false FY 0001626745

 2023-06-30

 2024-04-15

 us-gaap: NonrelatedPartyMember

 us-gaap: NonrelatedPartyMember

 FVTI:ShareExchangeAgreementMember
 FVTI:DaXingHuaShangInvestmentGroupLimitedMember

 2018-04-10
 2018-04-11

 FVTI:JiujiuGroupStockCoLtdMember
 FVTI:SaleAndPurchaseAgreementMember

 2019-03-01

 FVTI:SaleAndPurchaseAgreementMember
 FVTI:JiujiuGroupStockCoLtdMember

 2019-02-28
 2019-03-01

 FVTI:XixingdaoAgreementMember
 FVTI:QHDXMember

 2020-06-22

 FVTI:XixingdaoAgreementMember
 FVTI:QHDXMember

 2020-06-20
 2020-06-22

 FVTI:DaXingHuaShangInvestmentGroupLimitedMember

 2021-01-06

 FVTI:DIGLSMember

 FVTI:DIGLSMember

 FVTI:DILHKMember

 FVTI:DILHKMember

 FVTI:QHDXMember

 FVTI:QHDXMember

 FVTI:FVTLMember

 FVTI:FVTLMember

 FVTI:JJGSMember

 FVTI:JJGSMember

 FVTI:JJHKMember

 FVTI:JJHKMember

 FVTI:JJSZMember

 FVTI:JJSZMember

 FVTI:XixingdaoMember

 FVTI:XixingdaoMember

 FVTI:FLTTMember

 FVTI:FLTTMember

 FVTI:FXGTMember

 FVTI:FXGTMember

 FVTI:FXTLMember

 FVTI:FXTLMember

 FVTI:FGHLMember

 FVTI:FGHLMember

 FVTI:FJTLMember

 FVTI:FJTLMember

 FVTI:FGTLMember

 FVTI:FGTLMember

 FVTI:FJFLMember

 FVTI:FJFLMember

 FVTI:FLFLMember

 FVTI:FLFLMember

 FVTI:FYBLMember

 FVTI:FYBLMember

 FVTI:FXWLMember

 FVTI:FXWLMember

 FVTI:FJWLMember

 FVTI:FJWLMember

 FVTI:FSWLMember

 FVTI:FSWLMember

 FVTI:FJSTLMember

 FVTI:FJSTLMember

 FVTI:FLTLMember

 FVTI:FLTLMember

 FVTI:FGGCMember

 FVTI:FGGCMember

 FVTI:FZGTLMember

 FVTI:FZGTLMember

 FVTI:CFTLMember

 FVTI:CFTLMember

 FVTI:LTTLMember

 FVTI:LTTLMember

 FVTI:KFTLMember

 FVTI:KFTLMember

 FVTI:PeriodEndRMBMember

 FVTI:PeriodEndRMBMember

 FVTI:PeriodAverageRMBMember

 FVTI:PeriodAverageRMBMember

 FVTI:VATSmallTaxpayersMember
 srt: MinimumMember

 FVTI:VATSmallTaxpayersMember
 srt: MaximumMember

 srt: MinimumMember

 srt: MaximumMember

 FVTI:ChinaDepositInsuranceSystemMember
 srt: MaximumMember

 us-gaap: AccountsPayableMember
 us-gaap: CustomerConcentrationRiskMember
 FVTI:NoCustomerMember

 us-gaap: AccountsPayableMember
 us-gaap: CustomerConcentrationRiskMember
 FVTI:NoCustomerMember

 us-gaap: AccountsPayableMember
 us-gaap: CustomerConcentrationRiskMember
 FVTI:ThreeSuppliersMember

 us-gaap: AccountsPayableMember
 us-gaap: CustomerConcentrationRiskMember
 FVTI:TwoSuppliersMember

 us-gaap: OfficeEquipmentMember
 srt: MinimumMember

 us-gaap: OfficeEquipmentMember
 srt: MaximumMember

 us-gaap: LeaseholdImprovementsMember

 FVTI:DistributionChannelsMember

 FVTI:OthersMember

 FVTI:SalesOfLiquorMember

 FVTI:SalesOfLiquorMember

 FVTI:SalesOfWaterMember

 FVTI:SalesOfWaterMember

 FVTI:SalesOfWaterPurifierMember

 FVTI:SalesOfWaterPurifierMember

 FVTI:OthersMember

 FVTI:OthersMember

 us-gaap: OfficeEquipmentMember

 us-gaap: OfficeEquipmentMember

 us-gaap: LeaseholdImprovementsMember

 FVTI:VehicleMember

 FVTI:VehicleMember

 FVTI:DistributionChannelMember

 FVTI:DistributionChannelMember

 us-gaap: OtherIntangibleAssetsMember

 us-gaap: OtherIntangibleAssetsMember

 FVTI:UpToTwoMillionMember
 us-gaap: InlandRevenueHongKongMember

 FVTI:OverTwoMillionMember
 us-gaap: InlandRevenueHongKongMember

 FVTI:PeopleRepublicOfChinaMember

 FVTI:PeoplesRepublicOfChinaMember

 country: US

 country: US

 FVTI:SeychelleMember

 FVTI:SeychelleMember

 country: HK

 country: HK

 country: CN

 country: CN

 FVTI:PeoplesRepublicOfChinaMember

 FVTI:SeychellesAndHongKongMember

 FVTI:SeychellesAndHongKongMember

 us-gaap: InternalRevenueServiceIRSMember

 us-gaap: InternalRevenueServiceIRSMember

 us-gaap: InlandRevenueHongKongMember

 us-gaap: InlandRevenueHongKongMember

 us-gaap: StateAdministrationOfTaxationChinaMember

 us-gaap: StateAdministrationOfTaxationChinaMember

 FVTI:PresidentChiefExecutiveOfficerSecretaryDirectorAndMajorityShareholderMember
 FVTI:MrYuminLinMember

 FVTI:MrYuminLinMember
 FVTI:PresidentChiefExecutiveOfficerSecretaryDirectorAndMajorityShareholderMember

 FVTI:MsXiulanZhouMember
 FVTI:ManagerOfASubsidiaryMrYuminLinsWifeMember

 FVTI:MsXiulanZhouMember
 FVTI:ManagerOfASubsidiaryMrYuminLinsWifeMember

 FVTI:MrHuagenLiMember

 FVTI:MrHuagenLiMember

 FVTI:GuodongJiaMember

 FVTI:GuodongJiaMember

 FVTI:ManagerOfASubsidiaryShareholderMember

 FVTI:ManagerOfASubsidiaryShareholderMember

 FVTI:AnpingChenMember

 FVTI:AnpingChenMember

 FVTI:JiangweiJiaMember

 FVTI:JiangweiJiaMember

 FVTI:YuwenLiMember
 srt: VicePresidentMember

 FVTI:YuwenLiMember
 srt: VicePresidentMember

 FVTI:LihuaLiMember

 FVTI:LihuaLiMember

 FVTI:ShenzhenDaXingHuaShangIndustryDevelopmentLtdMember
 FVTI:MrYuminLinIsTheSupervisorOfShenzhenDaXingHuaShangIndustryDevelopmentLtdMember

 FVTI:ShenzhenDaXingHuaShangIndustryDevelopmentLtdMember
 FVTI:MrYuminLinIsTheSupervisorOfShenzhenDaXingHuaShangIndustryDevelopmentLtdMember

 FVTI:ChunxiangZhangMember

 FVTI:ChunxiangZhangMember

 FVTI:MengXueMember

 FVTI:MengXueMember

 FVTI:ShuqinChenMember

 FVTI:ShuqinChenMember

 FVTI:ZhipengZuoMember

 FVTI:ZhipengZuoMember

 FVTI:DeqinKeMember

 FVTI:DeqinKeMember

 FVTI:AishengZhangMember

 FVTI:AishengZhangMember

 FVTI:ZhihuaLiaoMember

 FVTI:ZhihuaLiaoMember

 FVTI:MrKaihongLinMember
 FVTI:ChiefFinancialOfficerAndTreasurerMember

 FVTI:MrKaihongLinMember
 FVTI:ChiefFinancialOfficerAndTreasurerMember

 FVTI:MrYuminLinMember
 FVTI:PresidentChiefExecutiveOfficerSecretaryDirectorAndMajorityShareholderMember

 FVTI:MrYuminLinMember
 FVTI:PresidentChiefExecutiveOfficerSecretaryDirectorAndMajorityShareholderMember

 FVTI:XiuLanZhouMember
 FVTI:ManagerOfASubsidiaryMrYuminLinsWifeMember

 FVTI:XiuLanZhouMember
 FVTI:ManagerOfASubsidiaryMrYuminLinsWifeMember

 FVTI:MrZihaoYeMember

 FVTI:MrZihaoYeMember

 FVTI:MrHongweiYeMember
 FVTI:ManagerOfASubsidiaryShareholderMember

 FVTI:MrHongweiYeMember
 FVTI:ManagerOfASubsidiaryShareholderMember

 FVTI:MrJianglongXiongMember

 FVTI:MrJianglongXiongMember

 FVTI:DongguanHumenShuiyanDrinkingWaterMember
 FVTI:ShuiyanLiMember

 FVTI:DongguanHumenShuiyanDrinkingWaterMember
 FVTI:ShuiyanLiMember

 FVTI:DongguanHuanhaiTradingCoLtdMember

 FVTI:DongguanHuanhaiTradingCoLtdMember

 FVTI:DongguanCityHualianguanChemicalMember

 FVTI:DongguanCityHualianguanChemicalMember

 FVTI:GuangdongYuexinJiaotongConstructionCoLtdMember
 FVTI:MrNaiyongLuoAManagerMember

 FVTI:GuangdongYuexinJiaotongConstructionCoLtdMember
 FVTI:MrNaiyongLuoAManagerMember

 FVTI:YuwenLiMember
 srt: VicePresidentMember

 FVTI:YuwenLiMember
 srt: VicePresidentMember

 FVTI:DongguanAnxiangTechnologyCoLtdMember

 FVTI:DongguanAnxiangTechnologyCoLtdMember

 FVTI:GuangdongJiaduonuoShengshiTradingCoLtdMember

 FVTI:GuangdongJiaduonuoShengshiTradingCoLtdMember

 FVTI:DongguanBaxiFoodDistributionCoLtdMember

 FVTI:DongguanBaxiFoodDistributionCoLtdMember

 FVTI:DongguanDalingshanXinwenhuaDrinkingWaterStoreMember

 FVTI:DongguanDalingshanXinwenhuaDrinkingWaterStoreMember

 FVTI:DongguanPengqinDrinkingWaterCoLtdMember

 FVTI:DongguanPengqinDrinkingWaterCoLtdMember

 FVTI:DongguanTailaiTradingCoLtdMember

 FVTI:DongguanTailaiTradingCoLtdMember

 FVTI:DongguanDalingshanRunxinDrinkingWaterStoreMember

 FVTI:DongguanDalingshanRunxinDrinkingWaterStoreMember

 FVTI:DongguanDengqinghuDrinkingWaterStoreMember

 FVTI:DongguanDengqinghuDrinkingWaterStoreMember

 FVTI:DongguanCityYijiaTradingCoLtdMember

 FVTI:DongguanCityYijiaTradingCoLtdMember

 FVTI:DongguanAnxiangTechnologyCoLtdMember

 FVTI:DongguanAnxiangTechnologyCoLtdMember

 FVTI:GuangdongJiaduonuoShengshiTradingCoLtdMember

 FVTI:GuangdongJiaduonuoShengshiTradingCoLtdMember

 FVTI:DongguanBaxiFoodDistributionCoLtdMember

 FVTI:DongguanBaxiFoodDistributionCoLtdMember

 FVTI:DongguanDalingshanXinwenhuaDrinkingWaterStoreMember

 FVTI:DongguanDalingshanXinwenhuaDrinkingWaterStoreMember

 FVTI:DongguanPengqinDrinkingWaterCoLtdMember

 FVTI:DongguanPengqinDrinkingWaterCoLtdMember

 FVTI:DongguanTailaiTradingCoLtdMember

 FVTI:DongguanTailaiTradingCoLtdMember

 FVTI:DongguanDengqinghuDrinkingWaterStoreMember

 FVTI:DongguanDengqinghuDrinkingWaterStoreMember

 FVTI:DongguanDalingshanRunxinDrinkingWaterStoreMember

 FVTI:DongguanDalingshanRunxinDrinkingWaterStoreMember

 FVTI:DongguanCityYijiaTradingCoLtdMember

 FVTI:DongguanCityYijiaTradingCoLtdMember

 FVTI:RelatedPartyTransactionMember

 FVTI:RelatedPartyTransactionMember

 FVTI:QingmeiLinMember
 FVTI:OperatingLeaseAgreementMember

 FVTI:OperatingLeaseAgreementMember

 us-gaap: NonrelatedPartyMember

 us-gaap: NonrelatedPartyMember

 2020-08-31

 2020-08-01
 2020-08-31

 2021-11-30

 2021-11-01
 2021-11-30

 2021-12-11
 2021-12-11

 2021-12-11

 2022-05-01

 FVTI:HuanengGuichengTrustCoLtdMember

 FVTI:HuanengGuichengTrustCoLtdMember

 2022-05-01

 2022-05-01

 FVTI:WeBankOneMember

 FVTI:GuangdongNanyueBankMember

 FVTI:WeBankAndGuangdongNanyueBankCoLtdMember

 2022-07-01

 FVTI:WeBankTwoMember

 FVTI:NanyueBankMember

 FVTI:WeBankAndNanyueBankMember

 2022-07-01

 FVTI:HuanengGuichengMember

 FVTI:HuanengGuichengMember

 2022-07-01

 2023-02-28

 2023-02-01
 2023-02-28

 FVTI:BankOfNingboMember

 FVTI:BankOfNingboAndWeBankMember

 2023-04-01

 FVTI:CarLoanWeBankMember

 FVTI:CarLoanWeBankMember

 2023-04-01

 2023-05-31

 2023-05-01
 2023-05-31

 FVTI:NanyueBankMember

 FVTI:WeBankAndNanyueBankMember

 2023-07-01

 FVTI:ChinaConstructionBankLoanOneMember

 FVTI:ChinaConstructionBankLoanOneMember

 2023-07-01

 FVTI:ChinaConstructionBankLoanTwoMember

 FVTI:ChinaConstructionBankLoanTwoMember

 2023-07-01

 2023-11-30

 2023-11-01
 2023-11-30

 FVTI:BankLoanFromTheTrustInPRCMember

 FVTI:BankLoanFromTheTrustInPRCMember

 FVTI:GuangdongNanyueBankMember

 FVTI:GuangdongNanyueBankMember

 FVTI:BankOfNingboMember

 FVTI:BankOfNingboMember

 2021-10-21

 2021-10-21
 2021-10-21

 2020-09-30

 us-gaap: SubsequentEventMember

 2024-02-29

 us-gaap: SubsequentEventMember

 2024-02-01
 2024-02-29

 UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 Washington,
D.C. 20549

 FORM

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

 For
the fiscal year ended December 31, 2023

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

 For
the transition period from ____________to ____________

 Commission
File Number: 000-55555

 FORTUNE
VALLEY TREASURES, INC.

 (Exact
name of registrant as specified in its charter)

 Nevada

 32-0439333

 (State
 or other jurisdiction of

 (I.R.S.
 Employer

 incorporation
 or organization)

 Identification
 Number)

 16th
Floor, Building 2, A+Building

Liansheng Road, Humen Town

City, Guangdong Province, China 523000

 (Address
of principal executive office and zip code)

 ( 86)
 769-8572 9133

 (Registrant's
telephone number, including area code)

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

 Securities
registered pursuant to Section 12(g) of the Act: Common stock, par value $0.001 per share

by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

 Yes
 No

by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

 Yes
 No

by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.

 Yes
 No

by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files).

 Yes
 No

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

 Large
 accelerated filer

 Accelerated
 filer

 Non-accelerated
 filer

 Smaller
 reporting company

 Emerging
 growth company

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

by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report.

 If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.

by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 Yes
 No

 The
aggregate market value of the voting stock and non-voting common equity held by non-affiliates of the registrant as of June 30, 2023,
the last business day of the registrant's most recently completed second fiscal quarter, computed by reference to the $3.90 closing
price of the stock on that date, was approximately $ 8.58 million.

 As
of April 15, 2024, the number of shares outstanding of the registrant's common stock, $0.001 par value, was 15,655,038 shares.

 Documents
Incorporated by Reference: None.

 TABLE
OF CONTENTS

 Cautionary Notes Regarding Forward-Looking Statements

 ITEM

 Business

 ITEM
 1A

 Risk Factors

 ITEM
 1B

 Unresolved Staff Comments

 ITEM 1C

 Cybersecurity

 ITEM

 Properties

 ITEM

 Legal Proceedings

 ITEM

 Mine Safety Disclosures

 ITEM

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 ITEM

 [Reserved]

 ITEM

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 ITEM
 7A

 Quantitative and Qualitative Disclosures about Market Risk

 ITEM

 Financial Statements and Supplementary Data

 ITEM

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 ITEM
 9A

 Controls and Procedures

 ITEM
 9B

 Other Information

 ITEM
 9C

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 ITEM

 Directors, Executive Officers and Corporate Governance

 ITEM

 Executive Compensation

 ITEM

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 ITEM

 Certain Relationships and Related Transactions, and Director Independence

 ITEM

 Principal Accounting Fees and Services

 PART
 IV

 ITEM

 Exhibits and Financial Statement Schedules

 ITEM

 Form 10-K Summary

 CAUTIONARY
NOTES REGARDING FORWARD-LOOKING STATEMENTS

 This
annual report on Form 10-K ("Annual Report") contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"). These forward-looking statements are not historical facts but rather are based on current expectations,
estimates and projections. We may use words such as "anticipate," "expect," "intend," "plan,"
"believe," "foresee," "estimate" and variations of these words and similar expressions to identify
forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties
and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially
from those expressed or forecasted. These risks and uncertainties include, but are not limited to, the following:

 the
 availability and adequacy of working capital to meet our requirements;

 the
 consummation of any potential acquisitions;

 actions
 taken or to be taken by legislative, regulatory, judicial and other governmental authorities in China and the United States;

 changes
 in our business strategy or development plans;

 our
 ability to continue as a going concern;

 the
 availability of additional capital to support capital improvements and development;

 potential opportunities
 for acquisitions of suitable businesses;

 the availability of new
 business opportunities

 actions the Chinese government
 may take to intervene in or influence the operations of our subsidiaries in China;

 uncertainties in the enforcement
 and interpretation of PRC laws and regulations, including with respect to the areas of data security, cybersecurity, personal information
 protection, and other laws and regulations, future new PRC laws and regulations, or amendments to such laws and regulations;

 approval, filing, or procedural
 requirements imposed by the China Securities Regulatory Commission ("CSRC") or other Chinese regulatory authorities in
 connection with issuing securities to foreign investors under PRC law;

 restrictions on currency
 exchange;

 limitations on the ability
 of our PRC subsidiaries to make payments to us;

 PRC regulation regarding
 acquisitions of companies based in mainland China by foreign investors;

 unfavorable tax consequences
 to us and our non-PRC shareholders if we were to be classified as a resident enterprise for Chinese income tax purposes;

 restrictions or limitations
 on the ability of overseas regulators to conduct investigations or collect evidence within mainland China;

 the
 impact of or disruptions caused by pandemic such as COVID-19, natural disasters, extreme weather events, war and other significant disruptions outside of our
control on our business and operations and our ability to address such challenges;

 our
 ability to address and as necessary adapt to changes in foreign, cultural, economic, political and financial market conditions which
 could impair our future operations and financial performance; and

 other
 risks identified in this report and in our other filings with the Securities and Exchange Commission (the "SEC").

 This
Annual Report on Form 10-K should be read completely and with the understanding that actual future results may be materially different
from what we expect. The forward-looking statements included in this Annual Report on Form 10-K are made as of the date of this Annual
Report on Form 10-K and should be evaluated with consideration of any changes occurring after the date of this Annual Report on Form
10-K. We will not update forward-looking statements even though our situation may change in the future and we assume no obligation to
update any forward-looking statements, whether as a result of new information, future events or otherwise.

 Disclosures
Relating to the Operations of Our PRC Subsidiaries

Valley Treasures, Inc. ("FVTI" or "FVTI Nevada") is not an operating company but a holding company incorporated
in the State of Nevada. Substantially all of the business operations is conducted in the People's Republic of China ("PRC"
or "China") by our PRC subsidiaries. None of our PRC subsidiaries operates with a variable interest entity ("VIE")
structure, but Chinese regulatory authorities could disallow our current operating structure, which would likely result in a material
change in our operations and/or cause the value of such securities to significantly decline or become worthless. See "Risk Factors
— If the Chinese government determines that our corporate structure does not comply with Chinese regulations, or if Chinese regulations
change or are interpreted differently in the future, Chinese regulatory authorities could disallow our current operating structure, which
would likely result in a material change in our operations and/or cause the value of such securities to significantly decline or become
worthless"; "Risk Factors — The Chinese government may intervene or influence our operations at any time, or may exert
more control over offerings conducted overseas and/or foreign investment in China-based issuers, which could result in a material change
in our operations and/or cause the value of our securities to significantly decline or be worthless."

 The
following chart depicts our corporate organizational structure as of December 31, 2023:

 We
face various legal and operational risks and uncertainties relating to our subsidiaries' operations in China. Because substantially
all of our operations are conducted in China through our PRC subsidiaries, the Chinese government may intervene or influence the operation
of our PRC subsidiaries and exercise significant oversight and discretion over the conduct of their business and may intervene in or
influence their operations at any time, or may exert more control over securities offerings conducted overseas and/or foreign investment
in China-based issuers, which could result in a material change in operations of our PRC subsidiaries and/or the value of our common
stock. Further, any actions by the Chinese government to exert more oversight and control over offerings that are conducted overseas
and/or foreign investment in China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer
securities to investors and cause the value of such securities to significantly decline or be worthless.

 Recently,
the PRC government initiated a series of regulatory actions and statements to regulate business operations in China with little advance
notice, including cracking down on illegal activities in the securities market, adopting new measures to extend the scope of cybersecurity
reviews, and expanding the efforts in anti-monopoly enforcement. We do not believe that we are directly subject to these regulatory actions
or statements, as our PRC subsidiaries do not have a VIE structure and their operations are not subject to cybersecurity review requirements,
or involve any type of restricted industry. Because these statements and regulatory actions are new, it is highly uncertain how soon
legislative or administrative rule making bodies in China will respond to them, or what existing or new laws or regulations will be modified
or promulgated, if any, or the potential impact such modified or new laws and regulations will have on our subsidiaries' daily
business operations or ability to accept foreign investments and list on an U.S. exchange. In July 2021, the Cyberspace Administration
of China ("CAC") opened cybersecurity probes into several U.S.-listed technology companies focusing on anti-monopoly regulation,
and how companies collect, store, process and transfer data, among other things. On October 23, 2021, the Standing Committee of the National
People's Congress issued a discussion draft of the amended Anti-Monopoly Law, which proposes to increase the fines for illegal
concentration of business operators to "no more than ten percent of its last year's sales revenue if the concentration of
business operator has or may have an effect of excluding or limiting competition; or a fine of up to RMB 5 million if the concentration
of business operator does not have an effect of excluding or limiting competition." On December 24, 2021, nine government agencies
jointly issued the Opinions on Promoting the Healthy and Sustainable Development of Platform Economy, which provides that, among others,
monopolistic agreements, abuse of dominant market position and illegal concentration of business operators in the field of platform economy
will be strictly investigated and punished in accordance with the relevant laws. We do not hold a dominant market position in our product
markets and we have not entered into any monopolistic agreement. We have not received any inquiry from the relevant governmental authorities.
On July 10, 2021, the CAC published a revised draft revision to the Cybersecurity Review Measures for public comment, or the Draft Cybersecurity
Measures, and together with 12 other Chinese regulatory authorities, released the final version of the Revised Measures for Cybersecurity
Review, or the Revised Cybersecurity Measures, in December 2021, which took effect on February 15, 2022. Pursuant to the Revised Cybersecurity
Measures, critical information infrastructure operators procuring network products and services and online platform operators carrying
out data processing activities, which affect or may affect national security, shall conduct a cybersecurity review pursuant to the provisions
therein. In addition, online platform operators possessing personal information of more than one million users seeking to be listed on
foreign stock markets must apply for a cybersecurity review. We don't believe that we are an "operator" within the
meaning of the Revised Cybersecurity Measures, nor do we control more than one million users' personal information, and therefore,
we should not be required to undertake a cybersecurity review under the Revised Cybersecurity Measures. Further, an expert interpretation
of the Revised Cybersecurity Measures published at the CAC's website on February 17, 2022 indicated no application review is required
for operators that have been listed abroad before the implementation of the Revised Cybersecurity Measures. The Revised Cybersecurity
Measures apply to companies going abroad for secondary listing, dual primary listing and other new foreign listings and subject to the
reporting requirements. On February 17, 2023, China Securities Regulatory Commission (the "CSRC") issued the Trial Administrative
Measures of Overseas Securities Offering and Listing by Domestic Enterprises, or the Trial Measures, and five application guidelines
(collectively, the "Overseas Listing Rules"), which took effect on March 31, 2023. According to the Overseas Listing Rules,
all China-based companies applying for overseas securities issuance, listing and post-listing capital operations shall be subject to
statutory procedures, such as filing and information reporting requirements. After making the initial application with an overseas securities
regulatory authority or stock exchange for an offering or listing, a China-based company shall file with the CSRC within three business
days. Subsequent securities offerings of an issuer in the same overseas market where it has previously offered and listed securities
shall be filed with the CSRC within three business days after the offering is completed. Subsequent securities offerings and listings
of an issuer in other overseas markets than where it has offered and listed shall be filed with the CSRC within three business days after
the application is made. In addition, overseas offerings and listings will be prohibited for China-based companies under certain circumstances
as prescribed. The Overseas Listing Rules further provide that a fine between RMB 1 million and RMB 10 million may be imposed if a company
fails to fulfil the filing requirements with the CSRC or conducts an overseas offering or listing in violation of the Overseas Listing
Rules. Overseas offerings and listings subject to the Overseas Listing Rules include direct and indirect offerings and listings. The
Company's listing application to trade our shares on Nasdaq Capital Market will be deemed as an indirect overseas listing under
the Overseas Listing Rules and we are required to complete the filing procedures and submit the relevant information to CSRC. No CSRC
approval is required under the rules. However, there is uncertainty inherent in relying on an opinion of counsel in connection with whether
we are required to obtain approvals or permissions from a PRC governmental authority for the conduct of our operations, securities offerings
and/or listings. In the event that an government approval is required, we cannot assure you that we will be able to receive clearance
in a timely manner, or at all. Any failure of us to fully comply with new regulatory requirements may significantly limit or completely
hinder our ability to offer or continue to offer our common stock, cause significant disruption to our business operations, severely
damage our reputation, materially and adversely affect our financial condition and results of operations and cause our shares to significantly
decline in value or become worthless.

 Cash
may be transferred within our organization in the following manners: (i) FVTI Nevada may transfer funds to our subsidiaries, including
our PRC subsidiaries, by way of capital contributions or loans, through intermediate holding subsidiaries or otherwise; (ii) we and our
intermediate holding subsidiaries may provide loans to our operating subsidiaries and vice versa; and (iii) our subsidiaries, including
our PRC subsidiaries, may make dividends or other distributions to us through intermediate holding companies or otherwise. As of the
date of this report, we have not made any cash transfers, capital contributions or loans to any of our subsidiaries. Any loans from us
or our holding subsidiaries outside of China (including Hong Kong subsidiaries) to our PRC subsidiaries, which are treated as foreign-invested
enterprises ("FIEs") under PRC law, are subject to PRC regulations and foreign exchange loan registrations. Such loans to
our FIE subsidiaries to finance their activities must be registered with the State Administration of Foreign Exchange ("SAFE")
or its local counterparts. Funds are transferred among our PRC subsidiaries for working capital purposes, primarily between Qianhai DaXingHuaShang
Investment (Shenzhen) Co., Ltd. ("QHDX"), our wholly foreign owned enterprise (WFOE) subsidiary, and its operating subsidiaries.
As advised by our PRC counsel, PRC laws, regulations and judicial interpretations thereof do not prohibit using cash generated from one
subsidiary to fund another subsidiary's operations by way of short term interest free loans. We have not been notified of any other
restriction which could limit our PRC subsidiaries' ability to transfer cash to other PRC subsidiaries. In addition, QHDX has maintained
cash management policies which dictate the corporate approvals and procedure with respect to cash transfers with other PRC subsidiaries.
QHDX conducts review and management of its subsidiaries' cash transfers and reports to its board of directors. Other than QHDX,
neither us nor other subsidiaries have cash management policies dictating how funds are transfer, albeit each company must comply with
applicable laws or regulations with respect to transfer of funds, dividends and distributions. In the future, cash proceeds raised from
overseas financing activities, including this offering, may be transferred by us to our Hong Kong subsidiaries and PRC subsidiaries via
capital contributions or shareholder loans. As of the date of this report, FVTI Nevada has not made dividend or other distributions to
our shareholders. FVTI Nevada may pay dividends to our shareholders subject to our ability to service our debts as they become due and
provided that our assets will exceed our liabilities after the payment of such dividends. As a holding company, FVTI Nevada may rely
on dividends and other distributions on equity paid by our subsidiaries for our cash and liquidity requirements, including payment of
any debt we may incur outside of China and our expenses. If any of our subsidiaries incurs debt on its own behalf in the future, the
instruments governing such debt may restrict their ability to pay dividends to us. To the extent cash or assets in the business is in
the PRC or Hong Kong or a PRC or Hong Kong subsidiary, the cash or assets may not be available to fund operations or for other use outside
of the PRC or Hong Kong due to interventions in or the imposition of restrictions and limitations on our or our subsidiaries' ability
by the PRC government to transfer cash or assets. PRC laws and regulations applicable to our PRC subsidiaries permit payments of dividends
only out of their retained earnings, if any, determined in accordance with applicable accounting standards and regulations. Our PRC subsidiaries
may pay dividends only out of their respective accumulated after-tax profits as determined in accordance with PRC accounting standards
and regulations. In addition, our subsidiaries are required to set aside at least 10% of its accumulated after-tax profits each year,
if any, to fund certain statutory reserve funds, until the aggregate amount of such funds reaches 50% of its registered capital. At its
discretion, a wholly foreign-owned enterprise may allocate a portion of its after-tax profits to discretionary funds. These reserve funds
and discretionary funds are not distributable as cash dividends. Furthermore, dividends paid by our WFOE subsidiaries to their parent
companies will be subject to a 10% withholding tax, which can be reduced to 5% if certain requirements are met. The PRC government also
imposes restrictions on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. As such, we may
experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency for the payment of
dividends from our profits, if any. As of the date of this report, none of our subsidiaries has made any dividends or other distributions
to us. Our WFOE subsidiary, QHDX, has paid on our behalf for professional service fees and U.S. federal income tax due. Our PRC subsidiaries
presently intend to retain all earnings to fund their operations and business expansions. We do not anticipate paying dividends or other
distributions to our shareholders in the foreseeable future. See "Item 1. Business — Cash Flows, Dividends and Other Asset
Transfers between the U.S. Holding Company and Our Subsidiaries" and "Item 5. Market for Common Equity, Related Stockholder
Matters and Issuer Purchases of Equity Securities — Dividends."

 Our
common stock may be prohibited from trading on a national exchange or "over-the-counter" markets under the Holding Foreign
Companies Accountable Act (the "HFCAA") if the Public Company Accounting Oversight Board ("PCAOB") determines
it is unable to inspect or investigate completely our auditors for two consecutive years. Pursuant to the HFCAA enacted in December 2020
and related legislation, if the SEC determines that a company has filed an audit report issued by a registered public accounting firm
that has not been subject to inspection by the PCAOB for two consecutive years, the SEC is required to prohibit such company's
securities from being traded on a national securities exchange or in the over the counter trading market in the U.S. On August 26, 2022,
the PCAOB signed a Statement of Protocol Agreement with the CSRC and the Ministry of Finance (the "MOF") of the PRC, which
establishes a method and framework for the PCAOB to conduct inspections and investigations of audit firms based in mainland China or
Hong Kong. On December 15, 2022, the PCAOB announced that the PCAOB was able to secure complete access to inspect and investigate registered
public accounting firms headquartered in mainland China and Hong Kong and vacated its previous 2021 determinations that the PCAOB was
unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. However,
should PRC authorities obstruct or otherwise fail to facilitate the PCAOB's access in the future, the PCAOB will consider the need
to issue a new determination. Our auditor, YCM CPA Inc. (Hereinafter "YCM CPA"),
is headquartered in Irvine, California, with offices in China and, as a PCAOB-registered
public accounting firm, is required to undergo regular inspections by the PCAOB to assess its compliance with the laws of the U.S. and
professional standards. YCM CPA has been subject to PCAOB inspections and is not among the PCAOB-registered public accounting firms headquartered
in the PRC or Hong Kong that are subject to PCAOB's determination. Notwithstanding the foregoing, if it is later determined that
the PCAOB is unable to inspect or investigate our auditor completely, if there is any regulatory change or step taken by PRC regulators
that does not permit YCM CPA to provide audit documentations located in China or Hong Kong to the PCAOB for inspection or investigation,
or the PCAOB expands the scope of the Determination so that we are subject to the HFCAA, as the same may be amended, we would fail to
meet the PCAOB's requirements. Any audit reports not issued by auditors that are completely inspected or investigated by the PCAOB,
or a lack of PCAOB inspections of audit work undertaken in China that prevents the PCAOB from regularly evaluating our auditors'
audits and their quality control procedures, could result in a lack of assurance that our financial statements and disclosures are adequate
and accurate, which could result in limitation or restriction to our access to the U.S. capital markets, and trading of our securities,
including trading on the national exchange and trading on "over-the-counter" markets, may be prohibited under the HFCAA.
See "Risk Factors — Trading in our securities may be prohibited under the Holding Foreign Companies Accountable Act if
the PCAOB determines that it cannot inspect or investigate completely our auditors for two consecutive years"; and "Risk
Factors — Newly enacted Holding Foreign Companies Accountable Act, recent regulatory actions taken by the SEC and the Public Company
Accounting Oversight Board, and proposed rule changes submitted by Nasdaq calling for additional and more stringent criteria to be applied
to China-based public companies could add uncertainties to our capital raising activities and compliance costs."

 Summary
Risk Factors

 Our
business and prospects may be limited by a number of risks and uncertainties that we currently face, including without limitation, the
following:

 Risks
Related to Our Business and Industry

 We
 have a limited operating history in the food supply chain industry in China and cannot ensure the long-term successful operation
 of all of our businesses

 We have a history of operating losses, and continued future operating losses would have a material adverse effect on our ability to continue
as a going concern

 The COVID-19 pandemic has had, and may continue to have, an adverse effect on our business and our financial results

 to successfully execute our online and offline-channel strategy and the cost of our investments in our online platform and technology
 may materially adversely affect our gross profit, net sales and financial performance

 We
 operate in the highly competitive food and beverage industry, and our failure to compete effectively could adversely affect our market
 share, revenues and growth prospects

 Supply
 chain issues that increase our costs or cause a delay in our ability to fulfill orders could have an adverse impact on our business
 and operating results

 Our
 failure to appropriately respond to changing consumer preferences and demand for new products could significantly harm our customer
 relationships and product sales

 We
 may be unable to obtain or renew required permits, licenses or approvals necessary for our business operations, and could be imposed
 with fines and penalties for violations of the license requirements

 While we are not aware of any data breach in the past,
future cyberattacks, computer viruses or any failure to adequately maintain security and prevent unauthorized access to our information
technology system or data could result in a disruption of our business operations and materially adversely affect our reputation, financial
condition and operating results

 Climate change, or legal, regulatory or market responses to climate change
may adversely affect our business, results of operations and financial condition

 Risks
Related to Doing Business in China

 China's
 political climate and economic conditions, as well as changes in government policies, laws and regulations which may be quick with
 little advance notice, could have a material adverse effect on our business, financial condition and results of operations.

 Uncertainties
 with respect to the PRC legal system could adversely affect us, including risks and uncertainties regarding the enforcement of laws
 and that rules and regulations in China can change quickly with little advance notice. Such uncertainties could cause our shares
 to significantly decline in value or become worthless.

 The
 Chinese government may intervene or influence the operations of our PRC subsidiaries and exercise significant oversight and discretion
 over the conduct of their business and may intervene in or influence their operations at any time, which could result in a material
 change in operations of our PRC subsidiaries and/or the value of our common stock.

 If
 the Chinese government determines that our corporate structure does not comply with Chinese regulations, or if Chinese regulations
 change or are interpreted differently in the future, Chinese regulatory authorities could disallow our current operating structure,
 which would likely result in a material change in our operations and/or cause the value of such securities to significantly decline
 or become worthless.

 The
 Chinese government may intervene or influence our operations at any time, or may exert more control over offerings conducted overseas
 and/or foreign investment in China-based issuers, which could result in a material change in our operations and/or cause the value
 of our securities to significantly decline or be worthless.

 regulatory developments in China, including greater oversight and control by the CAC over data security, may subject us to additional
 regulatory review, and any actions by the Chinese government to exert more oversight and control over foreign investment in China-based
 issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause
 the value of such securities to significantly decline or be worthless.

 in our securities may be prohibited under the Holding Foreign Companies Accountable Act if the PCAOB determines that it cannot inspect
 or investigate completed our auditors for two consecutive years.

 There
 are uncertainties under the PRC laws relating to the procedures for U.S. regulators to investigate and collect evidence from companies
 located in the PRC.

 Chinese
 economic growth slowdown may have a negative effect on our business.

 You
 may have difficulty enforcing judgments against us.

 to comply with laws and regulations applicable to our business in China could subject us to fines and penalties and could also cause
 us to lose customers or otherwise harm our business.

 Under
 the Enterprise Income Tax Law, we may be classified as a "Resident Enterprise" of China. Such classification will likely
 result in unfavorable tax consequences to us and our non-PRC stockholders.

 PRC
 regulation of loans and direct investment by offshore holding companies in PRC entities may delay or prevent us from using the proceeds
 of our securities offerings to make loans or additional capital contributions to our PRC operating subsidiaries, which could materially
 and adversely affect our liquidity and our ability to fund and expand our business.

 to comply with the Individual Foreign Exchange Rules relating to the overseas direct investment or the engagement in the issuance
 or trading of securities overseas by our PRC resident stockholders may subject such stockholders to fines or other liabilities.

 To
 the extent cash or assets in the business is in the PRC or Hong Kong or a PRC or Hong Kong entity, such cash or assets may not be
 available to fund operations or for other use outside of the PRC or Hong Kong due to interventions in or the imposition of restrictions
 and limitations on the ability of us or our subsidiaries by the PRC government to transfer cash or assets.

 Governmental
 control of currency conversion may affect the value of our investment.

 Payment
 of dividends is subject to restrictions under Nevada and the PRC laws.

 Risks
Related to our Securities

 Our
 common stock may not develop an active trading market and the price and trading volume of our shares may fluctuate significantly.

 If
 our shares trade under $5.00 per share, they will be considered penny stock; and trading in penny stocks has many restrictions, which
 could severely affect the price and liquidity of our shares.

 We
 do not anticipate paying cash dividends on our Common Stock in the foreseeable future

 Our
 Chief Executive Officer, Mr. Yumin Lin, and our former Director, Mr. Minghua Cheng, own a majority of our outstanding shares of common
 stock and could significantly influence the outcome of our corporate matters

 The
 price of our common stock may be volatile or may decline regardless of our operating performance, and stockholders may not be able
 to resell their shares

 Future
 sales of substantial amounts of the shares of our Common Stock by existing shareholders could adversely affect the price of our Common
 Stock

 In
addition, we face other risks and uncertainties that may materially affect our business prospects, financial condition and results of
operations. You should consider the risks discussed in "Risk Factors" and elsewhere in this report before investing in our
common stock.

 Conventions
and Terminology

 Except
where the context otherwise requires and for purposes of this report only, references to:

the "Company," "FVTI," "FVTI Nevada," "the U.S. holding company," "we," "us,"
and "our" are to Fortune Valley Treasures, Inc., a Nevada corporation, which is the parent holding company.

"China" and the "PRC" are to the People's Republic of China, excluding, for the purposes of this report
only, Taiwan, the Hong Kong Special Administrative Region (Hong Kong) and the Macao Special Administrative Region (Macao).

our "offshore subsidiaries" are to all of our subsidiaries except our PRC subsidiaries, including:

DaXingHuaShang Investment Group Limited, a holding company incorporated under the laws of the Republic of Seychelles ("DIGLS"),
which is a wholly owned subsidiary of FVTI;

Jiujiu Group Stock Co., Ltd., a holding company incorporated under the laws of the Republic of Seychelles ("JJGS"), which
is a wholly owned subsidiary of FVTI;

DaXingHuaShang Investment (Hong Kong) Limited, a holding company organized under the laws of Hong Kong ("DILHK") and a wholly
owned subsidiary of DIGLS, which is currently not engaged in any active business operations;

Jiujiu (HK) Industry Limited, a holding company organized under the laws of Hong Kong ("JJHK") and a wholly owned subsidiary
of JJGS, which is currently not engaged in any active business operations;

our "PRC subsidiaries" are to our subsidiaries incorporated in mainland China, including:

Qianhai DaXingHuaShang Investment (Shenzhen) Co., Ltd., a company incorporated in China ("QHDX" or a "WFOE")
and a wholly-owned subsidiary of DILHK;

Jiujiu (Shenzhen) Industry Co., Ltd., a company incorporated in China ("JJSZ" or a "WFOE") and a wholly-owned
subsidiary of JJHK;

 Dongguan Xixingdao Technology Co., Ltd. ("Xixingdao"), a company incorporated in the
PRC and a 90%-owned subsidiary of QHDX;

Dongguan City FVT Supply Chain Technology Co., Ltd. ("FVTL or FVT Supply Chain"), a company incorporated in the PRC and a
wholly-owned subsidiary of QHDX;

Dongguan City Fu Gu Supply Chain Group Co., Ltd. ("FGGC" or "FG Supply Chain"), a company incorporated in the
PRC and a wholly-owned subsidiary of QHDX;

Dongguan City Fu La Tu Trade Co., Ltd. ("FLTT"), a company incorporated in the PRC and a wholly-owned subsidiary of FVTL;

Dongguan City Fu Xin Gu Trade Co., Ltd. ("FXGT"), a company incorporated in the PRC and a wholly-owned subsidiary of FVTL;

Dongguan City Fu Zhi Gu Trade Co., Ltd. ("FZGT"), a company incorporated in the PRC and a wholly-owned subsidiary of FVTL;

Dongguan City Chang Fu Trade Co., Ltd. ("CFT"), a company incorporated in the PRC and a wholly-owned subsidiary of FVTL;

Dongguan City La Tong Trade Co., Ltd. ("LTT"), a company incorporated in the PRC and a wholly-owned subsidiary of FVTL;

Dongguan City Kai Fu Trade Co., Ltd. ("KFT"), a company incorporated in the PRC and a wholly-owned subsidiary of FVTL;

Dongguan City Fu Lai Food Co., Ltd. ("FLFL"), a company incorporated in the PRC and a wholly-owned subsidiary of Xixingdao;

Dongguan City Fu Xin Technology Co., Ltd. ("FXTL"), a company incorporated in the PRC and a wholly-owned subsidiary of Xixingdao;

Dongguan City Fu Xiang Technology Co., Ltd ("FGTL"), a company incorporated in the PRC and a wholly-owned subsidiary of Xixingdao;

Dongguan City Fu Ji Food & Beverage Co., Ltd. ("FJFL"), a company incorporated in the PRC and a wholly-owned subsidiary
of Xixingdao;

Dongguan City Fu Yi Beverage Co., Ltd. ("FYBL"), a company incorporated in the PRC and a wholly-owned subsidiary of Xixingdao;

Dongguan City Fu Guan Healthy Industry Technology Co., Ltd. ("FGHL"), a company incorporated in the PRC and a wholly-owned
subsidiary of Xixingdao;

Dongguan City Fu Jing Technology Co., Ltd. ("FJTL"), a company incorporated in the PRC and a wholly-owned subsidiary of Xixingdao;

Dongguan City Fu Sheng Drinking Water Co. Ltd. ("FSWL"), a company incorporated in the PRC and a wholly-owned subsidiary
of Xixingdao;

Dongguan City Fu Jia Drinking Water Co., Ltd. ("FJWL"), a company incorporated in the PRC and a wholly-owned subsidiary of
Xixingdao;

Dongguan City Fu Xi Drinking Water Co., Ltd. ("FXWL"), a company incorporated in the PRC and a wholly-owned subsidiary of
Xixingdao;

Dongguan City Fu Li Trading Co., Ltd. ("FLTL"), a company incorporated in the PRC and a wholly-owned subsidiary of Xixingdao;
and

Shenzhen Fu Jin Trading Technology Co., Ltd. ("FJSTL"), a company incorporated in the PRC and a wholly-owned subsidiary of
Xixingdao.

 All
references to "USD" or U.S. Dollars (US$) are to the legal currency of the United States of America. All references to "RMB"
are to the legal currency of People's Republic of China.

 PART
I

 Item
1. Business

 Overview

 We
conduct our business through our PRC subsidiaries, which are a food and beverage supply chain company group based in Guangdong province,
China. With the mission to improve people's lives by offering safe and quality foods, we are committed to building a first class
food supply chain business in China and in the global markets. Through quality control and sales of selected branded products, we provide
a one-stop quality food purchase experience for both businesses and individual customers. Our products are well recognized among consumer
groups in the Pearl River Delta region of China.

 Our
vision is "Safe Foods for the People." We strive to improve the consumers' food experience in respect of brand, quality,
service and speed. Through online and offline channels, we deliver quality food products to consumers through sales targeting regional
wholesalers, major food and beverage chains, supermarkets and other retailers.

 We
purchase, supply, distribute and sell alcohol and non-alcohol beverages, packaged staple foods, condiments and seasonings, and household
drinking water related purification devices. Since our founding in 2011, we have primarily engaged in the wholesale distribution and
retail sale of wine and liquor products in Southern China. In the recent years, we have expanded into the non-alcohol beverage and food
markets through strategic acquisitions.

 We
currently mainly purchase and sell four categories of food and beverage and related products. Our offerings have evolved over our history
of development. Our current core lines of products include the following four categories:

 Alcohol
 beverage, including wine, liquor and spirits;

 Non-alcohol
 beverage, primarily bottled drinking water;

 Packaged
 food products, primarily including edible oil, condiments and seasonings;

 water purification products, such as whole house water filtration systems and purification solution products.

 We
manage the entire process of product procurement, warehousing, distribution, logistics, and delivery through our supply chain system.
We cultivate long-term cooperation relationships with many high-quality upstream suppliers to secure the supply demand and stable product
procurement. We continuously enhance food quality and safety standards through our quality control system and supplier development management
system. Through continuous optimization and management of supply planning, logistics management and quality assurance, we have improved
product procurement efficiency and order management capabilities.

 We
advertise and sell products using a hybrid marketing model through our supply chain platform, social media, primarily WeChat, distributor
network, key customer channels, product displays at our stores, and community promotions. We promote direct sales to business and individual
consumers on our e-commerce supply chain platform – "Fugu Online." Further, we make online or offline bulk sales through
our agents and independent distributors. Prior to the launching of our supply chain platform, the majority of our sales had been made
through independent distributors. We believe our distribution network is still an important component of our hybrid sales model. The
agent and distributor sales model helps enhance the brand awareness of our products among end customers. Furthermore, we have achieved
a substantial portion of our sales through key customer channels. We have established long-term and stable cooperative relations with
certain large enterprises. We hold periodic offline promotions, offline anniversary activities, and offer loyalty rewards to key customers.
We initiate promotions to expand our customer base and build brand awareness. As we have multiple product lines, there are many opportunities
for cross-selling across our platform as we seek to introduce customers to all product offerings. We also believe our strong reputation
is a factor in retaining and attracting customers.

 We
are on path to build a closed-loop industry supply chain system for our products. Through connecting upstream suppliers and downstream
enterprises, we have formed a supply chain network, broadened market penetration through the technology driven e-commerce platform and
services, and aligned third-party production, supply and marketing with distribution and sale to achieve cost reduction and efficiency.

 With
our deeply rooted brand image, fast and efficient multi-channel sales model, precise consumer positioning, superior service experience,
and an online platform connecting suppliers, core enterprises, and customers in the food supply chain, we are well positioned to become
a competitive leader in the food supply chain market in China.

 Corporate
History and Structure

 FVTI
was incorporated under the laws of the State of Nevada on March 21, 2014 under the name Crypto-Services, Inc. The company was originally
formed with the purpose of providing users with up-to-date information on digital currencies. On September 22, 2016, the company amended
its articles of incorporation to change its name from "Crypto-Services, Inc." to "Fortune Valley Treasures, Inc."

 On
April 11, 2018, FVTI entered into a share exchange agreement with DaXingHuaShang Investment Group Limited, a company incorporated under
the laws of the Republic of Seychelles ("DIGLS"), and its shareholders, Yumin Lin, Gaosheng Group Co., Ltd. and China Kaipeng
Group Co., Ltd, pursuant to which FVTI issued 15,000,000 shares of common stock (split-adjusted) to the shareholders of DIGLS in exchange
for 100% of the issued shares of DIGLS (the "Share Exchange"). Upon the consummation of the Share Exchange on April 19, 2018,
DIGLS became our wholly owned subsidiary.

 DIGLS
is a holding company and owns all of the equity of DaXingHuaShang Investment (Hong Kong) Limited ("DILHK"), a private company
limited by shares formed under the laws of Hong Kong. DILHK owns 100% of the equity of Qianhai DaXingHuaShang Investment (Shenzhen) Co.,
Ltd. ("QHDX"), a wholly foreign owned enterprise organized under the laws of China, which, in turn, owns 100% of the equity
of FVT Supply Chain, an operating subsidiary.

 On
March 1, 2019, FVTI entered into a share purchase agreement to acquire 100% of the shares of Jiujiu Group Stock Co., Ltd. ("JJGS"),
a company incorporated under the laws of the Republic of Seychelles, with the shareholders of JJGS in exchange for 5 shares of our common
stock (split-adjusted). Following the closing of the acquisition on March 1, 2019, JJGS became our wholly owned subsidiary. JJGS owns
all of the equity of Jiujiu (HK) Industry Limited ("JJHK"), a Hong Kong company limited by shares. JJHK owns 100% of the
equity of Jiujiu (Shenzhen) Industry Co., Ltd. ("JJSZ"), a PRC operating company engaged in retail and wholesale distribution
of alcohol beverage products.

 On
July 13, 2019, FVTI and QHDX entered into an equity interest transfer agreement, which was amended on September 12, 2019, with the controlling
shareholder of Yunnan Makaweng Wine & Spirits Co., Ltd. ("Makaweng"), a PRC limited liability company engaged in the
business of distribution of wine and beer. Pursuant to the agreement, QHDX would purchase 51% of Makaweng's equity interest from
the controlling shareholder of Makaweng in exchange for shares of FVTI common stock. On August 28, 2019, the registration of the transfer
of the 51% of equity interest of Makaweng to QHDX with local government agencies was completed. On December 3, 2020, QHDX and the controlling
shareholder of Makaweng entered into a share transfer agreement, pursuant to which the parties agreed that QHDX would transfer all of
the 51% of Makaweng equity interest back to the controlling shareholder. Upon the effectiveness of the agreement, QHDX no longer owned
an equity interest in Makaweng. FVTI has not issued any shares to the controlling shareholder and the control of Makaweng has never been
transferred to QHDX. However, the registration of the transfer of the 51% interest by QHDX to the controlling shareholder has not been
completed as of the date hereof.

 On
June 22, 2020, FVTI and QHDX entered into a share purchase agreement with Dongguan Xixingdao Technology Co., Ltd. ("Xixingdao"),
a PRC company, and the two former shareholders of Xixingdao, who collectively owned all of the equity interest in Xixingdao. Xixingdao
is engaged in the business of drinking water distribution and delivery in Dongguan City, Guangdong Province. Pursuant to the agreement,
QHDX purchased 90% of Xixingdao's equity interest from the sellers in exchange for 243,135 shares of FVTI's common stock
(split-adjusted). We obtained the control of Xixingdao and Xixingdao became our subsidiary on August 31, 2020. The shares were issued
on December 28, 2020.

 On
September 28, 2021, FVTI effected a one-for-twenty reverse stock split (referred to herein as "reverse split") of the issued
and outstanding shares of common stock, $0.001 par value, by filing a Certificate of Change with the Secretary of State of the State
of Nevada. The reverse split became effective with FINRA and in the OTC marketplace on October 21, 2021 when the common stock began trading
on a split-adjusted basis. Prior to the reverse split, FVTI was authorized to issue 3,000,000,000 shares of common stock and there were
313,098,220 shares of common stock outstanding. As a result of the reverse split, FVTI is authorized to issue 150,000,000 shares of common
stock, and there are currently 15,655,038 shares of common stock outstanding. Unless otherwise stated, all shares and per share amounts
in this report have been retroactively adjusted to give effect to this reverse stock split.

 Corporate
Structure

 The
chart below depicts the corporate structure of the Company as of the date of this report.

 Business
Plan and Recent Development

 Coronavirus
(COVID-19) Update

 In
December 2019, a novel strain of coronavirus (COVID-19) was first identified in China and has since spread rapidly globally. The outbreak
of COVID-19 has resulted in quarantines, travel restrictions, and the temporary closure of stores and business facilities globally. In
March 2020, the World Health Organization declared the COVID-19 a pandemic. In 2020, COVID-19 had a material impact on our business,
financial condition, and results of operations. including, but not limited to, the following:

 We
 temporally closed our offices in early 2020, as required by relevant PRC regulatory authorities. Our offices were subsequently reopened
 pursuant to local guidelines. In 2020, the pandemic caused disruptions in our operations and supply chains, which resulted in delays
 in the shipment of products to certain of our customers.

 A
 large number of our employees were in mandatory self-quarantine and the entire business operations of the Company halted for over
 a month from February to March 2020.

 Our
 customers were negatively impacted by the pandemic, which reduced the demand of our products. As a result, our revenue and income
 were negatively impacted in the first half of 2020.

