Overview

Historically, our primary operations involved the design, manufacture and distribution of a line of proprietary high and low temperature dyeing and finishing machinery to the textile industry, which has terminated in December, 2019.





With the termination of the manufacturing businesses, we are actively exploring
other new ventures and opportunities that could contribute to our business

in
the future.




Given the termination of our manufacturing business, we continued to pursue what
we believe are high growth opportunities for the Company, particularly our new
business divisions focused on the development of sharing economy platforms and
related rental businesses within the company. These initiatives are still in an
early stage and are dependent in large part on availability of capital to fund
their future growth. We did not generate significant revenues from our sharing
economy business initiatives in 2021 or during the three months ended March

31,
2022.



Recent developments



Inspirit Studio



During the period, BuddiGo, the sharing economy mobile platform developed by
Inspirit Studio Limited ("Inspirit Studio"), continuously promoted its service
to the local market in Hong Kong. BuddiGo offers a wide range of errand
services. Currently, about 80 percent of the orders received are for on-demand
urgent delivery of items such as documents, flowers and cakes. Food delivery
services are also available. During the period from June 2018 to June 30, 2019,
over 1,200 individuals have officially registered as sell-side buddies, who
completed over 600 delivery orders from June 2018 to June 30, 2020, majority
orders were happened in the third quarter of year 2018. In addition, BuddiGo has
signed up with a number of local business partners to provide ongoing delivery
services for these clients. BuddiGo's goal is to connect with the community and
deliver localized content featuring BuddiGo's core features and advantages.
BuddiGo is actively seeking strategic investors or collaborative parties who are
enthusiastic about its business model and can help achieve its business targets
and expand into different countries.



3D Discovery Co. Limited



3D Discovery, an IT service provider that develops virtual tours for the real
estate, hospitality and interior design industries. 3D Discovery's space
capturing and modeling technology is already used by some of Hong Kong's leading
property agencies to provide their clients with a truly immersive, first-hand
experience of a physical space while saving them time and money. According to
Goldman Sachs, the Real Estate virtual reality ("VR") industry is predicted to
reach $2.6 billion in 2025, supported by a potential user base of over 1.4
million registered real estate agents in some of the world's largest markets.
Apart from its existing profitable operations, 3D Discovery is developing a
mobile app, Autocap, which allows users to create an interactive virtual tour of
a physical space by using a mobile phone camera.



3D Discovery successfully completed a number of projects during the year. First,
its "3D Virtual Tours in Hong Kong" generated about 1,371,000 impressions in
2018. In addition, 3D Discovery partnered with Midland Realty, one of the
largest real estate agencies in Hong Kong, to establish the "Creation 200 3D
Virtual Tours.".



EC Advertising Limited
We started meeting with a number of potential clients there and anticipate that
this advertising company will confirm with them several marketing campaigns. In
order to maximize our exposure to the potential clients in Mainland China, we
are developing a strategic media plan which will cover major cities in Mainland
China such as Beijing, Shanghai, Guangzhou and Shenzhen. Major banks, real
estate developers and consumer products manufacturers and retailers are our
target clients. More importantly, our presence in Mainland China can facilitate
the rollout of franchise programs of our business units, which is one of the
revenue drivers for the Company.



ECrent Platform Business

In December 2019, we have acquired the ECrent global businesses.

Going forward, we will continue targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models.





                                       21

Critical Accounting Policies and Estimates





Our discussion and analysis of our financial condition and results of operations
are based upon our consolidated financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United
States. The preparation of these consolidated financial statements requires us
to make estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses, and related disclosure of contingent assets
and liabilities. We continually evaluate our estimates, including those related
to bad debts, inventories, recovery of long-lived assets, income taxes and the
valuation of equity transactions.



We base our estimates on historical experience and on various other assumptions
that we 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. Any future changes
to these estimates and assumptions could cause a material change to our reported
amounts of revenues, expenses, assets and liabilities. Actual results may differ
from these estimates under different assumptions or conditions. We believe the
following critical accounting policies affect our more significant judgments and
estimates used in the preparation of the consolidated financial statements.




Accounts Receivable




We have a policy of reserving for uncollectible accounts based on our best
estimate of the amount of probable credit losses in our existing accounts
receivable. We periodically review our accounts receivable to determine whether
an allowance is necessary based on an analysis of past due accounts and other
factors that may indicate that the realization of an account may be in doubt.
Account balances deemed to be uncollectible are charged to the allowance after
all means of collection have been exhausted and the potential for recovery

is
considered remote.



As a basis for estimating the likelihood of collection has been established, we
consider a number of factors when determining reserves for uncollectable
accounts. We believe that we use a reasonably reliable methodology to estimate
the collectability of our accounts receivable. We review our allowances for
doubtful accounts on at least a quarterly basis. We also consider whether the
historical economic conditions are comparable to current economic conditions. If
the financial condition of our customers or other parties that we have business
relations with were to deteriorate, resulting in an impairment of their ability
to make payments, additional allowances may be required.



Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using straight-line method over the estimated useful lives of the assets. The estimated useful lives of the assets are as follows:





                                 Useful Life
Office equipment and furniture     5 Years
Vehicles                           5 Years
Vessels                            5 Years




The cost of repairs and maintenance is expensed as incurred; major replacements
and improvements are capitalized. When assets are retired or disposed of, the
cost and accumulated depreciation are removed from the accounts, and any
resulting gains or losses are included in the statements of income and
comprehensive income in the year of disposition.



We examine the possibility of decreases in the value of fixed assets when events
or changes in circumstances reflect the fact that their recorded value may not
be recoverable. We recognize an impairment loss when the sum of expected
undiscounted future cash flows is less than the carrying amount of the asset.



                                       22



Stock-based Compensation



FASB's ASC Topic 718, Stock Compensation (formerly, FASB Statement 123R) ("ASC
Topic 718"), prescribes accounting and reporting standards for all stock-based
payment transactions in which employee and non-employee services are acquired.
The Company measures the cost of employee and non-employee services received in
exchange for an award of equity instruments based on the grant-date fair value
of the award.



The Company estimates the fair value of each restricted stock award as of the
date of grant using the closing price as reported by the OTC Markets Group Inc.
(the "OTCM") on the date of grant. The fair value determined represents the cost
for the award and is recognized over the vesting period during which an employee
is required to provide service in exchange for the award. The Company accounts
for forfeitures of restricted stock as they occur.



Currency Exchange Rates

Our functional currency is the U.S. dollar, and the functional currency of our operating subsidiaries is the RMB and Hong Kong Dollar.





Our exposure to foreign exchange risk primarily relates to currency gains or
losses resulting from timing differences between signing of sales contracts and
settling of these contracts. Furthermore, we translate monetary assets and
liabilities denominated in other currencies into RMB, the functional currency of
our operating subsidiary. Our results of operations and cash flow are translated
at average exchange rates during the period, and assets and liabilities are
translated at the unified exchange rate at the end of the period. Translation
adjustments resulting from this process are included in accumulated other
comprehensive income in our statement of shareholders' equity. We have not used
any forward contracts, currency options or borrowings to hedge our exposure to
foreign currency exchange risk. We cannot predict the impact of future exchange
rate fluctuations on our results of operations and may incur net foreign
currency losses in the future.



Our financial statements are expressed in U.S. dollars, which is the functional
currency of our parent company. The functional currency of our operating
subsidiaries and affiliates is RMB and the Hong Kong dollar. To the extent we
hold assets denominated in U.S. dollars, any appreciation of the RMB or HKD
against the U.S. dollar could result in a charge in our statement of operations
and a reduction in the value of our U.S. dollar denominated assets. On the other
hand, a decline in the value of RMB or HKD against the U.S. dollar could reduce
the U.S. dollar equivalent amounts of our financial results.

Recent Accounting Pronouncements


In December 2019, the Financial Accounting Standards Board ("FASB") issued
Accounting Standard Update ("ASU") 2019-12, "Simplifying the Accounting for
Income Taxes." The standard is expected to reduce cost and complexity related to
accounting for income taxes. The new guidance eliminates certain exceptions and
clarifies and amends existing guidance to promote consistent application among
reporting entities. Depending on the amended guidance within this standard,
adoption is to be applied on a retrospective, modified retrospective or
prospective basis. The Company adopted this standard effective January 1, 2021,
and the adoption did not have a material effect on the Company's consolidated
financial statements.




