE~~(Stated ~~LOSS~~in US Dollars)

(Stated in US Dollars)

	Three months ended June 30, 2023			Three months ended June 30, 2022			Six months ended June 30, 2023			Six months ended June 30, 2022
Revenue	$	1,535,042		$	1,654,237		$	3,653,564		$	3,548,414
Cost of revenues		1,112,454			1,303,451			2,540,897			2,731,878
Gross profit		422,588			350,786			1,112,667			816,536
Operating expenses
Selling and marketing expenses		51,295			54,856			113,816			118,803
General and administrative expenses		154,994			152,377			327,108			437,576
Total operating expenses		206,289			207,233			440,924			556,379

Income from operations		216,299			143,553			671,743			260,157

Other (expenses) income:
Interest expenses		(6,660	)		(8,007	)		(13,518	)		(16,362	)
Other income		614			5,332			3,789			5,491
Other expenses		(3,073	)		(1,007	)		(5,113	)		(1,795	)
Total other (expenses) income		(9,119	)		(3,682	)		(14,842	)		(12,666	)

Income before taxes		207,180			139,871			656,901			247,491
Provision for income taxes		-			-			-			-

Net income	$	207,180			139,871			656,901			247,491

Other comprehensive income (loss):
Foreign currency translation adjustment		(105,379	)		109,243			(95,051	)		70,795
Comprehensive income	$	101,801		$	249,114		$	561,850		$	318,286

Earnings per share
- Basic and diluted	$	-		$	0.07		$	0.01		$	0.13
Basic and diluted weighted average shares outstanding		101,882,485			1,882,485			101,882,485			1,882,485

	For the Three months ended March 31,
	2023			2022
Revenue	$	2,118,522		$	1,894,177
Cost of revenues		1,428,443			1,428,427
Gross profit		690,079			465,750
Operating expenses
Selling and marketing expenses		62,521			63,947
General and administrative expenses		172,114			285,199
Total operating expenses		234,635			349,146
Income from operations		455,444			116,604
Other income (expenses):
Interest expenses		(6,858	)		(8,355	)
Other income		3,175			159
Other expenses		(2,040	)		(788	)
Total other expenses		(5,723	)		(8,984	)
Income before income taxes		449,721			107,620
Provision for income taxes		-			-
Net income	$	449,721		$	107,620
Other comprehensive income (loss):
Foreign currency translation adjustment		10,328			(38,448	)
Comprehensive income	$	460,049		$	69,172
Income per share – Basic and diluted		-			0.06
Basic and diluted weighted average shares outstanding		101,882,485			1,882,485

The accompanying notes are an integral part of these condensed consolidated financial statements.

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~2

2KENONGWO GROUP US, INC.

~~KENONGWO~~UNAUDITED CONDENSED CONSOLIDATED STATEMENTS ~~GROUP~~OF ~~US,~~CHANGES ~~INC.~~IN STOCKHOLDERS’ EQUITY

~~UNAUDITED CONDENSED~~(Stated ~~CONSOLIDATED~~in ~~STATEMENTS~~US ~~OF CHANGES IN STOCKHOLDERS’ EQUITY~~Dollars)

(Stated in US Dollars)

	Number		Common		Paid-in		Accumulated			Accumulated Other Comprehensive
	of Shares		Stock		Capital		Deficit			Loss			Total
Balance, January 1, 2022		1,882,485	$	188	$	494,058	$	(2,436,957	)	$	(41,115	)	$	(1,983,826	)
Net income		-		-		-		107,620			-			107,620
Foreign currency translation adjustment		-		-		-		-			(38,448	)		(38,448	)

Balance, March 31, 2022		1,882,485	$	188	$	494,058	$	(2,329,337	)	$	(79,563	)	$	(1,914,654	)
Net income		-		-		-		139,871			-			139,871
Foreign currency translation adjustment		-		-		-		-			109,243			109,243
Balance, June 30, 2022		1,882,485	$	188	$	494,058	$	(2,189,466	)	$	29,680		$	(1,665,540	)

Balance, January 1, 2023		101,882,485	$	10,188	$	3,126,612	$	(1,501,803	)	$	122,760		$	1,757,757
Net income		-		-		-		449,721			-			449,721
Foreign currency translation adjustment		-		-		-		-			10,328			10,328

Balance, March 31, 2023		101,882,485	$	10,188	$	3,126,612	$	(1,052,082	)	$	133,088		$	2,217,806
Net income		-		-		-		207,180			-			207,180
Foreign currency translation adjustment		-		-		-		-			(105,379	)		(105,379	)

Balance, June 30, 2023		101,882,485	$	10,188	$	3,126,612	$	(844,902	)	$	27,709		$	2,319,607

	Number		Common		Paid-in		Accumulated			Accumulated Other Comprehensive
	of Shares		Stock		Capital		Deficit			Loss			Total
Balance, January 1, 2022		1,882,485	$	188	$	494,058	$	(2,436,957	)	$	(41,115	)	$	(1,983,826	)
Net income		-		-		-		107,620			-			107,620
Foreign currency translation adjustment		-		-		-		-			(38,448	)		(38,448	)
Balance, March 31, 2022		1,882,485	$	188	$	494,058	$	(2,329,337	)	$	(79,563	)	$	(1,914,654	)
Balance, January 1, 2023		101,882,485	$	10,188	$	3,126,612	$	(1,501,803	)	$	122,760		$	1,757,757
Net income		-		-		-		449,721			-			449,721
Foreign currency translation adjustment		-		-		-		-			10,328			10,328
Balance, March 31, 2023		101,882,485	$	10,188	$	3,126,612	$	(1,052,082	)	$	133,088		$	2,217,806

The accompanying notes are an integral part of these condensed consolidated financial statements.

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~3

3KENONGWO GROUP US, INC.

~~KENONGWO~~UNAUDITED CONDENSED CONSOLIDATED STATEMENTS ~~GROUP~~OF ~~US,~~CASH ~~INC.~~FLOWS

~~UNAUDITED CONDENSED~~(Stated ~~CONSOLIDATED~~in ~~STATEMENTS~~US ~~OF CASH FLOWS~~Dollars)

(Stated in US Dollars)

	For the Six months ended
	June 30,
	2023			2022

CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	656,901		$	247,491
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		118,884			73,488
Loss on disposal of PPE		2,906			-
Changes in operating assets and liabilities:
Accounts receivable		(172,769	)		(992,424	)
Other receivables		(50,125	)		(58,052	)
Inventories		(73,709	)		(24,864	)
Prepayment and deposits		(109,211	)		116,664
Accounts payable and accrued payables		(374,306	)		142,753
Advances from customers		11,598			425
Net cash provided by/ (used in) operating activities		10,169			(494,519	)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment in plant and equipment		(4,120	)		(42,545	)
Proceeds from disposal of equipment		823			-
Purchase of CIP		(1,683	)		-
Intangible assets		-			(1,746	)
Net cash used in investing activities		(4,980	)		(44,291	)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from related party		-			512,401
Repayment of related party		(54,841	)		-
Repayment of director		(180,468	)		-
Net cash (used in)/ provided by financing activities		(235,309	)		512,401

EFFECT OF EXCHANGE RATE ON CASH		1,153			26,625

NET DECREASE IN CASH		(228,967	)		216
CASH, BEGINNING OF PERIOD		234,048			9,533
CASH, END OF PERIOD	$	5,081		$	9,749

SUPPLEMENTAL DISCLOSURES:
Cash paid during the period for:
Cash paid for interest expense, net of capitalized interest	$	13,518		$	16,362
Cash paid for income tax	$	-		$	-

	For the Three months ended
	March 31,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	449,721		$	107,620
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		61,887			37,167
Changes in operating assets and liabilities:
Accounts receivable		(462,970	)		(635,196	)
Other receivables		(52,166	)		(41,654	)
Inventories		(46,377	)		(81,194	)
Prepayment and deposits		(63,031	)		(26,599	)
Accounts payable and accrued payables		60,933			303,998
Advances from customers		47,350			-
Net cash used in operating activities		(4,653	)		(335,858	)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in plant and equipment		(525	)		(8,423	)
Intangible assets		-			(1,783	)
Net cash used in investing activities		(525	)		(10,206	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from related party		-			356,854
Repayment of director		(238,281	)		-
Net cash (used in)/ provided by financing activities		(238,281	)		356,854
EFFECT OF EXCHANGE RATE ON CASH		16,156			(11,819	)
NET DECREASE IN CASH		(227,303	)		(1,029	)
CASH, BEGINNING OF PERIOD		234,048			9,533
CASH, END OF PERIOD	$	6,745		$	8,504
SUPPLEMENTAL DISCLOSURES:
Cash paid during the period for:
Cash paid for interest expense, net of capitalized interest	$	6,858		$	8,355
Cash paid for income tax	$	-		$	-

The accompanying notes are an integral part of these condensed consolidated financial statements.

~~The accompanying notes are an integral part of these condensed consolidated financial statements.~~4

4KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~1 ~~CONDENSED~~– ~~CONSOLIDATED~~ORGANIZATION, ~~FINANCIAL~~NATURE ~~STATEMENTS~~OF OPERATIONS AND GOING CONCERN

~~NOTE 1~~Kenongwo –Group ~~ORGANIZATION~~US, ~~NATURE~~Inc. OF(“Kenongwo ~~OPERATIONS~~US” or ~~AND~~the ~~GOING~~“Company”) ~~CONCERN~~is a holding company incorporated in the State of Nevada on October 17, 2018.

~~Kenongwo~~On October 17, 2018, ~~Group~~the USCompany issued 30,000 ~~Inc.~~shares ~~(“Kenongwo~~of ~~US”~~the orcommon stock at the ~~“Company”)~~par isvalue aper ~~holding~~share ~~company~~for ~~incorporated~~a intotal ~~the~~purchase ~~State~~price of ~~Nevada~~$3 onto ~~October 17,~~Mr. ~~2018~~Erh-ping Pi.

On October 1720, 2018, the Company issued 3014,000,000 shares of the common stock at the par value per share for a total purchase price of $31,400 to its director and chief executive officer Mr. ~~Erh-ping~~Jianjun PiZhong.

On ~~October~~ 20May 15, ~~2018~~2017, ~~the~~Jiangxi ~~Company~~Kenongwo ~~issued~~Technology 14Co.,~~000,000~~ Ltd. ~~shares~~(“Jiangxi ofKenongwo”) was formed in the ~~common~~PRC. ~~stock~~It atis ~~the~~engaged ~~par~~in ~~value~~researching, ~~per~~developing, ~~share~~manufacturing ~~for~~and aselling ~~total~~bamboo charcoal ~~purchase~~biomass ~~price~~organic offertilizers, $1amino acid water-soluble fertilizers,~~400 to~~ ~~its~~selenium-rich ~~director~~foliage fertilizers and ~~chief~~other ~~executive~~types ~~officer~~of ~~Mr.~~fertilizers in ~~Jianjun~~the ~~Zhong~~People’s Republic of China (the “PRC”).

On ~~May~~ 15January 1, ~~2017~~2019, the Company acquired all the issued and outstanding capital stock of Jiangxi Kenongwo ~~Technology~~pursuant ~~Co.~~to certain share transfer agreements entered into with Xiaoming Zhang and Yuhua Zhang, ~~Ltd.~~the (“two former shareholders of Jiangxi Kenongwo”). The share transfer was ~~formed~~completed on January 9, 2019 as evidenced by a business license issued by Administrative Bureau in Yichun City Jiangxi Province reflecting the ~~PRC.~~sole Itforeign isownership. ~~engaged~~As ina ~~researching~~result, ~~developing~~Jiangxi Kenongwo became the Company’s wholly owned subsidiary. In accordance to a stock entrustment agreement (the “Stock Entrustment Agreement”), ~~manufacturing~~Xiaoming Zhang and ~~selling~~Yuhua ~~bamboo~~Zhang ~~charcoal~~held ~~biomass~~Jiangxi ~~organic~~Kenongwo ~~fertilizers~~on behalf of Mr. Jianjun Zhong. Under the Stock Entrustment Agreement, ~~amino~~Mr. ~~acid~~Jianjun ~~water-soluble~~Zhong ~~fertilizers~~was the controlling beneficial owner of Jiangxi Kenongwo prior to the acquisition on January 1, ~~selenium-rich~~2019. Accordingly, ~~foliage~~the ~~fertilizers~~Company and ~~other~~Jiangxi ~~types~~Kenongwo ofwere ~~fertilizers~~under common control prior to the acquisition; therefore, the transaction has been accounted for as business combination under common control in accordance to ASC-805-50-30-5, in which the ~~People’s~~assets ~~Republic~~and liabilities of ~~China~~Jiangxi (Kenongwo have been presented at their carrying values at the ~~“PRC”)~~date at which the transfer occurred, which was January 1, 2019. However, the carrying values did not differ from their historical basis. No goodwill was recognized in this transaction.

On ~~January~~ 1September 6, 2019, the Company ~~acquired~~agreed ~~all the issued and outstanding capital stock of Jiangxi Kenongwo pursuant~~ to ~~certain share transfer~~issue ~~agreements~~an ~~entered~~aggregate ~~into~~of ~~with Xiaoming Zhang and Yuhua Zhang~~1,300,000 ~~the~~shares ~~two former shareholders~~ of ~~Jiangxi~~common ~~Kenongwo.~~stock ~~The~~in ~~share transfer was completed on January 9, 2019 as evidenced by~~ a ~~business~~private ~~license~~placement ~~issued~~to bytwo ~~Administrative~~investors ~~Bureau~~for inan ~~Yichun~~aggregate ~~City~~purchase ~~Jiangxi~~price ~~Province~~of ~~reflecting~~$130,000. ~~the~~On ~~sole~~February ~~foreign~~26, ~~ownership.~~2020, AsMarch a2, ~~result~~2020, ~~Jiangxi~~March ~~Kenongwo became the Company’s wholly owned subsidiary. In accordance to a stock entrustment agreement (the “Stock Entrustment Agreement”)~~4, ~~Xiaoming~~2020 ~~Zhang~~ and ~~Yuhua~~March ~~Zhang~~10, ~~held~~2020, Jiangxi Kenongwo onreceived ~~behalf of Mr. Jianjun Zhong. Under~~ the ~~Stock~~placement ~~Entrustment~~proceeds ~~Agreement, Mr. Jianjun Zhong was the controlling beneficial owner~~ of ~~Jiangxi~~$28,889 ~~Kenongwo~~(RMB ~~prior~~200,000), to$57,778 ~~the~~(RMB ~~acquisition~~400,000), ~~on January 1~~$14,444 ~~2019.~~(RMB ~~Accordingly~~100,000), ~~the Company~~ and ~~Jiangxi Kenongwo were under common control prior to the acquisition; therefore~~$28,889 ~~the~~(RMB ~~transaction has been accounted for as business combination under common control in accordance to ASC-805-50-30-5~~200,000), ~~in which the assets and liabilities of Jiangxi Kenongwo have been presented at their carrying values at the date at which the transfer occurred~~respectively, ~~which~~ ~~was~~totaling ~~January 1~~$130,000 ~~2019.~~(RMB ~~However~~900,000) ~~the carrying values did not differ~~ from its ~~their~~two ~~historical basis~~investors. ~~No goodwill was recognized in this transaction.~~

On ~~September~~ 6October 16, 2019, the Company agreed to issue an ~~aggregate~~aggregated of 1606,~~300,000~~925 shares of the common stock into a ~~private~~total ~~placement~~of to41 ~~two~~ investors for an aggregate purchase price of $~~130~~60,~~000.~~693 Onin ~~February~~a ~~26,~~private placement. ~~2020,~~On ~~March~~January 216, 2020, ~~March~~Jiangxi 4Kenongwo, ~~2020~~on ~~and~~behalf ~~March~~of ~~10,~~the ~~2020~~Company, ~~Jiangxi Kenongwo~~ received the ~~placement~~ proceeds of $2860,~~889~~693 (RMB ~~200~~418,~~000~~166), ~~$57,778 (RMB 400,000), $14,444 (RMB 100,000), and $28,889 (RMB 200,000), respectively, totaling $130,000 (RMB 900,000)~~ from ~~its~~the ~~two~~ 41 investors.

On October 165, ~~2019~~2021, the Company ~~agreed~~amended toits ~~issue an aggregated~~ articles of ~~606,925~~incorporation ~~shares~~to ofreverse ~~the~~split its common stock toat a ~~total~~rate of 411 ~~investors~~ for an10 ~~aggregate purchase~~(the ~~price~~“Reverse ~~of $60,693 in a private placement~~Split”). On ~~January~~November 161, ~~2020~~2021, ~~Jiangxi~~FINRA announced ~~Kenongwo,~~the onReverse ~~behalf~~Split, ofwhich ~~the~~took ~~Company,~~effect ~~received~~at the ~~proceeds~~ opening of ~~$60,693~~business ~~(RMB~~on ~~418~~November 2,~~166)~~ ~~from the 41 investors~~2021.

~~On October~~Basis ~~5, 2021, the Company amended its articles~~ of incorporation to reverse split its common stock at a rate of 1 for 10 (the “Reverse Split”). On November 1, 2021, FINRA announced the Reverse Split, which took effect at the opening of business on November 2, 2021.Presentation

~~Basis~~The accompanying consolidated financial statements have been prepared in conformity with the US GAAP. The basis of ~~Presentation~~accounting differs from that used in the statutory accounts of the Company, which are prepared in accordance with the accounting principles of the PRC (the “PRC GAAP”). The differences between the US GAAP and the PRC GAAP have been adjusted in these financial statements. The Company’s functional currency is the Chinese Renminbi (“RMB”); however, the accompanying financial statements have been translated and presented in United States Dollars (“USD”).

The accompanying consolidated financial statements have been prepared in conformity with the US GAAP. The basis of accounting differs from that used in the statutory accounts of the Company, which are prepared in accordance with the accounting principles of the PRC (the “PRC GAAP”). The differences between the US GAAP and the PRC GAAP have been adjusted in these financial statements. The Company’s functional currency is the Chinese Renminbi (“RMB”); however, the accompanying financial statements have been translated and presented in United States Dollars (“USD”).5

5KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~2 ~~CONDENSED~~– ~~CONSOLIDATED~~SUMMARY ~~FINANCIAL~~OF ~~STATEMENTS~~SIGNIFICANT ACCOUNTING POLICIES

~~NOTE 2~~Use –of ~~SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES~~Estimates

~~Use~~The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of ~~Estimates~~assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates.

~~The preparation~~Control ofby ~~the~~Principal financial statements 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 the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however, actual results could differ materially from those estimates.Stockholders

~~Control~~The Company’s directors and executive officers byand ~~Principal~~their ~~Stockholders~~affiliates or related parties own, beneficially and in the aggregate, the majority of the voting power of the outstanding shares of our common stock. Accordingly, if our directors and executive officers and their affiliates or related parties vote their shares uniformly, they would have the ability to control the approval of most corporate actions, including increasing our authorized capital stock and the dissolution or merger of our company or the sale of our assets.

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

~~Cash~~For purposes of the statements of cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less and ~~Cash~~money ~~Equivalents~~market accounts to be cash equivalents. The Company maintains cash with various financial institutions.

~~For purposes~~Accounts of the statements of cash flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less and money market accounts to be cash equivalents. The Company maintains cash with various financial institutions.Receivable

Accounts receivable are recorded at the invoiced ~~Receivable~~amount and do not bear interest. presented net of an allowance for doubtful accounts. The Company maintains allowances for doubtful credit losses accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection.

Accounts receivable are recorded at the invoiced amount and do not bear interest. presented net of an allowance for doubtful accounts. The Company maintains allowances for doubtful credit losses accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection.6

6KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~2 ~~CONDENSED~~– ~~CONSOLIDATED~~SUMMARY ~~FINANCIAL~~OF ~~STATEMENTS~~SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

~~NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)~~Inventories

Inventories, consisting of raw materials, work in process, and finished goods related to the Company’s products are stated at the lower of cost or market utilizing the weighted average method.

~~Inventories, consisting~~Advances ~~of raw materials, work in process,~~ and ~~finished goods related to the Company’s products are stated at the lower of cost or market utilizing the weighted average method.~~Prepayments

~~Advances~~The Company makes advance payment to suppliers and ~~Prepayments~~vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory.

~~The Company~~Plant ~~makes advance payment to suppliers~~ and vendors for the procurement of raw materials. Upon physical receipt and inspection of the raw materials from suppliers the applicable amount is reclassified from advances and prepayments to suppliers to inventory.Equipment

~~Plant~~Included in property and equipment is construction-in-progress which consisted of factory improvements and ~~Equipment~~machinery pending installation and includes the costs of construction, machinery and equipment, and any interest charges arising from borrowings used to finance these assets during the period of construction or installation of the assets. No provision for depreciation is made on construction-in-progress until such time as the relevant assets are completed and ready for their intended use.

~~Included in~~Estimated ~~property~~useful ~~and~~lives ~~equipment is construction-in-progress which consisted~~ of ~~factory improvements and machinery pending installation and includes~~ the ~~costs of construction, machinery and equipment, and any interest charges arising from borrowings used to finance these assets~~Company’s ~~during the period of construction or installation of the~~ assets. Noare ~~provision for depreciation is made on construction-in-progress until such time~~ as ~~the relevant assets are completed and ready for their intended use.~~follows:

Estimated useful lives of the Company’s assets are as follows:

		Useful Life
Building		20 years
Operating equipment		3-10 years
Vehicle		3-5 years
Electronic equipment		3-5 years
Office equipment		3-5 years

		Useful Life
Building		20 years
Operating equipment		3-10 years
Vehicle		3-5 years
Electronic equipment		3-5 years
Office equipment		3-5 years

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts, and any gain or loss are included in the Company’s results of operations. The costs of maintenance and repairs are recognized to expenses as incurred; significant renewals and betterments are capitalized.

~~The cost~~Construction ~~and~~in ~~related~~progress ~~accumulated~~represents ~~depreciation~~direct ofand indirect ~~assets~~acquisition ~~sold~~and orconstruction ~~otherwise~~costs ~~retired~~for ~~are~~plants, ~~eliminated~~and ~~from~~costs ~~the~~of ~~accounts,~~acquisition and ~~any~~installation ~~gain~~of orrelated ~~loss~~equipment. Amounts classified ~~are~~as ~~included~~construction in ~~the~~progress ~~Company’s~~and ~~results~~prepayments offor ~~operations.~~equipment ~~The~~are ~~costs~~transferred ofto ~~maintenance~~plant and ~~repairs~~equipment ~~are~~when ~~recognized~~substantially all the activities necessary to ~~expenses~~prepare asthe ~~incurred; significant~~assets ~~renewals~~for ~~and~~their ~~betterments~~intended use are ~~capitalized~~completed. Depreciation is not provided for assets classified in this account.

~~Construction in~~The ~~progress~~Company ~~represents~~both ~~direct~~owns and ~~indirect~~leases ~~acquisition and construction costs for plants, and costs of acquisition and installation of~~manufacturing ~~related equipment~~facilities. ~~Amounts~~The ~~classified~~Company asleases ~~construction~~a inmanufacturing ~~progress~~facility ~~and~~to ~~prepayments~~produce ~~for~~fertilizer ~~equipment~~products. ~~are~~In ~~transferred~~order to ~~plant~~expand ~~and equipment when substantially all~~ the ~~activities~~Company’s ~~necessary~~production capacity, ~~to prepare~~ the ~~assets~~Company ~~for~~invested ~~their~~in ~~intended~~an ~~use~~additional ~~are~~manufacturing ~~completed.~~plant ~~Depreciation~~that isit ~~not provided for assets classified in this account~~owns.

