UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~September 30, 2016

¨	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _______ to _______

Commission file number 333-151200

FLURIDA GROUP, INC.

(Exact name of registrant as specified in its charter)

Nevada

3469

26-0688130

(State or other jurisdiction of

incorporation or organization)

(Primary Standard Industrial

Classification Code Number)

(IRS I.D.)

11220 Rojas Suite C-3El Paso, TX		79935
11220 Rojas Suite C-3 El Paso, TX		79935
(Address of principal executive offices)		(Zip Code)

Issuer's telephone number: (800) 433-9938

N/A

(Former name, former address and former three months, if changed since last report)

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

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller Reporting Company	x

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

As of ~~August~~November 1, 2016 there were 39,290,827 shares issued and outstanding of the registrant's common stock.

TABLE OF CONTENTS

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION

Item 1.	Financial Statements	3
Item 2.	Management's Discussion and Analysis or Plan of Operation.	23
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	32
Item 4.	Controls and Procedures.	32

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings.	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	33
Item 3.	Defaults Upon Senior Securities	33
Item 4.	Mine Safety Disclosures.	33
Item 5.	Other Information.	33
Item 6.	Exhibits.	34

PART I — FINANCIAL INFORMATION
Item 1.	Financial Statements	F-1
Item 2.	Management's Discussion and Analysis or Plan of Operation.	3
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	14
Item 4.	Controls and Procedures.	14
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings.	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	15
Item 3.	Defaults Upon Senior Securities	15
Item 4.	Mine Safety Disclosures.	15
Item 5.	Other Information.	15
Item 6.	Exhibits.	16

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

FLURIDA GROUP, INC.

Financial Statements

(Unaudited)

~~F-1~~As ~~Table~~ of ~~Contents~~September 30, 2016 and 2015

Table of Contents

Balance Sheets			~~F-3~~4
Statement of Operation			~~F-4~~5
Shareholders' Equity			F-5
Shareholders’ Equity			6
Cash Flow Statement			~~F-6~~7
Notes to Financial Statements			~~F-7~~8

~~F-2~~3

FLURIDA GROUP, INC.

FLURIDA GROUP, INC.
CONSOLIDATED BALANCE SHEETS
	September 30		December 31
	2016		2015
Current assets:
Cash and cash equivalents	$	6,363,385	$	8,615,550
Accounts receivable, net		5,977,884		6,086,397
Inventory		239,854		222,195
FX Hedges Investment		-		299,600
Total Current Assets	$	12,581,123	$	15,223,742
Property, plant and equipment, net	$	107,455	$	66,072
Other assets:
Security deposit		6,264		6,264
Total Other Assets	$	6,264	$	6,264

TOTAL ASSETS	$	12,694,842	$	15,296,078
LIABILITIES & EQUITY
Current liabilities:
Account payable	$	4,699,142	$	9,326,168
Income taxes payable		496,667		478,813
Unearned revenue		603,924		272,623
Total current liabilities	$	5,799,733	$	10,077,604
Other Current Liabilities:
Loan from the Bank	$	800,000	$	299,600
Other payable		-		300,000
Total Other Current Liabilities	$	800,000	$	599,600
Total Liabilities	$	6,599,733	$	10,677,204

Stockholders' Equity:
Common stock, $0.001 par value;
200,000,000 shares authorized;
39,290,827 shares issued and outstanding.	$	39,291	$	39,291
Paid-in capital		1,251,313		1,251,313
Retained earnings		4,708,781		3,584,960
Accumulated other comprehensive Income (loss)		95,724		(256,690	)
Total stockholders' equity	$	6,095,109	$	4,618,874

TOTAL LIABILITIES & EQUITY	$	12,694,842	$	15,296,078

~~CONSOLIDATED~~4 ~~BALANCE~~Table ~~SHEETS~~of Contents

	June 30			December 31
FLURIDA GROUP, INC.
	2016			2015
CONSOLIDATED STATEMENT OF OPERATION
ASSETS
	Nine Months Ended						Three Months Ended
Current assets:
	September 30, 2016			September 30, 2015			September 30, 2016		September 30, 2015
Cash and cash equivalents	$	8,804,478		$	8,615,550
	Unaudited			Unaudited			Unaudited		Unaudited
Accounts receivable, net		3,727,351			6,086,397
Revenues:	$	29,167,152		$	54,042,584		$	10,055,716	$	17,475,949
Inventory		428,502			222,195
Cost of Goods Sold	$	25,755,589		$	49,495,643		$	8,836,237	$	15,941,706
FX Hedges Investment		-			299,600
Gross Profit	$	3,411,563		$	4,546,941		$	1,219,479	$	1,534,243
Total Current Assets	$	12,960,331		$	15,223,742
Operating expenses:
Property, plant and equipment, net	$	94,960		$	66,072
Research and development		36,044			187,165			17,849		61,687
Other assets:
Selling, general and administrative expenses		1,572,212			1,485,613			493,362		484,935
Security deposit		6,264			6,264
Depreciation and amortization expenses		18,366			24,700			6,791		8,343
Total Other Assets	$	6,264		$	6,264
Total Operating Expenses	$	1,626,622		$	1,697,478		$	518,002	$	554,965
TOTAL ASSETS	$	13,061,555		$	15,296,078
Operating Income	$	1,784,941		$	2,849,463		$	701,477	$	979,278
LIABILITIES & EQUITY
Investment income, net	$	18,150		$	6,606		$	8,621	$	3,602
Current liabilities:
Interest expense, net		-			9,488			-		-
Account payable	$	6,557,731		$	9,326,168
Income before taxes	$	1,803,091		$	2,846,581		$	710,098	$	982,880
Income taxes payable		455,997			478,813
Income tax expense		679,270			801,820			242,270		300,205
Unearned revenue		618,757			272,623
Net income	$	1,123,821		$	2,044,761		$	467,828	$	682,675
Total current liabilities	$	7,632,485		$	10,077,604
Net Income per common share-Basics	$	0.03		$	0.05		$	0.01	$	0.02
Other Current Liabilities:
Net Income per common share-Diluted	$	0.03		$	0.05		$	0.01	$	0.02
Loan from the Bank	$	-		$	299,600
Other comprehensive Income (Loss), net of tax:
Other payable		-			300,000
Foreign currency translation adjustments		352,414			(389,271	)		198,211		(8,674	)
Total Other Current Liabilities	$	-		$	599,600
Total other comprehensive Income (Loss)	$	352,414		$	(389,271	)	$	198,211	$	(8,674	)
Total Liabilities	$	7,632,485		$	10,677,204
Comprehensive Income (Loss)	$	1,476,235		$	1,655,490		$	666,039	$	674,001
Stockholders' Equity:
Common stock, $0.001 par value; 200,000,000 shares authorized; 39,290,827 shares issued and outstanding.	$	39,291		$	39,291
Paid-in capital		1,251,313			1,251,313
Retained earnings		4,240,953			3,584,960
Accumulated other comprehensive Income (loss)		(102,487	)		(256,690	)
Total stockholders' equity	$	5,429,070		$	4,618,874
TOTAL LIABILITIES & EQUITY	$	13,061,555		$	15,296,078

~~F-3~~5 Table of Contents

FLURIDA GROUP, INC.

FLURIDA GROUP, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY
FOR THE PERIOD ENDED SEPTEMBER 30, 2016
					Additional					Accumulated Other			Total
	Common Stock				Paid-in		Retained			Comprehensive			Stockholders'
	Shares		Amount		Capital		Earnings			Income (Loss)			Equity
Balance, December 31, 2006							$	(1,500	)				$	(1,500	)
Balance, December 31, 2007		27,291,760	$	27,292	$	63,406	$	(20,619	)	$	(126	)	$	69,953
Balance, December 31, 2008		38,990,827	$	38,991	$	1,221,613	$	(214,698	)	$	29,471		$	1,075,377
Balance, December 31, 2009		38,990,827	$	38,991	$	1,221,613	$	(23,633	)	$	48,979		$	1,285,950
Balance, December 31, 2010		38,990,827	$	38,991	$	1,221,613	$	187,572		$	5,523		$	1,453,699
Balance, December 31, 2011		38,990,827	$	38,991	$	1,221,613	$	388,073		$	11,065		$	1,659,742
Balance, December 31, 2012		39,290,827	$	39,291	$	1,251,313	$	543,164		$	(177	)	$	1,833,591
Balance, December 31, 2013		39,290,827	$	39,291	$	1,251,313	$	871,341		$	50,248		$	2,212,193

Adjustment for Exchange rate changes										$	89,567		$	89,567

Net Income for the year ended December 31, 2014							$	611,597					$	611,597
Balance, December 31, 2014		39,290,827	$	39,291	$	1,251,313	$	1,482,938		$	139,815		$	2,913,357

Adjustment for Exchange rate changes										$	(396,505	)	$	(396,505	)

Net Income for the year ended December 31, 2015							$	2,102,022					$	2,102,022
Balance, December 31, 2015		39,290,827	$	39,291	$	1,251,313	$	3,584,960		$	(256,690	)	$	4,618,874

Adjustment for Exchange rate changes										$	352,414		$	352,414

Net Income for the period ended September 30, 2016							$	1,123,821					$	1,123,821
Balance, September 30, 2016		39,290,827		39,291		1,251,313		4,708,781			95,724			6,095,109

