Overview



General

The Company (formerly known as Soltrest Inc.) was incorporated on March 14, 2018 in the State of Nevada. We have never been involved in any reclassification, merger, consolidation, purchase or sale of a significant amount of assets, nor have we ever declared bankruptcy, been in receivership, or been involved in any legal action or proceedings. Since incorporation, management has developed a detailed business plan to provide customers with unique and innovative solution for their needs.

Restatement of Correction of an Error

For the year ended June 30, 2020, the Company had sales with a customer. In preparing the financial statements, management failed to identify and disclose the fact that the customer being a related party to the Company within the definition of ASC 850. The Company also failed to disclose this fact to the auditors of the Company.

Management has identified a material weakness in understanding and knowledge of US GAAP.

This Amendment No. 1 ("Amendment No. 1") to the Annual Report on Form 10-K/A amends the Annual Report on Form 10-K of Shengda Network Technology, Inc. for the fiscal year ended June 30, 2020, as filed with the Securities and Exchange Commission ("SEC") on November 13, 2020 (the "Original Filing"). Management concluded that the Original Filing, should be restated due to the missing disclosure of the related party transactions.

The financial statement misstatements reflected in the table below did not impact cash flows from operations, investing, or financing activities in the Company's statements of cash flows for any period previously presented.





Products/Services

Description of Product or Services

The Company provides portals (similar to Amazon, Inc.) for the sale of products offered by reliable manufacturers and merchants at competitive prices. Products run the gamut from electronics to daily consumable products, food and clothing.





8

Target Market and Clients/potential Clients

Our current target market is China. The products supplied through our channels are high-quality and and readily available products offered by a significant number of registered companies to members on our sales portals. At this date, we have over four million registered members. We also do online market promotion through our online shopping malls and membership networks, word of mouth and social media such as WeChat. We also intend to offer products through offline stores and customer service centers. It is our goal to build the strongest Internet shopping channel in China.

During the initial phase of our development, our main target clients are individual users that browse internet on a daily basis. In Phase 2 of our business development, we plan to provide services and product to small size companies. Finally, if we see success with smaller companies, we would then intend to offer our products to medium sized corporations.

An important part of our strategy is to address cybersecurity issues suffered by our target customers.





Source of revenue

We have identified three main marketing client groups associated with the various streams of revenue:

Source #1 - Individual PC or other internet enabled device users with WebMall Sales and Service; Today several billion people use personal computers or other internet enabled devices. Capturing a small sector of this user population could allow us to sell our products and services at a very attractive and affordable prices.

Source #2 - Small companies.

Source #3 - Medium sized companies

Competition and Competitive Strategy

Our goal is to fulfill a specific niche in the market and specialize on limiting customer's internet cybersecurity exposure by simple and inexpensive applications with strong protections against hackers.





Competitive Advantages

We believe that our business model provides certain competitive advantages:

(1) Offering free membership to consumers who utilize our services, including preferential shipping.

(2) Offering a sharing of the economic benefits by offering discounts and rebates to regular customers.

(3) Providing superior customer services through all sales portals and physical locations.





9






Growth

In the near term, we will provide services to a variety of locales in China. Zhejiang is the center of China and we have estimated that 80% of our members are in Hubei, Jiangxi, Shanxi, Hebei, Anhui, Fujian and other provinces.

Once we have a core of business in China, we plan to expand to Southeast Asia, Europe and Latin America in over the next five to six years.

Uncertainties facing the Company

The Company has had only limited revenues as of the date of this Report.

As an early-stage company, the Company expects to experience losses in the near term. The Company needs to generate revenue or locate additional financing in order to continue its developmental plans. There is no guarantee that the Company will be able to identify sufficient numbers of customers to generate enough revenues to continue operations or proceed with developing its business in accordance with its business plan.

One of the biggest challenges facing the Company will be in securing adequate capital to fund to keep operation, including securing adequate capital to pay for operations and hiring service providers. Secondarily, a major challenge will be implementing effective sales and marketing strategies to reach the intended end customers. The Company has considered and devised its initial sales, marketing and advertising strategy; however, the Company will need to skillfully implement this strategy in order to achieve success in its business.





10






Results of Operations

Year Ended June 30, 2020 Compared to June 30, 2019

The following table summarizes the results of our operations during the fiscal years ended June 30, 2020 and 2019, respectively, and provides information regarding the dollar and percentage increase or decrease from the current 12-month period to the prior 12-month period:





                                                                                  Percentage
                                                                  Increase         Increase
          Line Item               6/30/2020      6/30/2019       (Decrease)       (Decrease)
                                 (Restated)
Revenues                         $   253,803     $    1,500     $    252,303           16,820 %
Operating expenses                    97,319         22,819           74,499              326 %
Other income                             131              -              131              100 %
Net loss                             (57,003 )      (21,319 )         35,684              167 %
Loss per share of common stock         (0.01 )        (0.00 )          (0.01 )            100 %

During the year ended June 30, 2020, we had revenues of $253,803, compared to sales of $1,500 for the year ended June 30, 2019, an increase of $252,303. The increase was mainly attributable to increased business.

Operating expenses totaled $97,319 for the year ended June 30, 2020, compared to $22,819 for the year ended June 30, 2020, an increase of $74,499. The increase was mainly attributable to increased business.

We recorded a net loss of $57,003 for the fiscal year ended June 30, 2020 as compared with a net loss of $21,319 for the fiscal year ended June 30, 2020 due primarily to an increase in operating expense.

Liquidity and Capital Resources

As of June 30, 2020, we had total assets of $4,275,455, negative working capital of $96,376 and accumulated stockholders' deficit of $80,130. Our operating activities provided $14,155 in cash for the fiscal year ended June 30, 2020, while our operations used $16,398 cash in the fiscal year ended June 30, 2019. Our revenues were $253,803 in the fiscal year ended June 30, 2020 compared to revenues of $1,500 in the fiscal year ended June 30, 2020. In the fiscal year ended June 30, 2020, we also recognized other income of $131 compared to $0 other income in the fiscal year ended June 30, 2019.

Management believes that the Company's cash on hand will be sufficient to fund all Company obligations and commitments for the next twelve months. Historically, we have depended on equity and debt capital raises to provide us with working capital as required. There is no guarantee that such funding will be available in the future and there can be no assurance that our stockholders, or any of them, will continue making loans or advances to us in the future.

At June 30, 2020, the Company had loans in the amount of $19,974 from a former related party. These advances are payable on demand.





11

Off Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity or capital expenditures or capital resources that is material to an investor in our securities.





Seasonality

Our operating results are not affected by seasonality.





Inflation

Our business and operating results are not affected in any material way by inflation.





Critical Accounting Policies

The Securities and Exchange Commission issued Financial Reporting Release No. 60, "Cautionary Advice Regarding Disclosure About Critical Accounting Policies" suggesting that companies provide additional disclosure and commentary on their most critical accounting policies. In Financial Reporting Release No. 60, the Securities and Exchange Commission has defined the most critical accounting policies as the ones that are most important to the portrayal of a company's financial condition and operating results and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The nature of our business generally does not call for the preparation or use of estimates.

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