 After
the second quarter of 2020, our business has returned to normal operations, although management assessed that our results of
operations had been negatively impacted for the 2021 and 2022 fiscal years. In 2022, the sporadic outbreaks of COVID-19 had material
impact on the industry in China. The government's "zero-COVID" policy required, from time to time, quarantines,
rolling lockdowns, office closures and travel restrictions to control outbreaks in affected local areas. As a result of the COVID
control measures, we were unable to implement some of our business and marketing plans, and our operating results were negatively
affected by the sporadic COVID outbreaks and strict government response measures. In December 2022, the PRC government ended the
implementation of the "zero-COVID" policy and the overall market condition has shown improvement since then. However,
COVID-19 could adversely affect our business and results of operations in the future if any COVID resurgence causes significant
disruptions to our operations or the business of our supply chain, logistics and service providers. We cannot predict the severity
and duration of the impact from such resurgence, if any. If any new outbreak of COVID-19 is not effectively and timely controlled,
or if government responses to outbreaks or potential outbreaks are severe or long-lasting, our business operations and financial
condition may be materially and adversely affected as a result of the deteriorating market outlook, the slowdown in regional and
national economic growth, weakened liquidity and financial condition of our customers or other factors that we cannot foresee. Any
of these factors and other factors beyond our control could have an adverse effect on the overall business environment, cause
uncertainties in the regions where we conduct business, and could materially and adversely impact our business, financial condition
and results of operations.

 Business
Plans

 One
of our business development strategies is to extend our market share through acquiring quality businesses in the food and beverage industries,
in order to increase our customer base and supply channels, as well as to acquire more skilled employees and business connections in
the industries. We plan to further develop our online marketing platform and internal operation management system by engaging an external
IT company during 2024. In 2020, we successfully acquired Xixingdao, a drinking water distribution business. We expect to continue to
explore new opportunities to acquire additional quality and compatible businesses in our industries. Our management believes that successful
acquisitions will bring synergies to our business and enhance our shareholders' value.

 We
consider the following factors when evaluating quality acquisition targets: (i) costs involved in an acquisition; (ii) financial performance
of the target; (iii) the reputation of the target in its industry; (iv) the target's existing customer base; (v) the target's
supplier network; (vi) the expertise and experience of the target's management and employees; and (vii) the inventory condition
of the target.

 Our
industry and Market

 We
obtained the industry and market data used throughout industry publications and research, studies and other similar third-party sources,
as well as our estimates based on such data. All of the market data and estimates used in this report involve a number of assumptions
and limitations, and you are cautioned not to give undue weight to such data and estimates. We believe that the data from these third-party
sources is reliable; however, we have not independently verified the data, besides our business and the industry which we are operating
is subject to a high degree of risk and uncertainties.

 Growth
in food and beverage market in China

to China Economic Vision, a research and consulting company with the research coverage mainly in China, the growth rate of food and beverage
market in China reached 6.28% in 2018 and then declined to 4.40% in 2019. The decline was mainly due to the drop in demand of liquor
products and dairy products. In 2020, the COVID-19 pandemic led to a sharp decrease in the growth rate of the industry, the market reached
RMB4,590.2 billion, and a year-over-year ("YoY") growth of 0.86%. The decrease in the growth rate was mainly due to the quarantine
measures implemented in some areas, store and office closures, lockdown and social gatherings restrictions to control the COVID-19 outbreaks
in China.

 Food
and Beverage Market Scale in China from 2016 to 2020

 China
Economic Vision estimated that, with the orderly recovery of the overall economic and the upgrading of product consumption structure,
the food and beverage industry will develop favorably in the future, but the growth rate will slow down. The food and beverage market
in China is expected to reach RMB5608.8 billion by 2025, and a YoY growth of 3.45%.

 Food
and Beverage Market Forecast in China from 2021 to 2025

 Growth
of alcohol beverage market in China

 In
2018, the growth rate of alcohol beverage market in China reached 10.68% driven by multiple factors, such as industrial restructure adjustment,
consumption upgrading, and the rapidly growth of the Baijiu (Chinese alcohol beverage) industry. In 2019, the growth rate dropped to
2.21% because the market returned to rationality which caused the decrease of Baijiu sales; the downtrend of domestic wine production
and sales; and the reduction of imported wines.

 In
2020, the alcohol beverage products market scale in China reached RMB 859.6 billion, and the YoY negative growth of 0.22%. It was mainly
due to the city lockdown order and the prohibition of social gatherings.

 Alcohol
Beverage Products Market in China from 2016 to 2020

 China
Economic Vision estimated that, although the pandemic has brought uncertainties to the alcohol beverage products market, the trend of
raising quality standard of production for the alcohol beverage products market has never changed. Alcohol consumption has gradually
changed from basic consumption to personalized and diversified high-quality consumption. With the orderly recovery of the consumption
in China, the market will continue to develop steadily in the future. The alcohol beverage products market in China is expected to reach
997.8 billion in RMB by 2025, and a YoY growth of 2.24%.

 Alcohol
Beverage Products Market Forecast in China from 2021 to 2025

 Growth
of bottled water market in China

 The
bottled water industry in China has a vigorous development in recent years. More household users have changed their drinking water habits
and demanded for high-quality drinking water, especially natural mineral water, which has been the major driver for the growth in bottled
water products (with natural mineral). The bottled water market in China reached RMB107.8 billion in 2019, with a YoY growth of 20.58%.

to China Economic Vision, a large number of companies, which were the main consumers of the bottled water market, stopped the operation
and production and reduced their use of bottled water the during the COVID-19 pandemic in 2020. In addition, to avoid the risk of spreading
the COVID-19, people are recommended to use the bottled water only without returning buckets and promoted to use one-time disposable
packaged water. These measures caused the decline in the demand for bottled water. The bottled water market in China reached RMB113.6
billion in 2020, and the YoY growth of 5.38%.

 Bottled
Water Market in China from 2016 to 2020

 Compared
with bottled water, disposable medium and large packaged water has better quality and consumption experience, and its cost is lower than
the bottled water, which is suitable for the household consumption. Based on China Economic Vision's estimate, even with the gradual
replacement of disposable medium and large packaged water, it will have a limited impact on the bottled water market in the short term,
but the growth rate of bottled water market will slow down in the long run. The bottled water market in China is expected to reach RMB223.7
billion by 2025, and the YoY growth was 14.13%.

 Bottled
Water Market Forecast in China from 2021 to 2025

 Our
Products

 We
purchase, distribute and sell a wide range of beverage and foods through our supply chain online platform and offline sales channels.
We also develop some of the water products we distribute. We have offered the following four categories of food and beverage products:

 Product
 Category

 Products

 of brands offered

 Product
 Sources

 1.
 Alcohol beverage

 Wine

 Liquor/Spirits

 Europe

 South
 America

 China

 2.
 Non-alcohol beverage

 Bottled
 Water

 China

 3.
 Packaged staple foods

 Condiments
 and seasonings

 China

 4.
 Household products

 Water
 purification system

 Water
 filtration

 China

Wine and Liquor Products

 We
offer a variety of wine products including dry red wine, dry white wine, rose wine and sweet wine. Our liquor products include imported
liquor and domestically produced spirits. We currently sell 109 different types of wine, liquor and spirits products.

 We
launched our brand "Falantu Art Winery," with the goal to cultivate a wine-centered food and art culture, advocate healthy
living, and bring romance to people's lives. Our supply chain brings together high-quality wines from most major French producing
regions and selected wine production countries. We forge alliance relationship with vineyards at French Burgundy (Bourgogne), Bordeaux
(Bordeaux), Chile's Central Valley, Spanish wineries and other high-quality wine makers. To increase our market share, we have
set up multiple branches in Guangdong, China, to promote wine sale and wine culture to Chinese consumers.

 2.
Bottled Water and Soft Beverage Products

 Our
drinking water products we sell mainly include bottled water of different sizes. The sources of our bottled water are from tap water
or extracted groundwater. In addition to selling on our supply chain platform, these different brands of bottled water are available
at supermarkets, grocery stores, other E-commerce platforms, and through the manufacturer's distributors.

 We
currently sell 36 different brands of bottled water products. In response to consumer preferences, our water products are packaged in
individual containers of difference sizes, ranging from small single serving bottles of 380 milliliter to 750 milliliters, to medium-sized
jugs of 1.5 to 5 liter and large 15 to 19 liter carboys. Below are some of branded bottled water products that have generated large sales
volume on our supply chain platform.

 3.
Pre-package Foods

 Pre-packaged
foods include various brands of condiments and seasonings.

 We
offer a variety of kitchen condiment products on the platform, and through multiple layers of screening, brands that are widely welcomed
by consumers in the Pearl River Delta region are selected.

 4.
Household drinking water purification products

sells a series drinking household water treatment systems and devices that improve water quality and healthy lifestyle. They include
whole house water purification systems and water filtration devices.

 New
Products

 We
are continuously seeking new and suitable brands of products for sales to enrich our product varieties. We have recently added several
new brands of wine and liquor products to our product portfolio. We aim to offer more high-quality wine and liquor products for our customers.
Providing a wide variety of wine and liquor products to the customers will continue to be our alcohol beverage segment operational strategies.

 Our
Operations

 We
have cultivated business relationships and achieved recognitions with different organizations over the years, which have improved our
business and management efficacy. Specifically, we have been collaborating with Shenzhen Institute of Tsinghua University since 2011,
who has been helping us develop an innovative management model, operating model and franchising model. We have been a member of Guangdong
Provincial Liquor Industry Association since 2011.

 Our
wine and oil product operations are based in Humen Town, Dongguan City. We lease a six-floor building with a total floor area of 1,200
square meters. Our wine retail store is located on the first floor which we use exclusively as a retail store and for sample products
display. We use the remaining five floors as the Company's conference room, offices and storage.

 Our
water and condiments and seasoning product management office is also located in Humen Town, Dongguan City. We lease the building which
has over 1,300 square meters. It includes sales, customer service, warehouse, delivery and finance departments. We also maintain one
registered office for the subsidiary with lease term of three years. As of December 31, 2023, the Company has total three office spaces,
one warehouse and seventeen stores in PRC with remaining lease terms ranging from 6 months to 40 months.

 Our
Supply Chain Operations

 Our
supply chain system manages the entire process of product procurement, warehousing, distribution, logistics and delivery.

 We
emphasize to provide products with high standard of food safety and quality, therefore we carefully select high quality products. We
conduct market research and supplier information review to select manufacturers and products, and carry out our own and third parties
sample testing on their products to ensure the product with high quality and safety. When we completed the selection process with satisfactory
results, we will sign a contact with the suppliers to purchase selected products from selected manufactures and seek to maintain a long-term
cooperation relationship to secure stable supply and quality control. To maintain the standard of food safety and quality, we conduct
sample checking on the products on a regular basis and evaluate the suppliers' performance annually.

 Our
Customers

 We
have two major categories of customers: retailer customers and wholesale distributors. We also make direct sales to businesses and individual
consumers through our supply chain platform, online stores at major e-commerce platforms and offline sales. For the year ended December
31, 2023 and 2022, no customer accounted for 10% or more of our total revenue. We have generated income from a wider range of customers
for the years ended December 31, 2023 and 2022.

 Competitive
Strength

 Well
recognized brand

 We
believe that our brand image and reputation give us a distinct competitive advantage among the food and beverage companies in Guangdong
Province and the Pearl Delta Region. Since the launch of our wine distribution business in 2011, we have demonstrated a strong brand
advantage in the food and beverage industry and become a well-recognized brand among consumers in the geographic areas in which we operate,
especially in Guangdong Province. In recent years, our offline sales mainly in Dongguan City, and online sales have covered major online
sales channels. With a greater brand influence and revenue growth, we are able to further strengthen our product procurement capacity.
Our growing business scale, increasingly diversified sales channels and reliable product supplies have further promoted our company's
brand awareness and influence. The strength of our brands facilitates the organic growth of customer traffic on our platform, enhances
buyer loyalty and attracts more sellers to our platform.

 Diversified
quality product portfolio

 We
have built a diversified product portfolio spanning primarily from alcohol beverage and drinking water, to pre-packaged staple foods,
condiments, and household water purification devices and systems. A diversified product mix enables us to enhance our company's
sales volume and market influence. We strive to create a one-stop shopping experience and become one of the first places for food shopping
for consumers.

 We
independently manage the core links of the food and beverage industry supply chain and achieve product quality control through supplier
access, quality inspection and other measures. Leveraging our information technology capability, we utilize our information management
platform to effectively control all links in the industry chain to achieve the full traceability of product quality.

 Efficient
product supply chain system

 We
manage the entire process of product procurement, distribution, logistics, and delivery through our supply chain system. Our supply chain
e-commerce platform is our central control hub that is facilitated by logistics management to ensure product supply and quality management
to reinforce safety and quality assurance. We continuously strengthen cooperation with reputable suppliers to form a stable and long-term
relationship and optimize procurement costs while ensuring product quality. On product source, our supply planning team, based on the
sales history and trend forecasts of various channels, analyzes and forecasts sales and supply, formulate procurement plans, and improve
procurement efficiency. We also formulate a complete product quality control system to enhance product quality assurance. Through continuous
optimization and management of supply planning, logistics management and quality assurance, we have improved product procurement efficiency
and order management capabilities while ensuring high product quality.

 Multi-channel
marketing and sales model

 We
have established a multi-channel marketing and sales model consisting of e-commerce supply chain platform, social media, primarily WeChat,
distributor network, key customer channels, product displays at our brick and mortar stores, and community promotions. Our Fugu Online
platform not only identifies potential customers and market products and services to targeted groups based on data collected through
our information systems, it also serves as our O2O management platform, which can provide marketing services to traditional merchants.
Bulk sales through our agents and independent distributors help enhance the brand awareness of our products among end customers and collect
feedback for us to improve our product selection and management. Our key customer and large enterprise sales channels, online and offline
promotions, and community activities all offer loyalty rewards to key customers. Our brand reputation and cross-selling across our platform
further strengthen our ability to retain customers and drive revenue growth.

 Best
in class customer services management

 As
a food industry enterprise, we have been focused on improving the consumer shopping experience since our establishment, have built a
customer-oriented corporate culture and best in class customer service capabilities. Combining with our own brand positioning, we promote
a corporate culture with a customer first mindset with the highest quality service as our purpose. We are committed to improving customer
satisfaction and loyalty. We improve the pre-sales and after-sales service system to enhance consumer stickiness. Further, we have established
a membership system to promote customer loyalty. We are able to conduct a more in-depth analysis of customer needs and historical buying
habits through the purchase tracking, which provides us with valuable information related to future product procurement and marketing
promotion.

 Growth
Strategies

 Diversify
our product portfolio and provide our customers with a wider range of choices

 We
believe continuous expansion of our existing product portfolio and accommodation of evolving demand and customers' preferences
will distinguish us from our competitors, while providing our customers with a wider range of choices will facilitate the broadening
of our customer base as well as reinforcing our market presence in wine industry.

 Continue
to solidify our relationships with supply chain participants

 We
intend to continue solidifying our relationship with our existing suppliers as well as identifying new suppliers. We intend to increase
our market share by diversifying our existing product portfolio and procuring products which we anticipate demand. We believe that our
strategic diversification will further complement our existing product portfolio, enhance our product mix and strengthen our market position
in the food and beverage industry in China.

 Strengthen
our corporate image by increasing marketing and promotion efforts.

 We
believe our brands and reputation are critical to our business development. To further enhance customer awareness of our brands, we will
continue our effective and targeted marketing efforts. This may include (i) placing mass media commercials, (ii) advertising in newspapers,
magazines, the internet, billboards and banners, and (iii) sponsoring programs. We also utilize innovative multimedia promotional channels
such as social media and mobile phone applications.

 Attract,
motivate and retain high-quality talent.

 Our
customer-oriented business philosophy emphases on delivering excellent customer service. We believe maintaining a positive working environment
will encourage better staff relations and talent retention, as well as enhancing the quality of our customer service by motivating staff.
In order to foster a work environment that attracts and inspires our people to achieve excellent performance, we seek to motivate and
retain valuable and talented staff by aligning compensation and remuneration with performance. As part of our continuing efforts to enhance
our customer service, we will also continue to enhance our employee training programs by developing our orientation program, coaching,
on-the-job training to enhance individual staff skills and knowledge of sales and marketing techniques, customer services, product information,
quality control and industry knowledge.

 Seek
opportunities to acquire quality companies in the food and beverage industry for further development of our company.

 One
of our key corporate strategies has been to expand our market share through acquiring quality businesses in the food and beverage industries,
in order to increase our customer base and supply channels, as well as to acquire more skilled employees and business connections in
the industries. We have previously successfully acquired Xixingdao, a drinking water distribution and delivery company. We expect to
continue to explore new opportunities to acquire additional quality and compatible businesses in our industries. Our management believes
that successful acquisitions will bring synergies to our business and increase long term value to our shareholders.

 Expand
and explore additional services and products to enrich our one-stop services to our customers.

 We
will continue to strive to provide our customers with the convenience of our one-stop shopping experience and a wide variety of unique,
quality products at reasonable and competitive prices. We believe this is one of the keys to differentiating ourselves from our competitors
in the food and beverage industry in China. To further strengthen our services, we will continue to refine our product related services
to our customers by enhancing our product consultation services, sourcing services, delivery services, and post-sale evaluation with
improved customer service and service options. With our continued expansion and dedication to exploring additional product related services
to amplify our one-stop services to our customers, we believe we can strengthen and maintain our position in the food and beverage industry
in China.

 Permission
Required From the PRC Authorities With Respect To Operations And Securities Listing And Issuance

 Permission
required for the Operations of Our PRC Subsidiaries

 Our
PRC subsidiaries are required to obtain certain permits and licenses from the PRC government agencies to operate our business in China,
including: (a) business licenses, (b) food business licenses, and (c) Electronic Data Interchange License ("EDI"). In addition,
one of our PRC subsidiaries is subject to certain certification and registration requirements in connection with limited product import
and export operations.

 We
conduct our business in China through our PRC subsidiaries. All of our PRC subsidiaries are required to obtain, and have obtained, the
required business licenses from the State Administration for Market Regulation ("SAMR"). The PRC Food Safety Law mandates
a licensing system for food production and trade and requires vendors engaging in food production or sale or catering services to obtain
a food business license in accordance with the applicable laws. Among our PRC subsidiaries, the following thirteen companies are required
to obtain food business licenses and have received such licenses pursuant to the PRC Food Safety Law: FVT Supply Chain, Xixingdao, Dongguan
City Fu La Tu Trade Co., Ltd. ("FLTT"), Dongguan City Fu Xin Gu Trade Co., Ltd. ("FXGT"), Dongguan City Fu Lai
Food Co., Ltd. ("FLFL"), Dongguan City Fu Xin Technology Co., Ltd. ("FXTL"), Dongguan City Fu Xiang Technology
Co., Ltd ("FGTL"), Dongguan City Fu Ji Food & Beverage Co., Ltd. ("FJFL"), Dongguan City Fu Yi Beverage Co.,
Ltd. ("FYBL"), Dongguan City Fu Jing Technology Co., Ltd. ("FJTL"), Dongguan City Fu Sheng Drinking Water Co.
Ltd. ("FSWL"), Dongguan City Fu Jia Drinking Water Co., Ltd. ("FJWL"), and Shenzhen Fu Jin Trading Technology
Co., Ltd. ("FJSTL"). Therefore, these thirteen subsidiaries have the required government permits to engage in food purchase
and sale activities. However, a food business license is not required for the sale of edible agricultural products and prepacked food.
Companies engaged in the sale of prepacked food must report to the food safety regulatory agencies of the local government for recordation.
Eight of our subsidiaries, Dongguan City Fu Zhi Gu Trade Co., Ltd. ("FZGT"), Dongguan City Chang Fu Trade Co., Ltd. ("CFT"),
Dongguan City La Tong Trade Co., Ltd. ("LTT"), Dongguan City Kai Fu Trade Co., Ltd. ("KFT"), Dongguan City Fu
Guan Healthy Industry Technology Co., Ltd. ("FGHL"), Dongguan City Fu Xi Drinking Water Co., Ltd. ("FXWL"), Dongguan
City Fu Li Trading Co., Ltd. ("FLTL") and Dongguan City Fu Gu Supply Chain Group Co., Ltd. ("FGGC" or "FG
Supply Chain"), are subject to such reporting requirement and are in the process of completing the recordation procedure. Guangdong
provincial government has not issued detailed implementation rules, and as such, changes in rules and regulations may impose additional
requirements for our subsidiaries in China.

 The
relevant PRC Telecommunications Regulations require a telecommunication service provider in China to obtain an operating license from
the Ministry of Industry and Information Technology, or MIIT, or its provincial counterparts, prior to commencement of operations. Our
subsidiary, FVT Supply Chain, engages in food, beverage and related product purchases and sales via its online platform. As a provider
of online data processing and transaction processing services, FVT Supply Chain is required to obtain an Electronic Data Interchange
(EDI) license and has obtained the EDI license. The relevant PRC regulations, including the Classification Catalogue of Telecommunications
Services, are still evolving, and there have been limited guidance and interpretation with respect to the scope of various types of telecommunication
services. We may be subject to additional license requirements if we further expand our online operations and services.

 FVT
Supply Chain is subject to certain certification and registration requirements in connection with its limited product import and export
operations. FVT Supply Chain has applied and obtained the relevant certificates and government approvals, including the Record Registration
Form for Foreign Trade Business Operators, Customs Declaration Entity Registration Certificate, and Filing Form for Enterprises Applying
for Entry-Exit Inspection for the importing and exporting of certain categories of wines. If FVT Supply Chain is unable to obtain the
requisite certificates and approvals, the PRC Customs would not perform the Customs declaration, acceptance and release procedures, and
the limited product import and export operations conducted by FVT Supply Chain would be delayed, halted or otherwise materially adversely
affected.

 In
addition, on November 14, 2021, the CAC published the Regulations of Network Data Security Management (Draft for Comments) (the "Draft
Regulations on Network Data Security Management"), which further regulate the internet data processing activities and emphasize
the supervision and management of network data security, and further stipulate the obligations of internet platform operators, such as
us, to establish a system for disclosure of platform rules, privacy policies and algorithmic strategies related to data. The draft regulations
require data processors to (i) adopt immediate remediation measures when finding that network products and services they use or provide
have security defects and vulnerabilities, or threaten national security or endanger public interest, and (ii) follow a series of detailed
requirements with respect to processing of personal information, management of important data and proposed overseas transfer of data.
As of the date of this report, the draft regulations have not been adopted and the final provisions are subject to changes. If the above
proposed regulations are adopted as proposed, based on our initial evaluation, while we have implemented some of the data security measures,
we would not be in full compliance with the new draft regulations. We are also still evaluating any additional necessary actions we should
take pursuant to the proposed regulations to satisfy the personal information protection and internet data security regulatory requirements.
Failure to comply with the effective cybersecurity, data privacy and internet data security regulatory requirements in a timely manner
may subject us to government enforcement actions and investigations, fines, penalties, suspension or disruption of our operations, among
other things.

 On
December 28, 2021, the CAC, NDRC, and other government agencies jointly issued the final version of the Revised Measures for Cybersecurity
Review, or the Revised Cybersecurity Measures, which took effect on February 15, 2022 and replaced the previously issued Revised Measures
for Cybersecurity Review. Under the Revised Cybersecurity Measures, an "online platform operator" in possession of personal
data of more than one million users must apply for a cybersecurity review if it intends to list its securities on a foreign stock exchange.
The operators of critical information infrastructure purchasing network products and services, and the online platform operators (together
with the operators of critical information infrastructure, the "Operators") carrying out data processing activities that
affect or may affect national security, shall conduct a cybersecurity review, and any online platform operator who controls more than
one million users' personal information must go through a cybersecurity review by the cybersecurity review office if it seeks to
be listed in a foreign country. Pursuant to the Revised Cybersecurity Measures, we don't believe we will be subject to the cybersecurity
review by the CAC, given that (i) we possess personal information of a relatively small number of users in our business operations as
of the date of this report, significantly less than the one million user threshold set for a data processing operator applying for listing
on a foreign exchange that is required to pass such cybersecurity review; and (ii) data processed in our business does not have a bearing
on national security and thus shall not be classified as core or important data by the authorities. We don't believe that we are
an Operator within the meaning of the Revised Cybersecurity Measures, nor do we control more than one million users' personal information,
and as such, we should not be required to apply for a cybersecurity review under the Revised Cybersecurity Measures. However, in view
of the fact that the Revised Cybersecurity Measures was released recently and there is a general lack of guidance and substantial uncertainties
exist with respect to their interpretation and implementation. For example, there is still no clear definition of "online platform
operator." Whether the data processing activities carried out by traditional enterprises (such as food, medicine, manufacturing,
and merchandise sales enterprises) are subject to such review and the scope of the review remain to be further clarified by the regulatory
authorities in the subsequent implementation process.

 With
regard to the current effective data security management regulations, we don't believe that we are required to conduct data security
review for listing overseas. However, according to the Draft Regulations on Network Data Security Management, as an overseas listed company,
we will be required to conduct an annual data security review and to comply with the relevant reporting obligations. We have been closely
monitoring the development in the regulatory landscape in China, particularly regarding the requirement of approvals, including on a
retrospective basis, from the CSRC, the CAC or other PRC authorities with respect to securities issuances or overseas listing, as well
as regarding any annual data security review or other procedures that may be imposed on us. If any approval, review or other procedure
is in fact required, we cannot assure you that we will be able to obtain such approval or complete such review or other procedure timely
or at all. For any approval that we may be able to obtain, it could nevertheless be revoked and the terms of its issuance may impose
restrictions on our operations and offerings relating to our securities. The regulatory requirements with respect to cybersecurity and
data privacy are constantly evolving and can be subject to varying interpretations, and significant changes, resulting in uncertainties
about the scope of our responsibilities in that regard. Failure to comply with the cybersecurity and data privacy requirements in a timely
manner, or at all, may subject us to government enforcement actions and investigations, fines, penalties, suspension or disruption of
our operations, among other things. See "Risk Factors — Risks Related to Our Business and Industry — We may be unable
to obtain or renew required permits, licenses or approvals necessary for our business operations, and could be imposed with fines and
penalties for any violations of the license requirements"; " Risk Factors — Risks Related to Doing Business
in China — The Chinese government may intervene or influence the operations of our PRC subsidiaries and exercise significant
oversight and discretion over the conduct of their business and may intervene in or influence their operations at any time, which could
result in a material change in operations of our PRC subsidiaries and/or the value of our common stock"; and " Risk Factors
— Recent regulatory developments in China, including greater oversight and control by the CAC over data security, may subject
us to additional regulatory review, and any actions by the Chinese government to exert more oversight and control over foreign investment
in China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors
and cause the value of such securities to significantly decline or be worthless. "

 Permission
Required With Respect To Securities Listing And Issuance

 We
are subject to PRC rules and regulations relating to overseas listing and securities offerings, and a substantial extension of the PRC
government's oversight over our business operations or overseas listings may hinder our ability to offer or continue to offer our
securities. We believe that neither we nor our PRC subsidiaries are required to obtain any permission from the CSRC, the CAC, or any
other PRC authorities for us to issue securities to investors or to list our securities on overseas stock exchanges, such as the Nasdaq.
We have not submitted any application to the CSRC, the CAC or other PRC authorities for the approval of securities issuance, including
this offering, or the Nasdaq listing. As of the date of this report, we and our PRC subsidiaries have not received any inquiry, notice,
warning or objection in relation to our stock issuances or trading or Nasdaq listing from the CSRC, the CAC or any other PRC authorities.
We have been closely monitoring regulatory developments in China regarding any necessary approvals from the CSRC, the CAC or other PRC
governmental authorities required for securities offerings and overseas listings.

 On
August 8, 2006, six PRC regulatory agencies, including the Ministry of Commerce, the State-owned Assets Supervision and Administration
Commission, the State Administration for Taxation, the State Administration for Industry and Commerce, CSRC and the State Administration
for Foreign Exchange ("SAFE"), jointly issued the Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign
Investors (the "M&A Rule"), effective on September 8, 2006 and amended on June 22, 2009. The M&A Rule requires that
an offshore special purpose vehicle ("SPV") formed for listing purposes and controlled directly or indirectly by Chinese
companies or individuals shall obtain the approval of the CSRC prior to the listing and trading of such SPV's securities on an
overseas stock exchange. On September 21, 2006, the CSRC published procedures specifying documents and materials required to be submitted
to it by an SPV seeking CSRC approval of overseas listings. However, the provisions of the M&A Rule remain ambiguous as to the scope
and applicability of the CSRC approval requirement. The CSRC has not issued any definitive rule or interpretations. Based on the current
PRC law, rules and regulations, our Chinese legal counsel, Grandall Law Firm, is of the opinion that the M&A Rule and related regulations
do not require the Company or PRC subsidiaries to obtain prior approval from CSRC for the listing and trading of our shares on an overseas
securities market, given that our wholly foreign-owned enterprise subsidiaries were established by direct investment, rather than by
a merger with or an acquisition of any PRC domestic companies as defined under the M&A Rule. However, there remains uncertainty as
to how the M&A Rules will be interpreted or implemented, and the opinions of our PRC counsel are subject to any new laws, rules and
regulations or detailed implementations and interpretations in any form relating to the M&A Rules. We cannot assure you that the
relevant Chinese government agencies, including the CSRC, will reach the same conclusion.

 On
July 6, 2021, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council
jointly issued the Opinions on Severely Cracking Down on Illegal Securities Activities According to Law, or the Opinions. The Opinions
emphasize the need to strengthen the administration over illegal securities activities and the supervision over overseas listings by
Chinese companies. Effective measures, such as promoting the construction of relevant regulatory systems, will be taken to address risks
and incidents of China-based companies that are listed overseas, cybersecurity issues, data privacy protection requirements and other
similar matters. As of the date of this report, no official guidance or related implementation rules have been issued, and our PRC counsel
is of the opinion that this offering does not constitute illegal securities activities under the Opinions. In addition, the Company has
obtained all requisite licenses and operational permits and none of our permits has been denied. Notwithstanding the forgoing, there
are still uncertainties as to how the Opinions will be interpreted and implemented by the relevant PRC governmental authorities.

 In
addition, on December 28, 2021, the CAC, the National Development and Reform Commission ("NDRC"), and several other governmental
agencies jointly issued the Revised Cybersecurity Measures, which took effect on February 15, 2022. Under the Revised Cybersecurity Measures,
an "online platform operator" in possession of personal data of more than one million users must apply for a cybersecurity
review if it intends to list its securities on a foreign stock exchange. The operators of critical information infrastructure purchasing
network products and services, and the online platform operators (together with the operators of critical information infrastructure,
the "Operators") carrying out data processing activities that affect or may affect national security, shall conduct a cybersecurity
review, and any online platform operator who controls more than one million users' personal information must go through a cybersecurity
review by the cybersecurity review office if it seeks to be listed in a foreign country.

 Further,
the CAC released the Draft Regulations on Network Data Security Management in November 2021 for public comments, which among other things,
stipulates that a data processor listed overseas must conduct an annual data security review by itself or by engaging a data security
service provider and submit the annual data security review report for a given year to the municipal cybersecurity department before
January 31 of the following year. If the Draft Regulations on Network Data Security Management are enacted in the current form, we, as
an overseas listed company, would be required to carry out an annual data security review and comply with the relevant reporting obligations.

 Under
the data security regulations currently in effect, we don't believe that we are required to conduct data security review for listing
overseas. However, according to the Draft Regulations on Network Data Security Management, as an overseas listed company, we would be
required to conduct an annual data security review and to comply with the relevant reporting obligations. We have been closely monitoring
the development in the regulatory landscape in China, particularly regarding the requirement of approvals, including on a retrospective
basis, from the CSRC, the CAC or other PRC authorities in relation to this offering, as well as regarding any annual data security review
or other procedures that may be imposed on us. If any approval, review or other procedure is in fact required, we cannot assure you that
we will be able to obtain such approval or complete such review or other procedure timely or at all. For any approval that we may be
able to obtain, it could nevertheless be revoked and the terms of its issuance may impose restrictions on our operations and/or securities
offerings. The PRC regulatory requirements with respect to cybersecurity and data security are constantly evolving and can be subject
to varying interpretations and significant changes, resulting in uncertainties about the scope of our responsibilities in that regard.
Failure to comply with these cybersecurity and data privacy requirements in a timely manner, or at all, may subject us to government
enforcement actions and investigations, fines, penalties, suspension or disruption of our operations, among other things.

 On
December 24, 2021, the CSRC issued the Administrative Provisions of the State Council Regarding the Overseas Issuance and Listing of
Securities by Domestic Enterprises (the "Draft Administrative Provisions") and the Measures for the Overseas Issuance of
Securities and Listing Record-Filings by Domestic Enterprises (Draft for Comments) (the "Draft Filing Measures"), collectively,
the Draft Overseas Listing Rules. The Draft Overseas Listing Rules require that companies applying for overseas securities issuance,
listing, and post-listing capital operations, including IPO, multi-listing, spin-off listing, SPAC, refinancing, issuance for asset acquisitions,
equity incentives, changes of control and certain other transactions, shall be subject to statutory procedures, such as filing and information
reporting requirement.

 On
February 17, 2023, the CSRC issued the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Enterprises,
or the Trial Measures, and five application guidelines (collectively, the "Overseas Listing Rules"), which became effective
on March 31, 2023. According to the Overseas Listing Rules, among other things, after making initial applications with overseas stock
markets for offerings or listings, all China-based companies shall file with the CSRC within three business days. Subsequent securities
offerings of an issuer in the same overseas market where it has previously offered and listed securities shall be filed with the CSRC
within three business days after the offering is completed. Subsequent securities offerings and listings of an issuer in other overseas
markets than where it has offered and listed shall be filed with the CSRC within three business days after the applications are made.
In addition, overseas offerings and listings are prohibited for such China-based companies when any of the following applies: (a) where
such securities offering and listing is explicitly prohibited by provisions in PRC laws, administrative regulations and relevant state
rules; (b) where the intended securities offering and listing may endanger national security as reviewed and determined by competent
authorities under the State Council in accordance with law; (c) where the domestic company intending to make the securities offering
and listing, or its controlling shareholders and the actual controller, have committed crimes such as corruption, bribery, embezzlement,
misappropriation of property or undermining the order of the socialist market economy during the latest three years; (d) where the domestic
company intending to make the securities offering and listing is suspected of committing crimes or major violations of laws and regulations,
and is under investigation according to law, and no conclusion has yet been made thereof; (e) where there are material ownership disputes
over equity held by the domestic company's controlling shareholder or by other shareholders that are controlled by the controlling
shareholder and/or actual controller. The Overseas Listing Rules further stipulate that a fine between RMB 1 million and RMB 10 million
may be imposed if a company fails to fulfill the filing requirements with the CSRC or conducts an overseas offering or listing in violation
of the Overseas Listing Rules.

 Overseas
offerings and listings subject to the Overseas Listing Rules include direct and indirect offerings and listings. Where an enterprise
whose principal business activities are conducted in PRC seeks to issue and list its shares in the name of an overseas enterprise based
on equity ownership, assets, income or other similar rights and interests of an PRC domestic enterprise, such activities are defined
as an indirect overseas offering and listing under the Overseas Listing Rules.

to the Notice on the Filing Management Arrangements for Overseas Offerings and Listings by Domestic Companies published by the CSRC on
February 17, 2023, existing listed companies are not required to make any filings until they conduct a new offering or financing transaction
in the future. A company is regarded as an existing listed company if it (a) has already completed overseas listing or offering, or (b)
has already obtained the approval for the offering or listing from overseas securities regulatory authorities or stock exchanges but
has not completed such offering or listing before the effective date of the Overseas Listing Rules and also completes the offering or
listing before September 30, 2023. On the effective date of the Overseas Listing Rules, PRC companies that have already submitted offering
and listing applications but have not yet obtained the approvals from overseas securities regulators or exchanges shall make filings
with the CSRC at a reasonable time before the completion of the offerings or listings. For those that have already obtained CSRC's
approvals for overseas listings or offerings may continue their process without additional filings but shall make the filing pursuant
to the Overseas Listing Rules if they cannot complete the offering or listing before the expiration of the original approval from CSRC.

 As
of the date of this report, the Overseas Listing Rules have not impacted our ability to conduct our business or trade our securities
at an overseas securities market. The listing of our shares on the Nasdaq and related securities offering should be deemed as an indirect
overseas offering and listing under the Overseas Listing Rules and therefore we are required to complete the filing procedures and submit
the relevant information to CSRC but no CSRC approval is required under the rules. However, there is uncertainty with respect to whether
we are required to obtain permissions from a governmental agency for our operations and/or listings.

 If
the CSRC, CAC or any other governmental agency requires that we obtain their respective approval(s) for our securities issuances or overseas
listing, securities offerings would be delayed until we have obtained such approval. There is also the possibility that we may not be
able to obtain or maintain such approval or that we inadvertently concluded that such approval was not required. If we do not receive
or maintain required permissions or approvals, inadvertently conclude that such permissions or approvals are not required, or applicable
laws, regulations, or interpretations change and we are required to obtain such permissions or approvals in the future, we may face regulatory
actions, investigations, disruption of our subsidiaries' operations, or other sanctions from the CSRC, CAC or other Chinese regulatory
authorities. These authorities may impose fines and penalties upon our subsidiaries' operations in China, limit our operating privileges
in China, delay or restrict the repatriation of the proceeds from this offering into China, or take other actions that could have a material
adverse effect upon our business, financial condition, results of operations, reputation and prospects, as well as the trading price
of our common stock. The CSRC, CAC or other Chinese regulatory agencies may also take actions requiring us, or making it advisable for
us, to terminate this offering prior to closing. Any failure of us to fully comply with new or changed regulatory requirements may significantly
limit or completely hinder our ability to offer or continue to offer the common stock, causing significant disruption to our business
operations, severely damage our reputation, materially and adversely affect our financial condition and results of operations and cause
the common stock to significantly decline in value or become worthless. See "Risk Factor — " The Chinese government
may intervene or influence our operations at any time, or may exert more control over offerings conducted overseas and/or foreign investment
in China-based issuers, which could result in a material change in our operations and/or the value of the securities we are registering
for sale"; "Risk Factor — The Chinese government may intervene or influence the operations of our PRC subsidiaries
and exercise significant oversight and discretion over the conduct of their business and may intervene in or influence their operations
at any time, which could result in a material change in operations of our PRC subsidiaries and/or the value of our common stock";
and "Risk Factor — Recent regulatory developments in China, including greater oversight and control by the CAC over data
security, may subject us to additional regulatory review, and any actions by the Chinese government to exert more oversight and control
over foreign investment in China-based issuers could significantly limit or completely hinder our ability to offer or continue to offer
securities to investors and cause the value of such securities to significantly decline or be worthless."

 Marketing
and Sales

 China
is a country with both an ancient wine tradition and a new and an emerging wine-consuming market. Wine production in China has thousands
of years of history. Today, China is also an emerging wine-producing nation in its own right with brands such as Great Wall, Changyu
and Dynasty. Local wines account for 80 percent of wine consumed in China. According to The International Wine and Spirit Record (the
"IWSR"), China is one of the fastest-growing wine markets in the world, with rising personal incomes driving an enhancement
of tastes and consumption levels. In 2017, the wine consumption per capita was only about 1.2 liters accounting for less than 1/3 of
the global total as well as 1/10 of the U.S. consumption. Therefore, we believe there are great potential for growth in the Chinese wine
market.

 We
use a hybrid marketing model through our supply chain platform, social media (primarily WeChat), distributor network, key customer channels,
product displays at our physical stores, and community promotions.

 We
promote direct sales to businesses and individual consumers on our e-commerce supply chain platform, "Fugu Online". Fugu
Online platform identifies the customers 'consumption habits and present relevant products to targeted customers through the information
system.

 Fugu
Online also serves as our O2O management platform, which can provide marketing services to traditional merchants such as supermarkets,
retail stores, hotels and restaurants. Fugu Online provides weekly sales flyers, highlight our products offering and special deals.

 Furthermore,
Fugu Online platform enable the users to become our suppliers which encourage suppliers initiatively to join us and enlarge our supplier
base. To ensure the safety and quality of food, we request the suppliers provide qualified certification for their products. We also
have our own supply chain system and quality control to verify the safety of product for our customers. Through the operation of online
platform, we diversify the product type on our platform and strengthen the customers' confidence in our products.

 We
also maintain a "Fugu Online" WeChat mini-program through which we include mobile coupons and customized offers based on
the user's preferences. The WeChat platform serves a wide variety of business types of different sizes, such as B2C and B2B companies,
in addition to individual consumers.

 The
following showcases the programming interfaces of our Fugu Online WeChat mini-program:

 We
launched our Fugu Online on WeChat in April 2021. During the year of 2023, we recorded 531 sales orders through the Fugu Online
platform with an average sales amount of RMB15,000 per order. Although the Fugu Online platform is developed and launched since
April 2021, the sales amounts generated and the users (registered active consumers) are still in start-up status as the market
competitive with local online WeChat mini-program, and Pingduoduo (Nasdaq: PDD) etc., the operating data's haven't
reached our planning as it's require more funds for promoting, advertising and developing.

 We
make online or offline bulk sales through our agents and independent distributors. Prior to the launch of our supply chain platform,
the majority of sales had been made through independent distributors. We believe our distribution network is an important component of
our hybrid sales model because it utilizes the resources and personal connections among our independent distributors and their retail
customers. Such a sales model helps to enhance the brand awareness of our products among end-customers and collect feedbacks to improve
our merchandise selection process and management method.

 Further,
we have achieved a substantial portion of sales through key customer channels. We have established long-term and stable cooperative relations
with certain large enterprises by carry out offline promotions, offline anniversary activities, and offer loyalty rewards to key customers.
We initiate promotions to expand our customer base and build brand awareness. As we have multiple product lines, there are many opportunities
for cross-selling across our platform as we seek to introduce customers to other offerings. We also believe our strong reputation is
a factor in retaining and attracting customers.

 We
also seek to expand our sales into the international food supply chain markets and are in the process of establishing our online store
on the Amazon platform targeting the food supply and distribution markets outside of China. We engaged a third-party consultant to assist
with marketing and sales strategies to further increase our sales. In addition to other online sales channels, we also promote our product
sales on major e-commerce platforms in China, such as Tao.1688.com and Pinduoduo.

 Competition

 France
still dominates the Chinese wine market with a share of 48 per cent according to Euromonitor International. The best sales in
Chinese supermarkets are imported wines from RMB60-180, or approximately $9.00 - $27.00 per bottle. One major challenge is that Chinese
consumers switch from one brand to another rather quickly, exhibiting little brand loyalty. Online sales particularly enable the consumers
to source and purchase budget wines. Management believes that wineries will most benefit from growth in China will be those that demonstrate
patience, professional service while building brand awareness and a long-term strategy to develop the market with their Chinese partners.

 For
our Company, there are two major competitors in our market, Aussino Liquor and ASC Fine Wines. These companies are well established,
more recognized and well accepted by consumers in China.

 Food
and Beverage Supply Chains

 We
compete with two types of food supply chain companies, including those carrying all-inclusive food products and those focusing on certain
categories of product offerings. Some of our major competitors in supply chain industry are ShuHai Supply Chain Solutions, Wujiu.com,
Meicai.com, Kuailujinhuo and Shenzhen Farmgirl Supply Chain.

 ShuHai
Supply Chain Solutions provides comprehensive food supply chain services for food enterprises and retail customers. Shuhai has modern
cooling logistics centers, food processing factories and other operation bases. With its strengths in the areas of clean vegetable production
industry standardization, Shuhai is recognized by the industry and customers as a benchmark enterprise in the food supply chain industry.

 Wajiu.com
is a subsidiary of Beijing Wajiu E-Commerce Co., Ltd., a cross-border B2B trading website for beverages. It operates a B2B platform for
foreign wineries and China domestic wine distribution channels based on an "overseas direct procurement + cross-border supply chain
+ warehousing lo business is to connect the upstream global winery suppliers with the downstream Chinese and foreign small and medium
wholesalers and retailers.

 Meicai.com
is an F2B (farm-to-business) fresh produce supply chain company providing one-stop food ingredient procurement services to restaurants
throughout China. Built on a self-serving model and a cooling logistics network, the company provides restaurants with an all-category
raw material and ingredient procurement service. It shortens the circulation of agricultural products, reduces prices from the source
to the end user, lower the supply chain costs of merchants, and reduces the risk of farmers' losses.

 Kuailujinhuo
is a matching platform that provides catering merchants with the purchase service with regards to rice, noodles, grains, edible oils,
tableware, tissues and other commodities. Kuailu cooperates with local warehousing companies to utilize their warehousing facilities.
The suppliers deliver merchandise to the front-end warehouse, and after sorting and loading the order, they cooperate with local logistics
or distribution service providers to deliver the orders to the restaurant.

 Founded
in December 2014, Shenzhen Farmgirl Supply Chain is a nationwide agricultural B2B trading platform. Mainly serving Shenzhen and Guangzhou,
its main products include vegetables, fruits, meat, frozen products, aquatic seafood, dry foods and seasoning ingredients. It h marketing
teams, and cooperates with food production bases and large wholesale markets to ensure the quality of the vegetables exported.

 Cash
Flows, Dividends and Other Asset Transfers between the U.S. Holding Company and Our Subsidiaries

 Cash
may be transferred within our organization in the following manners: (i) we may transfer funds to our PRC subsidiaries by way of capital
contributions or loans, through intermediate holding companies, such as our Hong Kong subsidiaries; (ii) we or our intermediate holding
companies may provide loans to our PRC operating subsidiaries directly and vice versa; and (iii) our PRC subsidiaries may make dividends
or other distributions to us through our intermediate holding subsidiaries.

 We
are a holding company with no material operations of our own and do not generate any revenue. We currently conduct substantially all
of our operations through our PRC operating subsidiaries, QHDX and Xixingdao, and their subsidiaries. We are permitted under PRC laws
and regulations to provide funding to PRC subsidiaries through loans or capital contributions, only if we satisfy the applicable PRC
government registration and approval requirements. Any loans from us or our holding subsidiaries outside of China to our PRC subsidiaries,
which are treated as FIEs under PRC law, are subject to PRC regulations and foreign exchange loan registration requirements.

 Under
Nevada law, we may pay dividends to our shareholders subject to our ability to service our debts as they become due and provided that
our assets will exceed our liabilities after the payment of such dividends. As a holding company, we may rely on dividends and other
distributions on equity paid by our subsidiaries for our cash and liquidity requirements, including funds necessary to pay dividends
and other cash distributions to our shareholders or investors, or service any debt we may incur outside of China and pay our expenses.
If any of our subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt may restrict their ability
to pay dividends to us. To the extent cash or assets in the business is in the PRC or Hong Kong or a PRC or Hong King subsidiary, the
cash or assets may not be available to fund operations or for other use outside of the PRC or Hong Kong due to interventions in or the
imposition of restrictions and limitations on our or our subsidiaries' ability by the PRC government to transfer cash or assets.
Under the PRC laws and regulations, our PRC subsidiaries may pay dividends only out of their respective accumulated after-tax profits
as determined in accordance with PRC accounting standards and regulations. In addition, each of our PRC subsidiaries is required to set
aside at least 10% of its accumulated after-tax profits each year, after making up for previous year's accumulated losses, to fund
certain statutory reserve funds, until the aggregate amount of such funds reaches 50% of its registered capital. At its discretion, a
subsidiary may allocate a portion of its after-tax profits based on PRC accounting standards to discretional funds. These reserve funds
and discretional funds are prohibited from being distributed to their shareholders as dividends. As of the date of this report, there
are no restrictions or limitations imposed by the Hong Kong government on the transfer of capital within, into and out of Hong Kong (including
funds from Hong Kong to the PRC), except for transfer of funds involving money laundering and criminal activities.

 Remittance
of funds by our subsidiaries out of China is subject to examination by the banks designated by SAFE and declaration and payment of withholding
tax. Cash dividends, if any, on our common stock will be paid in U.S. dollars. The PRC government also imposes restrictions on the conversion
of RMB into foreign currencies and the remittance of currencies out of the PRC. Foreign exchange transactions under the capital account
remain subject to limitations and require approvals from, or registration with, SAFE and other relevant PRC governmental authorities.
As such, we may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency for
the payment of dividends from our profits, if any. In addition, there can be no assurance that the PRC government will not intervene
or impose additional restrictions on our ability to transfer cash or assets within our organization or to foreign investors, which could
result in an inability or prohibition on making transfers or distributions outside of PRC, which may adversely affect our business, financial
condition and results of operations.

 If
we are deemed by the PRC tax authorities as a PRC tax resident enterprise for tax purposes, any dividends we pay to our non-PRC resident
shareholders and gains received by our non-PRC stockholders from sale of our shares may be regarded as China-sourced income and as a
result, may be subject to PRC withholding tax at a rate of up to 10.0%. Pursuant to the Arrangement between Mainland China and the Hong
Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, or the Double Tax Avoidance Arrangement,
the 10% withholding tax rate may be reduced to 5% if a Hong Kong resident enterprise owns no less than 25% of a PRC entity. However,
the 5% withholding tax rate does not automatically apply and certain requirements must be satisfied, including, without limitation, that
(a) the Hong Kong entity must be the beneficial owner of the relevant dividends; and (b) the Hong Kong entity must directly hold no less
than 25% share ownership in the PRC entity during the 12 consecutive months preceding its receipt of the dividends. In practice, a Hong
Kong entity must obtain a tax resident certificate from the Hong Kong tax authority to apply for the 5% lower PRC withholding tax rate.
As the Hong Kong tax authority will issue such a tax resident certificate on a case-by-case basis, we cannot be certain that we will
be able to obtain the tax resident certificate from the relevant Hong Kong tax authority and enjoy the preferential withholding tax rate
of 5% under the Double Taxation Arrangement with respect to any dividends to be paid by our WFOE, QHDX, to our Hong Kong subsidiary.
Our WFOE currently does not have any plan to declare and pay dividends, and we have not applied for the tax resident certificate from
the relevant Hong Kong tax authority. Our Hong Kong subsidiary will apply for the tax resident certificate when our WFOE plans to declare
and pay dividends.

 The
following discussions illustrate taxes we would hypothetically be required to pay in China, assuming that: (i) our PRC subsidiaries have
taxable earnings, and (ii) they determine to pay dividends in the future:

 Taxation Scenario Statutory Tax and Standard Rates

 Hypothetical pre-tax earnings

 %

 Tax on earnings at statutory rate of 25% (2)

 (25
)%

 Net earnings available for distribution

 %

 Withholding tax at standard rate of 10% (3)

 (7.5
)%

 Net distribution to Parent/Shareholders

 67.5
 %

 Notes:

 (1)

 For
 purposes of this example, the tax calculation has been simplified. The hypothetical book pre-tax earnings amount, not considering
 timing differences, is assumed to equal taxable income in China. For income tax purposes, our PRC subsidiaries file income tax returns
 on a separate company basis.

 (2)

 All
 of our PRC subsidiaries qualify for the preferential income tax rate of 5% for small-scale and low-profit enterprises in China. However,
 such rates are subject to qualification, are temporary in nature, and may not be available in the future when distributions are paid.
 For purposes of this hypothetical example, the table above reflects a maximum tax scenario under which the full statutory rate would
 be effective.

 (3)

 The
 PRC Enterprise Income Tax Law imposes a withholding income tax of 10% on dividends distributed by a foreign invested enterprise,
 or FIE, to its immediate holding company outside of China. Pursuant to the Arrangement between Mainland China and the Hong Kong Special
 Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, or the Double Tax Avoidance Arrangement, a
 lower withholding income tax rate of 5% is applied, subject to a qualification review at the time of the distribution. For purposes
 of this hypothetical example, the table above assumes a maximum tax scenario under which the full withholding tax would be applied.

 As
of the date of this report, we have not made any cash transfers, capital contributions or loans to any of our subsidiaries. Any loans
from us or our holding subsidiaries outside of China to our PRC subsidiaries, which are treated as FIEs under PRC law, are subject to
PRC regulations and foreign exchange loan registrations. Such loans to our FIE subsidiaries to finance their activities must be registered
with the SAFE, or its local counterparts, or filed with SAFE in its information system. Funds are transferred among our PRC subsidiaries
for working capital purposes, primarily between our WFOE subsidiary, QHDX, and our operating subsidiaries. As advised by our PRC counsel,
PRC laws and regulations, as well as judicial interpretations thereof, do not prohibit using cash generated from one subsidiary to fund
another subsidiary's operations by way of short-term interest free loans. The transfer of funds among our subsidiaries are subject
to the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending
Cases (2020 Revision, the "Provisions on Private Lending Cases") issued on August 20, 2020, which are applicable to financing
activities among individuals, legal entities and unincorporated organizations. We have not been notified of any other restriction which
could limit our PRC subsidiaries' ability to transfer cash to other PRC subsidiaries. In addition, QHDX has maintained cash management
policies which dictate the corporate approvals and procedure with respect to cash transfers with other PRC subsidiaries. QHDX conducts
review and management of its subsidiaries' cash transfers and reports to its board of directors. The funds are transferred among
our PRC subsidiaries mainly for two purposes, including capital injections for working capital and intercompany advances. For capital
injections, funds are transferred based on shareholders' resolutions and related corporate approval documents. Intercompany advances
are mainly for short term borrowings between our subsidiaries. Once the borrowing subsidiary has a surplus, it will repay the funds to
its WFOE shareholder or other PRC subsidiaries. All cash transfer requests must be (a) first reported to and reviewed by the head of
the Finance/Accounting Department at QHDX and the relevant PRC subsidiary's chief executive officer, and (b) then be approved by
the Chief Financial Officer and Chairman of QHDX. If the transfer amount is material, the transfer must be approved by all directors
of QHDX. Other than QHDX, neither us nor other subsidiaries have cash management policies dictating how funds are transfer, provided
each entity must comply with applicable law or regulations with respect to transfer of funds, dividends and distributions. In the future,
cash proceeds raised from overseas financing activities, including this offering, may be transferred by us to our Hong Kong subsidiaries
and PRC subsidiaries via capital contributions or shareholder loans.

 The
following table describes transfers among us and our subsidiaries made during the periods presented:

 For the years ended December 31

 2023

 2022

 RMB

 RMB

 Capital contributions from us to our offshore subsidiaries (1)

 -

 -

 Loans from us to our offshore subsidiaries

 -

 -

 Capital contributions from our offshore subsidiaries or WFOEs to PRC operating subsidiaries

 323,000

 248,500

 Loans from our WFOEs to PRC operating subsidiaries

 1,763,700

 2,249,400

 Loans from PRC operating subsidiaries to our WFOEs

 9,008,994

 7,007,710

 Other amounts paid by WFOEs to our offshore subsidiaries (2)

 -

 Other amounts paid by PRC operating subsidiaries to WFOEs (3)

 -

 86,324

 Other amounts paid by WFOEs to our PRC operating subsidiaries (4)

 424,874

 1,055,345

 Other amounts paid by our WFOE on our behalf (5)

 2,426,020

 5,747,738

 (1)

 "Offshore
 subsidiaries" refer to all of our subsidiaries except our PRC subsidiaries.

 (2)

 Cash
 paid by one of our WFOEs to our Hong Kong subsidiaries for expenses.

 (3)

 Cash
 paid by one of PRC operating subsidiaries to one of our WFOEs for sales of goods.

 (4)

 Cash
 paid by one of our WFOEs to one of our PRC operating subsidiaries for purchases.

 (5)

 Our
 PRC subsidiary, QHDX, paid fees and expense on our behalf via a related party as a result of PRC law restrictions on foreign exchange
 and restrictions on cash transfers outside of China. During the fiscal years ended December 31, 2023 and 2022, the related party
 paid for our professional fees and expenses in USD, and QHDX transferred cash in Renminbi to the related party. The cash flows of
 these activities were reflected in operating or financing activities in our consolidated statements of cash flows based on the nature
 and timing of cash flows.

 As
of the date of this report, none of our subsidiaries have made any dividends or other distributions to us or their respective shareholders,
nor have we ever made a dividend or distribution to our shareholders. Our PRC subsidiaries presently intend to retain all earnings to
fund their operations and business expansions.

 We
operate our business in China under a legal regime consisting of the National People's Congress, which is the country's highest
legislative body; the State Council, which is the highest authority of the executive branch of the PRC central government; and several
ministries and agencies under its authority, including the Ministry of Industry and Information Technology, State Administration for
Industry & Commerce, State Administration of Taxation and their respective local offices. This section summarizes the principal PRC
regulations related to our business.

Relating to Food Business Operations

 The
PRC laws and regulations governing food business activities and operations primarily consist of the Food Safety Law of the PRC, effective
as of April 29, 2021 (the "Food Safety Law"); the Regulations on the Implementation of the Food Safety Law, effective as
of December 1, 2019 (the "Food Safety Regulations"); the Product Quality Law, effective as of December 29, 2018; the Administrative
Measures for Food Recalls, as amended in October 23, 2020; the Special Rules of the State Council on Strengthening the Supervision and
Management of the Safety of Food and Other Products, effective as of July 26, 2007; the Administrative Measures for Food Distribution
Licensing, effective as of November 17, 2017; and the Law of the People's Republic of China on the Protection of Consumer Rights
and Interests, effective as of November 17, 2017. Other laws and regulations relevant to our business include, among others, the E-Commerce
Law of the People's Republic of China, effective as of January 1, 2019; the Law of the People's Republic of China on Import
and Export Commodity Inspection, effective as of April 29, 2021; Foreign Trade Law of the People's Republic of China, effective
as of November 7, 2016; and Measures of the People's Republic of China for the Administration of Safety of Imported and Exported
Food, effective as of January 1, 2022.

 The
Food Safety Law of the People's Republic of China, as most recently amended and effective on April 29, 2021, governs activities
with respect to food manufacturing and processing (hereinafter referred to as "food manufacturing") and circulation of foods
and food and beverage services (hereinafter referred to as "food business operations"). the PRC adopts a system of supervision,
monitoring and appraisal on the food safety risks, compulsory adoption of food safety standards. To engage in food production, sale or
catering services, the business operators shall obtain a license in accordance with the laws and regulations. However, the sale of edible
agricultural products and the sale of pre-packaged food only are not subject to a permit. The sale of prepacked food shall be reported
to the food safety regulatory department of the local government at or above the county level for recordation. As the date of this report,
all of our PRC subsidiaries have obtained the required business licenses from the SAMR, and thirteen of our PRC subsidiaries are required
to obtain food business licenses and have received such licenses pursuant to the Food Safety Law. Therefore, these subsidiaries are qualified
to engage in food purchase and sale activities. Four of our subsidiaries are subject to the reporting requirement but have not completed
the required recordation procedure. We intend to fully comply with such recordation requirement as soon as practicable. Guangdong provincial
government has not issued detailed implementation rules, and as such, changes in rules and regulations may impose additional requirements
for our subsidiaries in China.

 Regulation
on the Implementation of the Food Safety Law stipulate that, food manufacturers purchasing food ingredients, food additives and food-related
products shall check the supplier's license and product quality certificate; and inspect food ingredients without a product quality
certificate pursuant to food safety standards; and shall not purchase or use food ingredients, food additives and food-related products
which do not comply with food safety standards. In the contracts we signed with the suppliers, we require them to provide a laboratory
qualification report on the products issued by authoritative institutions at the time when the product is delivered to certify product
quality. The contract provides that the supplier shall bear the responsibility for product quality and safety. We strictly control the
safety of the food purchased.

 With
a view to strengthening the administration of food production and operation, reducing and avoiding the harm of unsafe food so as to ensure
the health and life safety of the general public, the Administrative Measures for Food Recalls are formulated according to the Food Safety
Law of the People's Republic of China and its implementation regulations. The food manufacturing is exposed to the foodstuffs recall
system, food manufacturers shall, upon discovery that the foodstuffs manufactured do not comply with food safety standards or based on
the evidence that the foodstuffs may endanger human health, forthwith cease manufacturing, recall foodstuffs from the market, notify
the relevant food business operators and consumers, and record information of the recall and notification. Where the food manufacturer
or business operator failed to recall foodstuffs or cease business operation pursuant to the provisions of this Article, the food safety
supervision and administration department of the local government may order the food manufacturer or business operator to recall foods
or cease business operations. We have not had an emergency food recall.

 The
Standing Committee of the National People's Congress promulgated the Product Quality Law of the PRC, released and effective on
December 29, 2018, which provides the producers and sellers should bear liability for product quality. Pursuant to the Regulations on
the Implementation of the Food Safety Law, issued on October 11, 2019, and effective on December 1, 2019, as a food seller, we should
abide by the Product Quality Law, which stipulates product quality liability and obligations of food sellers. Sellers shall adopt measures
to maintain the quality of products sold, and shall not counterfeit or imitate quality marks such as certification marks, shall not adulterate
or mix improper elements with the products, shall not use fake products as genuine products or products of poor quality as high quality
products, shall not falsify the place of origin of products and shall not falsify or imitate the name or address of another factory,
among other things.

 If
a product does not comply with the national or industry standards for the protection of health or personal safety or the safety of property,
the product manufacturer or seller will be ordered to cease their production or sale. Products that have been illegally produced or sold
shall be confiscated. A fine shall be imposed equal to an amount greater than the value of the products that have been illegally produced
or sold (hereafter including products already sold and goods not yet sold) but less than three (3) times the value of the products; where
there is illegal income, the illegal income shall be confiscated; where the circumstances are serious, the business license shall be
revoked; where the case constitutes a crime, criminal liability shall be pursued in accordance with law.

 In
the case of damage to consumers due to defects in the product, the Product Quality Law of the PRC stipulates the corresponding responsible
party. If a defect in a product causes physical injury or damage to third party property, the party which was injured or incurred damage
may claim compensation against the producer or may claim compensation against the seller. If the producer of the product is liable and
compensation is made by the seller of the product, the seller of the product shall have the right of recovery against the producer of
the product; if the seller of the product is liable and compensation is made by the producer of the product, the producer of the product
shall have the right of recovery against the seller of the product. Where a product is defective due to a mistake made by the seller
and such defect causes physical injury or damage to third party property, the seller shall bear liability for compensation. If a seller
is unable to identify the producer of a defective product and is also unable to identify the supplier thereof, the seller shall bear
liability for compensation. All the products we sell are sourced from upstream suppliers. In the event that we are held liable for product
defects as a seller, we have the right to recover compensation or damages paid to consumers from the supplier in accordance with applicable
law.

 Special
Rules of the State Council on Strengthening the Supervision and Management of the Safety of Food and Other Products were promulgated
and came into force on July 26, 2007. The products as mentioned in these Rules shall include edible agricultural products, and other
products related to the human health and life safety, in addition to food. A business operator shall be responsible for the safety of
products sold by it, and shall not sell products that do not conform to the statutory requirements. A seller must establish and implement
a product supply inspection and acceptance system, examine the business qualifications of suppliers, verify the certificates of qualified
products and product labels, and establish a product supply account to truly record the names, specifications, quantities, suppliers
and their contacts, time of supply of products. The product supply account and sale account shall be kept for at least two years. By
the production lot of products, a seller shall ask for an inspection report issued by an inspection agency in conformity with the statutory
conditions or a photocopy of an inspection report signed or sealed by the suppler from the supplier; and where such an inspection report
or a photocopy of an inspection report cannot be provided, the products shall not be sold.

 Measures
for the Supervision and Administration of the Sanitation of Domestic Drinking Water shall apply to the supervision and administration
of the sanitation of central water supply and secondary water supply entities and products involving the sanitation and safety of drinking
water. The PRC adopts a sanitary licensing system for products involving the sanitation and safety of drinking water. The entities and
individuals that produce products involving the sanitation and safety of drinking water shall apply for the sanitary licensing approval
documents for their products to the competent departments of health and family planning of governments as required, and may not produce
or sell those products until they have obtained the approval documents. No entity or individual may produce, sell or use the products
as mentioned in the preceding paragraph without approval documents. Products involving the sanitation and safety of drinking water shall
be subject to sanitation and safety evaluation in accordance with relevant provisions and shall conform to the requirements of sanitary
standards and specifications. Products involving the sanitation and safety of drinking water that are produced by using new materials,
new processes and new chemical substances shall obtain the sanitary licensing approval documents issued by the competent department of
health and family planning of the State Council; and products involving the sanitation and safety of drinking water other than those
produced by using new materials, new processes and new chemical substances shall obtain the sanitary licensing approval documents issued
by the competent departments of health and family planning of the provincial people's governments.

 E-Commerce
Law of the People's Republic of China was promulgated on August 31, 2018 and came into force on January 1, 2019. "E-commerce
businesses" means natural persons, legal persons or organizations without the status of legal person that engage in the business
activities of selling commodities, or providing services, through the Internet or any other information network, including e-commerce
platform businesses, in-platform businesses, and e-commerce businesses that sell commodities or provide services through a self-built
website or any other network services. "E-commerce platform business" means a legal person, or an organization without the
status of legal person, which, in e-commerce, provides both or multiple parties to trading with services We are both an e-commerce businesses
and an e-commerce platform business. E-commerce business operators shall complete market entity registration formalities pursuant to
the law, except for individuals selling self-produced agricultural products and home-made handicraft products, and individuals using
their own skills to engage in convenient labor activities and sporadic small transactions for which licensing is not required, as well
as e-commerce business operators who are not required to register pursuant to the laws and administrative regulations. The E-commerce
platform businesses are required to develop commodities and service quality assurance mechanism favorable to e-commerce development and
protection of consumer rights and interests. As an e-commerce business, we shall sell commodities or provide services meeting the requirements
for guaranteeing personal and property safety and for environmental protection and shall not sell or provide commodities or services
the trading of which is prohibited by any law or administrative regulation. As an e-commerce platform business, we shall request a business
applying for selling commodities or providing services in our platform to submit authentic information including its identity, address,
contact information, and administrative licensing, make verification and registration, establish a register, and make regular updates
and verification, submit the identity information of in-platform businesses to the administrative authorities and taxation authorities,
and remind a business that has not made market participant registration to make registration as legally required.

 The
Consumer Rights and Interests Protection Law of the PRC, or the Consumer Protection Law, promulgated on October 31, 1993 and most recently
amended on October 25, 2013 (effective as of March 15, 2014), provides that consumers shall be entitled to the protection of their personal
safety and property security at the time of purchase and use of goods and receipt of services. Consumers shall have the right to require
that the goods and services provided by business operators satisfy the requirements for protection of consumers' personal safety
and property security. Consumers shall be entitled to the knowledge of actual information of the goods they purchase or use and the services
they receive. Consumers shall have the right to require business operators to provide, based on different situations of the goods or
services, the relevant information pertaining to the price, place of manufacturing, manufacturer, purpose, function, specifications,
grade, main ingredients, manufacturing date, shelf life, inspection certificate, user manual, after-sale services of goods or the contents,
specifications and fees and charges of services, etc. In the sales contract, we guarantee the specifications, quality and safety, origin
and price of the products consistent with the contract.

 The
Law sets out the obligations of business operators and the rights and interests of the customers. For example, business operators must
guarantee the quality, function, usage, term of validity, personal or property safety requirement of the goods and services and provide
customers with authentic information about the goods and services. Consumer whose legitimate rights and interests are harmed in the purchase
of goods or receipt of services rendered through an online trading platform may seek compensation from the seller or the service provider.

 Additionally,
Internet information service providers, under the Civil Code of the PRC, which became effective on January 1, 2021, shall bear tortious
liabilities in the event they infringe upon other person's rights and interests due to providing false or inaccurate content through
the internet. Where an internet service provider conducts tortious acts through internet services, the infringed person has the right
to request the internet service provider take necessary actions such as deleting contents, screening and de-linking. Failing to take
necessary actions after being informed, the internet service provider will be subject to its liabilities with regard to the additional
damages incurred. Where an internet service provider knows that an internet user is infringing upon other persons' rights and interests
through its internet service but fails to take necessary actions, it is jointly and severally liable with the internet user.

Relating to M&A Rules and Overseas Listings

 On
August 8, 2006, six PRC regulatory agencies, including the China Securities Regulatory Commission, or the CSRC, adopted the Regulations
on Mergers of Domestic Enterprises by Foreign Investors, or the M&A Rules, which became effective on September 8, 2006 and was amended
on June 22, 2009. Foreign investors shall comply with the M&A Rules when they purchase equity interests of a domestic company or
subscribe the increased capital of a domestic company, thus changing the nature of the domestic company into a foreign-invested enterprise;
or when the foreign investors establish a foreign-invested enterprise in the PRC, purchase the assets of a domestic company and operate
the assets; or when the foreign investors purchase the asset of a domestic company, establish a foreign-invested enterprise by injecting
such assets and operate the assets. The M&A Rules purport, among other things, to require offshore special purpose vehicles formed
for overseas listing purposes through acquisitions of PRC domestic companies and controlled by PRC companies or individuals, to obtain
the approval of the CSRC prior to publicly listing their securities on an overseas stock exchange.

to the Anti-Monopoly Law which took effect as at August 1, 2008, where the concentration of business operators reaches the filing thresholds
stipulated by the State Council, business operators shall file a declaration with the SAMR, and no concentration shall be implemented
until the SAMR clears the anti-monopoly filing. Pursuant to the Notice of the General Office of the State Council on the Establishment
of the Security Review System for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors and the Security Review Rules
issued by the General Office of the State Council on February 3, 2011 and became effective on March 3, 2011, mergers and acquisitions
by foreign investors that raise "national defense and security" concerns, and mergers and acquisitions through which foreign
investors may acquire de facto control over domestic enterprises that raise "national security" concerns, are subject to
strict review by the PRC government authorities. On August 25, 2011, the MOFCOM issued the Provisions of the Ministry of Commerce for
the Implementation of the Security Review System for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, which provides
that if a foreign investor's merger or acquisition of a domestic enterprise falls within the scope of security review specified
in the Notice of the General Office of the State Council on the Establishment of the Security Review System for Mergers and Acquisitions
of Domestic Enterprises by Foreign Investors, the foreign investor shall file an application with MOFCOM for security review. Whether
a foreign investor's merger or acquisition of a domestic enterprise falls within the scope of security review or not shall be determined
based on the substance and actual influence of the merger or acquisition transaction. No foreign investor is allowed to substantially
avoid the security review in any way, including but not limited to, holding shares on behalf of others, trust arrangements, multi-level
reinvestment, leasing, loans, contractual control, or overseas transactions.

 On
December 24, 2021, the CSRC issued the Administrative Provisions of the State Council Regarding the Overseas Issuance and Listing of
Securities by Domestic Enterprises (the "Draft Administrative Provisions") and the Measures for the Overseas Issuance of
Securities and Listing Record-Filings by Domestic Enterprises (Draft for Comments) (the "Draft Filing Measures"), collectively,
the "Draft Overseas Listing Regulations," which are currently published for public comments only. The Draft Overseas Listing
Regulations require that companies applying for overseas issuance, listing and post-listing capital operations, including IPO, multi-listing,
spin-off listing, SPAC, refinancing, issuance for asset acquisitions, equity incentives, and changes of control and other stipulated
transactions, shall be subject to statutory procedures, such as filing and information reporting requirement. Overseas issuance and listings
include direct and indirect issuance and listings. Where an enterprise whose principal business activities are conducted in PRC seeks
to issue and list its shares in the name of an overseas enterprise based on equity, assets, income or other similar rights and interests
of the relevant PRC domestic enterprise, such activities are deemed an indirect overseas issuance and listing under the Draft Overseas
Listing Regulations. According to the Draft Overseas Listing Regulations, among other things, after making initial applications with
overseas stock markets for offerings or listings, all China-based companies shall file with the CSRC within three working days. The required
filing materials with the CSRC include (without limitation): (i) record-filing reports and related undertakings, (ii) compliance certificates,
filing or approval documents from the primary regulator of the applicants' businesses (if applicable), (iii) security assessment
opinions issued by related departments (if applicable), (iv) PRC legal opinions, and (v) prospectus. In addition, overseas offerings
and listings may be prohibited for such China-based companies when any of the following applies: (1) if the intended securities offerings
and listings are specifically prohibited by the laws, regulations or provision of the PRC; (2) if the intended securities offerings and
listings may constitute a threat to, or endanger national security as reviewed and determined by competent authorities under the State
Council in accordance with laws; (3) if there are material ownership disputes over applicants' equity interests, major assets,
core technologies, or the others; (4) if, in the past three years, applicants' domestic enterprises or controlling shareholders,
de facto controllers have committed corruption, bribery, embezzlement, misappropriation of property, or other criminal offenses disruptive
to the order of the socialist market economy, or are currently under judicial investigation for suspicion of criminal offenses, or are
under investigation for suspicion of major violations; (5) if, in the past three years, any directors, supervisors, or senior executives
of applicants have been subject to administrative punishments for severe violations, or are currently under judicial investigation for
suspicion of criminal offenses, or are under investigation for suspicion of major violations; (6) other circumstances as prescribed by
the State Council. The Draft Administrative Provisions further stipulate that a fine between RMB 1 million and RMB 10 million may be
imposed if an applicant fails to fulfill the filing requirements with the CSRC or conducts an overseas offering or listing in violation
of the Draft Rules Regarding Overseas Listings, and in cases of severe violations, a parallel order to suspend relevant businesses or
halt operations for rectification may be issued, and relevant business permits or operational license revoked.

 On
February 17, 2023, the CSRC issued the Trial Measures and five application guidelines, or the Overseas Listing Rules, which became
effective on March 31, 2023. According to the Overseas Listing Rules, among other things, after making initial applications with overseas
stock markets for offerings or listings, all China-based companies shall file with the CSRC within three business days. Subsequent securities
offerings of an issuer in the same overseas market where it has previously offered and listed securities shall be filed with the CSRC
within three business days after the offering is completed. Subsequent securities offerings and listings of an issuer in other overseas
markets than where it has offered and listed shall be filed with the CSRC within three business days after the applications are made.
In addition, overseas offerings and listings are prohibited for such China-based companies when any of the following applies: (a) where
such securities offering and listing is explicitly prohibited by provisions in PRC laws, administrative regulations and relevant state
rules; (b) where the intended securities offering and listing may endanger national security as reviewed and determined by competent
authorities under the State Council in accordance with law; (c) where the domestic company intending to make the securities offering
and listing, or its controlling shareholders and the actual controller, have committed crimes such as corruption, bribery, embezzlement,
misappropriation of property or undermining the order of the socialist market economy during the latest three years; (d) where the domestic
company intending to make the securities offering and listing is suspected of committing crimes or major violations of laws and regulations,
and is under investigation according to law, and no conclusion has yet been made thereof; (e) where there are material ownership disputes
over equity held by the domestic company's controlling shareholder or by other shareholders that are controlled by the controlling
shareholder and/or actual controller. The Overseas Listing Rules further stipulate that a fine between RMB 1 million and RMB 10 million
may be imposed if a company fails to fulfill the filing requirements with the CSRC or conducts an overseas offering or listing in violation
of the Overseas Listing Rules. According to the Notice on the Filing Management Arrangements for Overseas Offerings and Listings by Domestic
Companies published by the CSRC on February 17, 2023, existing listed companies are not required to make any filings until they conduct
a new offering or financing transaction in the future. A company is regarded as an existing listed company if it (a) has already completed
overseas listing or offering, or (b) has already obtained the approval for the offering or listing from overseas securities regulatory
authorities or stock exchanges but has not completed such offering or listing before the effective date of the Overseas Listing Rules
and also completes the offering or listing before September 30, 2023. On the effective date of the Overseas Listing Rules, PRC companies
that have already submitted offering and listing applications but have not yet obtained the approvals from overseas securities regulators
or exchanges shall make filings with the CSRC at a reasonable time before the completion of the offerings or listings. For those that
have already obtained CSRC's approvals for overseas listings or offerings may continue their process without additional filings
but shall make the filing pursuant to the Overseas Listing Rules if they cannot complete the offering or listing before the expiration
of the original approval from CSRC.

Relating to Foreign Investment

activities in the PRC by foreign investors are principally governed by the Industry Guidelines of Encouraged Foreign Investment, or the
Industry Guidelines, effective on January 27, 2021, and the Special Administrative Measures for Entrance of Foreign Investment (Negative
List), or the Negative List, effective on July 23, 2020, and together with the PRC Foreign Investment Law, which took effect on January
1, 2020, and its respective implementation rules and ancillary regulations. The Industry Guidelines and the Negative List lay out the
basic framework for foreign investments in China, classifying businesses into three categories with regard to foreign investments: "encouraged",
"restricted" and "prohibited". Industries not listed in the Industry Guidelines or the Negative List are generally
deemed as falling into a fourth category "permitted" unless specifically restricted by other PRC laws. The Negative List
specifies that Investment in Internet news service, Internet publishing service, Internet audio-visual program service, cyber culture
operation (except for music) and Internet information dissemination service (except for contents opened up in China's WTO commitments)
shall be prohibited.

to the PRC Foreign Investment Law, foreign investments shall enjoy pre-entry national treatment, except for those foreign-invested entities
that operate in industries deemed to be either "restricted" or "prohibited" in the "negative list."
While foreign investors shall refrain from investing in any of the foreign "prohibited" industries, foreign-invested entities
operating in foreign "restricted" industries shall require market entry clearance and other approvals from relevant PRC governmental
authorities. Furthermore, the PRC Foreign Investment Law provides that foreign-invested enterprises that have been established before
the implementation of PRC Foreign Investment Law according to the then existing laws regulating foreign investments may maintain their
structure and corporate governance within five years after the implementation of the PRC Foreign Investment Law.

 On
December 19, 2020, MOFCOM and NDRC released the Measures for the Security Review of Foreign Investments, which took effect on January
18, 2021.For foreign investments within the following scope, foreign investors or the relevant parties in China (hereinafter referred
to collectively as the "parties concerned") shall take the initiative to declare to the office of the working mechanism prior
to implementation of the investments: (II) investments in important agricultural products, important energy and resources, important
equipment manufacturing, important infrastructure, important transport services, important cultural products and services, important
information technology and Internet products and services, important financial services, key technologies and other important fields
relating to national security, and obtaining the actual controlling stake in the investee enterprise. Prior to a decision made by the
office of the working mechanism, the parties concerned shall not make the investment. The parties concerned shall not make the investment
unless the office of the working mechanism decides that security review is not required. Where the declared foreign investment affects
national security, a decision on prohibiting the investment shall be made. Foreign-invested entities of the group have businesses that
conduct Internet services, but not related to national security within the scope of the regulations above.

 On
December 26, 2019, the State Council promulgated the Regulations for Implementing the PRC Foreign Investment Law, which took effect on
January 1, 2020. The implementation regulations further clarified that the State encourages and promotes foreign investments, protects
the lawful rights and interests of foreign investors, regulates foreign investment administration, continues to optimize foreign investment
environment, and advances a higher-level opening.

 On
December 30, 2019, MOFCOM and SAMR jointly promulgated the Measures for Information Reporting on Foreign Investment, which became effective
on January 1, 2020. Pursuant to the Measures for Information Reporting on Foreign Investment, where a foreign investor carries out investment
activities in China directly or indirectly, the foreign investor or the foreign-invested enterprise shall submit the investment information
to the competent commerce department.

related to Anti-Monopoly and Competition

 On
August 17, 2021, the State Administration for Market Regulation, or the SAMR, issued a discussion draft of Provisions on the Prohibition
of Unfair Competition on the Internet, under which business operators should not use data or algorithms to hijack traffic or influence
users' choices, or use technical means to illegally capture or use other business operators' data. Furthermore, business
operators are not allowed to (i) fabricate or spread misleading information to damage the reputation of competitors, or (ii) employ marketing
practices such as fake reviews or use coupons or "red envelopes" to entice positive ratings.

 On
September 11, 2020, the Anti-Monopoly Commission of the State Council issued Anti-Monopoly Compliance Guideline for Operators, which
requires operators to establish anti-monopoly compliance management systems under the PRC Anti-Monopoly Law to manage anti-monopoly compliance
risks. On February 7, 2021, the Anti-Monopoly Commission of the State Council published Anti-Monopoly Guidelines for the Internet Platform
Economy Sector that specified circumstances where an activity of an internet platform will be identified as monopolistic act as well
as concentration filing procedures for business operators, including those involving variable interest entities, or the VIEs. According
to the PRC Anti-Monopoly Law, if a business operator carries out a concentration in violation of the law, the relevant authority shall
order the business operator to terminate the concentration, dispose of the shares or assets or transfer the business within a specified
time limit, or take other measures to restore the pre-concentration status, and impose a fine of up to RMB500,000.

 On
October 23, 2021, the Standing Committee of the National People's Congress issued a discussion draft of the amended Anti-Monopoly
Law, which proposes to increase the fines for illegal concentration of business operators to no more than ten percent of its last year's
sales revenue if the concentration of business operator has or may have an effect of excluding or limiting competitions; or a fine of
up to RMB5 million if the concentration of business operator does not have an effect of excluding or limiting competition. The draft
also proposes that the relevant authority shall investigate a transaction where there is any evidence that the concentration has or may
have the effect of eliminating or restricting competitions, even if such concentration does not reach the filing threshold.

Relating to Value-added Telecommunications Services

to the Provisions on Administration of Foreign-Invested Telecommunications Enterprises which was promulgated by the State Council on
December 11, 2001 and amended on September 10, 2008 and February 6, 2016, or the FITE Regulations, and the Telecommunications Regulations
of the PRC, or the Telecom Regulations, promulgated by the PRC State Council on September 25, 2000 and most recently amended on February
6, 2016, telecom operators shall apply for a telecommunications business permit pursuant to the provisions of these Regulations. No organization
or individual shall engage in telecommunications business without obtaining a telecommunications business permit. In addition, the ultimate
foreign equity ownership in a value-added telecommunications services provider shall not exceed 50%. Moreover, for a foreign investor
to acquire any equity interest in value-added telecommunication business in China, it must satisfy a number of stringent performance
and operational experience requirements, including demonstrating good track records and experience in operating value-added telecommunication
business overseas.

 On
June 19, 2015, the Ministry of Industry and Information Technology, or the MIIT, issued the Circular on Removing the Restrictions on
Equity Ratio Held by Foreign Investors in Online Data Processing and Transaction Processing (Operating E-Commerce) Business, allowing
foreign investors to own 100% of equity interest in an operator of "operating e-commerce" business. The latest Negative List
further provides that foreign investors are allowed to hold more than 50% equity interests in a value-added telecommunications service
provider engaging in e-commerce, domestic multiparty communication, storage-and-forward and call center businesses, while other requirements
with respect to track record and experience provided by the FITE Regulations shall still apply and foreign investors are still prohibited
from holding more than 50% of equity interest in a provider of other subcategories of value-added telecommunications services.

Relating to Cybersecurity and Privacy Protection

 The
PRC Constitution states that PRC law protects the freedom and privacy of communications of citizens and prohibits infringement of these
rights. In recent years, PRC government authorities have enacted legislation on the Internet use to protect personal information from
any unauthorized disclosure. Under the Several Provisions on Regulating the Market Order of Internet Information Services which was promulgated
by MIIT on December 29, 2011, an Internet content service operator may not collect any user personal information or provide any such
information to third parties without the consent of a user, unless otherwise stipulated by laws and administrative regulations. An Internet
content service operator must expressly inform the users of the method, content and purpose of the collection and processing of such
user personal information and may only collect such information necessary for the provision of its services. An Internet content service
operator is also required to properly keep the user personal information, and in case of any leak or likely leak of the user personal
information, the Internet content service operator must take immediate remedial measures and, in severe circumstances, to make an immediate
report to the telecommunication regulatory authority.

 In
addition, the Decision on Strengthening Network Information Protection, which was promulgated by the Standing Committee of NPC on December
28, 2012, provides that electronic information that is able to identify personal identities of citizens or is concerned with personal
privacy of citizens is protected by law and shall not be unlawfully obtained or provided. Internet content service operators collecting
or using personal electronic information of citizens shall specify purposes, manners and scopes of information collection and use, obtain
the consent of citizens concerned, and strictly keep confidential personal information collected. Internet content service operators
are prohibited from disclosing, tampering with, damaging, selling or illegally providing others with personal information collected.
Technical and other measures are required to be taken by Internet content service operators to prevent personal information collected
from unauthorized disclosure, damage or being lost. Internet content service operators are subject to legal liability, including warnings,
fines, confiscation of illegal gains, revocation of licenses or filings, closing of websites concerned, public security administration
punishment, criminal liabilities, or civil liabilities, if they violate relevant provisions on Internet privacy.

to the Order for the Protection of Telecommunication and Internet User Personal Information which was promulgated by MIIT on July 16,
2013, any collection and use of users' personal information must be subject to the consent of the users, abide by the principles
of legality, rationality and necessity and be within the specified purposes, methods and scopes. Pursuant to the Ninth Amendment to the
Criminal Law which was issued by the Standing Committee of NPC on August 29, 2015 and became effective on November 1, 2015, any Internet
service provider that fails to fulfill obligations to manage information and network security as required by applicable laws and refuses
to rectify upon orders from government authorities, will be subject to the criminal penalty if such failure (i) causes dissemination
of illegal information in large scale; (ii) causes user information leaks resulting in severe consequences; (iii) causes serious loss
of evidence to criminal investigations; or (iv) implicates other severe circumstances. Moreover, any individual or entity that (i) sells
or provides personal information to others in violation of applicable laws, or (ii) steals or illegally obtains any personal information,
in either case implicating severe circumstances, will be subject to the criminal penalty. The PRC government, however, has the power
and authority to order Internet content service operators to turn over personal information if an Internet user posts any prohibited
content or engages in illegal activities on the Internet.

 To
further regulate cybersecurity and privacy protection, the PRC Cybersecurity Law which was promulgated by the Standing Committee of NPC
on November 7, 2016 and took effect on June 1, 2017, provides that: subject to certain exceptions, (i) to collect and use personal information,
network operators must follow the principles of legitimacy, rightfulness, and necessity, disclose their rules of data collection and
use, clearly express the purposes, means, and scope of collecting and using the information, and obtain the consent of the persons whose
data is gathered; (ii) network operators can neither gather personal information unrelated to the services they provide, nor gather or
use personal information in violation of the provisions of laws and administrative regulations or the scopes of consent given by the
persons whose data is gathered, and must dispose of personal information they have saved in accordance with the provisions of laws and
administrative regulations and agreements reached with users; (iii) network operators cannot divulge, tamper with, or damage the personal
information they have collected, and cannot provide the personal information to others without the consent of persons whose data is collected.
According to the PRC Cybersecurity Law, personal information refers to all kinds of information that are recorded electronically or that
can otherwise be used to independently identify or be combined with other information to identify natural persons' personal information,
including but not limited to natural persons' names, dates of birth, identification numbers, biologically identified personal information,
addresses, and telephone numbers. Any Internet information services provider that violates these privacy protection requirements under
the PRC Cybersecurity Law and related laws and regulations may be ordered to turn in illegal gains generated from unlawful operations
and pay a fine of no less than one but no more than ten times of the illegal gains and may be ordered to cease the relevant business
operations when the violation is serious.

 On
June 28, 2016, the CAC issued the Administrative Provisions on Mobile Internet Applications Information Services, which became effective
on August 1, 2016, to further strengthen the regulation of the mobile app information services. Pursuant to these provisions, owners
or operators of mobile apps that provide information services are required to be responsible for information security management, establish
and improve the protective mechanism for user information, observe the principles of legality, rightfulness and necessity, and expressly
state the purpose, method and scope of, and obtain user consent to, the collection and use of users' personal information.

 On
May 8, 2017, the Supreme People's Court and the Supreme People's Procuratorate issued the Interpretations of the Supreme
People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Application of Law in the Handling
of Criminal Cases Involving Infringement of Citizens' Personal Information, or the Personal Information Interpretations, which
became effective on June 1, 2017. The Personal Information Interpretations provides more practical conviction and sentencing criteria
for the infringement of citizens' personal information.

 On
January 23, 2019, the PRC Office of the Central Cyberspace Affairs Commission and other three authorities jointly issued the Circular
on the Special Campaign of Correcting Unlawful Collection and Usage of Personal Information via Apps. Pursuant to this circular, (i)
app operators are prohibited from collecting any personal information irrelevant to their services; (ii) information collection and usage
policy should be presented in a simple and clear way, and such policy should be consented by the users voluntarily, and; (iii) authorization
from users should not be obtained by coercing users with default or bundling clauses or making consent a condition of service. App operators
violating these rules can be ordered by authorities to correct their noncompliance within a given period of time, be publicly reported,
or ordered to quit its operation or cancel its business license or operational permits.

 On
April 10, 2019, the Ministry of Public Security promulgated the Guidelines for Internet Personal Information Security Protection, which
establishes the management mechanism, security technical measures and business workflows for personal information security protection.
On August 22, 2019, the CAC promulgated the Provisions on the Cyber Protection of Children's Personal Information which requires,
among others, that network operators who collect, store, use, transfer and disclose personal information of children under the age of
14 shall establish special rules and user agreements for the protection of children's personal information, inform the children's
guardians in a noticeable and clear manner, and shall obtain the consent of the children's guardians.

 On
November 28, 2019, the CAC, MIIT, the Ministry of Public Security and SAMR jointly promulgated the Measures for the Determination of
the Collection and Use of Personal Information by Apps in Violation of Laws and Regulations, which provides guidance for the regulatory
authorities to identify the illegal collection and use of personal information through mobile apps, and for the app operators to conduct
self-examination and self-correction and social supervision by citizens.

 On
May 28, 2020, the NPC approved the Civil Code of the PRC or the Civil Code, which came into effect on January 1, 2021. Pursuant to the
Civil Code, the personal information of a natural person shall be protected by the law. Any organization or individual that needs to
obtain personal information of others shall obtain such information legally and ensure the safety of such information, and shall not
illegally collect, use, process or transmit personal information of others, or illegally purchase or sell, provide or make public personal
information of others. Furthermore, information processors shall not divulge or tamper with personal information collected or stored
by them; without the consent of a natural person, information processors shall not illegally provide personal information of such person
to others, except for information that has been processed so that specific persons cannot be identified and that cannot be restored.
In addition, an information processor shall take technical measures and other necessary measures to ensure the security of the personal
information that is collected and stored and to prevent the information from being divulged, tampered with or lost; where personal information
has been or may be divulged, tampered with or lost, the information processor shall take remedial measures in a timely manner, inform
the natural person concerned in accordance with the provisions and report the case to the relevant competent department.

 On
August 20, 2021, the SCNPC adopted the Personal Information Security Law, which took effect on November 1, 2021. The Personal Information
Protection Law includes the basic rules for personal information processing, the rules for cross-border provision of personal information,
the rights of individuals in personal information processing activities, the obligations of personal information processors, and the
legal responsibilities for illegal collection, processing, and use of personal information. As the first systematic and comprehensive
law specifically for the protection of personal information in the PRC, the Personal Information Protection Law provides, among others,
that (i) an individual's consent shall be obtained to use sensitive personal information, such as biometric characteristics and
individual location tracking, (ii) personal information operators using sensitive personal information shall notify individuals of the
necessity of such use and impact on the individual's rights, and (iii) where personal information operators reject an individual's
request to exercise his or her rights, the individual may file a lawsuit with a People's Court.

 On
November 14, 2021, the CAC published the Regulations of Internet Data Security Management (Draft for Comments), which further regulate
the internet data processing activities and emphasize the supervision and management of network data security, and further stipulate
the obligations of internet platform operators, such as to establish a system for disclosure of platform rules, privacy policies and
algorithmic strategies related to data. Specifically, the draft regulations require data processors to, among others, (i) adopt immediate
remediation measures when finding that network products and services they use or provide have security defects and vulnerabilities, or
threaten national security or endanger public interest, and (ii) follow a series of detailed requirements with respect to processing
of personal information, management of important data and proposed overseas transfer of data. In addition, the draft regulations require
data processors handling important data or the data processors to be listed overseas to complete an annual data security assessment and
file a data security assessment report to applicable regulators. Such annual assessment, as required by the draft regulations, would
encompass areas including, but not limited to, the status of important data processing, data security risks identified and the measures
adopted, the effectiveness of data protection measures, the implementation of national data security laws and regulations, data security
incidents that occurred and their handling, and a security assessment with respect to sharing and provision of important data overseas.
As of the date of this report, the draft regulations have been released for public comment only and have not been formally adopted. The
final provisions and the timeline for its adoption are subject to changes and uncertainties.

 We
currently operate an online trading platform, primarily engaged in sales of products to our customers in China, where our customers can
register as members first, and then search for, purchase or sell any desired food and beverage products. Our online platform collects
and transmits product, supplier and customer information and data. Since our online trading platform has only been in operation for about
two years, we are in the process of studying the newly issued rules and regulations governing cybersecurity and data protection and the
industry best practice, as well as assessing the extent to which our information and data system is not in full compliance with the various
requirements under the newly proposed regulations.

 We
are committed to taking the necessary actions to satisfy the effective personal information protection and internet data security regulatory
requirements. We have designed a user information protection mechanism, which includes the following measures: (i) adopt data security
technical measures by the introduction of an extended verification (EV) SSL certificate at the user information security technology implementation
level, offering strong encryption technology and extended verification function, and providing security guarantee for online transactions;
(ii) improve the technical level protection and the monitoring mechanism for data use, and for the data modules related to user information
in the e-commerce platform system, use MD5 irreversible encryption for storage and display of information security sensitive fields;
(iii) develop a complete personal information operation process and system, and designate responsible personnel system for information
security work; (iv) develop a user information collection, storage and user rules and privacy agreement, following the "inform
+ express consent" model, informing users of the purpose, method and scope of information collection and use, as well as the channels
for inquiring and correcting inaccuracies in information and data; (v) conduct assessments on technology, operational risks and system
common issues, and data security governance; (vi) voluntarily engage a data security service organization to conduct an annual data security
assessment and fulfil reporting obligations if required by applicable rules and regulations; (vii) establish an emergency plan for personal
information security incidents, which includes, among other things, an emergency response mechanism for security incidents, incident
impact assessment and mitigation measures, and emergency response training and drills; (viii) provide training to employees; and (ix)
promote consumer data protection awareness and education engagement. We have implemented and are implementing these measures. We are committed to taking the necessary actions to satisfy the effective personal information protection
and internet data security regulatory requirements in accordance with the applicable laws.

Relating to Intellectual Property Rights

 Patent

 Patents
in the PRC are principally protected under the Patent Law of the PRC. The duration of a patent right is either 10 years or 15 year or
20 years from the date of application, depending on the type of patent right. The Patent Law of the PRC and its implementation rules
provide for three types of patents, namely, "invention", "utility model" and "design". Invention
patents are valid for twenty years, utility model patents are valid for fifteen years, while design patents are valid for ten years,
from the date of application. The Chinese patent system adopts a "first-to-file" principle, which means that where more than
one person files a patent application for the same invention, a patent will be granted to the person who files the application first.
To be patentable, invention or utility models must meet three criteria: novelty, inventiveness and practicability. A third party must
obtain consent or a proper license from the patent owner to use the patent. Otherwise, the use constitutes an infringement of the patent
rights.

in the PRC, including copyrighted software, is principally protected under the Copyright Law of the PRC and related rules and regulations.
Under the Copyright Law, promulgated in September 1990, implemented in June 1991, amended in October 2001, February 2010 and November
2020, and effective on June 1, 2021 the term of protection for copyrighted software is 50 years. The Regulation on the Protection of
the Right to Communicate Works to the Public over Information Networks, as most recently amended on January 30, 2013, provides specific
rules on fair use, statutory license, and a safe harbor for use of copyrights and copyright management technology and specifies the liabilities
of various entities for violations, including copyright holders, libraries and Internet service providers.

 Trademark

 Registered
Trademarks are protected by the PRC Trademark Law which was adopted by the Standing Committee of NPC on August 23, 1982 and most recently
amended on April 23, 2019 as well as the Implementation Regulation of the PRC Trademark Law which was adopted by the State Council on
August 3, 2002 and amended on April 29, 2014. The Trademark Office of the National Intellectual Property Administration under SAMR handles
trademark registrations and grants a term of ten years to registered trademarks which may be renewed for consecutive ten-year periods
upon request by the trademark owner. For licensed use of a registered trademark, the licensor shall file record of the licensing of the
said trademark with the Trademark Office, otherwise it may not defend against a bona fide third party. The PRC Trademark Law has adopted
a "first-to-file" principle with respect to trademark registration. Where a trademark for which a registration has been made
is identical or similar to another trademark which has already been registered or been subject to a preliminary examination and approval
for use on the same kind of or similar commodities or services, the application for registration of such trademark may be rejected. Any
person applying for the registration of a trademark may not prejudice the existing right first obtained by others, nor may any person
register in advance a trademark that has already been used by another party and has already gained a "sufficient degree of reputation"
through such party's use.

 Under
PRC law, any of the following acts will be deemed as an infringement to the exclusive right to use a registered trademark: (i) use of
a trademark that is the same as or similar to a registered trademark for identical or similar goods without the permission of the trademark
registrant; (ii) sale of any goods that have infringed the exclusive right to use any registered trademark; (iii) counterfeit or unauthorized
production of the label of another's registered trademark, or sale of any such label that is counterfeited or produced without
authorization; (iv) change of any trademark of a registrant without the registrant's consent, and selling goods bearing such replaced
trademark on the market; or (v) other acts that have caused any other damage to another's exclusive right to use a registered trademark.

to the PRC Trademark Law, in the event of any of the foregoing acts, the infringing party will be ordered to stop the infringement immediately
and may be imposed a fine; the counterfeit goods will be confiscated. The infringing party may also be held liable for the right holder's
damages, which will be equal to the losses suffered by the right holder as a result of the infringement, including reasonable expenses
incurred by the right holder for stopping the infringement, or the gains obtained by the infringing party if the losses are difficult
to be ascertained. If both gains and losses are difficult to be ascertained, the damages may be determined by referring to the amount
of royalties for the license of such trademarks, which will be one to five times of the royalties in the case of any serious infringement
with malicious intent. If the gains, losses and royalties are all difficult to be ascertained, the court may render a judgment awarding
damages no more than RMB5 million. Notwithstanding the above, if a distributor does not know that the goods it sells infringe another's
registered trademark, it will not be liable for infringement provided that the seller shall prove that the goods are lawfully obtained
and identify its supplier.

 Domain
Name

 Domain
names are protected under the Administrative Measures on Internet Domain Names promulgated by the MIIT on August 24, 2017 and effective
as of November 1, 2017. Domain name registrations are handled through domain name service agencies established under the relevant regulations,
and applicants become domain name holders upon successful registration.

Relating to Foreign Exchange

on Foreign Currency Exchange

 The
principal regulations governing foreign currency exchange in China are the Foreign Exchange Administration Regulations, most recently
amended on August 5, 2008. Under PRC foreign exchange regulations, payments of current account items, such as profit distributions, interest
payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior approval from the
State Administration of Foreign Exchange, or SAFE, by complying with certain procedural requirements. By contrast, approval from or registration
with appropriate government authorities is required where RMB is to be converted into foreign currency and remitted out of China to pay
capital account items, such as direct investments, repayment of foreign currency-denominated loans, repatriation of investments and investments
in securities outside of China.

 On
November 19, 2012, SAFE promulgated the Circular of Further Improving and Adjusting Foreign Exchange Administration Policies on Foreign
Direct Investment, or Circular 59, which substantially amends and simplifies the current foreign exchange procedure. Pursuant to Circular
59, the opening of various special purpose foreign exchange accounts, such as pre-establishment expenses accounts, foreign exchange capital
accounts and guarantee accounts, the reinvestment of RMB proceeds derived by foreign investors in the PRC, and remittance of foreign
exchange profits and dividends by a foreign-invested enterprise to its foreign shareholders no longer require the approval or verification
of SAFE, and multiple capital accounts for the same entity may be opened in different provinces, which was not possible previously. In
2013, SAFE specified that the administration by SAFE or its local branches over direct investment by foreign investors in the PRC must
be conducted by way of registration and banks must process foreign exchange business relating to the direct investment in the PRC based
on the registration information provided by SAFE and its branches. In February 2015, SAFE promulgated the Notice on Further Simplifying
and Improving the Administration of the Foreign Exchange Concerning Direct Investment, or SAFE Notice 13. Instead of applying for approvals
regarding foreign exchange registrations of foreign direct investment and overseas direct investment from SAFE, entities and individuals
may apply for such foreign exchange registrations from qualified banks. The qualified banks, under the supervision of SAFE, may directly
review the applications and conduct the registration.

 In
March 2015, SAFE promulgated the Circular of the SAFE on Reforming the Management Approach regarding the Settlement of Foreign Capital
of Foreign-invested Enterprise, or Circular 19, which expands a pilot reform of the administration of the settlement of the foreign exchange
capitals of foreign-invested enterprises nationwide. Circular 19 replaced both the Circular of the SAFE on Issues Relating to the Improvement
of Business Operations with Respect to the Administration of Foreign Exchange Capital Payment and Settlement of Foreign-invested Enterprises,
or Circular 142, and the Circular of the SAFE on Issues concerning the Pilot Reform of the Administrative Approach Regarding the Settlement
of the Foreign Exchange Capitals of Foreign-invested Enterprises in Certain Areas, or Circular 36. Circular 19 allows all foreign-invested
enterprises established in the PRC to settle their foreign exchange capital on a discretionary basis according to the actual needs of
their business operation, provides the procedures for foreign invested companies to use Renminbi converted from foreign currency-denominated
capital for equity investments and removes certain other restrictions that had been provided in Circular 142. However, Circular 19 continues
to prohibit foreign-invested enterprises from, among other things, using RMB funds converted from their foreign exchange capital for
expenditure beyond their business scope and providing entrusted loans or repaying loans between non-financial enterprises. SAFE promulgated
the Notice of the State Administration of Foreign Exchange on Reforming and Standardizing the Foreign Exchange Settlement Management
Policy of Capital Account, or Circular 16, effective June 2016, which reiterates some of the rules set forth in Circular 19. Circular
16 provides that discretionary foreign exchange settlement applies to foreign exchange capital, foreign debt offering proceeds and remitted
foreign listing proceeds, and the corresponding RMB capital converted from foreign exchange may be used to extend loans to related parties
or repay inter-company loans (including advances by third parties). However, there are substantial uncertainties with respect to Circular
16's interpretation and implementation in practice. Circular 19 or Circular 16 may delay or limit us from using the proceeds of
offshore offerings to make additional capital contributions to our PRC subsidiaries and any violations of these circulars could result
in severe monetary or other penalties.

 In
January 2017, SAFE promulgated the Circular on Further Improving Reform of Foreign Exchange Administration and Optimizing Genuineness
and Compliance Verification, or Circular 3, which stipulates several capital control measures with respect to the outbound remittance
of profits from domestic entities to offshore entities, including (i) banks must check whether the transaction is genuine by reviewing
board resolutions regarding profit distribution, original copies of tax filing records and audited financial statements, and (ii) domestic
entities must retain income to account for previous years' losses before remitting any profits. Moreover, pursuant to Circular
3, domestic entities must explain in detail the sources of capital and how the capital will be used, and provide board resolutions, contracts
and other proof as a part of the registration procedure for outbound investment.

 On
October 23, 2019, SAFE issued Circular of the State Administration of Foreign Exchange on Further Promoting the Facilitation of Cross-border
Trade and Investment, or the Circular 28, which took effect on the same day. Circular 28 allows non-investment foreign-invested enterprises
to use their capital funds to make equity investments in China, provided that such investments do not violate the effective special entry
management measures for foreign investment (negative list) and the target investment projects are genuine and in compliance with laws.

 Regulation
on Foreign Debt

 A
loan made by a foreign entity as direct or indirect shareholder in a FIE is considered to be foreign debt in China and is regulated by
various laws and regulations, including the Regulation of the People's Republic of China on Foreign Exchange Administration, the
Interim Provisions on the Management of Foreign Debts, the Statistical Monitoring of Foreign Debts Tentative Provisions, the Detailed
Rules for the Implementation of Provisional Regulations on Statistics and Supervision of External Debt, and the Administrative Measures
for Registration of Foreign Debts. Under these rules and regulations, a shareholder loan in the form of foreign debt made to a PRC entity
does not require the prior approval of SAFE. However, such foreign debt must be registered with and recorded by SAFE or its local branches
within fifteen (15) business days after entering into the foreign debt contract. Pursuant to these rules and regulations, the maximum
amount of the aggregate of (i) the outstanding balance of foreign debts with a term not longer than one year, and (ii) the accumulated
amount of foreign debts with a term longer than one year, of a FIE shall not exceed the difference between its registered total investment
and its registered capital, or Total Investment and Registered Capital Balance.

 On
January 12, 2017, the People's Bank of China, or PBOC, promulgated the Notice of the People's Bank of China on Matters concerning
the Macro-Prudential Management of Full-Covered Cross-Border Financing, or PBOC Circular 9, which sets forth an upper limit for PRC entities,
including FIEs and domestic enterprises, regarding their foreign debts. Pursuant to PBOC Circular 9, the outstanding cross-border financing
of an enterprise (the outstanding balance drawn, here and below) shall be calculated using a risk-weighted approach, or Risk-Weighted
Approach, and shall not exceed the specified upper limit, namely: risk-weighted outstanding cross-border financing the upper
limit of risk-weighted outstanding cross-border financing. Risk-weighted outstanding cross-border financing = outstanding amount
of RMB and foreign currency denominated cross-border financing * maturity risk conversion factor * type risk conversion factor +
outstanding foreign currency denominated cross-border financing * exchange rate risk conversion factor. Maturity risk conversion factor
shall be 1 for medium- and long-term cross-border financing with a term of more than one year and 1.5 for short-term cross-border financing
with a term of one year or less than one year. Type risk conversion factor shall be 1 for on-balance-sheet financing and 1 for off-balance-sheet
financing (contingent liabilities) for the time being. Exchange rate risk conversion factor shall be 0.5. The PBOC Circular 9 further
provides that the upper limit of risk-weighted outstanding cross-border financing for enterprises, or Net Asset Limits, shall be 200%
of its net assets. The PBOC Circular 9 does not supersede the Interim Provisions on the Management of Foreign Debts, but rather serves
as a supplement to it. PBOC Circular 9 provided for a one-year transitional period, or the Transitional Period, from its promulgation
date for FIEs, during which period FIEs could choose to calculate their maximum amount of foreign debt based on either (i) the Total
Investment and Registered Capital Balance, or (ii) the Risk-Weighted Approach and the Net Asset Limits. Under the PBOC Circular 9, after
the Transitional Period ends on January 11, 2018, the PBOC and SAFE will determine the cross-border financing administration mechanism
for the foreign-invested enterprises after evaluating the overall implementation of PBOC Circular 9. In addition, according to PBOC Circular
9, a foreign loan must be filed with SAFE through the online filing system of SAFE after the loan agreement is signed and at least three
business days prior to the borrower withdraws any amount from such foreign loan.

 Regulation
on Foreign Exchange Registration of Overseas Investment by PRC Residents

 On
July 4, 2014, SAFE issued Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents' Offshore Investment
and Financing and Roundtrip Investment Through Special Purpose Vehicles, or SAFE Circular 37, that requires PRC residents, including
PRC resident natural persons or PRC entities, to register with SAFE or its local branch in connection with their establishment or control
of an offshore entity established for the purpose of overseas investment or financing. The term "control" under SAFE Circular
37 is broadly defined as the operation rights, beneficiary rights or decision-making rights acquired by the PRC residents in the offshore
special purpose vehicles by such means as acquisition, trust, proxy, voting rights, repurchase, convertible bonds or other arrangements.
In addition, such PRC residents must update their SAFE registrations when the offshore special purpose vehicle undergoes material events
relating to any change of basic information (including change of such PRC citizens or residents, name and operation term), increases
or decreases in investment amount, transfers or exchanges of shares, or mergers or divisions. SAFE further enacted the Notice on Further
Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment, or SAFE Notice 13, which allows PRC residents
to register with qualified banks in connection with their establishment or control of an offshore entity established for the purpose
of overseas investment or financing. However, remedial registration applications made by PRC residents that previously failed to comply
with the SAFE Circular 37 continue to fall under the jurisdiction of the relevant local branch of SAFE. Few remedial registration applications
have in fact been approved by the SAFE or its local branch.

 In
the event that a PRC resident holding interests in a special purpose vehicle fails to fulfill the required SAFE registration, the PRC
subsidiaries of that special purpose vehicle may be prohibited from distributing profits to the offshore parent and from carrying out
subsequent cross-border foreign exchange activities, and the special purpose vehicle may be restricted in its ability to contribute additional
capital into its PRC subsidiary. Moreover, failure to comply with the various SAFE registration requirements described above could result
in liability under PRC law for evasion of foreign exchange controls.

Relating to Employment, Social Insurance and housing fund

 The
Labor Law and The Labor Contract Law provide requirements concerning employment contracts between an employer and its employees. If an
employer fails to enter into a written employment contract with an employee within one year from the date on which the employment relationship
is established, the employer must rectify the situation by entering into a written employment contract with the employee and pay the
employee twice the employee's salary for the period from the day following the lapse of one month from the date of establishment
of the employment relationship to the day prior to the execution of the written employment contract. All employers must comply with local
minimum wage standards. The Labor Contract Law and its implementation rules also require compensation to be paid upon certain terminations,
which significantly affects the cost of reducing workforce for employers. In addition, if an employer intends to enforce a non-compete
provision with an employee in an employment contract or non-competition agreement, it has to compensate the employee on a monthly basis
during the term of the restriction period after the termination or ending of the labor contract. Employers in most cases are also required
to provide a severance payment to their employees after their employment relationship are terminated. Violations of the PRC Labor Contract
Law and the PRC Labor Law may result in the imposition of fines and other administrative and criminal liability in the case of serious
violations.