~~CONSOLIDATED~~6 ~~STATEMENT~~Table OFof ~~OPERATION~~Contents

	Six Months Ended						Three Months Ended
FLURIDA GROUP, INC.
	June 30,2016			June 30,2015			June 30,2016			June 30,2015
CONSOLIDATED STATEMENT OF CASH FLOWS
	Unaudited			Unaudited			Unaudited			Unaudited
	Nine Months Ended						Three Months Ended
Revenues:	$	19,111,435		$	36,566,635		$	9,705,705		$	19,165,331
	September 30,2016			September 30,2015			September 30,2016			September 30,2015
Cost of Goods Sold	$	16,919,352		$	33,553,937		$	8,534,574		$	17,625,388
Operating Activities:	Unaudited			Unaudited			Unaudited			Unaudited
Gross Profit	$	2,192,083		$	3,012,698		$	1,171,131		$	1,539,943
Net Income	$	1,123,821		$	2,044,761		$	467,828		682,675
Operating expenses:
Adjustments to reconcile net income to net cash
Research and development		18,196			125,479			16,693			81,251
provided by operating activities:
Selling, general and administrative expenses		1,078,849			1,000,678			527,861			556,944
Depreciation expense		18,366			24,700			6,791			8,343
Depreciation and amortization expenses		11,575			16,357			2,550			8,120
Inventory		(17,659	)		7,911,188			188,648			424,511
Total Operating Expenses	$	1,108,620		$	1,142,514		$	547,374		$	646,315
Account receivable		108,513			(4,840,097	)		(2,250,533	)		(1,446,177	)
Operating Income	$	1,083,463		$	1,870,184		$	623,757		$	893,628
Unearned revenue		331,301			(241,184	)		(14,833	)		(191,105	)
Investment income, net	$	9,529		$	3,005		$	4,270		$	3,000
Prepaid rent		-			(2,000	)		-			(2,000	)
Interest expense, net		-			9,488			-			3,000
Decrease in other Payable		(300,000	)
Income before taxes	$	1,092,992		$	1,863,701		$	628,027		$	893,628
Increase/Decrease in income tax payable		17,854			351,020			40,670			200,205
Income tax expense		436,999			501,615			275,577			280,150
Increase/Decrease in account payable		(4,627,026	)		(106,750	)		(1,858,589	)		(323,624	)
Net income	$	655,993		$	1,362,086		$	352,450		$	613,478
Net cash provided by operating activities	$	(3,344,830	)	$	5,141,638		$	(3,420,018	)	$	(647,172	)
Net Income per common share-Basics	$	0.02		$	0.03		$	0.01		$	0.02
Investing Activities:
Net Income per common share-Diluted	$	0.02		$	0.03		$	0.01		$	0.02
Purchase of investment instrument		-			2,618,000			-			-
Other comprehensive Income (Loss), net of tax:
Purchase Property		(59,749	)		(8,899	)		(19,286	)		(2,066	)
Foreign currency translation adjustments		154,203			(380,596	)		160,048			(4,665	)
Net cash provided by investing activities	$	(59,749	)	$	2,609,101		$	(19,286	)	$	(2,066	)
Total other comprehensive Income (Loss)	$	154,203		$	(380,596	)	$	160,048		$	(4,665	)
Financing Activities:
Comprehensive Income (Loss)	$	810,196		$	981,490		$	512,498		$	608,813
Proceeds from issuance of common stock		-			-			-			-
Loan from the Bank		800,000			(800,000	)		800,000			-
Loan return from supplier		-			-			-			-
Net cash provided by financing activities	$	800,000		$	(800,000	)	$	800,000		$	-
Effect of Exchange Rate on Cash	$	352,414		$	(389,271	)	$	198,211		$	(8,674	)
Net increase (decrease) in cash and cash equivalents	$	(2,252,165	)	$	6,561,468		$	(2,441,093	)	$	(657,912	)
Cash and cash equivalents at beginning of the period	$	8,615,550		$	1,825,148		$	8,804,478		$	9,044,528
Cash and cash equivalents at end of the period	$	6,363,385		$	8,386,616		$	6,363,385		$	8,386,616

~~F-4~~7 Table of Contents

FLURIDA GROUP, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY

FOR THE PERIOD ENDED JUNE 30, 2016

					Additional					Accumulated Other			Total
	Common Stock				Paid-in		Retained			Comprehensive			Stockholders'
	Shares		Amount		Capital		Earnings			Income (Loss)			Equity
Balance, December 31, 2006							$	(1,500	)				$	(1,500	)
Balance, December 31, 2007		27,291,760	$	27,292	$	63,406	$	(20,619	)	$	(126	)	$	69,953
Balance, December 31, 2008		38,990,827	$	38,991	$	1,221,613	$	(214,698	)	$	29,471		$	1,075,377
Balance, December 31, 2009		38,990,827	$	38,991	$	1,221,613	$	(23,633	)	$	48,979		$	1,285,950
Balance, December 31, 2010		38,990,827	$	38,991	$	1,221,613	$	187,572		$	5,523		$	1,453,699
Balance, December 31, 2011		38,990,827	$	38,991	$	1,221,613	$	388,073		$	11,065		$	1,659,742
Balance, December 31, 2012		39,290,827	$	39,291	$	1,251,313	$	543,164		$	(177	)	$	1,833,591
Balance, December 31, 2013		39,290,827	$	39,291	$	1,251,313	$	871,341		$	50,248		$	2,212,193
Adjustment for Exchange rate changes										$	89,567		$	89,567
Net Income for the year ended December 31, 2014							$	611,597					$	611,597
Balance, December 31, 2014		39,290,827	$	39,291	$	1,251,313	$	1,482,938		$	139,815		$	2,913,357
Adjustment for Exchange rate changes										$	(396,505	)	$	(396,505	)
Net Income for the year ended December 31, 2015							$	2,102,022					$	2,102,022
Balance, December 31, 2015		39,290,827	$	39,291	$	1,251,313	$	3,584,960		$	(256,690	)	$	4,618,874
Adjustment for Exchange rate changes										$	154,203		$	154,203
Net Income for the period ended June 30, 2016							$	655,993					$	655,993
Balance, June 30, 2016		39,290,827		39,291		1,251,313		4,240,953			(102,487	)		5,429,070

F-5 Table of Contents

FLURIDA GROUP, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

	Six Months Ended						Three Months Ended
	June 30,2016			June 30,2015			June 30,2016			June 30,2015
	Unaudited			Unaudited			Unaudited			Unaudited
Operating Activities:
Net Income	$	655,993		$	1,362,086		$	352,450		$	613,478
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense		11,575			16,357			2,550			8,120
Inventory		(206,307	)		7,486,677			(53,637	)		3,708,282
Account receivable		2,359,046			(3,393,920	)		1,041,546			1,420,463
Unearned revenue		346,134			(50,079	)		423,782			9,750
Decrease in other Payable		(300,000	)		-			(300,000	)		-
Increase/Decrease in income tax payable		(22,816	)		150,815			165,761			79,350
Increase/Decrease in account payable		(2,768,437	)		216,873			(7,052,402	)		2,348,811
Net cash provided by operating activities	$	75,188		$	5,788,809		$	(5,419,950	)	$	8,188,254
Investing Activities:
Purchase of investment instrument					2,618,000			-			-
Purchase Property		(40,463	)		(6,833	)		(20,197	)		(5,733	)
Net cash provided by investing activities	$	(40,463	)	$	2,611,167		$	(20,197	)	$	(5,733	)
Financing Activities:
Proceeds from issuance of common stock		-			-			-			-
Loan from the Bank		-			(800,000	)		-			(300,000	)
Loan return from supplier		-			-			-			-
Net cash provided by financing activities	$	-		$	(800,000	)	$	-		$	(300,000	)
Effect of Exchange Rate on Cash	$	154,203		$	(380,596	)	$	160,048		$	(4,665	)
Net increase (decrease) in cash and cash equivalents	$	188,928		$	7,219,380		$	(5,280,099	)	$	7,877,856
Cash and cash equivalents at beginning of the period	$	8,615,550		$	1,825,148		$	14,084,577		$	1,166,672
Cash and cash equivalents at end of the period	$	8,804,478		$	9,044,528		$	8,804,478		$	9,044,528

F-6 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A –- BUSINESS DESCRIPTION

Flurida Group, Inc. (the "“Company"”), incorporated under the laws of Nevada on December 19, 2006, with registered address at 1955 Baring Blvd, Sparks, NV 89434. The Company has its operating office located at 11220 Rolas Suite C3, El Paso, TX 79935.

Flurida Group leased a research and development center at 24412 S Main Street, Carson, CA 90745.

Flurida Group Inc also has branch located at Naperville, IL 60564.

Flurida Group Inc has a wholly owned subsidiary Flurida Appliance, Inc, a Nevada corporation to sell Flurida Group designed appliances manufactured in China by Chuzhou Fuda Mechanical & Electronics Co., Ltd. Flurida Appliance has its main operating office located at 11220 Rolas Suite C3, El Paso, TX 79935.

The Company'’s main business includes sourcing, distribution and marketing of appliance components and assemblies in Asia, Europe, Australia, North and South America. Those products include ice maker; icemaker dispenser; high efficiency motor, module, crush motor and wire harness, and commercial vegetable dryer. In additionally, the company also launched their own brand of finished products called the ice and water dispenser system which is took place in two locations: Los Angeles CA and El Paso TX.

These parts are manufactured in China by Chuzhou Fuda Mechanical & Electronics Co., Ltd ("“ChuZhou Fuda"”). ChuZhou Fuda was an appliance components and sub-assemblies manufacturer established on March 18, 2008 and located in Chuzhou City, Anhui Province, China.

NOTE B - – SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect certain amounts reported in the financial statements and disclosures. Accordingly, actual results could differ from those estimates.

~~F-7~~8 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B - – SIGNIFICANT ACCOUNTING POLICIES (~~Continue~~Continued)

Basis of accounting

The financial statements reflect the assets, revenues and expenditures of the Company on the accrued basis of accounting.

Cash and Cash Equivalents

The Company considers all highly-liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Foreign Currency Translation

The Company has determined the United States dollars to be its functional currency for Flurida Group USA and European Euro to be its functional currency in European business. Assets and liabilities were translated to U.S. dollars at monthly average exchange rate. Statement of operations amounts were translated to U.S. dollars using the first date of each month during the year. Gains and losses resulting from translating foreign currency financial statements are accumulated in other comprehensive income (loss), a separate component of shareholders'’ equity.

Property, Plant, and Equipment Depreciation

Property, plant, and equipment are stated at cost. Depreciation is being provided principally by straight line methods over the estimated useful lives of the assets. Expenditures for maintenance and repairs, which do not improve or extend the expected useful lives of the assets, are expensed to operations while major repairs are capitalized.

The equipment were recorded as fixed asset to depreciate over 7 years and the electronic data processing equipment and furniture were recorded as fixed asset to depreciate over 5 years with straight line method.

For the ~~six~~nine months period ended ~~June~~September 30 2016, the Company purchased $ 4059,~~019~~305 Furniture and equipment, and $ 444 Computer and data process equipment.

As of ~~June~~September 30, 2016, the company has furniture, Computer and data processing equipment, and equipment at a purchase cost of $ ~~235~~254,~~583~~870, and $ ~~140~~147,~~623~~414 of accumulated depreciation expense was recorded.

~~F-8~~9 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B - – SIGNIFICANT ACCOUNTING POLICIES (~~Continue~~Continued)

Concentration of credit risk

The Company maintains its cash in bank accounts which, at times, may exceed the federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash.

Basics and Diluted Net Loss Per Common Share

Basic earnings per share is computed by dividing income available to common shareholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. Diluted earnings per share assume that any dilutive convertible securities outstanding were converted, with related preferred stock dividend requirements and outstanding common shares adjusted accordingly. It also assumes that outstanding common shares were increased by shares issuable upon exercise of those stock options for which market price exceeds the exercise price, less shares which could have been purchased by us with the related proceeds. In periods of losses, diluted loss per share is computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive.

The Company only issued one type of shares, i.e., common shares only. There are no other types securities were issued. Accordingly, the diluted and basics net loss per common share are the same.

Security Deposit

The Company started having an office in California State from September 2010, which is located at 24412 S Main ST, STE 105, Carson CA 90745. Flurida Group USA Inc made $ 6,264 security deposit for leasing the property.

Account Receivable

As of ~~June~~September 30, 2016, the company had a total of $ 35,~~727~~977,~~351~~884 account receivable from it major customers, which included $ ~~162~~548,~~928~~615 of ChuZhou Fuda, $ 34,~~017~~964,~~055~~106 of Electrolux North America, $ ~~377~~386,~~713~~101 Electrolux Europe and its other subsidiaries, and $ ~~169~~79,~~655~~062 other America corporations.