The ~~Company~~ ~~both~~plant ~~owns~~that ~~and~~is ~~leases~~owned ~~manufacturing~~by ~~facilities.~~the ~~The~~ Company ~~leases~~is ~~a manufacturing facility to produce fertilizer products. In~~accounted ~~order~~for tousing ~~expand~~ the ~~Company’s~~significant ~~production~~accounting ~~capacity,~~policies ~~the~~set ~~Company~~forth ~~invested in an additional manufacturing plant that it owns~~above.

The Company has adopted ASC 842 and ASC 840. Management ~~plant~~determines that leased manufacturing facility is ~~owned~~not byrequired to be capitalized as a right of use asset under both ASC 842 and ASC 840 because the ~~Company~~lease for that facility is ~~accounted~~entered ~~for~~into ~~using~~on ~~the~~a ~~significant~~year ~~accounting~~to ~~policies~~year ~~set~~basis. ~~forth~~Additionally, ~~above~~management is not certain that it will renew its lease for that facility each year.

The Company has adopted ASC 842 and ASC 840. Management determines that leased manufacturing facility is not required to be capitalized as a right of use asset under both ASC 842 and ASC 840 because the lease for that facility is entered into on a year to year basis. Additionally, management is not certain that it will renew its lease for that facility each year. 7

7KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~2 ~~CONDENSED~~– ~~CONSOLIDATED~~SUMMARY ~~FINANCIAL~~OF ~~STATEMENTS~~SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

~~NOTE 2~~Intangible ~~– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)~~Assets

Included in the intangible assets is non-patented technology. Useful life for non-patented technology refers to the period during which economic benefits can be generated. Intangible assets ~~Assets~~are being amortized using the straight-line method over their lease terms or estimated useful life.

~~Included in~~Estimated ~~the~~useful ~~intangible~~lives ~~assets~~of ~~is non-patented technology. Useful life for non-patented technology refers to~~ the ~~period during which economic~~Company’s ~~benefits~~intangible ~~can be generated. Intangible~~ assets are ~~being~~as ~~amortized using the straight-line method over their lease terms or estimated useful life.~~follows:

~~Estimated useful~~Useful ~~lives~~Life ofNon-patented ~~the~~technology ~~Company’s~~10 ~~intangible assets are as follows:~~ years

~~Useful~~The ~~Life~~Company ~~Non-patented~~carries ~~technology~~intangible 10assets ~~years~~at cost less accumulated amortization. In accordance with the US GAAP, the Company examines the possibility of decreases in the value of intangible assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.

~~The Company~~Impairment ~~carries intangible assets at cost less accumulated amortization. In accordance with the US GAAP, the Company examines the possibility~~ of ~~decreases~~Long-lived ~~in the value of intangible assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.~~Assets

~~Impairment~~In accordance with ASC Topic 360, the Company ofreviews ~~Long~~long-lived ~~Assets~~assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recorded no impairment charge for the six months ended June 30, 2023 and 2022.

~~In accordance~~Advances ~~with~~from ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company recorded no impairment charge for the three months ended March 31, 2023 and 2022. Customers

Advances from customers consist of prepayments from ~~Customers~~customers for merchandise that had not yet been shipped. The Company will recognize the deposits as revenue as customers take delivery of the goods and title to the assets is transferred to customers in accordance with the Company’s revenue recognition policy.

~~Advances from~~Foreign ~~customers~~currency consist of prepayments from customers for merchandise that had not yet been shipped. The Company will recognize the deposits as revenue as customers take delivery of the goods and title to the assets is transferred to customers in accordance with the Company’s revenue recognition policy.translation

~~Foreign~~The accompanying financial statements are presented ~~currency~~in ~~translation~~United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

The accompanying financial statements are presented in United States dollars. The functional currencies of the Company are in Renminbi (RMB). The Company’s assets and liabilities are translated into United States dollars from RMB at year-end exchange rates, and its revenues and expenses are translated at the average exchange rate during the year. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.8

8KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~2 ~~CONDENSED~~– ~~CONSOLIDATED~~SUMMARY ~~FINANCIAL~~OF ~~STATEMENTS~~SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

	6/30/2023		12/31/2022		6/30/2022
Period/year end RMB: US$ exchange rate		7.2258		6.9646		6.7114
Period/annual average RMB: US$ exchange rate		6.9291		6.7261		6.4835

	3/31/2023	12/31/2022	3/31/2022
Period/year end RMB: US$ exchange rate	6.8717	6.9646	6.3482
Period/annual average RMB: US$ exchange rate	6.6676	6.7261	6.3504

The RMB is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions.

~~The RMB~~Revenue ~~is not freely convertible into foreign currencies and all foreign exchange transactions must be conducted through authorized financial institutions.~~Recognition

The Company adopted ASC 606 “Revenue Recognition”, and recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

The Company ~~adopted~~derives ~~ASC~~its ~~606~~revenues ~~“Revenue~~from ~~Recognition”,~~the ~~and~~sale of ~~recognizes~~fertilizer ~~revenue~~products. ~~when~~The ~~control~~Company ofapplies the ~~promised~~following ~~goods~~five orsteps ~~services~~in isorder ~~transferred~~ to ~~customers,~~determine inthe anappropriate amount ~~that~~of ~~reflects~~revenue ~~the consideration we expect~~ to be ~~entitled~~recognized as toit infulfils ~~exchange~~its ~~for~~obligations ~~those~~under ~~goods~~each orof ~~services.~~its agreements:

~~The Company~~● ~~derives~~identify ~~its~~the ~~revenues~~contract ~~from~~with ~~the~~a ~~sale~~customer; of● ~~fertilizer~~identify ~~products.~~the ~~The~~performance ~~Company~~obligations ~~applies~~in the ~~following~~contract; ~~five~~● ~~steps~~determine inthe ~~order~~transaction toprice; ~~determine the~~● ~~appropriate~~allocate ~~amount~~the oftransaction ~~revenue~~price to beperformance ~~recognized~~obligations asin itthe ~~fulfils~~contract; ~~its~~and ~~obligations~~● ~~under~~recognize ~~each~~revenue ofas ~~its~~the ~~agreements:~~performance obligation is satisfied.

●Cost ~~identify~~of the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; and ● recognize revenue as the performance obligation is satisfied.Revenues

Cost of ~~Revenues~~revenues consists primarily of raw materials, utility and supply costs consumed in the manufacturing process, manufacturing labor, depreciation expense and direct overhead expenses necessary to manufacture finished goods as well as warehousing and distribution costs such as inbound freight charges, shipping and handling costs, purchasing and receiving costs.

~~Cost of~~Income revenues consists primarily of raw materials, utility and supply costs consumed in the manufacturing process, manufacturing labor, depreciation expense and direct overhead expenses necessary to manufacture finished goods as well as warehousing and distribution costs such as inbound freight charges, shipping and handling costs, purchasing and receiving costs.Taxes

~~Income~~The Company accounts for income taxes under the ~~Taxes~~provisions of Section 740-10-30 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, which is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns.

The Company ~~accounts~~is ~~for~~subject ~~income~~to ~~taxes under~~ the ~~provisions~~Enterprise ofIncome Tax ~~Section 740-10-30 of the Financial Accounting Standards Board~~ (“~~FASB~~EIT”) ~~Accounting~~ ~~Standards~~law ~~Codification,~~of ~~which~~the isPeople’s anRepublic ~~asset~~of ~~and~~China. ~~liability~~The ~~approach~~Company’s ~~that~~primary ~~requires~~operations ~~the~~are ~~recognition~~located ofin ~~deferred~~the ~~tax~~PRC. ~~assets and~~The ~~liabilities~~Company ~~for~~is ~~the~~high ~~expected~~tech ~~future~~enterprises ~~tax~~are ~~consequences~~subject ofto ~~events~~corporate ~~that~~income ~~have~~tax ~~been~~at ~~recognized~~a inreduced ~~its~~rate ~~financial~~of ~~statements or tax returns~~15%.

The Company is subject to the Enterprise Income Tax (“EIT”) law of the People’s Republic of China. The Company’s primary operations are located in the PRC. The Company is high tech enterprises are subject to corporate income tax at a reduced rate of 15%. 9

9KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~2 ~~CONDENSED~~– ~~CONSOLIDATED~~SUMMARY ~~FINANCIAL~~OF ~~STATEMENTS~~SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

~~NOTE 2~~Related ~~– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)~~Parties

Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal ~~Parties~~owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions.

~~Parties are~~Accumulated ~~considered~~Other toComprehensive beIncome related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions.(Loss)

~~Accumulated~~Comprehensive income (loss) comprised of net income ~~Other~~(loss) ~~Comprehensive~~and ~~Income~~all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. The Company’s comprehensive income (~~Loss~~loss) consist of net income (loss) and unrealized gains from foreign currency translation adjustments.

~~Comprehensive income~~Fair ~~(loss)~~Value ~~comprised~~ of ~~net~~Financial income (loss) and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. The Company’s comprehensive income (loss) consist of net income (loss) and unrealized gains from foreign currency translation adjustments.Instruments

~~Fair~~The Company’s financial instruments, including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short-term debt, have carrying amounts that approximate their fair values due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:

~~The Company’s~~● ~~financial~~Level ~~instruments,~~1 ~~including cash and equivalents, accounts and other receivables, accounts and other payables, accrued liabilities and short~~-~~term~~ ~~debt,~~inputs ~~have carrying amounts that approximate their fair values due~~ to ~~their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of~~ the ~~fair value of financial instruments held by the Company. ASC Topic 825, “Financial Instruments,” defines fair value, and establishes a three-level~~ valuation ~~hierarchy~~methodology ~~for~~used ~~disclosures of~~quoted ~~fair~~prices ~~value measurement that enhances disclosure requirements~~ for ~~fair~~identical ~~value~~assets ~~measures.~~or ~~The~~liabilities ~~carrying amounts reported~~ in ~~the~~active consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interestmarkets. ~~The three levels of valuation hierarchy are defined as follows:~~

~~● Level 1 - inputs to the valuation methodology used quoted prices for identical assets or liabilities in active markets.~~10

10KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~2 ~~CONDENSED~~– ~~CONSOLIDATED~~SUMMARY ~~FINANCIAL~~OF ~~STATEMENTS~~SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

	●	Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

	●	Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.

	●	Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
	●	Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.

~~The Company~~Government ~~analyzes~~Contribution ~~all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815.~~Plan

~~Government~~Pursuant to the applicable PRC laws and regulations, ~~Contribution~~the ~~Plan~~Company is required to participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond its monthly contribution.

~~Pursuant to~~Statutory the applicable PRC laws and regulations, the Company is required to participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and other welfare benefits are provided to employees. Chinese labor regulations require the Company to pay to the local labor bureau a monthly contribution at a stated contribution rate based on the monthly basic compensation of qualified employees. The relevant local labor bureau is responsible for meeting all retirement benefit obligations; the Company has no further commitments beyond its monthly contribution.Reserve

~~Statutory~~Pursuant to the applicable PRC laws and regulations, ~~Reserve~~the Company must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under the PRC GAAP at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss.

~~Pursuant to~~Recent ~~the~~accounting applicable PRC laws and regulations, the Company must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under the PRC GAAP at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss.pronouncements

~~Recent~~In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The amendments in this update require disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting ~~pronouncements~~model to increase transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an entity’s financial statements. The amendments are effective for all entities within their scope, which excludes not-for-profit entities and employee benefit plans, for financial statements issued for annual periods beginning after December 15, 2021. Early application of the amendment is permitted. The Company will adopt ASU No. 2021-10 effective January 1, 2022.The Company’s adoption of this guidance does not have a material impact on its financial statements.

