August 21, 2001
LARGO VISTA GROUP LTD (LGOV.OB)
Quarterly Report (SEC form 10QSB)
Item 2. Management's Discussion and Analysis
The following discussion should be read in conjunction with the Company's Consolidated Financial Statements and Notes thereto, included elsewhere within this Report.
Description of the Company
The Company is principally engaged in the resale of liquid petroleum gas (LPG) in the retail and wholesale markets in South China and in the purchase of petroleum products for delivery to the Far East. At the end of March of 2001 a decision was made to place Xinmao into liquidation. Xinmao was the principal business entity of our company. The Company is pursuing other business ventures in the Far East through its Zunyi subsidiary .
FORWARD LOOKING STATEMENTS
This Form 10-QSB contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included Herein that address activities, events or developments that the Corporation expects, believes, estimates, plans, intends, projects or anticipates will or may occur in the future, are forward-looking statements. Actual events may differ materially from those anticipated in the forward-looking statements. Important risks that may cause such a difference include: general domestic and international economic business conditions, increased competition in the Company's markets and products. Other factors may include, availability and terms of capital, and/or increases in operating and supply costs. Market acceptance of existing and new products, rapid technological changes, availability of qualified personnel also could be factors. Changes in the Company's business strategies and development plans and changes in government regulation could adversely affect the Company. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate. There can be no assurance that the forward-looking statements included in this filing will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company that the objectives and expectations of the Company would be achieved.
Results of Operations -
Revenue -
During the second three months ended June 30, 2001 the company realized $782,733 of revenue from continuing operations compared to $0 for the comparable period in the prior year. This is due to the fact that the company had discontinued operations in the prior period which did not carryforth to the current quarter. The first six month of the year reflected $1,193, 127 of revenues from continuing operations compared to $0 for the same six month period in the prior year. All of these revenues are related to the Zunyi subsidiary.
Costs and expenses
The company discontinued all of its operations with the exception of it's Zunyi subsidiary. Its costs of revenues for its continuing operation remained consistent at about 90%. Depreciation no longer became a significant factor because the company disposed of its fixed assets in connection with the liquidation of it's other subsidiaries. Indebtedness was liquidated in connection with the disposition of the companies assets consequently no interest was recorded in the second quarter of this year. Thc Company has maintained it's administrative infrastructure as it seeks new ventures in the Far East.
Liquidity and Capital Resources -
As of June 30, 2001, Largo had a deficiency in working capital of $ 323,823 compared to a deficit in working capital of $ 4,382,613 at December 31, 2000, a increase in working capital of $4,058,790. The increase in working capital was due primarily to the liquidation of liabilities in connection with the companies foreign operations.
Largo generated a cash flow deficit of $ 209,545 from operating activities. Largo met its cash requirements during the period through traditional resources.
>>>>Read: more liquidation by issuing stock for services.<<<<
While the Company's principal shareholder has in the past provided the funds necessary to meet its working capital and financing needs, additional financing is required in order to meet Largo's current and projected cash flow deficits from operations and development. The Company is seeking financing in the form of equity in order to provide the necessary working capital. The Company currently has no commitments for financing. There are no assurances Largo will be successful in raising the funds required.
The Company's independent certified public accountant has stated in his report included in the Company's December 31, 2000 Form 10-KSB, that the Company has incurred operating losses in the last two years, and that the Company is dependent upon management's ability to develop profitable operations. These factors among others may raise substantial doubt about the Company's ability to continue as a going concern.
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