~~F-9~~10 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B –- SIGNIFICANT ACCOUNTING POLICIES (Continued)

Loans from Bank

The Company entered into a promissory note secured renewal business loan agreement in the principal amount of $ 68,000,000 with East West Bank located in El Monte, CA. And the maturity date of the Note is from ~~July~~September 1030, ~~2014~~2015 to ~~July~~September 3130, ~~2015~~2016. On ~~September~~October 254, ~~2015~~2016, the loan was extended from September 30, ~~2015~~2016 to September 30, ~~2016~~2017. The principal amount of the Note is ~~increased~~decreased to $8 5,000,000. The maximum aggregate amount that may be outstanding under all sub-limits (items 1 through 4) shall be the lesser of $ 85,000,000 or 80% of eligible accounts receivable less than 90 days from invoice date and 50% of inventory. The loan is secured by all company inventories, account receivable, and other assets of the Company.

Effective August 25, 2015, the interest rate on the Notes is amended and restated as "“Variable Interest Rate"”. Interest in this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding.

The Company may only draw up to:

· $ 3,000,000 for issuance of Sight Letters of Credit (LC) · $ 3,000,000 for issuance of Standby Letters of Credit (SBLC) · $ 65,000,000 for Clean Advance of up to maturity of the line · $ 4,000,000 for FX Pre-Settlement Risk allowing customer to purchase forward contracts to hedge against FX current risk. · Up to $250,000 for ACH origination services by delivering to Lender a duly executed ACH application on Lender’s standard form, provided, however, the total amount of the ACH processing reserves imposed by Lender in connection with ACH origination services requested by Borrower shall not exceed, and availability under the Loan shall be reduced by, the ACH Sublimit.

The note is allowed to issue letter of credit up to 120 days past loan maturity.

Interest accrued on amounts advanced shall be due and payable on the 25th day of each month commending with the first month after the date of advance. The outstanding principal balance of this note together with all accrued and unpaid interest and all other amount due hereunder, shall be due and payable on ~~June~~September 30, 2016.

~~F-10~~11 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B –- SIGNIFICANT ACCOUNTING POLICIES (Continued)

Account Payable

The Company incurred accounts payable including professional fees, purchases, payroll and payroll tax liability, and other service fee payables.

As of ~~June~~September 30, 2016, the company had a total of $ 64,~~557~~699,~~731~~142 account payable, which was included $ 42,~~655~~578,~~803~~707 for Chu Zhou Fu Da, $ 1,~~666~~934,~~264~~896 for Fulu Finance Management Limited, $ ~~136~~133,~~695~~589 for US suppliers, $ 711,~~603~~203 for salary and payroll tax payable, and $ 2750,~~366~~747 for all other account payable.

Income Tax Payable

For the fiscal quarter ended ~~June~~September 30, 2016 and 2015, the Company incurred income tax expense of $ ~~275~~242,~~577~~270 and $ ~~280~~300,~~150~~205 respectively. As of ~~June~~September 30, 2016, the income taxes payable of the Company was $ ~~455~~496,~~997~~667.

Inventory

The inventory was valued at cost of purchase from suppliers.

On12 ~~July,~~Table ~~2012, Flurida Group, Inc signed deposit inventory agreements with Electrolux Italia S.p.A., which was effective in January 2013. under the term~~ of the agreements, the supplier, Flurida Group, Inc, agreed to produce, to maintain the transit the customized products per Electrolux's specification. Electrolux maintain a storage location within Electrolux's Italia site for consigned inventory. And Flurida Group, Inc is facilitated to use of Electrolux's storage site located at Treviso, Italy to deposit the products to selling Electrolux; Electrolux will provide labor resources for receipt, stock up, and pulls of consigned products. Flurida Group, Inc., retains title and ownership of products while in transit to Electrolux's site and while stored in the consigned inventory location. Title and ownership will pass to Electrolux when they withdraw products from the consigned inventory location. Upon withdrawal, Electrolux will pay for it under the 60 days payment term stated in the Frame Agreement. Products residing in the consigned inventory for 30 days with no activity due to non communicated demand change will no longer qualify for consignment, and will be considered as withdrawn product after 30 days. Accordingly, title passage and invoicing shall occur on such product per the term.Contents

F-11 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B –- SIGNIFICANT ACCOUNTING POLICIES (Continued)

Inventory (Continued)

On June 25, 2013, Flurida Group, Inc signed consignment inventory agreements with Electrolux Hungary S.p.A., which was effective in September 2013. Under the term of the agreements, the supplier, Flurida Group, Inc, agreed to produce, to maintain the transit the customized products per Electrolux'’s specification. Electrolux maintain a storage location within Electrolux'’s Hungary site for consigned inventory. Electrolux is responsible, at its own cost, for the suitable storage and administration of the consignment stock. Flurida Group, Inc., retains title and ownership of products while in transit to Electrolux'’s site and while stored in the consigned inventory location. Title and ownership will pass to Electrolux when they withdraw products from the consigned inventory location.

Products not drawn from the consignment stock within 30 days of delivery shall be deemed to be withdrawn on the 31^st day after delivery to the warehouse. Accordingly, title passage and invoicing shall occur on such product per the term.

On July, 2013, Flurida Group, Inc. entered into a managed inventory program agreement with Electrolux Australia, which was effective in September 2013.

Under the term of the agreements, the supplier, Flurida Group, Inc, agreed to produce, to maintain and transit the customized products per Electrolux'’s specification. Electrolux has appointed a third party to manage its warehousing ("“Distribution Centre"”) who will maintain and operate the inventories. Flurida Group, Inc., retains title and ownership of products while in transit and while stored in Distribution Centre. Title and ownership will pass to Electrolux when they withdraw products from the Distribution Centre. Upon withdrawal, Electrolux will pay for it under the 90 days payment term stated in the Purchase Agreement.

Stated January 2016, the Company uses Derby Industries LLC to storing the consignment inventory for General Electric Company (GE). Derby Industries LLC, doing business as Derby Supply Chain Solutions, located in Building 6 at General Electric Company Appliance Park in KY, USA. Flurida Group is paid for the warehousing service of the storage of the products. Derby charges the Company monthly for the use of the square footage; meanwhile, provide inbound receipt of goods with proper documentation, on pallets, in containers or boxes; receipt and execution of daily outbound orders to GE; daily transaction and inventory status information available on Derby industries, LLC website.

~~F-12~~13 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B –- SIGNIFICANT ACCOUNTING POLICIES (Continued)

Inventory (Continued)

As of ~~June~~September 30, 2016, there were 394,~~744~~368 pieces ~~freezer~~ motor in Electrolux ~~St.~~Hungary ~~Cloud~~ warehouse. And there were 43,~~032~~528 pieces icemaker stored in the warehouse, Derby Industries LLC, as of consignment inventory for General Electric Company. And ~~2,520~~840 pieces icemakers were shipped out at FOB shipping point Nanjing, China to Derby Industries LLC. ~~The Company has 26,880 pieces motors and 2,088 pieces Dac boxes been shipped out at FOB shipping point Nanjing, China to Electrolux Hungary warehouse.~~ Those purchases haven'’t considered as a sale or a consignment inventory at the period ended ~~June~~September 30, 2016. However, it'’s the in transit inventories of Flurida Group, Inc.

Moreover, Flurida Appliance had total of ~~290~~249 pieces ice water dispenser in Carson center and 9897 pieces ice water dispenser El Paso warehouse.

As a result, as of ~~June~~September 30, 2016, the Company had total inventory at a value $ ~~428~~239,~~502~~854.

Revenues Recognition

Revenues include sales of appliance parts in North America, Australia, South America, Europe, and Asia.

Revenues are recognized from product sales upon shipment, which is the point in time when risk of loss is transferred to the customer, net of estimated returns and allowances.

For the fiscal quarter ended ~~June~~September 30, 2016, the Company had total net revenue of $ 910,~~705~~055,~~705~~716.

For the period ~~April~~July 1 to ~~June~~September 30, 2016, the Company sold icemakers, high efficiency motor, module assembly, wire harness, motors, thermostats, ice and water dispenser, vegetable dryer, and other related refrigerator appliance to North America, which included Electrolux North America, General Electric Company, Exact Replacement Parts, HKF Industries Inc, and others America corporation, for total sales of $ 89,~~924~~388,~~672~~371. The icemakers, assembly, motors, wire harness, vegetable dryer, ice and water dispenser, and related parts were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd; all the icemakers, motors, assembly, wire harness, vegetable dryer, ice and water dispenser, and related parts were shipped out at FOB shipping point Nanjing, China.

~~F-13~~14 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B –- SIGNIFICANT ACCOUNTING POLICIES (Continued)

Revenues Recognition (Continued)

~~For~~The ~~the fiscal quarter ended June 30, 2016, the~~ Company sold ~~components~~Motors and ~~appliance~~other parts to Electrolux –~~Australia~~ Do Brasil for $ 8125,~~504~~946. The ~~components~~motors were manufactured and supplied by ~~Chu~~ChuZhou ~~Zhou~~FuDa ~~Fu Da~~ Mechanical and Electronics; ~~all~~Co., ~~the~~Ltd, ~~icemakers~~ and ~~components~~ were shipped out at FOB shipping point Nanjing, China.

~~The~~For the period July 1 to September 30, 2016, the Company sold ~~Motors~~motors, DAC Boxes, Deflector, and ~~other~~related ~~parts~~refrigerator appliance to Europe, which included Electrolux –Hungry, Doand ~~Brasil~~Gotene Plast AB, for $total ~~185~~sales of $89,~~835~~914. The ~~motors~~DAC Boxes, Deflector, Motors, and other related parts were manufactured and supplied by ~~ChuZhou~~Chu ~~FuDa~~Zhou ~~Mechanical~~Fuda; ~~and~~all ~~Electronics~~the ~~Co.,~~DAC ~~Ltd~~Boxes magnets, and motors were shipped out at FOB shipping point Nanjing, China.

~~For~~The ~~the period April 1 to June 30, 2016, the~~ Company also sold ~~motors,~~icemakers ~~DAC Boxes, Deflector,~~ and related ~~refrigerator~~parts ~~appliance~~ to ~~Europe,~~Asia ~~which included Electrolux Hungry, Electrolux Sweden, and Gotene Plast AB,~~ for ~~total sales of~~ $~~118~~ 103,~~270~~301. The ~~DAC~~icemakers ~~Boxes, Deflector, Motors,~~ and ~~other related~~ parts were manufactured and supplied by Chu Zhou Fuda; all the ~~DAC~~icemakers ~~Boxes magnets, and motors~~ were shipped out at FOB shipping point Nanjing, China.

~~The~~For ~~Company~~the ~~also~~period of July 1 to September 30, 2016, the Company sold ~~icemakers~~thermostats and other related key parts for icemakers and motors, and sold dampers to ~~Asia~~ChuZhouFuDa. ~~for~~Flurida $Group 4purchased some of the parts from Wako Electronics,~~991~~ Inc., ~~The~~an ~~icemakers~~US ~~and~~Company ~~parts~~located ~~were~~at ~~manufactured~~Louisville, KY 40299. Flurida Group also purchased dampers from ITW Motion, an US company located in Illinois, and ~~supplied~~then bysold ~~Chu~~to ~~Zhou~~ChuZhouFuDa. ~~Fuda;~~Flurida ~~all~~Group, Inc. addsaveraged 5% - 10% margin based on the ~~icemakers~~cost of purchase, then sold to them, so, $ 385,687 were ~~shipped~~sold ~~out~~and atinvoiced ~~FOB~~to ~~shipping~~ChuZhouFuDa ~~point~~for ~~Nanjing~~the fiscal quarter ended September 30, ~~China~~2016.

