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




Through our wholly owned subsidiary, Sincerity Australia Pty Ltd ("SAPL"), we
primarily operate as a distributor and reseller of applied materials,
particularly plastics, with an extensive network in China of high-quality
suppliers for a wide range of both basic and high application polymer products
ranging from generic construction materials to high end breathable stretch film
and antibacterial sheeting. SAPL is based in Melbourne, Australia and
distributes to a number of larger resellers and end users, including Visy
Industries (trading as Pratt Group America in the USA), one of the world's
largest packaging and recycling groups.



SAPL's business was commenced in 2009 by James Zhang, our Chairman, President
and Chief Executive Officer and the son of the founder of (i) Changzhou
Sincerity Plastics and Chemicals Technology Ltd. ("Sincerity China"), a
well-established plastics and applied materials manufacturer with a 20-year
operating history, based in Changzhou, China, and (ii) Shanghai Sincerity Co.
Ltd., a Shanghai, China based company through which most of the products we
purchase from Sincerity China are sourced and sold to us. SAPL originally
commenced operations by supplying basic extruded plastic components (mouldings,
auto interior components, kitchen splash backs etc.) to the Australian auto,
retail and construction industries. In 2015, SAPL began importing specialty high
quality plastic trays and film for use in fresh food packaging and distribution.
The first major customer for this business was the Propac Group, leading
supplier of plastic packaging materials to Coles, one of Australia's 2 dominant
supermarket chains.



Over the past 3 years, SAPL has refocused its marketing efforts towards larger
resellers and distributors in Australia, allowing SAPL to build strong
relationships with key industry players who acquire its products for their own
distribution and reseller networks. Research and investment in addressing the
key fresh food issue of plastic film "breathability" has created a unique
technology platform whereby air circulation in packaged foods can be adjusted
according to the type of food. This has the effect of prolonging shelf life, key
to building relationship metrics within the food retailing industry. SAPL
recently started to supply Visy Industries, with high technology, breathable
plastic film for use in Visy Industries' packaging supply contract with the
other dominant player in Australia's supermarket industry.

Presently all of SAPL's revenue is derived from sales within the Australian market, however, due to the strong international presence of SAPL's major customers such as Visy, particularly in the US, combined with the technology metrics of SAPL's product range (breathable stretch film and antibacterial polymer products), it is expected that SAPL's products will be increasingly utilized in global markets.


SAPL will continue with the process of further vertical integration of its
product range. Value adding packaging technology, such as breathable film, and
ventilated stretch film, is expected to provide an innovative edge over our
competition. Rapid growth in demand from fresh fruit and vegetable packaging is
already reflected through increasing sales to Visy Industries and will also
allow SAPL to transition these new products to the global market.







  25






SAPL supplies Australian market with a well-diversified product range, while
commodity type provides a strong foundation of business grow, the value adding
innovations on each product will bring SAPL to the next level and expand for
beyond Australia.



                                             Three months ended June 30,          Six months ended June 30,
                                                2019                                2019
                                                  $                                   $
                                Note         (Unaudited)          2018$          (Unaudited)         2018$
Revenue
Sales                                              161,005          258,688           396,059          734,601
Cost of sales                                     (122,351 )       (234,155 )        (350,609 )       (687,163 )
Gross profit                                        38,654           24,533            45,450           47,438

Operating expenses
Depreciation and
amortization                                         2,335            6,265             4,753           12,773
Selling, general and
administrative expenses                              6,285           40,223            19,347           68,005
Employee expenses                                        -                -            62,500           24,697

Professional service fees                           27,481         (203,385 )          46,492          173,222
Repairs and maintenance                                  -               31                 -               31
Total operating expenses                            36,101         (156,866

)         133,092          278,728

Income / (Loss) from
operations                                           2,553          181,399           (87,642 )       (231,290 )

Other income/(expenses)
Other income                                        14,411            5,741            28,844           11,129
Interest expense                                   (11,335 )       (105,422 )         (22,804 )       (233,751 )
Other Finance Gain                                       -          624,654                 -          614,679

Discount on Convertible note                             -          407,271                 -          320,527
Loss on derivative financial
instrument                                               -         (153,723 )               -          (23,469 )
Fair value adjustment of
Warrant liabilities                                      -          439,448                 -          409,173
Foreign currency transaction
loss                                                (7,451 )        (19,821 )          (7,317 )        (26,657 )
Total other income/
(expenses)                                          (4,375 )      1,198,148            (1,277 )      1,071,631
Income/(Loss) from
continuing operations before
income tax expenses                                 (1,822 )      1,379,547

(88,919 ) 840,341


Income tax benefit/(expense)                        (4,207 )         38,134              (246 )         (7,816 )

Net income/(Loss) after
income tax expense for the
period                                              (6,030 )      1,417,681

(89,165 ) 832,525



Other comprehensive income
/(loss)
Exchange differences arising
on translation of foreign
operations                                          (1,106 )         22,663            (1,106 )         36,373
Other comprehensive
income/(loss)                                       (1,106 )         22,663            (1,106 )         36,373

Total comprehensive

income/(Loss) for the period                        (7,136 )      1,440,344

(90,271 ) 868,898



Net (loss)/gain per share
Basic and diluted                                        -             0.03                 -             0.02
Weighted average number of
common stock outstanding
Basic and diluted                               73,590,730       49,932,015

       73,590,730       49,731,704






  26






Revenues



Revenue was $396,059 for the six months ended June 30, 2019, compared to
$734,601 for the six months ended June 30, 2018, a decrease of $338,542. 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 $19,347 for the six months
ended June 30, 2019, compared to $68,005 for the six months ended June 30, 2018.
In the six months ended June 30, 2018, international travels were undertaken for
financing and operating matters that did not take place in the six months ended
June 30, 2019.



Employee expenses

Director's salary was accrued for the six months ended June 30, 2019, with the amount of $62,500.





Professional service fees



Professional service fees were $46,492 for the six months ended June 30, 2019,
compared to $173,222 for the six months ended June 30, 2018. The $46,492 for the
six months ended June 30, 2019 relates to professional service fees incurred
relating to its operating activities.



Other Income and Expenses

Prior to the reverse acquisition that took place on September 19, 2017, other income and expense were relatively immaterial and primarily comprised of employee contribution to fringe benefits, interest income and freight income.


Following our issuance of convertible notes and warrants, the components of
other income and expense also include interest expense on the notes and losses
related to the changes in fair value of both the notes and warrants. This is due
to the recording of the convertible notes at fair value upon issuance, which
resulted in a non-recurring loss on issuance because their values exceeded the
cash proceeds from issuance. We will remeasure the fair values of the notes and
warrants at each future reporting date, and if those fair values change, will
record a corresponding gain or loss. Accordingly, we expect other income and
expense to fluctuate, and possibly fluctuate by a significant amount, in future
periods by the gains or losses on changes in fair value until such time as the
notes are either converted into common stock or repaid and the warrants are
either exercised or expire. Also, we will accrue and record interest expense on
the notes until they are either converted or repaid.

The decrease in other income and expenses was due to all the convertible notes and warrants being repurchased in 2018 and the company no longer needs to remeasure these financial instruments in 2019.

Liquidity and Capital Resources

As at June 30, 2019, we had a working capital deficit of $414,485 compared with a working capital deficit of $279,733 as at June 30, 2018.

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

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









  27






As of June 30, 2019, we had cash and cash equivalent of approximately $6,943,
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 has the ability to raise fund through private placements or
      convertible notes and has had prior success. The company is currently in

discussion with financiers to raise more fund; (ii) The company is expected to increase its revenue by launching new products

line during the year; (iii) The company constantly reduced costs to improve its financial performance.

In the six months ended June 30, 2019, the net cash provided by operating activities primarily reflects the loss from operations of approximately $89,165 with approximately $119,391 in changes in operating assets and liabilities, offset by non-cash items of approximately $13,419 and amortization and depreciation of approximately $4,753 that had no effect on cash flows.

Net cash used for investing activities of approximately $nil and $nil for the six months ended June 30, 2019 and six months ended June 30, 2018, respectively.

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