SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15 (d) of
Securities Exchange Act of 1934
For Period ended June 30, 2000
Commission File Number 0-26813
HUADING FINANCIAL NETWORK INC.
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(Exact name of registrant as specified in its charter)
NEVADA 91-1932118
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(State of Incorporation) (I.R.S. Employer Identification No.)
#908 - HSBC Building
885 West Georgia Street
Vancouver, B.C. Canada V6C 3E8
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(Address of Principal Executive Offices) (Zip Code)
(604) 687-2298
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(Registrant's telephone number, including area code)
Former name, former address, and former fiscal year if changes since last
report: Formerly known as Centrock Incorporated, former address of South 124
Wall Street, Spokane, WA 99201.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes No X *
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* The Company has been delayed in its filing of this 10-QSB due to the untimely
preparation of its financial statements as a result of its recent merger. In
addition, the Company has also not been timely in the filing of its 8-K to
reflect the audited statements of the Company subsequent to the same merger.
Indicate the number of shares outstanding of each of the issuer's classes of
common stock at the latest practicable date.
As of June 30, 2000, the registrant had 13,200,000 shares of common stock,
$.001 par value, issued and outstanding.
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HUADING FINANCIAL NETWORK INC.
(formerly Centrock Incorporated)
FORM 10-QSB
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements - Unaudited
Balance Sheets as of December 31, 1999 and June 30, 2000.
Income Statements for the three months ended June 30, 1999
and June 30, 2000, and for the period from Inception
(October 20, 1998) through June 30, 2000.
Statements of Cash Flows for the three months ended June 30,
1999 and June 30, 2000, and for the period from Inception
(October 20, 1998) through June 30, 2000.
Notes to Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Item 2. Changes in Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Submission of Matters to a Vote of Security Holders.
Item 5. Other Information.
Item 6. Exhibit and Reports on Form 8-K
Exhibit
Reports on Form 8-K
SIGNATURES
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
Huading Financial Network Inc.
Unaudited Balance Sheets
As of June 30, 1999 and June 30, 2000
June 30, June 30,
1999 2000
Current ------------ -----------
Cash $ 0 $ 225,515
Accounts Receivable - 2,438,347
Marketable Securities - 2,924,049
------------ -----------
0 5,587,911
------------ -----------
Investments - 16,288,782
Capital Assets (net) - 282,995
Start-up Costs - 511,937
------------ -----------
Total Assets 0 22,671,625
LIABILITIES
Current
Accounts payable and accrued
liabilities $ - $ 857,336
------------ -----------
- 857,336
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SHAREHOLDERS' EQUITY
Share Capital (Note 3) 5,000 21,923,949
Deficit (5,000) (109,660)
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Total Stockholders' Equity $ 0 $ 21,814,289
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Total Liabilities and Stockholders'
Equity $ 0 $ 22,671,625
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Approved on behalf of the Board:
/s/ David Yue
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David Yue, Director
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Huading Financial Network Inc.
Unaudited Income Statements
For the Three Months Ended June 30, 1999 and
June 30, 2000 and for the Period
From Inception (October 20, 1998) through June 30, 2000
Three Months Three Months Inception
Ended Ended Through
June 30, June 30, June 30,
1999 2000 2000
------------ ------------ -----------
Operating Revenues $ 0 $ 0 $ 0
Operating Expenses 0 103,660 109,660
------------ ------------ -----------
Net Income (Loss) $ 0 $ (103,660) $(109,660)
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Per Share Information:
Basic and Diluted (Loss)
per Common Share $ (0.00) $ (0.00) $ (0.00)
Weighted Average Shares
Outstanding (1) 8,000,000 8,200,000 8,041,147
(1) These figures have been adjusted to reflect the effect of the 2 1/2 to
one forward stock split, effective January 10, 2000, increasing the number of
issued and outstanding shares from 3.2 million to 8.0 million.
<PAGE>
Huading Financial Network Inc.
Statements of Cash Flows
For the Three Months Ended June 30, 1999 and
June 30, 2000 and for the Period
From Inception (October 20, 1998) through June 30, 2000
Three Months Three Months Inception
Ended Ended Through
June 30, June 30, June 30,
1999 2000 2000
------------ ------------ -----------
Net Income (Loss) $ 0 $ (103,660) $ (109,660)
------------ ------------ -----------
Adjustments to Reconcile Net
Income to Net Cash Provided
From Operating Activities:
Amortization of Start-Up
Costs 0 103,660 109,660
------------ ------------ -----------
Net Cash Provided From (Used In)
Operating Activities 0 0 0
Cash Flows From (Used In)
Investing Activities:
Organization Costs 0 (103,660) (109,660)
Cash Flows From (Used In)
Financing Activities:
Common Stock Sold for Cash 0 0 206,000
Other Cash Flows:
As a Result of Merger 0 128,175 128,175
------------ ------------- ------------
Net Increase (Decrease)
in Cash 0 25,515 225,515
Cash at Beginning of Period 0 200,000 0
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Cash at End of Period $ 0 $ 225,515 $ 225,515
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<PAGE>
Huading Financial Network, Inc.