~~In November~~The ~~2021,~~Company ~~the~~believes ~~FASB~~that ~~issued~~there ~~ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government~~were ~~Assistance.~~no ~~The~~other ~~amendments~~accounting instandards ~~this~~recently ~~update~~issued ~~require disclosures about transactions with a government~~ that ~~have~~had ~~been accounted for by analogizing to a grant~~ or ~~contribution~~are ~~accounting~~expected ~~model~~ to ~~increase~~have ~~transparency~~a ~~about~~material ~~(1)~~impact ~~the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions~~ on anour ~~entity’s~~ financial ~~statements.~~position ~~The~~or ~~amendments are effective for all~~results ~~entities within their scope, which excludes not-for-profit entities and employee benefit plans, for financial statements issued for annual periods beginning after December 15, 2021. Early application~~ of ~~the amendment is permitted~~operations. ~~The Company will adopt ASU No. 2021-10 effective January 1, 2022.The Company’s adoption of this guidance does not have a material impact on its financial statements.~~

~~The Company believes that there were no other accounting standards recently issued that had or are expected to have a material impact on our financial position or results of operations.~~ 11

11KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~3 ~~CONDENSED~~– ~~CONSOLIDATED~~ACCOUNTS ~~FINANCIAL~~RECEIVABLE, ~~STATEMENTS~~NET

~~NOTE 3~~Accounts –receivable ~~ACCOUNTS~~consist ~~RECEIVABLE,~~of ~~NET~~the following:

Accounts receivable consist of the following:

	June 30, 2023			December 31, 2022
Accounts receivable	$	1,920,428		$	1,854,314
Less: Allowance for doubtful accounts		(291,916	)		(336,614	)
Total accounts receivable, net	$	1,628,512		$	1,517,700

	March 31, 2023			December 31, 2022
Accounts receivable	$	2,294,490		$	1,854,314
Less: Allowance for doubtful accounts		(307,057	)		(336,614	)
Total accounts receivable, net	$	1,987,433		$	1,517,700

Movement of allowance for doubtful accounts is as follows:

	June 30, 2023			December 31, 2022
Beginning balance	$	(336,614	)	$	(126,998	)
Write-off/(Addition)		33,924			(228,171	)
Currency re-alignment		10,774			18,555
Ending balance	$	(291,916	)	$	(336,614	)

	March 31, 2023			December 31, 2022
Beginning balance	$	(336,614	)	$	(126,998	)
Write-off/(Addition)		35,154			(228,171	)
Currency re-alignment		(5,597	)		18,555
Ending balance	$	(307,057	)	$	(336,614	)

NOTE 4 – OTHER RECIVABLES

~~NOTE 4~~Other –receivable ~~OTHER~~consist ~~RECIVABLES~~of the following:

Other receivable consist of the following:

	June 30, 2023		December 31, 2022
Loan receivable	$	203,187	$	155,556
Deposit		11,667		12,104
Others		15,495		21,458
Ending balance	$	230,349	$	189,118

	March 31, 2023		December 31, 2022
Loan receivable	$	195,612	$	155,556
Deposit		12,268		12,104
Others		34,411		21,458
Ending balance	$	242,291	$	189,118

Amount due from third parties are unsecured, non-interest bearing and repayable on demand.

~~Amount due from third parties are unsecured, non-interest bearing and repayable on demand.~~ 12

12KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~5 ~~CONDENSED~~– ~~CONSOLIDATED FINANCIAL STATEMENTS~~INVENTORIES

~~NOTE 5~~Inventories –consisted ~~INVENTORIES~~of the following:

Inventories consisted of the following:

	June 30, 2023		December 31, 2022

Raw materials	$	356,048	$	328,007
Goods in process		19,489		13,084
Finished goods		246,138		230,567
Total, net	$	621,675	$	571,658

	March 31, 2023		December 31, 2022
Raw materials	$	377,434	$	328,007
Goods in process		19,117		13,084
Finished goods		227,834		230,567
Total, net	$	624,385	$	571,658

NOTE 6 – PREPAYMENTS

~~NOTE~~The prepayment balance of $137,956 and $34,475 as of June 30, 2023 6and –December ~~PREPAYMENTS~~31, 2022 mainly represents the advanced payment to the suppliers for business purpose, respectively.

~~The prepayment~~NOTE ~~balance~~7 of– ~~$96,100~~PLANT ~~and~~AND ~~$34,475 as of March 31, 2023 and December 31, 2022 mainly represents the advanced payment to the suppliers for business purpose, respectively.~~EQUIPMENT

~~NOTE 7~~Plant –and ~~PLANT~~equipment ~~AND~~at ~~EQUIPMENT~~June 30, 2023 and December 31, 2022 consisted of:

Plant and equipment at March 31, 2023 and December 31, 2022 consisted of:

	June 30, 2023			December 31, 2022
Building	$	1,290,828		$	1,387,914
Operating equipment		625,005			648,446
Vehicle		19,845			20,590
Office equipment		94,336			100,275
		2,030,014			2,157,225
Less: Accumulated depreciation		(387,025	)		(339,015	)
		1,642,989			1,818,210
Construction in progress		94,384			96,249
	$	1,737,373		$	1,914,459

	March 31, 2023			December 31, 2022
Building	$	1,382,011		$	1,387,914
Operating equipment		657,212			648,446
Vehicle		20,868			20,590
Office equipment		102,141			100,275
		2,162,232			2,157,225
Less: Accumulated depreciation		(376,758	)		(339,015	)
		1,785,474			1,818,210
Construction in progress		97,551			96,249
	$	1,883,025		$	1,914,459

13KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~7 ~~CONDENSED~~– ~~CONSOLIDATED~~PLANT ~~FINANCIAL~~AND ~~STATEMENTS~~EQUIPMENT (CONTINUED)

~~NOTE~~As of June 30, 2023 and June 30, 2022, depreciation expense amounted 7to –$114,576 ~~PLANT~~and ~~AND~~$69,091, ~~EQUIPMENT~~respectively. ~~(CONTINUED)~~Depreciation is not taken during the period of construction or equipment installation. Upon completion of the installation of manufacturing equipment or any construction in progress, construction in progress balances will be classified to their respective property and equipment category.

~~As of~~The ~~March~~construction ~~31,~~in ~~2023~~progress ~~and~~of ~~March 31, 2022, depreciation expense amounted to~~ $5994,~~597~~384 and $3596,~~026, respectively. Depreciation is not taken during~~249 ~~the~~as ~~period~~ of ~~construction~~June or30, ~~equipment~~2023 ~~installation.~~and ~~Upon~~December ~~completion~~31, of2022 represents the ~~installation~~investment ~~of manufacturing equipment or any construction~~ in ~~progress,~~building ~~construction~~a inprocessing ~~progress~~plant ~~balances will be classified to their respective property~~ and ~~equipment category~~warehouse.

~~The construction~~NOTE in8 ~~progress~~– ofINTANGIBLE ~~$97,551 and $96,249 as of March 31, 2023 and December 31, 2022 represents the investment in building a processing plant and warehouse.~~ASSETS

~~NOTE 8~~Intangible –assets ~~INTANGIBLE~~consisted ~~ASSETS~~of the following:

Intangible assets consisted of the following:

	June 30,			December 31,
	2023			2022

Non-patented technology	$	69,196		$	71,792
System and software		6,128			6,357
Less: Accumulated amortization		(36,712	)		(33,804	)
	$	38,612		$	44,345

	March 31,			December 31,
	2023			2022
Non-patented technology	$	72,762		$	71,792
System and software		6,443			6,357
Less: Accumulated amortization		(36,483	)		(33,804	)
	$	42,722		$	44,345

The Company invested in the development of a product tracking system design, detect and defend against counterfeit products. The Company’s original cost was $69,196 and $71,792 as of June 30, 2023 and December 31, 2022, respectively.

~~The~~As ~~Company invested in the development~~ of aJune ~~product tracking system design~~30, ~~detect~~2023 and ~~defend~~June ~~against~~30, ~~counterfeit~~2022, ~~products.~~amortization ~~The~~expenses ~~Company’s original~~of ~~cost~~intangible ~~was~~assets were $724,~~762~~308 and $714,~~792 as of March 31~~071, ~~2023 and December 31, 2022,~~ respectively.

~~As of~~NOTE ~~March~~9 ~~31,~~– ~~2023~~LONG-TERM ~~and March 31, 2022, amortization expenses of intangible assets were $2,290 and $2,142, respectively.~~LOANS

~~NOTE~~On February 5, 2021, the Company entered into 9a –new ~~LONG-TERM~~unsecured ~~LOANS~~loan agreement with Yichun Village Commercial Bank in the amount of $464,389, with a due date of February 4, 2024. The loan carried an annualized interest rate of 7%. As of June 30, 2023 and December 31, 2022, the outstanding amount of the loan payable was $415,179 and $430,750. As of June 30, 2023 and 2022, the Company recognized interest expenses of $13,518 and $16,362.

~~On February~~NOTE 5,10 ~~2021,~~– ~~the~~ACCRUED ~~Company~~EXPENSES ~~entered~~AND ~~into a new unsecured loan agreement with Yichun Village Commercial Bank in the amount of $464,389,~~OTHER with a due date of February 4, 2024. The loan carried an annualized interest rate of 7%. As of March 31, 2023 and December 31, 2022, the outstanding amount of the loan payable was $436,573 and $430,750. As of March 31, 2023 and 2022, the Company recognized interest expenses of $6,858 and $8,355.PAYABLES

~~NOTE 10~~Accrued ~~ACCRUED~~expenses ~~EXPENSES~~and ~~AND~~other ~~OTHER~~payables ~~PAYABLES~~ consisted of the following:

Accrued expenses and other payables consisted of the following:

	June 30,		December 31,
	2023		2022

Rental payable	$	185,902	$	426,558
Other payable		30,457		76,943
Amount due to third parties		386,796		182,773
Salary and related payables		87,650		146,967
Accrued expenses		140,703		240,942
Total	$	831,508	$	1,074,183

	March 31,		December 31,
	2023		2022
Rental payable	$	483,455	$	426,558
Other payable		83,980		76,943
Amount due to third parties		406,728		182,773
Salary and related payables		85,526		146,967
Accrued expenses		205,452		240,942
Total	$	1,265,141	$	1,074,183

Amount due to third parties are obtained for working capital purposes.

Amount due to third parties are ~~obtained~~unsecured, ~~for~~non-interest bearing ~~working~~and ~~capital~~repayable ~~purposes~~on demand.

~~Amount~~ Other payables relate to amount due to ~~third~~vendors for ~~parties~~purchase ~~are~~of ~~unsecured,~~machineries ~~non-interest~~and ~~bearing~~equipment not settled as of June 30, 2023 and ~~repayable~~December on31, ~~demand~~2022.

~~Other payables relate to amount due to vendors for purchase of machineries and equipment not settled as of March 31, 2023 and December 31, 2022.~~14

14KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~11 ~~CONDENSED~~– ~~CONSOLIDATED~~RELATED ~~FINANCIAL~~PARTY ~~STATEMENTS~~TRANSACTIONS

~~NOTE~~As of June 30, 2023 and December 31, 2022, the 11outstanding –balances ~~RELATED~~of ~~PARTY~~nil ~~TRANSACTIONS~~and $54,562 were due to Mr. Keqi Li, the supervisor of the Company. These balances were advances made to the Company for general working capital purposes. The amounts are due on demand, non-interest bearing, and unsecured.

As of ~~March~~June 3130, 2023 and December 31, 2022, the outstanding ~~balances of $55,299 and $54,562 were~~balance due to ~~Mr.~~shareholders ~~Keqi~~was Li$57,291 ~~the~~and ~~supervisor of the Company. These balances were advances made to the Company for general working capital purposes. The amounts are due on demand~~$234, ~~non-interest bearing~~849, ~~and unsecured~~respectively.

~~As of~~NOTE ~~March~~12 ~~31,~~– ~~2023 and December 31, 2022, the outstanding balance due to shareholders was $8,088 and $234,849, respectively.~~CONCENTRATIONS

~~NOTE 12~~Customers ~~– CONCENTRATIONS~~Concentrations

~~Customers~~The following table sets forth information as ~~Concentrations~~to each customer that accounted for 10% or more of the Company’s revenues as of June 30, 2023 and 2022.

The following table sets forth information as to each customer that accounted for 10% or more of the Company’s revenues as of March 31, 2023 and 2022.

