FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact are "forward-looking statements", including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.

Forward-looking statements may include the words "may," "could," "will," "estimate," "intend," "continue," "believe," "expect" or "anticipate" or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Except for our ongoing obligation to disclose material information as required by the federal securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. Some of the key factors impacting these risks and uncertainties include, but are not limited to:





  ? our failure to obtain additional financing;
  ? our inability to continue as a going concern;
  ? the unique difficulties and uncertainties inherent in the business;
  ? local and multi-national economic and political conditions, and
  ? our common stock.

Unless expressly indicated or the context requires otherwise, The terms "HQDA", "Company", "we", "our", and "us" refer to HQDA Elderly Life Network Corp. (formerly Hartford Retirement Network Corp.), a Nevada corporation.





General

HQDA Elderly Life Network Corp. (formerly Hartford Retirement Network Corp.) ("HQDA" or the "Company") was incorporated in the State of Nevada on January 21, 2004. Our principal office is located at 372 Ziwei Road, Pudong New District Shanghai, P.R. China. Our telephone number is +86 15358018888.

The Company has not had any bankruptcy, receivership or similar proceeding since incorporation.

Our business plan is owning, leasing and/or operating senior living residences that provide seniors with a supportive, home life setting with care and services, including activities of daily living, life enrichment and health and wellness in certain cities in China. We also plan to operate a network carrier, providing scheduled air transportation to passengers, travel destination services to leisure travelers.





The Senior Living Industry

Through our newly acquired and wholly-owned subsidiary, Shanghai Hongfu Health Management Ltd., we purchased senior living facilities in April 2018, launched a senior living residences business, which, hosts to mostly men and women over the age of 50. We intend to expand the business of owning, leasing and/or operating senior living residences that will provide seniors with supportive, home life setting with care and services, including activities of daily living, life enrichment and health and wellness in China.

The senior living industry encompasses a broad spectrum of senior living service and care options, which include independent living, assisted living and skilled nursing care. Our primary focus will be on the independent living services. Independent living is designed to meet the needs of seniors who choose to live in an environment surrounded by their peers where they receive services such as housekeeping, meals and activities, but are not reliant on assistance with activities of daily living (for example, bathing, eating and dressing), although we may offer these services through contracts with third parties.

Our operating philosophy is to provide services and care which meet the individual needs of its residents, and to enhance their physical and mental well-being, thereby allowing them to live longer and to "age in place." These facilities will offer, on a 24-hour basis, personal, supportive and home health care services appropriate for their residents in a home-like setting, which allow residents to maintain their independence and quality of life. We predict that the average of the residents at our facilities will be between 55 and 70.

Our primary focus will be in China, where we intend to grow and become a leader in senior living facilities. We also will seek to develop or acquire facilities and manage or cooperate with existing facilities as well. We believe that by concentrating or "clustering" our facilities in target areas with desirable demographics, can increase the efficiency of our management resources and achieve broad economies of scale.





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The long-term care industry encompasses a wide continuum of services and residential arrangements for elderly senior citizens. Skilled nursing facilities provide the highest level of care and are designed for elderly senior citizens who need chronic nursing and medical attention and are not able to live on their own. Further, skilled nursing facilities tend to be one of the most expensive alternatives while providing elderly senior citizens with limited independence and a diminished quality of life. On the other end of the continuum is home-based care, which typically is provided in an individual's private residence. While this alternative allows the elderly individual to "age in place" in his or her home and, in certain instances, can provide most of the services available at a skilled nursing facility, it does not foster any sense of community or the ability to participate in group activities.

Assisted living facilities generally are designed to fill the gap in the middle of this continuum. Assisted living facilities have been described by the Assisted Living Federation of America ("ALFA") as providing a special combination of housing and personal, supportive and home health care services designed to respond to the individual needs of those who need, or desire help with their activities of daily living, including personal care and household management. Services in an assisted living facility are generally available 24 hours a day to meet the scheduled and unscheduled needs of residents, thereby promoting maximum dignity and independence.

The assisted living industry is highly fragmented in China. At present, the industry is characterized by participants who operate only a limited number of facilities and who frequently can offer only basic assistance with a limited number of activities of daily living. We intend to be characterized by the following: (i) the ability to offer premium accommodations and a comprehensive bundle of standard services for a single inclusive monthly fee; (ii) sophisticated, professional management structures and highly trained employees; (iii) a cost-efficient, user-specific prototype facility; and (iv) experience in providing home health care services.