 Enterprises
in China are required by PRC laws and regulations to participate in certain employee benefit plans, including social insurance funds,
namely a pension plan, a medical insurance plan, an unemployment insurance plan, a work-related injury insurance plan and a maternity
insurance plan, and a housing provident fund, and contribute to the plans or funds in amounts equal to certain percentages of salaries,
including bonuses and allowances, of the employees as specified by the local government from time to time at locations where they operate
their businesses or where they are located. According to the Social Insurance Law, an employer that fails to make social insurance contributions
may be ordered to pay the required contributions within a stipulated deadline and be subject to a late fee. If the employer still fails
to rectify the failure to make social insurance contributions within the stipulated deadline, it may be subject to a fine ranging from
one to three times the amount overdue. According to the Regulations on Management of Housing Fund, an enterprise that fails to make housing
fund contributions may be ordered to rectify the noncompliance and pay the required contributions within a stipulated deadline; otherwise,
an application may be made to a local court for compulsory enforcement.

on Taxes

 Enterprise
Income Tax

 Under
the Enterprise Income Tax Law of the PRC, or the EIT Law, which became effective on January 1, 2008 and was subsequently amended on February
24, 2017 and December 29, 2018, and its implementing rules, enterprises are classified as resident enterprises and non-resident enterprises.
PRC resident enterprises typically pay an enterprise income tax at the rate of 25% while non-PRC resident enterprises without any branches
in the PRC should pay an enterprise income tax in connection with their income from the PRC at the tax rate of 10%. An enterprise established
outside of the PRC with its "de facto management bodies" located within the PRC is considered a "resident enterprise,"
meaning that it can be treated in a manner similar to a PRC domestic enterprise for enterprise income tax purposes. The implementing
rules of the EIT Law define a de facto management body as a managing body that in practice exercises "substantial and overall management
and control over the production and operations, personnel, accounting, and properties" of the enterprise. Enterprises qualified
as "High and New Technology Enterprises" are entitled to a 15% enterprise income tax rate rather than the 25% uniform statutory
tax rate. The preferential tax treatment continues as long as an enterprise can retain its "High and New Technology Enterprise"
status.

 The
EIT Law and the implementation rules provide that an income tax rate of 10% should normally be applicable to dividends payable to investors
that are "non-resident enterprises," and gains derived by such investors, which (a) do not have an establishment or place
of business in the PRC or (b) have an establishment or place of business in the PRC, but the relevant income is not effectively connected
with the establishment or place of business to the extent such dividends and gains are derived from sources within the PRC. Such income
tax on the dividends may be reduced pursuant to a tax treaty between China and other jurisdictions. Pursuant to the Arrangement Between
the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation on Income, or the Double Tax
Avoidance Arrangement, and other applicable PRC laws, if a Hong Kong resident enterprise is determined by the competent PRC tax authority
to have satisfied the relevant conditions and requirements under such Double Tax Avoidance Arrangement and other applicable laws, the
10% withholding tax on the dividends the Hong Kong resident enterprise receives from a PRC resident enterprise may be reduced to 5% upon
receiving approval from in-charge tax authority. However, based on the Notice on Certain Issues with Respect to the Enforcement of Dividend
Provisions in Tax Treaties issued on February 20, 2009 by the SAT, if the relevant PRC tax authorities determine, in their discretion,
that a company benefits from such reduced income tax rate due to a structure or arrangement that is primarily tax-driven, such PRC tax
authorities may adjust the preferential tax treatment; and based on the Announcement on Relevant Issues Concerning the "Beneficial
Owners" in Tax Treaties issued on February 3, 2018 by the SAT and effective from April 1, 2018, which replaces the Notice on the
Interpretation and Recognition of Beneficial Owners in Tax Treaties and the Announcement on the Recognition of Beneficial Owners in Tax
Treaties by the SAT, comprehensive analysis based on the stipulated factor therein and actual circumstances shall be adopted when recognizing
the "beneficial owner" and agents and designated wire beneficiaries are specifically excluded from being recognized as "beneficial
owners."

 On
January 17, 2019, the State Taxation Administration issued the notice on the scope of small-scale and low-profit corporate income tax
preferential policies of the Ministry of Finance and the State Administration of Taxation ("MOF and SAT"), [2019] No. 13
for small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000 (including RMB1,000,000), approximately
$142,209, their income is reduced by 25% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially
resulting in a favorable income tax rate of 5%. While for the portion of annual taxable income exceeding RMB1,000,000, approximately
$142,209, but not more than RMB3,000,000, approximately $426,627, the income is reduced by 50% to the taxable income, and enterprise
income tax is paid at 20% tax rate, which is essentially resulting in a favorable income tax rate of 10%. MOF and SAT [2021] No.12 provides
an enterprise income tax rate of 2.5% on a small-scale and low-profit enterprises whose annual taxable income less than RMB1,000,000,
approximately $142,209, from January 1, 2021 to December 31, 2022. MOF and SAT [2022] No.13 also provides an enterprise income tax rate
of 5% on a small-scale and low-profit enterprises whose annual taxable income more than RMB1,000,000, approximately $142,209, but not
more than RMB3,000,000, approximately $426,627, from January 1, 2022 to December 31, 2024. 2022. MOF and SAT [2023] No.12 also provides
an enterprise income tax rate of 5% on a small-scale and low-profit enterprises whose annual taxable income more than RMB1,000,000, approximately
$142,209, but not more than RMB3,000,000, approximately $426,627, from January 1, 2023 to December 31, 2027.The qualifications of small-scale
and low-profit enterprises were examined annually by the Tax Bureau. All of the Company's PRC subsidiaries, except for Xixingdao,
 FVT Supply Chain and FLTT, met the criteria of small-scale and low-profit enterprises.

 Value-added
Tax

to applicable PRC tax regulations, any entity or individual conducting business in the service industry used to be generally required
to pay a business tax at the rate of 5% on the revenues generated from providing such services. However, if the services provided are
related to technology development and transfer, such business tax may be exempted subject to approval by the relevant tax authorities.
Whereas, pursuant to the Provisional Regulations on Value-Added Tax of the PRC and its implementation regulations, unless otherwise specified
by relevant laws and regulations, any entity or individual engaged in the sales of goods, provision of processing, repairs and replacement
services and importation of goods into China is generally required to pay a value-added tax, or VAT, for revenues generated from sales
of products, while qualified input VAT paid on taxable purchase can be offset against such output VAT.

 In
November 2011, the Ministry of Finance and the State Administration of Taxation promulgated the Pilot Plan for Imposition of Value-Added
Tax to Replace Business Tax. In March 2016, the Ministry of Finance and the State Administration of Taxation further promulgated the
Notice on Fully Promoting the Pilot Plan for Replacing Business Tax by Value-Added Tax, which became effective on May 1, 2016. Pursuant
to the pilot plan and relevant notices, VAT is generally imposed in lieu of business tax in the modern service industries, including
the VATS, on a nationwide basis. VAT of a rate of 6% applies to revenue derived from the provision of some modern services. Certain small
taxpayers under PRC law are subject to reduced value-added tax at a rate of 3%. Unlike business tax, a taxpayer is allowed to offset
the qualified input VAT paid on taxable purchases against the output VAT chargeable on the modern services provided.

 On
April 4, 2018, the Ministry of Finance and the State Administration of Taxation issued the Notice on Adjustment of VAT Rates, which came
into effect on May 1, 2018. According to the abovementioned notice, the taxable goods previously subject to VAT rates of 17% and 11%,
respectively, become subject to lower VAT rates of 16% and 10%, respectively, starting from May 1, 2018. Furthermore, according to the
Announcement on Relevant Policies for Deepening Value-added Tax Reform jointly promulgated by the Ministry of Finance, the State Administration
of Taxation and the General Administration of Customs, which became effective on April 1, 2019, the taxable goods previously subject
to VAT rates of 16% and 10%, respectively, become subject to lower VAT rates of 13% and 9%, respectively, starting from April 1, 2019.
Under Provisional Regulations of the People's Republic of China on Value-added Tax, amended and effective on November 19, 2017,
for entities that are VAT small taxpayers, VAT is levied at a levy rate of 3%. On February 29, 2020, the State Administration of Taxation
issued the Announcement on Taxation Matters to Support Individual Businesses in Resumption of Business, during the COVID-19, the small
taxpayers are allowed to enjoy the preferred tax policy, tax rate from 3% to 1% for the period from March 1, 2020 to December 31, 2021.

related to Business Operations in Hong Kong

 Personal
Data (Privacy) Ordinance

 The
Personal Data (Privacy) Ordinance (Cap. 486, Laws of Hong Kong) (the "PDPO") passed in 1995 and took effect from December
1996 (except certain provisions). The PDPO underwent major amendments in 2012, the most significant of which being the introduction of
direct marketing provisions and other additional protection to cope with new privacy challenges and address public concerns. In 2021,
the PDPO underwent another major amendments. The amendments aim to combat doxxing acts that are intrusive to personal data privacy, through
the criminalisation of doxxing acts, and conferring on the Privacy Commissioner for Personal Data statutory powers to issue cessation
notices demanding the cessation or restriction of disclosure of doxxing content. The amendments also confer on the Privacy Commissioner
power to conduct criminal investigation and institute prosecution for doxxing cases, so as to strengthen enforcement against doxxing
cases.

 The
PDPO is applicable to both the private and the public sectors. It is technology-neutral and principle-based. The Data Protection Principles
("DPPs" or "DPP"), which are contained in Schedule 1 to the PDPO, outline how data users should collect, handle
and use personal data, complemented by other provisions imposing further compliance requirements. The collective objective of DPPs is
to ensure that personal data is collected on a fully-informed basis and in a fair manner, with due consideration towards minimising the
amount of personal data collected. Once collected, the personal data should be processed in a secure manner and should only be kept for
as long as necessary for the fulfillment of the purposes of using the data. Use of the data should be limited to or related to the original
collection purpose. Data subjects are given the right to access and make correction to their data.

 DPP1
Purpose and Manner of Collection.

 DPP1
provides that personal data shall only be collected for a lawful purpose directly related to a function or activity of the data user.
The data collected should be necessary and adequate but not excessive for such purpose. The means of collection should be lawful and
fair. If we collect personal data from data subjects directly, we should inform the data subjects whether it is obligatory or voluntary
to supply the data, the purpose of using their data and the classes of person to whom their data may be transferred. We should also inform
them of the right and means to request access to and correction of their data.

 DPP2
Accuracy and Duration of Retention.

 DPP2
requires data users to take all practicable steps to ensure that personal data is accurate and is not kept longer than is necessary for
the fulfillment of the purpose for which the data is used. If we engage a data processor for handling personal data of other persons,
we should adopt contractual or other means to ensure that the data processor comply with the mentioned retention requirement. Section
26 of PDPO requires data users to take all practicable steps to erase personal data that is no longer required for the purpose for which
the data is used, unless erasure is prohibited by law or is not in the public interest. Section 26 could be engaged when a data user
fails to respond to a complaint or request from a data subject for erasure of personal data. This situation attracts a heavier criminal
gravity than just keeping the data longer than is necessary under DPP2. Contravention of the requirement under section 26 is an offence,
punishable by a fine of up to HK$10,000.

 DPP3
Use of Data.

 DPP3
prohibits the use of personal data for any new purpose which is not or is unrelated to the original purpose when collecting the data,
unless with the data subject's express and voluntary consent. A data subject can withdraw his/her consent previously given by written
notice. Regarding restrictions on use of personal data, Part 6A of the PDPO further requires that data users must obtain informed consent
before using a data subject's personal data for direct marketing or transferring the data to a third party for direct marketing.
The consent must be an explicit indication by the data subject and broadly covers an indication of no objection. In other words, silence
cannot constitute consent. Besides, the consent must be an informed one. The data user must inform the data subject of the intention
to use his/her personal data for direct marketing, the fact that the data user cannot so use the data unless with consent of the data
subject, the kinds of personal data to be used, the classes of marketing subjects to be involved. The data user must also notify the
data subject of the right to opt out. If the data user intends to transfer the data to a third party for direct marketing, he/she should
inform the data subject of such intention, the classes of transferees, the classes of marketing subjects to be involved and the fact
that the transfer is for a gain, etc.

 DPP4
Data Security.

 DPP4
requires that data users take all practicable steps to protect the personal data they hold against unauthorised or accidental access,
processing, erasure, loss or use. Data users should have particular regard to the nature of the data, the potential harm if those events
happen, measures taken for ensuring the integrity, prudence and competence of persons having access to the data, etc. If we engage a
data processor to process the personal data held, we must adopt contractual or other means to ensure that the data processor comply with
the mentioned data security requirement.

 DPP5
Openness and Transparency.

 DPP5
obliges data users to take all practicable steps to ensure openness of their personal data policies and practices, the kind of personal
data held and the main purposes for holding it.

 DPP
6 Access and Correction.

 DPP6
provides data subjects with the right to request access to and correction of their own personal data. A data user should give reasons
when refusing a data subject's request to access to or correction of his/her personal data. DPP6 is supplemented by detailed provisions
in Part 5 of the PDPO which cover the manner and timeframe for compliance with data access requests and data correction requests, the
circumstances in which a data user may refuse such requests, etc. Data users are also required to maintain a log book to record all refusals
made.

 Enforcement.

 The
Office of the Privacy Commissioner for Personal Data ("the Commissioner") was established under PDPO as the dedicated data
privacy regulator. When the Commissioner receives a complaint or has reasonable grounds to believe there may be a contravention of PDPO,
the Commissioner may conduct an investigation of the suspected contravention and publish a report setting out the investigation results
and recommendations if it is in the public interest to do so. If, upon completion of an investigation, it is found that the relevant
data user is contravening or has contravened PDPO, the Commissioner may issue an enforcement notice to the data user directing remedial
and/or preventive steps to be taken.

 Contravention
of a DPP is not an offence. However, contravention of certain provisions of PDPO is an offence. The Commissioner may carry out criminal
investigation and institute prosecution for offences under section 64 of the PDPO regarding doxxing-related offences and the direct marketing
provisions etc, as well as certain relevant offences. Depending on the severity of the cases, the Commissioner will decide whether to
exercise the prosecution power in his or her own name, or refer cases involving suspected commission of other offences to the Police
or the Department of Justice for following up.

 Data
subjects may also seek compensation by civil action from data users for damage caused by a contravention of the PDPO. The Commissioner
may provide legal assistance to the aggrieved data subjects if the Commissioner thinks fit to do so. In addition, the Commissioner may
proactively carry out an inspection of a personal data system of a data user or a class of data users for the purpose of making recommendations
on how compliance may be enhanced by the data user(s). The Commissioner is also empowered to issue codes of practices to provide practical
guidance on how to comply with the requirements under PDPO. Non-compliance with a code of practice itself is not an offence but can be
a proof of contravention of the relevant requirement under PDPO.

 Exemptions

 PDPO
provides a number of exemptions from some compliance requirements under particular circumstances. Examples include crime prevention or
prosecution, security and defence, statistics and research, news activity, protecting a data subject's health etc. There is also
an exemption if the use of personal data is required or authorised by law or court order or is required for exercising or defending legal
rights in Hong Kong. An exemption is a defence for a data user to avoid liability when he/she fails to comply with certain compliance
requirements under PDPO.

 Laws/regulations
in Hong Kong that may result in oversight over data security

 The
Organized and Serious Crime Ordinance ("OSCO") is one of the major statutory exceptions to the duty of confidentiality over
data security. A person is required under OSCO to make a disclosure to authorised officers (eg, police officers) where that person knows
or suspects that any property, among others, in whole or in part directly or indirectly represents the proceeds of an indictable offence.
In the context of the Company's business and the offering, this may require the disclosure to an authorised officer of information
subject to the duty of confidentiality.

 Persons
who come into possession of official information relating to security or intelligence services, defence, international relations or criminal
investigations are, under certain circumstances, prohibited under the Official Secrets Ordinance from disclosing such information. The
Official Secrets Ordinance is unlikely to be relevant to an investigation unless the person being investigated has a relationship with
a government that would put that person in a position such that it is likely to receive such information.

 Under
the Hong Kong National Security Law, it is an offence to unlawfully provide state secrets or intelligence concerning national security
to a foreign country or an institution, organisation or individual outside the mainland, Hong Kong and Macao of the People's Republic
of China. For this purpose, state secrets and intelligence concerning national security are to be defined and determined under PRC law.

 Competition
Ordinance

 The
Competition Ordinance (Cap. 619, Laws of Hong Kong) ("Competition Ordinance") is to prohibit conduct that prevents, restricts
or distorts competition in Hong Kong. It also aims to prohibit mergers that substantially lessen competition in Hong Kong and to provide
for incidental and connected matters.

 The
Competition Ordinance includes:

The First Conduct Rule, which prohibits undertakings from making or giving effect to agreements or engaging in a concerted practice,
or, as a member of an association of undertakings, make or give effect to a decision of the association, if the object or effect of the
agreement, concerted practice or decision is to prevent, restrict or distort competition in Hong Kong;

The Second Conduct rule, which prohibits undertakings which have a substantial degree of market power in a market to abuse that power
by engaging in conduct that has as its object or effect the prevention, restriction or distortion of competition in Hong Kong; and

The Merger Rule, which prohibits undertakings to directly or indirectly carry out a merger that has, or is likely to have, the effect
of substantially lessening competition in Hong Kong.

 Upon
breach, the Competition Tribunal may impose pecuniary penalty, director disqualifications, and prohibition, damage and other orders on
offenders. For pecuniary penalty, section 93 of the Competition Ordinance enables the Competition Tribunal to award a penalty up to 10%
of the turnover of the undertakings involved for up to three years in which the contravention occurs.

 Intellectual
Property

 Protection
of our intellectual property is a strategic priority for our business. We rely primarily on a combination of trademark, patent, copyright,
computer software and trade secret laws to establish and protect our proprietary rights.

 We
currently have forty-eight registered trademarks in China as follows:

 Trademark

 Issue
 Date

 Expiration
 Date

 Trademark

 9680266

 August 21, 2012

 August 20, 2032

 9680456

 August 21, 2012

 August 20, 2032

 11644487

 March 28, 2014

 March
 27, 2024

 49535965

 June 7, 2021

 June 7, 2031

 9680892

 August 14, 2012

 August 13, 2032

 9680140

 August 14, 2012

 August 13, 2032

 37266704

 December 21, 2019

 December 20, 2029

 37258329

 December 21, 2019

 December 20, 2029

 56018617

 November 28, 2021

 November 27, 2031

 56028957

 January 28, 2022

 January 27, 2032

 49387234

 April 31, 2021

 April
 20, 2031

 54418661

 October 7, 2021

 October 6, 2031

 54431753

 October 7, 2021

 October 6, 2031

 59106330

 February 28, 2022

 February 27, 2032

 59116758

 March 7, 2022

 March 6, 2032

 59109733

 March 7, 2022

 March 6, 2032

 59114921

 March 7, 2022

 March 6, 2032

 59891751

 59907306

 59904340

 59894875

 59902356

 59904355

 67354165

 67353153

 67351825

 67374802

 67364553

 67365560

 67375841

 67369427

 67369228

 67370603

 67354189

 67358761

 67372685

 67375031

 67370104

 67377198

 67370131

 67360139

 67358225

 67374510

 67375047

 67356607

 67351938

 May 21, 2023

 May 20, 2033

 67363910

 May 21, 2023

 May 20, 2033

 68826372

 June 21, 2023

 June 20, 2033

 Some
of our products and services bear the registered trademarks of " " (" ") or "Shui
Yi Jia." These trademarks are owned by Yuwen Li, one of our shareholders. Yuwen Li has signed a license agreement with Xixingdao
to authorize Xixingdao and its subsidiaries to use those trademarks at no cost to us during the period from October 2019 to October 2029.

 We
currently have the following one registered patent in China:

 Patent

 Authorization
 Date

 Expiration
 Date

 Patent

 CN201811179554.7

 2020-10-13

 2038-10-09

 A logistics container that
 is easy to place and prevent damage to fragile items

 We
currently have the following four registered works copyrights in China:

 Registration
 Date

 -2020-F-01147904

 2020-11-03

 -2020-F-00001673

 2020-10-30

 -2020-F-00001391

 2020-10-29

 -2021-F-00297018

 2021-12-28

 We
currently have the following twenty registered software copyrights in China:

 First
 Issue Date

 Registration
 Date

 2021SR0833407

 2020-07-21

 Barreled water online distribution
 management system

 2021SR0833438

 2020-07-20

 Barreled water sales financial
 statement management system

 2021SR0833409

 2020-11-25

 water transportation service management system

 2021SR0833441

 2020-09-23

 Environmental
 monitoring and management system for barreled water storage

 2021SR0833447

 2020-12-21

 Dispatching
 management system for barreled water transport vehicles

 2021SR0833448

 2021-01-20

 water sales service management system

 2021SR0833451

 2020-07-24

 water sales customer management system

 2021SR0833369

 2020-07-13

 Statistical
 system of barreled water sales data

 2021SR0833366

 2020-08-27

 water storage service management system

 2021SR0833450

 2020-07-16

 water sales financial service management system

 2021SR1675516

 2019-07-22

 Wine
 trading internet platform system

 2021SR1675492

 2019-07-22

 Wine
 trading customer software

 2021SR1675466

 2019-10-18

 Food
 supermarket trading system

 2021SR1684106

 2019-02-10

 2021-11-10

 Origin
 tracking label identification system software

 2021SR1684107

 2019-08-29

 2021-11-10

 Food
 safety data tracking system

 2021SR1671192

 2019-08-20

 Wine
 e-commerce portal management platform

 2021SR1671159

 2019-06-17

 Wine
 distributor management system

 2021SR1671739

 2019-04-23

 Wine
 product online sales promotion exchange platform

 2022SR0044569

 2019-11-11

 2022-01-07

 FVTI
 online Food Trading Information Checking Platform

 2022SR0044643

 2019-09-17

 2022-01-07

 FVTI
 Store Order Data Statistical Analysis System

 We
currently have the following registered Internet domain names in China:

 Internet
 domain names

 Expiration
 Date

 hsjt-fg.com

 2023-12-27

.cn

.com

 2023-09-20

.com

.cn

.online

 2023-09-24

.

 fvti.online

 2025-02-10

 fvti.show

 2025-09-08

 fvti.mobi

 Human
Capital Resources

 As
of the date of this Annual Report, the Company had 68 full-time employees and no part-time employees in the following functions:

 Function

 of Employees

 Finance

 Sales and marketing

 E-Commerce and supply chain

 Warehouse and delivery

 General and administrative

 Total

 All
of our employees are based in the cities of Shenzhen and Dongguan, where our operations are located.

 Our
board of directors provides oversight on certain human capital matters, including diversity, and our employee rewards and benefits program.
Under the board's oversight, the Company conducts employee retention reviews to attract, retain and develop a workforce that aligns
with our values and strategies.

 Corporate
Culture and People Philosophy

 We
believe that employees with strong people philosophy and people-based corporate culture are likely to develop a strong sense of belonging
in the organization. We care about employees' interests and personal preferences and offer each employee with the best job suitable
for their skillset and career interest. We support a transparent and accessible corporate culture to make management and team leaders
accessible to employees. We value the benefits of two-ways communications (top-down and bottom-up) to hear the voices from the employees
to promote the strong sense of belonging in our Company.

 Employee
Training and Talent Development

 Training
and self-development programs are provided to employees periodically which include customer service training, financial controller training,
delivery procedures training, compliance training on industry related government rules and regulations, as well as informal training.
Employees are encouraged to participate in different training programs to enhance their problem-solving skills, advancement and continuous
self-development.

 We
support employee involvement and personal and professional development in our Company. We engage employees and offer continued opportunities
for growth.

 Diversity,
Inclusion and Equal Opportunities

 We
are committed to gender equality by providing fair recruitment, training and promotion opportunities for all employees. At the year-end
of 2023, female employees represented approximately 38% of the total workforce. We aim to invest in developing talented leaders across
all management levels including increased women members of management at our company and subsidiaries.

 In
addition to gender equality, we also seek to hire employees from different educational background, profession, demographics and regions.
We have hired employees from different ethnicities, backgrounds and regions all across mainland China. In order to retain the best available
candidates, we evaluate the qualifications and experience of the employees through interviews and professional references to recruit
the right persons from a wide range of sources. We aim to create an inclusive workplace, further promote a diverse workforce, and bring
in new cultures and energy.

 Employment
Benefits

 As
required by PRC regulations, we participate in various government statutory employee benefit plans, including social insurance funds,
namely a pension contribution plan, a medical insurance plan, an unemployment insurance plan, a work-related injury insurance plan, a
maternity insurance plan and a housing provident fund. We are required under PRC law to make contributions to employee benefit plans
at specified percentages of the salaries, bonuses and certain allowances of our employees, up to a maximum amount specified by the local
government from time to time. We previously had not made all employee benefit payments, and may be required to make up the contributions
for these plans as well as to pay late fees and fines.

 We
believe that we maintain a good working relationship with our employees, and we have not experienced any major labor disputes.

 Environmental Matters

 Our
business, operations and facilities are subject to PRC national and local environmental laws and regulatory requirements. Regulatory
authorities impose requirements that regulate the emission, discharge, pollution and disposal of hazardous materials, among other things,
and require us to obtain and maintain relevant permits in connection with our operations. Although management believes that our operations
and facilities are in material compliance with such laws and regulations, future changes in these laws, regulations or interpretations
thereof or changes in our operations may require additional capital and resources to ensure compliance with applicable laws and regulations
or engage in remedial actions if there are any violations.

 Available
Information

 Our
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to
Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), are filed with the Securities
and Exchange Commission (the "SEC"). Such reports and other information filed by the Company with the SEC are available free
of charge on our corporate website ( as soon as reasonably practicable after they are electronically filed with
or furnished to the SEC. The SEC maintains an internet site that contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC at www.sec.gov. The foregoing website addresses are provided as inactive textual
references only. We periodically provide other information for investors on our corporate website. This includes press releases and other
information about financial performance and information on corporate governance. The information contained on the websites referenced
in this Form 10-K is not part of this report and is not incorporated by reference into this filing.

 Item
1A. Risk Factors

 Investing
in our securities involves a high degree of risk. Before making any investment decision, you should consider carefully the following
risks and other information in this report, including our consolidated financial statements and related notes. The risks and uncertainties
we describe are not the only ones facing us. Additional risks and uncertainties that we are unaware of or that we believe are not material
at the time could also materially adversely affect our business, financial condition or results of operations. In any case, the value
of our common stock could decline, and you could lose all or part of your investment. Please also see the section entitled "Cautionary
Note Regarding Forward-Looking Statements."

 Risks
Related to Our Business and Industry

 We
have a limited operating history that you can use to evaluate us, and the likelihood of our success must be considered in light of the
problems, expenses, difficulties, complications and delays frequently encountered by a small developing company.

 We
were incorporated in Nevada in March 2014. For the years ended December 31, 2023 and 2022, we generated $4,236,565 and $9,234,079, respectively,
in revenues, and had net loss of $3,637,351 and $2,156,679, respectively. The likelihood of our success must be considered in the light
of the problems, expenses, difficulties, complications and delays frequently encountered by a small company starting a new business enterprise
and the highly competitive environment in which we are operating. We have a limited operating history upon which an evaluation of our
future success or failure can be made. Our ability to achieve and maintain profitability and positive cash flow is dependent upon:

 Our ability to market our
 products;

 Our ability to generate
 revenue;

 Our ability to obtain higher
 gross profit products;

 Our ability to obtain healthier
 and economical products; and

 Our ability to raise the
 capital necessary to continue marketing and developing our product and online platform.

 We have a history of operating losses, and continued
future operating losses would have a material adverse effect on our ability to continue as a going concern.

 We had net operating losses of approximately $4.3
million and $2.2 million for the years ended December 31, 2023 and 2022, respectively. There can be no assurance that we will have net
income in future periods. Our history of operating losses and our projections of the level of capital that will be required for our future
expanded operations may impair our ability to grow our business at the level we desire. If in the future we continue to incur operating
losses or are unable to obtain the requisite amount of capital needed to fund our planned operations, it could have a material adverse
effect on our business and ability to continue as a going concern.

to successfully execute our online and offline-channel strategy and the cost of our investments in our online platform and technology
may materially adversely affect our gross profit, net sales and financial performance

 Our
food and beverage supply chain business continue to rapidly evolve and consumers increasingly embrace digital shopping. As a result,
the portion of total consumer expenditures with retailers and wholesale stores occurring through digital platforms is increasing and
the pace of this increase could continue to accelerate. Our strategy, which includes investments in our online platform, technology,
acquisitions and store remodels, may not adequately or effectively allow us to continue to grow our online platform transaction volume,
increase comparable store sales, maintain or grow our overall market position or otherwise offset the impact on the growth of our business
of a moderated pace of new store openings.

to successfully execute this strategy may adversely affect our market position, gross profit, net sales and financial performance which
could also result in impairment charges to intangible assets or other long-lived assets. In addition, a greater concentration of online
platform sales, including increasing online food sales, could result in a reduction in the amount of traffic in our stores, which would,
in turn, reduce the opportunities for cross-store sales of food merchandise that such traffic creates and could reduce our sales within
our stores and materially adversely affect our financial performance.

 COVID-19
pandemic has had, and may continue to have, an adverse effect on our business and our financial results.

 In
December 2019, a novel strain of coronavirus first emerged in China, which has and is continuing to spread throughout the world. On January
30, 2020, the World Health Organization declared the outbreak of the COVID-19 disease a "Public Health Emergency of International
Concern." On March 11, 2020, the World Health Organization characterized the outbreak as a "pandemic." The COVID-19
outbreak has resulted in, and a significant outbreak of other infectious diseases could result in, a widespread health crisis that could
materially and adversely affect the economies and financial markets worldwide, and the operations and financial position of any potential
target business with which we consummate a business combination could be materially and adversely affected. Furthermore, we may be unable
to complete a business combination if continued concerns relating to COVID-19 restrict travel, limit the ability to have meetings with
potential investors, if the target company's personnel, vendors and service providers are unavailable to negotiate and consummate
a transaction in a timely manner, or if COVID-19 causes a prolonged economic downturn. The extent to which COVID-19 impacts our search
for business combinations will depend on future developments, which are highly uncertain and cannot be predicted, including new information
which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. If the disruptions
posed by COVID-19 or other matters of global concern continue for an extensive period of time, our ability to consummate a business combination,
or the operations of a target business with which we ultimately consummate a business combination, may be materially adversely affected.

 In
addition, our ability to consummate a business combination may be dependent on the ability to raise equity and debt financing which may
be impacted by COVID-19 and other events, including as a result of increased market volatility, decreased market liquidity and third-party
financing being unavailable on terms acceptable to us or at all.

 COVID-19
could negatively affect our internal controls over financial reporting as a portion of our workforce is required to work from home and
therefore new processes, procedures, and controls could be required to respond to changes in our business environment. Further, should
any key employees become ill from COVID-19 and unable to work, the attention of the management team and resources could be diverted.

 The
potential effects of COVID-19 could also heighten the risks we face related to each of the risk factors disclosed below. As COVID-19
and its impacts are unprecedented and continuously evolving, the potential impacts to these risk factors remain uncertain. As a result,
COVID-19 may also materially adversely affect our operating and financial results in a manner that is not currently known to us or that
we do not currently consider may present significant risks to our operations.

 We
operate in a highly competitive industry, and our failure to compete effectively could adversely affect our market share, revenues and
growth prospects.

 The
food and beverage industry in China are highly fragmented and intensely competitive. Industry participants include large scale and well-funded
manufacturers and distributors, as well as smaller counterparts. We believe that the market is also highly sensitive to the introduction
of new products, including the ever-growing list of new alcohol and non-alcohol beverages, water and edible oil products, which may rapidly
capture a significant share of the market. Presently most of our business operations and product distribution are concentrated in Guangdong
province, China, and we expect to expand our product sales into broader markets and more geographic areas in China. We compete for sales
with heavily advertised national and international brands sponsored by large food companies or distribution networks. Our competitors
include China home-grown manufacturers and distributors, foreign companies with China operations, as well as product importers and distributors
that carry the same categories of products as ours. We may not be able to compete effectively and our attempt to do so may require us
to reduce our prices and result in lower margins. Failure to effectively compete could adversely affect our market share, revenues, and
growth prospects.

 Our
failure to appropriately respond to changing consumer preferences and demand for new products could significantly harm our customer relationships
and product sales.

 Our
business is particularly subject to changing consumer trends and preferences. Our continued success depends in part on our ability to
anticipate and respond to these changes, and we may not be able to respond in a timely or commercially appropriate manner to these changes.
If we are unable to do so, our customer relationships and product sales could be harmed significantly.

 Furthermore,
the food and beverage industry in particular is characterized by rapid and frequent changes in demand for products and new product introductions.
Our failure to accurately predict these trends could negatively impact consumer opinion with respect to the products we distribute. This
could harm our customer relationships and cause losses to our market share. The success of our new product offerings depends upon a number
of factors, including our ability to accurately anticipate customer needs, identify the right suppliers, successfully commercialize new
products in a timely manner, price our products competitively, deliver our products in sufficient volumes and in a timely manner, and
differentiate our product offerings from those of our competitors.

 If
we do not introduce new products or make sufficient adjustments to meet the changing needs of our customers in a timely manner, some
of our products could become obsolete in the view of consumers, which could have a material adverse effect on our revenues and operating
results.

 Competitors
may enter our business sector with superior products which could affect our business adversely.

 We
believe that barriers to entry are low because of economies of scale, cost advantage and brand identity. Potential competitors may enter
this sector with superior products. This would have an adverse effect upon our business and our results of operations. In addition, a
high level of support is critical for the successful marketing and recurring sales of our products. Despite having accumulated customers
from the past seven years, we may still need to continue to improve our marketing strategic, products and platform in order to assist
potential customers in using our platform, and we also need to provide effective support to future clients. If we are unable to increase
customer support and improve our platform in the face of increasing competition, with the increase in competition, our ability to sell
our products to potential customers could adversely affect our brand, which would harm our reputation.

 Supply
chain issues that increase our costs or cause a delay in our ability to fulfill orders, could have an adverse impact on our business
and operating results, and our failure to estimate customer demand properly may result in excess or obsolete product supply, which could
adversely affect our gross margins.

 With
the exception of some of the bottled water products, we do not own or operate production facilities but instead rely on third party vendors
to manufacture our products, and we expect that we will continue to rely on existing and new suppliers and manufacturers for the foreseeable
future. The following reliance issues could have an adverse impact on the supply of our products and on our business and operating results:

 Any financial or other
 supply problems of our contract suppliers or manufacturers could limit supply or increase costs; and

 Reservation of production
 capacity at our suppliers or contract manufacturers by other companies could limit supply or increase costs.

 In
addition, the following supply chain-related issues could adversely affect our customer relationships, operating results and financial
condition:

 a reduction or interruption
 in supply of one or more products;

 a significant increase
 in the price of one or more products;

 a failure to adequately
 procure inventory by our suppliers or manufacturers; and

 a failure to appropriately
 cancel, reschedule or adjust our requirements based on our business needs.

 We
do not have long term contractual commitments with our retail customers and some distributors, and our business may be negatively affected
if we are unable to maintain those important relationships and distribute our products.

 Our
marketing and sales strategy depends in large part on orders, availability and performance of our retailers and distributor customers,
supplemented by the sales at our own store and online sales. We will continue our efforts to reinforce and expand our distribution network
by partnering with new retailers and distributors. While we have entered written agreements with most of our customers, we currently
do not have, nor do we anticipate in the future that we will be able to establish, long-term contractual commitments from most major
customers. In addition, we may not be able to maintain our current distribution relationships or establish and maintain successful relationships
with distributors in new geographic distribution areas. Moreover, there is a possibility that we may have to incur additional costs to
attract and maintain new customers. Our inability to maintain our sales network or attract additional customers would adversely affect
our revenues and financial results.

 If
any customer accounts for a significant portion of our revenue in our operation, the loss of any such customers or a material decline
in the transaction would have an adverse effect on our operating results

 Our
customers can be categorized into retailer customers and wholesale distributors. Management's strategies to avoid customer concentration
is expanding the customers base by launching wider range of products while developing new customers with existing products. For the years
ended December 31, 2023 and 2022, there was no customer who accounted for more than 10% of the Company's total revenue. Avoiding
customers concentration issues is always one of our marketing strategies. However, no guarantee could be made that such wide range of
client base can always be maintained. If the concentration on customers occurs in our future operations, any decline in such customers'
transaction volume would lower our revenues, which would adversely affect our operating results, of course, avoiding customer concentration
is one of our core marketing strategy, we will strife to maintain the wide range of customers base.

 Because
we rely on our retailer customers and wholesale distributors for the majority of our sales that distribute our competitors' products
along with our products, we have little control in ensuring those retailers and distributors will not prefer our competitors' products
over ours, which could cause our sales to suffer.

 Our
ability to establish a market for our products in new geographic areas, as well as maintain and expand our existing markets, is dependent
on our ability to establish and maintain successful relationships with reliable distributors and retailers positioned to serve those
areas. Most of our distributors and retailers sell and distribute competing products, including non-alcohol and alcohol beverages, and
our products may represent a small portion of their business. To the extent that our distributors and retailers prefer to sell our competitors'
products over our products or do not employ sufficient efforts in managing and selling our products, including re-stocking retail shelves
with our products, our sales and results of operations could be adversely affected. Our ability to maintain our distribution network
and attract additional distributors and retailers will depend on several factors, some of which are outside our control. Some of these
factors include: the level of demand for our brands and products in a distribution area; our ability to price our products at levels
competitive with those of competing products; and our ability to deliver products in the quantity and at the time ordered by distributors
or retailers. If any of the above factors work negatively against us, our sales will likely decline and our results of operations will
be adversely affected.

 Because
our retail customers and distributors are not required to place minimum orders with us, we need to manage our inventory levels, and it
is difficult to predict the timing and amount of our sales.

 Our
customers are not required to place minimum monthly or annual orders for our products. There is no assurance as to the timing or quantity
of purchases by any of our customers or that any of our distributors will continue to purchase products from us in the same frequencies
and volumes as they may have in the past. To be able to sell our products on a timely basis, we need to maintain adequate inventory levels
of the desired products, but we cannot predict the frequency or size of orders by a substantial portion of our customers. If we fail
to meet our shipping schedules, we could damage our relationships with distributors or retailers, increase our shipping costs or cause
sales opportunities to be delayed or lost, which would unfavorably impact our future sales and adversely affect our operating results.
In addition, if the inventory of our products held by our distributors or retailers is too high, they will not place orders for additional
products, which would also unfavorably impact our future sales and adversely affect our operating results.

 Our
business plan and future growth is dependent in part on our distribution arrangements with retailers and wholesale distributors. If we
are unable to effectively implement our business plan and distribution strategy, our results of operations and financial condition could
be adversely affected.

 We
currently have sales arrangements with most of wholesale distributors and retail accounts to distribute our products directly through
their venues. However, there are several risks associated with this distribution strategy. We do not have long-term agreements in place
with any of these customers and thus, the arrangements are terminable at any time by these retailers or us. Accordingly, we may not be
able to maintain continuing relationships with any of these accounts. A decision by any of these retailers to decrease the amount purchased
from us or to cease carrying our products could have a material adverse effect on our reputation, financial condition or results of operations.
In addition, our dependence on existing major retail accounts may result in pressure on us to reduce our pricing to them or allow significant
product discounts. Any increase in our costs for these retailers to carry our product, reduction in price, or demand for product discounts
could have a material adverse effect on our profit margin.

 We
rely on independent suppliers and manufacturers of our products, and such dependence could make management of our marketing and distribution
efforts inefficient or unprofitable.

 We
do not own the plants or the equipment required to make and package the products we sell, and do not directly manufacture our products
but instead purchase our products from our independent suppliers who source the products from independent manufacturers. We do not anticipate
bringing the manufacturing process in-house in the future. Currently, our products are sourced from approximately 34 independent suppliers.
Our ability to attract and maintain effective relationships with our suppliers, and other third parties for the production and delivery
of our food and beverage products in a geographic distribution area is important to the success of our operations within each distribution
area. Our suppliers may terminate their arrangements with us at any time, in which case we could experience disruptions in our ability
to deliver products to our customers. We may not be able to maintain our relationships with current suppliers or establish satisfactory
relationships with new or replacement suppliers, whether in existing or new geographic distribution areas. The failure to establish and
maintain effective relationships with suppliers or product manufacturers for a distribution area could increase our product supply costs
and thereby materially reduce profits realized from the sale of our products in that area. In addition, poor relations with any of our
suppliers or product manufacturers could adversely affect the amount and timing of product delivered to our distributors and consumers,
which would in turn adversely affect our revenues and financial condition.

 As
is customary in the food and beverage supply chain industry, we are expected to arrange for our product procurement needs sufficiently
in advance of anticipated requirements. We continually evaluate which of our suppliers to utilize based on the cost structure and forecasted
demand for the geographic area where our suppliers or product manufacturers are located. To the extent demand for our products exceeds
available inventory, or orders are not submitted on a timely basis, we will be unable to fulfill distributor orders on demand. Conversely,
we may order more products than warranted by actual demand, resulting in higher storage costs and the potential risk of inventory spoilage.
Our failure to accurately predict and manage our supply requirements may impair relationships with our distributors and key accounts,
which, in turn, would likely have a material adverse effect on our ability to maintain effective relationships with those distributors
and key accounts.

 Management's
ability to implement our business strategy may be slower than expected and we may be unable to generate or sustain profits.

 Our
business plans, including developing and optimizing our online platform, may not generate profit in the near term or may not become profitable
at all, which will result in losses. We may be unable to enter into our intended markets successfully. The factors that could affect
our growth strategy include our success in (a) developing our business plan, (b) obtaining new clients, (c) obtaining adequate financing
on acceptable terms, and (d) adapting our internal controls and operating procedures to accommodate our future growth.

 Our
systems, procedures and controls may not be adequate to support the expansion of our business operations. Significant growth will place
managerial demands on all aspects of our operations. Our future operating results will depend substantially upon our ability to manage
changing business conditions and to implement and improve our technical, administrative and financial controls and reporting systems.

 If
we are unable to manage our inventory effectively, our operating results could be adversely affected.

 Our
business requires us to manage inventory effectively. For many products, we depend on our forecasts of demand for and popularity of various
products to make purchase decisions and to manage our inventory. Demand for products, however, can change between the time inventory
is ordered and the date of sale. Demand may be affected by, among other things, the COVID-19 pandemic, changes in product pricing, promotions,
changes in consumer spending patterns, changes in consumer tastes with respect to our products and other factors, and our consumers may
not purchase products in the quantities that we expect.

 It
may be difficult to accurately forecast demand and determine appropriate levels of product supply. We generally do not have the right
to return unsold products to our suppliers. If we fail to manage our inventory effectively, we may be subject to a heightened risk of
inventory obsolescence, a decline in inventory values, and inventory write-downs or write-offs. In addition, if we may be required to
lower sale prices in order to reduce inventory levels, our profit margins might be negatively affected. In addition, our ability to meet
customer demand may be negatively impacted by a shortage in inventory due to reduced inventory purchases or disruptions in the supply
chain due to a number of factors, including the COVID-19 pandemic. Any failure to manage or accurately forecast demand for our products
could adversely affect inventory levels, growth and operating results.

 If
we fail to effectively manage our product storage or turnovers, the quality and freshness of our products could suffer and our operating
results could be adversely affected.

 We
are subject to risks affecting the food industry generally, including food spoilage, contamination or expiration. In managing our product
storage and inventory turnovers, we seek to improve supply chain efficiency, while closely monitor the quality and freshness of food
products and effectively reduce inventory losses. While we believe food spoilage or contamination currently does not have a significant
impact on our operations, there is no guarantee that our inventory management will always be able to effectively control or reduce contamination
or inventory losses of certain products which may be unsuitable for human consumption after a certain period of time, such as seasonings
or edible oil products. Our temperature-controlled storage and transportation systems could fail to function properly and product contamination
could occur. Failures to maintain freshness and safety of our products could negatively impact sales and accordingly have an adverse
impact on our business and results of operations.

 If
the products we sell are not safe or otherwise fail to meet our customers' expectations, we could lose customers, incur liability
for any injuries suffered by customers using or consuming our products or otherwise experience a material impact to our brand, reputation
and financial performance. We are also subject to reputational and other risks related to third-party sales on our online platforms.

 Our
customers count on us to provide them with safe food products. Concerns regarding the safety of food that we source from our suppliers
or that we sell could cause customers to avoid purchasing certain food products from us, or to seek alternative sources of supply for
all of their food needs, even if the basis for the concern is outside of our control. Any lost confidence on the part of our customers
would be difficult and costly to reestablish and such products also expose us to product liability or food safety claims. As such, any
issue regarding the safety of any food items we sell, regardless of the cause, could adversely affect our brand, reputation and financial
performance. Whether laws related to such sales apply to us is currently unsettled and any unfavorable changes could expose us to loss
of sales, reduction in transactions and deterioration of our competitive position. In addition, we may face reputational, financial and
other risks, including liability, for third-party sales of goods that are controversial, counterfeit or otherwise fail to comply with
applicable law. Although we impose contractual terms on sellers that are intended to prohibit sales of certain type of products, we may
not be able to detect, enforce, or collect sufficient damages for breaches of such terms. Any of these events could have a material adverse
impact on our business and results of operations and impede the execution of our E-Commerce growth strategy.

 We
are exposed to risks associated with the distribution of products manufactured by third parties.

 We
purchase almost all of our products from third-party suppliers, such as wineries, wine and drinking water distributors to supply our
products. We do not have full control over the product making activities of the wine and other product producers. Significant delays
and defects in our products resulting from the activities of our product makers may have a material adverse effect on our Company's
results of operations and financial condition.

 Under
the PRC law, for the third party products that we distribute, the third party manufacturers are responsible for the quality of the products.
We, however, may still be liable under certain circumstances. For example, product sellers bear tort liabilities for product defects
as a result of the seller's negligence which has caused the consumers' damages or if the sellers are unable to specify the
manufacturer of a defective product. In the event consumers suffer from damages caused by product defects, consumers may seek compensation
either from the product manufacturer or from the seller of the products. If a product defect occurs during the manufacturing period and
the compensation is paid by a seller, then the seller is entitled to recover losses from the manufacturer. However, if a defect occurs
during the selling period and the compensation is paid by the manufacturer, then the manufacturer is entitled to recover losses from
the seller. In the event that product defects are caused by the manufacturers, while we have the right to seek recourse against the manufacturers
after we pay damages to the consumers, there can be no assurance that we could recover any of our compensation payments we will have
made.

 We
may be subject to product liability claims.

 We
are a food and beverage product distributor, and the products we sell are not made by us which may contain defects or have quality issues.
As a result, sales of such products could expose us to product liability claims relating to personal injury or property damage and may
require product recalls or other actions. Third parties subject to such injury or damage may bring claims or legal proceedings against
us as the distributor or retailer of the product. Although we would have legal recourse against the manufacturer of such products under
applicable law, attempting to enforce our rights against the manufacturer may be expensive, time-consuming and ultimately futile. In
addition, we do not currently maintain any third-party liability insurance or product liability insurance in relation to products we
sell. As a result, any material product liability claim or litigation could have a material and adverse effect on our business, financial
condition and results of operations. Even unsuccessful claims could result in the expenditure of funds and managerial efforts in defending
them and could have a negative impact on our reputation.

 Climate change, or legal, regulatory or market
responses to climate change may adversely affect our business, results of operations or financial condition

 There has been an increased focus by governments,
non-governmental organizations and other stakeholders on environmental sustainability matters including climate change. There is an emerging
scientific consensus on climate change with respect to the frequency and severity of storms, floods and other weather events. Our product
suppliers and their raw material providers could be adversely affected by extreme weather events, which in turn could negatively affect
the supply of the products our subsidiaries sell.

 Our PRC subsidiaries are subject to various PRC national and local environmental
regulations and requirements. Compliance with existing and new environmental regulations requires substantial resources. Changes in environmental
and climate related laws or regulations could lead to additional operational restrictions and compliance requirements upon our subsidiaries,
their products or services, or otherwise could negatively impact our business. We may experience future increases in the costs associated
with environmental regulatory compliance to meet environmental regulatory and other compliance requirements, all of which could adversely
affect our business, results of operations or financial condition.

 Our
business and financial results depend on the continuous supply and availability of raw materials, and rising raw material, fuel and freight
costs as well as freight capacity issues may have an adverse impact on our sales and earnings.

 The
principal raw materials for the wine products we sell include glass bottles, labels, closures, flavorings, stevia, pure cane sugar and
other natural ingredients. The costs of the product ingredients are subject to fluctuation. If any supply of these raw materials is impaired
or if prices increase significantly, our business would be adversely affected. Prices of any raw materials or ingredients may continue
to rise in the future and we would incur higher supply costs which we may not be able to pass any cost increases on to our customers.

 Moreover,
industry-wide shortages of certain concentrates, supplements and sweeteners have been experienced could, from time to time in the future,
be experienced, which could interfere with and/or delay production and supply of certain of our products we source and could have a material
adverse effect on our business and financial results.

 In
addition, any supply shortage or volatility in the global oil markets would result in unstable fuel and freight prices. Due to the price
sensitivity of our products, we may not be able to pass any increased costs on to our customers. At the same time, the economy appears
to be returning to pre-pandemic levels resulting in the rise of freight volumes which is exacerbated by carrier failures to meet demands
and fleet reductions due to higher transportation demand in China and global logistics service industry. We may be unable to secure available
transportation carrier capacity at reasonable rates, which could have a material adverse effect on our operations.

 We
rely upon our ongoing relationships with our key suppliers. If we are unable to source our products on acceptable terms from our key
suppliers, we could suffer disruptions in our business.

 Currently
we purchase our alcohol products from eleven major suppliers and food and non-alcohol beverage products from twenty-three major suppliers,
and we anticipate that we will purchase our products from others with the intention of developing other sources of supply for our products.
The prices of our products are determined by our suppliers and manufacturers and may be subject to change. Consequently, we do not have
control over any price increases of the products we sell and may be unable to obtain those products from alternative suppliers on short
notice.

 In
addition, we may not correctly estimate demand for our products. Our ability to estimate demand for our products is imprecise, particularly
with new products, and may be less precise during periods of rapid growth, particularly in new markets. If we materially underestimate
demand for our products or are unable to secure sufficient product supplies, we might not be able to satisfy demand on a short-term basis.
If we must replace a product supplier, we could experience disruptions in our ability to deliver products to our customers or experience
a change in the quality or customer appeal of our products, all of which could have a material adverse effect on our results of operations.

 We
may be unable to obtain or renew required permits, licenses or approvals necessary for our business operations, and could be imposed
with fines and penalties for any violations of the license requirements.

 We
are required to maintain certain permits, licenses and approvals issued by relevant government agencies to operate business in the PRC.
Our inability to secure any permits, licenses and approvals in the PRC in a timely manner or at all could result in operational delays,
suspensions and/or administrative fines and penalties, which could have a material adverse effect on our operations, results of operations
and financial condition.

 The
Telecommunications Regulations of the PRC issued by the State Council of the PRC, as amended, provide the general framework for the provision
of telecommunication services by PRC companies and require a telecommunication service provider in China to obtain an operating license
from the Ministry of Industry and Information Technology, or MIIT, or its provincial counterparts, prior to commencement of operations.
Our subsidiary, FVT Supply Chain, engages in food, beverage and related product purchases and sales via its online platform. As a provider
of online data processing and transaction processing services, FVT Supply Chain is required to obtain a license issued by the relevant
telecommunications administrative authorities and has applied for an Electronic Data Interchange (EDI) certificate. The online platform
run by FVT Supply Chain was registered and established on August 14, 2019 and put into operations in April 2021. FVT Supply Chain obtained
the EDI License on September 30, 2021. Prior to receiving the License, the company was not qualified to operate value-added telecommunication
services for several months. Under the Telecommunication Regulation of the People's Republic of China (2016 Revision), we could
be subject to fines and penalties and the income generated before receiving the EDI License could be confiscated. Since our online platform
was in the test phase before we obtained the EDI License and income from the platform operations was very small, and we have not received
any notice of warning or penalty from the administration agency, we believe that such fines and penalties, if imposed, would not have
a material adverse effect on our operations and financial condition.

to the Measures for the Administration of Food Business Licenses, businesses engaged in food operations activities without a food business
license are subject to penalties imposed under the Food Safety Law of the People's Republic of China. The Food Safety Law provides,
among other things, that any person engages in food production and business activities without a food production and business license
shall be subject to confiscation of illegal income and tools, equipment, and other items used in illegal production and operation, and
be subject to fines and penalties as set forth in the applicable provisions. Therefore, companies that carry out food related operations
before obtaining food business licenses are at risk of being subject to administrative penalties. Our subsidiary, Xixingdao and some
of its subsidiaries, had engaged in certain food purchase and sale activities before obtaining their food business licenses. We cannot
assure you that the relevant administrative agencies will not impose fines and penalties for our prior sale should they decide to enforce
the above PRC license requirements for prior violations. Should our subsidiaries be required to pay fines or penalties, our results of
operations and financial condition would be materially adversely affected.

 In
addition, there is no assurance that we will be able to renew any existing permits, licenses and approvals when they expire or that we
will be able to obtain or renew future permits, licenses and approvals in a timely manner, or at all. Further, there can be no assurance
that such permits, licenses or approvals will not be revoked for whatever reason by the relevant authorities in the future. Failure to
obtain or renew such permits, licenses and approvals as planned could materially and adversely affect our business, results of operations
and financial condition.

 We
may be subject to penalties under relevant PRC laws and regulations due to failure to make full social security and housing fund contributions
for our employees.

 Our
PRC subsidiaries have not made full contribution to the social security and housing funds for some or all of their employees as required
by the relevant social security and housing fund regulations. Pursuant to the Regulation on the Administration of Housing Accumulation
Funds, as amended in 2019, the relevant housing fund authority may order an enterprise to pay outstanding contributions within a prescribed
time limit. Pursuant to the PRC Social Insurance Law promulgated in 2010 and amended in 2018, the social security authority may order
an enterprise to pay the outstanding contributions within a prescribed time limit and may impose penalties if there is a failure to do
so. To the extent the relevant authorities determine we have not paid or underpaid, our PRC subsidiaries may be required to pay outstanding
contributions and penalties to the extent they did not make full contributions to the social security and housing funds.

 In
addition, in July 2018, the General Office of the Central Committee of the Communist Party of China and the General Office of the State
Council jointly issued the Reform Plan of the Taxation and Collection Systems of National Taxes and Local Taxes, which states that, effective
January 1, 2019, basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, injury insurance
premiums and maternity insurance premiums shall be levied by the tax authorities. Under the new system, tax collection is likely to be
stringently administrated and enforced.

