Item
1. Description of Business
Forward-looking
Statements
This
annual report contains forward-looking statements. These statements relate to future events or our future financial performance.
In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should",
"expects", "plans", "anticipates", "believes", "estimates", "predicts",
"potential" or "continue" or the negative of these terms or other comparable terminology. These statements
are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's
actual results, levels of activity, performance or achievements to be materially different from any future results, levels of
activity, performance or achievements expressed or implied by these forward-looking statements.
Although
we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements. Except as required by applicable laws, including the securities laws of
the United States, we do not intend to update any of the forward-looking statements so as to conform these statements to actual
results.
As
used in this annual report, the terms "we", "us", "our", “the Company”, and "Yanex"
mean Yanex Group, Inc., unless otherwise indicated.
All
dollar amounts refer to US dollars unless otherwise indicated.
Overview
We
were founded in the State of Nevada on November 18, 2010. We just recently started our operations. We plan to work
in the field of concept architectural, interior design projects and related areas in Germany initially and further spread the
business in Europe and other countries. We are a development stage company. Our independent registered public accountant
has issued an audit opinion which includes a statement expressing substantial doubt as to our ability to continue as a going concern.
Our common stock trades on the OTC Bulletin Board under the symbol “YNXG.OB”.
We
do not have any subsidiaries. Our principal office is located at 18881 Von Karman Ave. Suite 1440, Irvine, California 92618.
Our telephone number is (707) 714-1088. Our fiscal year end is May 31.
We
have incurred losses since our inception. We rely upon the sale of our securities to fund our operations. We have
not generated any revenues from November 18, 2010 (date of inception) to May 31, 2015.
We
are not involved in any bankruptcy, receivership or similar proceedings.
Our
service
We
plan to commence operations in architectural field and to be responsible for the concept architectural vision of future private
and public buildings as well as municipal organized public areas. Also, we intend to work with interior design view, visualization
and renderings. We anticipate that our potential clients or client agencies will execute contracts with us regarding our
services in architectural field. We are going to work with wide range of clients from usual family which wants to upgrade
or renovate their home to city municipalities with appropriate project scale demand.
We
will create the new design view of the project and also offer an alternative choice of design view for our customers. Then,
after finishing concept of project we will develop the architectural sketches and further the blue-print documentation which are
going to include fully developed layouts, crossings and detailed information about every space of designed area. For every
project we will create 3D-models of the design object in all steps from the concept to project-off. Modeling, rendering
and final visual presentation will be included in our service. In addition, we will provide consulting to our clients during
full period of construction, materials and furniture choice and supply. We will also manage the working relationship and
communication between our clients and builders.
We
will offer the following benefits for our potential clients
:
-
High quality and fresh design view
- Complex design project from concept to author’s supervision
- Included finish –material and furniture choosing
- Good ability to work under stiff time-frame condition
Applications
We
intend to provide several basic types of work.
Architectural
projects.
In
Germany as well as in other developed countries more and more people tend to live in single family houses in suburbs. They
don’t want to live in overloaded cities anymore where they cannot get an access to sustainable transport mobility and appropriate
organized public space and green areas. World tends of modern cities are decreasing population density in core city areas
and redeveloping of suburb areas with their own commercial and small business centers (“urban sprawl”). Particularly
the trend of urban sprawl in modern cities was spotted in the “World Congress Cities for mobility” in Stuttgart (
http://www.cities-for-mobility.net/index.php?option=com_content&view=frontpage&Itemid=163)
and other institutes
from all over the world. Therefore we want to concentrate on concept architectural projects of new private and renovate
building projects with further sketches and blue-prints documentation development. Also we plan to be involved in projects
of public buildings and arenas.
Interior
design projects.
Nowadays,
just designing the new houses for the particular areas is not enough. That is why, as well as private houses creating we
will offer complex projects of interior design of most important living spaces inside the building. By our philosophy, it
is very important to suggest our clients the professional vision of living areas where they will spend their daily live. That
project usually includes blue-prints, detailed sketches, 3D-visualization, rendering, finish material and furniture choose and
construction process supervising.
Landscape
design projects.
