These forward-looking statements include, but are not limited to, statements concerning the following:

•the impact of any economic disruptions, including inflationary pressures, or on our business and financial condition;

•our ability to maintain our business model and improve our capital and marketing efficiency;

•our ability to maintain and enhance our brand and reputation in existing markets and new market niches;

•our ability to effectively manage any future growth of our business;

•our ability to raise additional capital as needed and on affordable terms and conditions as well as to prudently use existing funding;

•our ability to improve our product/service offerings, introduce new products/services and expand into additional markets or niches within existing markers through effective marketing and sales efforts;

•our ability to compete effectively with existing competitors and new market entrants in our industry;

•our ability to engage, retain and afford qualified personnel and contractors;

•our ability to protect our and any customer data and intellectual property and pay any costs associated therewith; and

•our ability to stay in compliance with laws and regulations of China and Hong Kong SAR that currently apply or become applicable to our business in the future.

Unless the context otherwise indicates, references in this report to the terms "VEII" "the Company," "we," "our" and "us" refer to Value Exchange International, Inc. and its subsidiaries and "you" and "your" refers to recipients of this report of Form 10-Q.

Except as otherwise indicated by the context, references in this report to:

· "Company," "we," "us" and "our" are to the combined business of Value Exchange

International, Inc., a Nevada corporation, and its consolidated subsidiaries;

· "China," "Chinese" and "PRC," refer to the People's Republic of China;

· "Renminbi" and "RMB" refer to the legal currency of China;

· "U.S. dollars," "dollars" and "$" refer to the legal currency of the United

· "SEC" or "Commission" refers to the United States Securities and Exchange

· "Securities Act" refers to the Securities Act of 1933, as amended; and

· "Exchange Act" refers to the Securities Exchange Act of 1934, as amended.

History of Value Exchange International, Inc.

We are a provider of customer-centric solutions for the retail industry in China, Hong Kong SAR and Philippines. Due to impact of Coronavirus/COVID-19 pandemic and lack of adequate funding, our strategic plan to expand our business into Southeast Asia made no progress.

Industry Trends and Economic Conditions.

Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was enacted on March 27, 2020. Company has not sought and does not intend to seek any assistance under the CARES Act as of the date of this Form 10-Q report. Our operations and personnel are not based in the U.S.

History of Value Exchange Int'l (China) Limited

a) Systems maintenance and related service

b) Systems development and integration

VEI CHN Group provides value-added software, which integrates with customer owned or licensed software, and ad-hoc software development projects for other business sectors. Besides use of proprietary, custom software code, VEI CHN services may from time to time license standard third party software programs.

The following are some financial highlights for the second quarter of 2022:

· Net revenue: Our net revenues were $5,181,034 for the six months ended June 30,

2022, as compared to $4,593,767 for the same period in 2021, an increase of

· Gross profit: Gross profit for the six months ended June 30, 2022 was $

1,026,373 or 19.8% of net revenues, as compared to $1,308,589 or 28.5% of net

· Income from operations: Our income from operations totaled $163,128 for the six

months ended June 30, 2022, as compared to $200,237 for the same period in

· Net income: We had a net income of $305,673 for the six months ended June 30,

2022, compared to $325,724 for the same period in 2021, a decrease of $20,051

· Basic and diluted net income per share was $0.01 for the six months ended June

Comparison of Three Months Ended June 30, 2022 and 2021

The following tables set forth key components of our results of operations for the periods indicated, both in dollars and as a percentage of net revenues.

Profit (loss) from operations. As a result of the above, our profit from operations totaled $272,671 for the three months ended June 30, 2022, as compared to loss from operations totaled $105,144 for the same period in 2021, a change of $377,815.

Comparison of Six Months Ended June 30, 2022 and 2021

The following tables set forth key components of our results of operations for the periods indicated, both in dollars and as a percentage of net revenues.

Income tax expenses. Income taxes expenses totaled $2,162 during the six months ended June 30, 2022, as compared to $6,361 for the same period in 2021, a decrease of $4,199 or 66%.

1) A change of Accounts payable, Deferred income and Inventory increased our

operating cash balances by $472,935 , $539,568, and $211,557 respectively;

2) Net income of $305,673 for the six months ended June 30, 2022, compared to

$325,724 for the same period in 2021; and

3) A change of Accounts receivable, and Amounts due from related parties

or the estimated useful lives of

Sales revenue is recognized when all of the following have occurred: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) the ability to collect is reasonably assured.

- There is objective and reliable evidence of the fair value of the undelivered

- If the arrangement includes a general right of return relative to the delivered

item(s), delivery or performance of the undelivered item(s) is considered

Revenues of maintenance services are recognized when the services are performed in accordance with the contract term.

three months average period ended

six months average period ended

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