~~For~~In summary, for the period of ~~April~~July 1 to ~~June~~September 30, 2016, the Company ~~sold~~incurred ~~thermostats~~the ~~and~~total ~~other~~gross ~~related~~sales ~~key~~of ~~parts~~$ ~~for icemakers and motors~~10, ~~and sold dampers to ChuZhouFuDa~~093,219. ~~Flurida~~And ~~Group purchased some of~~ the ~~parts from Wako Electronics, Inc., an US~~ Company ~~located~~had atsales ~~Louisville,~~return KYand ~~40299.~~allowance ~~Flurida~~and ~~Group~~sales ~~also~~discount ~~purchased~~of ~~dampers~~$ ~~from ITW Motion~~37, ~~an US company located in Illinois~~503, ~~and then sold to ChuZhouFuDa. Flurida Group~~so, ~~Inc.~~a ~~addsaveraged~~total 5%of -$ 10%,055,716 ~~margin~~net ~~based~~sales onwere ~~the~~recorded. The cost of ~~purchase,~~goods ~~then~~ sold tois ~~them,~~discussed ~~so,~~in $details ~~463,433~~in ~~were~~Note ~~sold~~C, ~~and~~Related ~~invoiced~~Party ~~to ChuZhouFuDa for the fiscal quarter ended June 30, 2016~~Transactions.

~~F-14~~15 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B –- SIGNIFICANT ACCOUNTING POLICIES (Continued)

~~Revenues~~Comprehensive ~~Recognition (Continued)~~Income

InThe ~~summary,~~company’s ~~for~~comprehensive ~~the~~income ~~period~~is comprised of ~~April~~net ~~1 to June 30~~income, ~~2016,~~unrealized ~~the~~gains ~~Company~~and ~~incurred~~losses ~~the~~on ~~total~~marketable ~~gross~~securities ~~sales~~classified offoreign $currency 9translation adjustments,~~075,705.~~ ~~And~~and ~~the~~unrealized ~~Company~~gains ~~had~~and ~~sales~~losses ~~return~~on ~~and~~derivative ~~allowance~~financial ~~and~~instruments ~~sales~~related ~~discount~~to offoreign $currency 0hedging.~~00,~~ ~~so,~~Due ato ~~total~~the ofsignificant $rate 9changed in Euro currency hedging,~~075,705~~ ~~net~~the ~~sales~~Company ~~were~~incurred ~~recorded.~~a ~~The~~foreign ~~cost~~currency translation income of ~~goods~~$ ~~sold~~198,211 isfor ~~discussed~~the infiscal ~~details~~quarter inended ~~Note~~September C30, ~~Related Party Transactions~~2016.

Operating Expense

Operating Expenses includes research and development expense, all selling, general and administrative expenses, and depreciation expenses for Flurida Group Inc. For the fiscal quarter ended ~~June~~September 30, 2016 and 2015, the Company had total operating expenses of $ ~~547~~518,~~374~~002 and $ ~~646~~554,~~315~~965 respectively, which include the research and development expense of $ 1617,~~963~~849 and $ 8161,~~251~~687, and depreciation expenses of $ 26,~~550~~791 and $ 8,~~120~~343, and selling, general and administrative expense of $ ~~527~~493,~~861~~362 and $ ~~556~~484,~~944~~935. Detail was showed on Exhibit A.

Professional Fee

Professional fees are consist of accounting and auditing fee, legal fee, commission and consulting expenses, SEC filing fee, and other professional expenses. The total professional fees were $ 9830,~~645~~610 and $ 7344,~~623~~016 for the fiscal quarter ended ~~June~~September 30, 2016 and 2015 respectively.

Research and Development Expense

The primary function of the research and development center at Flurida Group Inc. is to discover and create new knowledge about scientific and technological topics in order to develop valuable products, processes and services for our customers. The company has continually developed the new product such as electronic controlled icemaker, main wire harnesses for controlling the functions of refrigerator products, and D/C motor technology.

The Company had total research and development expense of $ 1617,~~963~~849 and $ 8161,~~251~~687 for fiscal quarter ended ~~June~~September 30, 2016 and 2015 respectively.

~~F-15~~16 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B –- SIGNIFICANT ACCOUNTING POLICIES (Continued)

Payroll Expense

Started from June 2014, Flurida Group stayed the salaries amount of officers Jianfeng Ding, Yaru Huang, and Ying Zhong for $350,000, $86,520, $ 86,520.

The Social Security tax and Medicare tax were paid by both employer and employees in USA; employees also withheld portion of Federal and State tax calculate by each individual'’s status. All of the tax was submitted to Internal Revenue Service and local government at a semiweekly basis.

The total payroll expenses were $ ~~241~~197,~~390~~743 and $ ~~185~~183,~~777~~781 for the fiscal quarter ended ~~June~~September 30, 2016 and 2015 respectively.

Comprehensive Income

The company's comprehensive income is comprised of net income, unrealized gains and losses on marketable securities classified foreign currency translation adjustments, and unrealized gains and losses on derivative financial instruments related to foreign currency hedging. Due to the significant rate changed in Euro currency hedging, the Company incurred a foreign currency translation income of $ 160,048 for the fiscal quarter ended June 30, 2016.

Income Tax

Income taxes are provided for tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes. Deferred taxes are recognized for differences between the bases of assets and liabilities for financial statement and income tax purposes. The differences in asset and liability bases relate primarily to organization and start-up costs (use of different methods and periods to calculate deduction). Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes. The deferred tax assets and/or liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. The components of the deferred tax asset and liability are classified as current and concurrent based on their characteristics. Valuation allowances are provided for deferred tax assets based on management'’s projection of the sufficiency of future taxable income to realize the assets.

~~F-16~~17 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE B –- SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recent Accounting Pronouncements

Business Combinations —The new guidance on business combinations retains the underlying concepts of the previously issued standard in that the acquirer of a business is required to account for the business combination at fair value. As with previous guidance, the assets and liabilities of the acquired business are recorded at their fair values at the date of acquisition. The excess of the purchase price over the estimated fair values are recorded as goodwill.

The new pronouncement results in some changes to the method of applying the acquisition method of accounting for business combinations in a number of significant aspects. Under the new guidance, all acquisition costs are expensed as incurred and in-process research and development costs are recorded at fair value as an indefinite-lived intangible asset. Prior to the adoption, in-process research and development costs were immediately expensed and acquisition costs were capitalized. Further, the new guidance generally requires restructuring charges associated with a business combination to be expensed subsequent to the acquisition date.

Fair Value Measurements and Disclosures — The pronouncements define fair value, establish guidelines for measuring fair value, and expand disclosures regarding fair value measurements.

Derivative Instruments and Hedging Activities — The pronouncement requires additional disclosures about the objectives of derivative instruments and hedging activities, the method of accounting for such instruments, and a tabular disclosure of the effects of such instruments and related hedged items on Financial Statements. The pronouncement does not change the accounting treatment for derivative instruments.

Variable Interest Entities and Transfers of Financial Assets and Extinguishments of Liabilities — The pronouncement on transfers of financial assets and extinguishments of liabilities removes the concept of a qualifying special-purpose entity and removes the exception from applying variable interest entity accounting to qualifying special-purpose entities. The new guidance on variable interest entities requires an entity to perform an ongoing analysis to determine whether the entity'’s variable interest or interests give it a controlling financial interest in a variable interest entity. The pronouncements are effective for fiscal years beginning after November 15, 2009.

Management does not anticipate that the adoption of these standards will have a material impact on the financial statements.

~~F-17~~18 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE C - – RELATED PARTY TRANSACTIONS

Common Shares Issued to Executive and Non-Executive Officers and Directors

As of ~~June~~September 30, 2016, total 29,162,760 shares were issued to officers and directors. Please see the table below for details:

Name	Total Shares		Total Amount		Percentage
Fenglan Li		165,000		15,750		0.42	%
Ying Zhong		2,000,000		200,000		5.09	%
Jianfeng Ding & Yaru Huang
		26,997,760		325,998		68.72	%
Total		29,162,760	$	541,748		74.23	%

· Based on total outstanding issued shares as of ~~June~~September 30, 2016: 39,290,827.

Cost of Goods Sold

The Company'’s purchase is primarily from supplier, Chuzhou Fuda Mechanical & Electronics Co., Ltd ("“ChuZhouFuDa"”), which is related and managed by director Jianfeng Ding.

ChuZhouFuda is an appliance components and sub-assemblies manufacturer established on March 18, 2008. Chuzhou Fuda is located in Chuzhou City, Anhui Province, China. The plant space is around 600,000 sqt with 62 molding machine up to 800 metric ton and 20 assemblies lines for appliance components and assemblies. Chuzhou Fuda, as a Chinese local manufacturer, will record their manufacturing costs and inventories based on the Chinese accounting regulations rulings. But, when Flurida Group, Inc. purchases the parts from Chuzhou Fuda, Flurida Group will record the actual costs paid to Chuzhou Fuda as the costs for inventory of Flurida Group, Inc. There is no any relationship for Chuzhou Fuda'’s manufacturing historic costs with Flurida Group'’s inventory value. Specifically, Flurida'’s inventory value is equal to the purchase price or actual cost of the parts purchased from Chuzhou Fuda, and the purchase price of the parts will be fair market price. Flurida Group, Inc. will adopt the first-in and first-out inventory system according to generally accepted accounting principles in USA.

~~F-18~~19 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE C - – RELATED PARTY TRANSACTIONS (Continued)

At the period ended ~~March~~June 3130, 2016, the Company had ending inventory $ ~~374~~428,~~866~~503 that was majority purchased from ChuZhou FuDa.

The Company purchased Icemakers, motors, high efficiency motor, wire harness, dac boxes, deflectors, icemaker dispenser, ice and water dispenser, and other related appliance parts from ChuZhou FuDa, at total cost of $ 7,~~223~~051,~~083~~107 for the fiscal quarter ended ~~June~~September 30, 2016.

To manufacture the related refrigerator appliance parts, Chu Zhou Fu Da needs key parts made in USA, which were purchased through Flurida Group, Inc. in USA. The costs of purchasing the parts were $ ~~401~~342,~~642~~474 in the period of ~~April~~July 1 to ~~June~~September 30, 2016.

The Company purchase module assembly and vegetable dryer from Fulu industries (HK), Ltd at a cost of $ ~~940~~1,~~257~~232,818 for the fiscal quarter ended ~~June~~September 30, 2016.

For the fiscal quarter ended ~~June~~September 30, 2016, the Company had total purchase of $ 8,~~564~~626,~~983~~399.

At the quarter ended ~~June~~September 30, 2016, the company had total ending inventory at a value $ ~~428~~239,~~502~~854.

For the period of ~~April~~July 1 to ~~June~~September 30, 2016, the company had freight and warehouse cost of $ 2316,~~228~~600, purchase related expense of 4,690, and $ 100 purchase return and discount.

