What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-20 compared with 2025-05-14 · 32 added, 76 removed, 112 unchanged (49% of the section changed)

Management’s Discussion and Analysis

of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial

Condition and Results of Operations

The following discussion and analysis of our financial condition and

24 unchanged sentences

In connection with the preparation of our financial statements for

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)

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

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

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

The following table summarizes our operating results for three months

ended March 31, 2025 and 2024.

ended June 30, 2025 and 2024.

For the Three Months Ended

7 unchanged sentences

Tongzhilian’s revenue was $82,485 during the three months ended

March 31, 2025.

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 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.

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

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.

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

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.

3 unchanged sentences

$49,122 in salaries and benefits.

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.

$5,313 in office expenses,.

$8,584 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

ended June 30, 2025 was $41,718.

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

Cost of revenue

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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

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 six months ended March 31, 2025 consisted

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.

5 unchanged sentences

$27,118 in Rentals and leases.

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

ended March 31, 2025 was $41,727.

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

ended June 30, 2025 was $9.

Liquidity and Capital Resources

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

the need to fund our growth, pay current obligations and future capital expenditures.

The primary sources of funding for such requirements

are expected to be cash generated from operations plus additional funds sourced from a public offering and/or debt financing.

term, we expect Huang Fang, our President, to continue to provide support, if needed.

We do not, however, have any formal agreement with

Huang requiring her to provide financing to the Company nor any method of enforcing our expectation.

Therefore, we can provide no

assurances that we will be able to generate sufficient cash flows from operations and/or obtain additional financing on terms satisfactory

to us, if at all.

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.

The following unaudited table summarizes our cash

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

For the Six Months Ended

flows for the nine months ended June 30, 2025 and 2024.

For the Nine Months Ended

Net cash provided by (used in) operating activities

5 unchanged sentences

Cash and cash equivalents, end of period

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

During the nine months ended June 30, 2025, our operations used net

cash of $401,448.

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

Our financing activities during the nine months ended June 30, 2025

generated $ (17,012) .

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