In January 2020, the FASB issued ASU 2020-01, "Clarifying the Interactions
between Topic 321, Topic 323, and Topic 815." The new guidance clarifies the
interactions between accounting standards that apply to equity investments
without readily determinable fair values. Specifically, it addresses the
accounting for the transition into and out of the equity method. The Company
adopted this standard effective January 1, 2021 on a prospective basis, and the
adoption did not have a material effect on the Company's consolidated financial
statements.

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.





                                       23



RESULTS OF OPERATIONS

Three months ended March 31, 2022 and 2021

The following table sets forth the results of our operations for the three months ended March 31, 2022 and 2021:





                                                                       Three Months ended
                                                                            March 31,
                                                                       2022           2021
Revenues                                                            $   57,058     $   88,207
Cost of revenues                                                             -              -
Gross profit                                                            57,058         88,207
Operating expenses                                                     502,756        429,342
Loss from operations                                                  (445,698 )     (341,135 )
Other (expense) income, net                                           (338,305 )      109,909
Loss from continuing operations before provision for income taxes     (748,003 )     (231,226 )
Provision for income taxes                                                   -
Net loss                                                            $ (748,003 )   $ (231,226 )




Revenues.



During the three months ended March 31, 2022, we recognized revenues from our
sharing economy business of $57,058 compared to $88,207 for the three months
ended Marcg 31, 2021, a decrease of $31,149, or 35%.



Cost of revenues.

No cost incurred during the three months ended March 31, 2022 and 2021.

Gross profit and gross margin.





Our gross profit was $57,058 for the three months ended March 31, 2022 as
compared to gross profit of $88,207 for the three months ended March 31, 2021,
representing gross margins of 100% and 100%, respectively. No change compare to
last year.



Operating expenses.




For the three months ended March 31, 2022, operating expenses were $502,756 was
compared to $429,342 for the three months ended March 31, 2021, an increase of
$73,414, or 17.1%, due to increase in selling, general and administrative
expense.



Loss from operations.



As a result of the factors described above, for the three months ended March 31,
2022, loss from operations amounted to $784,003 as compared to $231,226 for the
three months ended March 31, 2021.



Other income (expense).




Other income (expense) includes interest income, interest expense, foreign
currency transaction gain (loss), gain on disposal of marketable securities,
loss on disposal of a subsidiary, and other income. For the three months ended
March 31, 2022, total other expense, net, amounted to $338,305 as compared to
other income, net, of $109,909 for the three months ended March 31, 2021, a
decrease of $448,214. The decrease in other income, net, was primarily increase
in unrealized loss on sale of marketable securities in the three months ended
March 31, 2022.



                                       24

Income tax provision. Income tax expense was $0 for the three months ended March 31, 2022 and 2021.





Net loss.



As a result of the foregoing, our net loss was $784,003, or $(0.00) per share
(basic and diluted), for the three months ended March 31, 2022 as compared with
net loss $231,226, or $(0.00).

Liquidity and Capital Resources

Three Months Ended March 31, 2022 Compared to Three Months Ended March 31, 2021

As of March 31, 2022 and December 31, 2021, we had cash and cash equivalents of approximately $455 and $66,273, respectively.





The following table sets forth a summary of our cash flows for the periods as
indicated:



                                                                         For the
                                                                   Three Months ended
                                                                        March 31,
                                                                  2022            2021

Net cash used in operating activities                          $ (347,938 )   $   (335,916 )
Net cash used in investing activities                          $   (8,612 )   $ (1,009,445 )
Net cash provided by financing activities                      $  284,578     $      5,936
Effect of exchange rate changes on cash and cash equivalents   $    6,154     $    (21,646 )
Net increase (decrease) in cash and cash equivalents           $  (65,818 )   $ (1,361,071 )
Cash and cash equivalents at beginning of period               $   66,273     $  1,805,417
Cash and cash equivalents at end of period                     $      455
  $    444,346

