Overview

The Company has identified the global tourism market as its first investment target. As it currently exists, the tourism industry is fragmented into various geographic regions. We believe that approaching this industry from a global perspective is an emerging market with tremendous growth potential. We plan to set up and/or acquire offices in various regions of the world and through them, develop the local tourism industry and expand our local tourism market. Ultimately, we plan to unify and manage our regional offices and to market our global services through the internet.

We have set up three subsidiaries, Airchn Travel Global, Inc. in Seattle, Washington ("ATGI") and Airchn Travel (Canada) Inc., in Vancouver, British Columbia in Canada ("ATCI") and Airchn Travel (Beijing) Inc. in Beijing, China ("ATBI"). Our Beijing office has been closed as of June 30, 2021 due to lack of business and to reduce operating costs.

We are engaged in services such as airline and cruise ticketing, customized and packaged tours, travel blogs, travel magazines, sales of travel related merchandise, group hotel reservations, business travel arrangements, conference travel arrangements, car rental and admission ticket sale for local tourist attractions.

We will continue to explore other business growth opportunities, regardless of industry, in order to diversify our business operations and investments.

On January 17, 2012, the Company filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State of Delaware to change its name from News of China, Inc. to W&E Source Corp. In connection the name change, our listing symbol also changed from "NWCH" to "WESC." In addition, the Company also increased its total authorized shares to 500,000,000 to anticipate future financing through the issuance of our equity or convertible debt to finance our business.

Effective January 1, 2018, the Company adopted the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. The implementation of ASC 606 did not have a material impact on the Company's consolidated financial statements. ASC 606 create a five-step model that requires entities to exercise judgement when considering the terms of contract, which includes (1) identifying the contracts or agreement with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligation, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.


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COVID-19

In December 2019, a novel strain of coronavirus, COVID-19, was first detected in Wuhan, China, and has since spread to other regions, including Europe and North America. On March 11, 2020, the World Health Organization declared that the rapidly spreading COVID-19 outbreak was a global pandemic ("COVID-19 pandemic"). In response to the pandemic, many governments around the world have implemented, and continue to implement, a variety of measures to reduce the spread of COVID-19, including travel restrictions and bans, instructions to residents to practice social distancing, quarantine advisories, shelter-in-place orders and required closures of non-essential businesses. These government mandates have forced many of the companies on whom our business relies, including hotels and other accommodation providers and airlines, to seek government support in order to continue operating, to curtail drastically their service offerings or to cease operations entirely. Further, these measures have materially adversely affected, and may further adversely affect, consumer sentiment and discretionary spending patterns, economies and financial markets, and our customers. The COVID-19 pandemic and the resulting economic conditions and government orders have resulted in a material decrease in consumer spending and an unprecedented decline in travel activities and consumer demand for related services. Our financial results and prospects are almost entirely dependent on the sale of such travel-related services. Our results for the year ended June 30, 2021 have been significantly and negatively impacted, with a material decline in gross travel bookings and total revenues as compared to the corresponding period in 2019-2020. We expect to continue to see severely reduced new travel reservation bookings as compared to 2019-2020 levels for the foreseeable future, which will have a materially adverse impact on our business, financial condition, results of operations and cash flows. Due to the uncertain and rapidly evolving nature of current conditions around the world, we are unable to predict accurately the impact that the COVID-19 pandemic will have on our business going forward. With the continued spread of COVID-19 in the United States and various other countries, we expect the pandemic and its effects to continue to have a significant adverse impact on our business for the duration of the pandemic, during any resurgences of the pandemic and during the subsequent economic recovery, which could be an extended period of time.

Results of Operations

The following summary of our results of operations should be read in conjunction with our audited financial statements for the years ended June 30, 2021 and 2020.

