GLORYWIN ENTERTAINMENT GROUP, INC. Management report and analysis of the financial situation and operating results. (Form 10-Q)



The Company was incorporated in the State of Nevada on August 26, 2010 under the name of “Zippy Bags, Inc.“to ensure the retail sale of snowboard carrying bags to the general public.

After being taken over by new management the June 17, 2014the Company, through its indirectly wholly owned subsidiary, Wonderful Gate Strategy Company Limited, mainly engaged in land-based casino information technology infrastructure and sub-junket introduction service. For the sub-junket introduction service and the IT infrastructure introduction service performed, we charge 0.2% and 0.05% respectively of the total bets played by the players introduced by the casinos’ sub-junkets located in Cambodia.

On October 30, 2014the Company has filed a certificate of amendment (the “Amendment”) to its certificate of incorporation with the Secretary of State of the state of nevada to change its name to “Glorywin Entertainment Group, Inc.” in order to better reflect the direction and activities of the Company. The Company has adopted a fiscal year ending on March, 31st.

We have created a website ( which contains general information about the Company.

Based on our current operating plan, we anticipate that we will be able to generate sufficient revenue to cover our expenses for the next twelve months. Our ability to maintain sufficient liquidity depends on our ability to raise additional capital.

Recent Developments

The Company is in the process of developing mobile applications to provide games to customers where such activity is legal. The software is provided by a third party vendor who provides the online casino platform in selected markets. The development of the mobile gaming application requires the Company to customize the appearance and branding of the third-party software, and establish merchant services to accept payments and facilitate the distribution of winnings.

Player acquisition is a key driver of organic growth in the online gaming industry. Players are mainly acquired from affiliates for a fixed fee or a percentage of winnings based on negotiated pre-determined criteria. Affiliates are websites or individuals who attract players through various means, such as player information/interest websites, email campaigns or other relationships. The key is that payment to affiliates only takes place when the negotiated criteria are met. The criteria can be the player’s minimum deposit, level of play or income earned. The critical element is that, unlike most marketing campaigns, marketing revenue is generally predictable.

Key elements of player retention are creating exciting opportunities to maintain player interest and increase the frequency of play. Similar to land-based casino compensation programs, the tools used for this purpose include prizes, ‘free money’, opportunities to play against famous (or infamous) players and tournament qualifiers.

On January 19, 2015the Company has entered into a conditional agreement with the main shareholder of the Company, Taipan Pearl Sdn Bhd to acquire 100% of the capital of
GWIN Company Limited (“GWIN”), operator of Chetaeu De Bavet Club Co (“Chetaeu”) a land-based casino in the Kingdom of Cambodia. Under the terms of the conditional purchase agreement, the Company is entitled to 100% of the interests of the company. In return for the purchase, GWIN made a refundable deposit of $2,000,000
(“Deposit”) and will ensure the full operation of the land-based casino for a total of 12 months. When the trades achieve at least positive revenue during this 12-month period, the transaction is considered complete, with the deposit being the purchase price of the counterparty.

On February 18, 2015the Company has entered into a binding sub-contract for a value $2 million with GWIN. Pursuant to the enforceable sub-agreement, the Company would finance the construction amount and working capital for GWIN’s operations. GWIN has extensive experience in promoting gambling activities in Asia, as well as the implementation of fraud and risk control, payment processing and compliance with respect to games in particular. It is envisaged that the parties will work together in a joint venture to raise capital and contribute expertise with the aim of generating revenue, profit and returning value to shareholders.


The Company is currently finalizing the due diligence on this transaction and will incorporate as part of the due diligence an assurance that GWIN does not facilitate gambling in any jurisdiction where such activities are illegal and fully compliant with all laws relating to their current operation.

Results of operations for the three months ended June 30, 2015 and 2014


Income from $0 and $1,754,827 was recorded during the three months ended June 30, 2016 and 2015. The decrease in $1,754,827 is due to the cessation of activities

General and administrative expenses

General and administrative expenses were $24,445 for the three months ended June 30, 2016 compared to $56217 for the three months ended June 30, 2015.

Net Profit / Loss

For the above reasons, the net profit for the three months ended June 30, 2016 has been
($24,445) compared to $1,452,222a decrease of $1,476,667.


We estimate that our existing sources of cash will be sufficient to fund our operations, planned capital expenditures, working capital and other financing needs for at least the next twelve months.

The following table summarizes the total assets, accumulated deficit, shareholders’ equity and working capital at June 30, 2016.

                             June 30, 2016       June 30, 2015
Total Assets                $           252     $     1,644,412

Accumulated profit (loss) ($1,988,258) $2,652,074

Stockholders' Equity        $       (57,643 )   $       719,195

Net Working Capital         $       (57,643 )   $       719,195

Net cash from operating activities amounted to ($188) in the three months ended June 30, 2016.

Meeting our cash obligations for the next twelve months

Our plan to meet our cash requirements for the next twelve months is to generate revenue through the introduction of junket operations and technical services.


The rate of inflation has had little impact on the Company’s results of operations and is not expected to have a material impact on continuing operations.

Off-balance sheet arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or our capital resources that is material to investors.


Critical Accounting Policies

We have identified the policies described below as essential to our business activities and to understanding our results of operations. The list is not intended to be an exhaustive list of all of our accounting policies. In many cases, the accounting treatment for a particular transaction is specifically dictated by generally accepted accounting principles in United States, without the need for management judgment in their application. The impact and any associated risks related to these policies on our business activities are discussed in the MD&A or operating plan where these policies affect our reported and expected financial results. Note that our preparation of financial statements requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amounts of income and expenses. during the reporting period. period. There can be no assurance that actual results will not differ from these estimates.

Revenue Recognition

Revenue from service contracts is recognized as the services are rendered if collection is reasonably assured.

The company is engaged in the service of introducing sub-junkets and an information technology (IT) company to land-based casinos and receives an agreed percentage of total wagers as revenue. For the sub-junket introduction service and the IT infrastructure introduction service performed, the company charges 0.2% and 0.05%, respectively, of the total bets played by the players introduced by the sub-junkets. casino junkets located in Cambodia.

Recently issued accounting pronouncements

For more information about the new accounting pronouncements and the potential impact on our consolidated financial statements, see Note 3 in the Notes to the Consolidated Financial Statements in our Form 10-K for the year ended March 31, 2016.

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