As
well as working with private clients we will also work with more general but in the same time more complicated projects. Those
are concept landscape projects of public municipal areas, organized green spaces in the cities and municipal areas.
Competitions
It
is important to say that we intend to participate in local and international architectural and interior design competition in
order to take part in significant projects and spread the business to other part of Germany and other countries.
3D
modeling and video presentations
We
understand that it is not enough to provide just hand-drawings and written explanations of the architectural and design ideas
of our vision. Therefore in all steps of our projects we will provide fully detailed 3D-renderings of the building and designed
areas. Also for some of them we intend to make high quality video-presentations of most important areas and zones. Obviously,
those tools will help to find better-understandings between us and client in both sides and find better design solution.
Revenue
Sources
Price
of design project will depend on project scale, estimating approximately at 10% of building cost. The price of designing
work will be calculated individually.
Market
analysis
Our
initial potential market consist Baden-Wurttemberg federal state in the south of Germany. There are 22 cities with more
than 50,000 citizens in every one and more than 10,000,000 in overall. The city of Stuttgart is the main city of federal
state with sizeable potential for architectural design industry being one of the economically strongest areas in entire Europe.
Competition
Winning
customers will be critical to our ability to grow our business. We are an un-established company, have a weak competitive
position in the industry and have not yet earned any revenues. We have an operational loss of $153,218 from November 18,
2010 (date of inception) to May 31, 2015. We need capital to carry out our current business plan. We also anticipate
that we will require additional financing in order to execute our business plan. We may not have sufficient financing to
sustain our current operations. Many of the companies with whom we compete have greater financial and technical resources
than those available to us. It is uncertain whether services we offer will achieve and sustain high levels of demand and
market acceptance.
The
market competition of Baden-Wurttemberg federal state can be evaluated as a high. There are several large well-established
international architectural companies which provide similar service for large scale projects. That is why we plan to concentrate
in small and middle-scale sized projects. Our competitors include all architectural and interior design companies offering
service in both commercial and residential design throughout Germany/Europe. In order to be more or less successful in the
existing stiff condition we will provide a new vision of modern single family houses which are characterized by using brand-new
materials, environment friendly technologies and out of the ordinary appearance. Also we plan to create some typed projects
with standard type of plan layouts and number of spaces and which can be constructed in different areas with different surroundings
and which can cost much less. Finally we will make competitive price for our work in order to get more clients.
Marketing
Our Product
We
plan to market our services in Germany. Initially, our services will be promoted by our President. He will discuss
our services with his friends and business associates. The marketing and advertising will be targeted to small businesses,
builders, advertising agencies, home renovators, home owners and various sectors which have need of architectural and interior
design in Germany. Our methods of communication will include: phone calls, email, and regular mail. We will ask our
satisfied clients for referrals. We will also promote our product through word of mouth and use internet promotion tools
on Facebook and Twitter to advertise our company.
We
will market and advertise our services on our web site. We intend to attract traffic to our website by a variety of online
marketing tactics such as registering with top search engines using selected key words (meta tags) and utilizing link and banner
exchange options. We intend to promote our website by displaying it on our promotion materials.
We
also plan to attend business shows in our industry to showcase our services with a view to find new customers.
We
plan to expand our services to other countries in the future only when or if we have the available resources and growth to warrant
it. Currently this option is questionable.
Subsidiaries
As
of May 18, 2016 we do not have any subsidiaries.
Intellectual
Property
We
have not filed for any protection of our trademarks for our corporate name.
Research
and Development Expenditures
We
have not spent any amounts on research and development activities since our inception. Our planned expenditures for our
operation and exploration programs are summarized under the section of this Annual Report entitled “Management Discussion
and Analysis of Financial Condition and Results of Operations.”
Government
Regulations
We
will be required to comply with all regulations, rules and directives of governmental authorities and agencies applicable to our
industry in any jurisdiction which we would conduct activities.
US
Regulations
Our
operations are or will be subject to various types of regulation at the federal, state and local levels.
Employees
and Consultants
As
of May 31, 2015, we did not have any full time or part time employees. Our Chief Executive Officer works as a part time
consultant in the areas of business development and management, contributing approximately 25% of his time to us. We
currently engage independent contractors in the areas of accounting, legal, auditing services and corporate development.