The following table sets forth a summary of changes in our working capital from December 31, 2021 to March 31, 2022:





                                                               Change in
                             March 31,       December 31,       Working       Percentage
                                2022             2021           Capital         Change
Working capital:
Total current assets        $  3,746,087     $   4,139,415     $ (393,328 )           9.5 %

Total current liabilities     12,566,833        12,265,428        301,405  

          2.5 %
Working capital             $ (8,820,746 )   $  (8,126,013 )   $ (694,733 )          (8.5 )%




Working Capital. Total working capital deficit as of March 31, 2022 amounted to
approximately $8.8 million, as compared to approximately $8.1 million as of
December 31, 2021. The decrease in working capital deficit due to the settlement
of debt upon stock conversion.



Net cash used in operating activities was $347,938 for the three months ended
March 31, 2022, and consisted primarily of a net loss of $784,003, adjusted for
depreciation and amortization of $328,312, gain on disposal of property, plant
and equipment of $25,197, unrealized loss on marketable securities, an increase
in accounts receivable of $37,715, a decrease in prepaid expenses and other
receivables of $113,516, an increase in accounts payable and accrual of $14,637,
an increase in other payable of $54,422.



Net cash flow used in investing activities was $8,612 for the three months ended
March 31, 2022 as compared to, net cash flow provided by investing activities
was $1,009,445 for the three months ended March 31, 2021. For the three months
ended March 31, 2022, net cash flow used in investing activities was purchase of
marketable securities of $41,347, proceeds from sale of marketable securities of
$2,043 and proceed from disposal of property, plant and equipment of $30,692.



                                       25



Net cash flow provided by financing activities was $284,578 for the three months
ended March 31, 2022 as compared to $5,936 for the three months ended March 31,
2021. During the three months ended March 31, 2022, we received advances from
related party of $384,465, offset by repayments for bank loans of approximately
$99,887. During the three months ended March 31, 2022, we received advances from
related party of $36,491, offset by repayments for bank loans of approximately
$30,555



We have historically funded our capital expenditures through cash flow provided
by operations and bank loans. We intend to fund the cost by obtaining financing
mainly from local banking institutions with which we have done business in the
past. We believe that the relationships with local banks are in good standing
and we have not encountered difficulties in obtaining needed borrowings from
local banks.

Contractual Obligations and Off-Balance Sheet Arrangements





Contractual Obligations




We have certain fixed contractual obligations and commitments that include
future estimated payments. Changes in our business needs, cancellation
provisions, changing interest rates, and other factors may result in actual
payments differing from the estimates. We cannot provide certainty regarding the
timing and amounts of payments. We have presented below a summary of the most
significant assumptions used in our determination of amounts presented in the
tables, in order to assist in the review of this information within the context
of our consolidated financial position, results of operations, and cash flows.
The following tables summarize our contractual obligations as of March 31, 2022,
and the effect these obligations are expected to have on our liquidity and

cash
flows in future periods.



                                                              Payments Due by Period
                                                    Less than
Contractual obligations:             Total           1 year         1-3 years        3-5 years         5+ years
Bank loans                        $ 10,283,654     $ 5,497,669     $ 4,785,985     $           -     $          -
Convertible note (1)                 1,347,565       1,347,565               -                 -                -
Total                             $ 11,631,219     $ 6,845,234     $ 4,785,985     $           -     $          -

(1) Convertible note is currently in default with the outstanding balance of

$503,571 in principal and $756,409 accrued interest at March 31, 2022. At the

date of filing, both parties have not reached into the mutual agreement.

Off-balance Sheet Arrangements





We have not entered into any other financial guarantees or other commitments to
guarantee the payment obligations of any third parties. We have not entered into
any derivative contracts that are indexed to our shares and classified as
shareholder's equity or that are not reflected in our consolidated financial
statements. Furthermore, we do not have any retained or contingent interest in
assets transferred to an unconsolidated entity that serves as credit, liquidity
or market risk support to such entity. We do not have any variable interest in
any unconsolidated entity that provides financing, liquidity, market risk or
credit support to us or engages in leasing, hedging or research and development
services with us.



Inflation

The effect of inflation on our revenue and operating results was not significant.





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