King Resources, Inc.

King Resources, Inc. operates in the arts and collectibles industry through its primary operating subsidiary, Heavenly Grace Limited, which commenced operations in Hong Kong in April 2025. The global arts market annual transactional volume is estimated to be $50.1 billion for 2020 according to The Art Basel and UBS Global Art Market Report 2021, and the global collectibles market reached $370 billion in 2016 per Forbes. The collectible NFT market was approximately $13.7 million in the first half of 2020, with trading volume reaching approximately $2.5 billion in the first half of 2021 as reported by Reuters. The company sits within this landscape by leveraging blockchain and NFT technologies to create Digital Ownership Tokens (DOTs) for art and collectibles, aiming to modernize buying, collecting, and trading.

The filing does not name specific primary competitors or provide market share data. The company's stated competitive advantages include its use of blockchain and NFT technologies to create title documentation and a transparent ledger for each artwork or collectible, and its provision of authentication, valuation and certification (AVC) services, sale and purchase, hire purchase, financing, custody, security and exhibition (CSE) services. The company purchases collectibles at a discount of up to 50% of appraised value ¹ and sells them at or over the appraised valuation price.

The company generates revenue through the sale of art and collectibles, collection of transaction fees derived from secondary and subsequent sales, and future plans for platform and transaction fees from sellers on a peer-to-peer online trading platform. Revenue is transactional rather than recurring. Primary customer segments include buyers of art and collectibles, with major customers being Marvel Digital Group Limited, Mirum Digital Media Limited, and Sunny Hill Technology Limited. The company utilizes blockchain technology through the creation of Digital Ownership Tokens (DOTs) to facilitate transaction logistics.

Heavenly Grace Limited, the primary operating subsidiary, is engaged in the arts and collectibles business and operates both an online and physical arts and collectibles trading business. The company provides authentication, valuation and certification (AVC) services, sale and purchase, hire purchase, financing, custody, security and exhibition (CSE) services. The company purchases collectibles that have been appraised by market recognized professionals, acquired at a discount of up to 50% of appraised value ², primarily sourced from China and Hong Kong. The company sells collectibles at or over the appraised valuation price through its online trading platform or through third-party auction houses located in Hong Kong or France.

The company utilizes blockchain and NFT technologies to create Digital Ownership Tokens (DOTs) which serve as title documentation and a transparent ledger for each artwork or collectible. Each piece is minted into an individual DOT with embedded independently appraised valuation, a 3D rendering, a high-definition photo, an AI recognition file, and a set of legal documents. The company expects to mint DOTs on the Binance Smart Chain and the Polygon Chain. The company generally does not mint or maintain custody of DOTs or crypto assets, adopting a 'sell then mint' process where DOTs are not minted unless sold. The company does not engage in the business of purchasing, holding or trading crypto currencies and receives fiat and cash from sales.

On September 30, 2024, the company disposed of all equity interests in Powertech Management Limited and Powertech Corporation Limited, resulting in a net gain of $2,513,875 ³, and exited its former smart power supply business. On November 21, 2024, the company acquired Heavenly Grace Limited from a related party at its net carrying value of approximately $7,000 ⁴. On September 9, 2025, the company changed its name back to King Resources, Inc. and effected a 1-for-10,000 reverse stock split of its issued and outstanding Common Stock. The company issued additional shares to affected shareholders holding less than 100 shares so that each would hold 100 shares ⁵ after the reverse stock split.

The company generated revenue of $830,662 ⁶ for the year ended March 31, 2026, compared to $76,921 ⁷ for the year ended March 31, 2025. The company reported a net loss of $2,184,179 ⁸ for the year ended March 31, 2026, compared to net income of $1,948,092 ⁹ for the year ended March 31, 2025. The company had current assets of $299,364 ¹⁰ and current liabilities of $1,493,053 ¹¹ as of March 31, 2026, compared to current assets of $41,853 ¹² and current liabilities of $996,386 ¹³ as of March 31, 2025.

The company plans to expand its collectible sources worldwide as opportunity permits. The company is continuing to develop its online trading platform to incorporate P2P capabilities to allow sellers and collectors to directly engage and conduct transactions in exchange for platform and transaction fees from the sellers. The company expects its P2P development to proceed as working capital permits. The company intends to expand distribution of its products into China and other Asia markets as opportunities permit.

The company plans to open up its online trading platform to connect sellers and collectors and enable them to conduct transactions in exchange for platform and transaction fees from the sellers, without the workload of handling the selling of the collectibles. The company expects to provide several services including authentication, valuation and certification (AVC) services, hire purchase services, financing, and custody, security and exhibition (CSE) services. The company intends to introduce exhibition services to collectors and artists to organize exhibitions of artworks and collections in its gallery or other specialized art events.

The filing does not discuss margin trajectory, cost structure evolution, or efficiency targets.

The company's online trading platform is hosted in Hong Kong. The company works primarily with third-party auction houses in Hong Kong and France. The company stores underlying physical art pieces in its warehouse before DOTs are sold and has purchased insurance that covers the art pieces stored in the warehouse. The company does not discuss headcount or workforce strategy.

The company expects to finance future acquisitions through a combination of the sale of equity securities, capital leases, and short-term and long-term debts. The company does not discuss R&D spending levels, capital expenditure plans, share repurchase authorizations, or dividend policy with specific figures. The company currently intends to retain all available funds and future earnings for the operation and expansion of its business and does not anticipate declaring or paying any dividends in the foreseeable future.

The company faces structural headwinds including the risk that the PRC government could disallow its holding company structure, which may result in a material change in its operations. The company may be subject to penalties and sanctions imposed by PRC regulatory agencies if it fails to comply with rules and regulations. The company faces uncertainties with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies.

The company faces constraints including the possibility that the PRC could prevent cash maintained in Hong Kong from leaving or restrict the deployment of cash into the business or for payment of dividends. The company may be subject to PRC taxes under the PRC Enterprise Income Tax Law if classified as a 'Resident Enterprise' of China. The company faces risks from changes in Chinese internal regulatory mandates such as the M&A rules, Anti-Monopoly Law, and the Data Security Law.

The company faces material risks from its holding company structure, as investors may never directly hold equity interests in the Hong Kong subsidiary and will depend on contributions from subsidiaries to finance cash flow needs. The PRC government could disallow the holding company structure, which may result in a material change in operations and cause the value of common stock to significantly decline or become worthless. The company may be subject to PRC withholding tax at a rate of up to 10% ¹⁴ on dividends paid to overseas shareholders if classified as a PRC tax resident enterprise. The company faces risks under the Holding Foreign Companies Accountable Act, which requires the PCAOB to be permitted to inspect the issuer's public accounting firm within three years, potentially resulting in delisting if the PCAOB cannot inspect the auditor. The company's Hong Kong subsidiary may be subject to restrictions on paying dividends, and PRC regulation of loans and currency conversion may delay or prevent the company from using proceeds to fund operations.

Management's message emphasizes the company's transition from its former smart power supply business to the arts and collectibles business through the acquisition of Heavenly Grace Limited and the disposal of Powertech. The company generated revenue of $830,662 ¹⁵ and reported a net loss of $2,184,179 ¹⁶ for the year ended March 31, 2026. Management states that the company's continuation as a going concern is dependent upon improving profitability and continuing financial support from stockholders. Strategic priorities include expanding collectible sources worldwide, developing the online trading platform with P2P capabilities, and expanding distribution into China and other Asia markets as opportunities permit.