Forward Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology including "could", "may", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" and the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report.





Results of Operations

Comparison of the three months ended September 30, 2020 and 2019:





                                                     For Three Months Ended
                                                         September 30,
                                                       2020          2019

       Operating expense
       Selling, general and administrative expense $     76,435   $    57,683
       Total operating expense                           76,435        57,683

       Other expense:
          Interest expense                                7,454         6,848
             Total other expense                          7,454         6,848

       Net loss before income taxes                    (83,889)      (64,531)
       Income taxes                                           -             -
       Net loss                                    $   (83,889)   $  (64,531)




Revenue and Cost

We had no sales and cost for the three months ended September 30, 2020 and 2019.





Operating expenses

During the three months ended September 30, 2020, our total operating expense was $76,435, an increase of $18,752 or 33% as compared to $57,683 for the three months ended September 30, 2019. The main increase was due to partial of the audit fee for the year ended June 30, 2019 was recorded in the three months ended December 31, 2020, but the audit fee for the year ended June 20, 2020 was fully recorded in the three months ended September 30, 2020.





Net loss

For the three months ended September 30, 2020 we incurred a net loss of $83,889, as compared to a net loss of $64,531 for the three months ended September 30, 2019, an increase of $19,358 or 30%. This increase was primarily due to the increase in operating expense.

Liquidity and Capital Resources

The following table sets forth a summary of our cash flows for the periods indicated:

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                                                         For the Three Months Ended
                                                                September 30,
                                                           2020               2019

Net cash used in operating activities                  $    (33,710)        $ (27,547)
Net cash provided by financing activity                       35,090            26,971
Effect of exchange rate changes on cash and cash
equivalents                                                  (1,026)              (89)
NET CHANGE IN CASH AND CASH EQUIVALENTS                          354             (665)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD               1,351             2,603
CASH AND CASH EQUIVALENTS AT END OF PERIOD             $       1,705       $     1,938

As of September 30, 2020, we had cash of $1,705 in our bank accounts and a working capital deficit of $1,383,253.

During the three months ended September 30, 2020, we used net cash of $33,710 in operating activities, compared to net cash used of 27,547 in operating activities during the same period of 2019. The increase of $6,163 for net cash used in operating activities was mainly due to the increase in net loss and offset by the increase in the change in accrued liabilities and other payable in this period.

During the three months ended September 30, 2020, we received net cash of $35,090 from financing activity, compared to net cash received of $26,971 in financing activity during the same period of 2019. The increase of $8,119 in net cash provided by financing activity was due to the increase in proceeds received from a related party.

Our cash level increased by $354 during the three months ended September 30, 2020, compared to a decrease of $665 in the same period of 2019. The changes in cash were a result of the factors described above.

We anticipate that we will meet our ongoing cash requirements through equity or debt financing. We plan to cooperate with various individuals and institutions to acquire the financing required to produce and distribute our products and anticipate this will continue until we accrue sufficient capital reserves to finance all of our productions independently.

We intend to meet our cash requirements for the next 12 months through a combination of debt financing and equity financing and partnerships with finance groups on television and movie projects.

Critical Accounting Policies and Estimates

Please refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2020 10-K for disclosures regarding our critical accounting policies and estimates. The interim financial statements follow the same accounting policies and methods of computations as those for the year ended June 30, 2020.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.





Impact of COVID-19 Pandemic

In late January 2020, the coronavirus ("COVID-19") was rapidly evolving in China and globally led to disruptions in the business and transportation. The Chinese government implemented a series of restrictions, including lock-downs, social distancing requirements, and travel restrictions that drastically reduced traditional offline business. Considering the features of our business in the media industries, we experienced business disruption as a result of those measures to contain the COVID-19 outbreak. Since March 2020, the Chinese government has eased its COVID-19 restrictions domestically, and the Chinese domestic business started to recover. Our operations in the first quarter of 2021 was not significantly impacted by the COVID-19. However, it is not possible to determine the ultimate impact of the COVID-19 pandemic on the Company's business operations and financial results, which is highly dependent on numerous

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factors, including the duration and spread of the pandemic and any resurgence of COVID-19 in China or elsewhere, actions taken by governments, the responses of businesses and individuals to the pandemic.





Inflation

The amounts presented in the financial statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.





Audit Committee

The functions of the audit committee are currently carried out by our Board of Directors, who has determined that we do not have an audit committee financial expert on our Board of Directors to carry out the duties of the audit committee. The Board of Directors has determined that the cost of hiring a financial expert to act as a director and to be a member of the audit committee or otherwise perform audit committee functions outweighs the benefits of having a financial expert on the audit committee.

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