 As
of the date hereof, the aggregate amount of unpaid social security and housing fund contributions is approximately RMB 899,940 (approximately
$135,985) and the amount of potential penalties, if levied, is estimated to be RMB 133,460 (approximately $20,187). Due to the fact that
the payment of social security and housing accumulation funds will reduce the net amounts of the employees' wages, after consulting
with and receiving voluntary waivers from those employees, our PRC subsidiaries decided not to pay social security and housing accumulation
funds for those employees in full. As of the date of this report, we have not had any complaints, investigations, lawsuits and arbitration
proceedings brought against us by our employees or PRC authorities. In addition, according to the Enterprise Credit Report issued by
the government, our subsidiaries are in good standing and have not been warned or administratively penalized for failing to pay social
security and housing accumulation funds. Our PRC subsidiaries intend to pay the full social security and housing accumulation funds for
employees according to the laws and regulations. With respect to the previously unpaid social security and housing funds of our PRC subsidiaries,
one of our major shareholders, Yumin Lin, has provided a personal guarantee that, if the subsidiaries incur any losses due to our subsidiaries'
failure to pay full contributions, he would be jointly liable for the payment to compensate any losses the Company may incur. For the
reasons stated above, we don't believe that our subsidiaries' business and operations would be materially adversely affected
by previous nonpayment of full social security and housing accumulation fund contributions. Nevertheless, there can be no assurance that
our subsidiaries will not be required to pay all of the previously delinquent social insurance and housing fund contribution amounts
and associated administrative penalties or that any financial losses our subsidiaries may suffer will actually be borne by Mr. Lin through
his personal guarantee.

to manage our growth could strain our operational and other resources, which could materially and adversely affect our business and prospects.

 Since
2018, our business has experienced significant growths through acquisitions and product diversification. Our growth strategy includes
increasing market penetration of our existing products and services, identifying and developing new products, and increasing distribution
channels and customers we serve. Pursuing these strategies has resulted in, and will continue to result in substantial demands on our
capital and operating resources. In particular, the management of our growth will require, among other things:

 successful integration
 of our existing operations and acquired businesses;

 stringent cost controls
 and adequate liquidity;

 strengthening of financial
 and risk controls;

 increased marketing, sales
 and support activities; and

 retaining, training and
 hiring qualified employees and professionals.

 If
we are not able to manage our growth successfully, our business, financial condition and operating results would be materially and adversely
affected.

 If
we are unable to maintain brand image and product quality, or if we encounter other product issues such as product recalls, our business
may suffer.

 Our
success depends on our ability to maintain brand reputation for our existing products and effectively build up brand image for new products
and brand extensions. There can be no assurance, however, that additional expenditures on advertising and marketing will have the desired
impact on our products' brand image and on consumer preferences. Product quality issues or allegations of product contamination,
even when false or unfounded, could tarnish the image of the affected brands and may cause consumers to choose other products. In addition,
because of changing government regulations or their implementation, we may be required from time to time to recall products entirely
or from specific markets. Product recalls could affect our profitability and could negatively affect brand image.

 The
inability to attract and retain key personnel would directly affect our efficiency and results of operations.

 Our
success depends on our ability to attract and retain highly qualified employees in such areas as distribution, sales, marketing and finance.
We compete to hire new employees, and, in some cases, must train them and develop their skills and competencies. Our operating results
could be adversely affected by increased costs due to increased competition for employees, higher employee turnover or increased employee
benefit costs. Any unplanned turnover, particularly involving our key personnel, could negatively impact our operations, financial condition
and employee morale.

 Our
inability to protect our trademarks and trade secrets may prevent us from successfully marketing our products and competing effectively.

to protect our intellectual property could harm our brand and our reputation, and adversely affect our ability to compete effectively.
Further, enforcing or defending our intellectual property rights, including our trademarks, copyrights, licenses and trade secrets, could
result in the expenditure of significant financial and managerial resources. We regard our intellectual property, particularly our trademarks
and trade secrets to be of considerable value and importance to our business and our success. We rely on a combination of trademark and
trade secrecy laws, confidentiality procedures and contractual provisions to protect our intellectual property rights. In addition, there
can be no assurance that other parties will not assert infringement claims against us, and we may have to pursue litigation against other
parties to assert our rights. Any such claim or litigation could be costly. In addition, any event that would jeopardize our proprietary
rights or any claims of infringement by third parties could have a material adverse effect on our ability to market or sell our brands
or profitably exploit our products.

 If
we are unable to maintain effective disclosure controls and procedures and internal control over financial reporting, our stock price
and investor confidence in us could be materially and adversely affected.

 We
are required to maintain both disclosure controls and procedures and internal control over financial reporting that are effective. Because
of its inherent limitations, internal control over financial reporting, however well designed and operated, can only provide reasonable,
and not absolute, assurance that the controls will prevent or detect misstatements. Because of these and other inherent limitations of
control systems, there is only the reasonable assurance that our controls will succeed in achieving their goals under all potential conditions.
The failure of controls by design deficiencies or absence of adequate controls could result in a material adverse effect on our business
and financial results.

 While
we are not aware of any data breach in the past, future cyberattacks, computer viruses or any failure to adequately maintain
security and prevent unauthorized access to our information technology system or data could result in a disruption of our business operations
and materially adversely affect our reputation, financial condition and operating results.

 The
protection of our customers', business partners', our Company's and employees' data is critically important to
us. Our customers, business partners, and employees expect we will adequately safeguard and protect their sensitive personal and business
information. We have become increasingly dependent upon automated information technology processes. Improper activities by third parties,
exploitation of encryption technology, data-hacking tools and discoveries and other events or developments may result in a future compromise
or breach of our networks, payment terminals or other settlement systems. In particular, the techniques used by criminals to obtain unauthorized
access to sensitive data change frequently and often are not recognized until launched against a target; accordingly, we may be unable
to anticipate these techniques or implement adequate preventative measures. There can be no assurance that we will not suffer a criminal
cyber-attack in the future, that unauthorized parties will not gain access to personal or business information or sensitive data, or
that any such incident will be discovered in a timely manner.

 We
also face indirect technology, cybersecurity and operational risks relating to the third parties whom we work with to facilitate our
business activities, including, among others, third-party online service providers who manage accounts for our customers and external
cloud service provider. As a result of increasing consolidation and interdependence of technology systems, a technology failure, cyber-attack
or other information or security breach that significantly compromises the systems of one entity could have a material impact on its
counterparties. Any cyber-attack, computer viruses, physical or electronic break-ins or similar disruptions of such third-party service
providers could adversely affect our operations and could result in misappropriation of funds of our customers.

 Security
breaches or unauthorized access to confidential information could also expose us to liability related to the loss of the information,
time-consuming and expensive litigation and negative publicity. If security measures are breached because of third-party action, employee
error, malfeasance or otherwise, or if design flaws in our technology infrastructure are exposed and exploited, our relationships with
customers and cooperation partners could be severely damaged, we could incur significant liability and our business and operations could
be adversely affected.

 We
are substantially dependent upon our senior management and key information technology and development personnel.

 We
are highly dependent on our senior management to manage our business and operations and our marketing and distribution personnel for
the sale of products. In particular, we rely substantially on members of our senior management, including Chief Executive Officer, Yumin
Lin, and Chief Financial Officer, Kaihong Lin, and executives at our key subsidiaries to manage our operations.

 While
we provide the legally required personal insurance for the benefit of our employees, we do not maintain key man life insurance on any
of our senior management or key personnel. The loss of any one of them would have a material adverse effect on our business and operations.
Competition for senior management and our other key personnel is intense and the pool of suitable candidates is limited. We may be unable
to locate a suitable replacement for any senior management or key personnel that we lose. In addition, if any member of our senior management
or key personnel joins a competitor or forms a competing company, they may compete with us for customers, business partners and other
key professionals and staff members of our Company. Although each of our senior management and key personnel has signed a confidentiality
agreement in connection with their employment with us, we cannot assure you that we will be able to successfully enforce these provisions
in the event of a dispute between us and any member of our senior management or key personnel.

 We
compete for qualified personnel with other food supply chain companies. Intense competition for these personnel could cause our compensation
costs to increase, which could have a material adverse effect on our results of operations. Our future success and ability to grow our
business will depend in part on the continued service of these individuals and our ability to identify, hire and retain additional qualified
personnel. If we are unable to attract and retain qualified employees, we may be unable to meet our business and financial goals.

 We
are dependent upon the services of experienced personnel who possess skills that are valuable in our industry, and we may have to actively
compete for their services.

 We
are heavily dependent upon our ability to attract, retain and motivate skilled personnel to serve our customers. Many of our personnel
possess skills that would be valuable to all companies engaged in our industry. Consequently, we expect that we will have to actively
compete for these employees. Some of our competitors may be able to pay our employees more than we are able to pay to retain them. Our
ability to profitably operate is substantially dependent upon our ability to locate, hire, train and retain our personnel. There can
be no assurance that we will be able to retain our current personnel, or that we will be able to attract and assimilate other personnel
in the future. If we are unable to effectively obtain and maintain skilled personnel, the development and quality of our services could
be materially impaired.

 If
we fail to protect our intellectual property rights, it could harm our business and competitive position.

 We
rely on a combination of trademark, trade secret laws, non-disclosure agreements and other methods to protect our intellectual property
rights. We own a number of trademarks, copyrights and Internet domain names in China, most of which have been properly registered with
regulatory agencies such as the State Intellectual Property Office and Trademark Office. Some of the trademarks that are being used by
our subsidiary, Xixingdao, are owned by Mr. Yuwen Li, one of our shareholders, who has authorized us to use these trademarks. Based on
our agreement with Mr. Li, the ownership to those trademarks is in the process of being transferred to us from Mr. Li at no cost to us,
and we expect to own those trademarks upon completion of the registration process at the regulatory agencies. Our intellectual property
has allowed our products to earn market share in the food supply chain industry.

 We
also rely on trade secret rights to protect our business through non-disclosure agreements with certain employees. If any of our employees
breach their non-disclosure obligations, we may not have adequate remedies in China, and our trade secrets may become known to our competitors.
In accordance with Chinese intellectual property laws and regulations, we will have to renew our trademarks once the terms expire.

 Implementation
of PRC intellectual property-related laws has historically been lacking, primarily because of ambiguities in the PRC laws and enforcement
difficulties. Accordingly, intellectual property rights and confidentiality protections in China may not be as effective as in the United
States or other western countries. Furthermore, policing unauthorized use of proprietary technology is difficult and expensive, and we
may need to resort to litigation to enforce or defend our intellectual property rights, or to determine the enforceability, scope and
validity of our proprietary rights or those of others. Such litigation and an adverse determination in any such litigation, if any, could
result in substantial costs and diversion of resources and management attention, which could harm our business and competitive position.

 We
may be exposed to intellectual property infringement and other claims by third parties which, if successful, could disrupt our business
and have a material adverse effect on our financial condition and results of operations.

 Our
success depends, in large part, on our ability to use and develop our intellectual property without infringing third party intellectual
property rights. If we sell our branded products internationally, and as litigation becomes more common in China, we face a higher risk
of being the subject of claims for intellectual property infringement, invalidity or indemnification relating to other parties'
proprietary rights. Our current or potential competitors, many of which have substantial resources and have made substantial investments
in competing technologies, may have or may obtain patents that will prevent, limit or interfere with our ability to make, use or sell
our branded products in either China or other countries, including the United States and other countries in Asia. In addition, the defense
of intellectual property suits, including patent infringement suits, and related legal and administrative proceedings can be both costly
and time consuming and may significantly divert the efforts and resources of our technical and management personnel. Furthermore, an
adverse determination in any such litigation or proceedings to which we may become a party could cause us to:

 pay damage awards;

 seek licenses from third
 parties;

 pay ongoing royalties;
 or

 be restricted by injunctions.

 Each
of which could effectively prevent us from pursuing some or all of our business and result in our customers or potential customers deferring
or limiting their purchase or use of our branded products, which could have a material adverse effect on our financial condition and
results of operations.

 We
may not maintain sufficient insurance coverage for the risks associated with our business operations. As a result, we may incur uninsured
losses.

 We
do not have any insurance of such as business liability or disruption insurance coverage for our operations in the PRC. As a result,
we may incur uninsured liabilities and losses as a result of the conduct of our business. There can be no guarantee that we will be able
to obtain additional insurance coverage in the future, and even if we are able to obtain additional coverage, we may not carry sufficient
insurance coverage to satisfy potential claims. Should uninsured losses occur, it could adversely affect our business, results of operations
and financial condition.

 Provisions
in the Nevada Revised Statutes and our Bylaws could make it very difficult for an investor to bring any legal actions against our directors
or officers for violations of their fiduciary duties or could require us to pay any amounts incurred by our directors or officers in
any such actions.

 Members
of our board of directors and our officers will have no liability for breaches of their fiduciary duty of care as a director or officer,
except in limited circumstances, pursuant to provisions in the Nevada Revised Statutes and our Bylaws as authorized by the Nevada Revised
Statutes. Specifically, Section 78.138 of the Nevada Revised Statutes provides that a director or officer is not individually liable
to the company or its shareholders or creditors for any damages as a result of any act or failure to act in his or her capacity as a
director or officer unless it is proven that (1) the director's or officer's act or failure to act constituted a breach of
his or her fiduciary duties as a director or officer and (2) his or her breach of those duties involved intentional misconduct, fraud
or a knowing violation of law. This provision is intended to afford directors and officers protection against and to limit their potential
liability for monetary damages resulting from suits alleging a breach of the duty of care by a director or officer. Accordingly, you
may be unable to prevail in a legal action against our directors or officers even if they have breached their fiduciary duty of care.
In addition, we are allowed to indemnify our directors and officers from and against any and all costs, charges and expenses resulting
from their acting in such capacities with us. If you were able to enforce an action against our directors or officers, in all likelihood,
we would be required to pay any expenses they incurred in defending the lawsuit and any judgment or settlement they otherwise would be
required to pay. Accordingly, our indemnification obligations could divert needed financial resources and may adversely affect our business,
financial condition, results of operations and cash flows, and adversely affect prevailing market prices for our common stock.

 Risks
Related to Doing Business in China

 China's
political climate and economic conditions, as well as changes in government policies, laws and regulations which may be quick with little
advance notice, could have a material adverse effect on our business, financial condition and results of operations.

 Our
business, financial condition, results of operations and prospects are subject, to a significant extent, to economic, political and legal
developments in China. For example, as a result of recent proposed changes in the cybersecurity regulations in China that would require
certain Chinese technology firms to undergo a cybersecurity review before being allowed to list on foreign exchanges, this may have the
effect of further narrowing the list of potential businesses in China's consumer, technology and mobility sectors that we intend
to focus on for our business combination or the ability of the combined entity to list in the United States.

 China's
economy differs from the economies of most developed countries in many respects, including the amount of government involvement, level
of development, growth rate, control of foreign exchange and allocation of resources. While the PRC economy has experienced significant
growth in the past two to three decades, growth has been uneven, both geographically and among various sectors of the economy. Demand
for target services and products depends, in large part, on economic conditions in China. Any slowdown in China's economic growth
may cause our potential customers to delay or cancel their plans to purchase our services and products, which in turn could reduce our
net revenues.

 Although
China's economy has been transitioning from a planned economy to a more market-oriented economy since the late 1970s, the PRC government
continues to play a significant role in regulating industry development by imposing industrial policies. The PRC government also exercises
significant control over China's economic growth through allocating resources, controlling the incurrence and payment of foreign
currency-denominated obligations, setting monetary policy and providing preferential treatment to particular industries or companies.
Changes in any of these policies, laws and regulations may be quick with little advance notice and could adversely affect the economy
in China and could have a material adverse effect on our business and the value of our common stock.

 The
PRC government has implemented various measures to encourage foreign investment and sustainable economic growth and to guide the allocation
of financial and other resources. However, we cannot assure you that the PRC government will not repeal or alter these measures or introduce
new measures that will have a negative effect on us, or more specifically, we cannot assure you that the PRC government will not initiate
possible governmental actions or scrutiny to us, which could substantially affect our operation and the value of our common stock may
depreciate quickly. China's social and political conditions may change and become unstable. Any sudden changes to China's
political system or the occurrence of widespread social unrest could have a material adverse effect on our business and results of operations.

 Uncertainties
in the PRC legal system and the interpretation and enforcement of PRC laws and regulations could limit the legal protections available
to us and our investors, and rules and regulations in China can change quickly with little advance notice. Such uncertainties could cause
our shares to significantly decline in value or become worthless.

 We
conduct substantially all of our business through our subsidiaries in China. Our operations in China are governed by PRC laws and regulations.
Our PRC subsidiaries are generally subject to laws and regulations applicable to foreign investments in China and, in particular, laws
and regulations applicable to wholly foreign-owned enterprises. The PRC legal system is based on statutes. Prior court decisions may
be cited for reference but have limited precedential value.

 Since
1979, PRC legislation and regulations have significantly enhanced the protections afforded to various forms of foreign investments in
China. However, China has not developed a fully integrated legal system and recently enacted laws and regulations may not sufficiently
cover all aspects of economic activities in China. In particular, because of the limited volume of published decisions and their nonbinding
nature, the interpretation and enforcement of these laws and regulations involve uncertainties. Since PRC administrative and court authorities
have significant discretion in interpreting and implementing statutory provisions and contractual terms, it may be difficult to evaluate
the outcome of administrative and court proceedings and the level of legal protection we enjoy. These uncertainties may affect our judgment
on the relevance of legal requirements and our ability to enforce our contractual rights or tort claims. In addition, these regulatory
uncertainties may be exploited through unmerited or frivolous legal actions or threats in attempts to extract payments or benefits from
us.

 In
addition, the PRC legal system is based in part on government policies and internal rules (some of which are not published on a timely
basis or at all) that may change quickly with little advance notice or have a retroactive effect. As a result, we may not be aware of
our violation of these policies and rules until sometime after the violation. On July 6, 2021, the General Office of the Communist Party
of China Central Committee and the General Office of the State Council jointly issued a document to enhance its enforcement against illegal
activities in the securities markets and promote the high-quality development of capital markets, which, among other things, requires
the relevant governmental authorities to strengthen cross-border oversight of law enforcement and judicial cooperation, to enhance supervision
over Chinese companies listed overseas, and to establish and improve the system of extraterritorial application of the Chinese securities
laws. Since this document is relatively new, uncertainties exist as to how soon legislative or administrative regulation-making bodies
will respond and what existing or new laws, regulations or detailed implementations and interpretations will be modified or promulgated
or mo and the potential impact such modified or new laws and regulations will have on companies like us. It is especially difficult for
us to accurately predict the potential impact on us of new legal requirements in mainland China because the Chinese legal system is a
civil law system based on written statutes. Unlike the common law system, prior court decisions under the civil law system may be cited
for reference but have limited precedential value.

 Such
uncertainties, including any inability to enforce our contracts, together with any development or interpretation of PRC law that is adverse
to us, could materially and adversely affect our business and operations. Furthermore, intellectual property rights and confidentiality
protections in China may not be as effective as in the United States or other more developed countries. We cannot predict the effect
of future developments in the PRC legal system, including the promulgation of new laws, changes to existing laws or the interpretation
or enforcement thereof, or the preemption of local regulations by national laws. These uncertainties could limit the legal protections
available to us and our investors, including you. Such uncertainties could cause the value of such securities to significantly decline
or be worthless.

 The
Chinese government may intervene or influence the operation of our PRC subsidiaries and exercise significant oversight and discretion
over the conduct of their business and may intervene in or influence their operations at any time, or may exert more control over securities
offerings conducted overseas and/or foreign investment in China-based issuers, which could result in a material change in operations
of our PRC subsidiaries and/or the value of our common stock.

 The
Chinese government has exercised and continues to exercise substantial control over virtually every sector of the Chinese economy through
regulation and state ownership. Our ability to operate in China may be harmed by changes in its laws and regulations, including those
relating to securities regulation, data protection, cybersecurity and mergers and acquisitions and other matters. The central or local
governments of these jurisdictions may impose new, stricter regulations or interpretations of existing regulations that would require
additional expenditures and efforts on our part to ensure our compliance with such regulations or interpretations.

 Government
actions in the future could significantly affect economic conditions in China or particular regions thereof, and could require us to
materially change our operating activities or divest ourselves of any interests we hold in Chinese assets. Our business may be subject
to various government and regulatory interference in the areas in which we operate. We may incur increased costs necessary to comply
with existing and newly adopted laws and regulations or penalties for any failure to comply. Our operations could be adversely affected,
directly or indirectly, by existing or future laws and regulations relating to our business or industry.

 Given
recent statements by the Chinese government indicating an intent to exert more oversight and control over offerings that are conducted
overseas and/or foreign investment in China-based issuers, any such action could significantly limit or completely hinder our ability
to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or become worthless.

 Recently,
the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued
the Opinions on Severely Cracking Down on Illegal Securities Activities According to Law, or the Opinions, which was made available to
the public on July 6, 2021. The Opinions emphasized the need to strengthen the administration over illegal securities activities, and
the need to strengthen the supervision over overseas listings by Chinese companies. Effective measures, such as promoting the construction
of relevant regulatory systems, will be taken to deal with the risks and incidents of China-based overseas listed companies. As of the
date of this report, we have not received any inquiry, notice, warning, or sanctions from PRC government authorities in connection with
the Opinions.

 On
June 10, 2021, the Standing Committee of the National People's Congress of China, or the SCNPC, promulgated the Data Security Law,
which took effect in September 2021. The PRC Data Security Law imposes data security and privacy obligations on entities and individuals
carrying out data activities, and introduces a data classification and hierarchical protection system based on the importance of data
in economic and social development, and the degree of harm it will cause to national security, public interests, or legitimate rights
and interests of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired or used. The PRC
Data Security Law also provides for a national security review procedure for data activities that may affect national security and imposes
export restrictions on certain data an information. The law provides for privacy obligations of entities and individuals carrying out
data activities, prohibits entities and individuals in China from providing any foreign judicial or law enforcement authority with any
data stored in China without approval from the competent PRC authority, and sets forth the legal liabilities of entities and individuals
found to be in violation of their data protection obligations, including rectification order, warning, fines of up to RMB10 million,
suspension of relevant business, and revocation of business permits or licenses.

 In
early July 2021, regulatory authorities in China launched cybersecurity investigations with regard to several China-based companies that
are listed in the United States. The Chinese cybersecurity regulator announced on July 2 that it had begun an investigation of Didi Global
Inc. (NYSE: DIDI) and two days later ordered that the company's app be removed from smartphone app stores. On July 5, 2021, the
Chinese cybersecurity regulator launched the same investigation on two other Internet platforms, China's Full Truck Alliance of
Full Truck Alliance Co. Ltd. (NYSE: YMM) and Boss of KANZHUN LIMITED (Nasdaq: BZ). On July 24, 2021, the General Office of the Communist
Party of China Central Committee and the General Office of the State Council jointly released the Guidelines for Further Easing the Burden
of Excessive Homework and Off-campus Tutoring for Students at the Stage of Compulsory Education, pursuant to which foreign investment
in such firms via mergers and acquisitions, franchise development, and variable interest entities are banned from that sector.

 On
July 10, 2021, the CAC released the Cybersecurity Review Measures (Revised Draft for Solicitation of Comments), or the Revised Cybersecurity
Measures, pursuant to which operator holding more than one million users/users' (which is to be further specified) individual information
shall be subject to cybersecurity review before listing abroad. The cybersecurity review will evaluate, among others, the risk of critical
information infrastructure, core data, important data, or a large amount of personal information being influenced, controlled or maliciously
used by foreign governments after going public overseas. The procurement of network products and services, data processing activities
and overseas listing should also be subject to cybersecurity review if they concern or potentially pose risks to national security. According
to the effective Cybersecurity Review Measures, online platform/website operators of certain industries may be identified as critical
information infrastructure operators by the CAC, once they meet standard as stated in the National Cybersecurity Inspection Operation
Guide, and such operators may be subject to cybersecurity review. The scope of business operations and financing activities that are
subject to the Revised Cybersecurity Measures and the implementation thereof is not yet clear. As of the date of this report, we have
not been informed by any PRC governmental authority of any requirement that we file for approval in connection with an offering of our
common stock.

 On
August 17, 2021, the State Council promulgated the Regulations on the Protection of the Security of Critical Information Infrastructure,
or the Regulations, which took effect on September 1, 2021. The Regulations supplement and specify the provisions on the security of
critical information infrastructure as stated in the Cybersecurity Review Measures. The Regulations provide, among others, that protection
department of certain industry or sector shall notify the operator of the critical information infrastructure in time after the identification
of certain critical information infrastructure.

 On
August 20, 2021, the SCNPC adopted the Personal Information Security Law, which took effect on November 1, 2021. The Personal Information
Protection Law includes the basic rules for personal information processing, the rules for cross-border provision of personal information,
the rights of individuals in personal information processing activities, the obligations of personal information processors, and the
legal responsibilities for illegal collection, processing, and use of personal information. As the first systematic and comprehensive
law specifically for the protection of personal information in the PRC, the Personal Information Protection Law provides, among others,
that (i) an individual's consent shall be obtained to use sensitive personal information, such as biometric characteristics and
individual location tracking, (ii) personal information operators using sensitive personal information shall notify individuals of the
necessity of such use and impact on the individual's rights, and (iii) where personal information operators reject an individual's
request to exercise his or her rights, the individual may file a lawsuit with a People's Court.

 On
December 28, 2021, the CAC, NDRC, and other government agencies jointly issued the Revised Measures for Cybersecurity Review Measures,
or the Revised Cybersecurity Measures, which will take effect and replace the previously issued Revised Measures for Cybersecurity Review
on February 15, 2022. Under the Revised Cybersecurity Measures, an "online platform operator" in possession of personal data
of more than one million users must apply for a cybersecurity review if it intends to list its securities on a foreign stock exchange.
The operators of critical information infrastructure purchasing network products and services, and the online platform operators (together
with the operators of critical information infrastructure, the "Operators") carrying out data processing activities that
affect or may affect national security, shall conduct a cybersecurity review, and any online platform operator who controls more than
one million users' personal information must go through a cybersecurity review by the cybersecurity review office if it seeks to
be listed in a foreign country.

 With
regard to the current effective data security management regulations, we don't believe that we are required to conduct data security
review for listing overseas. However, according to the Regulations on Network Data Security Management (Draft for Comment), as an overseas
listed company, we will be required to conduct an annual data security review and to comply with the relevant reporting obligations.
We have been closely monitoring the development in the regulatory landscape in China, particularly regarding the requirement of approvals,
including on a retrospective basis, from the CSRC, the CAC or other PRC authorities with respect to this offering, as well as regarding
any annual data security review or other procedures that may be imposed on us. If any approval, review or other procedure is in fact
required, we cannot assure you that we will be able to obtain such approval or complete such review or other procedure timely or at all.
For any approval that we may be able to obtain, it could nevertheless be revoked and the terms of its issuance may impose restrictions
on our operations and offerings relating to our securities. The regulatory requirements with respect to cybersecurity and data privacy
are constantly evolving and can be subject to varying interpretations, and significant changes, resulting in uncertainties about the
scope of our responsibilities in that regard. Failure to comply with the cybersecurity and data privacy requirements in a timely manner,
or at all, may subject us to government enforcement actions and investigations, fines, penalties, suspension or disruption of our operations,
among other things.

 Given
that the above referenced laws, regulations and policies were recently promulgated or publicly released, their interpretation, application
and enforcement are subject to substantial uncertainties.

regulatory developments in China, including greater oversight and control by the CAC over data security, may subject us to additional
regulatory review, and any actions by the Chinese government to exert more oversight and control over foreign investment in China-based
issuers could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the
value of such securities to significantly decline or be worthless.

statements by the Chinese government have indicated an intent to exert more oversight and control over offerings that are conducted overseas
and/or foreign investments in China based issuers. The PRC government recently initiated a series of regulatory actions and statements
to regulate business operations in China with little advance notice, among other things, including adopting new measures to extend the
scope of cybersecurity reviews, cracking down on illegal activities in the securities market, and expanding the efforts in anti-monopoly
enforcement. The PRC government is increasingly focused on data security, recently launching cybersecurity review against a number of
mobile apps operated by several U.S.-listed Chinese companies and prohibiting these apps from registering new users during the review
period. We are subject to various risks and costs related to the collection, use, sharing, retention, security, and transfer of confidential
and private information, such as personal information and other data. Such covered data is wide ranging and relates to our investors,
employees, contractors and other third parties. The relevant PRC laws apply not only to third-party transactions, but also to transfers
of information between FVTI Nevada, offshore subsidiaries, our PRC subsidiaries, and other parties with which we have commercial relations.

 The
PRC regulatory and enforcement regime with regard to privacy and data security is evolving. The PRC Cybersecurity Law, which was promulgated
on November 7, 2016 and became effective on June 1, 2017, provides that personal information and important data collected and generated
by operators of critical information infrastructure in the course of their operations in the PRC should be stored in the PRC, and the
law imposes heightened regulation and additional security obligations on operators of critical information infrastructure.

 On
July 10, 2021, the CAC issued the Revised Cybersecurity Measures for public comments. According to the Revised Cybersecurity Measures,
the scope of cybersecurity reviews is extended to data processing operators engaging in data processing activities that affect or may
affect national security. The Revised Cybersecurity Measures further require that any operator applying for listing on a foreign exchange
must go through cybersecurity review if it possesses personal information of more than one million users. A cybersecurity review assesses
potential national security risk that may be brought about by any procurement, data processing, or overseas listing. The review focuses
on several factors, including, among others, (i) the risk of theft, leakage, corruption, illegal use or export of any core or important
data, or a large amount of personal information, and (ii) the risk of any critical information infrastructure, core or important data,
or a large amount of personal information being affected, controlled or maliciously exploited by a foreign government after a company
is listed overseas.

 On
November 14, 2021, the CAC published the Regulations of Internet Data Security Management (Draft for Comments), which further regulate
the internet data processing activities and emphasize the supervision and management of network data security, and further stipulate
the obligations of internet platform operators, such as to establish a system for disclosure of platform rules, privacy policies and
algorithmic strategies related to data. Specifically, the draft regulations require data processors to, among others, (i) adopt immediate
remediation measures when finding that network products and services they use or provide have security defects and vulnerabilities, or
threaten national security or endanger public interest, and (ii) follow a series of detailed requirements with respect to processing
of personal information, management of important data and proposed overseas transfer of data. In addition, the draft regulations require
data processors handling important data or the data processors to be listed overseas to complete an annual data security assessment and
file a data security assessment report to applicable regulators. Such annual assessment, as required by the draft regulations, would
encompass areas including, but not limited to, the status of important data processing, data security risks identified and the measures
adopted, the effectiveness of data protection measures, the implementation of national data security laws and regulations, data security
incidents that occurred and their handling, and a security assessment with respect to sharing and provision of important data overseas.
As of the date of this report, the draft regulations have been released for public comment only and have not been formally adopted. The
final provisions and the timeline for its adoption are subject to changes and uncertainties.

 We
currently operate an online trading platform, primarily engaged in sales of products to our customers in China, where our customers can
register as members first, and then search for, purchase or sell any desired food and beverage products. Our online platform collects
and transmits product, supplier and customer information and data. Since our online trading platform has only been in operation for about
a year, we are in the process of studying the newly issued rules and regulations governing cybersecurity and data protection and the
industry best practice, as well as assessing the extent to which our information and data system is not in full compliance with the various
requirements under the newly proposed regulations. Based on the preliminary assessment, our management has determined that we are not
in full compliance with those new proposed rules. For example, we have not consistently informed users of the purpose, method and scope
of personal information and data collections and uses. We also have not fully implemented the measures designed by us to provide additional
security to personal information obtained and stored by us through our online platform. As of the date of this report, the proposed rules
have not been adopted and thus we are not subject to those requirements in the proposed rules. However, if the final rules are adopted
as proposed, we intend to fully comply with the requirements of the regulations.

 We
are committed to taking the necessary actions to satisfy the effective personal information protection and internet data security regulatory
requirements. We have designed a user information protection mechanism, which includes seven detailed personal information and data security
protection measures. We have implemented some of those measures while are in the process of completing the execution of others. We intend
to fully comply with the following requirements should the final rules are issued as proposed: (a) enter into user information collection,
storage and use rules and privacy agreements with all users, (b) fully inform users of the purpose, method and scope of personal information
and data collection, (c) provide channels for inquiring stored personal information and correcting inaccuracies in information and data,
and (d) remediate for violations of personal information and data security protection policies and guidelines, among other things.

 On
December 28, 2021, the CAC, NDRC, and several other agencies jointly issued the final version of the Revised Measures for Cybersecurity
Review, or the Revised Cybersecurity Measures, which took effect on February 15, 2022 and replaced the previously issued Revised Measures
for Cybersecurity Review. Under the Revised Cybersecurity Measures, an "online platform operator" in possession of personal
data of more than one million users must apply for a cybersecurity review if it intends to list its securities on a foreign stock exchange.
The operators of critical information infrastructure purchasing network products and services, and the online platform operators (together
with the operators of critical information infrastructure, the "Operators") carrying out data processing activities that
affect or may affect national security, shall conduct a cybersecurity review, and any online platform operator who controls more than
one million users' personal information must go through a cybersecurity review by the cybersecurity review office if it seeks to
be listed in a foreign country. Pursuant to the Revised Cybersecurity Measures, we don't believe we will be subject to the cybersecurity
review by the CAC, given that (i) we possess personal information of a relatively small number of users (less than 12,000 users) in our
business operations as of the date of this report, significantly less than the one million user threshold set for a data processing operator
applying for listing on a foreign exchange that is required to pass such cybersecurity review; and (ii) data processed in our business
does not have a bearing on national security and thus shall not be classified as core or important data by the authorities. We don't
believe that we are an Operator within the meaning of the Revised Cybersecurity Measures, nor do we control more than one million users'
personal information, and as such, we should not be required to apply for a cybersecurity review under the Revised Cybersecurity Measures.

 However,
there remains uncertainty as to how the Revised Cybersecurity Measures may be interpreted or implemented and whether the PRC regulatory
agencies, including the CAC, may adopt new rules and regulations related to the Revised Cybersecurity Measures. For example, there is
still no clear definition of "online platform operator". Whether the data processing activities carried out by traditional
enterprises (such as food, medicine, manufacturing and merchandise sales enterprises) are subject to such review and the scope of the
review remain to be further clarified by the regulatory authorities in the subsequent implementation process. If any new laws, regulations,
implementation measures or interpretation are adopted, we may need to take further actions and invest resources to comply with such new
rules and to minimize any potential negative effects on us. In addition, if the number of our online platform users increases to a level
close to one million, we would expect to prepare for the required cybersecurity review procedure and approval from the PRC government.

 Furthermore,
the CAC released the draft of the Regulations on Network Data Security Management (Draft for Comment) in November 2021 for public consultation,
which among other things, stipulates that a data processor listed overseas must conduct an annual data security review by itself or by
engaging a data security service provider and submit the annual data security review report for a given year to the municipal cybersecurity
department before January 31 of the following year. If the draft Regulations on Network Data Security Management are enacted in the current
form, we, as an overseas listed company, will be required to carry out an annual data security review and comply with the relevant reporting
obligations.

 In
summary, with regard to the current effective data security management regulations, we don't believe that we are required to conduct
data security review for listing overseas. However, according to the Regulations on Network Data Security Management (Draft for Comment),
as an overseas listed company, we will be required to conduct an annual data security review and to comply with the relevant reporting
obligations. We have been closely monitoring the development in the regulatory landscape in China, particularly regarding the requirement
of approvals, including on a retrospective basis, from the CSRC, the CAC or other PRC authorities with respect to this offering, as well
as regarding any annual data security review or other procedures that may be imposed on us. If any approval, review or other procedure
is in fact required, we cannot assure you that we will be able to obtain such approval or complete such review or other procedure timely
or at all. For any approval that we may be able to obtain, it could nevertheless be revoked and the terms of its issuance may impose
restrictions on our operations and offerings relating to our securities. Any actions by the Chinese government to exert more oversight
and control over foreign investment in China-based issuers could significantly limit or completely hinder our ability to offer or continue
to offer securities to investors and cause the value of such securities to significantly decline or be worthless.

 The
regulatory requirements with respect to cybersecurity and data privacy are constantly evolving and can be subject to varying interpretations,
and significant changes, resulting in uncertainties about the scope of our responsibilities in that regard. Failure to comply with the
cybersecurity and data privacy requirements in a timely manner, or at all, may subject us to government enforcement actions and investigations,
fines, penalties, suspension or disruption of our operations, among other things.

 Compliance
with the PRC Cybersecurity Law, the PRC National Security Law, the Data Security Law, the Personal Information Protection Law, the Cybersecurity
Review Measures, as well as additional laws and regulations that PRC regulatory bodies may enact in the future, may result in additional
expenses to us and subject us to negative publicity, which could harm our reputation among users and negatively affect the trading price
of our shares in the future. There are also uncertainties with respect to how the PRC Cybersecurity Law, the PRC National Security Law
and the Data Security Law will be implemented and interpreted in practice. PRC regulators, including the Ministry of Public Security,
the MIIT, the SAMR and the CAC, have been increasingly focused on regulation in the areas of data security and data protection, including
for mobile apps, and are enhancing the protection of privacy and data security by rule-making and enforcement actions at national and
local levels. We expect that these areas will receive greater and continued attention and scrutiny from regulators and the public going
forward, which could increase our compliance costs and subject us to heightened risks and challenges associated with data security and
protection. If we are unable to manage these risks, we could become subject to penalties, including fines, suspension of business, prohibition
against new user registration (even for a short period of time) and revocation of required licenses, and our reputation and results of
operations could be materially and adversely affected.

 If
the Chinese government determines that our corporate structure does not comply with Chinese regulations, or if Chinese regulations change
or are interpreted differently in the future, Chinese regulatory authorities could disallow our current operating structure, which would
likely result in a material change in our operations and/or a material change in the value of the securities we are registering for sale,
including that it could cause the value of such securities to significantly decline or become worthless.

 Our
business in China, through the operations of our PRC subsidiaries, are governed by PRC law, including PRC foreign investment laws and
regulations, among others. On January 1, 2020, the PRC Foreign Investment Law, or the Foreign Investment Law, and the Regulations for
Implementation of the Foreign Investment Law of the People's Republic of China, or the Implementation Regulations, came into effect
and replaced the trio of prior laws regulating foreign investment in China, namely, the Sino-foreign Equity Joint Venture Enterprise
Law, the Sino-foreign Cooperative Joint Venture Enterprise Law and the Wholly Foreign-invested Enterprise Law, together with their implementation
rules and ancillary regulations. The relevant PRC Telecommunications Regulations require a telecommunication service provider in China
to obtain an operating license from the Ministry of Industry and Information Technology, or MIIT, or its provincial counterparts, prior
to commencement of operations. Foreign direct investment in telecommunications companies in China is governed by the Administrative Rules
on Foreign-invested Telecommunications Enterprises, or the FITE Regulations, which was issued by the State Council on December 11, 2001
and amended on February 6, 2016. On March 29, 2022, the State Council issued the Decision on Revising or Abolishing Some Administrative
Regulations which will take effective May 1, 2022, made certain significant changes to the 2016 FITE Regulations. Under the 2016 FITE
Regulations, a foreign investor who invests in a value-added telecommunications business in the PRC must possess prior experience in
and a proven track record of operating value-added telecommunications businesses overseas (the "Qualification Requirements"),
while the 2022 Decision repeals the Qualification Requirements. Therefore, the restrictions of Qualification Requirements no longer apply
to foreign investors. Investments in the PRC by foreign investors and foreign-invested enterprises are also regulated by the Catalogue
of Industries in which Foreign Investment is Encouraged (2020 Edition), or the 2020 Catalogue, and the Special Administrative Measures
for Foreign Investment Access (Negative List 2021), or the 2021 Negative List. Under the Circular on Loosening the Restriction on Foreign
Shareholdings in Online Data Processing and Transaction Processing Business (for E-commerce), or Circular 196, issued by MIIT on June
19, 2015, foreign investors may hold up to 100% of all equity interest in an online data processing and transaction processing business
operating e-commerce in China. Apart from e-commerce, the 2021 Negative List also provides that foreign investors may hold 100% equity
interest in domestic multi-party communications, data collection and transmission services and call centers. Pursuant to these laws and
regulations, we are permitted, through our subsidiaries, to engage
in food and related product purchases and sales via online platforms as a provider of online data processing and transaction processing
services. However, the relevant PRC foreign investment regulations are still evolving, and there have been limited guidance and interpretation
with respect to these new rules and regulations.

 In
July 2021, the Chinese government provided new guidance on Chinese companies raising capital outside of mainland China, including through
arrangements called variable interest entities, or VIEs. Currently, our corporate structure contains no variable interest entities and
we are not in an industry that is subject to foreign ownership limitations in mainland China. However, there are uncertainties with respect
to the Chinese legal system and there may be changes in laws, regulations and policies, including how those laws, regulations and policies
will be interpreted or implemented. If in the future the Chinese government determines that our corporate structure does not comply with
Chinese regulations, or if Chinese regulations change or are interpreted differently, the value of our securities may decline or become
worthless.

 In
addition, pursuant to the PRC M&A Rules, an offshore special purpose vehicle formed for listing purposes and controlled directly
or indirectly by Chinese companies or individuals is required to obtain the approval of the CSRC prior to the listing and trading of
such SPV's securities on an overseas stock exchange. However, the provisions of the M&A Rules remains unclear regarding the
scope and applicability of the CSRC approval requirement. The CSRC has not issued any definitive rule or interpretations. Based on the
current laws and regulations, our Chinese legal counsel has advised us that the M&A Rules and related regulations do not require
the Company or its PRC subsidiaries to obtain prior approval from CSRC for the listing and trading of the Company's shares on an
overseas securities market, given that our wholly foreign-owned enterprise subsidiaries were established by direct investment, rather
than by a merger with or an acquisition of any PRC domestic companies as defined under the M&A Rules. However, there are substantial
uncertainties as to how the M&A Rules are interpreted or implemented in the context of an overseas offering and our PRC counsel's
opinions stated above are subject to further changes in PRC laws or implementations and interpretations of the M&A Rules, and there
can be no assurance that the PRC governmental agencies will ultimately take a view that is consistent with our PRC counsel's opinion
stated above.

 If
the PRC regulatory authorities were to find our legal structure and operations in the PRC to be in violation of any PRC laws, administrative
regulations or provisions, we are uncertain what impact of PRC regulatory authorities' actions would have on us and our subsidiaries
and we may lose our right to operate in China through our investment and ownership in our PRC subsidiaries. If the Chinese government
determines that our corporate structure does not comply with Chinese regulations, or if Chinese regulations change or are interpreted
differently in the future, Chinese regulatory authorities could disallow our current operating structure, which would likely result in
a material change in our operations and/or a material change in the value of the securities we are registering for sale, including that
it could cause the value of such securities to significantly decline or become worthless.

 The
Chinese government may intervene or influence our operations at any time, or may exert more control over offerings conducted overseas
and/or foreign investment in China-based issuers, which could result in a material change in our operations and/or the value of the securities
we are registering for sale.

 The
Chinese government has significant oversight and discretion over the conduct of our business and may intervene or influence our operations
as the government deems appropriate to further regulatory, political and societal goals. The Chinese government has recently published
new policies that significantly affected certain industries such as the education and internet industries, and we cannot rule out the
possibility that it will in the future release regulations or policies regarding the food and beverage industry or the supply chain industry
that could require us to seek permission from Chinese authorities to continue to operate our business, which may adversely affect our
business, financial condition and results of operations. Furthermore, recent statements made by the Chinese government have indicated
an intent to increase the government's oversight and control over offerings of companies with significant operations in mainland
China that are to be conducted in foreign markets, as well as foreign investment in China-based issuers like us. Any future action by
the Chinese government expanding the categories of industries and companies whose foreign securities offerings are subject to government
review could significantly limit or completely hinder our ability to offer or continue to offer securities to investors or could disallow
our current operating structure, which would likely result in a material change in our operations and/or a material change in the value
of our securities, including causing the value of such securities to significantly decline or become worthless.

 On
July 6, 2021, the General Office of the Communist Party of China Central Committee and the General Office of the State Council jointly
issued a document to crack down on illegal activities in the securities market and promote the high-quality development of the capital
market, which, among other things, requires the relevant governmental authorities to strengthen cross-border oversight of law enforcement
and judicial cooperation, to enhance supervision over China-based companies listed overseas, and to establish and improve the system
of extraterritorial application of the PRC securities laws. Since this document is relatively new, uncertainties still exist in relation
to how soon legislative or administrative regulation making bodies will respond and what existing or new laws or regulations or detailed
implementations and interpretations will be modified or promulgated, if any, and the potential impact such modified or new laws and regulations
will have on our future business combination with a company with major operation in China.

 Further,
Chinese government continues to exert more oversight and control over Chinese technology firms. On July 2, 2021, Chinese cybersecurity
regulator announced, that it had begun an investigation of Didi Global Inc. (NYSE: DIDI) and two days later ordered that the company's
application be removed from smartphone application stores. On July 5, 2021, the Chinese cybersecurity regulator launched the same investigation
on two other Internet platforms, China's Full Truck Alliance of Full Truck Alliance Co. Ltd. (NYSE: YMM) and Boss of KANZHUN LIMITED
(Nasdaq: BZ).

 On
December 24, 2021, the CSRC issued the Administrative Provisions of the State Council Regarding the Overseas Issuance and Listing of
Securities by Domestic Enterprises (the "Draft Administrative Provisions") and the Measures for the Overseas Issuance of
Securities and Listing Record-Filings by Domestic Enterprises (Draft for Comments) (the "Draft Filing Measures"), collectively,
the Draft Overseas Listing Rules. On February 17, 2023, the CSRC issued the Trial Measures and five application guidelines, or the Overseas
Listing Rules, which became effective on March 31, 2023. According to the Overseas Listing Rules, among other things, all China-based
companies applying for overseas securities issuance, listing and post-listing capital operations shall be subject to statutory procedures,
such as filing and information reporting requirement. After making initial applications with overseas stock markets for offerings or
listings, all China-based companies shall file with the CSRC within three business days. In addition, overseas offerings and listings
are prohibited for such China-based companies when any of the following applies: (a) where such securities offering and listing is explicitly
prohibited by applicable PRC laws, administrative regulations and rules; (b) where a intended securities offering and listing may endanger
national security as reviewed and determined by competent authorities under the State Council in accordance with law; (c) where a domestic
company intending to make a securities offering and listing, or its controlling shareholder(s) or actual controlling person(s), have
committed crimes, such as corruption, bribery, embezzlement, misappropriation of property or undermining the order of the socialist market
economy, during the past three years; (d) where a domestic company intending to make a securities offering and listing is suspected of
committing crimes or major violations of laws and regulations, and is under investigation according to law, and no conclusion has yet
been made thereof; (e) where there are material ownership disputes over equity held by the domestic company's controlling shareholder
or by other shareholders that are controlled by the controlling shareholder and/or actual controller. The Overseas Listing Rules further
provide that a fine between RMB 1 million and RMB 10 million may be imposed if a company fails to fulfill the filing requirements with
the CSRC or conducts an overseas offering or listing in violation of the Overseas Listing Rules. Overseas issuance and listings subject
to the Overseas Listing Rules include direct and indirect issuance and listings. According to the Notice on the Administrative Procedures
for the Filing of Overseas Offerings and Listings by Domestic Companies published by the CSRC on February 17, 2023, existing listed companies
are not required to make any filings until they conduct a new offering or financing transaction in the future. A company is regarded
as an existing listed company if it (a) has already completed overseas listing or offering, or (b) has already obtained the approval
for the offering or listing from overseas securities regulatory authorities or stock exchanges but has not completed such offering or
listing before effective date of the Overseas Listing Rules and also completes the offering or listing before September 30, 2023. On
the effective date of the Overseas Listing Rules, PRC companies that have already submitted offering and listing applications but have
not yet obtained the approvals from overseas securities regulators or exchanges shall make filings with the CSRC at a reasonable time
before the completion of the offerings or listings. We believe that our offering and the listing of our shares on Nasdaq Capital Market
would be deemed an indirect overseas offering and listing under the Overseas Listing Rules and will be required to complete the filing
procedures and submit the relevant information to CSRC if we cannot obtain the approvals for this offering and listing from the U.S.
securities regulators or the Nasdaq before the Overseas Listing Rules become effective. As of the date of this report, the Overseas Listing
Rules have not become effective and we are not required to complete the filing procedures if we obtain the approvals for this offering
and listing from the U.S. securities regulators and the Nasdaq before the Overseas Listing Rules take effect and complete this offering
and begin the trading of our securities on the Nasdaq before September 30, 2023. In addition, after the Overseas Listing Rules take effect,
even if we are required to complete the filing procedures, we would only need to submit the filing materials and no CSRC approval would
be required under the rules. Because we are relying on an opinion of counsel, there is uncertainty inherent in relying on an opinion
of counsel in connection with whether we are required to obtain permissions from a governmental agency that is required to approve of
our operations and/or listings. In the event that an government approval is required, we cannot assure you that we will be able to receive
clearance in a timely manner, or at all. Any failure of us to fully comply with new regulatory requirements may significantly limit or
completely hinder our ability to offer or continue to offer our common stock, cause significant disruption to our business operations,
severely damage our reputation, materially and adversely affect our financial condition and results of operations and cause our shares
to significantly decline in value or become worthless.

 China
Securities Regulatory Commission and other Chinese government agencies may exert more oversight and control over offerings that are conducted
overseas and foreign investment in China-based issuers, especially those in the technology filed. Additional compliance procedures may
be required in connection with this offering and our business operations, and, if required, we cannot predict whether we will be able
to obtain such approval. As a result, we face uncertainty about future actions by the PRC government that could significantly affect
our ability to offer or continue to offer securities to investors and cause the value of our shares to significantly decline or be worthless.

 We
may be subject to PRC laws relating to the collection, use, sharing, retention, security, and transfer of confidential and private information,
such as personal information and other data. These laws continue to develop, and the PRC government may adopt other rules and restrictions
in the future. Non-compliance could result in penalties or other significant legal liabilities.

 Any
failure or perceived failure by our PRC subsidiaries to comply with the Anti-Monopoly Guidelines for Internet Platforms Economy Sector
and other PRC anti-monopoly laws and regulations may result in governmental investigations or enforcement actions, litigation or claims
against us and could have an adverse effect on our business, financial condition and results of operations.

 The
PRC anti-monopoly enforcement agencies have strengthened enforcement under the PRC Anti-Monopoly Law in the recent years. On December
28, 2018, the SAMR issued the Notice on Anti-monopoly Enforcement Authorization, pursuant to which its province-level branches are authorized
to conduct anti-monopoly enforcement within their respective jurisdictions. On September 11, 2020, the Anti-Monopoly Commission of the
State Council issued Anti-monopoly Compliance Guideline for Operators, which requires operators to establish anti-monopoly compliance
management systems under the PRC Anti-Monopoly Law to manage anti-monopoly compliance risks. On February 7, 2021, the Anti-Monopoly Commission
of the State Council published Anti-Monopoly Guidelines for the Internet Platform Economy Sector that specified circumstances under which
an activity of an internet platform will be identified as monopolistic act as well as concentration filing procedures for business operators.
According to the PRC Anti-Monopoly Law, if a business operator carries out a concentration in violation of the law, the relevant authority
shall order the business operator to terminate the concentration, dispose of the shares or assets or transfer the business within a specified
time limit, or take other measures to restore the pre-concentration status, and impose a fine of up to RMB500,000. On March 12, 2021,
the SAMR published several administrative penalty cases in connection with concentration of business operators that violated PRC Anti-Monopoly
Law in the internet sector.

 On
October 23, 2021, the Standing Committee of the National People's Congress issued a discussion draft of the amended Anti-Monopoly
Law, which proposes to increase the fines for illegal concentration of business operators to "no more than ten percent of its last
year's sales revenue if the concentration of business operator has or may have an effect of excluding or limiting competition;
or a fine of up to RMB5 million if the concentration of business operator does not have an effect of excluding or limiting competition."
The draft also proposes for the relevant authority to investigate transaction where there is evidence that the concentration has or may
have the effect of eliminating or restricting competition, even if such concentration does not reach the filing threshold. On December
24, 2021, nine government agencies, including the NDRC, jointly issued the Opinions on Promoting the Healthy and Sustainable Development
of Platform Economy, which provides that, among others, monopolistic agreements, abuse of dominant market position and illegal concentration
of business operators in the field of platform economy will be strictly investigated and punished in accordance with the relevant laws.

 At
the present time, we have a relatively small scale supply chain platform operations based on our market share in our product markets
and other factors. We are not an operator with a dominant market position, and our operating activity cannot constitute an anti-monopoly
behavior that abuses our dominant market position. We have not entered into monopoly agreements prohibited by the Anti-Monopoly Law with
competing business operators. As of the date of the report, we have not received a notification from the anti-monopoly regulatory authority
requiring us to file the concentration of undertakings or received any related administrative penalties. We believe that we are in compliance
with the currently effective PRC anti-monopoly laws in all material aspects. Nevertheless, if the PRC regulatory authorities identify
any of our activities as monopolistic under the PRC Anti-Monopoly Law or the Anti-Monopoly Guidelines for the Internet Platform Economy
Sector, we may be subject to investigations and administrative penalties, and therefore materially
and adversely affect our financial conditions, operations and business prospects. If we are required to take any rectifying or remedial
measures or are subject to any penalties, our reputation and business operations may be materially and adversely affected.

in our securities may be prohibited under the Holding Foreign Companies Accountable Act if the PCAOB determines that it cannot inspect
or investigate completely our auditors for two consecutive years.

 In
recent years, U.S. regulatory authorities have continued to express their concerns about challenges in their oversight of financial statement
audits of U.S.-listed companies with significant operations in China. As part of a continued regulatory focus in the United States on
access to audit and other information, the Holding Foreign Companies Accountable Act, or the HFCAA, was enacted on December 18, 2020.
The HFCAA includes requirements for the SEC to identify issuers whose audit work is performed by auditors that the PCAOB is unable to
inspect or investigate completely because of a restriction imposed by a non-U.S. authority in the auditor's local jurisdiction.
The HFCAA also requires that, to the extent that the PCAOB has been unable to inspect an issuer's auditor for three consecutive
years since 2021, the SEC shall prohibit its securities registered in the United States from being traded on any national securities
exchange or over-the-counter markets in the United States.

 On
March 24, 2021, the SEC adopted interim final rules relating to the implementation of certain disclosure and documentation requirements
of the HFCAA. The interim final rule applies to registrants that the SEC identifies as having filed an annual report with an audit report
issued by a registered public accounting firm that is located in a foreign jurisdiction that the PCAOB is unable to inspect or investigate
completely because of a position taken by an authority in that jurisdiction. Consistent with the HFCAA, the interim final rule requires
the submission of documentation to the SEC establishing that such a registrant is not owned or controlled by a government entity in that
foreign jurisdiction and also requires disclosure in a foreign issuer's annual report regarding the audit arrangements of, and
government influence on, such registrants. On May 13, 2021, the PCAOB issued proposed PCAOB Rule 6100, Board Determinations Under the
Holding Foreign Companies Accountable Act for public comment. The proposed rule provides a framework for making determinations as to
whether PCAOB is unable to inspect an audit firm in a foreign jurisdiction, including the timing, factors, bases, publication and revocation
or modification of such determinations, and such determinations will be made on a jurisdiction-wide basis in a consistent manner applicable
to all firms headquartered in the jurisdiction. In November 2021, the SEC approved PCAOB Rule 6100.

