The following management's discussion and analysis should be read in conjunction with the historical financial statements and the related notes thereto contained in this report. The management's discussion and analysis contains forward-looking statements, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words "believe," "plan," "intend," "anticipate," "target," "estimate," "expect" and the like, and/or future tense or conditional constructions ("will," "may," "could," "should," etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. The Company's actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this report.

The following discussion highlights the Company's results of operations and the principal factors that have affected our financial condition, as well as our liquidity and capital resources for the periods described, provides information that management believes is relevant for an assessment and understanding of the statements of financial condition and results of operations presented herein. The following discussion and analysis are based on the Company's unaudited financial statements contained in this Quarterly Report, which we have prepared in accordance with United States generally accepted accounting principles. You should read this discussion and analysis together with such financial statements and the related notes thereto.





Company Overview

We are a supplier of technologically advanced plastics and other solutions for the packaging industry and other industries primarily serving major end users and distributors in Australia, Asia and the Middle East. Our products have applications in the areas of packaging, agriculture, automotive and transportation, paint and coating, construction, personal care and hygiene, electronics, pharmaceutical, energy and natural resources, plastics and rubber and leather. Our principal products are high quality, breathable plastic film and modified atmosphere packaging used in the packaging of perishable foods.

In 2021, through the acquisition target SMCOR, SINC expands deeper into our existing customer based in EV, 5G, computer chips and medical industries. In addition, the pandemic boosts the demand for covid related medical material and SINC boosted vaccine related production capacity through SIMCOR.





                                                                Three Months ended March
                                                                2022                 2021
                                                 Note            $                    $
                                                            (Not Reviewed)       (Not Reviewed)
Revenue
Sales                                                               13,878               31,096
Cost of sales                                                            -              (25,821
Gross profit                                                        13,878                5,275

Operating expenses
Depreciation and amortization                                        2,147                2,292
Selling, general and administrative expenses                         1,925                2,661
Professional service fees                                            1,058                  158
Total operating expenses                                             5,130                5,111

Profit/(Loss) from operations                                        8,748                  164

Other income/(expenses)
Other income                                                             -               11,749
Interest expense                                                    (1,402 )             (1,553
Foreign currency transaction loss                                    2,219               (2,090
Total other income/(expenses)                                          817                8,106
Income/(loss) from continuing operations
before income tax expenses                                           9,565                8,270

Income tax benefit/(expense)                      10                (2,878 )             (2,150 )

Net income/(loss) after income tax expense for
the period                                                           6,687                6,120

Other comprehensive income/(loss)
Exchange differences arising on translation of
foreign operations                                                  19,472               10,434
Other comprehensive income/(loss)                                   19,472               10,434

Total comprehensive loss for the period                             26,159               16,554




  20






Revenues

Revenue was $13k for the three months ended March 31, 2022, compared to $31k for the three months ended March 31, 2021, a decrease of $18k. The decrease can be attributed to timing and quantity of orders by our customers and the type of products they purchase, which can vary in margin.

Selling, general and administrative expenses

Selling, general and administrative expenses was $1.9k for the three months ended March 31, 2022, compared to $2.3k for the three months ended March 31, 2021. The amount incurred is similar to the same quarter of 2021 given the level of business activities.





Employee expenses

No employee expenses were incurred for the 3 months ended March 31, 2022 and March 31, 2021.





Professional service fees

Professional service fees were minimal for the three months ended March 31, 2022 and 2021. The lower professional service fees incurred for the 3 months ended March 31, 2022 and 2021 was to due to reduced consultant costs.





Other Income and Expenses

The decrease in other income and expenses was due to the financial assistance from the Australian Government in response to the effects of COVID-19 has ceased in 2021 and foreign currency transaction loss due to the appreciation of the Australian dollar against the US Dollar.

Liquidity and Capital Resources

At March 31,2022, the company had a current asset deficiency of $115,619 and net asset surplus of $77,021 (December 31, 2021 current asset deficiency of $40,846 and net asset surplus of $143,761). The Company reported an after tax income of $6,687 for the year (March 31, 2021 after tax income: $6,120).

Our primary uses of cash have been for operations. The main sources of cash have been sales to customers.

The Company believes that cash flow from operations will be sufficient to sustain its current level of operations for at least the next one month of operations.









  21

As of March 31, 2021, we had cash and cash equivalent of approximately $3,000, which might not be sufficient to fund our operating and capital needs in the short term. The Company has been seeking funding from various sources as discussed below:

(i) The company entered into a Securities Purchase Agreement ("SPA") with ONE44

CAPITAL, LLC, a Nevada limited liability company ("Purchaser"), pursuant to
      which we issued and sold to the Purchaser a convertible promissory note,
      dated April 6, 2022, in the principal amount of $120,000 (the "Note"). The
      Note contains an original issue discount amount of $9,000 and legal fees
      payable to ONE44's legal counsel of $6,000. The maturity date of the Note is
      April 6, 2023;
(ii)  The company entered into a Securities Purchase Agreement ("SPA") with 1800
      DIAGONAL LENDING LLC, a Virginia limited liability company, f/k/a Sixth
      Street Lending, LLC ("Purchaser"), pursuant to which we issued and sold to
      the Purchaser a convertible promissory note, dated May 4, 2022, in the
      principal amount of $68,750 (the "Note"). The Note contains legal fees
      payable to Purchaser's legal counsel of $3,000 and to Purchaser a due
      diligence fee of $750. The maturity date of the Note is May 4, 2023 (the
      "Maturity Date").

      The term sheet also includes optional additional tranches of financing of up
      to $900,000 during the term of the note subject to further agreement with
      the purchaser; and

(iii) The company has been streamlining its operation by reducing operation costs.

In the three months ended March 31, 2022, the net cash generated used in operating activities primarily reflects the profit from operations of approximately $7,000 with approximately $11,000 in changes in operating assets and liabilities, offset amortization and depreciation of approximately $2,000 that had no effect on cash flows.

Net cash generated used for investing activities was $nil for the three months ended March 31, 2022.

Net cash used in financing activities was approximately $17,000 for the three months ended March 31, 2022 compared to approximately $13,000 used in financial activities for the three months ended March 31, 2021 and receipt from related parties for the three months ended March 31, 2022.

Critical Accounting Estimates and Judgements

The Directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company.









  22






Key Estimates



(i) Useful lives

The Company determines the estimated useful lives and related depreciation and amortization charges for its property and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortization charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.





(ii) Income tax

The Company is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Company recognizes liabilities for anticipated tax audit issues based on the Company's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made.





Key Judgements

(i) Provision for impairment of receivables

The provision for impairment of receivables assessment requires a degree of estimation and judgement. The level of provision is assessed by taking into account the recent sales experience, the ageing of receivables, historical collection rates and specific knowledge of the individual debtors' financial position.





(ii) Impairment

The Company assessed that no indicators of impairment existed at the reporting date and as such no impairment testing was performed.

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