Quarterly Report for Quarter Ending March 31, 2026 (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 six months ended March 31, 2026, 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 March 31, 2026 Compared to Three Months Ended March 31, 2025

The following table summarizes our operating results for three months ended March 31, 2026 and 2025.

		For the Three Months Ended March 31,
		2026				2025				Change
		(Unaudited)				(Unaudited)				$				%
Revenue		$	647			$	71,892			$	(71,245	)			(99	)%
Cost of revenue			368				44,878				(44,510	)			(99	)%
Gross Profit			279				27,014				(26,735	)			(99	)%
Selling, general and administrative expenses			206,395				152,280				54,115				36	%
Income (loss) from operations			(206,116	)			(125,266	)			(80,850	)			65	%
Other income(expense)			14				-				14				-
Income before provision for income taxes			(206,102	)			(125,266	)			(80,836	)			65	%
Provision for income taxes			(414	)			-				(414	)			-
Net (Loss)		$	(205,688	)		$	(125,266	)		$	(80,422	)			64	%

Tongzhilian's revenue was $ 647 during the three months ended March 31, 2026. All of our revenue was generated by our subsidiary Tongzhilian, which engaged solely in product sales throughout the quarter.

Revenue during the three months ended March 31, 2026 decrease by 99% compared to the operating revenue of $71,892 for the three months ended March 31, 2025. Recent revenue was primarily attributable to our sale of products, with 100% of our revenue, or $647, during the three months ended March 31, 2026, derived from such sales. The cost of revenue attributable to the sale of products was $368, which was our procurement cost for products sold.

For the three months ended March 31, 2026, we realized a gross profit margin of 43%, as our gross profit amounted to $279.

In the three months ended March 31, 2026, our total revenue experienced a significant decline of 97% when compared to the operating revenue of $ 24,905 recorded in the three months ended December 31, 2025. This disparity can primarily be attributed to the domestic economic slowdown, shrinking household consumption and complicated international situations, which have driven pessimistic market expectations and conservative consumer spending.

As our core business, mid-to-high-end customized travel belongs to non-essential consumption, and has been greatly impacted with weakened customer willingness and fewer intended orders. The nearly 20-day Spring Festival holiday also reduced effective operation time and hindered business progress.

Meanwhile, due to limited manpower, we focused on in-depth service and loyalty improvement for existing prepaid members, and suspended new market and customer expansion. Affected by the overlapping impacts of external consumption weakness, long holidays and internal operational adjustments, our first-quarter performance declined notably.

Operating expenses for the three months ended March 31, 2026 consisted primarily of salaries and benefits, office expenses and rentals and leases and professional fees. Our $206,395 in operating expenses during this period were primarily attributable to:

●

$15,357 in professional fees and related expenses incurred as a result of our status as a reporting company in the United States.

●

$53,154 in salaries and benefits,

●

$128,047 in office expenses.which included $79,920 represented by the fair value of 3,600,000 shares of the Company's common stock that we issued to EHCLGLOBAL in exchange for investor and public relations services.

●

$8,393 in Rentals and leases.

For the reasons described above, our net loss for the three months ended March 31, 2026 was $206,116.

Six Months Ended March 31, 2026 Compared to Six Months Ended March 31, 2025.

The following table summarizes our operating results for six months ended March 31, 2026 and 2025.

		For the Six Months Ended
		March 31,
		2026				2025				Change
		(Unaudited)				(Unaudited)				$				%
Revenue		$	25,552			$	1,094,047			$	(1,068,495	)			(98	)%
Cost of revenue			13,174				687,225				(674,051	)			(98	)%
Gross Profit			12,378				406,822				(394,444	)			(97	)%
Selling, general and administrative expenses			339,239				258,195				81,044				31	%
Income (loss) from operations			(326,861	)			148,627				(475,488	)			(320	)%
Other income(expense)			104				-				104				-
Income before provision for income taxes			(326,757	)			148,627				(475,384	)			(320	)%
Provision for income taxes			(468	)			106,900				(107,368	)			(100	)%
Net Income (Loss)		$	(326,289	)		$	41,727			$	(368,016	)			(882	)%

Tongzhilian's revenue was $25,552 during the six months ended March 31, 2026. All our revenue was generated by our subsidiary Tongzhilian, which was solely derived from product sales throughout the period.

During the six-month period ending on March 31, 2026, the revenue decreased by 98% compared to the $1,094,047 in the six-month period ending on March 31, 2025. During the six-month period ending on March 31, 2026, all of our revenue (totaling $25,552) came from product sales. The sales cost related to these product sales was $13,174, which is the cost of purchasing the sold products.

For the six months ended March 31, 2026, we realized a gross profit margin of 48%, as our gross profit amounted to $12,378.

Operating expenses for the six months ended March 31, 2026 consisted primarily of salaries and benefits, office expenses and rentals and leases and professional fees. Our $339,239 in operating expenses during this period were primarily attributable to:

●

$22,187 in professional fees and related expenses incurred as a result of our status as a reporting company in the United States.

●

$105,429 in salaries and benefits,

●

$193,974 in office expenses, including the $79,920 of stock compensation described above.

●

$16,737 in Rentals and leases.

Based on the above reasons, for the six-month period ending on March 31, 2026, our net loss was $326,289.00.

Liquidity and Capital Resources

On March 31, 2026, the Company had $1,710 in cash and cash equivalents, a decrease of $2,722 during the six months then ended. The main reason for the decrease in our cash balance was an increase of $1,036 in the balance of other receivables.

The Company had a working capital deficit of $(287,288) as of March 31, 2026. Included in total liabilities is $382,088 payable to our Chief Executive Officer and entities under her control. Excluding this related-party liability, the Company's working capital as of March 31, 2026 would have been $94,800, consisting primarily of prepayments. Accordingly, the Company is able to finance its near-term operating activities, but will need additional capital infusion to support future growth.

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. In the near term, we expect Huang Fang, our President, to continue to provide support, if needed. We do not, however, have any formal agreement with Ms. 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.

Cash Flows

The following unaudited table summarizes our cash flows for the six months ended March 31, 2026 and 2025.

		For the Six Months Ended March 31,								Change
		2026				2025				$
Net cash provided by (used in) operating activities		$	(121,861	)		$	(285.969	)		$	(54,240	)
Net cash (used in) Investing activities			-				-				-
Net cash provided by financing activities			119,084				189,300				148,177
Effect of exchange rate fluctuation on cash and cash equivalents			1,864				(24,580	)			(26,444	)
Net increase in cash and cash equivalents			(868	)			(121,249	)			120,381
Cash and cash equivalents, beginning of period			73,368				698,307				(624,939	)
Cash and cash equivalents, end of period		$	72,500			$	577,058			$	(504,558	)

During the six months ended March 31, 2026, our operations used net cash of $121,816. The main reason for the net cash outflow in the operations is that prepayments increased by $208,541, partially offset by share-based compensation expenses of $79,920, resulting in a net cash outflow from operating activities.

Our financing activities during the six months ended March 31, 2026 generated $119,083. This reflects an additional $119,083 in interest-free loans provided to the Company by our CEO, Huang Fang, and her affiliate entities. Our financing activities during the six months ended March 31, 2025 generated $189,300. This reflects an additional $189,300 in interest-free loans provided to the Company by our CEO, Huang Fang, and her affiliate entity.

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.