 On
December 2, 2021, the SEC issued amendments to finalize rules implementing the submission and disclosure requirements in the HFCAA. The
rules apply to registrants that the SEC identifies as having filed an annual report with an audit report issued by a registered public
accounting firm that is located in a foreign jurisdiction and that PCAOB is unable to inspect or investigate completely because of a
position taken by an authority in foreign jurisdictions.

 On
December 16, 2021, the PCAOB announced the PCAOB Holding Foreign Companies Accountable Act determinations (the "PCAOB determinations")
relating to the PCAOB's inability to inspect or investigate completely registered public accounting firms headquartered in mainland
China of the PRC or Hong Kong, a Special Administrative Region and dependency of the PRC, because of a position taken by one or more
authorities in the PRC or Hong Kong.

 On
August 26, 2022, the PCAOB signed a SOP with the CSRC and the MOF of the PRC regarding cooperation in the oversight of PCAOB-registered
public accounting firms in the PRC and Hong Kong which establishes a method for the PCAOB to conduct inspections of PCAOB-registered
public accounting firms in the PRC and Hong Kong, as contemplated by the Sarbanes-Oxley Act. Under the agreement, (a) the PCAOB has sole
discretion to select the firms, audit engagements and potential violations it inspects and investigates without consultation with, or
input from, PRC authorities; (b) procedures are in place for PCAOB inspectors and investigators to view complete audit work papers with
all information included and for the PCAOB to retain information as needed; (c) the PCAOB has direct access to interview and take testimony
from all personnel associated with the audits the PCAOB inspects or investigates; and (d) the PCAOB shall have the unfettered ability
to transfer information to the SEC in accordance with the Sarbanes-Oxley Act, and the SEC can use the information for all regulatory
purposes, including administrative or civil enforcement actions. The PCAOB was required to reassess its determinations as to whether
it is able to carry out inspections and investigations completely and without obstruction by the end of 2022. On December 15, 2022, the
PCAOB determined that the PCAOB was able to secure complete access to inspect and investigate registered public accounting firms headquartered
in mainland China and Hong Kong and vacated its previous determinations. However, should PRC authorities obstruct or otherwise fail to
facilitate the PCAOB's access in the future, the PCAOB will consider the need to issue a new determination.

 Congress
passed fiscal year 2023 Omnibus spending legislation in December 2022, which contained provisions to accelerate the HFCAA timeline for
implementation of trading prohibitions from three years to two years. As a result, the SEC is required to prohibit an issuer's
securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections or complete investigations for
two consecutive years.

 Our
current auditor, YCM CPA, an independent registered public accounting firm that is headquartered in the Irvine, California,
with offices in China, is a firm registered with the PCAOB and is required by the laws of the U.S. to undergo regular inspections by
the PCAOB to assess its compliance with the laws of the U.S. and professional standards. YCM CPA has been subject to PCAOB
inspections on a regular basis and is not among the PCAOB-registered public accounting firms headquartered in the PRC or Hong Kong
that are subject to PCAOB's determination.

 Notwithstanding
the foregoing, if it is later determined that the PCAOB is unable to inspect or investigate our auditor completely, or if there is any
regulatory change or step taken by PRC regulators that does not permit YCM CPA to provide audit documentations located in China
or Hong Kong to the PCAOB for inspection or investigation, or the PCAOB expands the scope of the Determination so that we are subject
to the HFCAA, as the same may be amended, we would fail to meet the PCAOB's requirements. Any audit reports not issued by auditors
that are completely inspected or investigated by the PCAOB, or a lack of PCAOB inspections or investigations of audit work undertaken
in China that prevents the PCAOB from regularly evaluating our auditors' audits and their quality control procedures, could result
in a lack of assurance that our financial statements and disclosures are adequate and accurate.

 All
of these developments have brought additional uncertainties to our offering and we cannot assure you whether Nasdaq or regulatory authorities
would apply additional and more stringent criteria to us after considering the effectiveness of our auditor's audit procedures
and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach or experience as it
relates to the audit of our financial statements. It remains unclear what further actions the SEC, the PCAOB or Nasdaq will take to address
these issues and what impact those actions will have on U.S. companies that have significant operations in the PRC and have securities
listed on a U.S. stock exchange (including a national security exchange or over-the-counter stock market). In addition, any additional
actions, proceedings, or new rules resulting from these efforts to increase U.S. regulatory access to audit information could create
some uncertainty for investors, the market price of our shares could be adversely affected, and we could be delisted if we and our auditor
are unable to meet the PCAOB inspection requirement or being required to engage a new audit firm, which would require significant expense
and management time.

 We
may be exposed to liabilities under the Foreign Corrupt Practices Act, and any determination that we violated the foreign corrupt practices
act could have a material adverse effect on our business.

 We
are subject to the Foreign Corrupt Practice Act, or FCPA, and other laws that prohibit improper payments or offers of payments to foreign
governments and their officials and political parties by U.S. persons and issuers as defined by the statute for the purpose of obtaining
or retaining business. We will have operations, agreements with third parties and make sales in the PRC, which may experience corruption.
Our proposed activities in the PRC create the risk of unauthorized payments or offers of payments by one of the employees, consultants,
or sales agents of our Company, because these parties are not always subject to our control. It is our policy to implement safeguards
to discourage these practices by our employees. Also, our existing safeguards and any future improvements may prove to be less than effective,
and the employees, consultants, or sales agents of our Company may engage in conduct for which we might be held responsible. Violations
of the FCPA may result in severe criminal or civil sanctions, and we may be subject to other liabilities, which could negatively affect
our business, operating results and financial condition. In addition, the government may seek to hold our Company liable for successor
liability FCPA violations committed by companies in which we invest or that we acquire.

 You
may have difficulty enforcing judgments against us.

 We
are a Nevada corporation but most of our assets are and will be located outside of the United States. Almost all our operations are conducted
in the PRC. In addition, all our officers and directors are the nationals and residents of a country other than the United States. Almost
all of their assets are located outside the United States. As a result, it may be difficult for you to effect service of process within
the United States upon them. It may also be difficult for you to enforce in U.S. courts judgments on the civil liability provisions of
the U.S. federal securities laws against us and our officers and directors, since he or she is not a resident in the United States. In
addition, there is uncertainty as to whether the courts of the PRC or other jurisdictions would recognize or enforce judgments of U.S.
courts.

 Chinese
economic growth slowdown may have a negative effect on our business.

 Since
2014, Chinese economic growth has been slowing down from double-digit GDP speed. The annual rate of growth declined from 7.3% in 2014
to 6.9% in 2015, to 6.7% in 2016, to 6.9% in 2017, to 6.6% in 2018, and to 6.1% in 2019. Due to the impact of COVID-19, China's
economic growth rate in 2020 has slowed to 2.3%, its lowest level in years. While technology-based financial services companies have
not been affected by the pandemic on the same level as companies in certain other industries, nevertheless a slow economic growth could
adversely affect many of our customers and partners, which in turn may materially adversely affect our financial condition and results
of operations.

 Under
the Enterprise Income Tax Law, we may be classified as a "Resident Enterprise" of China. Such classification will likely
result in unfavorable tax consequences to us and our non-PRC stockholders.

 China
passed an Enterprise Income Tax Law (the "EIT Law"), as most recently amended and effective on December 29, 2018, and the
related Implementation Regulations, as amended and effective on April 23 2019. Under the EIT Law, an enterprise established outside of
China with "de facto management bodies" within China is considered a "resident enterprise," meaning that it can
be treated in a manner similar to a Chinese enterprise for enterprise income tax purposes. The implementing rules of the EIT Law define
de facto management as "substantial and overall management and control over the production and operations, personnel, accounting,
and properties" of the enterprise.

 On
April 22, 2009, the State Administration of Taxation of China issued the Notice Concerning Relevant Issues Regarding Cognizance of Chinese
Investment Controlled Enterprises Incorporated Offshore as Resident Enterprises pursuant to Criteria of de facto Management Bodies, or
the Notice, further interpreting the application of the EIT Law and its implementation to offshore entities controlled by a Chinese enterprise
or group. Pursuant to the Notice, an enterprise incorporated in an offshore jurisdiction and controlled by a Chinese enterprise or group
will be classified as a "non-domestically incorporated resident enterprise" if (i) its senior management in charge of daily
operations reside or perform their duties mainly in China; (ii) its financial or personnel decisions are made or approved by bodies or
persons in China; (iii) its substantial assets and properties, accounting books, corporate stamps, board and stockholder minutes are
kept in China; and (iv) at least half of its directors with voting rights or senior management are often resident in China. A resident
enterprise would be subject to an enterprise income tax rate of 25% on its worldwide income and must pay a withholding tax at a rate
of 10% when paying dividends to its non-PRC stockholders.

 FVTI
does not have a PRC enterprise or enterprise group as its primary controlling shareholder and is therefore not a Chinese-controlled offshore
incorporated enterprise within the meaning of the Notice, so we believe the Notice is not applicable to us. However, in the absence of
guidance specifically applicable to us, we have applied the guidance set forth in the Notice to evaluate the tax residence status of
FVTI.

 We
do not believe that we meet some of the conditions outlined. As a holding company, the key assets and records of FVTI including the resolutions
and meeting minutes of our board of directors and the resolutions and meeting minutes of our shareholders, are located and maintained
outside the PRC. In addition, we are not aware of any offshore holding companies with a corporate structure similar to ours that have
been deemed a PRC "resident enterprise" by the PRC tax authorities. Accordingly, we believe that FVTI should not be treated
as a "resident enterprise" for PRC tax purposes if the criteria for "de facto management body" as set forth in
the Notice were deemed applicable to us. However, as the tax residency status of an enterprise is subject to determination by the PRC
tax authorities and uncertainties remain with respect to the interpretation of the term "de facto management body" as applicable
to our offshore entities, we will continue to monitor our tax status.

 If
the PRC tax authorities determine that we are a "resident enterprise" for PRC enterprise income tax purposes, a number of
unfavorable PRC tax consequences could follow. First, we may be subject to the enterprise income tax at a rate of 25% on our worldwide
taxable income as well as PRC enterprise income tax reporting obligations. In our case, this would mean that income such as non-China
source income would be subject to PRC enterprise income tax at a rate of 25%. Currently, we do not have any non-China source income,
so this would have minimal effect on us; however, if we develop non-China source income in the future, we could be adversely affected.
Second, under the EIT Law and its implementing rules, dividends paid to us from our PRC subsidiaries would qualify as "tax-exempt
income." Finally, it is possible that future guidance issued with respect to the new "resident enterprise" classification
could result in a situation in which a 10% withholding tax is imposed on dividends we pay to our non-PRC stockholders and with respect
to gains derived by our non-PRC stockholders from transferring our shares. If we were treated as a "resident enterprise"
by the PRC tax authorities, we would be subject to taxation in both the U.S. and China, but our PRC source income will not be taxed in
the U.S. again because the U.S.-China tax treaty will avoid double taxation between these two nations.

 In
addition, pursuant to the Arrangement between Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double
Taxation and Tax Evasion on Income, or the Double Tax Avoidance Arrangement, the 10% withholding tax rate may be reduced to 5% if a Hong
Kong resident enterprise owns no less than 25% of a PRC entity. However, the 5% withholding tax rate does not automatically apply and
certain requirements must be satisfied, including, without limitation, that (a) the Hong Kong entity must be the beneficial owner of
the relevant dividends; and (b) the Hong Kong entity must directly hold no less than 25% share ownership in the PRC entity during the
12 consecutive months preceding its receipt of the dividends. In practice, a Hong Kong entity must obtain a tax resident certificate
from the Hong Kong tax authority to apply for the 5% lower PRC withholding tax rate. As the Hong Kong tax authority will issue such a
tax resident certificate on a case-by-case basis, we cannot be certain that we will be able to obtain the tax resident certificate from
the relevant Hong Kong tax authority and enjoy the preferential withholding tax rate of 5% under the Double Taxation Arrangement with
respect to any dividends to be paid by our WFOE, QHDX, to our Hong Kong subsidiary, DILHK. QHDX currently does not have any plan to declare
and pay dividends, and we have not applied for the tax resident certificate from the relevant Hong Kong tax authority. DILHK will apply
for the tax resident certificate when QHDX plans to declare and pay dividends.

 PRC
regulation of loans and direct investment by offshore holding companies in PRC entities may delay or prevent us from using the proceeds
of our securities offerings to make loans or additional capital contributions to our PRC operating subsidiaries, which could materially
and adversely affect our liquidity and our ability to fund and expand our business.

 In
the normal course of our business, we may make loans to our PRC subsidiaries or may make additional capital contributions to our PRC
subsidiaries. Any loans to our wholly foreign-owned or holding subsidiaries in China, which are treated as foreign-invested enterprises
("FIEs") under PRC law, are subject to PRC regulations and foreign exchange loan registrations. For example, loans by us
to our FIE subsidiaries in China to finance their activities cannot exceed statutory limits and must be registered with SAFE or its local
counterparts, or filed with SAFE in its information system. In addition, a foreign invested enterprise shall use its capital pursuant
to the principle of authenticity and self-use within its business scope. The capital of a foreign invested enterprise shall not be used
for the following purposes: (i) directly or indirectly used for payment beyond the business scope of the enterprises or the payment prohibited
by relevant laws and regulations; (ii) directly or indirectly used for investment in securities or investments other than banks'
principal-secured products unless otherwise provided by relevant laws and regulations; (iii) granting of loans to non-affiliated enterprises,
except where it is expressly permitted in the business license; and (iv) paying the expenses related to the purchase of real estate that
is not for self-use (except for the foreign-invested real estate enterprises).

 SAFE
promulgated the Notice of the State Administration of Foreign Exchange on Reforming the Administration of Foreign Exchange Settlement
of Capital of Foreign-invested Enterprises, or SAFE Circular 19, effective June 2015, in replacement of the Circular on the Relevant
Operating Issues Concerning the Improvement of the Administration of the Payment and Settlement of Foreign Currency Capital of Foreign-Invested
Enterprises, the Notice from the State Administration of Foreign Exchange on Relevant Issues Concerning Strengthening the Administration
of Foreign Exchange Businesses, and the Circular on Further Clarification and Regulation of the Issues Concerning the Administration
of Certain Capital Account Foreign Exchange Businesses. According to SAFE Circular 19, the flow and use of the RMB capital converted
from foreign currency-denominated registered capital of a foreign-invested company is regulated such that RMB capital may not be used
for the issuance of RMB entrusted loans, the repayment of inter-enterprise loans or the repayment of banks loans that have been transferred
to a third party. Although SAFE Circular 19 allows RMB capital converted from foreign currency-denominated registered capital of a foreign-invested
enterprise to be used for equity investments within China, it also reiterates the principle that RMB converted from the foreign currency-denominated
capital of a foreign-invested company may not be directly or indirectly used for purposes beyond its business scope. SAFE promulgated
the Notice of the State Administration of Foreign Exchange on Reforming and Standardizing the Foreign Exchange Settlement Management
Policy of Capital Account, or SAFE Circular 16, effective on June 9, 2016, which reiterates some of the rules set forth in SAFE Circular
19, but changes the prohibition against using RMB capital converted from foreign currency-denominated registered capital of a foreign-invested
company to issue RMB entrusted loans to a prohibition against using such capital to issue loans to non-associated enterprises. Violations
of SAFE Circular 19 and SAFE Circular 16 could result in administrative penalties. SAFE Circular 19 and SAFE Circular 16 may significantly
limit our ability to transfer any foreign currency we hold, including the net proceeds from this offering, to our PRC subsidiaries, which
may adversely affect our liquidity and our ability to fund and expand our business in China. On October 23, 2019, the SAFE promulgated
the Notice of the State Administration of Foreign Exchange on Further Promoting the Convenience of Cross-border Trade and Investment,
or the SAFE Circular 28, which, among other things, allows all foreign-invested companies to use Renminbi converted from foreign currency-denominated
capital for equity investments in China, as long as the equity investment is genuine, does not violate applicable laws, and complies
with the negative list on foreign investment. However, since the SAFE Circular 28 is newly promulgated, it is unclear how SAFE and competent
banks will implement the relevant rules in practice.

 In
light of the various requirements imposed by PRC regulations on loans to and direct investment in PRC entities by offshore holding companies,
we cannot be certain that we will be able to complete the necessary government registrations or obtain the necessary government approvals
on a timely basis, if at all, with respect to future loans to our PRC subsidiaries or future capital contributions by us to our subsidiaries
in China. As a result, uncertainties exist as to our ability to provide prompt funding to our PRC subsidiaries when needed. If we fail
to complete such registrations or obtain such approvals, our ability to use the proceeds we expect to receive from this offering and
to capitalize or otherwise fund our PRC operations may be negatively affected, which could materially and adversely affect our financial
condition and operating results.

 We
may rely on dividends and other distributions on equity paid by our PRC subsidiaries to fund any cash and financing requirements we may
have, and any limitation on the ability of our PRC subsidiaries to make payments to us could have a material and adverse effect on our
ability to conduct our business.

 We
rely principally on dividends and other distributions on equity from our PRC subsidiaries for our cash requirements, including for services
of any debt we may incur. Our PRC subsidiaries' ability to distribute dividends is based upon their distributable earnings. Current
PRC regulations permit our PRC subsidiaries to pay dividends to their respective shareholders only out of their accumulated profits,
if any, determined in accordance with PRC accounting standards and regulations. In addition, each of our PRC subsidiaries, as a Foreign
Invested Enterprise, or FIE, are required to draw 10% of its after-tax profits each year, if any, to fund a statutory reserve, which
may stop drawing its after-tax profits if the aggregate balance of the statutory reserve has already accounted for over 50 percent of
its registered capital. These reserves are not distributable as cash dividends. If our PRC subsidiaries incur debt on their own behalf
in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments to us. Any limitation
on the ability of our PRC subsidiaries to distribute dividends or other payments to their respective shareholders could materially and
adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends or otherwise
fund and conduct our business.

 In
addition, the Enterprise Income Tax Law and its implementation rules provide that a withholding tax rate of up to 10% will be applicable
to dividends payable by Chinese companies to non-PRC-resident enterprises unless otherwise exempted or reduced according to treaties
or arrangements between the PRC central government and governments of other countries or regions where the non-PRC resident enterprises
are incorporated.

 Governmental
control of currency conversion may affect the value of your investment.

 The
PRC government imposes controls on the convertibility of the RMB into foreign currencies and, in certain cases, the remittance of currency
out of China. We receive substantially all of our revenues in RMB. Under our current corporate structure, our income will currently only
be derived from dividend payments from our PRC subsidiaries. Shortages in the availability of foreign currency may restrict the ability
of our PRC subsidiaries to remit sufficient foreign currency to pay dividends or other payments to us, or otherwise satisfy their foreign
currency denominated obligations. Under existing PRC foreign exchange regulations, payments of current account items, including profit
distributions, interest payments and expenditures from trade-related transactions can be made in foreign currencies without prior approval
from SAFE by complying with certain procedural requirements. However, approval from appropriate government authorities is required where
RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated
in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign currencies for current
account transactions. If the foreign exchange control system prevents us from obtaining sufficient foreign currency to satisfy our currency
demands, we may not be able to pay dividends in foreign currencies to our security-holders or to fund our business activities outside
of the PRC. In addition, there can be no assurance that the PRC government will not intervene or impose restrictions on our ability to
transfer cash or assets within our organization or to foreign investors, which could result in an inability or prohibition on making
transfers or distributions outside of PRC and may adversely affect our business, financial condition and results of operations.

 To
the extent cash or assets in the business is in the PRC or Hong Kong or a PRC or Hong Kong entity, such cash or assets may not be available
to fund operations or for other use outside of the PRC or Hong Kong due to interventions in or the imposition of restrictions and limitations
on the ability of us or our subsidiaries by the PRC government to transfer cash or assets.

 The
transfer of cash and assets among us, our Hong Kong and PRC subsidiaries is subject to restrictions. The PRC government imposes controls
on the conversion of the RMB into foreign currencies and the remittance of currencies out of the PRC. In addition, the PRC Enterprise
Income Tax Law and its implementation rules provide that a withholding tax at a rate of 10% will be applicable to dividends payable by
Chinese companies to non-PRC-resident enterprises, unless reduced under treaties or arrangements between the PRC central government and
the governments of other countries or regions where the non-PRC resident enterprises are tax resident.

 As
of the date of this report, there are no restrictions or limitations imposed by the Hong Kong government on the transfer of capital within,
into and out of Hong Kong (including funds from Hong Kong to the PRC), except for the transfer of funds involving money laundering and
criminal activities. However, there is no guarantee that the Hong Kong government will not promulgate new laws or regulations that may
impose such restrictions in the future.

 As
a result of the foregoing PRC laws and regulations, to the extent cash or assets in the business is in the PRC or Hong Kong or a PRC
or Hong Kong entity, the funds or assets may not be available to fund operations or for other use outside of the PRC or Hong Kong due
to interventions in or the imposition of restrictions and limitations on the ability of us or our subsidiaries by the PRC government
to transfer cash or assets.

 Fluctuations
in exchange rates could adversely affect our business and the value of our securities.

 Changes
in the value of the RMB against the U.S. dollar, Euro and other foreign currencies are affected by, among other things, changes in China's
political and economic conditions. Any significant revaluation of the RMB may have a material adverse effect on our revenues and financial
condition, and the value of, and any dividends payable on our shares in U.S. dollar terms. For example, to the extent that we need to
convert U.S. dollars we receive from our securities offerings into RMB for our operations, appreciation of the RMB against the U.S. dollar
would have an adverse effect on RMB amount we would receive from the conversion. Conversely, if we decide to convert our RMB into U.S.
dollars for the purpose of paying dividends on our common stock or for other business purposes, appreciation of the U.S. dollar against
the RMB would have a negative effect on the U.S. dollar amount available to us. In addition, fluctuations of the RMB against other currencies
may increase or decrease the cost of imports and exports, and thus affect the price-competitiveness of our products against products
of foreign manufacturers or products relying on foreign inputs.

 Since
July 2005, the RMB is no longer pegged to the U.S. dollar. Although the People's Bank of China regularly intervenes in the foreign
exchange market to prevent significant short-term fluctuations in the exchange rate, the RMB may appreciate or depreciate significantly
in value against the U.S. dollar in the medium to long term. Moreover, it is possible that in the future PRC authorities may lift restrictions
on fluctuations in the RMB exchange rate and lessen intervention in the foreign exchange market.

 We
reflect the impact of currency translation adjustments in our financial statements under the heading "accumulated other comprehensive
income (loss)." For the years ended December 31, 2023 and 2022, we had foreign currency translation loss of $240,510 and foreign
currency translation loss of $807,766, respectively. Very limited hedging transactions are available in China to reduce our exposure
to exchange rate fluctuations. To date, we have not entered into any hedging transactions. While we may enter into hedging transactions
in the future, the availability and effectiveness of these transactions may be limited, and we may not be able to successfully hedge
our exposure at all. In addition, our foreign currency exchange gains and losses may be magnified by PRC exchange control regulations
that restrict our ability to convert RMB into foreign currencies.

to comply with the Individual Foreign Exchange Rules relating to the overseas direct investment or the engagement in the issuance or
trading of securities overseas by our PRC resident stockholders may subject such stockholders to fines or other liabilities.

 Our
ability to conduct foreign exchange activities in the PRC may be subject to the interpretation and enforcement of the Implementation
Rules of the Administrative Measures for Individual Foreign Exchange promulgated by SAFE in January 2007 (as amended and supplemented,
the "Individual Foreign Exchange Rules"). Under the Individual Foreign Exchange Rules, any PRC individual seeking to make
a direct investment overseas or engage in the issuance or trading of negotiable securities or derivatives overseas must make the appropriate
registrations in accordance with SAFE provisions. PRC individuals who fail to make such registrations may be subject to warnings, fines
or other liabilities.

 SAFE
promulgated the Notice on Relevant Issues Relating to Domestic Resident's Investment and Financing and Roundtrip Investment through
Special Purpose Vehicles, or Notice 37, in July 2014 that requires PRC residents or entities to register with SAFE or its local branch
in connection with their establishment or control of an offshore entity established for the purpose of overseas investment or financing.
In addition, such PRC residents or entities must update their SAFE registrations when the offshore special purpose vehicle undergoes
material events relating to material change of capitalization or structure of the PRC resident itself (such as capital increase, capital
reduction, share transfer or exchange, merger or spin off).

 We
may not be fully informed of the identities of all our beneficial owners who are PRC residents. For example, because the investment in
or trading of our shares will happen in an overseas public or secondary market where shares are often held with brokers in brokerage
accounts, it is unlikely that we will know the identity of all of our beneficial owners who are PRC residents. Furthermore, we have no
control over any of our future beneficial owners and we cannot assure you that such PRC residents will be able to complete the necessary
approval and registration procedures required by the Individual Foreign Exchange Rules.

 To
our knowledge, our beneficial owners, who are PRC residents, have not completed the Notice 37 registration. And we cannot guarantee that
all or any of the shareholders will complete the Notice 37 registration prior to the closing of this Offering. Failure by any such shareholders
or beneficial owners to comply with Notice 37 could restrict our overseas or cross-border investment activities, limit our PRC subsidiaries'
ability to make distributions or pay dividends or affect our ownership structure, which could adversely affect our business and prospects.
In addition, the PRC resident shareholders who fail to complete Notice 37 registration may subject to fines less than RMB50,000.

 As
these foreign exchange and outbound investment related regulations are relatively new and their interpretation and implementation has
been constantly evolving, it is unclear how these regulations, and any future regulation concerning offshore or cross-border investments
and transactions, will be interpreted, amended and implemented by the relevant government authorities.

 It
is uncertain how the Individual Foreign Exchange Rules will be interpreted or enforced and whether such interpretation or enforcement
will affect our ability to conduct foreign exchange transactions. Because of this uncertainty, we cannot be sure whether the failure
by any of our PRC resident stockholders to make the required registration will subject our PRC subsidiaries to fines or legal sanctions
on their operations, delay or restriction on repatriation of proceeds of our securities offerings into the PRC, restriction on remittance
of dividends or other punitive actions that would have a material adverse effect on our business, results of operations and financial
condition.

 There
are uncertainties under the PRC laws relating to the procedures for U.S. regulators to investigate and collect evidence from companies
located in the PRC.

 Shareholder
claims that are common in the U.S., including securities law class actions and fraud claims, among other matters, generally are difficult
to pursue as a matter of law or practicality in China. For example, in China, there are significant legal and other obstacles to obtaining
information needed for shareholder investigations or litigation outside China or otherwise with respect to foreign entities. Although
the local authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another
country or region to implement cross-border supervision and administration, such regulatory cooperation with the securities regulatory
authorities in the Unities States have not been efficient in the absence of mutual and practical cooperation mechanism. According to
Article 177 of the PRC Securities Law, which became effective in March 2020, or Article 177, the securities regulatory authority of the
State Council may collaborate with securities regulatory authorities of other countries or regions in order to monitor and oversee cross
border securities activities. Article 177 further provides that overseas securities regulatory authorities are not permitted to carry
out investigation and evidence collection directly within the territory of the PRC, and that any Chinese entities and individuals are
not allowed to provide documents or materials related to securities business activities to overseas agencies without prior consent of
the securities regulatory authority of the State Council and the competent departments of the State Council.

 Our
principal business operations are conducted in the PRC. In the event that the U.S. regulators carry out investigations with respect to
our business and need to conduct investigation or collect evidence within the territory of the PRC, the U.S. regulators may not be able
to carry out such investigation or evidence collection directly in the PRC under the PRC laws. The U.S. regulators may consider cross-border
cooperation with securities regulatory authority of the PRC by way of judicial assistance, diplomatic channels or regulatory cooperation
mechanism established with the securities regulatory authority of the PRC. However, there can be no assurance that the U.S. regulators
could succeed in establishing such cross-border cooperation in a specific case or could establish the cooperation in a timely manner.
If U.S. regulators are unable to conduct such investigations, such U.S. regulators may determine to suspend and ultimately delist our
common stock from the Nasdaq Capital Market or choose to suspend or de-register our SEC registration.

to comply with laws and regulations applicable to our business in China could subject us to fines and penalties and could also cause
us to lose customers or otherwise harm our business.

 Our
business is subject to regulation by various governmental agencies in China, including agencies responsible for monitoring and enforcing
compliance with various legal obligations, such as privacy and data protection-related laws and regulations, intellectual property laws,
employment and labor laws, workplace safety, environmental laws, consumer protection laws, governmental trade laws, import and export
controls, anti-corruption and anti-bribery laws, and tax laws and regulations. These laws and regulations impose added costs on our business.
Noncompliance with applicable regulations or requirements could subject us to:

 investigations, enforcement
 actions, and sanctions;

 mandatory changes to our
 supply chain system and products;

 disgorgement of profits,
 fines, and damages;

 civil and criminal penalties
 or injunctions;

 claims for damages by our
 customers or partners;

 termination of contracts;

 loss of intellectual property
 rights;

 failure to obtain, maintain
 or renew certain licenses, approvals, permits, registrations or filings

 necessary to conduct our
 operations; and

 temporary or permanent
 debarment from sales to public service organizations.

 If
any governmental sanctions are imposed, or if we do not prevail in any possible civil or criminal litigation, our business, results of
operations, and financial condition could be adversely affected. In addition, responding to any action will likely result in a significant
diversion of our management's attention and resources and an increase in professional fees. Enforcement actions and sanctions could
materially harm our business, results of operations, and financial condition.

 We
are exposed to the risk of misconduct, errors and failure to functions by our management, employees and parties that we collaborate with,
who may from time to time be subject to litigation and regulatory investigations and proceedings or otherwise face potential liability
and penalties in relation to noncompliance with applicable laws and regulations, which could harm our reputation and business.

 Newly
enacted Holding Foreign Companies Accountable Act, recent regulatory actions taken by the SEC and the Public Company Accounting Oversight
Board, and proposed rule changes submitted by Nasdaq calling for additional and more stringent criteria to be applied to China-based
public companies could add uncertainties to our capital raising activities and compliance costs.

 U.S.
public companies that have substantially all of their operations in China have been the subject of intense scrutiny, criticism and negative
publicity by investors, financial commentators and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and negative
publicity has centered on financial and accounting irregularities and mistakes, a lack of effective internal controls over financial
accounting, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud.

 On
December 7, 2018, the SEC and the PCAOB issued a joint statement highlighting continued challenges faced by the U.S. regulators in their
oversight of financial statement audits of U.S.-listed companies with significant operations in China. On April 21, 2020, the SEC Chairman
and PCAOB Chairman, along with other senior SEC staff, released a joint statement highlighting the risks associated with investing in
companies based in or have substantial operations in emerging markets including China, reiterating past SEC and PCAOB statements on matters
including the difficulty associated with inspecting accounting firms and audit work papers in China and higher risks of fraud in emerging
markets and the difficulty of bringing and enforcing SEC, Department of Justice and other U.S. regulatory actions, including in instances
of fraud, in emerging markets generally.

 On
May 18, 2020, NASDAQ filed three proposals with the SEC to (i) apply minimum offering size requirement for companies primarily operating
in a "Restrictive Market", (ii) prohibit Restrictive Market companies from directly listing on NASDAQ Capital Market, and
only permit them to list on NASDAQ Global Select or NASDAQ Global Market in connection with a direct listing, and (iii) apply additional
and more stringent criteria to an applicant or listed company based on the qualifications of the company's auditors.

 On
May 20, 2020, the U.S. Senate passed the Holding Foreign Companies Accountable Act requiring a foreign company to certify it is not owned
or controlled by a foreign government if the PCAOB is unable to audit specified reports because the company uses a foreign auditor not
subject to PCAOB inspection. If the PCAOB is unable to inspect the company's auditors for three consecutive years, the issuer's
securities are prohibited to trade on a national exchange. On December 2, 2020, the U.S. House of Representatives passed the Holding
Foreign Companies Accountable Act. On December 18, 2020, the Holding Foreign Companies Accountable Act was signed into law.

 On
March 24, 2021, the SEC adopted interim final amendments to implement congressionally mandated submission and disclosure requirements
of the Act. The interim final amendments will apply to registrants that the SEC identifies as having filed an annual report on Forms
10-K, 20-F, 40-F or N-CSR with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction
and that the PCAOB has determined it is unable to inspect or investigate completely because of a position taken by an authority in that
jurisdiction. The SEC will implement a process for identifying such a registrant and any such identified registrant will be required
to submit documentation to the SEC establishing that it is not owned or controlled by a governmental entity in that foreign jurisdiction,
and will also require disclosure in the registrant's annual report regarding the audit arrangements of, and governmental influence
on, such a registrant.

 On
December 2, 2021, the SEC issued amendments to finalize rules implementing the submission and disclosure requirements in the Holding
Foreign Companies Accountable Act. The rules apply to registrants that the SEC identifies as having filed an annual report with an audit
report issued by a registered public accounting firm that is located in a foreign jurisdiction and that PCAOB is unable to inspect or
investigate completely because of a position taken by an authority in foreign jurisdictions.

 On
December 16, 2021, PCAOB announced the PCAOB Holding Foreign Companies Accountable Act determinations (the "PCAOB determinations")
relating to the PCAOB's inability to inspect or investigate completely registered public accounting firms headquartered in mainland
China of the PRC or Hong Kong, a Special Administrative Region and dependency of the PRC, because of a position taken by one or more
authorities in the PRC or Hong Kong.

 On
August 26, 2022, the PCAOB signed a SOP with the CSRC and the MOF of the PRC regarding cooperation in the oversight of PCAOB-registered
public accounting firms in the PRC and Hong Kong. The SOP seeks to establish a method for the PCAOB to conduct inspections of PCAOB-registered
public accounting firms in the PRC and Hong Kong. Under the agreement, (a) the PCAOB has sole discretion to select the firms, audit engagements
and potential violations it inspects and investigates without consultation with, or input from, PRC authorities; (b) procedures are in
place for PCAOB inspectors and investigators to view complete audit work papers with all information included and for the PCAOB to retain
information as needed; (c) the PCAOB has direct access to interview and take testimony from all personnel associated with the audits
the PCAOB inspects or investigates; and (d) the PCAOB shall have the unfettered ability to transfer information to the SEC in accordance
with the Sarbanes-Oxley Act, and the SEC can use the information for all regulatory purposes, including administrative or civil enforcement
actions. The PCAOB is required to reassess its determinations as to whether it is able to carry out inspections and investigations completely
and without obstruction by the end of 2022.

 On
December 15, 2022, the PCAOB determined that the PCAOB was able to secure complete access to inspect and investigate registered public
accounting firms headquartered in mainland China and Hong Kong and voted to vacate its previous determinations. However, should PRC authorities
obstruct or otherwise fail to facilitate the PCAOB's access in the future, the PCAOB will consider the need to issue a new determination.

 In
December 2022, Congress passed fiscal year 2023 Omnibus spending legislation, which contained provisions to accelerate the HFCAA timeline
for implementation of trading prohibitions from three years to two years. As a result of the legislation, the SEC is required to prohibit
an issuer's securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections or complete
investigations for two consecutive years.

 The
recent regulatory developments would add uncertainties to our offering and we cannot assure you whether Nasdaq or regulatory authorities
would apply additional and more stringent criteria to us after considering the effectiveness of our auditor's audit procedures
and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach or experience as it
relates to the audit of our financial statements. It remains unclear what further actions the SEC, the PCAOB or Nasdaq will take to address
these issues and what impact those actions will have on U.S. companies that have significant operations in the PRC and have securities
listed on a U.S. stock exchange (including a national security exchange or over-the-counter stock market). In addition, any additional
actions, proceedings, or new rules resulting from these efforts to increase U.S. regulatory access to audit information could create
some uncertainty for investors, the market price of our shares could be adversely affected, and we could be delisted if we and our auditor
are unable to meet the PCAOB inspection requirement or being required to engage a new audit firm, which would require significant expense
and management time.

 As
a result of these scrutiny, criticism and negative publicity, the publicly traded stock of many U.S. listed Chinese companies sharply
decreased in value and, in some cases, has become virtually worthless. Many of these companies are now subject to shareholder lawsuits
and SEC enforcement actions, and are conducting internal and external investigations into the allegations. It is not clear what effect
this sector-wide scrutiny, criticism and negative publicity will have on us, our future securities offerings, business and our share
price. If we become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we will have
to expend significant resources to investigate such allegations and defend our Company. Our management would have to divert valuable
resources and attention away from our operations and may negatively impact our operations. If such allegations are not proven to be groundless,
we and our business operations will be severely affected and you could sustain a significant decline in the value of our shares.

 Additional
factors outside of our control related to doing business in China could negatively affect our business.

 Additional
factors that could negatively affect our business include a potential significant revaluation of the Renminbi, which may result in an
increase in the cost of commodity or products in the PRC supply chain industry, labor shortages and increases in labor costs in China
as well as difficulties in moving products manufactured in China out of the country, whether due to infrastructure inadequacy, labor
disputes, slowdowns, PRC regulations and/or other factors. Prolonged disputes or slowdowns can negatively impact both the time and cost
of goods. Natural disasters or health pandemics impacting China can also have a significant negative impact on our business. Further,
the imposition of trade sanctions or other regulations against products supplied or sold in the supply chain industry transactions for
which we provide solutions or the loss of "normal trade relations" status with China could significantly affect our operating
results and harm our business.

 Payment
of dividends is subject to restrictions under Nevada and the PRC laws.

 Under
Nevada law, we may only pay dividends subject to our ability to service our debts as they become due and provided that our assets will
exceed our liabilities after the payment of such dividends. Our ability to pay dividends will therefore depend on our ability to generate
adequate profits. In addition, because of a variety of rules applicable to our operations in the PRC and the regulations on foreign investments
as well as the applicable tax law, we may be subject to further limitations on our ability to declare and pay dividends to our shareholders.

 As
a holding company, we may rely on dividends and other distributions from our PRC subsidiaries and WFOEs for cash requirements. If a WFOE
incurs any debts, the instruments governing such debts may restrict its ability to pay dividends to us. To the extent cash or assets
in the business is in the PRC or a PRC subsidiary, the cash or assets may not be available to fund operations or for other use outside
of the PRC due to interventions in or the imposition of restrictions and limitations on our or our subsidiaries' ability by the
PRC government to transfer cash or assets.

 Current
PRC regulations permit Chinese operating subsidiaries to pay dividends to foreign parent companies only out of their accumulated profits,
if any, determined in accordance with Chinese accounting standards and regulations. In addition, each of our subsidiaries in China is
required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches
50% of its registered capital. Each of our subsidiaries in China is also required to further set aside a portion of its after-tax profits
to fund the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors.
While the statutory reserves can be used, among other ways, to increase the registered capital and eliminate future losses in excess
of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation.

 Cash
dividends, if any, on our common stock will be paid in U.S. dollars. The PRC government also imposes restrictions on the conversion of
RMB into foreign currencies and the remittance of currencies out of the PRC. As such, we may experience difficulties in completing the
administrative procedures necessary to obtain and remit foreign currency for the payment of dividends from our profits, if any. Furthermore,
if our subsidiaries in the PRC incur any debts, the existence of debts evidenced by the debt instruments may significantly limit their
ability to pay dividends or make other payments. If we are unable to receive earnings distributions from our operating subsidiaries in
China, we would be unable to pay dividends on our shares.

 If
we are deemed by the PRC tax authorities as a PRC tax resident enterprise for tax purposes, any dividends we pay to our non-PRC resident
shareholders may be regarded as China-sourced income and as a result, may be subject to PRC withholding tax at a rate of up to 10.0%.
Pursuant to the Arrangement between Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation
and Tax Evasion on Income, or the Double Tax Avoidance Arrangement, the 10% withholding tax rate may be reduced to 5% if a Hong Kong
resident enterprise owns no less than 25% of a PRC entity. However, the 5% withholding tax rate does not automatically apply and certain
requirements must be satisfied, including, without limitation, that (a) the Hong Kong entity must be the beneficial owner of the relevant
dividends; and (b) the Hong Kong entity must directly hold no less than 25% share ownership in the PRC entity during the 12 consecutive
months preceding its receipt of the dividends. In practice, a Hong Kong entity must obtain a tax resident certificate from the Hong Kong
tax authority to apply for the 5% lower PRC withholding tax rate. As the Hong Kong tax authority will issue such a tax resident certificate
on a case-by-case basis, we cannot be certain that we will be able to obtain the tax resident certificate from the relevant Hong Kong
tax authority and enjoy the preferential withholding tax rate of 5% under the Double Taxation Arrangement with respect to any dividends
to be paid by our WFOE, QHDX, to our Hong Kong subsidiary, DILHK. QHDX currently does not have any plan to declare and pay dividends,
and we have not applied for the tax resident certificate from the relevant Hong Kong tax authority. DILHK will apply for the tax resident
certificate when QHDX plans to declare and pay dividends.

 As
of the date of this report, we have not paid, and do not anticipate paying in the foreseeable future, dividends or other distributions
to our shareholders. There have not been any dividends or other distributions from QHDX to DILHK. None of our PRC subsidiaries have ever
paid any dividends or distributions outside of China. We presently intend to retain all earnings to fund our operations and business
expansions.

 We
can give no assurance that we will declare dividends of any amounts, at any rate or at all in the future. The declaration of future dividends,
if any, will be at the discretion of our board of directors and will depend upon our future operations and earnings, capital requirements,
general financial conditions, legal and contractual restrictions and other factors that our board of directors may deem relevant.

 You
may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing original actions in China
against us or Hong Kong or other foreign laws.

 On
July 14, 2006, Hong Kong and the PRC entered into the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and
Commercial Matters by the Courts of the PRC and of the Hong Kong Special Administrative Region Pursuant to Choice of Court Agreements
Between Parties Concerned, or the 2006 Arrangement, pursuant to which a party with a final court judgment rendered by a Hong Kong court
requiring payment of money in a civil and commercial case pursuant to a choice of court agreement in writing may apply for recognition
and enforcement of the judgment in the PRC. Similarly, a party with a final judgment rendered by a PRC court requiring payment of money
in a civil and commercial case pursuant to a choice of court agreement in writing may apply for recognition and enforcement of the judgment
in Hong Kong. A choice of court agreement in writing is defined as any agreement in writing entered into between parties after the effective
date of the 2006 Arrangement in which a Hong Kong court or a PRC court is expressly designated as the court having sole jurisdiction
for the dispute. Therefore, it is not possible to enforce a judgment rendered by a Hong Kong court in the PRC if the parties in dispute
have not agreed to enter into a choice of court agreement in writing. The 2006 Arrangement became effective on August 1, 2008.

 Subsequently
on January 18, 2019, Hong Kong and the PRC entered into the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil
and Commercial Matters between the Courts of the Mainland and of the Hong Kong Special Administrative Region, or the Arrangement, pursuant
to which, among other things, the scope of application was widened to cover both monetary and non-monetary judgments in most civil and
commercial matters, including effective judgments on civil compensation in criminal cases. In addition, the requirement of a choice of
court agreement in writing has been removed. It is no longer necessary for parties to agree to enter into a choice of court agreement
in writing, as long as it can be shown that there is a connection between the dispute and the requesting place, such as place of the
defendant's residence, place of the defendant's business or place of performance of the contract or tort. The 2019 Arrangement
shall apply to judgments in civil and commercial matters made on or after its effective date by the courts of both sides. The 2006 Arrangement
shall be terminated on the same day when the 2019 Arrangement comes into effect. If a "written choice of court agreement"
has been signed by parties according to the 2006 Arrangement prior to the effective date of the 2019 Arrangement, the 2006 Arrangement
shall still apply.

 The
2019 Arrangement will be implemented by local legislation in Hong Kong. The Legislative Council in Hong Kong has passed the Mainland
Judgments in Civil and Commercial Matters (Reciprocal Enforcement) Ordinance on 26 October 2022. The Chief Judge of the Hong Kong High
Court will make rules to provide for the relevant practice and procedures. In the PRC, the Supreme People's Court will promulgate
a judicial interpretation to implement the 2019 Arrangement. When the rules and the judicial interpretation have been prepared, the Department
of Justice in Hong Kong will liaise with the PRC as to the date on which the 2019 Arrangement will take effect in both places simultaneously.
The 2019 Arrangement will apply to judgments made on or after the commencement date of the 2019 Arrangement. Therefore, there are still
uncertainties about the outcomes and effectiveness of enforcement or recognition of judgments under the 2019 Arrangement.

 Risks
Related to Business Operations in Hong Kong

 Political
risks associated with conducting business in Hong Kong.

 We
have two holding subsidiaries incorporated in Hong Kong, including DILHK and JJHK. Neither DILHK nor JJHK is currently engaged in any
business operations in Hong Kong, and their only activities are limited to certain administrative functions and holding the equity interests
in their respective PRC subsidiaries. Additionally, none of our customers purchasing our products via our Fugu Online platform or through
our online stores at third party e-commerce websites is a Hong Kong resident individual or enterprise, nor have we generated revenue
from the Hong Kong source. If however in the future our Hong Kong subsidiaries conduct business operations or our customer base expands
into Hong Kong, our business operations and financial condition could be affected by the political and legal developments in Hong Kong.
Any changes in the economic, social and/or political conditions, material social unrest, strike, riot, civil disturbance or disobedience,
as well as significant natural disasters, may affect the market and the business operations of our Hong Kong subsidiaries if in the future
our Hong Kong subsidiaries conduct operations. Hong Kong is a special administrative region of the PRC and the basic policies of the
PRC regarding Hong Kong are reflected in the Basic Law, namely, Hong Kong's constitutional document, which provides Hong Kong with
a high degree of autonomy and executive, legislative and independent judicial powers, including that of final adjudication under the
principle of "one country, two systems." Nevertheless, we cannot ensure that there will not be any changes in the economic,
political and legal environment in Hong Kong in the future.

 Under
the Basic Law, Hong Kong is exclusively in charge of its internal affairs and external relations, while the government of the PRC is
responsible for its foreign affairs and defense. As a separate customs territory, Hong Kong maintains and develops relations with foreign
states and regions. Based on certain recent development including the Law of the People's Republic of China on Safeguarding National
Security in the Hong Kong Special Administrative Region issued by the Standing Committee of the National People's Congress of the
PRC ("NPC") in June 2020, the U.S. State Department has indicated that the United States no longer considers Hong Kong to
have significant autonomy from China and President Trump signed an executive order and Hong Kong Autonomy Act, or HKAA, to remove Hong
Kong's preferential trade status and to authorize the U.S. administration to impose sanctions against foreign individuals and entities
who are determined by the U.S. administration to have materially contributed to the failure to preserve Hong Kong's autonomy. The
United States may impose the same tariffs and other trade restrictions on exports from Hong Kong that it places on goods from mainland
China. These and other recent actions may represent an escalation in political and trade tensions involving the U.S., China and Hong
Kong, which could potentially harm our business if our operations expand into Hong Kong in the future. Given the relatively small geographical
size of Hong Kong, any of such incidents could have a material effect on the future operations if we expand our business operations into
Hong Kong, which could in turn materially affect our business, results of operations and financial condition. It is difficult to predict
the full impact of the HKAA on Hong Kong and companies with operations in Hong Kong. Furthermore, legislative or administrative actions
in respect of China-U.S. relations could cause investor uncertainty for affected issuers, including us, if in the future we conduct our
business in Hong Kong and the market price of our common stock could be affected.

 You
may incur additional costs and procedural obstacles in effecting service of legal process, enforcing foreign judgments or bringing actions
in Hong Kong against us or our directors or officers based on Hong Kong laws.

 If
you want to enforce a judgment of the United States in Hong Kong, it must be a final judgment conclusive upon the merits of the claim,
for a definite sum of money in a civil matter and not in respect of taxes, fines, penalties, or similar charges, the proceedings in which
the judgment was obtained were not contrary to natural justice, and the enforcement of the judgment is not contrary to public policy
of Hong Kong. Such a judgment must be for a fixed sum and must also come from a competent court.

 The
effect of HKAA and other U.S. government policies in response to the enactment of Law of the PRC on Safeguarding National Security in
the Hong Kong Special Administrative Region (the "Hong Kong National Security Law") could impact our Hong Kong holding subsidiaries.

 On
June 30, 2020, the Standing Committee of the PRC NPC adopted the Hong Kong National Security Law. This law defines the duties and government
bodies of the Hong Kong National Security Law for safeguarding national security and four categories of offences — secession, subversion,
terrorist activities, and collusion with a foreign country or external elements to endanger national security — and their corresponding
penalties. On July 14, 2020, the former U.S. President Donald Trump signed the HKAA into law, authorizing the U.S. administration to
impose sanctions against foreign individuals and entities who are determined by the U.S. administration to have materially contributed
to the failure to preserve Hong Kong's autonomy. On August 7, 2020 the U.S. government imposed HKAA-authorized sanctions on eleven
individuals, including Hong Kong's then chief executive, Carrie Lam. On October 14, 2020, the U.S. State Department submitted to
relevant committees of Congress the report required under HKAA, identifying persons materially contributing to "the failure of
the Government of China to meet its obligations under the Joint Declaration or the Basic Law." The HKAA further authorizes secondary
sanctions, including the imposition of blocking sanctions, against foreign financial institutions that knowingly conduct a significant
transaction with foreign persons sanctioned under this authority. The imposition of sanctions may directly affect the foreign financial
institutions as well as any third parties or customers dealing with any foreign financial institution that is targeted. It is difficult
to predict the full impact of the HKAA on Hong Kong and companies located in Hong Kong. If our Hong Kong subsidiaries conduct business
operations in the future and were determined to be in violation of the Hong Kong National Security Law or the HKAA for some reasons,
however unlikely, our business operations, financial position and results of operations could be materially and adversely affected.

 The
Hong Kong legal system embodies uncertainties which could limit the availability of legal protections.

 Hong
Kong is a Special Administrative Region of the PRC. Following British colonial rule from 1842 to 1997, China assumed sovereignty under
the "one country, two systems" principle. The Hong Kong Special Administrative Region's constitutional document, the
Basic Law, ensures that the current political situation will remain in effect for 50 years. Hong Kong has enjoyed the freedom to function
with a high degree of autonomy for its affairs, including currencies, immigration and customs operations, and its independent judiciary
system and parliamentary system. On July 14, 2020, the United States signed an executive order to end the special status enjoyed by Hong
Kong post-1997. Any compromise on the autonomy of Hong Kong could have an adverse effect in our business and operations in Hong Kong
if and when we expand our business or customer base in Hong Kong in the future. We cannot predict the effect of future developments in
the Hong Kong legal system, including the promulgation of new laws, changes to existing laws or the interpretation or enforcement thereof.

 Risks
Related to our Common Stock

 Our
common stock may not develop an active trading market and the price and trading volume of our shares may fluctuate significantly.

 Shares
of common stock are currently quoted on the OTC marketplace and, following this offering, will be listed on the NASDAQ Capital Market.
We cannot predict whether investor interest in us will lead to the development of an active and liquid trading market. In addition, no
assurances can be given regarding when, and if, we will be able to list on a national exchange, including whether or not we will be able
to meet applicable listing standards for any such exchange. If an active trading market does not develop, holders of our shares of common
stock may have difficulty selling our shares that may now be owned or may be purchased later. In addition, until we are able to be listed
on a national exchange, the number of investors willing to hold or acquire our shares may be reduced, we may receive decreased news and
analyst coverage, and we may be limited in our ability to issue additional securities or obtain additional financing in the future on
terms acceptable to us, or at all. Even if an active trading market develops for our shares, the market price of our shares may be highly
volatile and could be subject to wide fluctuations. In addition, the trading volume of our shares may fluctuate and cause significant
price variations to occur.

 In
case that our shares trade under $5.00 per share they will be considered penny stock. Trading in penny stocks has many restrictions and
these restrictions could severely affect the price and liquidity of our common stock.

 If
our stock trades below $5.00 per share, our stock would be known as a "penny stock", which is subject to various regulations
involving disclosures to be given to you prior to the purchase of any penny stock. The U.S. Securities and Exchange Commission (the "SEC")
has adopted regulations which generally define a "penny stock" to be any equity security that has a market price of less
than $5.00 per share, subject to certain exceptions. Depending on market fluctuations, our Common Stock would be considered as a "penny
stock". A penny stock is subject to rules that impose additional sales practice requirements on broker/dealers who sell these securities
to persons other than established Members and accredited investors. For transactions covered by these rules, the broker/dealer must make
a special suitability determination for the purchase of these securities. In addition, he must receive the purchaser's written
consent to the transaction prior to the purchase. He must also provide certain written disclosures to the purchaser. Consequently, the
"penny stock" rules may restrict the ability of broker/dealers to sell our securities and may negatively affect the ability
of holders of shares of our Common Stock to resell them. These disclosures require you to acknowledge that you understand the risks associated
with buying penny stocks and that you can absorb the loss of your entire investment. Penny stocks are low priced securities that do not
have a very high trading volume. Consequently, the price of the stocks is often volatile, and you may not be able to buy or sell the
stock when you want to.

 We
do not anticipate paying cash dividends on our Common Stock in the foreseeable future.

 We
do not anticipate paying cash dividends in the foreseeable future. Presently, we intend to retain all our earnings, if any, to finance
development and expansion of our business. Consequently, your only opportunity to achieve a positive return on your investment in us
will be if the market price of our Common Stock appreciates.

 Our
Chief Executive Officer, Mr. Yumin Lin, and our former Director, Mr. Minghua Cheng, collectively own a majority of our outstanding shares
of common stock and could significantly influence the outcome of our corporate matters.

 Mr.
Yumin Lin, our CEO, beneficially owns 41.53% of our outstanding shares of Common Stock, and Mr. Minghua Cheng, our former Director, beneficially
owns 44.4% of our outstanding shares of Common Stock. As a result, Messrs. Yumin Lin and Minghua Cheng are collectively able to exercise
significant influence over all matters that require us to obtain shareholder approval, including the election of directors to our board
and approval of significant corporate transactions that we may consider, such as a merger or other sale of our company or its assets.
This concentration of ownership in our shares by executive officers will limit other shareholders' ability to influence corporate
matters and may have the effect of delaying or preventing a third party from acquiring control over us.

 The
price of our common stock may be volatile or may decline regardless of our operating performance, and stockholders may not be able to
resell their shares.

