Overview

The Company has identified the global tourism market as its first investment target. As it currently exists, the tourism industry is fragmented into various geographic regions. We believe that approaching this industry from a global perspective is an emerging market with tremendous growth potential. We plan to set up and/or acquire offices in various regions of the world and through them, develop the local tourism industry and expand our local tourism market. Ultimately, we plan to unify and manage our regional offices and to market our global services through the internet.

We have three subsidiaries, Airchn Travel Global, Inc. in Seattle, Washington ("ATGI"), Airchn Travel (Canada) Inc., in Vancouver, British Columbia in Canada ("ATCI"), and Airchn Travel (Beijing) Inc. in Beijing, China. Our Beijing office has been closed as of June 30, 2020 due to lack of business and to reduce operating costs.

We have begun to engage in services such as airline and cruise ticketing, customized and packaged tours, travel blogs, travel magazines, sales of travel related merchandise, group hotel reservations, business travel arrangements, conference travel arrangements, car rental and admission ticket sales for local tourist attractions.

Effective January 1, 2018, the Company adopted the guidance of Accounting Standards Codification (ASC) 606, Revenue from Contracts. The implementation of ASC 606 did not have a material impact on the Company's consolidated financial statements. ASC 606 create a five-step model that requires entities to exercise judgement when considering the terms of contract, which includes (1) identifying the contracts or agreement with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligation, and (5) recognizing revenue as each performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.

The Company's revenue consists of revenue from providing travel consulting and travel arrangement advisory services ("service revenue"), and service revenue from travel schedule arrangements and advisory.

We will continue to explore other business growth opportunities, regardless of industry, in order to diversify our business operations and investments.


                                       11

--------------------------------------------------------------------------------

Results of Operations

The following summary of our results of operations should be read in conjunction with our audited financial statements for the years ended June 30, 2020 and 2019.

Years Ended June 30, 2020 and 2019:



                                          June 30, 2020     June 30, 2019
Revenues                                $           784   $           491
  Cost of revenues                                    -                 -

Expenses


  General and administrative expenses           (51,286 )         (55,651 )

  Foreign currency exchange gain (loss)          (4,657 )           5,421
Net loss                                $       (55,159 ) $       (49,739 )


Revenues

We have generated total revenues of $784 from our operations during the year ended June 30, 2020 as compared to the year ended June 30, 2019 where we generated total revenues of $491, or an increase of 60%. The increase was due to an increase of sales revenue from travel schedule arrangements and advisory.

Expenses

General and administrative expenses for the year ended June 30, 2020 was $51,286 and decreased from $55,651, or 10%, compared with the year ended June 30, 2019. The decrease in expenses during the current year was mainly due to a decrease in accounting and filing fees.

Net loss

We had net losses of $55,159 and $49,739 for the years ended June 30, 2020 and 2019, respectively, and had an accumulated deficit of $1,283,018 since the inception of our business through June 30, 2020.

Liquidity and Capital Resources

Our financial condition for the years ended June 30, 2020 and 2019 are summarized as follows:

Working Capital



                      June 30, 2020     June 30, 2019
Current Assets      $         3,546   $         2,551
Current Liabilities        (213,480 )        (162,297 )
Working Capital     $      (209,934 ) $      (159,746 )



                                       12

--------------------------------------------------------------------------------

Our working capital deficiency for the year ended June 30, 2020 was significantly increased by $50,188 compared with 2019 mainly due to an increase in accounts payable and accrued liabilities, due to additional funds advanced for share issuance and due to related parties.

Cash Flows

June 30, 2020     June 30, 2019

Cash used in operating activities $ (49,459 ) $ (33,821 ) Cash used in investing activities

                   -                 -
Cash provided by financing activities          49,744            33,079
Cumulative translation adjustment                 715               325
Net decrease in cash                  $         1,000   $          (417 )

Cash Used in Operating Activities

For the year ended June 30, 2020, our cash used in operating activities increased by $15,638 compared with the previous year. The increase is mainly due to an increase in foreign exchange loss although general and administrative expenses decrease in accounting and filing fees and decreases in accounts payable and accrued liabilities.

Cash Used in Investing Activities

For the year ended June 30, 2020, no cash was used in investing activities.

Cash Provided by Financing Activities

For the year ended June 30, 2020, the Company received $49,744 from financing activities in the form of cash advances for future share issuances from an independent party, as compared to $33,079 of such cash advances in the previous year.

Cash Requirements

Over the next 12-months ending June 30, 2021, we anticipate that we will incur the following operating expenses:



Expense                            Amount
General and administrative       $  40,000
Professional fees                   60,000
Foreign currency exchange loss       4,000
Total                            $ 104,000

Our CEO, Hong Ba, has committed to providing our working capital requirements for the next 12 months.

There is substantial doubt about our ability to continue as a going concern as the continuation of our business is dependent upon the continued financial support from our shareholders, our ability to obtain necessary equity financing to continue operations, and achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.


                                       13

--------------------------------------------------------------------------------

In addition to the issues set out above regarding our ability to raise capital, global economies are currently undergoing a period of economic uncertainty related to the COVID-19 pandemic and the tightening of credit markets worldwide. This has resulted in numerous adverse effects, including unprecedented volatility in financial markets and stock prices, slower economic activity, decreased consumer confidence and commodity prices, reduced corporate profits and capital spending, increased unemployment, liquidity concerns and volatile but generally declining energy prices. We anticipate that the current economic conditions and the credit shortage will adversely impact our ability to raise financing. In addition, if the future economic environment continues to be less favorable than it has been in recent years, we may experience difficulty in completing our current business plan.

Off Balance Sheet Arrangements

We have no significant 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.

Recently Issued Accounting Standards

We continue to assess the effects of recently issued accounting standards. The impact of all recently adopted and issued accounting standards has been disclosed in the Footnotes to the financial statements.

© Edgar Online, source Glimpses