Zhanling International is a shell company that has lacked operations and revenue since its incorporation in 2009. The company functions as a vehicle for a reverse merger, with the primary objective of identifying and acquiring a private operating entity. Zhanling focuses its search on acquisition targets located in China, although it has not yet identified a specific business for a combination. The company maintains no active business model; instead, it incurs administrative, audit, and legal fees to maintain its corporate status and search for potential partners. The sole officer and director, YongQing Liu, holds nearly all outstanding shares and funds these ongoing costs through cash advances. Zhanling records these advances as loans or converts them into equity to settle the company's payables. Zhanling’s strategy involves completing a business combination with an operating entity to eventually generate revenue. Until a merger occurs, Zhanling depends entirely on its sole officer’s willingness to fund obligations. The company's auditors have issued a going concern qualification because the ability to continue operations relies on continued funding from related parties or securing new external financing. Zhanling recently issued a large number of shares to the director to settle prior advances, which diluted other shareholders.