Therefore, in the fiscal quarter ended ~~June~~September 30, 2016, the Company incurred a total cost of goods sold of $ 8,~~534~~836,~~574~~237.

~~F-19~~20 Table of Contents

FLURIDA GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE D - – SHAREHOLDERS'’ EQUITY

During the year ended December 31, 2008, Flurida Group, Inc has issued total 11,699,067 new shares on April 15, 2008, including 11,649,067 shares issued to loan holders who converted all the loans to common shares. At the year ended December 31, 2008, Flurida Group, Inc. incurred net loss of $ (194,079).

Therefore, the total stockholders'’ equity balance at December 31, 2008 was $ 1,075,377.

On April 15, 2008, 50,000 shares issued to Williams Law Group at $ 0.10, for the legal service value of $5,000. On April 1, 2008, seven non-affiliated loan holders asked for repayment of their loans in the aggregate amount of $ 25,066 plus the total interest cost of $624.72, which was paid on the same date, April 1, 2008; meantime, seven additional lenders loaned an aggregate amount of $ 9,926.

On April 15, 2008, total loan amount of $1,164,906 was converted to common shares at price of $0.10 per share, for the total shares of 11,649,067 shares, which were issued to the loans holders.

There were no new shares issued during the period ending December 31, 2009, 2010, and 2011.

On November 1, 2012, 300,000 shares were issued to Williams Law Group at $ 0.10, for the legal service value of $30,000.

There were no new shares issued during the year of 2013, 2014, and 2015.

There were no new shares issued during the period of January to ~~June~~September 2016.

Therefore, as of ~~June~~September 30, 2016 total shares issued and outstanding are 39,290,827.

~~NOTE~~21 ETable –of ~~GOING CONCERN~~Contents

~~The~~FLURIDA Company's significant customers are Electrolux and its subsidiaries located in various countries. Because of the concentration of the customers and Company's heavily reliance on the Electrolux and its subsidiariesGROUP, ~~the Company's customer concentration may raise doubt about its ability to continue as a going concern~~INC. ~~The~~AND financial statements do not include adjustments that might result from the outcome of this uncertainty and if the Company is unable to generate significant revenue or secure financing, then the Company may be required to cease or curtail its operations. SUBSIDIARIES

~~However,~~NOTES inTO ~~the~~CONSOLIDATED ~~quarter~~FINANCIAL ended June 30, 2016, the Company generated significant sales revenue of $ 9,705,705. Electrolux and its subsidiaries are operated independently in various countries, the management assess that it is unlikely if Electrolux and its subsidiary discontinue the purchase in near future due to the Company secured a purchase order in next three years with Electrolux and its subsidiaries. In addition, the going concern may be mitigated due to the close relationship between the Company and it's suppliers. The Company's purchase is primarily from supplier, Chuzhou Fuda Mechanical & Electronics Co., Ltd ("ChuZhouFuDa"), which is closely related and directly managed by shareholder and director Jianfeng Ding. Besides, as of June 30, 2016, the cash and cash equivalent balance was $ 8,804,478, the management believes that the revenues will be generated and its cash flows will be maintained to cover its operational costs and the risk of going concern is significantly low.STATEMENTS

FNOTE E -20 ~~Table~~GOING ~~of Contents~~CONCERN

The Company’s significant customers are Electrolux and its subsidiaries located in various countries. Because of the concentration of the customers and Company’s heavily reliance on the Electrolux and its subsidiaries, the Company’s customer concentration may raise doubt about its ability to continue as a going concern. The financial statements do not include adjustments that might result from the outcome of this uncertainty and if the Company is unable to generate significant revenue or secure financing, then the Company may be required to cease or curtail its operations.

However, in the quarter ended September 30, 2016, the Company generated significant sales revenue of $ 10,055,716. Electrolux and its subsidiaries are operated independently in various countries, the management assess that it is unlikely if Electrolux and its subsidiary discontinue the purchase in near future due to the Company secured a purchase order in next three years with Electrolux and its subsidiaries. In addition, the going concern may be mitigated due to the close relationship between the Company and it’s suppliers. The Company’s purchase is primarily from supplier, Chuzhou Fuda Mechanical & Electronics Co., Ltd (“ChuZhouFuDa”), which is closely related and directly managed by shareholder and director Jianfeng Ding. Besides, as of September 30, 2016, the cash and cash equivalent balance was $ 6,363,385, the management believes that the revenues will be generated and its cash flows will be maintained to cover its operational costs and the risk of going concern is significantly low.

Exhibit A

	Three MonthsEnded		Three MonthsEnded
	June 30,2016		June 30,2015
	September 30,2016		September 30,2015
Total Expense
Administration Expense		-2,708		~~1,712~~790
Automobile Expense		29,~~697~~063		~~918~~5,715
Bank Service Charges		6860,~~472~~032		9572,~~736~~509
Certification		1312,~~011~~361		542,~~909~~685
Computer and Internet Expenses		-166		4152
Depreciation expense		26,~~550~~791		8,~~120~~343
Business Registration and Permits		~~532~~-		-130
Fuel charge		2,312		2,922
Gift and promotion		3,661		5,140
Gift and promotion		1,721		6,058
Industry Show		1,000		-
Industry Show		4,611		-
Insurance Expense		-		-
Meals and Entertainment		1025,~~721~~502		1716,~~576~~223
Office Supplies		45,~~143~~166		~~441~~520
Parking fee		941		98
Payroll Expense		197,743		183,781
Payroll Expense		241,390		185,777
Penalty and Fine Expenses		-		50
Penalty and Fine Expenses		523		467
Postage& Shipping		7,131		(2,371	)
Postage and Shipping		1,175		3,796
Professional Fees		30,610		44,016
Professional Fees		98,645		76,623
Rent Expense		24,976		17,735
Rent Expense		14,020		15,770
Repair & Maintenance		3,380		2,698
Repair and Maintenance		12,430		1,000
Research & Development Expense		17,849		61,687
Research and Development Expense		16,963		81,251
Service Cost		12,966		4,718
Service Cost		914		-
Telephone Expense		6,129		12,975
Telephone Expense		4,507		4,770
Travel Expense		90,004		76,964
Travel Expense		44,222		136,813
Utilities		765		607
Utilities		874		516
Total Expense		518,002		554,965
Total Expense		547,374		646,315

~~F-21~~ 22Table ~~Table~~ of Contents

Item 2. Management's Discussion and Analysis or Plan of Operation.

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes, and other financial information included in this Form 10-Q.

Our Management's Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national, and local general economic and market conditions; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; change in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; the risk of foreign currency exchange rate; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission.

Although the forward-looking statements in this Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of the risks and factors that may affect our business, financial condition, and results of operations and prospects.

Overview

The Company's main business includes sourcing, distribution and marketing of appliance components and assemblies in Asia, Europe, ~~Australia,~~ North and South America. Those products include icemakers; motors; ice and water dispensing systems; high efficiency motors; crushed motors; commercial vegetable dryer; control modules and established ourselves as a viable supplier of complex cables and harness for the appliance industry. We launched our own brand of finished products called the ice water dispenser system. The product launch sites took place in two locations: Los Angeles CA and El Paso ~~TX.~~We ~~Our~~have ~~goal~~completed ~~for 2016 is to complete~~ the design ~~and~~for ~~launch~~the ~~a new~~ condenser motor; a twist flex icemaker; oven circulation fan and wire harnesses for ovens. We have received technical approval for condenser motors from the potential customer and we are still working on life testing. Hopefully, we will receive a trial order in six months. We also received a small order for oven harnesses from our customer. The twist tray icemaker and the oven fan are being tested by our customers. Our focus is to provide our customers with innovative products and solutions thus securing our position as a valued supplier.

These products are manufactured in China by Chuzhou Fuda Mechanical & Electronics Co., Ltd ("ChuZhou Fuda"). Chuzhou Fuda Mechanical & Electronics Co., Ltd., which is related and managed by shareholder and director Jianfeng Ding, is an appliance components and sub-assemblies manufacturer.

3 Table of Contents

We sell the following main types of appliance parts and finished products:

· High-efficiency motor: Currently our largest selling product, the high-efficiency motor runs at 1/3 the wattage of a shaded pole motor thus making a more energy efficient product assisting our customers in meeting the US energy consumption standards for appliances. · Automatic Refrigerator Build-in Icemaker and Electronic Icemaker : The automatic refrigerator build-in icemaker and Electronic Icemaker is designed for household refrigeration products, such as refrigerator, under-counter refrigerator, freezer to make the ice cubes automatically. · Refrigerator Through-Door Ice Water System: Refrigeration Through-Door Ice Water System is the system that stores the ice cubes harvested from the icemaker, delivered and dispensed the ice, crushed ice or water to the refrigerator door through the electronic control system at the front of the refrigerator door. The through-door ice water system normally includes the following assemblies: ice bucket assembly, motor rail assembly, module assembly, facade assembly, housing assembly. The ice bucket assembly and the motor rail assembly can be located in the freezer, in the refrigerator door and or sealed chamber in the refrigerator. The module assembly, facade assembly and housing assembly vary according to the specific design from each client. · Wire harness: includes wires, connectors and terminals which electrically connects our products to the customers' products. · Motor and Motor Assembly for Refrigerator or Freezers: The shade pole motor and motor assembly is a key part for refrigerators or freezers. Flurida Group Inc's motor part is designed and specified for the refrigerators or freezers made by Electrolux, an US company with headquarters in Charlotte, NC. Flurida also supplies the motors and motor assemblies to Electrolux Europe facilities in Italy and Hungary. · High-efficiency motor: The high-efficiency motor runs at 1/3 the wattage of a shaded pole motor thus making a more energy efficient product assisting our customers in meeting the US energy consumption standards for appliances. · Ice Crush motor: Ice crush motor is the gear box motor to drive the auger and push the ice in the bucket to blades for ice crush purpose. The product is used for automatic ice crushing on built-in Ice Water Dispensing systems.

·23 ~~Module:~~Table ~~Module is a dispensing module for refrigerator. It is a complete automatic ice making and dispensing system that can dispense cubed ice, crushed ice and water. Module is located in the door~~ of ~~a refrigerator; when press the water or ice paddles, the seal will open to dispensing water or ice cubes.~~Contents

· Wire harness: includes wires, connectors and terminals which electrically connects our products to the customers' products. · Motor and Motor Assembly for Refrigerator or Freezers: The shade pole motor and motor assembly is a key part for refrigerators or freezers. Flurida Group Inc's motor part is designed and specified for the refrigerators or freezers made by Electrolux, an US company with headquarters in Charlotte, NC. Flurida also supplies the motors and motor assemblies to Electrolux Europe facilities in Italy and Hungary. · Ice Crush motor: Ice crush motor is the gear box motor to drive the auger and push the ice in the bucket to blades for ice crush purpose. The product is used for automatic ice crushing on built-in Ice Water Dispensing systems. · Module: Module is a dispensing module for refrigerator. It is a complete automatic ice making and dispensing system that can dispense cubed ice, crushed ice and water. Module is located in the door of a refrigerator; when press the water or ice paddles, the seal will open to dispensing water or ice cubes. · Damper: A damper controls the rate of airflow from freezer into the refrigerator section. These dampers are being sold to users in China to build refrigerators. · Commercial Vegetable dryer: Targeting the restaurant and hospitality industries, started mass production. · Ice and Water Dispensers: Flurida Group awarded to its new, wholly-owned subsidiary Flurida Appliance, Inc. the right to sell Flurida Group designed appliances called Ice and Water Dispensers manufactured in China by Chuzhou Fuda Mechanical & Electronics Co., Ltd. Flurida Appliances has the right to sell these products throughout the whole world except China. Flurida Appliance started to sell at U.S market, then at some undetermined date in the future possibly in Canada, South American, then Europe.

For the reasons set forth below, we had a net income of $ 655,993 and $ 1,362,086 for six months ended ~~June~~September 30, 2016 and 2015 respectively.

We are an "emerging growth company" ("EGC") that is exempt from certain financial disclosure and governance requirements for up to five years as defined in the Jumpstart Our Business Startups Act ("the JOBS Act"), that eases restrictions on the sale of securities; and increases the number of shareholders a company must have before becoming subject to the U.S. Securities and Exchange Commission's (SEC's) reporting and disclosure rules (See "Emerging Growth Companies" section above). We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the Jobs Act, that allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

4 Table of Contents

Results of Operations

For the fiscal quarter ended ~~June~~September 30, 2016 vs. ~~June~~September 30, 2015.

Revenue

For the fiscal quarter ended ~~June~~September 30, 2016, the Company had net total revenue of $ 910,~~705~~055,~~705~~716 to the Company's Europe, ~~Australia,~~ North and South America customers, and Asia, which was decreased 49% more than the fiscal quarter ended ~~June~~September 30, 2015 total net revenue of $ 1917,~~165~~741,~~331~~604. This decrease was because most of customers' sales went down worldwide.

~~For~~24 ~~the~~Table period April 1 to June 30, 2016, the Company sold icemakers, high efficiency motor, module assembly, wire harness, motors, thermostats, ice and water dispenser, vegetable dryer, and other related refrigerator appliance to North America, which included Electrolux North America, General Electric Company, Exact Replacement Parts, HKF Industries Inc, and others America corporation, for total sales of $ 8,924,672. The icemakers, assembly, motors, wire harness, vegetable dryer, ice and water dispenser, and related parts were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd; all the icemakers, motors, assembly, wire harness, vegetable dryer, ice and water dispenser, and related parts were shipped out at FOB shipping point Nanjing, China. Contents

For the ~~fiscal~~period ~~quarter~~July ~~ended~~1 ~~June~~to September 30, 2016, the Company sold ~~components~~icemakers, ~~and~~high ~~appliance~~efficiency ~~parts~~motor, tomodule ~~Electrolux~~assembly, ~~–Australia~~wire ~~for~~harness, $motors, 8thermostats,~~504.~~ ~~The~~ice ~~components~~and ~~were~~water ~~manufactured~~dispenser, vegetable dryer, and ~~supplied~~other byrelated ~~Chu~~refrigerator ~~Zhou~~appliance Futo DaNorth ~~Mechanical~~America, ~~and~~which ~~Electronics;~~included ~~all~~Electrolux ~~the~~North ~~icemakers~~America, ~~and~~General ~~components~~Electric ~~were~~Company, ~~shipped~~Exact ~~out~~Replacement atParts, ~~FOB~~HKF ~~shipping~~Industries ~~point~~Inc, ~~Nanjing~~and others America corporation, ~~China~~for total sales of $ 9,388,371.

The ~~Company~~icemakers, ~~sold~~assembly, ~~Motors~~motors, ~~and~~wire ~~other~~harness, ~~parts~~vegetable todryer, ~~Electrolux~~ice –and Dowater ~~Brasil for $ 185~~dispenser,~~835.~~ ~~The~~and ~~motors~~related parts were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd; all the icemakers, motors, assembly, wire harness, vegetable dryer, ice and water dispenser, and related parts were shipped out at FOB shipping point Nanjing, China.

~~For~~The ~~the period April 1 to June 30, 2016, the~~ Company sold ~~motors,~~Motors ~~DAC Boxes, Deflector,~~ and ~~related~~other ~~refrigerator~~parts ~~appliance~~ to ~~Europe, which included~~ Electrolux ~~Hungry,~~– ~~Electrolux~~Do ~~Sweden,~~Brasil ~~and Gotene Plast AB,~~ for ~~total sales of~~ $~~118~~ 125,~~270~~946. The ~~DAC~~motors ~~Boxes, Deflector, Motors, and other related parts~~ were manufactured and supplied by ~~Chu~~ChuZhou ~~Zhou~~FuDa ~~Fuda;~~Mechanical ~~all~~and ~~the~~Electronics ~~DAC~~Co., ~~Boxes magnets~~Ltd, and ~~motors~~ were shipped out at FOB shipping point Nanjing, China.

~~The~~For ~~Company~~the ~~also~~period July 1 to September 30, 2016, the Company sold ~~icemakers~~motors, DAC Boxes, Deflector, and related ~~parts~~refrigerator appliance to ~~Asia~~Europe, which included Electrolux Hungry, and Gotene Plast AB, for $total 4sales of $89,~~991~~914. The ~~icemakers~~DAC Boxes, Deflector, Motors, and other related parts were manufactured and supplied by Chu Zhou Fuda; all the ~~icemakers~~DAC Boxes magnets, and motors were shipped out at FOB shipping point Nanjing, China.

~~For~~The ~~the period of April 1 to June 30, 2016, the~~ Company also sold ~~thermostats~~icemakers and ~~other~~ related ~~key~~ parts ~~for icemakers and motors, and sold dampers~~ to ~~ChuZhouFuDa.~~Asia ~~Flurida~~for ~~Group~~$ ~~purchased some of the parts from Wako Electronics~~103, ~~Inc~~301., anThe USicemakers ~~Company~~and ~~located~~parts atwere ~~Louisville,~~manufactured ~~KY 40299. Flurida Group also purchased dampers from ITW Motion, an US company located in Illinois,~~ and ~~then~~supplied ~~sold~~by toChu ~~ChuZhouFuDa.~~Zhou ~~Flurida~~Fuda; ~~Group,~~all ~~Inc. addsaveraged 5% - 10% margin based on~~ the ~~cost~~icemakers ~~of purchase, then sold to them, so, $ 463,433~~ were ~~sold~~shipped ~~and~~out ~~invoiced~~at toFOB ~~ChuZhouFuDa~~shipping ~~for~~point ~~the fiscal quarter ended June 30~~Nanjing, ~~2016~~China.

InFor ~~summary, for~~ the period of ~~April~~July 1 to ~~June~~September 30, 2016, the Company ~~incurred~~sold ~~the~~thermostats ~~total~~and ~~gross~~other ~~sales~~related ofkey $parts 9for icemakers and motors,~~075,705~~ and sold dampers to ChuZhouFuDa. ~~And~~Flurida Group purchased some of the ~~Company~~parts ~~had~~from ~~sales~~Wako ~~return~~Electronics, ~~and~~Inc., ~~allowance~~an ~~and~~US ~~sales~~Company ~~discount~~located ofat $Louisville, 0KY 40299.00 Flurida Group also purchased dampers from ITW Motion, soan US company located in Illinois, aand ~~total~~then sold to ChuZhouFuDa. Flurida Group, Inc. addsaveraged 5% - 10% margin based on the cost of $purchase, 9then sold to them,~~075~~ so,~~705~~ ~~net~~$ ~~sales~~385,687 were ~~recorded~~sold and invoiced to ChuZhouFuDa for the fiscal quarter ended September 30, 2016.

WeIn ~~are~~summary, asfor the period of ~~yet~~July ~~unable~~1 to ~~predict~~September 30, 2016, the ~~effect~~Company incurred the total gross sales of $ 10,093,219. And the ~~current~~Company ~~economic~~had ~~situation~~sales inreturn ~~China~~and ~~will~~allowance ~~have~~and ~~upon~~sales ~~our~~discount ~~business~~of $ 37,503, so, a total of $ 10,055,716 net sales were recorded.

5 Table of Contents

Cost of Revenue

Our Costs of Goods Sold, as we expected increased slightly due to increasing labor and raw materials costs. We anticipate this trend to continue and may adjust our unit price upward to reduce the impact of rising costs.

At the period ended ~~March~~June 3130, 2016, the Company had ending inventory $ ~~374~~428,~~866~~503 that was majority purchased from ChuZhou FuDa.

~~The~~25 ~~Company~~Table ~~purchase module assembly and vegetable dryer from Fulu industries (HK), Ltd at a cost~~ of ~~$ 940,257 for the fiscal quarter ended June 30, 2016.~~ Contents

~~For~~The ~~the~~Company ~~fiscal~~purchase ~~quarter~~module ~~ended~~assembly ~~June~~and ~~30,~~vegetable ~~2016,~~dryer ~~the~~from ~~Company~~Fulu ~~had~~industries ~~total~~(HK), ~~purchase~~Ltd at a cost of $ 81,~~564~~232,~~983~~818 for the fiscal quarter ended September 30, 2016.

AtFor the fiscal quarter ended ~~June~~September 30, 2016, the ~~company~~Company had total ~~ending~~purchase ~~inventory~~of ~~at a value~~ $ ~~428~~8,~~502~~626,399.

~~For~~At the ~~period~~quarter ofended ~~April~~September ~~1 to June~~ 30, 2016, the company had ~~freight~~total ~~and~~ending ~~warehouse~~inventory ~~cost~~at ofa value $ 23239,~~228~~854.

~~Therefore,~~For in the ~~fiscal~~period ~~quarter~~of ~~ended~~July ~~June~~1 to September 30, 2016, the ~~Company~~company ~~incurred~~had afreight ~~total~~and warehouse cost of ~~goods sold of~~ $ 816,~~534~~600,~~574~~ ~~was~~purchase ~~decreased~~related ~~50%~~expense ~~compared to the fiscal quarter ended June 30, 2015 cost~~ of ~~goods sold of $ 17~~4,~~625~~690,~~388.~~ ~~The~~and ~~decrease~~$ of100 ~~cost~~purchase ofreturn ~~goods~~and ~~sold was due to the sales decrease~~discount.

Therefore, in the fiscal quarter ended September 30, 2016, the Company incurred a total cost of goods sold of $ 8,836,237 was decreased 45% compared to the fiscal quarter ended September 30, 2015 cost of goods sold of $ 15,941,706. The decrease of cost of goods sold was due to the sales decrease. In addition, R&D expenses decreased as most of the work at the R&D Center was supporting the development of the already designed new projects. Travel increased as we had to travel to China and elsewhere to meet manufacturers and potential customers for our new products.

The cost of goods sold in the Statements of Operations includes costs of products purchased from suppliers, shipping costs or freight in costs for the products shipping FOB port China, warehouse costs, and other costs if any directly related to the products inspection, duty and custom taxes of products, internal transfer costs if any. The selling, general and administrative expense includes operation expense such as travel, professional, office rent, telephone, certification fees, wages and salaries for management and administrative employees, and other expense related to operation. There was no allocation of portion of any selling, general and administrative expense to the cost of goods sold.

Our gross margin may not be comparable to those of other entities, since some other entities may include all or allocate portion of the costs related to their distribution network into cost of goods sold.

6 Table of Contents

Expense

Our operation expenses consist of selling, general and administrative expenses, and research & development expenses, and depreciation expenses:

		Three MonthsEnded			Three MonthsEnded
			Three Months Ended			Three Months Ended
		June 30,2016			June 30,2015
			September 30, 2016			September 30, 2015
Total Expense
~~Administration Expense~~	Administration Expense		-	2,708		~~1,712~~	790
~~Automobile Expense~~	Automobile Expense		~~2,697~~	9,063		~~918~~	5,715
~~Bank Service Charges~~	Bank Service Charges		~~68,472~~	60,032		~~95,736~~	72,509
~~Certification~~	Certification		~~13,011~~	12,361		~~5,909~~	42,685
~~Computer and Internet Expenses~~	Computer and Internet Expenses		-	166		41	52
~~Depreciation expense~~	Depreciation expense		~~2,550~~	6,791		~~8,120~~	8,343
~~Business Registration and Permits~~	Business Registration and Permits		~~532~~	-		-	130
Fuel charge			2,312			2,922
	Gift and promotion			3,661			5,140
Gift and promotion			1,721			6,058
	Industry Show			1,000			-
Industry Show			4,611			-
	Insurance Expense			-			-
Insurance Expense			-			-
	Meals and Entertainment			25,502			16,223
Meals and Entertainment			10,721			17,576
	Office Supplies			5,166			520
Office Supplies			4,143			441
	Payroll Expense			197,743			183,781
Parking fee			941			98
	Penalty and Fine Expenses			-			50
Payroll Expense			241,390			185,777
	Postage & Shipping			7,131			(2,371	)
Penalty and Fine Expenses			523			467
	Professional Fees			30,610			44,016
Postage & Shipping			1,175			3,796
	Rent Expense			24,976			17,735
Professional Fees			98,645			76,623
	Repair & Maintenance			3,380			2,698
Rent Expense			14,020			15,770
	Research & Development Expense			17,849			61,687
Repair & Maintenance			12,430			1,000
	Service Cost			12,966			4,718
Research & Development Expense			16,963			81,251
	Telephone Expense			6,129			12,975
Service Cost			914			-
	Travel Expense			90,004			76,964
Telephone Expense			4,507			4,770
	Utilities			765			607
Travel Expense			44,222			136,813
Total Expense				518,002			554,965
Utilities			874			516
Total Expense			547,374			646,315

7 26Table ~~Table~~ of Contents

Income Taxes

We are subject to income taxes in the U.S. and we incurred income tax expense of $ ~~275~~242,~~577~~270 and $ ~~280~~300,~~150~~205 for the fiscal quarter ended ~~June~~September 30, 2016 and 2015 respectively. As of ~~June~~September 30, 2016, the Company had income taxes payable of $ ~~455~~496,~~997~~667.

Net Income (Loss)

For the reasons set forth above, we had a net income of $ ~~352~~467,~~450~~828 and $ ~~613~~682,~~478~~675 for fiscal quarter ended ~~June~~September 30, 2016 and 2015 respectively.

For the ~~six~~nine months ended ~~June~~September 30, 2016 vs. ~~June~~September 30, 2015.

Revenue

For the ~~six~~nine months ended ~~June~~September 30, 2016, the Company had net total revenue of $ 1929,~~111~~167,~~435~~152 to the Company's Europe, ~~Australia,~~ North and South America customers, and Asia, which was decreased 4846% more than the ~~six~~nine months ended ~~June~~September 30, 2015 total net revenue of $ 3654,~~566~~042,~~635~~584. This decrease was because most of customers' sales went down worldwide.

For the period January 1 to ~~June~~September 30, 2016, the Company sold icemakers, high efficiency motor, module assembly, wire harness, motors, thermostats, ice and water dispenser, vegetable dryer, and other related refrigerator appliance to North America, which included Electrolux North America, Haier America Research & Development Co, Exact Replacement Parts, and others America corporation, for total sales of $ 1726,~~408~~796,~~273~~645. The icemakers, assembly, motors, wire harness, vegetable dryer, ice and water dispenser, and related parts were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd; all the icemakers, motors, assembly, wire harness, vegetable dryer, ice and water dispenser, and related parts were shipped out at FOB shipping port Nanjing, China.

For the ~~six~~nine months ended ~~June~~September 30, 2016, the Company sold components and appliance parts to Electrolux –Australia for $ 206,784. The components were manufactured and supplied by Chu Zhou Fu Da Mechanical and Electronics; all the icemakers and components were shipped out at FOB shipping port Nanjing, China.

The Company sold Motors and other parts to Electrolux – Do Brasil for $ ~~314~~440,~~751~~697. The motors were manufactured and supplied by ChuZhou FuDa Mechanical and Electronics Co., Ltd, and were shipped out at FOB shipping port Nanjing, China.

For the period January 1 to ~~June~~September 30, 2016, the Company sold motors,DAC Boxes, Deflector, and related refrigerator appliance to Europe, which included Electrolux Hungry, Electrolux Sweden, and Gotene Plast AB, for total sales of $ ~~238~~328,~~740~~654. The DAC Boxes, Deflector, Motors, and other related parts were manufactured and supplied by Chu Zhou Fuda; all the DAC Boxes magnets, and motors were shipped out at FOB shipping port Nanjing, China.

The Company also sold icemakers and related parts to Asia for $ 55159,~~765~~067. The icemakers and parts were manufactured and supplied by Chu Zhou Fuda; all the icemakers were shipped out at FOB shipping point Nanjing, China.

~~For~~27 ~~the~~Table ~~period~~ of January 1 to June 30, 2016, the Company sold thermostats and other related key parts for icemakers and motors, and sold dampers to ChuZhouFuDa. Flurida Group purchased some of the parts from Wako Electronics, Inc., an US Company located at Louisville, KY 40299. Flurida Group also purchased dampers from ITW Motion, an US company located in Illinois, and then sold to ChuZhouFuDa. Flurida Group, Inc. adds averaged 5% - 10% margin based on the cost of purchase, then sold to them, so, $ 901,504 were sold and invoiced to ChuZhouFuDa for the six months ended June 30, 2016.Contents

8For ~~Table~~the period of ~~Contents~~January 1 to September 30, 2016, the Company sold thermostats and other related key parts for icemakers and motors, and sold dampers to ChuZhouFuDa. Flurida Group purchased some of the parts from Wako Electronics, Inc., an US Company located at Louisville, KY 40299. Flurida Group also purchased dampers from ITW Motion, an US company located in Illinois, and then sold to ChuZhouFuDa. Flurida Group, Inc. adds averaged 5% - 10% margin based on the cost of purchase, then sold to them, so, $ 1,287,190 were sold and invoiced to ChuZhouFuDa for the nine months ended September 30, 2016.

In summary, for the period of January 1 to ~~June~~September 30, 2016, the Company incurred the total gross sales of $ 1929,~~125~~219,~~817~~037. And the Company had sales return and allowance and sales discount of $ 1451,~~382~~885, so, a total of $ 1929,~~111~~167,~~435~~152 net sales were recorded.

We are as of yet unable to predict the effect of the current economic situation in China will have upon our business.

Cost of Revenue

At the period ended December 31, 2015, the Company had ending inventory $ 222,195 that was majority purchased from ChuZhou FuDa.

The Company purchased Icemakers, motors, high efficiency motor, wire harness, dac boxes, deflectors, icemaker dispenser, ice and water dispenser, and other related appliance parts from ChuZhou FuDa, at total cost of $ 1421,~~375~~426,~~231~~338 for the ~~six~~nine months ended ~~June~~September 30, 2016.

To manufacture the related refrigerator appliance parts, Chu Zhou Fu Da needs key parts made in USA, which were purchased through Flurida Group, Inc. in USA. The costs of purchasing the parts were $ ~~815~~1,~~747~~158,221 in the period of January 1 to ~~June~~September 30, 2016.

The Company purchase module assembly and vegetable dryer from Fulu industries (HK), Ltd at a cost of $ 13,~~898~~131,~~993~~811 for the ~~six~~nine months ended ~~June~~September 30, 2016.

For the ~~six~~nine months ended ~~June~~September 30, 2016, the Company had total purchase of $ 1725,~~089~~716,~~971~~370.

At the quarter ended ~~June~~September 30, 2016, the company had total ending inventory at a value $ ~~428~~239,~~502~~854.

For the period of January 1 to ~~June~~September 30, 2016, the company had freight and warehouse cost of $ 4461,~~687~~287, and purchase return and discount of $ 9,~~000~~100, and the related purchase expense of $ 4,690.

Therefore, in the ~~six~~nine months ended ~~June~~September 30, 2016, the Company incurred a total cost of goods sold of $ 1625,~~919~~755,~~352~~589 was decreased 5048% compared to the ~~six~~nine months ended ~~June~~September 30, 2015 cost of goods sold of $ 3349,~~553~~495,~~937~~643. The decrease of cost of goods sold was due to the sales decrease. In addition, R&D expenses decreased as most of the work at the R&D Center was supporting the development of the already designed new projects.

Table of Contents

9 Table of Contents

Expense

Our operation expenses consist of selling, general and administrative expenses, and research & development expenses, and depreciation expenses:

		Six MonthsEnded			Six MonthsEnded
			Nine Months Ended			Nine Months Ended
		June 30,2016			June 30,2015
			September 30, 2016			September 30, 2015
Total Expense
~~Administration Expense~~	Administration Expense		~~2,531~~	5,238		~~3,431~~	5,725
~~Automobile Expense~~	Automobile Expense		~~6,303~~	20,783		~~1,712~~	12,176
~~Bank Service Charges~~	Bank Service Charges		~~127,820~~	187,851		~~138,610~~	211,120
~~Certification~~	Certification		~~17,679~~	30,040		~~25,596~~	68,281
~~Computer and Internet Expenses~~	Computer and Internet Expenses		~~4,398~~	4,563		~~142~~	194
~~Depreciation expense~~	Depreciation expense		~~11,575~~	18,366		~~16,357~~	24,700
~~Business Registration and Permits~~	Business Registration and Permits		~~532~~	532		-	130
Fuel charge			4,501			4,493
	Gift and promotion			7,786			12,424
Gift and promotion			4,125			7,284
	Industry Show			30,568			5,144
Industry Show			29,568			5,144
	Insurance Expense			2,721			133
Insurance Expense			2,721			133
	Meals and Entertainment			63,194			48,180
Meals and Entertainment			37,692			31,957
	Office Supplies			20,811			4,010
Office Supplies			15,645			3,490
	Payroll Expense			699,344			575,949
Parking fee			1,181			256
	Penalty and Fine Expenses			523			517
Payroll Expense			501,601			392,168
	Postage & Shipping			10,542			16,350
Penalty and Fine Expenses			523			467
	Professional Fees			162,904			146,864
Postage & Shipping			3,412			18,721
	Rent Expense			61,536			50,144
Professional Fees			132,294			104,353
	Repair & Maintenance			21,822			4,915
Rent Expense			36,559			32,409
	Research & Development Expense			36,044			187,166
Repair & Maintenance			18,442			2,217
	Service Cost			14,545			5,344
Research & Development Expense			18,196			125,479
	Telephone Expense			19,071			21,122
Service Cost			1,314			626
	Travel Expense			205,507			294,874
Telephone Expense			12,942			8,147
	Utilities			2,331			2,018
Travel Expense			115,503			217,910
Total Expense				1,626,622			1,697,478
Utilities			1,566			1,411
Total Expense			1,108,620			1,142,514

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Income Taxes

We are subject to income taxes in the U.S. and we incurred income tax expense of $ ~~436~~679,~~999~~270 and $ ~~501~~801,~~615~~820 for the ~~six~~nine months ended ~~June~~September 30, 2016 and 2015 respectively. As of ~~June~~September 30, 2016, the Company had income taxes payable of $ ~~455~~496,~~997~~667.