	June 30, 2023				June 30, 2022
Customers	Amount $		%		Amount $		%
Jiangxi Zhensen Agricultural Technology Co., Ltd		877,456		24.02		1,080,418		30.45
Jiangxi Yebao Technology Co., Ltd		818,141		22.39		828,254		23.34
Hainan Yijing Agricultural Development Co., Ltd		627,424		17.17		-		-
Tonggu Sibo Agricultural Development Co., Ltd		531,092		14.54		-		-
Ganzhou Jinruisheng Ecological Agriculture Development Co., Ltd		488,878		13.38		-		-
Jiangxi Menglai Agricultural Development Co., Ltd		-		-		796,433		22.44

	March 31, 2023				March 31, 2022
Customers	Amount $		%		Amount $		%
Jiangxi Zhensen Agricultural Technology Co., Ltd		503,933		23.79		672,148		35.49
Jiangxi Yebao Technology Co., Ltd		462,688		21.84		490,520		25.90
Hainan Yijing Agricultural Development Co., Ltd		366,701		17.31		-		-
Ganzhou Jinruisheng Ecological Agriculture Development Co., Ltd		303,710		14.34		-		-
Tonggu Sibo Agricultural Development Co., Ltd		299,960		14.16		-		-
Jiangxi Menglai Agricultural Development Co., Ltd		-		-		611,154		32.26

15KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~12 ~~CONDENSED~~– ~~CONSOLIDATED~~CONCENTRATIONS ~~FINANCIAL STATEMENTS~~(CONTINUED)

~~NOTE 12~~Suppliers ~~– CONCENTRATIONS (CONTINUED)~~Concentrations

~~Suppliers~~The following table sets forth information as ~~Concentrations~~to each supplier that accounted for 10% or more of the Company’s purchase as of June 30, 2023 and 2022.

The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchase as of March 31, 2023 and 2022.

	June 30, 2023				June 30, 2022
Suppliers	Amount $		%		Amount $		%
Bozhou Lifeng Manure Technology Co., Ltd		746,103		32.65		1,126,360		47.24
Yifeng Ronghua Carbon Industry Co., Ltd		438,739		19.20		-		-
Jiangxi Shanghe Ecological Agriculture Co., Ltd		344,585		15.08		-		-
Nanchang Mingrui Chemical Co., Ltd		309,225		13.53		-		-
Nanchang Fuying Plastic Industry Co., Ltd		267,054		11.69		-		-
Yuanzhou District Sanyi Chemical Products Sales Department		-		-		437,130		18.33

	March 31, 2023				March 31, 2022
Suppliers	Amount $		%		Amount $		%
Bozhou Lifeng Manure Technology Co., Ltd		436,118		33.40		733,197		55.98
Yifeng Ronghua Carbon Industry Co., Ltd		252,299		19.32		-		-
Jiangxi Shanghe Ecological Agriculture Co., Ltd		210,500		16.12		-		-
Nanchang Mingrui Chemical Co., Ltd		181,560		13.91		-		-
Nanchang Fuying Plastic Industry Co., Ltd		156,684		12.00		-		-
Yuanzhou District Sanyi Chemical Products Sales Department		-		-		446,293		34.07

Credit Risks

~~Credit~~The Company’s operations are carried out ~~Risks~~in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC’s economy. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

~~The~~Financial instruments which potentially subject the Company’s ~~operations~~to ~~are~~concentrations ~~carried~~of ~~out~~credit inrisk ~~the~~consist ~~PRC~~principally of cash and trade accounts receivable. ~~Accordingly,~~Substantially all of the Company’s cash ~~business,~~is ~~financial~~maintained ~~condition~~with state-owned banks within the PRC, and ~~results~~none of ~~operations~~ ~~may~~these bedeposits ~~influenced~~are covered by ~~the~~insurance. ~~political,~~The ~~economic~~Company ~~and~~has ~~legal~~not ~~environment~~experienced any losses in ~~the~~such ~~PRC,~~accounts and bybelieves ~~the~~it ~~general~~is ~~state~~not ofexposed ~~the~~to ~~PRC’s economy~~any risks on its cash in bank accounts. ~~The~~A significant portion of the Company’s sales ~~operations~~are incredit ~~the~~sales ~~PRC~~which are ~~subject~~primarily to ~~specific~~customers ~~considerations~~whose ~~and~~ability ~~significant~~to ~~risks~~pay ~~not~~is ~~typically~~dependent ~~associated~~upon the industry economics prevailing in these areas; however, concentrations of credit risk with ~~companies~~respect into ~~North~~trade ~~America.~~accounts receivables is limited due to generally short payment terms. The Company’s ~~results~~also ~~may~~performs beongoing ~~adversely~~credit ~~affected~~evaluations byof ~~changes~~its incustomers ~~governmental~~to ~~policies~~help ~~with~~further ~~respect to~~reduce ~~laws~~credit ~~and~~risk. ~~regulations,~~As ~~anti-inflationary~~of ~~measures~~June 30, ~~currency~~2023 ~~conversion~~ and ~~remittance~~December 31, ~~abroad~~2022, ~~and~~the ~~rates~~Company’s ~~and~~cash ~~methods~~balances ofby ~~taxation,~~geographic ~~among other~~area ~~things.~~were as follows:

Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. Substantially all of the Company’s cash is maintained with state-owned banks within the PRC, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A significant portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to trade accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. As of March 31, 2023 and December 31, 2022, the Company’s cash balances by geographic area were as follows:

	June 30, 2023				December 31, 2022
United States	$	4,611	90.75	%	$	4,611	1.97	%
China		470	9.25	%		229,437	98.03	%
Total cash and cash equivalents	$	5,081	100	%	$	234,048	100	%

	March 31,				December 31,
	2023				2022
United States	$	4,611	68.36	%	$	4,611	1.97	%
China		2,134	31.64	%		229,437	98.03	%
Total cash and cash equivalents	$	6,745	100	%	$	234,048	100	%

16KENONGWO GROUP US, INC.

~~KENONGWO GROUP~~NOTES ~~US,~~TO ~~INC.~~UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~NOTES TO~~NOTE ~~UNAUDITED~~13 ~~CONDENSED~~– ~~CONSOLIDATED~~INCOME ~~FINANCIAL STATEMENTS~~TAXES

~~NOTE~~The Company’s primary operations are located 13in –the ~~INCOME~~PRC. ~~TAXES~~The Company is high tech enterprises are subject to corporate income tax at a reduced rate of 15%.

The ~~Company’s~~ ~~primary~~following ~~operations~~tables ~~are~~provide ~~located~~the inreconciliation of the ~~PRC.~~differences ~~The~~between ~~Company~~the isstatutory ~~high~~and ~~tech~~effective ~~enterprises~~tax ~~are~~expenses ~~subject~~for tothe ~~corporate~~six ~~income~~months ~~tax~~ended ~~at a~~June ~~reduced~~30, ~~rate~~2023 ofand ~~15%.~~2022:

The following tables provide the reconciliation of the differences between the statutory and effective tax expenses for the three months ended March 31, 2023 and 2022:

	June 30, 2023			June 30, 2022
Income (Loss) before tax	$	656,901		$	247,491

PRC Statutory Tax at 15% Rate		98,535			37,124
Utilization of deferred tax benefits previously not recognized		(98,535	)		(37,124	)
Income tax	$	-		$	-

	March 31, 2023			March 31, 2022
Income (Loss) before tax	$	449,721		$	107,620
PRC Statutory Tax at 15% Rate		67,458			16,143
Utilization of deferred tax benefits previously not recognized		(67,458	)		(16,143	)
Income tax	$	-		$	-

Accounting for Uncertainty in Income Taxes

~~Accounting~~The tax authority of the PRC government conducts ~~for~~periodic ~~Uncertainty~~and ad hoc tax filing reviews on business enterprises operating in ~~Income~~the ~~Taxes~~PRC after those enterprises complete their relevant tax filings. Therefore, the Company’s PRC entities’ tax filings results are subject to change. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s PRC entities’ tax filings, which may lead to additional tax liabilities.

~~The tax~~ASC ~~authority~~740 ofrequires ~~the~~recognition ~~PRC government conducts periodic~~ and admeasurement of ~~hoc~~uncertain income tax ~~filing~~positions ~~reviews~~using ona ~~business~~“more-likely-than-not” ~~enterprises~~approach. ~~operating~~The inmanagement ~~the~~evaluated ~~PRC after those enterprises complete their relevant tax filings. Therefore,~~ the Company’s ~~PRC entities’~~ tax ~~filings results are subject~~ topositions ~~change.~~and Itconcluded isthat ~~therefore~~no ~~uncertain~~provision asfor touncertainty ~~whether~~in ~~the~~income ~~PRC~~taxes ~~tax~~was ~~authority~~necessary ~~may~~for ~~take different views about~~ the ~~Company’s~~six ~~PRC~~months ~~entities’ tax~~ended ~~filings~~June 30, ~~which~~2023 ~~may~~and ~~lead to additional tax liabilities~~2022.

~~ASC 740~~NOTE ~~requires~~14 ~~recognition~~– ~~and~~SUBSEQUENT measurement of uncertain income tax positions using a “more-likely-than-not” approach. The management evaluated the Company’s tax positions and concluded that no provision for uncertainty in income taxes was necessary for the three months ended March 31, 2023 and 2022.EVENTS

~~NOTE~~The Company has evaluated subsequent events through 14the –date ~~SUBSEQUENT~~of ~~EVENTS~~the issuance of the consolidated financial statements and no subsequent event is identified.

~~The Company has evaluated subsequent events through the date of the issuance of the consolidated financial statements and no subsequent event is identified.~~17

17ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

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

~~Business~~We primarily engage in researching, ~~Overview~~developing, manufacturing and selling bamboo charcoal biomass organic fertilizers, amino acid water-soluble fertilizers, selenium-rich foliage fertilizers and other types of fertilizers in the PRC through our subsidiary, Jiangxi Kenongwo Technology Co., Ltd. (“Jiangxi Kenongwo”), a company incorporated under the laws of the PRC.

We ~~primarily~~ ~~engage~~generated inour ~~researching,~~revenue from ~~developing,~~the ~~manufacturing~~sales ~~and~~of ~~selling~~our ~~bamboo charcoal biomass~~ organic fertilizers,. ~~amino~~We ~~acid~~currently ~~water-soluble fertilizers,~~have ~~selenium-rich~~one ~~foliage~~integrated ~~fertilizers~~factory ~~and~~covering ~~other~~a ~~types~~land area of ~~fertilizers~~143,590 square feet in ~~the~~Yichun City, Jiangxi Province, PRC ~~through~~to produce our ~~subsidiary~~organic fertilizers, ~~Jiangxi~~which ~~Kenongwo~~has ~~Technology Co.,~~been ~~Ltd~~in operations since 2017. ~~(“Jiangxi~~We ~~Kenongwo”),~~plan ato ~~company~~expand ~~incorporated~~our ~~under~~production capacity ~~the~~and ~~laws~~build ofan ~~the~~automatic ~~PRC~~and standardized production line.

We ~~generated~~ believe that our ~~revenue~~brand reputation ~~from~~and ~~the~~ability ~~sales~~to oftailor our ~~organic~~products ~~fertilizers.~~to Wemeet ~~currently~~the ~~have~~requirements ~~one~~of ~~integrated~~various ~~factory~~regions ~~covering~~of athe ~~land~~PRC ~~area~~affords ofus ~~143,590~~a competitive advantage. ~~square~~We ~~feet~~purchase inthe ~~Yichun~~majority ~~City,~~of ~~Jiangxi~~our ~~Province,~~raw ~~PRC~~materials tofrom ~~produce~~suppliers ~~our~~located ~~organic~~in ~~fertilizers,~~the ~~which~~PRC ~~has~~and ~~been~~use insuppliers ~~operations~~that ~~since~~are ~~2017.~~located Wein ~~plan~~close proximity to ~~expand~~ our ~~production~~manufacturing ~~capacity~~facilities, ~~and~~which ~~build~~helps anus ~~automatic~~to ~~and~~control ~~standardized~~our ~~production~~cost ~~line~~of revenue.

