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 nine months ended March 31, 2021 and 2020:






                                                      For Nine Months Ended
                                                            March 31,
                                                       2021           2020

       Operating expense
       Selling, general and administrative expense  $   148,331   $    154,287
       Total operating expense                          148,331        154,287

       Other expense:
          Interest expense                               25,350         21,819
             Total other expense                         25,350         21,819

       Net loss before income taxes                   (173,681)      (176,106)
       Income taxes                                           -              -
       Net loss                                    $  (173,681)   $  (176,106)




Revenue and Cost

We had no sales and cost for the nine months ended March 31, 2021 and 2020.





Operating expense

During the nine months ended March 31, 2021, our total operating expense was $148,331, a slight decrease of $5,956 or 4% as compared to $154,287 for the nine months ended March 31, 2020. The decrease was primarily due to decrease in payroll expense.





Net loss

For the nine months ended March 31, 2021, we incurred a net loss of $173,681, as compared to a net loss of $176,106 for the nine months ended March 31, 2020, a decrease of $2,425 or 1%. This decrease was primarily due to the decrease in operating expense.

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Comparison of the three months ended March 31, 2021 and 2020:






                                                     For Three Months Ended
                                                           March 31,
                                                       2021          2020

       Operating expense
       Selling, general and administrative expense  $    35,498    $   35,846
       Total operating expense                           35,498        35,846

       Other expense:
          Interest expense                                8,733         6,299
             Total other expense                          8,733         6,299

       Net loss before income taxes                    (44,231)      (42,145)
       Income taxes                                           -             -
       Net loss                                    $   (44,231)   $  (42,145)






Revenue and Cost

We had no sales and cost for the three months ended March 31, 2021 and 2020.





Operating expense

During the three months ended March 31, 2021, our total operating expense was $35,498, a slight decrease of $348 or 1% as compared to $35,846 for the three months ended March 31, 2020. Operating expense in these two periods were relatively stable and the change was immaterial.





Net loss

For the three months ended March 31, 2021, we incurred a net loss of $44,231, as compared to a net loss of $42,145 for the three months ended March 31, 2020, an increase of $2,086 or 5%. This increase was primarily due to the increase in interest expense.

Liquidity and Capital Resources





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




                                                          For the Nine Months Ended
                                                                  March 31,
                                                            2021              2020

Net cash used in operating activities                   $   (118,297)      $ (100,951)
Net cash provided by financing activity                       118,168           94,805
Effect of exchange rate changes on cash and cash
equivalents                                                       103            5,425
NET CHANGE IN CASH AND CASH EQUIVALENTS                          (26)            (721)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                1,351            2,603
CASH AND CASH EQUIVALENTS AT END OF PERIOD              $       1,325     $      1,882

As of March 31, 2021, we had cash of $1,325 in our bank accounts and a working capital deficit of $1,506,271.

For the nine months ended March 31, 2021, we used net cash of $118,297 in operating activities, compared to net cash used of $100,951 in operating activities during the same period of 2020. The increase of $17,346 for net cash used in operating activities was mainly due to the decrease in the change in accrued liabilities and other payable in this period.

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During the nine months ended March 31, 2021, we received net cash of $118,168 from financing activity, compared to net cash received of $94,805 from financing activity during the same period in fiscal year 2020. The increase of $23,363 in net cash provided by financing activity was due to the increase in proceeds received from a related party.

Our cash level decreased by $26 during the nine months ended March 31, 2021, compared to a decrease of $721 in the same period of 2020. The change in cash was 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 nine months ended March 31, 2021 were 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 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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