 The
trading price for our common stock has fluctuated since our common stock was first quoted on the OTC marketplace. The market price of
our stock may fluctuate significantly in response to numerous factors, many of which are beyond our control, including:

 actual or anticipated fluctuations
 in our revenue and other operating results;

 the financial projections
 we may provide to the public, any changes in these projections or our failure to meet these projections;

 actions of securities analysts
 who initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our company, or our
 failure to meet these estimates or the expectations of investors;

 announcements by us or
 our competitors of significant products, acquisitions, strategic partnerships, joint ventures, or capital commitments;

 price and volume fluctuations
 in the overall stock market, including as a result of trends in the economy as a whole;

 lawsuits threatened or
 filed against us; and

 other events or factors,
 including those resulting from health pandemics, war or incidents of terrorism, or responses to these events.

 In
addition, the stock markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market
prices of securities of many companies. Stock prices of many companies have fluctuated in a manner unrelated or disproportionate to the
operating performance of those companies.

 Future
sales of substantial amounts of the shares of our Common Stock by existing shareholders could adversely affect the price of our Common
Stock.

 If
our existing shareholders sell substantial amounts of the shares, then the market price of our Common Stock could fall. Such sales by
our existing shareholders might make it more difficult for us to issue new equity or equity-related securities in the future at a time
and place we deem appropriate. If any existing shareholders sell substantial amounts of shares, the prevailing market price for our shares
could be adversely affected.

 Item
1B. Unresolved Staff Comments

 Not
applicable.

 Item
1C. Cybersecurity

 Risk
Management and Strategy

 The
goal of our cybersecurity risk management strategy is to protect the privacy, integrity and availability of our systems, information
and data. Our subsidiaries are required to comply with rapidly evolving and complex PRC laws and regulations with respect to cybersecurity,
data security and personal information protection. In response to the recent changes in the regulatory requirements, we have designed
a data and information protection mechanism as part of our risk management process and efforts. The measures include the following main
components: (i) enhancing data security technical measures by the introduction of an extended verification (EV) SSL certificate at the
user information security technology implementation level, offering strong encryption technology and extended verification function,
and providing security guarantee for online transactions; (ii) improving the technical level protection and the monitoring mechanism
for data use, and for the data modules related to user information in the e-commerce platform system, using MD5 irreversible encryption
for storage and display of information security sensitive fields; (iii) developing a complete personal information operating process
and system and designating personnel for information security; (iv) developing a user information collection, storage and user rules
and privacy agreement, following the "inform + express consent" model, informing users of the purpose, method and scope of
information collection and use, as well as the channels for inquiring and correcting inaccuracies in information and data; (v) conducting
assessments on technology, operational risks and system common issues, and data security governance; (vi) engaging a data security service
organization to conduct an annual data security assessment and providing disclosure and updates to all stakeholders; (vii) establishing
an emergency plan for personal information security incidents, which includes an emergency response mechanism for security incidents,
incident impact assessment and mitigation measures, and emergency response training and drills; (viii) providing periodic training to
employees; and (ix) promoting consumer data protection awareness. We
have implemented and are in the process of implementing these measures.

 Governance

 The Company's board of directors
has oversight responsibility for the Company's overall risk management, including cybersecurity risks, and has not delegated oversight
authority for cybersecurity risks to any committee. Our management, led by our Chief Executive Officer and Chief Financial Officer, is
responsible for assessing cybersecurity risks and supervising relevant personnel with respect to our efforts and measures with the aim
we have an appropriate cybersecurity strategy to assess and manage those risks, including responding to attacks or breaches. Our Chief
Executive Officer and Chief Financial Officer meet periodically with the individuals charged with the day-to-day operations supervisory
responsibilities including IT operations and infrastructure regarding cybersecurity to review and assess potential issues and any changes
needed to be made related to our information technology system and cybersecurity measures. Cybersecurity awareness trainings are provided
for all employees.

 In
fiscal year 2023, we did not identify
any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results
of operations, or financial condition. However, we face potential cybersecurity threats that, if realized, would materially affect us.
These threats include but are not limited to ransomware and malware attacks, and compromised business email and other social engineering
threats. Our suppliers, customers, contractors and business partners also face similar cybersecurity risks, which could have an adverse
impact on our business. Additional information on cybersecurity risks we face is discussed in Part I, Item 1A, "Risk Factors -
While we are not aware of any data breach in the past, future cyberattacks, computer viruses
or any failure to adequately maintain security and prevent unauthorized access to our information technology system or data could result
in a disruption of our business operations and materially adversely affect our reputation, financial condition and operating results."

 Item
2. Properties

 Our
principal executive offices are located at 16th Floor, Building 2, A+Building, 139 Liansheng Road, Humen Town, Dongguan
City, Guangdong Province,
China 523900, with an aggregate leased space of 599 square meters. The current lease expires on May 6, 2026. The current monthly rental
is RMB28,932 (approximately $4,484).

 Our
wine and liquor product operations are based in Humen Town, Dongguan City. We have three retail stores for wine and liquor products.
France Vin Tout leases a six-floor building with a total floor area of 1,200 square meters. The wine retail store is located on the first
floor which we use exclusively as a retail store and for sample products display. We use the remaining five floors as the Company's
offices, conference room, and inventory storage spaces. Fu La Tu and Fu Xin Gu each has a lease space for a retail store.

 Our
management offices for water and other products are also located in Humen Town, Dongguan City. We lease a building which has over 1,300
square meters for use as Xixingdao's office. In addition to offices for Xixingdao's sales, customer service, warehouse, delivery
and finance departments, the building also houses seven wholesales stores and a warehouse.

 As
of December 31, 2023, the Company had a total of twenty-one operating lease agreements for three office spaces, one warehouse and seventeen
retail stores in the PRC with remaining lease terms ranging from 6 months to 40 months.

 Item
3. Legal Proceedings

 We
may from time to time be subject to legal and administrative proceedings and claims that arise in the ordinary course of business. We
are not currently involved in any legal proceedings and we are not aware of any pending or threatened material legal or administrative
proceedings against us. We do not believe that any claims exist where the outcome of such matters would have a material adverse effect
on our con assurance such legal proceedings will not have a material impact on future results.

 Item
4. Mine Safety Disclosures

 Not
applicable.

 PART
II

 Item
5. Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 Market
Information

 There
is a limited public market for our common stock. Prior to trading on the OTC Pink Market quotation system under the symbol "FVTI,"
our common stock had traded on the OTCQB marketplace ("OTCQB") under the symbol "FVTI."

 OTC
Pink Market securities are not listed or traded on the floor of an organized national or regional stock exchange. Instead, OTC Pink Market
securities transactions are conducted through a telephone and computer network connecting dealers in stocks. OTC Pink Market issuers
are traditionally smaller companies that do not meet the financial and other listing requirements of a regional or national stock exchange.

 Stockholders
of Record

 As
of April 15, 2024, there were 406 stockholders of record of our issued and outstanding shares of common stock.

 Dividends

 We
have never declared or paid any cash dividends on our common stock. We anticipate that we will retain any earnings to support operations
and to finance the growth and development of our business. Therefore, we do not expect to pay cash dividends in the foreseeable future.
Any future determination relating to our dividend policy will be made at the discretion of our board of directors and will depend on
a number of factors, including future earnings, capital requirements, financial conditions and future prospects and other factors the
board of directors may deem relevant.

 We
are a holding company incorporated in the State of Nevada. We may rely on dividends from our subsidiaries in China for our cash requirements,
including any payment of dividends to our shareholders. PRC regulations may restrict the ability of our PRC subsidiaries to pay dividends
to us. Our subsidiaries in China are required to set aside at least 10% of after-tax profits each year, if any, to fund statutory reserve
funds until the accumulative amount of such statutory reserve funds reaches 50% of its registered capital. Upon contribution to the statutory
reserve funds using its post-tax profits, a PRC company may also make further contribution to the discretionary reserve funds using its
post-tax profits in accordance with a resolution of the shareholders meeting. Where the shareholders or the board of directors of a PRC
company violates the provisions of the preceding paragraphs to distribute profits to the shareholders before making up for the losses
and contributing to the statutory reserve funds, the shareholders are required to return such distributed profits to the company.

 Securities
Authorized for Issuance under Equity Compensation Plans

 We
have not adopted or approved an equity compensation plan. No options, warrants or other convertible securities have been granted outside
of an approved equity compensation plan.

 Transfer
Agent and Registrar

 The
transfer agent and registrar for our common stock is TranShare Corporation, with an address at Bayside Center 1, 17755 North US Highway
19 Suite 140, Clearwater, FL 33764, telephone number is (303) 662-1112.

Sales of Unregistered Securities

 None.

 Purchase
of Equity Securities by the Issuer and Affiliated Purchasers

 None.

 Item
6. [Reserved]

 Item
7. Management's Discussion and Analysis of Financial Condition and Results of Operations

 The
following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in
this Annual Report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual
results could differ materially from those discussed in the forward- looking statements. Factors that could cause or contribute to such
differences include, but are not limited to those discussed below and elsewhere in this Report. Our audited financial statements are
stated in U.S. Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.

 Company
Overview

Valley Treasures, Inc. (the "Company" or "FVTI"), was incorporated in the State of Nevada on March 21, 2014.
We engage in the food supply chain through a service platform. Through various acquisitions of high-quality upstream and downstream companies
in the industry, the Company creates a complete industrial chain to reduce costs and enhance competitiveness. The company mainly focuses
on online and offline sales targeting regional wholesalers, retailers, supermarkets and major food and beverage ("F&B")
chains.

the year 2023, the Company conducted its business in generally one revenue stream: product sales – wine, water, water purifier
and other F&B products, with majority of the sales transactions were conducted offline.

 Results
of Operations

 Years ended December 31,

 2023

 2022

 Change

 Net revenues

 $
 4,236,565

 $
 9,234,079

 $
 (4,997,514
)

 Cost of revenues

 (2,255,306
)

 (4,593,405
)

 (2,338,099
)

 Gross profit

 1,981,259

 4,640,674

 (2,659,415
)

 Operating expense

 (6,137,486
)

 (6,590,240
)

 (452,754
)

 Other income

 19,862

 10,811

 9,051

 Other expense

 (38,389
)

 (31,444
)

 (6,945
)

 Income taxes

 (96,445
)

 (186,480
)

 (90,035
)

 (4,271,199
)

 (2,156,679
)

 (2,114,520
)

 Net loss attributable to noncontrolling interests

 (224,584
)

 (213,956
)

 (10,628
)

 Net loss attributable to Fortune Valley Treasures, Inc.

 $
 (4,046,615
)

 $
 (1,942,723
)

 $
 (2,103,892
)

 Net
Revenues

 Net
revenues totaled $4,236,565 and $9,234,079 for the years ended December 31, 2023 and 2022, respectively, reflecting a decrease of
$4,997,514, or 54 %. The decrease in product sales was primarily due to a decline in market demand resulting from the sluggish economic environment
and slow recovery in China's economy as compared to the same period of the prior year. And in order to attract new customers, the
Company has lowered the unit sales prices of wine products since April 2023, which has also contributed to the decline in the net revenue.

 Cost
of Revenues

 Cost
of revenues totaled $2,255,306 and $4,593,405 for the years ended December 31, 2023 and 2022, respectively, representing a decrease
of $2,338,099, or 51%. The decrease in the cost of revenues was due to the lower product sales volume in line with our revenue
decrease.

 Gross
Profit

 Gross
profit was $1,981,259 and $4,640,674 for the years ended December 31, 2023 and 2022, respectively. Gross profit margin decreased to 47%
for the year ended December 31, 2023 from 50% for the corresponding period in 2022 primarily due to the decrease in the net revenues.

 Operating
Expenses

 General
and administrative expenses totaled $6,137,486 and $6,590,240 for the years ended December 31, 2023 and 2022, respectively, representing
a decrease of $452,574, or 7%. The decrease in operating expenses was mainly due to the decrease in professional service fees, and impairment loss on goodwill.

 Net
Loss

 Net
loss totaled $4,271,199 and $2,156,679 for the years ended December 31, 2023 and 2022, respectively, representing an increase in net
loss of $2,114,520, of 98%. The increase in net loss was a result of the factors described above.

 Liquidity
and Capital Resources

 Working
Capital

 Years Ended December 31,

 2023

 2022

 Change

 Total current assets

 $
 5,083,189

 $
 6,871,091

 $
 (1,787,902
)

 Total current liabilities

 3,851,925

 2,484,582

 1,367,343

 Working capital

 $
 1,231,264

 $
 4,386,509

 $
 (3,155,245
)

 As
of December 31, 2023, we had working capital of $1,231,264 as compared to working capital of $4,386,509 as of December 31, 2022. We
had total current assets of $5,083,189 consisting of cash on hand of $288,255, accounts receivables of $3,118,892, inventory of
$32,587, and prepayments and other current assets of $1,643,455, compared to total current assets of $6,871,091 as of December 31,
2022. The decrease was mainly due to the decrease in accounts receivable, and prepayments and other current assets. We had current
liabilities of $3,851,925 consisting of operating lease obligations of $136,619, accounts payable of $583,887, accrued liabilities
of $627,457, current portion of bank and other borrowings of $458,023, income tax payable of $1,453, customer advance of $1,364,260
and amount due to related parties of $680,226 compared to total current liabilities of $2,484,582 as of December 31,
2022.

 The
Company's net losses were $4,271,199 and $2,156,679, respectively, for the years ended December 31, 2023 and 2022.

 Cash
Flows

 Years Ended December 31,

 2023

 2022

 Change

 Cash flows provided by (used in) operating activities

 $
 (179,210
)

 $
 6,927

 $
 (186,137
)

 Cash flows provided by (used in) investing activities

 (4,879
)

 (10,110
)

 5,231

 Cash flows provided by financing activities

 236,605

 66,120

 170,485

 Effect of exchange rate changes on cash and cash equivalents

 70,054

 (20,415
)

 90,469

 Net changes in cash and cash equivalents

 $
 122,570

 $
 42,522

 $
 80,048

 Cash
Flow from Operating Activities

 Cash flow used in operating activities for the year ended December 31, 2023 was $179,210, as compared to the amount of $6,927 provided
by operating activities for the year ended December 31, 2022, reflecting a decrease of $186,137. Such decrease was mainly due to less
net revenue we generated during the year of 2023 than 2022.

 Cash
Flow from Investing Activities

 Cash
flow used in investing activities was $4,879 for the year ended December 31, 2023, compared to the cash flow used in investing activities
$10,110 for the year ended December 31, 2022. The decrease in net cash flow used in investing activities was mainly due to the less cash
used in purchase of fixed assets and intangible assets in the year of 2023 than 2022.

 Cash
Flow from Financing Activities

 Cash
flow provided by financing activities was $236,605 for the year ended December 31, 2023, compared to cash flow provided by financing
activities of $66,120 for the year ended December 31, 2022. The increase in net cash provided by financing activities was mainly due
to the increase in net proceeds of bank and other borrowings.

 Capital
requirement for short term and long term

 As
of December 31, 2023, the Company financed capital requirement through trust and commercial banks in PRC for further expansion, details
are as follows:

 Loan from a trust in PRC

 $
 20,343

 $
 60,049

 China Construction Bank

 475,121

 276,447

 WeBank

 129,396

 77,220

 Guangdong Nanyue Bank

 24,164

 67,375

 Bank of Ningbo

 21,041

 -

 Aggregate outstanding principal balances

 $
 670,065

 $
 481,091

 Less: current portion

 458,023

 422,653

 Total non-current borrowings

 $
 212,042

 $
 58,438

 Other
Material Cash requirement

 In
addition to the financing arrangements discussed above, FVTI is a party to numerous contracts and arrangements obligating it to make
cash payments in future years. FVTI expects current liabilities to be paid within the next twelve months. In addition to the items
already discussed, the following represents material expected cash requirements recorded on FVTI's Consolidated Balance Sheets
at December 31, 2023. Such obligations include:

 Operating
lease obligation – See Note 10 to the Consolidated Financial Statement.

 Trends,
commitment and uncertainties that likely to result in material changes in liquidity

 Except
the issues mentioned above, FVTI has no other uncertainties that likely to result in material changes in liquidity based on management's
understanding and knowledge.

 Critical
Accounting Policies and Estimates

 Our
accounting policies are discussed in detail in the footnotes to our financial statements included in this Annual Report on Form 10-K
for the year ended December 31, 2023. However, we consider our critical accounting policies to be those related to revenue recognition,
allowance of doubtful accounts and impairment of intangible asset and goodwill.

 Our
critical estimates include estimates used to review the Company's goodwill impairments and estimations of recoverability for intangible
asset, and bad debt expense incurred for allowance reserved for doubtful accounts,
including prepayments and deposits paid. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable in
the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that
are not readily apparent from other sources.

 Item
7A. Quantitative and Qualitative Disclosures about Market Risk

 As
a smaller reporting company, we are not required to provide the information required by this item.

 Item
8. Financial Statements and Supplementary Data

 The
consolidated financial statements of the Company are included in this Annual Report on Form 10-K beginning on page F-1, which are incorporated
herein by reference.

 Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 The disclosure with respect to the change in our independent accountants required under this section was previously
reported as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended, on a Current Report on Form 8-K
filed with the Securities and Exchange Commission on February 8, 2024. As previously reported, there were no disagreements or any reportable
events to disclose.

 Item
9A. Controls and Procedures

 Evaluation
of Disclosure Control and Procedures

 We
conducted an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and
Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. The term "disclosure
controls and procedures", as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended
("Exchange Act"), means controls and other procedures of a company that are designed to ensure that information required
to be disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported,
within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures
also include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in
the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including
its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions
regarding required disclosure. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded as of December
31, 2023, that our disclosure controls and procedures were not effective.

 The
matters involving internal controls and procedures that our management considered to be material weakness under the standards of the
Public Company Accounting Oversight Board was lack of well-established procedures to identify, approve and review related party transactions.

 Management's
Report on Internal Control over Financial Reporting

 Our
management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over
financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the
supervision of, the Company's principal executive and principal financial officers and effected by the board of directors (the
"Board"), management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the
United States ("GAAP") and includes those policies and procedures that:

 Apply to the maintenance
 of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company

 Provide reasonable assurance
 that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and that receipts
 and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
 and

 Provide reasonable assurance
 regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could
 have a material effect on the financial statements.

 Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed,
have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect
to financial statement preparation and presentation. Because of the inherent limitations of internal control, there is a risk that material
misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent
limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to
reduce, though not eliminate, this risk.

 We
carried out an assessment, under the supervision and with the participation of our management, including our Chief Executive Officer
and Chief Financial Officer, of the effectiveness of our internal controls over financial reporting, as defined in Rules 13a-15(e) and
15d-15(e) of the Exchange Act, as of December 31, 2023. Management based the assessment on criteria for effective internal control over
financial reporting described in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (2013 framework). Management's assessment included an evaluation of the design of our internal control over financial
reporting and testing of the operational effectiveness of its internal control over financial reporting. Based on this assessment, management
has concluded that as of December 31, 2023, our internal control over financial reporting is not effective enough to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with U.S. generally accepted accounting principles. In an effort to remediate the identified material weaknesses and other deficiencies
and enhance our internal controls, we have initiated, or plan to initiate, the following series of measures or actions:

 We have increased our personnel
 resources and technical accounting expert within the accounting function and intend to hire additional accounting expert for the
 function due to continuously increasing of turnover.

 This
Annual Report does not include an attestation report of the Company's registered public accounting firm regarding internal control
over financial reporting. The Management's report was not subject to attestation by the Company's registered public accounting
firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management's report in
this Annual Report.

 Changes
in Internal Control over Financial Reporting

 There
was no change in our internal controls over financial reporting that occurred during the year ended December 31, 2023, which has materially
affected or is reasonably likely to materially affect, our internal controls over financial reporting.

 Item
9B. Other Information

 None.

 Item
9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

 Not
applicable.

 PART
III

 Item
10. Directors, Executive Officers and Corporate Governance

 The
following table sets forth information regarding our executive officers and directors as of the date of this Annual Report.

 Name

 Age

 Position
 with the Company

 Yumin Lin

 Chairman of the Board,
 Chief Executive Officer, President and Secretary

 Kaihong Lin

 Chief Financial Officer,
 Treasurer and Director

 Jianwei
 Lin (1)(2)(3)

 Independent Director

 Bin Li (2)(3)

 Independent Director

 Anthony
 S. Chan (1)(2)

 Independent director

 Chaoping Chen (3)

 Independent Director

 (1)

 Member of the Audit Committee.

 (2)

 Member of the Compensation
 Committee.

 (3)

 Member of the Nominating
 and Corporate Governance Committee.

 Yumin
Lin has serves as the Chairman of the Board, Chief Executive Officer, President and a director of the Company since December 2016.
Mr. Lin has over 30 years of experience in business management. He has also been serving as chairman to FVTL since May 2011, the executive
director of DILHK since June 2016, the executive director or QHDX since November 2016, the executive director of Shenzhen Xinghuashang
Industrial Group Co., Ltd., a consulting company in China, since December 2019 and the director of Huashang Industrial Group Co., Ltd.,
a business consulting company in China, since October 2019. From April 1999 to May 2011, he was the general manager of Dongguan Saite
Building Material Co., Ltd., a building material supplier in China.

 Kaihong
Lin has served as the Chief Financial Officer, Treasurer and Director of the Company since December 2019. In addition, he has been
the head of the finance department of QHDX since March 2019. Prior to that, he was the head of the finance department of Guangdong Minche
New Energy Automobile Co., Ltd., a new energy automobile company, from June 2018 to March 2019. He served as financial director in Guangdong
Duncheng Environmental Protection Technology Co., Ltd., an environmental engineering company in China, from June 2017 to May 2018. From
October 2015 to May 2017, Mr. Lin was the head of the finance department and a member of the board of Guangzhou Jingcheng Inspection
Technology Co., Ltd., a company specialized in testing and assessment across various industries, including environment, construction,
electronics, food safety and so on. From January 1997 to October 2015, he was the head of the finance department of Guangdong Provincial
Expressway Development Co., Ltd. (SHE: 000429), a construction and maintenance company for highways and bridges. Mr. Lin received a bachelor's
degree in human resources from Peking University, a bachelor's degree in accounting from Jinan University, and a master's
degree in software engineering with a concentration in financial informatics from Tianjin University.

 Jianwei
Lin was appointed director on April 9, 2021. Mr. Lin is a member of the Australia Financial Complaint Authority (AFCA) and the Financial
Broker Association of Australia (FBAA). Mr. Lin has over 10 years of experience in finance, accounting, marketing and management. He
started his career at Investnet Australia Pty Ltd, a leading building material suppliers in Australia, first as a Marketing Manager and
was then later as Vice General Manager. Mr. Lin established his own financial mortgage business in 2016 that provides financing consulting
services for businesses and individuals. Mr. Lin graduated from Swinburne University of Technology, Australia, with a Bachelor of Business
and a Master of Accounting degrees.

 Bin
Li was appointed director on April 9, 2021. Dr. Li is a director and the General Manager of Shenzhen Xiejin Education Technology
Co., Ltd. where he is responsible for all aspects of the company's corporate strategic planning and management and has held that
position since October 2018. Previously Dr. Li served as the president of Shenzhen Qianhai Daoyi Investment Management Co., Ltd from
July 2015 to October 2018. Dr. Li is a member of the China New Economic and Cultural Commission. He received his Bachelor of Engineering
from Wuhan University, EMBA from Cheung Kong Graduate School of Business, Beijing, and Doctorate in Business Administration from the
University of Nice, France.

 Anthony
S. Chan was appointed as an Independent Director on October 26, 2021. Mr. Chan is a certified public accountant registered with
the State of New York and a seasoned finance executive with over 30 years of professional experience in auditing, financial
reporting and business advisory. Mr. Chan is the Chief Financial Officer of
Sharing Services Global Corporation (OTC: SHRG) and President of CA Global Consulting Inc., a company he co-founded in February
2014. Since February 2020, he has been serving as the Director of Assurance and Advisory Services at Wei, Wei & Co., LLP., a
full-service CPA firm registered with the PCAOB. From February 2022 to March 2024, Mr. Chan was the Chief Operating Officer of Alset Inc. (Nasdaq: AEI). From July 2019 to January 2020, Mr. Chan served as the Chief Financial Officer of
SPI Energy Co. Ltd (Nasdaq: SPI). From October 2017 to March 2019, Mr. Chan served
as the Chief Financial Officer of Helo Corp. (OTC Pink: HLOC). From September 2013 to November 2015,
Mr. Chan served as an Executive Vice President, Director and Acting CFO of Sino-Global Shipping America, Ltd. (Nasdaq: SINO). From February 2005 to August 2013, Mr. Chan was a
partner at three full-service CPA firms in New York, including UHY LLP (from September 2012 to August 2013), Friedman LLP (from
September 2011 to July 2012) and Berdon LLP (from February 2005 to August 2011). Prior to that, he had held executive and
professional positions at various U.S.-based companies including Primedia Inc, National Broadcasting Company, Arthur Anderson, KPMG,
and PwC. Mr. Chan holds an MBA in Finance and Investments from Baruch College of the City University of New York, and a Bachelor of
Arts in Accounting and Economics from Queens College of the City University of New York.

 Chaoping
Chen was appointed director on April 9, 2021. Ms. Chen has served as the Secretary General of the Guangdong Wine and Spirits Industry
Association, Wine Division since February 2010 and manages all aspects of the day-to-day operations of the association. She is a member
of the China National Wine Technical Committee and the Global Wine China Tasting System Committee. She is an expert on food and beverage
industry administration and governance. She received her MBA from Sun Yat-Sen University School of Management in Guangzhou, China. She
also studied at the University of Milan on planting and brewing and at the Culinary Institute of America on wine serving.

 Family
Relationships

 There
are no family relationships, or other arrangements or understandings between or among any of the directors or executive officer.

 Board
of Directors

 All
directors hold office until the next annual meeting of shareholders and until their successors have been duly elected and qualified.
Directors are elected at the annual meetings to serve for one-year terms. Officers are elected by, and serve at the discretion of, the
board of directors. Our board of directors shall hold meetings on at least a quarterly basis.

 The
board of directors has determined to comply with the NASDAQ Listing Rules with respect to certain corporate governance matters. As a
smaller reporting company, under the NASDAQ rules we are only required to maintain a board of directors composed of at least 50% independent
directors, and an audit committee of at least two members, composed solely of independent directors who also meet the requirements of
Rule 10A-3 under the Securities Exchange Act of 1934.

 Delinquent
Section 16(a) Reports

 Section
16(a) of the Exchange Act requires that our executive officers and directors, and persons who own more than ten percent of a registered
class of our equity securities, file reports of ownership and changes in ownership with the SEC. Executive officers, directors and greater-than-ten
percent stockholders are required by SEC regulations to furnish us with all Section 16(a) forms they file. Based solely on our review
of the copies of the forms received by us and written representations from certain reporting persons that they have complied with the
relevant filing requirements, we believe that, during the year ended December 31, 2023, all of our executive officers, directors and
greater-than-ten percent stockholders complied with all Section 16(a) filing requirements.

 Director
Independence

 The
board of directors has reviewed the independence of our directors, applying the NASDAQ independence standards. Based on this review,
the board of directors determined that each of Bulin Wang, Chaoping Chen, Bin Lin, Anthony S. Chan, Ramesh Ruben Louis and Jianwei Lin
are independent within the meaning of the NASDAQ rules. In making this determination, our board of directors considered the relationships
that each of these non-employee directors has with us and all other facts and circumstances our board of directors deemed relevant in
determining their independence. As required under applicable NASDAQ rules, we anticipate that our independent directors will meet on
a regular basis as often as necessary to fulfill their responsibilities, including at least annually in executive session without the
presence of non-independent directors and management.

 Board
Committees

 Our
board of directors has established standing committees in connection with the discharge of its responsibilities. These committees include
an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee. Our board of directors has adopted
written charters for each of these committees. Our board of directors may establish other committees as it deems necessary or appropriate
from time to time.

 Audit
Committee

 Our
Audit Committee was established on April 9, 2021 and is composed of three of our independent directors: Jianwei Lin (Chairman until October
26, 2021, remains as member of Audit Committee), Anthony S. Chan (Chairman since October 26, 2021) and Chaoping Chen. Mr. Chan
qualifies as the Audit Committee financial expert as defined in Item 407(d)(5) of Regulation S-K promulgated under the Securities Act.

to its charter, the Audit Committee consists of at least three members, each of whom shall be a non-employee director who has been determined
by the Board to meet the independence requirements of NASDAQ, and also Rule 10A-3(b)(1) of the SEC, subject to the exemptions provided
in Rule 10A-3(c). The Audit Committee Charter describes the primary functions of the Audit Committee, including the following:

 Oversee
 the Company's accounting and the financial reporting processes;

 Oversee
 audits of the Company's consolidated financial statements;

 Review
 and discuss with management the Company's audited consolidated financial statements and review with management and the
 Company's independent registered public accounting firm the Company's consolidated financial statements prior to the
 filing with the SEC of any report containing such financial statements.

 Discuss
 policies with respect to risk assessment and risk management, and discuss the Company's major financial risk exposures and
 the steps management has taken to monitor and control such exposures;

 Review
 major changes to the Company's auditing and accounting principles and practices as suggested by the Company's independent
 registered public accounting firm, internal auditors or management; and

 Take,
 or recommend that the board take, appropriate action to oversee and ensure the independence of the Company's independent registered
 public accounting firm.

 Compensation
Committee

 Our
Compensation Committee was established on April 9, 2021 and is composed of three of our independent directors: Jianwei Lin, Anthony
S. Chan and Chaoping Chen. The Compensation Committee is responsible for, among other matters:

 reviewing
 and approving employment agreements and other similar arrangements between us and our executive officers;

 reviewing
 and approving, or recommending to the board of directors to approve the compensation of our CEO and other executive officers and
 directors reviewing key employee compensation goals, policies, plans and programs; and

 appointing
 and overseeing any compensation consultants or advisors

 Corporate
Governance and Nominating Committee

 Our
Corporate Governance and Nominating Committee was established on April 9, 2021 and is composed of three of our independent directors: Jianwei Lin, Bin Li and Chaoping Chen. The Corporate Governance and Nominating Committee
is responsible for, among other matters:

 reviewing
 and making recommendations regarding the structure and composition of our board and the board committees;

 evaluating
 the independence of directors and director nominees;

 developing
 and recommending to the board corporate governance principles and practices;

 reviewing
 and monitoring the Company's Code of Business Conduct and Ethics; and

 overseeing
 the evaluation of the Company's management.

 Code
of Ethics

 We
have adopted a code of ethics that applies to all of our executive officers, directors and employees. The code of ethics codifies the
business and ethical principles that govern all aspects of our business. A copy of the code of ethics is attached as Exhibit 14.1 to
this Annual Report.

 Involvement
in Certain Legal Proceedings

 To
our knowledge, there are no material proceedings to which any of our directors, officers or affiliates of the Company is a party adverse
to the Company or has a material interest adverse to the Company.

 Section
16(a) Beneficial Ownership Reporting Compliance

 Section
16(a) of the Exchange Act requires that our executive officers and directors, and persons who own more than ten percent of a registered
class of our equity securities, file reports of ownership and changes in ownership with the SEC. Executive officers, directors and greater-than-ten
percent stockholders are required by SEC regulations to furnish us with all Section 16(a) forms they file. Based solely on our review
of the copies of the forms received by us and written representations from certain reporting persons that they have complied with the
relevant filing requirements, we believe that, during the year ended December 31, 2023, all of our executive officers, directors and
greater-than-ten percent stockholders complied with all Section 16(a) filing requirements.

 Item
11. Executive Compensation

 The
following table sets forth the compensation paid or accrued by us to our Chief Executive Officer and Chief Financial Officer for the
years ended December 31, 2023 and 2022.

 Name and principal position

 Year

 Salary ($)

 Bonus ($)

 Stock awards ($)

 Option awards ($)

 Nonequity

 incentive

 plan

 compensation ($)

 Nonqualified

 deferred

 compensation

 earnings ($)

 All other

 compensation ($)

 Total ($)

 Yumin Lin

 2023

 25,577

 -

 -

 -

 -

 -

 -

 25,577

 Chairman of the Board, Chief Executive Officer, President and Secretary

 2022

 26,858

 -

 -

 -

 -

 -

 -

 26,858

 Kaihong Lin (1)

 2023

 30,661

 -

 -

 -

 -

 -

 30,661

 Chief Financial Officer, Treasurer and Director

 2022

 32,221

 -

 -

 -

 -

 -

 32,221

 Employment
Agreements with Named Executive Officers

 On
December 20, 2019, the Company and Mr. Kaihong Lin entered into an employment agreement (the "Employment Agreement") setting
forth the terms and conditions of Mr. Lin's employment as Chief Financial Officer and Treasurer. Pursuant to the Employment Agreement,
Mr. Lin will serve as the Chief Financial Officer and Treasurer for a term of one year, subject to automatic renewal for successive one-year
terms, unless either party gives 60-day prior notice of non-renewal. Mr. Lin is entitled to an annual base salary of $25,676 for his
services and participation in all compensation and employee benefit plans. Should Mr. Lin be terminated for cause, or by reason of death
or disability, or resign without good reason (as such terms are defined in the Employment Agreement), Mr. Lin shall be entitled to receive
his base salary and benefits through the end of his employment and such other compensation and benefits as may be provided in applicable
plans and programs of the Company. In the case of termination by death, Mr. Lin is entitled to receive the portion of stock option to
the extent vested prior to the end of his employment. Should Mr. Lin be terminated without cause (other than due to death or disability)
or resign for good reason, he shall be entitled to receive any accrued and unpaid base salary, benefits and the stock option to the extent
vested through the end of his employment, as well as continuation of his base salary for three months following of the end of his employment.

 Outstanding
Equity Awards

 There
were no outstanding equity awards, as of December 31, 2023.

 Equity
Compensation Plan Information

 We
currently do not have an equity compensation plan.

 Director
Compensation

 The table below sets forth the compensation received by our directors in the year ended December 31, 2023.

 Name (1)

 Fees earned or
 paid in cash
 ($)

 Stock
 awards
 ($)

 Option
 awards
 ($)

 All other
 compensation
 ($)

 Total
 ($)

 Jianwei Lin

 3,396

 -

 -

 -

 3,396

 Bin Li

 3,396

 -

 -

 -

 3,396

 Anthony S. Chan

 30,000

 -

 -

 -

 30,000

 Chaoping Chen

 3,396

 -

 -

 -

 3,396

 Bulin Wang (2)

 1,273

 -

 -

 -

 1,273

 Ramesh Ruben Louis (3)

 9,600

 -

 -

 -

 9,600

 (1)

 This table does not include
 Mr. Yumin Lin, our Chief Executive Officer and director and Mr. Caihong Lin, our Chief Financial Officer and director whose compensation
 is fully reflected in the Summary Compensation Table.

 (2)

 Mr. Bulin Wang resigned
 as a director on May 18, 2023

 (3)

 Mr. Ramesh Ruben Louis
 resigned as a director on January 23, 2024.

 Compensation
Committee Interlocks and Insider Participation

 None
of our executive officers currently serves, or has served during the last completed fiscal year, on the compensation committee or board
of directors of any other entity (other than a subsidiary or consolidated affiliate of the Company) that has one or more executive officers
serving as a member of our Board or Compensation Committee.

 Item
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 The
following table sets forth certain information, regarding the beneficial ownership of the Company's common stock as of April 15, 2024 by (i) each shareholder known by the Company to be the beneficial owner of 5% or more of its common stock, (ii) by each director
and executive officer of the Company and (iii) by all executive officers and directors of the Company as a group. Each of the persons
named in the table has sole voting and investment power with respect to common stock beneficially owned.

 The
information presented below regarding beneficial ownership of our voting securities has been presented in accordance with the rules of
the Securities and Exchange Commission and is not necessarily indicative of ownership for any other purpose. Under these rules, a person
is deemed to be a "beneficial owner" of a security if that person has or shares the power to vote or direct the voting of
the security or the power to dispose or direct the disposition of the security. A person is deemed to own beneficially any security as
to which such person has the right to acquire sole or shared voting or investment power within sixty (60) days through the conversion
or exercise of any convertible security, warrant, option, or other right. More than one (1) person may be deemed to be a beneficial owner
of the same securities. The percentage of beneficial ownership by any person as of a particular date is calculated by dividing the number
of shares beneficially owned by such person, which includes the number of shares as to which such person has the right to acquire voting
or investment power within sixty (60) days, by the sum of the number of shares outstanding as of such date. Consequently, the denominator
used for calculating such percentage may be different for each beneficial owner. Except as otherwise indicated below and under applicable
community property laws, we believe that the beneficial owners of our common stock listed below have sole voting and investment power
with respect to the shares shown.

 The
column entitled "Percentage of Shares Beneficially Owned" is based on a total of 15,655,038 shares of our common stock outstanding
as of April 15, 2024.

 The
business address of each directors and officers listed below is 16th Floor, Building 2, A+Building, 139 Liansheng Road, Humen Town, Dongguan
City, Guangdong Province, China 523900.

 Name of Beneficial Owner

of
 Shares
 Beneficially

 Owned

 Percentage
 of

 Shares

 Beneficially

 Owned

 Directors and Officers

 Yumin Lin (1)

 6,501,708

 41.53
 %

 Kaihong Lin (2)

 3,588

 *

 Anthony S. Chan

 -

 -

 Jianwei Lin

 -

 -

 Bin Li

 -

 -

 Chaoping Chen

 -

 -

 All officers and directors as a group (six persons)

 6,505,296

 41.55
 %

 5% Shareholders

 China Kaipeng Group Co., Ltd. (3)

 5,400,000

 34.49
 %

 Minghua Cheng (4)

 4,700,912

 30.03
 %

 Gaosheng Group Co., Ltd. (5)

 4,362,616

 27.87
 %

 *
Less than one percent.

 (1)

 Consists
 of (i) 900,000 shares of the Company's common stock Mr. Yumin Lin holds directly, which shares were issued to Mr. Lin in our
 acquisition of DIGLS on April 23, 2018, (ii) approximately 4,362,616 shares held by Gaosheng Group Co., Ltd., which is solely owned
 by Mr. Lin who may be deemed to have the voting and dispositive power of such shares, (iii) 1,214,820 shares held by China Kaipeng
 Group Co., Ltd, a company Mr. Lin owns 15.88% who may be deemed to have the voting and dispositive power of such shares, and (iv)
 approximately 24,272 shares issued to him on December 16, 2020 in lieu of the full payment of the working capital advances and loans
 he made to the Company.

 (2)

 Consists
 of 3,588 shares of the Company's common stock Mr. Kaihong Lin holds directly, of which 813 shares were issued on July 19, 2019
 and 2,775 were issued on August 7, 2019 in private placements.

 (3)

 Minghua
 Cheng and Yumin Lin holds 77.5% and 22.5% of China Kaipeng Group Co., Ltd, respectively, and are deemed to hold the voting and
 dispositive power over the Company's common stock held by China Kaipeng Group Co., Ltd. The business address of this company
 is Second Floor, Capital City Independence Avenue Mahe Victoria, Seychelles.

 (4)

 Consists
 of (i) 515,732 shares of the Company's common stock Mr. Minghua Cheng holds directly, of which approximately 487,431 shares
 were issued to Mr. Cheng on June 28, 2018 in a private placement, 27,800 shares were issued on April 3, 2019 in a private placement,
 and 500 shares were issued on August 10, 2016 in a private placement and (ii) 4,185,180 shares held through China Kaipeng Group Co.,
 Ltd, a company Mr. Cheng owns 77.5% who may be deemed to have the voting and dispositive power of such shares.

 (5)

 Yumin
 Lin is a 100% shareholder of Gaosheng Group Co., Ltd. and is deemed to hold the voting and dispositive power over the Company's
 common stock held by Gaosheng Group Co., Ltd. The business address of this company is Second Floor, Capital City Independence Avenue
 Mahe Victoria, Seychelles.

 The
Company does not know any arrangements which may result in a change in control of the Company at a subsequent date.

 Item
13. Certain Relationships, Related Transactions and Director Independence

 As
of December 31, 2023 and 2022, the Company had accounts receivable from related parties in amounts of $61,113 and $146,087, prepayments
to related parties in the amounts of $941,978 and $1,102,861, deposits to related parties in the amounts of $536,450 and $758,445, and
accounts payable to related parties in amounts of $162,310 and $80,426, respectively.

 As
of December 31, 2023 and 2022, the Company had outstanding payables due to its related parties in the amounts of $680,226 and $565,675,
respectively, which mainly consisted of borrowings for working capital purpose. The balances were unsecured, non-interest bearing and
due on demand.

the years ended December 31, 2023 and 2022, the Company's related parties paid expenses on behalf of the Company in the amounts
of $nil and $135,774, respectively.

the years ended December 31, 2023 and 2022, the Company sold products to its related parties in the amounts of $88,684 and $238,824,
respectively, purchased goods from its related parties in the amounts of $598,457 and $1,309,553, and incurred cost of revenues from
related parties in the amounts of $608,872 and $1,302,498, respectively.

the years ended December 31, 2023 and 2022, the rental expenses to related parties were $18,609 and $20,736, respectively.

 Our
related parties are primarily those who are significantly influenced by the Company based on our common business relationships. For more
related party transactions, see Note 3, 4, 5, 9, 10 and 11 to the accompanying consolidated financial statements.

 Item
14. Principal Accountant Fees and Services

 The
following table shows the fees that we paid or accrued for the audit and other services provided by our independent registered public
accounting firm for the fiscal years ended December 31, 2023 and 2022.

 Fee Category

 Fiscal Year

 Ended
 December 31,
 2023

 Fiscal Year

 Ended
 December 31,
 2022

 Audit Fees (1)

 $
 466,280

 $
 534,550

 Audit-Related Fees (2)

 $
 -

 $
 -

 Tax Fees (3)

 $
 31,500

 $
 -

 All Other Fees (4)

 $
 -

 $
 -

 (1)
This category consists of fees for professional services rendered by our principal independent registered public accountants for the
audit of our annual financial statements, review of financial statements included in our quarterly reports and services that are normally
provided by the independent registered public accounting firms in connection with statutory and regulatory filings or engagements for
those fiscal years.

 (2)
This category consists of fees for assurance and related services by our independent registered public accountant that are reasonably
related to the performance of the audit or review of our financial statements and are not reported above under "Audit Fees."
The services for the fees disclosed under this category include consultations concerning financial accounting and reporting standards.

 (3)
This category consists of fees for professional services rendered by our independent registered public accountant for tax compliance,
tax advice, and tax planning.

 (4)
This category consists of fees for services provided by our independent registered public accountants other than the services described
above.

 All
above audit services were pre-approved by the Audit Committee of the Board of Directors for the fiscal years ended December 31, 2023
and 2022, which concluded that the provision of such services by YCM CPA Inc., our current auditor, and MaloneBailey, LLP, our
predecessor auditor, respectively, was compatible with maintenance of the firm's independence in the conduct of its audits.

 Item
15. Exhibits and Financial Statement Schedules

 (a)
Documents filed as part of this Annual Report

 (1)
All Financial Statements

 The
consolidated financial statements as listed in the accompanying "Index to Consolidated Financial Statements" are filed as
part of this Annual Report on Form 10-K.

 (2)
Financial Statement Schedules

 All
financial statement schedules have been omitted, since the required information is not applicable or is not present in amounts sufficient
to require submission of the schedule, or because the information required is included in the consolidated financial statements and notes
thereto included in this Form 10-K.

 (3)
Exhibits

 Description

 3.1

 Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form S-1 as amended filed with the SEC on December 5, 2014)

 3.2

 Bylaws (incorporated by reference to Exhibit 3.2 the Company's Registration Statement on Form S-1 as amended filed with the SEC on December 5, 2014).

 3.3

 Certificate of Change (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on October 21, 2021)

 4.1*

 Description of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended

 10.1 +

 Employment Agreement, dated as of December 20, 2019, by and between Fortune Valley Treasures, Inc. and Kaihong Lin (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on December 20, 2019)

 14.1

 Code of Ethics (incorporated by reference to Exhibit 14.1 to the Company's Annual Report on Form 10-K filed with the SEC on April 26, 2021)

 16.1

 Letter from MaloneBailey, LLP dated February 8, 2024 (incorporated by reference to Exhibit 16.1 to our Current Report on Form 8-K filed on February 8, 2024)

 21.1*

 Subsidiaries of the registrant

 31.1*

 Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).

 31.2*

 Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).

 32.1**

 Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

 32.2**

 Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

 97.1*

 Fortune Valley Treasures, Inc. Clawback Policy

 101.INS*

 101.SCH*

 101.CAL*

 101.DEF*

 101.LAB*

 101.PRE*

 Cover

 *
Filed herewith

 **
Furnished herewith

 +
Management contract or compensatory plan

 Item
16. Form 10–K Summary

 None.

 SIGNATURES

to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

 FORTUNE
 VALLEY TREASURES, INC.

 Date: April 15,
 2024

 By:

 /s/
 Yumin Lin

 Name:

 Yumin
 Lin

 Title:

 Chief
 Executive Officer, President and Secretary (Principal Executive Officer)

 By:

 /s/
 Kaihong Lin

 Name:

 Kaihong
 Lin

 Title:

 Chief
 Financial Officer and Treasurer

 (Principal
 Financial and Accounting Officer)

Financial Statements

 For
the Years Ended December 31, 2023 and 2022

 Contents

 Page

 Report of Independent Registered Public Accounting Firm (PCAOB ID 6781)

 Report of Independent Registered Public Accounting Firm (PCAOB ID 206)

 Consolidated Balance Sheets

 Consolidated Statements of Operations and Comprehensive Income (Loss)

 Consolidated Statements of Stockholders' Equity

 Consolidated Statements of Cash Flows

 Notes to Financial Statements

 to F-23

 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To
the Board of Directors and

 Stockholders
of Fortune Valley Treasures, Inc.

 Opinion
on the Financial Statements

 We
have audited the accompanying consolidated balance sheet of Fortune Valley Treasures, Inc. and its subsidiaries (collectively, the "Company")
as of December 31, 2023, and the related consolidated statements of operations and comprehensive loss, changes in stockholders'
equity, and cash flows for the year ended December 31, 2023 and the related notes (collectively referred to as the "financial statements").

 In
our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December
31, 2023, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally
accepted in the United States of America.

 Going Concern

 The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.
As discussed in Note 1 to the financial statements, the Company has sustained net losses from its operations and has experienced negative
operating cashflows in the current year, and the Company also reports an accumulated deficit as at December 31, 2023, which raises substantial
doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note
1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 Basis
for Opinion

 These
financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's
financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit,
we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion
on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due
to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe
that our audit provides a reasonable basis for our opinion.

 Critical
Audit Matters

 Critical
audit matters are matters arising from the current period audit of the financial statements that were communicated or are required to
be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements
and (2) involved especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are
not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts
or disclosures to which it relates.

 F- 1

 Valuation
of Allowance for Accounts Receivable

 Description
of the Matter

 As
described in Note 3 to the consolidated financial statements, as of December 31, 2023, the accounts receivable amounted to US$3,118,892
net of allowance for credit losses of US$1,718,960. When assessing the recoverability of accounts receivable, management comprehensively
consider factors such as the aging of accounts receivable, the customer's past repayment history and current industry situation,
among others. We identified the valuation of allowance for accounts receivable as a critical audit matter because of its inherent complexity
and significant judgement in assessing the credit losses.

 How
We Addressed the Matter in Our Audit

 In
order to address the matter above, our audit procedures included, among others,

 (1)

 Assessing
 the appropriateness of the Company's methodology for estimating expected credit losses to determine whether the methodology
 and assumptions used in significant models are consistent with the requirements of U.S. GAAP and industry standards.

 (2)

 Testing
 the completeness and accuracy of data used in measuring the current expected credit loss and evaluating management's accounts
 receivable aging policies and examining the historical and the subsequent settlements from the customers.

 (3)

 For
 the customers with significant accounts receivable balances or receivables past due, we performed research on publicly available
 information to identify any inconsistencies with the information management used in the assessment of impairment of accounts receivable.

 (4)

 Reviewing
 the disclosures related to expected credit loss to ensure they are complete and provide adequate information about the assumptions
 used and the risks associated with the Company's credit loss estimates.

 Evaluation
of the Identification of Related Parties and Related Party Transactions

 Description
of the Matter

 As
disclosed in Note 9 to the consolidated financial statements, the Company engages in transactions with related parties, which are integral
to its operations. These transactions include but not limited to, leases, sale and procurement of goods and services, borrowings for
working capital purpose. We identified the evaluation of the identification of related parties and relate-party transactions as a critical
audit matter due to the complexity and the inherent risk of omission or incomplete disclosure of related parties and their transactions.
The potential for these transactions to not be conducted on arm's length terms, along with the extensive nature of transactions.

 How
We Addressed the Matter in Our Audit

 In
order to address the matter above, our audit procedures included, among others,

 (1)

 Gaining
 and understanding of the Company's process for identifying related parties and related-party transactions, reviewing the Company's
 policies and procedures for identifying and disclosing such relationships and transactions, as well as the controls in place to ensure
 completeness and accuracy.

 (2)

 Conducting
 inquiries with management and those charged with governance to identify all related parties and understand the nature of transactions
 with these parties. We also obtained confirmations from identified related parties to corroborate the information provided by management.

 (3)

 For
 significant related-party transactions identified during the audit, we reviewed the underlying contracts and agreements to assess
 whether the terms and conditions were consistent with those of arm's length transactions.

 (4)

 Conducting
 targeted searches for potential undisclosed related-party relationship using the names of the entities, key management personnel,
 significant shareholders and known related parties.

 (5)

 Reviewing
 the financial statement disclosures related to related parties and related-party transactions to ensure they were complete and in
 accordance with the relevant financial reporting framework.

 /s/
 YCM CPA, Inc.

 We
have served as the Company's auditor since 2024.

 PCAOB ID 6781

 Irvine, California

 April 15,
2024

 F- 2

 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To
the Shareholders and Board of Directors of

 Opinion
on the Financial Statements

 We
have audited the accompanying consolidated balance sheet of Fortune Valley Treasures, Inc. and its subsidiaries (the "Company")
as of December 31, 2022, and the related consolidated statements of operations and comprehensive loss, stockholders'
equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements").
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December
31, 2022, and the results of their operations and their cash flows for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.

 Basis
for Opinion

 These
financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's
financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit
we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit
provides a reasonable basis for our opinion.

 /s/
 MaloneBailey, LLP

 www.malonebailey.com

 We
have served as the Company's auditor from 2021 to January 25, 2024.

 Shenzhen,
China

 March
31, 2023

 F- 3

Balance Sheets

 As
of December 31, 2023 and 2022

 2023

 2022

 Assets

 Current assets

 Cash and cash equivalents

 $
 288,255

 $
 165,685

 Accounts receivable, net (including $ 61,113 and $ 146,087 from related parties as of December 31, 2023 and 2022, respectively)

 3,118,892

 4,797,564

 Inventories

 32,587

 148,925

 Prepayments and other current assets, net (including $ 941,978 and $ 1,102,861 to related parties as of December 31, 2023 and 2022, respectively)

 1,643,455

 1,758,917

 Total current assets

 5,083,189

 6,871,091

 Non-current assets

 Deposits paid, net (including $ 536,450 and $ 758,445 to related parties as of December 31, 2023 and 2022, respectively)

 618,456

 1,121,302

 Property and equipment, net

 83,706

 97,890

 Operating lease right-of-use assets

 248,626

 297,232

 Operating lease right-of-use assets, related parties

 63,553

 75,300

 Intangible assets, net

 151,639

 370,926

 Goodwill

 -

 454,201

 Total Assets

 $
 6,249,169

 $
 9,287,942

 Liabilities and Stockholders' Equity

 Current liabilities

 Operating lease obligations - current

 $
 119,633

 $
 110,201

 Operating lease obligations, related parties - current

 16,986

 16,629

 Accounts payable (including $ 162,310 and $ 80,426 to related parties as of December 31, 2023 and 2022, respectively)

 583,887

 688,822

 Accrued liabilities

 627,457

 502,389

 Bank and other borrowings - current

 458,023

 422,653

 Income tax payable

 1,453

 38,879

 Customer advances

 1,364,260

 139,334

 Due to related parties

 680,226

 565,675

 Total current liabilities

 3,851,925

 2,484,582

 Non-current liabilities

 Operating lease obligations – non-current

 153,487

 189,957

 Operating lease obligations, related parties – non-current

 40,877

 55,056

 Bank and other borrowings

 212,042

 58,438

 Total Liabilities

 4,258,331

 2,788,033

 Stockholders' Equity

 Common stock, 150,000,000 shares authorized, 15,655,038 shares issued and outstanding as of December 31, 2023 and 2022

 Additional paid-in capital

 Accumulated deficit and statutory reserves

 ( 8,551,019
)

 ( 4,504,404
)

 Accumulated other comprehensive income (loss)

 ( 406,190
)

 ( 180,826
)

 Total Fortune Valley Treasures, Inc. stockholders' equity

 2,119,679

 6,391,658

 Noncontrolling interests

 ( 128,841
)

 108,251

 Total Stockholders' Equity

 1,990,838

 6,499,909

 Total Liabilities and Stockholders' Equity

 $
 6,249,169

 $
 9,287,942

 See
accompanying notes to the consolidated financial statements

 F- 4

Statements of Operations and Comprehensive Income (Loss)

 For
the Years ended December 31, 2023 and 2022

 2023

 2022

 Net revenues (including $ 88,684 and $ 238,824 from related parties for the years ended December 31, 2023 and 2022, respectively)

 $
 4,236,565

 $
 9,234,079

 Cost of revenues (including $ 608,872 and $ 1,302,498 from related parties for the years ended December 31, 2023 and 2022, respectively)

 2,255,306

 4,593,405

 Gross profit

 1,981,259

 4,640,674

 Operating expenses:

 Selling and distribution expenses

 57,422

 61,047

 General and administrative expenses

 5,636,052

 4,685,932

 Impairment loss on intangible asset

 -

 979,428

 Impairment loss on goodwill

 444,012

 863,833

 Operating loss

 ( 4,156,227
)

 ( 1,949,566
)

 Other income (expense):

 Other income

 19,784

 10,551

 Interest income

 Interest expense

 ( 38,389
)

 ( 31,444
)

 Other expense, net

 ( 18,527
)

 ( 20,633
)

 Loss before income tax

 ( 4,174,754
)

 ( 1,970,199
)

 Income tax expense

 96,445

 186,480

 $
 ( 4,271,199
)

 $
 ( 2,156,679
)

 Less: Net loss attributable to noncontrolling interests

 ( 224,584
)

 ( 213,956
)

 Net loss attributable to Fortune Valley Treasures, Inc.