WeAmidst the COVID-19 outbreak ~~believe~~in ~~that~~2020, our ~~brand~~business ~~reputation~~operations were adversely impacted. In particular, the lockdown policy in China has caused delays in the logistics industry and ~~ability~~consequently, tothe ~~tailor~~supply of our ~~products~~raw materials was impacted. In addition, the restrictions of face-to-face ~~meet~~interactions have slowed down the ~~requirements~~process of ~~various~~our ~~regions~~marketing, client meeting and new products launching activities. The spread of ~~the~~COVID-19 ~~PRC~~has ~~affords~~been useffectively controlled in China. People’s daily life and businesses’ operations started going to normalcy. As a ~~competitive~~result, ~~advantage~~we believe these negative impacts are temporary. WeHowever, ~~purchase~~there is significant uncertainty around the ~~majority~~breadth and duration of ~~our~~business ~~raw~~disruptions ~~materials~~related to ~~from~~COVID-19, ~~suppliers~~as ~~located~~well inas its impact on the ~~PRC~~economy of China and ~~use~~the ~~suppliers~~rest ~~that~~of ~~are~~the ~~located in~~world ~~close~~and, ~~proximity~~as tosuch, ~~our~~the ~~manufacturing~~extent ~~facilities,~~of ~~which~~the ~~helps~~business usdisruption and tothe ~~control~~related ~~our~~financial ~~cost~~impact ofcannot ~~revenue~~be reasonably estimated at this time.

~~Amidst the~~China ~~COVID-19~~is ~~outbreak in 2020, our business operations were adversely impacted. In particular,~~ the ~~lockdown~~principal ~~policy in China has caused~~market ~~delays~~for ~~in the logistics industry and consequently, the supply of~~ our ~~raw materials was impacted. In addition~~products, ~~the~~which ~~restrictions~~are ofprimarily ~~face-~~sold to~~-face interactions~~ ~~have slowed down the process of~~ our ~~marketing,~~customers ~~client~~through ~~meeting~~distributors ~~and~~in ~~new~~over ~~products~~twenty ~~launching~~provinces ~~activities. The spread of COVID-19 has been effectively controlled~~ in China., ~~People’s~~including ~~daily life and businesses’ operations started going to normalcy. As a~~Jiangxi, ~~result~~Hunan, weHubei, ~~believe~~Fujian, ~~these~~Jiangsu, ~~negative~~Shanghai, ~~impacts~~Zhejiang, ~~are~~Sichuan, ~~temporary.~~Chongqing, ~~However~~Guangdong, ~~there~~Hainan, isXinjiang, ~~significant~~Guizhou, ~~uncertainty~~Anhui, ~~around~~Shandong, ~~the breadth and duration of~~Shanxi, ~~business~~Shaanxi, ~~disruptions related to COVID-19~~Liaoning, ~~as well as its impact on the economy of China and the rest of the world and~~Jilin, ~~as such~~Heilongjiang, ~~the~~Yunnan ~~extent of the business disruption~~ and ~~the~~Guangxi ~~related financial impact cannot be reasonably estimated at this time~~provinces.

~~China is~~Critical ~~the~~Accounting principal market for our products, which are primarily sold to our customers through distributors in over twenty provinces in China, including Jiangxi, Hunan, Hubei, Fujian, Jiangsu, Shanghai, Zhejiang, Sichuan, Chongqing, Guangdong, Hainan, Xinjiang, Guizhou, Anhui, Shandong, Shanxi, Shaanxi, Liaoning, Jilin, Heilongjiang, Yunnan and Guangxi provinces.Policies

~~Critical~~Management’s discussion ~~Accounting~~and ~~Policies~~analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with US GAAP. Our financial statements reflect the selection and application of accounting policies that require management to make significant estimates and judgments. We believe the following critical accounting policies used in the preparation of our financial statements require significant judgments and estimates. For additional information relating to these and other accounting policies, see Note 2 to our financial statements included elsewhere in this report.

~~Management’s discussion~~Basis ~~and analysis~~ of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with US GAAP. Our financial statements reflect the selection and application of accounting policies that require management to make significant estimates and judgments. We believe the following critical accounting policies used in the preparation of our financial statements require significant judgments and estimates. For additional information relating to these and other accounting policies, see Note 2 to our financial statements included elsewhere in this report.Presentation

~~Basis~~Our financial statements ofare ~~Presentation~~prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP.

~~Our financial~~Going ~~statements are prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP.~~Concern

~~Going~~The accompanying consolidated ~~Concern~~financial statements have been prepared assuming that the Company will continue as a going concern as the Company’s net income is positive on June 30, 2023 and the Company is able to obtain financial support from shareholder to meet its short term liquidity shortage.

The ~~accompanying~~Company ~~consolidated~~plans ~~financial~~to ~~statements have been prepared~~continue ~~assuming~~its ~~that~~expansion ~~the~~and ~~Company~~investments, which will ~~continue~~require ascontinued aimprovements ~~going~~in ~~concern~~revenue, ~~as the Company’s~~ net income ~~is positive on March 31~~, ~~2023~~ and ~~the~~cash ~~Company is able to obtain financial support from shareholder to meet its short term liquidity shortage~~flows.

~~The Company plans to continue its expansion and investments, which will require continued improvements in revenue, net income, and cash flows.~~18

18Revenue Recognition

~~Revenue~~The Company adopted ASC 606 “Revenue Recognition”, and recognizes revenue when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

The Company ~~adopted~~derives ~~ASC~~its ~~606~~revenues from ~~“Revenue~~the ~~Recognition”,~~sale ~~and~~of ~~recognizes~~fertilizer ~~revenue~~products. ~~when~~The ~~control~~Company ofapplies the ~~promised~~following ~~goods~~five orsteps ~~services~~in isorder ~~transferred~~ to ~~customers,~~determine inthe anappropriate amount ~~that~~of ~~reflects the consideration we expect~~ revenue to be ~~entitled~~recognized toas init ~~exchange~~fulfils ~~for~~its ~~those~~obligations ~~goods~~under oreach ~~services.~~of its agreements:

●Results ~~identify~~of the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; and ● recognize revenue as the performance obligation is satisfied.Operations

~~Results~~ Comparison of ~~Operations~~the Three months ended June 30, 2023 and 2022

Comparison of the Three months ended March 31, 2023 and 2022

	For the Three months ended June 30,						Variance
	2023			2022			Amount			%
	$			$			$
Revenues		1,535,042			1,654,237			(119,195	)		(7.21	)
Cost of revenues		1,112,454			1,303,451			(190,997	)		(14.65	)
Gross profit		422,588			350,786			71,802			20.47
Operating expenses:
Selling expenses		51,295			54,856			(3,561	)		(6.49	)
General and administrative expenses		154,994			152,377			2,617			1.72
Total operating expenses		206,289			207,233			(944	)		(0.46	)
Income from operations		216,299			143,553			72,746			50.68
Other income (expense):
Interest expense		(6,660	)		(8,007	)		1,347			(16.82	)
Other (expenses) income		(2,459	)		4,325			(6,784	)		(156.85	)
Total other expenses		(9,119	)		(3,682	)		(5,437	)		147.69
Income before income taxes		207,180			139,871			67,309			48.12
Income taxes		-			-			-			-
Net income		207,180			139,871			67,309			48.12

	For the Three months ended March 31,						Variance
	2023			2022			Amount			%
	$			$			$
Revenues		2,118,522			1,894,177			224,345			11.84
Cost of revenues		1,428,443			1,428,427			16			-
Gross profit		690,079			465,750			224,329			48.17
Operating expenses:
Selling expenses		62,521			63,947			(1,426	)		(2.23	)
General and administrative expenses		172,114			285,199			(113,085	)		(39.65	)
Total operating expenses		234,635			349,146			(114,511	)		(32.80	)
Income from operations		455,444			116,604			338,840			290.59
Other income (expense):
Interest expense		(6,858	)		(8,355	)		1,497			(17.92	)
Other income, net		3,175			159			3,016			1896.86
Other expenses		(2,040	)		(788	)		(1,252	)		158.88
Total other income		(5,723	)		(8,984	)		3,261			(36.30	)
Income before income taxes		449,721			107,620			342,101			317.88
Income taxes		-			-			-			-
Net income		449,721			107,620			342,101			317.88

Revenue

~~Revenue~~For the three months ended June 30, 2023, our total revenue was $1,535,042, representing a decrease of 7.21% compared to $1,654,237 for the same period in 2022. This decrease was mainly due to the change in exchange rate, actually the amount of RMB was increased, an increase in demand of our products after the Company developed and obtained more customers.

For the three months ended March 31, 2023, our total revenue was $2,118,522, representing an increase of 11.84% compared to $1,894,177 for the same period in 2022. This increase was mainly due to an increase in demand of our products after the Company developed and obtained more customers.19

19The Company’s disaggregate revenue streams are summarized as follows:

The Company’s disaggregate revenue streams are summarized as follows:

	For the Three months ended June 30,
	2023		2022
Revenues – Solid organic fertilizers	$	1,535,042	$	1,654,237
Total revenues	$	1,535,042	$	1,654,237

	For the Three months ended March 31,
	2023		2022
Revenues – Solid organic fertilizers	$	2,118,522	$	1,894,177
Total revenues	$	2,118,522	$	1,894,177

Cost of revenues

Cost of revenues for the fertilizers was $1,112,454 and $1,303,451 for the three months ended June 30, 2023 and 2022, respectively, a decrease $0.19 million. The small decrease in cost of sales was due to the liberalization of the logistics industry the Company’s raw material costs have also been reduced.

~~Cost of revenues for the fertilizers was $1,428,443and $1,428,427 for the three months ended March 31, 2023 and 2022, respectively, an increase $16.~~ The ~~small~~Company’s ~~increase in~~ disaggregate cost of ~~sales~~revenues ~~was~~streams ~~due~~are tosummarized ~~the~~as ~~liberalization of the logistics industry the Company’s raw material costs have also been reduced.~~follows:

The Company’s disaggregate cost of revenues streams are summarized as follows:

	For the Three months ended June 30,
	2023		2022
Cost of revenues – Bamboo charcoal biomass organic fertilizers	$	1,112,454	$	1,303,451
Total cost of revenues	$	1,112,454	$	1,303,451

	For the Three months ended March 31,
	2023		2022
Cost of revenues – Bamboo charcoal biomass organic fertilizers	$	1,428,443	$	1,428,427
Total cost of revenues	$	1,428,443	$	1,428,427

Gross Profit

~~Gross~~Our gross profit was $422,588 ~~Profit~~and $350,786 with gross margin of 27.53% and 21.21%, for the three months ended June 30, 2023 and 2022, respectively. The increase in gross profit was due to cost of sales was reduced.

Our gross profit was $690,079 and $465,750 with gross margin of 32.57% and 24.59%, for the three months ended March 31, 2023 and 2022, respectively. The increase in gross profit was due to cost of sales was reduced.20

20Selling Expenses

~~Selling~~Our ~~Expenses~~selling expenses were $51,295 for the three months ended June 30, 2023, representing a decrease of $3,561 or 6.49% compared to $54,856 for the three months ended June 30, 2022. Selling expenses are not much different compared to the same period of last fiscal year.

~~Our selling~~General ~~expenses~~and ~~were~~Administrative $62,521 for the three months ended March 31, 2023, representing a decrease of $1,426 or 2.23% compared to $63,947 for the three months ended March 31, 2022. Selling expenses are not much different compared to the same period of last fiscal year.Expenses

General and ~~Administrative~~administrative expenses ~~Expenses~~increased by $2,617, or 1.72% from $152,377 for the three months ended June 30, 2022 to $154,994 for the same period in 2023.

~~General~~Research and ~~administrative~~Development ~~expenses~~(“R&D”) decreased by $113,085, or 39.65% from $285,199 for the three months ended March 31, 2022 to $172,114 for the same period in 2023. This decrease was mainly due to gift, meal, and conference expenses was reduced.Expenses

Research and development expenses include salaries and ~~Development~~other (“compensation-related expenses paid to the Company’s research and product development personnel while they are working on R&D”) ~~Expenses~~projects, as well as raw materials used for the R&D projects. R&D expenses incurred by the Company are included in the general and administrative expenses and totaled $37,437 and $40,955 for the three months ended June 30, 2023 and 2022, respectively.

~~Research~~Net ~~and~~Income development expenses include salaries and other compensation-related expenses paid to the Company’s research and product development personnel while they are working on R&D projects, as well as raw materials used for the R&D projects. R&D expenses incurred by the Company are included in the general and administrative expenses and totaled $36,632 and $42,529 for the three months ended March 31, 2023 and 2022, respectively.

~~Net~~Our net income was $207,180 ~~Income~~and $139,871 for the three months ended June 30, 2023 and 2022, respectively, representing an increase of $67,309. It was due to the increase in revenues, as discussed above.

~~Our~~Comparison ~~net~~of ~~income was $449,721 and $107,620 for~~ the ~~three~~Six months ended ~~March~~ 31June 30, 2023 and 2022~~, respectively, representing an increase of $342,101. It was due to the increase in revenues, as discussed above.~~

Liquidity and Capital Resources

	For the Six months ended June 30,						Variance
	2023			2022			Amount			%
	$			$			$
Revenues		3,653,564			3,548,414			105,150			2.96
Cost of revenues		2,540,897			2,731,878			(190,981	)		(6.99	)
Gross profit		1,112,667			816,536			296,131			36.27
Operating expenses:
Selling expenses		113,816			118,803			(4,987	)		(4.20	)
General and administrative expenses		327,108			437,576			(110,468	)		(25.25	)
Total operating expenses		440,924			556,379			(115,455	)		(20.75	)
Income from operations		671,743			260,157			411,586			158.21
Other income (expense):
Interest expense		(13,518	)		(16,362	)		2,844			(17.38	)
Other (expenses) income		(1,324	)		3,696			(5,020	)		(135.82	)
Total other expense		(14,842	)		(12,666	)		(2,176	)		17.18
Income before income taxes		656,901			247,491			409,410			165.42
Income taxes		-			-			-			-
Net income		656,901			247,491			409,410			165.42

~~Our working capital deficit was $728,632 and $229,703 for the three months ended March 31, 2023 and December 31, 2022, respectively.~~Revenue

WeFor the six months ended ~~have~~June ~~respectively~~30, ~~financed~~2023, our ~~operations~~total ~~over~~revenue ~~the~~was ~~three~~$3,653,564, ~~months~~representing ~~ended~~an ~~March~~increase 31of 2.96% compared to $3,548,414 ~~2023~~for ~~and~~the same period in 2022. This ~~primarily~~increase ~~through~~was ~~proceeds~~mainly ~~from~~due ~~advances from~~to ~~related~~an ~~parties~~increase ~~and~~in demand of our products after the ~~long-term~~Company ~~loans~~developed and obtained more customers.

~~The components of cash flows are discussed below:~~21

	For the Three months ended March 31,
	2023			2022
Net cash used in operating activities	$	(4,653	)	$	(335,858	)
Net cash used in investing activities		(525	)		(10,206	)
Net cash (used in)/provided by financing activities		(238,281	)		356,854
Exchange rate effect on cash		16,156			(11,819	)
Net cash outflow	$	(227,303	)	$	(1,029	)

The Company’s disaggregate revenue streams are summarized as follows:

	For the Six months ended June 30,
	2023		2022
Revenues – Solid organic fertilizers	$	3,653,564	$	3,548,414
Total revenues	$	3,653,564	$	3,548,414

~~Cash used~~Cost inof ~~Operating Activities~~revenues

~~For the three months~~Cost ~~ended~~of ~~March~~revenues ~~31,~~for ~~2023,~~the ~~net~~fertilizers ~~cash used in operating activities~~ was $42,~~653~~540,897 ~~which~~and ~~consisted primarily of net income of~~ $~~449~~2,~~721~~731,878 ~~which was~~for ~~adjusted~~the bysix ~~depreciation~~months ~~and~~ended ~~amortization~~June ~~of $61~~30,~~887.~~ ~~The~~2023 ~~Company~~and ~~had an increase of $60~~2022,~~933~~ ~~in account payables and accrued payables~~respectively, a decrease of $~~462,970~~0.19 inmillion. ~~accounts~~The ~~receivable,~~small a decrease in cost of ~~$63,031~~sales inwas ~~prepayments~~due to the ~~suppliers. The~~liberalization ~~Company~~of ~~incurred~~the ~~a decrease~~logistics inindustry ~~inventories~~the ofCompany’s ~~$46,377~~raw ~~and~~material ~~a decrease~~costs inhave ~~other~~also ~~receivable~~been ~~of $52,166~~reduced.

For the three months ended March 31, 2022, net cash used in operating activities was $335,858, which consisted primarily of net income of $107,620, which was adjusted by depreciation and amortization of $37,167. The Company’s ~~had an increase of $303,998 in account payables and accrued payables which was due to the fact that the Company purchased~~disaggregate ~~raw~~cost ~~materials and paid off the bills in longer terms, a decrease~~ of ~~$635,196~~revenues instreams ~~accounts~~are ~~receivable~~summarized ~~which~~as was due to longer payment terms offered to loyal customers, a decrease of $26,599 in prepayments to the suppliers for procurement of raw materials and deposit for the building materials and equipment. The Company incurred a decrease in inventories of $81,194 and a decrease in other receivable of $41,654.follows:

Cash used in Investing Activities

	For the Six months ended June 30,
	2023		2022
Cost of revenues – Bamboo charcoal biomass organic fertilizers	$	2,540,897	$	2,731,878
Total cost of revenues	$	2,540,897	$	2,731,878

~~Net~~Gross ~~cash used in investing activities was $525 for the three months ended March 31, 2023. The activities consisted of $525 in purchasing plant and equipment.~~Profit

~~Net~~Our ~~cash~~gross ~~used~~profit inwas ~~investing~~$1,112,667 ~~activities~~and ~~was~~ $10816,~~206~~536 with gross margin of 30.45% and 23.01%, for the ~~three~~six months ended ~~March~~June 3130, 2023 and 2022, respectively. The ~~activities~~increase ~~consisted of $10,206~~ in ~~purchasing~~gross profit ~~plant~~was ~~and~~due ~~equipment and~~to ~~Intangible~~cost ~~assets~~of insales ~~progress~~was reduced.

~~Cash Provided by Financing Activities~~22

~~Net~~Selling ~~cash used in financing activities was $238,281 for the three months ended March 31, 2023. During this period, Repayment to director of $238,281.~~Expenses

~~Net~~Our ~~cash~~selling ~~provided~~expenses ~~by financing~~were ~~activities was~~ $~~356~~113,~~854~~816 for the ~~three~~six months ended ~~March~~June 3130, ~~2022.~~2023, ~~During~~representing ~~this~~a ~~period~~decrease of $4,987 ~~cash~~or ~~provided~~4.20% bycompared ~~financing~~to ~~activities~~$118,803 ~~mainly~~for ~~included~~the six months ended ~~proceeds~~June ~~from~~30, ~~related~~2022. ~~parties~~Selling expenses are not much different compared to the same period of ~~$356,854~~last fiscal year.

~~Off-balance Sheet~~General ~~Arrangements~~and Administrative Expenses

~~We have~~General ~~not~~and ~~entered~~administrative expenses ~~into~~decreased ~~any~~by ~~financial~~$110,468, ~~guarantees~~ or ~~other~~25.25% ~~commitments~~from to$437,576 ~~guarantee~~for the ~~payment~~six months ~~obligations~~ended ofJune ~~any~~30, ~~third~~2022 ~~parties. We have not entered into any derivative contracts that are indexed~~ to ~~its shares and classified as shareholder’s equity or that are not reflected in its consolidated financial statements. Furthermore~~$327,108 wefor dothe ~~not~~same ~~have~~period ~~any retained or contingent interest~~ in ~~assets transferred~~ to2023. anThis ~~unconsolidated~~decrease ~~entity~~was ~~that~~mainly ~~serves~~due ~~as credit, liquidity or market risk support~~ to ~~such entity. We do not have any variable interest in any unconsolidated entity that provides financing~~gift, ~~liquidity~~meal, ~~market risk or credit support to us or that engages in leasing, hedging or research~~ and ~~development~~conference ~~services~~expenses ~~with~~was usreduced.

22Research and Development (“R&D”) Expenses

~~ITEM~~Research and development 3expenses ~~QUANTITATIVE~~include ~~AND~~salaries ~~QUALITATIVE~~and ~~DISCLOSURES~~other ~~ABOUT~~compensation-related ~~MARKET~~expenses ~~RISKS~~paid to the Company’s research and product development personnel while they are working on R&D projects, as well as raw materials used for the R&D projects. R&D expenses incurred by the Company are included in the general and administrative expenses and totaled $74,069 and $82,610 for the six months ended June 30, 2023 and 2022, respectively.

~~Liquidity Risk~~Net Income

~~We are~~Our ~~also~~net ~~exposed~~income towas ~~liquidity~~$656,901 and ~~risk~~$247,491 ~~which~~for isthe ~~risk~~six ~~that~~months itended isJune ~~unable~~30, to2023 ~~provide sufficient capital resources~~ and ~~liquidity~~2022, torespectively, ~~meet~~representing ~~its commitments~~an ~~and~~increase ~~business~~of ~~needs~~$409,410. ~~Liquidity~~It ~~risk~~was isdue ~~controlled~~to by the ~~application of financial position analysis and monitoring procedures.~~increase ~~When~~in ~~necessary~~revenues, weas ~~will~~discussed ~~turn to other financial institutions and third parties to obtain short-term funding to meet the liquidity shortage~~above.

~~Inflation Risk~~Liquidity and Capital Resources

WeOur ~~are~~working ~~also~~capital ~~exposed~~gain was ~~to inflation risk and inflationary factors~~$958,801 ~~such as increases in raw material~~ and ~~overhead costs~~$229,703 ~~which could impair~~at the ~~our~~six ~~operating~~months ~~results.~~ended ~~Although~~June ~~we do not believe that inflation has had a material impact on our financial position or results of operations to date~~30, a2023 ~~high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin~~ and ~~operating~~December ~~expenses~~31, as2022, ~~a percentage of revenue if the selling prices of our products do not increase with such increased costs~~respectively.

~~Foreign~~We have respectively financed ~~Currency~~our ~~Risk~~operations over the six months ended June 30, 2023 and 2022 primarily through proceeds from advances from related parties and the long-term loans.

All of our operating activities and a significant portion of our assets and liabilities are denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the Peoples’ Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. The ~~value~~components of ~~RMB~~cash ~~is subject to changes in central government policies and to international economic and political developments affecting~~flows ~~supply~~are ~~and~~discussed ~~demand in the China Foreign Exchange Trading System market.~~below:

ITEM 4. CONTROLS AND PROCEDURES

	For the Six months ended June 30,
	2023			2022
Net cash provided by / (used in) operating activities	$	10,169		$	(494,519	)
Net cash used in investing activities		(4,980)			(44,291	)
Net cash (used in)/provided by financing activities		(235,309)			512,401
Exchange rate effect on cash		1,153			26,625
Net cash (outflow) inflow	$	(228,967	)	$	216

~~Disclosure Controls and Procedures~~23

~~We maintain~~Cash ~~disclosure~~used ~~controls and procedures (as defined~~ in ~~Rule~~Operating 13a-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including to our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.Activities

~~As required~~For bythe ~~Rule~~six ~~13a-15~~months ~~under~~ended ~~the Exchange Act~~June 30, ~~our management~~2023, ~~including~~net ~~our~~cash ~~Chief~~provided ~~Executive~~by ~~Officer~~operating ~~and~~activities ~~Chief~~was ~~Financial Officer~~$10,169, ~~evaluated the~~which ~~effectiveness~~consisted primarily of ~~the~~net ~~design~~income ~~and~~of ~~operation~~$656,901, ofwhich ~~our~~was ~~disclosure~~adjusted by ~~controls~~depreciation and ~~procedures~~amortization asand ofloss ~~March~~on ~~31,~~disposal ~~2023.~~of ~~Based~~PPE onof ~~that evaluation~~$118, ~~our~~884 ~~Chief Executive Officer~~ and ~~Chief~~$2,906. ~~Financial~~The ~~Officer~~Company ~~concluded~~had ~~that~~a as decrease of ~~March 31~~$374,306 ~~2023,~~in account payables and asaccrued ofpayables, ~~the~~a ~~date~~decrease ~~that the evaluation~~ of ~~the~~ ~~effectiveness~~$172,769 ofin ~~our~~accounts ~~disclosure~~receivable, ~~controls~~a ~~and~~decrease ~~procedures~~of ~~was completed~~$109,211 ~~our~~in ~~disclosure~~prepayments ~~controls~~to ~~and~~the ~~procedures~~suppliers. The ~~were~~Company ~~not~~incurred ~~effective due~~a todecrease ~~the~~in ~~continuing~~inventories ~~material~~of ~~weakness~~$73,709 inand ~~our~~a ~~internal~~decrease ~~control~~in ~~over~~other ~~financial~~receivable ~~reporting~~of $50,125.

23For the six months ended June 30, 2022, net cash used in operating activities was $494,519, which consisted primarily of net income of $247,491, which was adjusted by depreciation and amortization of $73,488. The Company had a decrease of $142,753 in account payables and accrued payables, an increase of $992,424 in accounts receivable, a decrease of $116,664 in prepayments to the suppliers, which were offset by an increase of $24,864 in inventories and an increase in other receivable of $58,052.

~~The material~~Cash ~~weakness~~used ~~and significant deficiency identified by our management as of March 31, 2023 relates to the ability of the Company to record transactions and provide disclosures~~ in ~~accordance~~Investing with GAAP. We did not have sufficient and skilled accounting personnel with an appropriate level of experience in the application of GAAP commensurate with our financial reporting requirements. For example, our staff members do not hold licenses such as Certified Public Accountant or Certified Management Accountant in the United States, have not attended United States institutions for training as accountants, and have not attended extended educational programs that would provide sufficient relevant education relating to GAAP. Our staff will require substantial training to meet the demands of a U.S. public company and our staff’s understanding of the requirements of GAAP-based reporting is inadequate.Activities

~~We plan~~Net tocash ~~provide~~used ~~GAAP training sessions to our accounting team. The training sessions will be organized to help our corporate accounting team gain experience~~ in ~~GAAP reporting and to enhance their awareness of new and emerging pronouncements with potential impact over our~~investing ~~financial~~activities ~~reporting.~~was We$4,980 ~~plan~~for tothe ~~continue~~six tomonths ~~recruit~~ended ~~experienced~~June ~~and professional accounting and financial personnel and participate in educational seminars~~30, ~~tutorials, and conferences and employ more qualified accounting staff in future~~2023.

~~Changes~~Net cash used in investing activities was $44,291 for the six months ended June 30, 2022. The activities consisted of our investments of $42,525 in ~~Internal~~purchasing ~~Controls~~plant and ~~over~~equipment ~~Financial~~and ~~Reporting~~an adjustment of $1,746 of intangible assets due to currency exchange effect.

~~During the~~Cash ~~three~~Provided ~~months ended March 31, 2023, there were no changes in our internal control over financial reporting identified in connection with the evaluation performed during the period covered~~ by ~~this~~Financing ~~report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.~~Activities

~~Inherent~~Net cash used in financing activities was $235,309 for the six months ~~Limitations~~ended ~~over~~June ~~Internal~~30, ~~Controls~~2023. During this period, Repayment to director and related parties of $235,309.

~~Our internal~~Net ~~control~~cash ~~over~~provided ~~financial~~by ~~reporting~~financing activities iswas ~~designed~~$512,401 tofor ~~provide reasonable assurance regarding~~ the ~~reliability~~six ofmonths ~~financial~~ended ~~reporting and~~June ~~the~~30, ~~preparation~~2022. ofDuring ~~financial~~this ~~statements~~period, ~~for~~cash ~~external~~provided ~~purposes~~by infinancing ~~accordance~~activities ~~with~~mainly ~~GAAP. Our internal control over financial reporting~~included ~~includes~~proceeds ~~those~~from ~~policies~~related ~~and~~parties ~~procedures~~of ~~that:~~$512,401.

~~(i)~~Off-balance ~~pertain~~Sheet to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.Arrangements

~~Management, including~~We ~~our~~have ~~Chief~~not ~~Executive~~entered ~~Officer~~into any ~~and~~financial ~~Chief~~guarantees ~~Financial~~or ~~Officer,~~other ~~does~~commitments ~~not~~to ~~expect~~guarantee ~~that~~the ~~our~~payment ~~internal~~obligations ~~controls~~of ~~will~~any ~~prevent~~third orparties. ~~detect all~~We ~~errors~~have ~~and~~not ~~all~~entered ~~fraud.~~into Aany derivative ~~control~~contracts ~~system,~~that noare ~~matter~~indexed ~~how~~to ~~well~~its ~~designed~~shares and ~~operated,~~classified ~~can~~as ~~provide~~shareholder’s ~~only~~equity ~~reasonable,~~or ~~not absolute, assurance~~ that ~~the~~are ~~objectives~~not ofreflected ~~the~~in ~~control~~its ~~system~~consolidated financial ~~are met~~statements. ~~Further~~Furthermore, ~~the~~we ~~design~~do ofnot ahave ~~control~~any ~~system~~retained ~~must~~or ~~reflect~~contingent ~~the~~interest ~~fact~~in ~~that~~assets ~~there~~transferred ~~are~~to ~~resource constraints,~~an ~~and~~unconsolidated ~~the~~entity that ~~benefits~~serves ofas ~~controls~~credit, ~~must~~liquidity beor ~~considered~~market ~~relative~~risk support to ~~their~~such ~~costs~~entity. ~~Because~~We ofdo ~~the~~not ~~inherent~~have ~~limitations~~any invariable ~~all~~interest ~~control systems,~~in noany ~~evaluation~~unconsolidated ~~of internal controls can provide absolute assurance~~ entity that ~~all~~provides ~~control issues and instances of fraud~~financing, ~~if any~~liquidity, ~~have been~~market ~~detected.~~risk ~~Also,~~or ~~any~~credit ~~evaluation~~support ~~of the effectiveness of controls in future periods are subject~~ to ~~the~~us ~~risk~~or that ~~those~~engages ~~internal controls may become inadequate because of changes~~ in ~~business conditions~~leasing, hedging or ~~that~~research ~~the~~and ~~degree~~development services ~~of compliance~~ with ~~the policies or procedures may deteriorate~~us.

~~PART II~~ITEM 3. ~~OTHER~~QUANTITATIVE ~~INFORMATION~~AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

~~ITEM 6.~~Liquidity ~~EXHIBITS~~Risk

~~The~~We ~~following~~are ~~exhibits~~also ~~are~~exposed ~~included~~to asliquidity risk ~~part~~which ofis ~~this~~risk ~~report~~that it is unable to provide sufficient capital resources and liquidity to meet its commitments and business needs. Liquidity risk is controlled by ~~reference:~~the application of financial position analysis and monitoring procedures. When necessary, we will turn to other financial institutions and third parties to obtain short-term funding to meet the liquidity shortage.

31.1		Certification of Principal Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
31.2		Certification of Principal Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
32.1		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
101.INS		Inline XBRL Instance Document.
101.SCH		Inline XBRL Taxonomy Extension Schema Document.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

Inflation Risk

25We are also exposed to inflation risk and inflationary factors, such as increases in raw material and overhead costs, which could impair our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and operating expenses as a percentage of revenue if the selling prices of our products do not increase with such increased costs.

~~SIGNATURES~~Foreign Currency Risk

~~Pursuant~~All of our operating activities toand ~~the~~a ~~requirements~~significant portion of our assets and liabilities are denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the ~~Securities~~Peoples’ ~~Exchange~~Bank ~~Act~~of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of ~~1934,~~foreign currency payments by the ~~registrant~~PBOC ~~has~~or ~~duly~~other ~~caused~~regulatory ~~this~~institutions requires ~~report~~submitting toa bepayment application form together with suppliers’ invoices and signed oncontracts. ~~its~~The ~~behalf~~value byof RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China ~~undersigned~~Foreign ~~thereunto~~Exchange ~~duly~~Trading ~~authorized~~System market.

	KENONGWO GROUP US, INC.
Date: July 27, 2023	By:	/s/ Jianjun Zhong
		Name:	Jianjun Zhong
		Title:	President and Chief Executive Officer
			(principal executive officer)
Date: July 27, 2023	By:	/s/ Jianjun Zhong
		Name:	Jianjun Zhong
		Title:	Chief Financial Officer
			(principal financial officer and principal accounting officer)

ITEM 4. CONTROLS AND PROCEDURES

26Disclosure Controls and Procedures

We maintain disclosure controls ~~+86 400~~and procedures (as defined in Rule 13a-~~915-2178~~15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed ~~NONE~~in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including to our Chief Executive Officer and Chief 0Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.06 101882485 1882485 false --12-31 Q1 0001797762 333-239929 0001797762 2023-01-01 2023-03-31 0001797762 2023-07-27 0001797762 2023-03-31 0001797762 2022-12-31 0001797762 2022-01-01 2022-03-31 0001797762 us-gaap:CommonStockMember 2021-12-31 0001797762 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001797762 us-gaap:RetainedEarningsMember 2021-12-31 0001797762 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001797762 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As required by Rule 13a-15 under the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2023. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of June 30, 2023, and as of the date that the evaluation of the effectiveness of our disclosure controls and procedures was completed, our disclosure controls and procedures were not effective due to the continuing material weakness in our internal control over financial reporting.

The material weakness and significant deficiency identified by our management as of June 30, 2023 relates to the ability of the Company to record transactions and provide disclosures in accordance with GAAP. We did not have sufficient and skilled accounting personnel with an appropriate level of experience in the application of GAAP commensurate with our financial reporting requirements. For example, our staff members do not hold licenses such as Certified Public Accountant or Certified Management Accountant in the United States, have not attended United States institutions for training as accountants, and have not attended extended educational programs that would provide sufficient relevant education relating to GAAP. Our staff will require substantial training to meet the demands of a U.S. public company and our staff’s understanding of the requirements of GAAP-based reporting is inadequate.

We plan to provide GAAP training sessions to our accounting team. The training sessions will be organized to help our corporate accounting team gain experience in GAAP reporting and to enhance their awareness of new and emerging pronouncements with potential impact over our financial reporting. We plan to continue to recruit experienced and professional accounting and financial personnel and participate in educational seminars, tutorials, and conferences and employ more qualified accounting staff in future.

Changes in Internal Controls over Financial Reporting.

During the six months ended June 30, 2023, there were no changes in our internal control over financial reporting identified in connection with the evaluation performed during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations over Internal Controls.

Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Our internal control over financial reporting includes those policies and procedures that:

	(i)	pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

	(ii)	provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

	(iii)	provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.

Management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our internal controls will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of internal controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Also, any evaluation of the effectiveness of controls in future periods are subject to the risk that those internal controls may become inadequate because of changes in business conditions, or that the degree of compliance with the policies or procedures may deteriorate.

PART II. OTHER INFORMATION

ITEM 6. EXHIBITS

The following exhibits are included as part of this report by reference:

31.1		Certification of Principal Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
31.2		Certification of Principal Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
32.1		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
101.INS		Inline XBRL Instance Document.
101.SCH		Inline XBRL Taxonomy Extension Schema Document.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

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.

	KENONGWO GROUP US, INC.

Date: August 16, 2023	By:	/s/ Jianjun Zhong
		Name:	Jianjun Zhong
		Title:	President and Chief Executive Officer
			(principal executive officer)

Date: August 16, 2023	By:	/s/ Jianjun Zhong
		Name:	Jianjun Zhong
		Title:	Chief Financial Officer
			(principal financial officer and principal accounting officer)

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Filing Compare · Kenongwo Group US, Inc.