Notes to Consolidated Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company was incorporated under the laws of the State of Nevada on
October 20, 1998, formerly as Centrock Incorporated.
The Company uses the accrual method of accounting.
Preliminary expenses represent costs incurred in the formation of the
Company are written off in this period.
2. INVESTMENTS
Investment in a wholly foreign owned enterprise in the People's
Republic of China is stated at cost.
4. SHARE CAPITAL
Authorized:
75,000,000 common shares without par value.
Common Shares Subscribed: # $
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At inception 2,000,000 -
November 1998 issued at $0.005 1,000,000 5,000
July 1999 issued at $0.005 200,000 1,000
2 1/2 to 1 forward split 4,800,000 -
Cancelled (5,000,000) -
Exchange of HFN shares 10,000,000 21,717,949
Private Placement February 2000 200,000 200,000
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Balance March 26, 2000 13,200,000 21,923,949
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4. ADMINISTRATIVE AND OPERATING EXPENSES
Communication Fees $ 77
Employment Training 1,610
Entertainment Expense 2,660
Leasing Fees 9,050
Legal 2,000
Listing Fees 10,000
Office Expense 5,768
Salaries and Benefits 19,164
Shareholders Information 40,000
Travel Expenses 14,331
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$ 104,660
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND PLAN
OF OPERATIONS
Quarter ended June 30, 2000 focused primarily on consummating the merger
between Huading Financial Network and Centrock Incorporated, a Nevada
corporation, in which Huading merged with and into Centrock, who has since
changes is name to Huading Financial Network Inc.
THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES SUCH AS THE DEPENDENCE OF THE COMPANY ON AND THE ADEQUACY
OF CASH FLOWS. THESE FORWARD-LOOKING STATEMENTS AND OTHER STATEMENTS
MADE ELSEWHERE IN THIS REPORT ARE MADE IN RELIANCE ON THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995.
Plan of Operations
The Company's continued plan of operations will evolve around the further
development and operation of their financial website, "chinahd.com," which
provides online assessments of Mainland China's stock market, financial
news, securities laws, and regulation information.
Results of Operations
As the Company was not operating during the fiscal quarter ended June 30,
1999, a comparable analysis of the two periods is not meaningful.
Total operating expenses of $103,660 for the three months ended June 30,
2000 resulted primarily from a variety of expenses in setting up the
Company's North American headquarters in Vancouver, B.C. Canada.
Huading's online trading began, on a pilot basis, at the beginning of the
year. The Company is pleased with the results to date. At present, over
twenty different securities firms online. This number is growing. It is
the Company's policy to provide this service to the securities firms for
approximately the first six months for free. This period is provided to
allow time for them to integrate their systems, to help train their own
staff, and educate their clientele to use the online system. Once this time
is up, the revenues generated from the transactions, if any, are to be
split between the securities firms and the Company. The Company expects to
be generating revenues by the end of this year.
The Company expects to continue to explore opportunities for strategic
alliances and expects to be able to announce more specific developments
within the next two quarters.
Liquidity and Capital Resources
The Company was disappointed to not have been able to close on certain
planned financing sources during the quarter ended June 30, 2000. These
negotiations did not progress as planned. The Company continues to pursue
other major funding sources expects to be able to announce more specific
developments within the next two quarters.
Management will continue to manage cash flow to conserve cash resources for
an extended period sufficient to manage cash resources for an extended
period sufficient to generate the required cash to maintain operations.
Management believes the current cash balances will be sufficient to carry
the Company for the next couple of quarters, albeit on a tight budget. The
Company feels that this time frame will allow sufficient time to raise the
necessary additional capital. Should the Company be unable to raise the
planned additional capital by the end of the year, it will have a material
negative impact on the continued operations of the Company's business.
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings.
Not applicable.
ITEM 2. Changes in Securities and Use of Proceeds.
Not applicable.
ITEM 3. Defaults Upon Senior Securities
Not applicable.
ITEM 4. Submission of Matters to a Vote of Security Holders
Not applicable.
ITEM 5. Information required in lieu of Form 8-K: None
ITEM 6. Exhibits and Reports on 8-K:
a) Exhibit #27.1, "Financial Data Schedule"
b) The Company filed a report on Form 8-K on May 24,
2000, related to the merger between Huading and
Centrock Inc.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
HUADING FINANCIAL NETWORK INC.
Dated: September 20, 2000 /s/ David Yue
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David Yue
Director
