|SEVEN STARS CLOUD GROUP, INC. filed this Form 8-K/A on 08/14/2017|
Wecast Services Group Limited
December 31, 2015 and December 31, 2016
Notes to Consolidated Financial Statements
Note 1 - Operations and significant accounting policies
Organization and description of business
Wecast Service Group Limited., formerly known as Sun Music Group Hong Kong Holdings Limited., is an investment holding company which was incorporated in Hong Kong on December 23, 2015. The registered capital is 10,000 HKD which was 100% held by Sun Seven Stars Group Ltd.
On May 26, 2016, Sun Music Group Hong Kong Holdings Ltd. changed name to Sun Video Group Hong Kong Limited. ("SVG"). On December 22, 2016, BT Capital Global Ltd., a Hong Kong company ("BT"), which was controlled by Seven Stars Cloud Group, Inc.’s ("SSC") chairman Bruno Wu, acquired 100% of SVG’s equity. SSC was formerly known as Wecast Network, Inc. On January 30, 2017, BT transferred all the equity interest of SVG to YOU On Demand (Asia) Ltd., a Hong Kong company and wholly- owned subsidiary of SSC. On March 15, 2017, SVG changed name to Wecast Service Ltd. On April 10, 2017, it renamed as Wecast Service Group Ltd. ("the Company").
On July 26, 2016, the Company purchased 100% equity interest of M.Y. Products Global Ltd., which was the wholly-owned subsidiary of Wide Angle Press Limited, a Hong Kong company and wholly- owned subsidiary of BT.
Shanghai Blue World Investment Management Consulting Ltd. ("SVG WFOE") was incorporated on October 14, 2004. The registered capital was $0.6 million, which was 100% held by Sun Media Investment Holding Ltd. On June 2, 2005, it was transferred to M.Y. Products Global Holding Ltd., which was incorporated in British Virgin Islands on March 22, 2001. On October 13, 2016, M.Y. Products Global Holding Ltd., along with its subsidiary SVG WFOE became the wholly-owned subsidiary of M.Y. Products Global Ltd.
Shanghai Wecast Supply Chain Management Ltd. ("Shanghai Wecast") was founded on March 26, 2015 with CNY 2 million registered capital. It was acquired by SVG WFOE on August 1, 2016.
On August 1, 2016, Shanghai Wecast acquired M.Y. Products, LLC ("MYP") through Vaughn Richard Miller and Long Yu. As consideration, Long Yu should maintain at least 49% ownership interest in Shanghai Wecast by contributing 1.92 million CNY capital. Furthermore, Miller would hold 20% out of his 49% equity on behalf of Long Yu as agreed.
The Group generates revenue mainly from sales of goods. The Group purchases skateboards from its suppliers and sells them through e-commence platforms, like Amazon, eBay.