Our facilities will provide services and care which are designed to meet the individual needs of its residents, enhance their physical and mental well-being and promote a supportive, independent and home-like setting. Most of our facilities will be primarily designed as premium facilities at which residents receive a comprehensive, bundled package of standard services for a single monthly fee.

We will strive to combine in our facilities the best aspects of independent living with the protection and safety of assisted living, with trained staff members who provide 24-hour care and monitoring of every resident. The senior living facilities will be designed and decorated to have a home-like atmosphere. Residents will be encouraged to furnish their rooms with personal items they have collected during their lifetime. Our senior living facilities differ from skilled nursing facilities in that our senior living facilities will not provide the more extensive, and costly, nursing and medical care found in nursing homes.





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Results of Operations



                                                   Three months ended December 31
                                                  2021           2020         Changes

Revenue                                        $   281,169     $ 352,922     $ (71,753 )

Operating costs:
Cost of food and beverages                          35,085        52,554       (17,469 )
Selling, general and administrative expenses       158,950       172,560       (13,610 )
Depreciation and amortization                       45,013        41,134         3,879
Total operating expenses                           239,048       266,248       (27,200 )
Operating income                               $    42,121     $  86,674     $ (44,553 )




                                                    Six months ended December 31
                                                 2021          2020         Changes

Revenue                                        $ 425,485     $ 508,362     $  (82,877 )

Operating costs:
Cost of food and beverages                        62,405        99,409        (37,004 )
Selling, general and administrative expenses     323,457       401,827        (78,370 )
Depreciation and amortization                     86,743        89,083         (2,340 )
Total operating expenses                         472,605       590,319       (117,714 )
Operating loss                                 $ (47,120 )   $ (81,957 )   $   34,837

Three months ended December 31, 2021 compared to three months ended December 31, 2020

The revenue for the three months ended December 31, 2021 decreased $71,753 compared with the same period ended December 31,2020. The decrease was mainly due to the Company adjusted partial of the business model, (i.e. subleases the rooms to the single independent resident and operates as business apartments). The business is still growing during the transition period.

The total operating income amounted $42,121 for the three months ended December 31, 2021 as compared to operating income $86,674 for the three months ended December 31, 2020. The reason was mainly due to the revenue decreased along with the operating cost reduced for the three months ended on December 31, 2021.

Six months ended December 31, 2021 compared to six months ended December 31, 2020

The revenue for the six months ended December 31, 2021 decreased $82,877 compared with the same period ended December 31,2020. The decrease was mainly due to the Company adjusted partial of the business model, (i.e. subleases the rooms to the single independent resident and operates as business apartments).

The total operating loss amounted $47,120 for the six months ended December 31, 2021 as compared to operating loss $81,957 for the six months ended December 31, 2020, a decreasing of $34,837. The reason was mainly due to the decreasing of selling, general and administrative expenses.

Liquidity and Capital Resources

As of December 31, 2021, we had cash on hand of $18,862 and liabilities of $6,968,455. We will require additional funding in order to cover all anticipated administration costs and to proceed with the unpaid balance of APA agreement as well as the interest and penalty. We intend to continue to explore the new business model, such as continue develop the Travel-and-living Business line, and provide management services to retirement homes, commercial properties and apartment buildings in China, which will result in higher administrative costs in the future.





Capital Expenditures

On April 2, 2018, we entered into an Asset Purchase Agreement (the "APA") whereby we purchased land, buildings, and right to use, construction use rights and other property rights located in Shanghai from a third party. Properties are split into two groups:





  ? Property A: land use rights and adhesive substance use rights, right to own,
    and right to operate of the land located in Shanghai Pudong New Area
    Zhangjiang Ziwei Rd No. 372 and No. 376.

  ? Property B: land use right, adhesive substance under construction use rights,
    right to own, and right to operate of the land located in Shanghai Chongming
    District San Shuang Gong Lu No. 4797.

We have agreed to pay the purchase price totaling RMB 233,000,000 in instalments. Payments of $227,353,690 (RMB 176,300,000) have been made through December 31, 2021 and the remainder of $8,797,244 (RMB56,700,000) is going to pay based the schedule we entered with SHQHZY on January 2022.





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Off-balance Sheet Arrangements

We have no 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.





Critical Accounting Policies

Our interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Preparing financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the balance sheet dates, and the recognition of revenues and expenses for the reporting periods. These estimates and assumptions are affected by management's application of accounting policies.

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