 ( 4,046,615
)

 ( 1,942,723
)

 Other comprehensive loss:

 Foreign currency translation loss

 ( 237,872
)

 ( 807,766
)

 Total comprehensive loss

 ( 4,509,071
)

 ( 2,964,445
)

 Less: comprehensive loss attributable to noncontrolling interests

 ( 237,092
)

 ( 296,591
)

 Comprehensive loss attributable to Fortune Valley Treasures, Inc.

 $
 ( 4,271,979
)

 $
 ( 2,667,854
)

 Earnings (loss) per share

 Basic and diluted loss per share

 $
 ( 0.26
)

 $
 ( 0.12
)

 Basic and diluted weighted average shares outstanding

 See
accompanying notes to the consolidated financial statements

 F- 5

Statements of Stockholders' Equity

 For
the Years ended December 31, 2023 and 2022

 No. of

 Shares*

 Common

 Stock*

 Additional

 Paid-in

 Capital*

 Accumulated

 Deficit and
Statutory

 Reserves

 Accumulated

 Other

 Comprehensive

 Income (Loss)

 Non

 controlling

 Interests

 Total

 Stockholders'

 Equity

 Balance as of December 31, 2021

 $

 $

 $
 ( 2,561,681
)

 $
 544,305

 $
 404,842

 $
 9,464,354

 -

 -

 -

 -

 ( 725,131
)

 ( 82,635
)

 ( 807,766

 -

 -

 -

 ( 1,942,723
)

 -

 ( 213,956
)

 ( 2,156,679

 Balance as of December 31, 2022

 $

 $

 $
 ( 4,504,404
)

 $
 ( 180,826
)

 $
 108,251

 $
 6,499,909

 Balance, value

 $

 $

 $
 ( 4,504,404
)

 $
 ( 180,826
)

 $
 108,251

 $
 6,499,909

 -

 -

 -

 -

 ( 225,364
)

 ( 12,508
)

 ( 237,872
)

 -

 -

 -

 ( 4,046,615
)

 -

 ( 224,584
)

 ( 4,271,199
)

 Balance as of December 31, 2023

 $

 $

 $
 ( 8,551,019
)

 $
 ( 406,190
)

 $
 ( 128,841
)

 $
 1,990,838

 Balance, value

 $

 $

 $
 ( 8,551,019
)

 $
 ( 406,190
)

 $
 ( 128,841
)

 $
 1,990,838

 See
accompanying notes to the consolidated financial statements

 F- 6

Statements of Cash Flows

 For
the Years ended December 31, 2023 and 2022

 2023

 2022

 Cash flows from operating activities

 $
 ( 4,271,199
)

 $
 ( 2,156,679
)

 Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 Depreciation and amortization expense

 243,865

 852,883

 Non-cash lease expense

 50,693

 172,314

 Allowance for doubtful accounts

 3,355,805

 2,564,686

 Impairment loss on intangible asset

 -

 979,428

 Impairment loss on goodwill

 444,012

 863,833

 Changes in operating assets and liabilities

 Accounts receivable

 ( 168,106
)

 ( 2,417,438
)

 Inventories

 112,862

 ( 76,524
)

 Prepayments and other current assets, net

 ( 1,075,718
)

 ( 1,033,644
)

 Due from related parties

 -

 24,958

 Deposits paid, net

 ( 9,688
)

 ( 251,545
)

 Accounts payable

 ( 87,046
)

 482,213

 Due to related parties

 ( 77,006
)

 ( 162,018
)

 Customer advances

 1,233,751

 ( 218,717
)

 Accrued liabilities

 136,250

 531,332

 Income tax payable

 ( 36,548
)

 15,660

 Operating lease obligations

 ( 31,137
)

 ( 163,815
)

 Cash provided by (used in) operating activities

 ( 179,210
)

 6,927

 Cash flows from investing activities

 Acquisition of intangible asset

 -

 ( 7,511
)

 Purchase of property and equipment

 ( 4,879
)

 ( 2,599
)

 Net cash used in investing activities

 ( 4,879
)

 ( 10,110
)

 Cash flows from financing activities

 Borrowings from a revolving credit line

 ( 6,084
)

 148,606

 Borrowings from bank loans

 375,009

 135,499

 Borrowings from a third party

 -

 80,338

 Repayments to related parties

 -

 ( 154,510
)

 Repayments to bank loans

 ( 100,768
)

 ( 61,184
)

 Repayments to a third party

 ( 31,552
)

 ( 82,629
)

 Net cash provided by financing activities

 236,605

 66,120

 Effect of exchange rate changes on cash and cash equivalents

 70,054

 ( 20,415
)

 Net changes in cash and cash equivalents

 122,570

 42,522

 Cash and cash equivalents–beginning of the year

 165,685

 123,163

 Cash and cash equivalents–end of the year

 $
 288,255

 $
 165,685

 Supplementary cash flow information:

 Interest paid

 $
 38,389

 $
 31,444

 Income taxes paid

 $
 178,966

 $
 166,516

 Non-cash investing and financing activities

 Expenses paid by related parties on behalf of the Company

 $
 -

 $
 135,774

 Remeasurement of the operating lease obligation and right-of-use asset due to lease modification

 $
 32,875

 $
 -

 Operating lease right-of-use assets obtained in exchange for operating lease obligations

 $
 123,829

 $
 94,285

 Liabilities assumed in connection with purchase of PPE

 $
 27,611

 $
 -

 See
accompanying notes to the consolidated financial statements

 F- 7

 NOTE
1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Valley Treasures, Inc. (formerly Crypto-Services, Inc.) ("FVTI" or the "Company") was incorporated in the State
of Nevada on March 21, 2014. The Company's primary business operations of wholesale distribution and retail sales of alcoholic
beverages of wine and distilled liquors, and drinking water distribution and delivery are conducted through its subsidiaries in the People's
Republic of China ("PRC").

 On
April 11, 2018, the Company entered into a share exchange agreement by and among DaXingHuaShang Investment Group Limited ("DIGLS")
and its shareholders: 1.) Yumin Lin, 2.) Gaosheng Group Co., Ltd. and 3.) China Kaipeng Group Co., Ltd. whereby the Company newly issued
 15,000,000 shares (given effect of the Reverse Stock Split, see Note 12) of its common stock in exchange for all the outstanding shares
in DIGLS. This transaction has been accounted for as a reverse takeover transaction and a recapitalization of the Company whereby the
Company, the legal acquirer, is the accounting acquiree, and DIGLS, the legal acquiree, is the accounting acquirer; accordingly, the
Company's historical statement of stockholders' equity has been retroactively restated to the first period presented.

 On
March 1, 2019, the Company entered into a sale and purchase agreement (the "SP Agreement") to acquire 100 % of the shares
of Jiujiu Group Stock Co., Ltd. ("JJGS"), a company incorporated under the laws of the Republic of Seychelles. The transaction
closed on March 1, 2019. Pursuant to the SP Agreement, the Company issued 5 shares (given effect of the Reverse Stock Split, see Note
12) of its common stock to JJGS to acquire 100 % of the shares of JJGS for a cost of $ 150. After the closing, JJGS became the Company's
wholly owned subsidiary. JJGS owns all of the equity interest of Jiujiu (HK) Industry Limited ("JJHK") and Jiujiu (Shenzhen)
Industry Co., Ltd. ("JJSZ"). JJGS, JJHK and JJSZ did not have any material assets or liabilities as of December 31, 2019,
and they did not have any substantial operations or active business during the year ended December 31, 2019.

 On
June 22, 2020, the Company entered into a sale and purchase agreement along with Qianhai DaXingHuaShang Investment (Shenzhen) Co., Ltd.,
a company incorporated in China and a wholly-owned subsidiary of FVTI ("QHDX"), to acquire 90 % of the shares of Dongguan
Xixingdao Technology Co., Ltd. ("Xixingdao"), a company incorporated in the PRC, from certain shareholders of Xixingdao in
exchange for 243,134 shares (given effect of the Reserve Stock Split, see Note 12) of the Company's common stock. The Company obtained
the control of Xixingdao on August 31, 2020, the shares were issued on December 28, 2020. Xixingdao became the Company's subsidiary
since August 31, 2020.

 On
January 6, 2021, FVTI, JJGS, Valley Holding Limited ("Valley Holdings") and Angel International Investment Holdings Limited
(the "Valley Holdings Seller") signed a termination agreement, pursuant to which the parties mutually agreed to terminate
the original equity interest transfer agreement signed on March 16, 2020. On the same date, FVTI, DILHK, Valley Holdings and the Valley
Holdings Seller entered into a new equity interest transfer agreement, pursuant to which DILHK agreed to purchase 70 % of Valley Holdings'
equity interest from the Valley Holdings seller (the "Valley Holdings Agreement"). On July 8, 2022, FVTI, DILHK, Valley Holdings
and the Valley Holdings Seller signed a termination agreement, pursuant to which the parties mutually agreed to terminate the Valley
Holdings Agreement signed on March 16, 2020. The Valley Holdings Agreement was terminated effective July 8, 2022 and the parties have
no further rights or obligations under the Valley Holdings Agreement. The parties further agreed to waive their rights to any claims
that may arise under the Valley Holdings Agreement. As of the date of the termination agreement, no equity interest of Valley Holdings
had been transferred to FVTI, DILHK or Valley Holdings.

 On
February 28, 2021, FVTI, QHDX and the original shareholders of Foshan BaiTaFeng Beverage Development Co., Ltd. ("BTF") signed
a termination agreement, pursuant to which the parties mutually agreed to terminate the original equity interest transfer agreement signed
on December 31, 2019 ("BTF Agreement"). The BTF Agreement was terminated effective February 28, 2021 and the parties have
no further rights or obligations under the BTF Agreement. The parties further agreed to waive their rights to any claims that may arise
under the BTF Agreement. As of the date of the termination agreement, no equity interest of BTF had been transferred to QHDX.

 Liquidity and capital resources

 As of December 31, 2023, the Company had
working capital of $ 1,231,264
and accumulated deficit and statutory reserves of $ 8,551,019,
and had incurred a net loss of $ 4,271,199,
negative operating cashflows of $ 179,210
during the year ended December 31, 2023. The continuation of the Company as a going concern through December 31, 2023 is dependent
upon improving the profitability and the continuing financial support from its stockholders. Management believes the existing
shareholders or external financing will provide the additional cash to meet the Company's obligations as they become due.

 There and other factors raise
substantial double about the Company's ability to continue as a going concern. These financial statements do not include any adjustments
to reflect to possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities
that may result in the Company not being able to continue as a going concern.

 F- 8

 NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 Basis
of presentation

 These
consolidated financial statements, accompanying notes, and related disclosures have been prepared pursuant to the rules and regulations
of the U.S. Securities and Exchange Commission ("SEC"). These financial statements have been prepared using the accrual basis
of accounting in accordance with the generally accepted accounting principles in the United States ("U.S. GAAP"). The Company's
fiscal year end is December 31. The Company's financial statements are presented in U.S. dollars.

 Basis
of consolidation

 The
consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions
have been eliminated. The results of subsidiaries acquired during the respective periods are included in the consolidated statements
of operations from the effective date of acquisition or up to the effective date of disposal, as appropriate. The portion of the income
or loss applicable to noncontrolling interests in subsidiaries is reflected in the consolidated statements of operations.

 As
of December 31, 2023, details of the Company's major subsidiaries were as follows:

OF ENTITIES AND ITS SUBSIDIARIES

 Entity
 Name

 Date
 of

 Incorporation

 Parent

 Entity

 % Owned by FVTI

 Nature
 of Operation

 Place
 of

 Incorporation

 DIGLS

 July
 4, 2016

 FVTI

 %

 Republic
 of Seychelles

 DILHK

 June
 22, 2016

 DIGLS

 %

 Hong
 Kong, PRC

 QHDX

 3, 2016

 DILHK

 %

 PRC

 FVTL

 May
 31, 2011

 QHDX

 %

 of food and platform

 PRC

 JJGS

 August
 17, 2017

 FVTI

 %

 Republic
 of Seychelles

 JJHK

 August
 24, 2017

 JJGS

 %

 Hong
 Kong, PRC

 JJSZ

 16, 2018

 JJHK

 %

 of food

 PRC

 August
 28, 2019

 QHDX

 %

 PRC

 City Fu La Tu Trade Ltd ("FLTT")

 27, 2020

 FVTL

 %

 PRC

 City Fu Xin Gu Trade Ltd ("FXGT")

 December
 2, 2020

 FVTL

 %

 PRC

 City Fu Xin Technology Ltd ("FXTL")

 12, 2020

 %

 PRC

 City Fu Guan Healthy Industry Technology Ltd ("FGHL")

 December
 21, 2020

 %

 PRC

 City Fu Jing Technology Ltd ("FJTL")

 17, 2020

 %

 PRC

 City Fu Xiang Technology Ltd ("FGTL")

 16, 2020

 %

 PRC

 City Fu Ji Food & Beverage Ltd ("FJFL")

 9, 2020

 %

 PRC

 City Fu Lai Food Ltd ("FLFL")

 27, 2020

 %

 PRC

 City Fu Yi Beverage Ltd ("FYBL")

 12, 2020

 %

 PRC

 City Fu Xi Drinking Water Company Ltd ("FXWL")

 March
 17, 2021

 %

 water distribution and delivery, sales of alcoholic beverages and water purifier

 PRC

 City Fu Jia Drinking Water Company Ltd ("FJWL")

 March
 29, 2021

 %

 water distribution and delivery, sales of water purifier

 PRC

 City Fu Sheng Drinking Water Company Ltd ("FSWL")

 March
 29, 2021

 %

 water distribution and delivery, sales of water purifier

 PRC

 Shenzhen
 Fu Jin Trading Technology Company Ltd ("FJSTL")

 June
 7, 2021

 %

 water distribution and delivery, sales of water purifier

 PRC

 City Fu Li Trading Ltd ("FLTL")

 10, 2021

 %

 water distribution and delivery, sales of water purifier

 PRC

 City Fu Gu Supply Chain Group Ltd ("FGGC")

 13, 2021

 QHDX

 %

 Sales

 PRC

 City Fu Zhi Gu Trading Ltd ("FZGTL")

 9, 2022

 FVTL

 %

 PRC

 City Chang Fu Trading Ltd ("CFTL")

 9, 2022

 FVTL

 %

 PRC

 City La Tong Trading Ltd ("LTTL")

 August
 8, 2022

 FVTL

 %

 PRC

 City Kai Fu Trading Ltd ("KFTL")

 8, 2022

 FVTL

 %

 PRC

 Non-controlling interests

 For the Company's consolidated subsidiaries, non-controlling interests
are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling
shareholder. Non-controlling interests are classified as a separate line item in the equity section of the Group's consolidated
balance sheets and have been separately disclosed in the Group's consolidated statements of operations and comprehensive loss to
distinguish the interests from that of the Company.

 F- 9

 Use
of estimates

 The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions relating to the
reporting of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the reporting period. Significant accounting estimates include certain assumptions related to
going concern, allowance of doubtful accounts, allowance of deferred tax asset and uncertain tax position, implicit interest rate of
operating leases, useful lives and impairment of long-lived assets, and impairment of goodwill. Actual results may differ from these
estimates.

 Foreign
currency translation and re-measurement

 The
Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, " Foreign Currency Matters ".

 The
reporting currency for the Company and its subsidiaries is the U.S. dollar. The Company, DIGLS, DILHK, JJGS and JJHK's functional
currency is the U.S. dollar; QHDX, JJSZ and their subsidiaries which are incorporated in PRC use the Chinese Renminbi ("RMB")
as their functional currency.

 The
Company's subsidiaries, whose records are not maintained in that company's functional currency, re-measure their records
into their functional currency as follows:

 Monetary
 assets and liabilities at exchange rates in effect at the end of each period

 Nonmonetary
 assets and liabilities at historical rates

 Revenue
 and expense items at the average rate of exchange prevailing during the period

 Gains
and losses from these re-measurements were not significant and have been included in the Company's results of operations.

 The
Company's subsidiaries, whose functional currency is not the U.S. dollar, translate their records into the U.S. dollar as follows:

 Assets
 and liabilities at the rate of exchange in effect at the balance sheet date

 Equities
 at the historical rate

 Revenue
 and expense items at the average rate of exchange prevailing during the period

 Translation
of amounts from the local currencies of the Company into US$ has been made at the following exchange rates for the respective periods:

OF FOREIGN CURRENCY EXCHANGE RATE TRANSLATION

 2023

 2022

 As of and for the year ended
 December 31,

 2023

 2022

 Period-end RMB:US$1 exchange rate

 0.14090

 0.14474

 Period-average RMB:US$1 exchange rate

 0.14149

 0.14896

 F- 10

 The
RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions.
No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation.

 Cash
and cash equivalents

 Cash
and cash equivalents consist of cash on hand, demand deposits placed with banks or other financial institutions and have original maturities
of less than three months. The Company's primary bank deposits are located in the PRC.

 Accounts
receivable and allowance for doubtful accounts

 Accounts
receivable are stated at the customer obligations due under normal trade terms net of allowance for doubtful accounts.

 The
Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected.
The Company determines the allowance for doubtful accounts taking into consideration various factors including but not limited to historical
collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally,
the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account
is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability.

 As
of December 31, 2023 and 2022, the Company has
allowance for doubtful accounts of $ 1,718,960 and $ nil. There are amounts of $ 1,726,142 and $ nil incurred in the allowance for doubtful accounts for the years
ended December 31, 2023 and 2022, respectively.

 Inventories

 Inventories
consisting of finished goods are stated at the lower of cost or market value. The Company used the weighted average cost method of accounting
for inventory. Inventories on hand are evaluated on an on-going basis to determine if any items are obsolete, spoiled, or in excess of
future demand. The Company provides impairment that is charged directly to cost of revenues when it has been determined the product is
obsolete, spoiled, and the Company will not be able to sell it at a normal profit above its carrying cost. The Company's primary
products are alcoholic beverages and water. The selling price of alcoholic beverages tends to increase over time, however, there are
circumstances where alcoholic beverages may be subject to spoilage if stored for prolong periods of time.

 Property
and equipment, net

 Property
and equipment is carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the
straight-line method. Estimated useful lives of the property and equipment are as follows:

 SCHEDULE OF ESTIMATED USEFUL LIVES OF EQUIPMENT

 Categories

 Estimated
 useful life

 Office
 equipment

 3 - 20
 years

 Leasehold
 improvements

 years

 The
cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized.

 Intangible
assets, net

 Intangible
assets with definite lives are stated at cost less accumulated amortization and impairment, and consist mainly of distribution channel
that was acquired in the acquisition of Xixingdao.

 Amortization
is calculated on the straight-line basis over the following estimated useful lives:

 SCHEDULE OF ESTIMATED USEFUL LIVES OF AMORTIZATION

 Categories

 Estimated
 useful life

 Distribution
 channel

 years

 Others

 years

 Operating
leases

 The
Company recognizes its leases in accordance with ASC 842 - Leases. Under ASC 842, operating lease right-of-use ("ROU") assets
and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent
our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising
from the lease. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company's
incremental borrowing rate, on a secured basis. The lease term includes option renewal periods and early termination payments when it
is reasonably certain that the Company will exercise those rights. The initial measurement of the ROU asset is equal to the initial lease
liability plus any initial direct costs and prepayments, less any lease incentives. The Company elected the short-term lease exemption
for contracts with lease terms of 12 months or less. The Company accounts for the lease and non-lease components of its leases as a single
lease component. Lease expense is recognized on a straight-line basis over the lease term.

 Impairment
of long-lived assets other than goodwill

 The
Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of
assets may not be recoverable. Impairment may be the result of becoming obsolete from a change in the industry or new technologies. Impairment
is present if the carrying amount of an asset is less than its undiscounted cash flows to be generated.

 F- 11

 If
an asset is considered impaired, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value
of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

 The
Company did not recognize any impairment of long-lived assets during the year ended December 31, 2023. During the year ended December
31, 2022, the Company recognized an impairment loss on an intangible asset, distribution channel, in the amount of $ 979,428 related to
Xixingdao in view of its inability to generate sufficient operating cash flows as expected. The Company used the income approach with the multi-period excess earnings
valuation method with the assistance of a third-party valuation appraiser to estimate fair value, which requires management to make significant
estimates and assumptions related to forecasted revenues and cash flows and the discount rate.

 Goodwill

 Goodwill
represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. In
accordance with FASB ASC Topic 350, "Intangibles-Goodwill and Others", goodwill is subject to at least an annual assessment
for impairment or more frequently if events or changes in circumstances indicate that an impairment may exist, applying a fair-value
based test. Fair value is generally determined using a discounted cash flow analysis. The Company would recognize an impairment charge
for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that
reporting unit.

the years ended December 31, 2023 and 2022, the Company directly performed a quantitative assessment for goodwill impairment by
comparing the fair value of Xixingdao to its carrying value, taking into account of the impairment of intangible asset as a
triggering event. The Company used the income approach with the discounted cash flow valuation method with the assistance of a
third-party valuation appraiser to estimate fair value, which requires management to make significant estimates and assumptions
related to forecasted revenues and cash flows and the discount rate. As a result, the impairment loss on goodwill of $ 444,012 and
$ 863,833
was recognized during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, the balance of goodwill is
$ nil.

 Revenue
recognition

 The
Company follows the guidance of ASC 606, revenue from contracts with customers is recognized using the following five steps:

 1.

 Identify
 the contract(s) with a customer;

 2.

 Identify
 the performance obligations in the contract;

 3.

 Determine
 the transaction price;

 4.

 Allocate
 the transaction price to the performance obligations in the contract; and

 5.

 Recognize
 revenue when (or as) the entity satisfies a performance obligation.

 Under
Topic 606, revenues are recognized when the promised products have been confirmed of delivery or services have been transferred to the
consumers in amounts that reflect the consideration the customer expects to be entitled to in exchange for those services. The Company
presents value added taxes ("VAT") as reductions of revenues. The Company recognizes revenues net of value added taxes ("VAT")
and relevant charges.

 We
generate revenue primarily from the sales of liquor, water, water purifier and other products directly to agents, wholesalers and end
users, with majority of sales transactions were conducted offline. We recognize product revenue at a point in time when the control of
the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or
delivered to our customers. We account for shipping and handling fees as a fulfillment cost.

 F- 12

 The
following table provides information about disaggregated revenue based on revenue by product types:

 SCHEDULE OF DISAGGREGATION REVENUE

 2023

 2022

 For the year ended
 December 31,

 2023

 2022

 Sales of liquor

 $
 2,594,630

 $
 3,875,500

 Sales of water

 883,179

 3,743,146

 Sales of water purifier

 552,973

 1,197,942

 Others

 205,783

 417,491

 Total

 $
 4,236,565

 $
 9,234,079

 Contract
liabilities

 Contract
liabilities consist mainly of customer advances. On certain occasions, the Company may receive prepayments from downstream retailers
or wholesales customers for wines, water and other products prior to them taking possession of the Company's products. The Company
records these receipts as customer advances until the control of the products has been transferred the customers. As of December 31,
2023 and December 31, 2022, the Company had customer advances of $ 1,364,260 and $ 139,334, respectively. During the years ended December
31, 2023 and 2022, the Company recognized $ 79,685 and $ 332,806, respectively, of customer advances in the opening balance.

 Sales
and distribution expenses

 Sales
and distribution expenses amounted to $ 57,422 and $ 61,047 for the years ended December 31, 2023 and 2022, respectively. Selling and distribution
costs are expensed as incurred and included in selling expenses.

 General
and administrative expenses

 General
and administrative expenses consist primarily of salary and welfare for general and administrative personnel, rental expenses, entertainment
expenses, general office expenses and professional service fees.

 Value-added
taxes

 Revenue
is recognized net of value-added taxes ("VAT"). The VAT is based on gross sales price and VAT rates applicable to the Company
is 13 %. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT
liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is
recorded as VAT recoverable if input VAT is larger than output VAT. For entities that are qualified for VAT small taxpayers, entities
are allowed to enjoy preferential tax rate from 3 % to 1.5 % for the period from January 1, 2023 to December 31, 2023. All of the VAT returns
filed by the Company's subsidiaries in the PRC, have been and remain subject to examination by the PRC tax authorities for five
years from the date of filing. VAT payables are included in accrued liabilities.

 Income
taxes

 The
Company followed the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes, or ASC 740. Under this
method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets
and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company
recorded a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not
that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized
in tax expense in the period that includes the enactment date of the change in tax rate.

 The
Company accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties related to unrecognizable tax
benefit recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive income as income tax expense.

 Statutory
reserves

 Statutory
reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used to recover
losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe that an enterprise
operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10 %
of its profit. Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50 %
of the enterprise's PRC registered capital. The Company had $ 1,204,787 and $ 1,047,959
 to statutory reserves
as of December 31, 2023 and 2022, respectively, which were included in accumulated deficit and statutory reserves in the Company's
consolidated balance sheets.

 Earnings
(loss) per share

 The
Company computes earnings (loss) per share ("EPS") in accordance with ASC Topic 260, "Earnings per share". Basic
EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding for
the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g.,
convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented, or issuance date,
if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share)
are excluded from the calculation of diluted EPS.

 Financial
instruments

 The
Company accounts for financial instruments in accordance to ASC Topic 820, "Fair Value Measurements and Disclosures," which
requires disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, "Financial Instruments,"
which defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure
requirements for fair value measures. The carrying amounts reported in the consolidated balance sheets for financial assets and liabilities,
which primarily consist of cash and cash equivalents, accounts receivable, inventories, prepayments and other current assets, accounts
payable, accrued liabilities, income tax payable, customer advances, are a reasonable estimate of their fair values because of the short
period of time between the origination of such instruments and their expected realization and their current market rate of interest.
The three levels of valuation hierarchy are defined as follows:

 Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities
in active markets.

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

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

 F- 13

 Commitments
and contingencies

 Liabilities
for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable
that a liability has been incurred and the amount of the assessment can be reasonably estimated.

 Comprehensive
income (loss)

 Comprehensive
income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners.
Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive
income (loss) are required to be reported in a financial statement that is presented with the same prominence as other financial statements.
The Company's current component of other comprehensive income (loss) includes the foreign currency translation adjustment.

 Segment
reporting

 The
Company reports each material operating segment in accordance with ASC 280, "Segment Reporting". Operating segments are defined
as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker
is the chief executive officer. The Company has determined that it has only one operating segment.

 Significant
risk

 Currency
risk

 A
majority of the Company's expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries'
assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange
transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People's
Bank of China ("PBOC"). Remittances in currencies other than RMB by the Company in the PRC must be processed through the
PBOC or other Company foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance.

 The
Company maintains certain bank accounts in the PRC. On May 1, 2015, the PRC's new Deposit Insurance Regulation came into effect,
pursuant to which banking financial institutions, such as commercial banks, established in the PRC are required to purchase deposit insurance
for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete
protection for the Company's accounts, as its aggregate deposits are much higher than the compensation limit, which is RMB 500,000
for one bank. However, the Company believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon
in the PRC and the Company believes that those Chinese banks that hold the Company's cash and cash equivalents are financially
sound based on public available information.

 Other
than the deposit insurance mechanism in the PRC mentioned above, the Company's bank accounts are not insured by Federal Deposit
Insurance Corporation insurance or other insurance.

 Concentration
and credit risk

 Financial
instruments that potentially subject the Company to the concentration of credit risks consist of cash and short-term investments. The
maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. The Company deposits its cash
and cash equivalents with financial institutions located in jurisdictions where the subsidiaries are located. The Company believes that
no significant credit risk exists as these financial institutions have high credit quality.

 The
Company also exposures to credit risk associated with its trading and other activities is measured on an individual counterparty basis,
as well as by group of counterparties that share similar attributes. Concentrations of credit risk can be affected by changes in political,
industry, or economic factors. To reduce the potential for risk concentration, the Company generally requires payment after delivery
of the goods within 90 to 120 days. Credit limits are established and exposure is monitored in light of changing counterparty and market
conditions. For the years ended December 31, 2023 and 2022, no customer accounted for more than 10 % of the Company's total revenues
or accounts receivable. For the year ended December 31, 2023 and 2022, the Company had three and two suppliers that accounted for more
than 10 % of the Company's accounts payable and two suppliers that accounted for more than 10 % of the Company's total purchases,
respectively.

 F- 14

 Interest
rate risk

 Fluctuations
in market interest rates may negatively affect our financial condition and results of operations. The Company is exposed to floating
interest rate risk on cash deposit and floating rate borrowings, and the risks due to changes in interest rates is not material. The
Company has not used any derivative financial instruments to manage our interest risk exposure.

 Related
party transaction

 A
related party is generally defined as (i) any person that holds 10% or more of the Company's securities and their immediate families,
(ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control
with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction
is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

 Transactions
involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive,
free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related
party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations
can be substantiated.

Accounting Pronouncement

 In
June 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments – Credit Losses (Topic
326), Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 was further amended in November 2020 by ASU No. 2020-10,
Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). As a result, ASC
Topic 326, Financial Instruments – Credit Losses is effective for smaller reporting companies for fiscal years beginning after
December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU No. 2016-13 on January 1, 2023 and the
adoption did not have a material impact on the Company's consolidated financial statements.

 NOTE
3 – ACCOUNTS RECEIVABLE, NET

 Accounts
receivable consisted of the following as of December 31, 2023 and 2022:

OF ACCOUNTS RECEIVABLE

 Accounts receivable (including $ 70,710 and $ 146,087 from related parties as of December 31, 2023 and December 31, 2022, respectively)

 $
 4,837,852

 $
 4,797,564

 Less: Doubtful allowance (including $ 2,602 and $ nil from related parties as of December 31, 2023 and December 31, 2022, respectively)

 ( 1,718,960
)

 -

 Accounts receivable, net

 $
 3,118,892

 $
 4,797,564

 Allowance
for doubtful accounts movement is as follows:

OF ALLOWANCE
FOR DOUBTFUL ACCOUNTS RECEIVABLE

 2023

 2022

 Beginning balance

 $
 -

 $
 -

 Additions to allowance

 1,726,142

 -

 ( 7,182
)

 -

 Ending balance

 $
 1,718,960

 $
 -

 F- 15

 NOTE
4 – PREPAYMENTS AND OTHER CURRENT ASSETS, NET

 Prepayments
and other current assets consisted of the following as of December 31, 2023 and 2022:

OF PREPAYMENT AND OTHER CURRENT ASSETS

 2023

 2022

 Prepayments (including $ 2,769,741 and $ 2,255,288 to related parties as of December 31, 2023 and 2022, respectively)

 $
 3,995,750

 $
 3,001,866

 Other current assets

 2,330

 4,631

 Total prepayments and other current assets

 3,998,080

 3,006,497

 Less: Allowance for doubtful accounts (including $ 1,827,763 and $ 1,152,427 to related parties as of December 31, 2023 and 2022, respectively)

 ( 2,354,625
)

 ( 1,247,580
)

 Prepayments and other current assets, net

 $
 1,643,455

 $
 1,758,917

 Balance
of prepayments represented the advanced payments to suppliers including related party suppliers.

 Allowance
for doubtful accounts movement is as follows:

OF ALLOWANCE FOR DOUBTFUL ACCOUNTS

 2023

 2022

 Beginning balance

 $
 1,247,580

 $
 -

 Additions to allowance

 1,169,058

 1,284,005

 ( 62,013
)

 ( 36,425
)

 Ending balance

 $
 2,354,625

 $
 1,247,580

 NOTE
5 – DEPOSITS PAID, NET

 Deposits
paid consisted of the following as of December 31, 2023 and 2022:

OF DEPOSITS PAID

 2023

 2022

 Deposits paid (including $ 1,597,060 and $ 1,628,511 to related parties as of December 31, 2023 and 2022, respectively)

 $
 2,312,622

 $
 2,365,652

 Less: Allowance for doubtful accounts (including $ 1,060,610 and $ 870,066 to related parties as of December 31, 2023 and 2022, respectively)

 ( 1,694,166
)

 ( 1,244,350
)

 Deposits paid, net

 $
 618,456

 $
 1,121,302

 Allowance
for doubtful accounts movement is as follows:

OF ALLOWANCE FOR DOUBTFUL ACCOUNTS OF DEPOSITS PAID

 2023

 2022

 Beginning balance

 $
 1,244,350

 $
 -

 Additions to allowance

 484,800

 1,280,681

 ( 34,984
)

 ( 36,331
)

 Ending balance

 $
 1,694,166

 $
 1,244,350

 NOTE
6 – PROPERTY AND EQUIPMENT, NET

 Property
and equipment consisted of the following as of December 31, 2023 and 2022:

OF PROPERTY AND EQUIPMENT

 2023

 2022

 Office equipment

 $
 106,225

 $
 116,520

 Leasehold improvement

 114,495

 126,386

 Motor Vehicle

 32,393

 -

 Property and equipment

 253,113

 242,906

 Less: Accumulated depreciation

 ( 169,407
)

 ( 145,016
)

 Property and equipment, net

 $
 83,706

 $
 97,890

 Depreciation
expense, which was included in general and administrative expenses, for the years ended December 31, 2023 and 2022 was $ 34,332 and $ 46,344,
respectively.

 F- 16

 NOTE
7 – INTANGIBLE ASSETS

 Intangible
assets and related accumulated amortization were as follows:

 SCHEDULE OF INTANGIBLE ASSETS

 2023

 2022

 Distributor channel

 $
 3,035,029

 $
 3,117,635

 Others

 25,601

 27,809

 Total intangible assets

 3,060,630

 3,145,444

 Less: Accumulated amortization

 ( 1,982,560
)

 ( 1,822,875
)

 Less: Impairment loss

 ( 926,431
)

 ( 951,643
)

 Total

 $
 151,639

 $
 370,926

 Amortization
expense for the years ended December 31, 2023 and 2022 was $ 209,533 and $ 806,539, respectively, included in cost of revenues and general
and administrative expenses. During the years ended December 31, 2023 and 2022, the Company recognized impairment loss of $ nil and $ 979,428,
respectively.

 As
of December 31, 2023, the future estimated amortization costs for intangible assets are as follows:

OF FUTURE AMORTIZATION EXPENSES FOR DISTRIBUTION CHANNELS

 Year ending December 31,

 2023

 2024

 $
 140,523

 2025

 5,086

 2026

 5,086

 2027

 Total

 $
 151,639

 NOTE
8 - INCOME TAXES

 United
States of America

 The
Company is registered in the State of Nevada and is subject to United States of America tax law. The U.S. federal income tax rate is
 21 %.

 Seychelles

 Under
the current laws of the Seychelles, DIGLS and JJGS are registered as an international business company which governed by the International
Business Companies Act of Seychelles and there is no income tax charged in Seychelles.

 Hong
Kong

 From
year of assessment of 2018/2019 onwards, Hong Kong profit tax rates are 8.25 % on assessable profits up to HK$ 2,000,000 (approximately
$ 289,855), and 16.5 % on any part of assessable profits over HK$ 2,000,000. For the years ended December 31, 2023 and 2022, the Company
did not have any assessable profits arising in or derived from Hong Kong, therefore no provision for Hong Kong profits tax was made in
the year.

 The
PRC

 The
Company's subsidiaries are incorporated in the PRC, and are subject to the PRC Enterprise Income Tax Laws ("EIT Laws")
with the statutory income tax rate of 25 % with the following exceptions.

 F- 17

 On
January 17, 2019, the State Taxation Administration issued the notice on the scope of small-scale and low-profit corporate income tax
preferential policies of the Ministry of Finance and the State Administration of Taxation, [2019] No.13 for small-scale and low-profit
enterprises whose annual taxable income is less than RMB1,000,000 (including RMB1,000,000), approximately $142,209, their income is reduced
by 25% to the taxable income, and enterprise income tax is paid at 20% tax rate, which is essentially resulting in a favorable income
tax rate of 5%. While for the portion of annual taxable income exceeding RMB1,000,000, approximately $142,209, but not more than RMB3,000,000,
approximately $426,627, the income is reduced by 50% to the taxable income, and enterprise income tax is paid at 20% tax rate, which
is essentially resulting in a favorable income tax rate of 10%. MOF and SAT [2021] No.12 provides an enterprise income tax rate of 2.5%
on small-scale and low-profit enterprises whose annual taxable income is less than RMB1,000,000, approximately $142,209, from January
1, 2021 to December 31, 2022. MOF and SAT [2022] No.13 also provides an enterprise income tax rate of 5% on small-scale and low-profit
enterprises whose annual taxable income is more than RMB1,000,000, approximately $142,209, but less than RMB3,000,000, approximately
$426,627, from January 1, 2022 to December 31, 2024. The qualifications of small-scale and low-profit enterprises were examined annually
by the Tax Bureau. All of the Company's PRC subsidiaries met the criteria of small-scale and low-profit enterprises, except for
Xixingdao, FVT Supply Chain and FLTT.

 The
components of the income tax provision are as follows:

 SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION

 2023

 2022

 Current:

 – United States of America

 $
 31,761

 $
 ( 41,444
)

 – Seychelles

 – Hong Kong

 -

 – The PRC

 64,684

 227,924

 Current income tax expense

 Deferred

 – United States of America

 -

 -

 – Seychelles

 -

 -

 – Hong Kong

 -

 -

 – The PRC

 -

 -

 Deferred income tax expense

 Total

 $
 96,445

 $
 186,480

 A
summary of United States and foreign income (loss) before income taxes was composed of the following:

 SCHEDULE OF UNITED STATES AND FOREIGN INCOME LOSS BEFORE INCOME TAXES

 2023

 2022

 Income (loss) attributed to PRC operations

 $
 ( 3,501,303
)

 $
 ( 766,083
)

 Loss attributed to Seychelles and Hong Kong

 ( 160
)

 ( 19
)

 Loss attributed to U.S.

 ( 673,291
)

 ( 1,204,097
)

 Income (loss) before tax

 $
 ( 4,271,199
)

 $
 ( 1,970,199
)

 The
difference between the U.S. federal statutory income tax rate and the Company's effective tax rate was as follows for the years
ended December 31, 2023 and 2022:

OF EFFECTIVE INCOME TAX RATE

 2023

 2022

 U.S. federal statutory income tax rate

 21.0
 %

 21.0
 %

 Income tax difference under different tax jurisdictions

 - 0.3
 %

 - 9.3
 %

 PRC tax exemption for qualified small-scale and low-profit enterprises

 6.2

 %

 52.5
 %

 Valuation allowance on deferred income tax assets

 0.9
 %

 - 3.1
 %

 Amortization and impairment loss not deductible for tax purposes

 15.5
 %

 - 28.2
 %

 Expenses not deductible for tax purpose

 - 16.3
 %

 - 27.3
 %

 Impact of GILTI

 - 1.6
 %

 - 10.7
 %

 Others

 - 0.2
 %

 - 4.4
 %

 The Company's effective tax rate

 25.2
 %

 - 9.5
 %

 The
effective tax rate in the years presented is the result of the mix of income and loss recognized in various tax jurisdictions that apply
a broad range of income tax rates.

 The
significant components of deferred taxes of the Company are as follows:

OF COMPONENTS OF DEFERRED TAX ASSETS

 As of

 Deferred tax assets:

 Net operating loss carry forwards

 $
 -

 $
 -

 -United States

 -

 -

 -Hong Kong

 -

 -

 -PRC

 39,207

 61,762

 Gross deferred tax assets

 39,207

 61,762

 Less: valuation allowance

 ( 39,207
)

 ( 61,762
)

 Total deferred tax assets, net

 $
 -

 $
 -

 F- 18

 NOTE
9 - RELATED PARTY TRANSACTIONS

 Amounts
due to related parties as of December 31, 2023 and 2022 are as follows:

OF AMOUNT DUE FROM AND DUE TO RELATED PARTIES

 2023

 2022

 Mr. Yumin Lin

 President, Chief Executive Officer, Secretary, Director and majority shareholder

 $
 341,831

 $
 389,051

 Ms. Xiulan Zhou

 2,118

 Mr. Huagen Li

 2,254

 2,316

 Mr. Guodong Jia

 7,479

 2,342

 Mr. Hongwei Ye

 Manager of a subsidiary, Shareholder

 Mr. Anping Chen

 12,798

 1,290

 Mr. Jiangwei Jia

 10,449

 3,678

 Mr. Yuwen Li

 Vice President

 122,327

 64,924

 Ms. Lihua Li

 14,907

 -

 Shenzhen DaXingHuaShang Industry Development Ltd.

 Mr. Yumin Lin is the supervisor of Shenzhen DaXingHuaShang Industry Development Ltd.

 84,541

 86,842

 Ms. Chunxiang Zhang

 6,810

 Mr. Meng Xue

 8,204

 5,449

 Ms. Shuqin Chen

 18,171

 1,358

 Mr. Zhipeng Zuo

 10,103

 Mr. Deqin Ke

 -

 Mr. Aisheng Zhang

 28,751

 2,320

 Mr. Zhihua Liao

 9,468

 3,800

 $
 680,226

 $
 565,675

 Revenues
generated from related parties during the years ended December 31, 2023 and 2022 are as follows:

 SCHEDULE OF REVENUE GENERATED FROM RELATED PARTIES

 2023

 2022

 Mr. Kaihong Lin

 Chief Financial Officer and Treasurer

 $

 $

 Mr. Yumin Lin

 President, Chief Executive Officer, Secretary, Director and majority shareholder

 -

 Ms. Xiulan Zhou

 Manager of a subsidiary, Mr. Yumin Lin's wife

 Mr. Zihao Ye

 -

 Mr. Hongwei Ye

 Manager of a subsidiary, Shareholder

 -

 Mr. Jianglong Xiong

 -

 Dongguan Humen Shuiyan Drinking Water Store

 Ms. Shuiyan Li, a shareholder of the Company, is the controlling shareholder of Dongguan Humen Shuiyan Drinking Water Store

 37,135

 139,172

 Dongguan Huanhai Trading Co., Ltd.

 Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Huanhai Trading Co., Ltd.

 21,507

 27,522

 Dongguan Hualianguan Chemical Co., Ltd.

 Mr. Weihong Ye, a manager of a subsidiary, is the controlling shareholder of Dongguan Hualian Guanhua Gong Co., Ltd.

 14,502

 56,920

 Guangdong Yuexin Jiaotong Construction Co., Ltd.

 Mr. Naiyong Luo, a manager of a subsidiary, is the controlling shareholder of Guangdong Yuexin Jiaotong Construction Co., Ltd.

 14,329

 13,132

 Mr. Yuwen Li

 Vice President

 -

 Revenues generated from
 related parties

 $
 88,684

 $
 238,824

 F- 19

 Cost
of revenues from related parties during the years ended December 31, 2023 and 2022 is as follows:

 SCHEDULE OF COST OF REVENUES FROM RELATED PARTIES

 2023

 2022

 Dongguan Anxiang Technology Co., Ltd.

 $
 98,119

 $
 225,721

 Guangdong Jiaduonuo Shengshi Trading Co., Ltd.

 142,349

 305,645

 Dongguan Baxi Food Distribution Co., Ltd.

 104,973

 40,931

 Dongguan Dalingshan Xinwenhua Drinking Water Store

 29,630

 120,654

 Dongguan Pengqin Drinking Water Co., Ltd.

 26,330

 124,502

 Dongguan Tailai Trading Co., Ltd.

 91,664

 142,331

 Dongguan Dalingshan Runxin Drinking Water Store

 13,905

 52,825

 Dongguan Dengqinghu Drinking Water Store

 3,291

 2,799

 Dongguan City Yijia Trading Co., Ltd.

 Mr. Yongming Li, a shareholder of the Company, is the controlling shareholder of Dongguan City Yijia Trading Co., Ltd.

 98,611

 287,090

 Cost of revenues from
 related parties

 $
 608,872

 $
 1,302,498

 Purchases
from related parties during the years ended December 31, 2023 and 2022 are as follows:

 SCHEDULE OF PURCHASES FROM RELATED PARTIES

 2023

 2022

 Dongguan Anxiang Technology Co., Ltd.

 $
 97,095

 $
 211,191

 Guangdong Jiaduonuo Shengshi Tradong Co., Ltd.

 140,161

 317,023

 Dongguan Baxi Food Distribution Co., Ltd.

 104,973

 44,312

 Dongguan Dalingshan Xinwenhua Drinking Water Store

 29,630

 134,021

 Dongguan Pengqin Drinking Water Co., Ltd.

 26,330

 128,317

 Dongguan Tailai Trading Co., Ltd.

 88,783

 144,264

 Dongguan Dengqinghu Drinking Water Store

 Significantly influenced by the Company

 3,060

 3,000

 Dongguan Dalingshan Runxin Drinking Water Store

 13,905

 53,782

 Dongguan City Yijia Trading Limited

 Mr. Yongming Li, a shareholder of the Company, is the controlling shareholder of Dongguan City Yijia Trading Co., Ltd.

 94,520

 273,639

 Purchase from related
 party

 $
 598,457

 $
 1,309,549

 Due
to related parties mainly consists of borrowings for working capital purpose, the balances are unsecured, non-interest bearing and due
on demand.

 In
addition, during the years ended December 31, 2023 and 2022, these related parties paid expenses on the Company's behalf in an
amount of $ nil and $ 135,774, respectively.

 Mr.
Yuwen Li, the Vice President of the Company, authorized the Company to use trademarks that were owned by him for ten years from October
5, 2019 to October 4, 2029 at no cost.

 Also
see Note 3, 4, 5, 10 and 11 for more transactions with related parties.

 F- 20

 NOTE
10 – OPERATING LEASES

 As
of December 31, 2023, the Company has twenty-one separate operating lease agreements for three office spaces, one warehouse and seventeen
stores in PRC with remaining lease terms of from 6 months to 40 months.

 Two
of the leases described above were entered with related parties. The operating lease entered with Ms. Qingmei Lin, a related party, is
for the premises in Dongguan City, PRC. The agreement covers the period from January 1, 2019 to April 30, 2027 with the monthly rent
expense of RMB 10,000 (approximately $ 1,490). The operating lease agreement entered with Mr. Hongwei Ye, another related party, is for
the premises in Dongguan City, PRC. The agreement covers the period from October 1, 2023 to September 30, 2026 with the monthly rent
expense of RMB 960 (approximately $ 143).

 The
components of lease expense and supplemental cash flow information related to leases for the years ended December 31, 2023 and 2022 are
as follows:

 SCHEDULE OF COMPONENTS OF LEASE EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION

 Operating lease cost (included in general and administrative expenses in the Company's consolidated statements of operations) for the years ended

 Related parties

 $
 16,195

 $
 20,736

 Non-related parties

 120,907

 150,804

 Other information for the years ended

 Cash paid for amounts included in the measurement of lease obligations

 $
 147,001

 $
 172,425

 Weighted average remaining lease term (in years)

 2.33

 3.11

 Weighted average discount rate

 3.23
 %

 3.23
 %

 Maturities
of the Company's lease obligations as of December 31, 2023 are as follows:

 SCHEDULE OF MATURITIES OF LEASE OBLIGATIONS

 Year ending December 31,

 2024

 $
 142,417

 2025

 129,968

 2026

 64,206

 2027

 5,636

 Thereafter

 -

 Total lease payment

 342,227

 Less: Imputed interest

 ( 11,244
)

 Operating lease obligations

 $
 330,983

 Lease
expenses were $ 137,102 and $ 171,540 for the years ended December 31, 2023 and 2022, respectively.

 F- 21

 NOTE
11 – BANK AND OTHER BORROWINGS

 In
August 2020, the Company obtained a revolving credit line in the principal amount of RMB 910,000
(approximately $ 139,000
when borrowed) from China Construction Bank, which bears interest at 4.10 %.
The credit line is guaranteed by Xiulan Zhou, a related party, and pledged by her property. The maturity date is on August
7, 2023. As of December 31, 2023, the Company had repaid this bank loan in full to the China Construction Bank.

 In
November 2021, the Company obtained a bank loan in the principal amount of RMB 500,000
(approximately $ 79,000
when borrowed) from Shenzhen Qianhai Webank Co., Ltd. ("WeBank"), which bears interest at 3.6 %.
The maturity date is on December
11, 2021. On December 11, 2021, the Company and WeBank agreed to extend the maturity date of the loan to December
21, 2023 and increase the principal amount to RMB 500,750
(approximately $ 79,000
when borrowed) reflecting the accrued interest. The loan is guaranteed by Yumin Lin and bears interest at 10.71 %. As of December 31, 2023, the Company had repaid this bank loan in full to the WeBank.

 In
May 2022, the Company obtained a revolving credit line in the principal amount of RMB 1,000,000
(approximately $ 149,000
when borrowed) from China Construction Bank, which bears interest at 4.45 %.
The credit line is guaranteed by Xiulan Zhou, a related party. The maturity date is on May
26, 2023. As of December 31, 2023, the Company had repaid this bank loan in full to the China Construction Bank.

 In
May 2022, the Company obtained a loan in the principal amount of RMB 161,000 (approximately $ 24,000 when borrowed) from Huaneng Guicheng,
which bears interest at 11.34 %. The loan is guaranteed by Yumin Lin. The maturity date is on May 21, 2024.

 In
May 2022, the Company obtained a bank loan in the principal amount of RMB 69,000 (approximately $ 10,000 when borrowed) from WeBank, which
bears interest at 11.34 %. The loan is guaranteed by Yumin Lin. The maturity date is on May 21, 2024.

 In
July 2022, the Company obtained two loans in the principal amount of RMB 99,000 (approximately $ 15,000 when borrowed) and RMB 231,000 (approximately
$ 34,000 when borrowed) from WeBank and Guangdong Nanyue Bank Co., Ltd. ("Nanyue Bank"), respectively, which bear interest
at 14.4 %. The loans are guaranteed by Kaihong Lin. The maturity date is on July 8, 2024.

 In
July 2022, the Company obtained two loans in the principal amount of RMB 153,000 (approximately $ 23,000 when borrowed) and RMB 357,000
(approximately $ 53,000 when borrowed) from WeBank and Nanyue Bank, respectively, which bear interest at 14.4 %. The loans are guaranteed
by Falan Zhou, a manager of subsidiaries. The maturity date is on July 13, 2024.

 On
July, 2022, the Company obtained a loan in the principal amount of RMB 380,000 (approximately $ 57,000 when borrowed) from Huaneng Guicheng,
which bears interest at 12.6 %. The loan is guaranteed by Yumin Lin. The maturity date is on July 21, 2024.

 In
February 2023, the Company obtained a revolving credit line in the principal amount of RMB 465,000 (approximately $ 68,000 when borrowed)
from China Construction Bank, which bears interest at 4.00 %. The loan is guaranteed by Shuqin Chen, a related party. The maturity date
is on February 11, 2024.

 In
April 2023, the Company obtained two bank loans in the principal amount of RMB 224,000 (approximately $ 31,000 when borrowed) and RMB 96,000
(approximately $ 13,000 when borrowed) from Bank of Ningbo and WeBank, respectively, which bear interest at 12.24 %. The loans are guaranteed
by Falan Zhou, a manager of subsidiaries. The maturity date is on April 7, 2025.

 In
April 2023, the Company obtained a mortgage loan in the principal amount of RMB 195,415 (approximately $ 27,000 when borrowed) from WeBank,
which bears interest at 6.54 %. The loan is pledged with a vehicle of the Company. The maturity date is on April 10, 2028.

 In
May 2023, the Company obtained a revolving credit line in the principal amount of RMB 1,050,000 (approximately $ 146,000 when borrowed),
with Yumin Lin as a co-borrower, from China Construction Bank, which bears interest at 4.20 %. The maturity date is on May 26, 2024.

 F- 22

 In
July 2023, the Company obtained two bank loans in the principal amount of RMB 57,000 (approximately $ 8,000 when borrowed) and RMB 133,000
(approximately $ 18,000 when borrowed) from WeBank and Nanyue Bank, respectively, which bear interest at 10.44 %. The loans are guaranteed
by Falan Zhou, a manager of subsidiaries. The maturity date is on July 13, 2025.

 In
July 2023, the Company obtained a revolving credit line in the principal amount of RMB 1,040,000 (approximately $ 143,000 when borrowed)
from China Construction Bank, which bears interest at 3.70 %. The credit line is guaranteed by Xiulan Zhou, a related party, and pledged
with her property. The maturity date is on July 17, 2026.

 In
July 2023, the Company obtained a revolving credit line in the principal amount of RMB 817,000 (approximately $ 114,000 when borrowed),
with Yumin Lin as a co-borrower from China Construction Bank, which bears interest at 3.85 %. The maturity date is on July 22, 2024.

 In
November 2023, the Company obtained a bank loan in the principal amount of RMB 440,000 (approximately $ 62,000 when borrowed) from WeBank,
which bears interest at 7.92 %. The loan is guaranteed by Jianglong Xiong. The maturity date is on November 16, 2025.

 The
balance of the loans borrowed as of December 31, 2023 and 2022 was as follows:

 SCHEDULE OF BALANCE OF LOAN BORROWED UNDER CREDIT LINES

 Bank loan from the trust in PRC

 $
 20,343

 $
 60,049

 China Construction Bank

 475,121

 276,447

 Guangdong NanYue Bank

 24,164

 67,375

 WeBank

 129,396

 77,220

 Bank of Ningbo

 21,041

 -

 Aggregate outstanding principal balances

 670,065

 481,091

 Less: current portion

 458,023

 422,653

 Non-current portion

 $
 212,042

 $
 58,438

 The
total interest expense was $ 38,389 and $ 31,444 for the years ended December 31, 2023 and 2022, respectively.

 Future
minimum loan payments as of December 31, 2023 are as follows:

 SCHEDULE OF FUTURE MINIMUM LOAN PAYMENTS

 Year ending December 31,

 2024

 $
 367,178

 2025

 140,507

 2026

 154,144

 2027

 5,066

 Thereafter

 3,170

 Total

 $
 670,065

 NOTE
12 – COMMON STOCK

 Effective
on October 21, 2021, the Company has approved a reverse stock split of the Company's authorized and issued and outstanding shares
of common stock, par value $ 0.001 per share, at a ratio of 1-for-20 (the "Reverse Stock Split"). As a result of the Reverse
Stock Split, the Company's authorized shares of common stock became 150,000,000 shares. As of September 30, 2020 and immediately
prior to the Reverse Stock Split, there were 313,098,220 shares of common stock issued and outstanding. As a result of the Reverse Stock
Split, the Company has 15,655,038 shares of common stock issued and outstanding. The par value remains unchanged at $ 0.001 per share,
which resulted in a reclassification of capital from par value to additional paid-in capital in excess of par value. All share and per
share amount in the accompanying financial statement for the prior period have been retroactively adjusted to reflect the Reverse Stock
Split.

 NOTE
13 - SUBSEQUENT EVENTS

 In February 2024, the Company obtained two bank loans,
both in the principal amount of RMB 270,000 (approximately $ 38,000 when borrowed) from WeBank, which bears interest at 7.92 %. The loans
are both guaranteed by Jianglong Xiong. The maturity dates are both on February 22, 2026.

 F- 23