Quarterly Report for Quarter Ending June 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of such financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses. On an ongoing basis, we evaluate these estimates, including those related to useful lives of real estate assets, bad debts, impairment, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There can be no assurance that actual results will not differ from those estimates.

Application of Critical Accounting Policies

The discussion and analysis of the Company's financial condition and results of operations is based upon its condensed consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles. The preparation of these financial statements requires us to make significant estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. These items are monitored and analyzed by management for changes in facts and circumstances, and material changes in these estimates could occur in the future. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from our estimates if past experience or other assumptions do not turn out to be substantially accurate.

In connection with the preparation of our financial statements for the nine months ended June 30, 2025, there was no accounting estimate made which was (a) subject to a high degree of uncertainty and (b) material to our results.

Results of Operations

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

The following table summarizes our operating results for three months ended June 30, 2025 and 2024.

		For the Three Months Ended
		June 30,
		2025				2024				Change
		(Unaudited)				(Unaudited)				$				%
Revenue		$	82,485			$	260,916			$	(178,431	)			(68	)%
Cost of revenue			48,453				90,569				(42,116	)			(47	)%
Gross Profit			34,032				170,347				(136,315	)			(80	)%
Selling, general and administrative expenses			75,750				71,006				75,750				107	%
Income (loss) from operations			(41,718	)			99,341				(141,059	)			(142	)%
Other income(expense)			-				-				-				0	%
Income before provision for income taxes			(41,718	)			99,341				(141,059	)			(142	)%
Provision for income taxes			-				5,662				(5,662	)			(100	)%
Net Income (Loss)		$	(41,718	)		$	93,679			$	(135,397	)			(145	)%

Tongzhilian's revenue was $82,485 during the three months ended June 30, 2025. All our revenue was generated by our subsidiary Tongzhilian, which provided its cultural tourism services, hotel reservation services and product sales throughout the period.

Revenue during the three months ended June 30, 2025 decrease by 68% compared to the operating revenue of $260,916 for the three months ended June 30, 2024.

For the three months ended June 30, 2025, we realized a gross profit margin of 41%, as our gross profit amounted to $34,147.

Operating expenses for the three months ended June 30, 2025 consisted primarily of salaries and benefits, office expenses and rentals and leases and professional fees. Our $75,750 in operating expenses during this period were primarily attributable to:

●

$12,731 in professional fees and related expenses incurred as a result of our status as a reporting company in the United States.

●

$49,122 in salaries and benefits.

●

$5,313 in office expenses,.

●

$8,584 in Rentals and leases.

For the reasons described above, our net loss for the three months ended June 30, 2025 was $41,718.

Nine Months Ended June 30, 2025 Compared to Nine Months Ended June 30, 2024.

The following table summarizes our operating results for nine months ended June 30, 2025 and 2024.

		For the Nine Months Ended
		June 30,
		2025				2024				Change
		(Unaudited)				(Unaudited)				$				%
Revenue		$	1,176,532			$	525,872			$	650,660				124	%
Cost of revenue			735,678				252,319				483,359				192	%
Gross Profit			440,854				273,553				167,301				61	%
Selling, general and administrative expenses			333,945				251,140				82,805				33	%
Income (loss) from operations			106,909				22,413				84,496				377	%
Other income(expense)			0				107				107				(100	)%
Income before provision for income taxes			106,909				22,306				84,603				379	%
Provision for income taxes			106,900				6,029				100,871				1673	%
Net Income (Loss)		$	9			$	16,277			$	(16,268	)			(100	)%

Tongzhilian's revenue was $1,176,532 during the nine months ended June 30, 2025. All our revenue was generated by our subsidiary Tongzhilian, which provided its cultural tourism services, hotel reservation services and product sales throughout the period.

Revenue during the nine months ended June 30, 2025 increase by 124% compared to the operating revenue of $525,872 for the nine months ended June 30, 2024.

For the nine months ended June 30, 2025, we realized a gross profit margin of 37%, as our gross profit amounted to $ 440,854.

Operating expenses for the nine months ended June 30, 2025 consisted primarily of salaries and benefits, office expenses and rentals and leases and professional fees. Our $333,945 in operating expenses during this period were primarily attributable to:

●

$38,313 in professional fees and related expenses incurred as a result of our status as a reporting company in the United States.

●

$146,590 in salaries and benefits.

●

$121,924 in office expenses, including the $75,000 of stock compensation described above.

●

$27,118 in Rentals and leases.

For the reasons described above, our net income for the nine months ended June 30, 2025 was $9.

Liquidity and Capital Resources

On June 30, 2025, the Company had $249,692 in cash and cash equivalents, a decrease of $448,615 during the nine months then ended.

Cash Flows

The following unaudited table summarizes our cash flows for the nine months ended June 30, 2025 and 2024.

		For the Nine Months Ended
		June 30,								Change
		2025				2024				$
Net cash provided by (used in) operating activities		$	(401,448	)		$	(45,141	)		$	(356,307	)
Net cash (used in) Investing activities			-				(3,719	)			3,719
Net cash provided by financing activities			(14,922	)			226,294				(241,216	)
Effect of exchange rate fluctuation on cash and cash equivalents			(32,245	)			(901	)			(31,344	)
Net increase in cash and cash equivalents			(448,615	)			176,533				(625,148	)
Cash and cash equivalents, beginning of period			698,307				-				698,307
Cash and cash equivalents, end of period		$	249,692			$	176,533			$	73,159

During the nine months ended June 30, 2025, our operations used net cash of $401,448.

Our financing activities during the nine months ended June 30, 2025 generated $(17,012).

Trends, Events and Uncertainties

The Company is expanding its product offerings to include more products. In addition, our marketing personnel are developing new customers with the intention of building a stable base of customers. In this manner, the Company hopes to increase sales to support the future operations and development of the Company. There is no guarantee that the Company's new strategy will be successful.

The U.S. government, including the SEC, has made statements and taken actions that have led to changes in relations between the U.S. and China, and will impact companies with connections to the United States or China. Those actions by the U.S. government included imposing several rounds of tariffs affecting certain products manufactured in China and imposing sanctions and restrictions in relation to China. Actions by the SEC included issuing statements indicating that it would make enhanced review of companies with significant China-based operations. It is unknown whether and to what extent new legislation, executive orders, tariffs, laws or regulations will be adopted, or the effect that any such actions would have on U.S.-domiciled companies with significant connections to China, our industry or on us. Any unfavorable government policies on cross-border relations, including increased scrutiny on companies with significant China-based operations, capital controls or tariffs, may affect our ability to raise capital and the market price of our shares. If any new legislation, executive orders, tariffs, laws and/or regulations are implemented, if existing trade agreements are renegotiated or if the U.S. or Chinese governments take retaliatory actions due to the recent U.S.-China tensions, such changes could have an adverse effect on our business, financial condition and results of operations, our ability to raise capital and the market price of our shares. Changes in United States and China relations and/or regulations may adversely impact our business, our operating results, our ability to raise capital and the market price of our shares.

Other than the factors listed above we do not know of any trends, events or uncertainties that have had or are reasonably expected to have a material impact on our net sales or revenues or income from continuing operations.

Recent Accounting Pronouncements

There were no recent accounting pronouncements that we expect to have a material effect on the Company's financial position or results of operations. Please refer to Note 2 of our condensed consolidated financial statements included in this quarterly report.