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 June 30, 2021and June 30, 2020

The following table sets forth certain operational data for the three months ended June 30, 2021, compared to the three months ended June 30, 2020:





                           Three months ended June 30,
                              2021               2020

Revenue                  $      305,286       $   282,165
Cost of revenue                (244,873 )        (245,176 )
Gross profit                     60,413            36,989
Operating Expenses              (10,807 )          (7,147 )
Income from operations           49,596            29,842
Income tax expense               (3,590 )             638
NET INCOME               $       46,006       $    30,480

Revenue. We generated revenues of $305,286 and $282,165 for the three months ended June 30, 2021 and 2020, respectively. The increase in revenue is attributable to the increase in market demand.

Cost of Revenue. Cost of revenue for the three months ended June 30, 2021, was $244,873, as compared to cost of revenue of $245,176 for the same period ended June 30, 2020. Cost of revenue decreased primarily as a result of the decrease in cost price.

Gross Profit. We achieved a gross profit of $60,413 and $36,989 for the three months ended June 30, 2021, and 2020, respectively. The increase in gross profit is primarily attributable to the increasing market demand.






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Operating Expenses. We incurred G&A expenses of $10,807 and $7,147 for the three months ended June 30, 2021, and 2020, respectively. The increase in G&A is primarily attributable to increase professional, administrative and other fees.

Income Tax Expense. Our income tax expenses for the three months ended June 30, 2021 was $3,590 and an income tax credit of $638 for the three months ended June 30, 2020.

Net Income. During the three months ended June 30, 2021, we incurred a net income of $46,006, as compared to net income of $30,480 for the same period ended June 30, 2020.

Comparison of the six months ended June 30, 2021and June 30, 2020





                                Six months ended June 30,
                                  2021               2020

Revenue                       $     468,173       $  400,065
Cost of revenue                    (326,555 )       (333,123 )
Gross profit                        141,618           66,942
Operating Expenses                  (19,326 )        (23,590 )
Income from operations              122,292           43,352
Income tax (expense) credit          (9,428 )            638
NET INCOME                    $     112,864       $   43,990

Revenue. We generated revenues of $468,173 and $400,065 for the six months ended June 30, 2021 and 2020, respectively. The increase in revenue is attributable to the increase in market demand.

Cost of Revenue. Cost of revenue for the six months ended June 30, 2021, was $326,555, as compared to cost of revenue of $333,123 for the same period ended June 30, 2020. Cost of revenue decreased primarily as a result of the decrease in cost price.

Gross Profit. We achieved a gross profit of $141,618 and $66,942 for the six months ended June 30, 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 $19,326 and $23,5903 for the six months ended June 30, 2021, and 2020, respectively. The decrease in G&A is primarily attributable to decrease professional, administrative and other fees.

Income Tax Expense. Our income tax expenses for the six months ended June 30, 2021 was $9,428 and an income tax credit of $638 for the six months ended June 30, 2021.

Net Income. During the six months ended June 30, 2021, we incurred a net income of $112,864, as compared to net income of $43,990 for the same period ended June 30, 2020.

Liquidity and Capital Resources





As of June 30, 2020, we had cash and cash equivalents of $697,347 and accounts
receivable of $254,347. As of December 31, 2020, we had cash and cash
equivalents of $832,151.



                                                        Six Months Ended June 30,
                                                           2021               2020

Net cash (used in) provided by operating activities $ (128,203 ) $ 34,576 Net cash used in investing activities

                 $             -       $      -
Net cash provided by financing activities             $             -       $      -





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Net Cash (Used In) Provided By Operating Activities.

For the six months ended June 30, 2021, net cash used in operating activities was $128,203 which consisted primarily of a net income of $112,864, an increase in depreciation of property, plant and equipment of $3,865, an increase in accounts receivable of $254,347, an increase in accrued expenses and other payables of $10,06 and offset by a decrease in deferred tax liabilities of $645.

For the six months ended June 30, 2020, net cash provided by operating activities was $34,576, which consisted primarily of a net income of $43,990, an increase in depreciation of property, plant and equipment of $3,866 offset by a decrease in accrued expenses and other payables of $12,642 and a decrease in deferred tax liabilities of $638.

Net Cash Used In Investing Activities.

For the six months ended June 30, 2021 and 2020, net cash used in investing activities was $0.

Net Cash Provided By Financing Activities.

For the six months ended June 30, 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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