Years Ended June 30, 2021 and 2020:



                                          June 30, 2021     June 30, 2020
Revenues                                $             -   $           784
  Cost of revenues                                    -                 -

Expenses


  General and administrative expenses           (55,028 )         (51,286 )

  Interest expense                              (14,386 )               -
  Gain on debt settlement                        90,433                 -
  Foreign currency exchange gain (loss)           6,158            (4,657 )

Net income (loss)                       $        27,177   $       (55,159 )



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Revenues

We have generated total revenues of $Nil from operations during the year ended June 30, 2021 as compared to $784 for the same period in 2020, a decrease of $784 or 100%. The decrease was mainly due to the decrease in our travel business arrangement income caused by the COVID-19 pandemic globally in the year ended June 30, 2021.

Expenses

General and administrative expenses for the year ended June 30, 2021 was $55,028 and increased from $51,286, or 7%, compared with the year ended June 30, 2020. The increase in expenses during the current year was mainly due to an increase in legal, accounting and filing fees due to the share issuance for the debt settlement.

Net income (loss)

We had net income of $27,177 and net losses of $55,159 for the years ended June 30, 2021 and 2020, respectively, and had an accumulated deficit of $1,255,841 since the inception of our business through June 30, 2021. The increase in the net income is mainly due to the gain on debt settlement.

Liquidity and Capital Resources

Our financial condition for the years ended June 30, 2021 and 2020 are summarized as follows:

Working Capital



                      June 30, 2021     June 30, 2020
Current Assets      $         2,290   $         3,546
Current Liabilities         (36,581 )        (213,480 )
Working Capital     $       (34,291 ) $      (209,934 )

Our working capital deficiency for the year ended June 30, 2021 was significantly decreased by $175,643 compared with 2020 mainly due to a decrease in accrued liabilities due to the elimination of the debt for funds advanced for share issuance.



Cash Flows

                                        June 30, 2021     June 30, 2020

Cash used in operating activities $ (33,698 ) $ (49,459 ) Cash used in investing activities

                   -                 -
Cash provided by financing activities          32,153            49,744
Cumulative translation adjustment                 285               715
Net decrease in cash                  $        (1,260 ) $         1,000



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Cash Used in Operating Activities

For the year ended June 30, 2021, our cash used in operating activities decreased by $15,761 compared with the previous year. The decrease is mainly due to the debt settlement by share issuance during the year ended June 30, 2021 compared with the prior year.

Cash Used in Investing Activities

For the year ended June 30, 2021, no cash was used in investing activities.

Cash Provided by Financing Activities

For the year ended June 30, 2021, the Company received $32,153 proceeds from related parties, as compared with $49,744 in the previous year.

Cash Requirements

Over the next 12-months ending June 30, 2022, we anticipate that we will incur the following operating expenses:



Expense                          Amount
General and administrative     $  40,000
Professional fees                 60,000
Foreign currency exchange loss     4,000
Total                          $ 104,000

Our CEO, Hong Ba, has committed to providing our working capital requirements for the next 12 months.

There is substantial doubt about our ability to continue as a going concern as the continuation of our business is dependent upon the continued financial support from our shareholders, our ability to obtain necessary equity financing to continue operations, and achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

In addition to the issues set out above regarding our ability to raise capital, global economies are currently undergoing a period of economic uncertainty related to the COVID-19 pandemic and the tightening of credit markets worldwide. This has resulted in numerous adverse effects, including unprecedented volatility in financial markets and stock prices, slower economic activity, decreased consumer confidence, increased commodity prices, reduced corporate profits and capital spending, increased unemployment, liquidity concerns and volatile and increasing energy prices. We anticipate that the current economic conditions and the credit shortage will adversely impact our ability to raise financing. In addition, if the future economic environment continues to be less favorable than it has been in recent years, we may experience difficulty in completing our current business plan.


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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, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Recently Issued Accounting Standards

We continue to assess the effects of recently issued accounting standards. The impact of all recently adopted and issued accounting standards has been disclosed in the Footnotes to the financial statements.

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