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Net Income (Loss)

For the reasons set forth above, we had a net income of $ ~~655~~1,~~993~~123,821 and $ 12,~~362~~044,~~086~~761 for ~~six~~nine months ended ~~June~~September 30, 2016 and 2015 respectively.

Commitments and Contingencies

The Company's purchase is primarily from supplier, Chuzhou Fuda Mechanical & Electronics Co., Ltd ("ChuZhouFuDa"), which is related and managed by director Jianfeng Ding. Chuzhou Fuda is an appliance components and sub-assemblies manufacturer established on March 18, 2008. Chuzhou Fuda is located in Chuzhou City, Anhui Province, China. There was no written supply agreement signed between the Company and Chuzhou Fuda. However, Chuzhou Fuda committed to the Company for the quantity and quality of products the Company ordered.

On July, 2012, the Company signed a deposit inventory agreement with Electrolux Italia S.p.A., which was effective in January 2013.

On June 25, 2013, the Company signed a consignment inventory agreement with Electrolux Hungary S.p.A., which was effective in September 2013.

On July, 2013, Flurida Group, Inc. entered into a managed inventory program agreement with Electrolux Australia, which was effective in September 2013.

Foreign Currency Translation

The Company has determined the United States dollars to be its functional currency for Flurida Group USA and European Euro to be its functional currency in European business. Assets and liabilities were translated to U.S. dollars at the period-end exchange rate. Statement of operations amounts were translated to U.S. dollars using the average rate of each month during the year. Gains and losses resulting from translating foreign currency financial statements are accumulated in other comprehensive income (loss), a separate component of shareholders' equity.

11 Table of Contents

Liquidity and Capital Resources

	At June 30		At December 31
	At September 30		At December 31
	2016		2015
Current Ratio		1.3475		1.43
Cash	$	86,~~804~~363,~~478~~385	$	8,615,550
Working Capital	$	5,~~327~~981,~~846~~390	$	4,546,538
Total Assets	$	1312,~~061~~694,~~555~~842	$	15,296,078
Total Liabilities	$	76,~~632~~599,~~485~~733	$	10,677,204
Total Equity	$	56,~~429~~095,~~070~~109	$	4,618,874
Total Debt/Equity		1.4108		2.31

______________

*	Current Ratio = Current Assets / Current Liabilities
**	Working Capital = Current Assets - Current Liabilities
***	Total Debt / Equity = Total Liabilities / Total Shareholders' Equity.

~~The Company's overall working capital was increased in the quarter ended June~~ 30, ~~2016~~Table ~~comparing to year ended December 31, 2015, due to the overall increase~~ of ~~cash, the Company's current ratio was also increased due to the increase of cash as well.~~Contents

The Company's overall working capital was increased in the quarter ended September 30, 2016 comparing to year ended December 31, 2015, due to the decrease of current liability, the Company's current ratio was also increased due to the decrease of liability as well.

The Electrolux agreements require the Company to supply the motors, ice makers, and other parts based on Electrolux's needs. The payment terms for Electrolux North America customers, which constitute more than 50% of our revenues, were changed from a consignment basis to FOB China port in early 2015. Therefore, we don't have inventory related Electrolux North America customers. The other businesses with Electrolux in Europe still are on a consignment basis.

The Company entered into a promissory note secured renewal business loan agreement in the principal amount of $ 6,000,000 with East West Bank located in El Monte, CA. And the maturity date of the Note is from July 10, 2014 to July 31, 2015. On September 25, 2015, the loan was extended from September 30, 2015 to ~~December~~September 3130, 2016. On October 4, 2016, the loan was extended from September 30, 2016 to September 30, 2017. The principal amount of the Note is ~~increased~~decreased to $8 5,000,000. The maximum aggregate amount that may be outstanding under all sub-limits (items 1 through 4) shall be the lesser of $ 85,000,000 or 80% of eligible accounts receivable less than 90 days from invoice date and 50% of inventory. The loan is secured by all company inventories, account receivable, and other assets of the Company.

12 Table of Contents

The Company may only draw up to:

	(1)	$3,000,000 on Sight Letters of Credit with maximum expiration date of 90 days from issuance,

	(2)	$3,000,000 on Standby Letters of Credit with maximum expiration date of one year from issuance,

	(3)	$65,000,000 on Clean Advance for up to maturity date of the line, and
	(4)	$4,000,000 for FX [Foreign Exchange] pre settlement risk allowing the Company to purchase forward contracts to hedge against FX risk.

The remaining terms of the original loan are unchanged.

The management will continue to focus on improving our current business on marketing, customer services and general administrative activities effectiveness. The Company will continue efforts at a R&D center at our California location and R&D expenses could increase in future years as we again start developing more new products. The primary function of the Company's Research and Development Center is to identify and research new knowledge about scientific and technological topics in order to develop valuable products, processes and services for our customers. The Company has continually developed the new products at our Center, including a new condenser motor; a twist flex icemaker; oven circulation fan and wire harnesses for ovens. We are currently working on the development of these new products at our Center, although we cannot predict when, if ever, we will launch these products.

Specifically, the management still believes that within the operating activities, the efforts of collecting accounts receivables and making payments of accounts payables still were the primary factors for the changes of cash flows in 2016 and will continue in later years.

The Company had cash and cash equivalents of $ 86,~~804~~363,~~478~~385 at ~~June~~September 30, 2016 and $ 5,~~327~~981,~~846~~390 working capital and $ 8,615,550 at December 31, 2015 and $ 4,546,538 of working capital.

The total debt of $ 76,~~632~~599,~~485~~733 for ~~June~~September 30, 2016 included total of $ 42,~~655~~578,~~803~~707 for Chu Zhou Fu Da, $ 1,~~666~~934,~~264~~896 for Fulu Finance Management Limited, $ ~~136~~133,~~695~~589 for US suppliers, $ 711,~~603~~203 for salary and payroll tax payable, and $ 2750,~~366~~747 for all other account payable, $ ~~455~~496,~~997~~667 income tax liabilities, and $ ~~618~~603,~~757~~924 unearned revenue, and $ 800,000 loan from Bank.

~~Our~~31 ~~independent~~Table auditor has indicated that our customer concentration may raise doubt about its ability to continue as a going concern. The financial statements do not include adjustments that might result from the outcome of this uncertainty and if the Company is unable to generate significant revenue or secure financing, then the Company may be required to cease or curtail its operations. However, due to the close relationship between the Company and its supplier, Chuzhou Fu Da, which is closely related and directly managed by shareholder and director Jianfeng Ding, Further, as of June 30, 2016, the cash and cash equivalent balance was $ 8,804,478 and account receivable was $ 3,727,351, such that the management believes that the revenues will be generated and its cash flows will be maintained to cover its operational costs and the risk of going concern in long term is significantly low.Contents

13Our ~~Table~~independent auditor has indicated that our customer concentration may raise doubt about its ability to continue as a going concern. The financial statements do not include adjustments that might result from the outcome of ~~Contents~~this uncertainty and if the Company is unable to generate significant revenue or secure financing, then the Company may be required to cease or curtail its operations. However, due to the close relationship between the Company and its supplier, Chuzhou Fu Da, which is closely related and directly managed by shareholder and director Jianfeng Ding, Further, as of September 30, 2016, the cash and cash equivalent balance was $ 6,363,385 and account receivable was $ 5,977,884, such that the management believes that the revenues will be generated and its cash flows will be maintained to cover its operational costs and the risk of going concern in long term is significantly low.

Interest Rate Risk

We do not have significant interest rate risk, as our debt obligations (i.e., notes payables to shareholders which can be converted to common stocks). The annual interest rate of notes payable is 8%, and the interest expense would be accrued if the notes were not converted to common shares, and the notes holders request the Company for repayment of principles plus the interest. Seven non-affiliated loan holders asked the Company for repayment of notes plus interest on July 1, 2008. All remaining loan holders converted their loans to common shares on July 15, 2008.

Item 3. Quantitative and Qualitative Disclosure about Market Risk

Not applicable.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

The Company has established disclosure controls and procedures to ensure that information required to be disclosed in this quarterly report on Form 10-Q was properly recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms. The Company's controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Act is accumulated and communicated to the Company's management, including its principal executive and principal financial officers to allow timely decisions regarding required disclosure.

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) at ~~June~~September 30, 2016 based on the evaluation of these controls and procedures required by paragraph (b) of Rule 13a-15 or Rule 15d-15 under the Exchange Act. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, at ~~June~~September 30, 2016, our disclosure controls and procedures are not effective.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company's internal control over financial reporting that occurred during the Company's last three-month period that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

(a) Unregistered Sales of Equity Securities.

(b) Use of Proceeds.

The Registrant did not sell or otherwise issue any unregistered securities during the three months ended ~~June~~September 30, 2016.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Not applicable.

1533 Table of Contents

Item 6. Exhibits.

(a) Exhibits.

Exhibit No.		Document Description

31.1		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.

31.2		CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.

32.1 *		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002.

32.2 *		CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002.

Exhibit 101		Interactive data files formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, and (iv) the Notes to the Consolidated Financial Statements.**

101.INS		XBRL Instance Document**

101.SCH		XBRL Taxonomy Extension Schema Document**

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document**

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document**

101.LAB		XBRL Taxonomy Extension Label Linkbase Document**

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document**

______________

* This exhibit shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 of the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

1634 Table of Contents

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Flurida Group, Inc., a Nevada corporation
August 15, 2016	By:	/s/ Jianfeng Ding
November 14, 2016	By:	/s/ Jianfeng Ding
		Jianfeng Ding
		Principal Executive Officer

In accordance with the Exchange Act, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

SIGNATURE	NAME	TITLE	DATE
/s/ Jianfeng Ding	Jianfeng Ding	Principal Executive Officer and Director	~~August~~November 1514, 2016
/s/ Yaru Hang	Yaru Huang	Principal Financial Officer and Principal	~~August~~November 1514, 2016
		Accounting Officer

1735 Table of Contents

EXHIBIT INDEX

Exhibit No.		Document Description

31.1		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.

31.2		CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.

32.1 *		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002.

32.2 *		CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002.

Exhibit 101		Interactive data files formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, and (iv) the Notes to the Consolidated Financial Statements.**

101.INS		XBRL Instance Document**

101.SCH		XBRL Taxonomy Extension Schema Document**

101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document**

101.DEF		XBRL Taxonomy Extension Definition Linkbase Document**

101.LAB		XBRL Taxonomy Extension Label Linkbase Document**

101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document**

______________

1836

Filing Compare · FLURIDA GROUP INC