Landbay Inc, a New York-based company incorporated in 2016, has released its latest Form 10-K report, detailing significant shifts in its business model and financial performance. Originally focused on trading securities and whisky, the company has transitioned to operating a furniture retail and design business, and has further expanded into the technology sector through its subsidiary Zhejiang Toumi Holding Co., Ltd. in China. This report provides a comprehensive overview of the company's financial highlights, business performance, strategic initiatives, and the challenges it faces.
Financial Highlights
- Revenue – sales: $564,781. The increase in revenue was mainly due to the start of new operations in online marketing through its new subsidiary.
- Gross profit: $56,611. Achieved from the sale of network equipment and providing online data marketing services.
- Loss from operations: $(50,127). The increase in operating expenses was due to increased professional fees.
- Net loss: $(53,100). The increase in net loss was mainly due to a decrease in nonrecurring disposal gain on fixed assets that occurred in 2024, and an increase in operating expenses.
- Loss per share, basic and diluted: $(0.00). Reflects the net loss per share for the reporting period.
Business Highlights
- Company Overview: Landbay Inc has shifted its business focus from trading securities and whisky to operating a furniture retail and design business in New York. The company has also expanded into the technology sector through its subsidiary Zhejiang Toumi Holding Co., Ltd., established in Hangzhou, China.
- Change in Control: Significant changes in control occurred with Northern Ifurniture Inc acquiring a majority stake in 2019, followed by Chunyang Liu acquiring a controlling interest in 2024, leading to a complete overhaul of the management team.
- Subsidiary Operations: Zhejiang Toumi, a wholly-owned subsidiary, focuses on technical consulting, technology development, software development, and electronic product sales. It generated net revenue of $564,781 for the year ended March 31, 2025, primarily from network equipment sales and online data marketing services.
- Product Offerings: The company offers intelligent data-driven marketing services and customized technology development services. These services include programmatic advertising, content marketing, and the development of custom digital solutions like CRM, ERP, and BI systems.
- Sales and Marketing Strategy: Landbay Inc employs a consultative sales approach, leveraging digital channels, industry events, and partner ecosystems to generate leads and enhance brand recognition. The company focuses on understanding client needs and tailoring solutions to meet those needs.
- Competitive Landscape: The company operates in a competitive environment with both traditional digital marketing agencies and emerging data-tech platforms. Its competitive edge lies in integrating marketing strategy with advanced data technology to deliver measurable outcomes.
- Regulatory Compliance: Landbay Inc complies with data privacy and cybersecurity regulations in China, including the Personal Information Protection Law and the Cybersecurity Law, ensuring that its data practices align with legal requirements.
- Future Outlook: The company plans to launch a live software service business through Zhejiang Toumi, although technical issues have delayed the initial launch scheduled for August 2024. The company is focused on improving business profitability and generating sufficient cash flow to meet operational needs.
Strategic Initiatives
- Business Focus Shift: Landbay Inc has shifted its business focus from trading securities and whisky to operating a furniture retail and design business in New York, and further expanded into the technology sector by establishing a wholly owned subsidiary, Zhejiang Toumi Holding Co., Ltd., in China. This subsidiary is aimed at launching a live software service business, although technical issues have delayed its launch.
- Acquisitions: The company acquired 100% ownership of Zhejiang Lanwan Biotechnology Co., Ltd. through its subsidiary, Zhejiang LGK.
- Capital Management: The company has faced challenges with a working capital deficiency, which was $48,450 as of March 31, 2025, compared to $97,392 the previous year. This improvement was primarily due to loan forgiveness by related parties amounting to $102,395. The company has also relied on shareholder loans for working capital, with a total of $101,437 borrowed from the President and CEO. No equity repurchases or dividends were declared, and the company does not have any equity compensation plans.
- Future Outlook: Management plans to alleviate the substantial doubt about the company's ability to continue as a going concern by improving business profitability and generating sufficient cash flow from operations. They also aim to obtain additional working capital from the majority shareholder and the President to meet anticipated cash requirements. However, there is no assurance that these plans will be sufficient to fund ongoing capital expenditures and other requirements.
Challenges and Risks
- Operational Risks: The company has undergone significant changes in its business focus, shifting from trading securities and whisky to operating a furniture retail and design business, and now to providing intelligent data-driven marketing services and customized technology development. This transition presents operational risks as the company adapts to new markets and business models. Additionally, the establishment of a wholly owned subsidiary, Zhejiang Toumi Holding Co., Ltd., in China introduces potential challenges related to managing operations across different regulatory environments.
- Financial Challenges: The company faces financial challenges, including a working capital deficiency and an accumulated deficit, which raise substantial doubt about its ability to continue as a going concern. The company has experienced negative financial trends, such as cash outflow from operating activities and operating losses. Management plans to address these issues by improving business profitability and securing additional working capital from the majority shareholder and the President of the company. However, there is no assurance that these plans will be sufficient to meet the company's ongoing capital requirements.
- Technical Delays: The company also faces operational risks related to the delayed launch of its live software service business through its subsidiary, Zhejiang Toumi, due to technical issues. This delay could impact revenue generation and market positioning.
SEC Filing: