FOVEA JEWELRY : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (form 10-Q)

The following information should be read in conjunction with (i) the financial statements of Fovea Jewelry Holdings, Ltd., a Wyoming corporation (the "Company"), and the notes thereto appearing elsewhere in this Form 10-Q together with (ii) the more detailed business information and the December 31, 2020 audited financial statements and related notes included in the Company's Annual Report on Form 10-K (File No. 000-56156; the "Form 10"), as filed with the Securities and Exchange Commission on March 26, 2021. Statements in this section and elsewhere in this Form 10-Q that are not statements of historical or current fact constitute "forward-looking" statements.

OVERVIEW

The Company is incorporated in the State of Wyoming as a result of a domestication from the State of Nevada on March 4, 2019, and has a fiscal year end of December 31.

CRITICAL ACCOUNTING POLICIES



PLAN OF OPERATION

Our plan of operations over the next 12 month period is to continue developing our website to have a fully functioning online store and sell our diamond products.

Results of Operations

Comparison of the three months ended March 31, 2021and March 31, 2020

The following table sets forth certain operational data for the three months ended March 31, 2021, compared to the three months ended March 31, 2020:

                           Three months ended
                                March 31,
                           2021          2020

Revenue                  $ 162,887     $ 117,900
Cost of revenue            (81,682 )     (87,947 )
Gross profit                81,205        29,953
Operating Expenses          (8,509 )     (16,443 )
Income from operations      72,696        13,510
Income tax expense          (5,838 )           -
NET INCOME               $  66,858     $  13,510

Revenue. We generated revenues of $162,887 and $117,900 for the three months ended March 31, 2021 and 2020, respectively. The increase in revenue is attributable to the development of new business line in healthcare supplement products to meet with the pandemic demand.

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Cost of Revenue. Cost of revenue for the three months ended March 31, 2021, was $162,887, as compared to cost of revenue of $117,900 for the same period ended March 31, 2020. Cost of revenue increased primarily as a result of the increase in our business volume.

Gross Profit. We achieved a gross profit of $81,205 and $29,953 for the three months ended March 31, 2021, and 2020, respectively. The increase in gross profit is primarily attributable to the increasing market demand.

Operating Expenses. We incurred G&A expenses of $8,509 and $16,443 for the three months ended March 31, 2021, and 2020, respectively. The increase in G&A is primarily attributable to decrease professional, administrative and other fees.

Income Tax Expense. Our income tax expenses for the three months ended March 31, 2021 and 2020 was $5,838 and $0, respectively.

Net Income. During the three months ended March 31, 2021, we incurred a net income of $66,858, as compared to net income of $13,510 for the same period ended March 31, 2020.

Liquidity and Capital Resources

As of March 31, 2020, we had cash and cash equivalents of $46,755 and accounts
receivable of $543,639. As of December 31, 2019, we had cash and cash
equivalents of $31,380.



                                              Three Months Ended
                                                   March 31,
                                               2021          2020

Net cash provided by operating activities $ 68,473 $ 2,907 Net cash used in investing activities $ - $ - Net cash provided by financing activities $ - $ -

Net Cash Provided By Operating Activities.

For the three months ended March 31, 2021, net cash provided by operating activities was $68,473 which consisted primarily of a net income of $66,858, an increase in depreciation of property, plant and equipment of $1,934 offset by a decrease in deferred tax liabilities of $319.

For the three months ended March 31, 2020, net cash provided by operating activities was $2,907, which consisted primarily of a net income of $13,510, an increase in depreciation of property, plant and equipment of $1,930 offset by a decrease in accrued expenses and other payables of $12,533.

Net Cash Used In Investing Activities.

For the three months ended March 31, 2021 and 2020, net cash used in investing activities was $0.

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Net Cash Provided By Financing Activities.

For the three months ended March 31, 2021 and 2020, net cash provided by financing activities was $0.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Subsequent Events

None through the date of this filing.

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