What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-05-14 compared with 2025-02-14 · 88 added, 47 removed, 100 unchanged (57% of the section changed)

27 unchanged sentences

In connection with the preparation of our financial statements for

the three months ended December 31, 2024, there was no accounting estimate made which was (a) subject to a high degree of uncertainty

and (b) material to our results.

the six months ended March 31, 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

Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

The following table summarizes our operating results for three months

ended December 31, 2024 and 2023.

ended March 31, 2025 and 2024.

For the Three Months Ended

6 unchanged sentences

Net Income (Loss)

Tongzhilian’s revenue was $1,022,155 during the three months

ended December 31, 2024.

All our revenue was generated by our subsidiary Tongzhilian, which provided its cultural tourism services and

product sales throughout the year, and added hotel reservation services during the first quarter of the 2025 fiscal year.

Revenue during the three months ended December 31, 2024 increase by

725% compared to the operating revenue of $123,970 for the three months ended December 31, 2023.

Recent revenue was primarily attributable

to our sale of products, with 80% of our revenue, or $818,319, during the three months ended December 31, 2024, derived from such sales.

The cost of revenue attributable to the sale of products was $515,842, which was our procurement cost for products sold.

During the three months ended December 31, 2024, the remaining 20%

of Tongzhilian’s revenue – i.e.

Tongzhilian’s revenue was $71,892 during the three months ended

March 31, 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 March 31, 2025 decrease by 49%

compared to the operating revenue of $140,986 for the three months ended March 31, 2024.

Recent revenue was primarily attributable to

our sale of products, with 92% of our revenue, or $66,401, during the three months ended March 31, 2025, derived from such sales.

cost of revenue attributable to the sale of products was $41,264, which was our procurement cost for products sold.

During the three months ended March 31, 2025, the remaining 8% of Tongzhilian’s

revenue – i.e.

$5,491 - arose from its sale of tourism services and hotel reservation services.

of service revenue was $126,505, primarily attributable to the costs associated with engaging tour suppliers.

For the three months ended December 31, 2024, we realized a gross profit

The cost of service revenue was

$3,614, primarily attributable to the costs associated with engaging tour suppliers.

For the three months ended March 31, 2025, we realized a gross profit

margin of 38%, as our gross profit amounted to $27,014.

Operating expenses for the three months ended December 31, 2024 consisted

primarily of salaries and benefits, office expenses and professional fees.

Our $105,915 in operating expenses during this period were

primarily attributable to:

In the three months ended March 31, 2025, our total revenue experienced

a significant decline of 93% when compared to the operating revenue of $1,022,155 recorded in the three months ended December 31, 2024.

This disparity can primarily be attributed to the surge in sales of products during the three months ended December 31, 2024 in anticipation

of New Year and the Chinese Spring Festival that commenced in January.

Operating expenses for the three months ended March 31, 2025 consisted

primarily of salaries and benefits, office expenses and rentals and leases and professional fees.

Our $152,280 in operating expenses during

this period were primarily attributable to:

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

in salaries and benefits,

$28,997 in office expenses.

For the reasons described above, our net income for the three months

ended December 31, 2024 was $166,993.

in office expenses, which included $75,000 represented by the fair value of 500,000 shares of the Company’s common stock that we

issued to StockVest in exchange for investor and public relations services.

in Rentals and leases.

For the reasons described above, our net loss for the three months

ended March 31, 2025 was $125,266.

Ended March 31, 2025 Compared to Six Months Ended March 31, 2024

The following table summarizes our operating results for six months

ended March 31, 2025 and 2024.

For the Six Months Ended

Cost of revenue

Selling, general and administrative expenses

Income (lo ss) from operations

Other income(expense)

Income before provision for income taxes

Provision for income taxes

Net Income (Loss)

Tongzhilian’s revenue was $1,094,047 during the six months ended

March 31, 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 six months ended March 31, 2025 increase by 313%

compared to the operating revenue of $264,956 for the six months ended March 31, 2024.

Recent revenue was primarily attributable to our

sale of products, with 81% of our revenue, or $884,720, during the six months ended March 31, 2025, derived from such sales.

of revenue attributable to the sale of products was $557,106, which was our procurement cost for products sold.

During the six months ended March 31, 2025, the remaining 19% of Tongzhilian’s

revenue – i.e.

$209,327 - arose from its sale of tourism services and hotel reservation services.

The cost of service revenue was

$130,119, primarily attributable to the costs associated with engaging tour suppliers.

For the six months ended March 31, 2025, we realized a gross profit

margin of 37%, as our gross profit amounted to $406,822.

Operating expenses for the six months ended March 31, 2025 consisted

primarily of salaries and benefits, office expenses and rentals and leases and professional fees.

Our $258,195 in operating expenses during

this period were primarily attributable to:

$25,582 in professional fees and related expenses incurred as a result of our status as a reporting company in the United States.

$97,468 in salaries and benefits,

$116,611 in office expenses, including the $75,000 of stock compensation described above.

$17,649 in Rentals and leases.

For the reasons described above, our net income for the six months

ended March 31, 2025 was $41,727.

Liquidity and Capital Resources

On December 31, 2024, the Company had $1,022,727 in cash and cash equivalents,

an increase of $324,420 during the three months then ended.

The primary cause of the increase in our cash balance was an increase of $290,842

in the balance of our CEO’s loan to Tongzhilian.

The loan from Huang Fang, our CEO, also increased our working capital from a deficit

of $16,711 at September 30, 2024 to working capital of $116,078 at December 31, 2024.

On March 31, 2025, the Company had $577,058 in cash and cash equivalents,

a decrease of $121,249 during the six months then ended.

The primary cause of the decrease in our cash balance was an increase of $126,164

in the balance to prepaid supplier and a decrease of $219,152 in the balance of advance from customers.

The balance of the loan to the Company from Huang Fang, our CEO, increased

by $185,658 during the six months ended March 31, 2025.

Nevertheless, we improved our working capital from a deficit of $16,711 at September

30, 2024 to working capital of $76,483 at March 31, 2025 by reducing the advance from customer balance by $219,152 as our obligations

to members were settled through sales.

We anticipate that our future liquidity requirements will arise from

9 unchanged sentences

The following unaudited table summarizes our cash

flows for the three months ended December 31, 2024 and 2023.

For the Years Ended

flows for the six months ended March 31, 2025 and 2024.

For the Six Months Ended

Net cash provided by (used in) operating activities

5 unchanged sentences

Cash and cash equivalents, end of period

During the three months ended December 31, 2024, our operations provided

net cash of $58,671.

The primary factors contributing to this increase in cash was our net income for the quarter.

These benefits were

partially offset, however, by the effects of a membership program that we initiated during the last fiscal year, in which we offered members

discounts on tours in exchange for their deposit of funds to be applied to future tours and product purchases.

At September 30, 2024 the

deposits totaled $461,946 and were recorded on our balance sheet at “Advances from Customers”.

During the three months ended

December 31, 2024, the balance of our Advances from Customers account fell by $153,915 as customers applied their deposits to the purchase

This use of prepayments to fund current sales resulted in a reduction in the cash provided by our operations during the three

months ended December 31, 2024.

Our financing activities during the three months ended December 31,

During the six months ended March 31, 2025, our operations used net

cash of $285,969.

The main reason for the net cash outflow in the operations is that although the business achieved a net income of $41,727,

prepayments increased by $128,098 and advance from customers decreased by $204,407 as customers applied their deposits to the purchase

Our financing activities during the six months ended March 31, 2025

generated $189,300.

This represented additional interest-free loans made by our CEO, Huang Fang, and her affiliate entity.

three months ended December 31, 2023, our financing activities generated $97,822, consisting of a $37,822 interest-free loan from Huang

Fang and her affiliate entity and a $60,000 contributed by Huang Fang to fund our shareholders’ subscriptions.

This reflects an additional $189,300 in interest-free loans provided to the Company by our CEO, Huang Fang, and her

affiliate entity.

For the six months ended March 31, 2024, our financing activities generated $154,056, consisting of a $94,056 interest-free

loan from Huang Fang and her affiliate entity and a $60,000 contributed by Huang Fang to fund our shareholders’ subscriptions.

Trends, Events and Uncertainties

37 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis