UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~December~~June 3130, ~~2015~~2016

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934

Commission File Number: 000-21909

ASIA TRAVEL CORPORATION

(Exact name of registrant as specified in its charter)


Nevada	86-0779928
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Unit 1202, Level 12, One Peking,

1 Peking Road, Tsim Sha Tsui,

Kowloon, Hong Kong

(Address of principal executive office)

+852 39809369

(Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). Yes [X] No [ ]

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.



Large Accelerated Filer [ ]	Accelerated Filer [ ]	Non-accelerated Filer [ ]	Smaller Reporting Company [X]

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 177,748,501 shares of common stock, par value $0.001, as of ~~February~~August 1219, 2016.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets as of December 31, 2015 (unaudited) and March 31, 2015	3
	Condensed Consolidated Balance Sheets as of June 30, 2016 (unaudited) and March 31, 2016	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended December 31, 2015 and 2014 (unaudited) and Nine Months Ended December 31, 2015 and 2014 (unaudited)	4
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended June 30, 2016 and 2015 (unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2015 and 2014 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2016 and 2015 (unaudited)	5
	Notes to Consolidated Financial Statements	6
	Notes to Condensed Consolidated Financial Statements (unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Conditions and Results of Operations	1314
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	1516
Item 4.	Controls and Procedures	1516
PART II – OTHER INFORMATION
Item 6.	Exhibits	17
SIGNATURES		18

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

ASIA TRAVEL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
	December 31,	March 31,
	2015	2015
ASSETS
Current assets:
Cash in bank	$ 121,822	$ 254,321
Accounts receivables	67,847	22,812
Total current assets	189,669	277,133
Non-current assets:
Related party receivables	-	35,458
Property, plant and equipment, net of accumulated depreciation	3,638,849	3,894,705
Total non-current assets	3,638,849	3,930,163
Total assets	$ 3,828,518	$ 4,207,296
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses	$ 4,179	$ 100,948
Current maturities of long-term debt	238,342	194,934
Related party payables	4,094,637	2,283,104
Total current liabilities	4,337,158	2,578,986
Non-current maturities of long-term debt	1,232,759	1,974,449
Total liabilities	$ 5,569,917	$ 4,553,435
Stockholders' deficit:
Preferred stock: par value $0.001 per share; 10,000,000 shares authorized, 20,000 shares issued and outstanding respectively	$ 20	$ 20
Common stock:
$0.001 par value, 990,000,000 shares authorized;177,748,501 and 177,748,501 shares issued and outstanding, respectively	177,748	177,748
Capital in excess of par value	9,496,072	9,496,072
Accumulated deficit	(11,442,643)	(10,024,085)
Accumulated other comprehensive income	27,404	4,106
Total stockholders' deficit	(1,741,399)	(346,139)
Total liabilities and stockholders' deficit	$ 3,828,518	$ 4,207,296
See the accompanying notes to the unaudited condensed consolidated financial statements

ASIA TRAVEL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(Stated in US Dollars)


		June 30,		March 31,
		2016		2016
ASSETS
Current assets:
Cash and cash equivalents	$	8,505	$	45,592
Other receivables		21,708		22,185
Total current assets		30,213		67,777

Non-current assets:
Property and equipment, net of accumulated depreciation		2,705,542		2,811,756
Total non-current assets		2,705,542		2,811,756
Total assets	$	2,735,755	$	2,879,533

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued expenses and other payables	$	4,920	$	5,078
Deferred tax liabilities		8,692		8,967
Related parties payables		3,078,390		3,106,741
Mortgage loans - current portion		157,791		159,706
Total current liabilities		3,249,793		3,280,492

Mortgage loans - non-current portion		1,204,856		1,284,881
Total liabilities	$	4,454,649	$	4,565,373

SHAREHOLDERS' DEFICIT
Preferred stock: par value $0.001 per share; 10,000,000 shares authorized, 20,000 shares issued and outstanding at June 30, 2016 and March 31, 2016		20		20
Common stock: $0.001 par value, 990,000,000 shares authorized;177,748,501 shares issued and outstanding at June 30, 2016 and March 31, 2016		177,748		177,748
Capital in excess of par value		9,496,072		9,496,072
Accumulated deficits		(11,429,427)		(11,380,869)
Accumulated other comprehensive income		36,693		21,189
Total shareholders' deficit		(1,718,894)		(1,685,840)
Total liabilitiesand shareholders' deficit	$	2,735,755	$	2,879,533

See notes to unaudited condensed consolidated financial statements

ASIA TRAVEL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited)
	For the three months ended		For the nine months ended
	December 31,	December 31,	December 31,	December 31,
	2015	2014	2015	2014
Revenue	$ 125,260	$ 312,179	$ 389,580	$ 598,046
Cost of sales	48,968	178,886	165,861	307,635
Gross margin	76,292	133,293	223,719	290,411
EXPENSES
General and administrative	49,035	595,314	1,441,561	952,992
Depreciation	26,808	27,871	81,627	83,169
Total expenses	75,843	623,185	1,523,188	1,036,161
OPERATING PROFIT / (LOSS)	449	(488,892)	(1,299,469)	(745,750)
OTHER INCOME AND EXPENSES
Interest income	17	23	45	60
Loan interest	(35,129)	(48,219)	(119,134)	(146,788)
Total other income and expenses	(35,112)	(48,196)	(119,089)	(146,728)
LOSS BEFORE INCOME TAXES	(34,663)	(538,088)	(1,418,558)	(892,478)
Provision for income taxes	-	-	-	-
NET LOSS	$ (34,663)	$ (538,088)	$ (1,418,558)	$ (892,478)
Comprehensive loss:
Foreign currency translation gain	11,271	8,571	23,298	1,667
Comprehensive loss	$ (23,392)	$ (529,517)	$ (1,395,260)	$ (890,811)
LOSS PER SHARE - basic and diluted	$ (0.00)	$ -	$ (0.00)	$ -
WEIGHTED AVERAGE NUMBER OF COMMON SHARES- basic and diluted	177,748,501	177,748,501	177,748,501	177,748,501
See the accompanying notes to the unaudited condensed consolidated financial statements

ASIA TRAVEL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (unaudited)

(Stated in US Dollars)


		For the three monthsended June 30,
		2016		2015

Revenue	$	134,823	$	123,035
Cost of sales		(74,168)		(49,644)
Gross profit		60,655		73,391

Operating expenses
Depreciation		(20,260)		(27,634)
General and administrative		(61,885)		(457,785)
Total expenses		(82,145)		(485,419)

Loss from operations		(21,490)		(412,028)

Other income and expenses
Interest income		16		16
Interest expenses		(27,084)		(44,335)
Total other income and expenses		(27,068)		(44,319)

Loss before income taxes		(48,558)		(456,347)
Income tax expense		-		-
Net loss	$	(48,558)	$	(456,347)

Comprehensive loss:
Foreign currency translation adjustments		15,504		(144)
Comprehensive loss	$	(33,054)	$	(456,491)

Loss per share:
Basic and diluted	$	(0.00)	$	(0.00)

Weighted average common stock outstanding:
Basic and diluted		177,748,501		177,748,501

See notes to unaudited condensed consolidated financial statements

ASIA TRAVEL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
	For the nine months ended
	December 31,	December 31,
	2015	2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,418,558)	$ (892,478)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	81,627	83,169
Changes in assets and liabilities
Increase in accounts receivables	(47,198)	(60,659)
Increase in deposit	-	(6,668)
(Decrease) / Increase in account payables	(93,216)	64,217
Decrease in accrued expenses and other payables	(1,854)	-
Decrease in accrued liabilities	-	(1,184,628)
Net cash used in operating activities	(1,479,199)	(1,997,047)
CASH FLOWS FROM INVESTING ACTIVITIES:
Repayments to related parties	721,925	794,499
Net cash provided by investing activities	721,925	794,499
CASH FLOWS FROM FINANCING ACTIVITIES:
Loan from related party	1,250,531	1,334,830
Repayment of long-term debt	(618,604)	(133,281)
Net cash provided by financing activities	631,927	1,201,549
Net decrease in cash and cash equivalents	(125,347)	(999)
Cash and cash equivalents, beginning of period	254,321	205,565
Effect of currency rate changes on cash	(7,152)	533
Cash and cash equivalents, end of period	$ 121,822	$ 205,099
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid for long-term debt	$ 119,134	$ 146,788
Taxes paid	$ -	$ -
Non cash investing and financing activities:	$ -	$ -
See the accompanying notes to the unaudited condensed consolidated financial statements

ASIA TRAVEL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Stated in US Dollars)


		For the three monthsended June 30,
		2016		2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(48,558)	$	(456,347)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		20,260		27,634
Changes in assets and liabilities:
Increase in other receivables		-		(43,809)
Decrease in accrued expenses and other payables		-		(67,169)
Net cash used inoperating activities		(28,298)		(539,691)

CASH FLOWS FROM INVESTING ACTIVITIES
Net cash provided byinvesting activities		-		-

CASH FLOWS FROM FINANCING ACTIVITIES
Loan advance from related parties		39,495		437,330
Repayment to related parties		(9,790)		-
Repayment of loan		(37,599)		(47,774)
Net cash (used in) provided by financing activities		(7,894)		389,556

Effect of exchange rate changes on cash and cash equivalents		(895)		11

Net (decrease) increase in cash and cash equivalents		(36,192)		(150,135)
Cash and cash equivalents at beginning of period		45,592		254,321
Cash and cash equivalents at end of period	$	8,505	$	104,197

Supplemental disclosure of cash flow information:
Cash paid for:
Interest expenses	$	27,084	$	44,335
Income taxes	$	-	$	-

See notes to unaudited condensed consolidated financial statements

ASIA TRAVEL CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED ~~FINANCIALT~~FINANCIAL ~~STATEMENT~~STATEMENTS

~~December~~JUNE 3130, ~~2015~~2016

Note 1: Basis of Presentation and Summary of Significant Accounting Policies

The interim condensed consolidated financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim condensed consolidated financial statements be read in conjunction with the Form 10-K Current Report filed by the Company on ~~June~~July 264, ~~2015~~2016. The Company follows the same accounting policies in the preparation of interim reports.

Organization

Asia Travel Corporation (formerly Realgold International, Inc.) (the “Company” or “Asia Travel”) was incorporated under the laws of the State of Arizona on November 14, 1994. On November 22, 1996, the Company reincorporated under the laws of the State of Nevada and effected a forward split of its common stock on a basis of approximately 242 shares of the Nevada corporation for each share of the Arizona corporation. The Company ceased to actively pursue its business operations relating to the publishing of interactive media software in July, 1999. On May 23, 2013, the Company filed Amended and Restated Articles of Incorporation with the Secretary of State of Nevada changing its name from Realgold International, Inc. to Asia Travel Corporation. During December 2011, the Company established a subsidiary in Hong Kong, Asia Travel (Hong Kong) Limited (formerly Realgold Venture Pte Limited) (“Asia Travel (Hong Kong)”).

On November 22, 2012, Asia Travel (Hong Kong) entered into a Lease Management Agreement (“Lease Management Agreement”) with Zhuhai Tengfei Investment Co., Ltd. (“Tengfei Investment”), a limited liability company formed under the laws of the People’s Republic of China (“China” or “PRC”). Under the Lease Management Agreement, Tengfei Investment leased the managerial and operating rights of Zhuhai Tengda International Travel Agency Co., Ltd. (“Tengda Travel”), a wholly owned subsidiary of Tengfei Investment, to Asia Travel (Hong Kong). Based on the agreement, Asia Travel (Hong Kong) obtained 20 years of business operation right from Tengda Travel from November 11, 2012 to November 19, 2032 for a consideration of US$16,048 (RMB100,000) per year.

On November 25, 2012, Asia Travel (Hong Kong) entered into an Ownership Transfer Agreement (“Ownership Transfer Agreement’) with Tengfei Investment. Under the Ownership Transfer Agreement, Tengfei Investment transfers to Asia Travel (Hong Kong) 100% of the ownership of Zhuhai Tengda Business Hotel Co., Ltd. (“Tengda Hotel”) for a total transfer price of RMB 400,000 (approximately $64,192).

On November 29, 2012, the Bureau of Science and Technology Industry Trade and Information of Zhuhai City approved the ownership transfer of Tengda Hotel to Asia Travel (Hong Kong). On March 26, 2013, Guangdong Province Department of Foreign Trade and Economic Cooperation approved this ownership transfer.

Tengda Hotel and Tengda Travel are wholly owned subsidiaries of Tengfei Investment. They are considered as entities under common control. Accordingly, the financial statements for Tengda Hotel and Tengda Travel have been consolidated for all periods presented, similar to a pooling-of-interests.

Tengda Travel is a limited liability company formed under the laws of the People’s Republic of China on December 23, 2011. As of March 31, 2013, Tengda Travel had registered capital of RMB 300,000, or approximately $47,662 based on the exchange rate as of March 31, 2013. Tengda Travel’s principal activity is to provide packaged tours, air ticketing, reservation of hotel rooms and golf courses and organize corporate conferences, exhibitions and show events for its customers.

Tengda Hotel, formerly named Zhuhai Meihua Hotel Co., Ltd., is a limited liability company formed under the laws of the People’s Republic of China on January 16, 2006. Tengda Hotel had registered capital of RMB 500,000, or approximately $79,403 based on the exchange rate as of March 31, 2013. Tengda Hotel is a three-star hotel with 59 guest rooms, including 24 Standard Rooms, 24 Deluxe Rooms, 10 Business Rooms and 1 Luxury Suite, with many other amenities including fitness club, gym, business center, gift shop, meeting room, ballroom, game room, and a large parking lot.

to provide packaged tours, air ticketing, reservation of hotel rooms and golf courses and organize corporate conferences, exhibitions and show events for its customers.

Upon the completion of the said ownership transfer, Tengda Hotel became the wholly owned subsidiary of Asia Travel (Hong Kong).

On November 6, 2013, Tengda Hotel entered into an Ownership Transfer Agreement (“Ownership Transfer Agreement’) with Zhou Hui Juan and Yu Li Ying. Under the Ownership Transfer Agreement, Zhou Hui Juan and Yu Li Ying transfers to Tengda Hotel 100% of the ownership of Tengfei Investment for a total transfer price of RMB5,000,000 (approximately $820,309).

On January 22, 2014, the Bureau of Science and Technology Industry Trade and Information of Zhuhai City approved the ownership transfer of Tengfei Investment to Tengda Hotel.

Upon the completion of the said ownership transfer, Tengfei Investment became the wholly owned subsidiary of Tengda Hotel. Lease Management Agreement would be automatically terminated on January 22, 2014.

On May 23, 2012, the Board of Directors of the Company adopted an Amendment to the Articles of Incorporation to increase authorized stock from 10,000,000 preferred shares and 99,000,000 common shares to 10,000,000 preferred shares and 990,000,000 common shares.

Basis of presentation

The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The consolidated financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of consolidated financial statements. These financial statements include all adjustments that, in the opinion of management, are necessary in order to make them not misleading.

Principles of consolidation

The consolidated financial statements give effect to the Share Exchange Transaction as if occurred at the beginning of the periods presented and include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Significant estimates include the useful life of property and equipment, and assumptions used in assessing impairment of long-term assets.

Fair value of financial instruments

The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:


•		Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.


•		Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other then quoted prices that are observable, and inputs derived from or corroborated by observable market data.


•		Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

The carrying amounts reported in the balance sheets for cash, due from related parties, other assets, accrued expenses, other payables, and due to related parties approximate their fair market value based on the short-term maturity of these instruments. The Company did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of June 30, 2016 and March 31, 2016.

ASC 825-10 “Financial Instruments”, allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments.

Cash and Cash Equivalents

For purposes of reporting cash flows, the Company considers all highly-liquid debt instruments purchased with an original maturity ofthree months or less to be cash equivalents. Management believes that Company’s cash and cash equivalents held by major bankslocated in the PRC are of high credit quality as of June 30. 2016 and March 31, 2016.

Credit risk

The Company may be exposed to credit risk from its cash and fixed deposits at banks. No allowance has been made for estimatedirrecoverable amounts determined by reference to past default experience and the current economic environment.

Property and equipment

Property and equipment are carried at cost and are depreciated on a straight-line basis (after taking into account their respective estimated residual value) over the estimated useful lives of the assets. 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 income in the year of disposition. The Company examines 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.

The estimated useful lives are as follows:


Buildings	50 years
Leasehold improvements	20 years

Impairment of long-lived assets

In accordance with ASC Topic 360, the Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not record any impairment charges for the three months ended June 30, 2016 and year ended March 31, 2016.

Revenue Recognition

Revenue derived from hotel services is recognized when the rooms are occupied and the services are performed. Travel agencyservices revenues are recognized when the travel-related service, golf package service or transportation is provided, or when theorganization service of corporate conferences, exhibitions and show events is commenced. Deferred revenue consisting of depositspaid in advance is recognized as revenue when the services are performed for hotels and upon commencement of travel agencyservices.

Employment benefits

The Company contributes to a state pension plan in respect of its PRC employees. Other than the above, the Company does notprovide any other post-retirement or post-employment benefits.

Income Taxes

The Company is governed by the Income Tax Law of US, Hong Kong and PRC. The Company accounts for income tax using the liability method prescribed by ASC 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date.

The Company applied the provisions of ASC 740-10-50, “Accounting for Uncertainty in Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has passed. The

completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of June 30, 2016 and March 31, 2016, the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future.

Foreign currency translation

The accompanying consolidated financial statements are presented in U.S. dollars (“USD”). The reporting currency of the Company is the USD. The functional currency of EETA is Renminbi dollars (“RMB”). For the subsidiaries whose functional currencies are the USD or RMB, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income.

All of the Company’s revenue transactions are transacted in the functional currency. The Company does not enter any material transaction in foreign currencies and, accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company.

The exchange rates used to translate amounts in RMB into USD for the purposes of preparing the consolidated financial statements were as follows:

	December 31, 2015	December 31, 2014
		June 30	June 30
Nine months ended RMB : USD exchange rate	6.4952	6.2055
		2016	2015
Nine-months-average RMB : USD exchange rate	6.2984	6.1815
Exchange rate on balance sheet dates
USD : RMB exchange rate		6.6487	6.1988
Average exchange rate for the period
USD : RMB exchange rate		6.5324	6.2015

~~Income~~The ~~(loss)~~exchange ~~per~~rates ~~common~~used ~~share~~to translate amounts in HKD into USD for the purposes of preparing the consolidated financial statements were as follows:

Basic and diluted net loss per common share is computed using the net loss applicable to common shareholders and the weighted average number of shares of common stock outstanding. Diluted net loss per common share does not differ from basic net loss per common share since potential shares of common stock from conversion of preferred stocks are anti-dilutive for all periods presented. The fully diluted shares would be 177,748,501 and 177,748,501 for the nine months ended December 31, 2015 and December 31, 2014, respectively.


	June 30	June 30
	2016	2015
Exchange rate on balance sheet dates
USD : HKD exchange rate	7.7595	7.7520

Average exchange rate for the period
USD : HKD exchange rate	7.7610	7.7521

Earnings per share

ASC 260 “Earnings per Share,” requires dual presentation of basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.

Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted income per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period.

Accumulated other comprehensive loss

Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ deficit, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss for the three months ended June 30, 2016 and 2015 included net loss and unrealized loss from foreign currency translation adjustments.

Related party transactions

A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities including such person’s immediate families, (ii) the Company’s management, (iii) someone that directly or

indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Recently issued accounting pronouncements

InThe ~~January~~Company ~~2013,~~has ~~the~~considered ~~FASB~~all ~~issued~~new ~~ASU~~accounting ~~No.~~pronouncements ~~2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets~~ and ~~Liabilities,~~has ~~which~~concluded ~~clarifies~~that ~~which~~there ~~instruments and transactions~~ are ~~subject~~no ~~to the offsetting disclosure requirements originally established by ASU 2011-11. The~~ new ~~ASU~~pronouncements ~~addresses preparer concerns~~ that ~~the~~may ~~scope~~have ofa ~~the~~material ~~disclosure~~impact ~~requirements~~on ~~under~~results ~~ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope~~ of ~~the offsetting disclosures~~operations, ~~the Board determined that it could make them more operable and cost effective for preparers while still giving~~ financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11condition, ~~the amendments in this update will be effective for fiscal periods beginning on,~~ or ~~after~~cash ~~January 1~~flows, ~~2013.~~based ~~The adoption of ASU 2013-01 is not expected to have a material impact~~ on ~~our~~current ~~financial position or results of operations~~information.

7Note 2: Property, plant and equipment

~~The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed~~Property, plant and ~~the~~equipment ~~Company~~consisted ~~does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results~~ of ~~operations.~~the following:

The carrying values of all of our other financial instruments, which include accounts receivable, accounts payable and accrued liabilities, and due to related parties approximate their current fair values because of their nature and respective maturity dates or durations.


		June 30,		March 31,
		2016		2016
		(Unaudited)

Buildings	$	2,135,680	$	2,203,310
Leasehold improvements		822,003		848,034

Total property, plant and equipment		2,957,683		3,051,344
Less: accumulated depreciation		(252,141)		(239,588)

Total property, plant and equipment, net	$	2,705,542	$	2,811,756

~~Note~~The 2:depreciation ~~Income~~expenses ~~Taxes~~for the three months ended June 30, 2016 and 2015 were $20,260 and $27,634, respectively.

~~The~~Note ~~Company~~3: ~~was~~Mortgage ~~incorporated in the United States and has operations in three tax jurisdictions - the United States, the Hong Kong Special Administrative Region (“HK SAR”), and mainland China.~~loans

USA


		June 30,		March 31,
		2016		2016
		(Unaudited)

Mortgage loans - wholly repayable in year 2024	$	1,362,647	$	1,444,589
Less: current maturities of mortgage loans		(157,791)		(159,706)

Non-current maturities of mortgage loans	$	1,204,856	$	1,284,882

The ~~Company~~aggregate ~~and~~maturities ~~its~~of ~~subsidiaries~~loans ~~are~~payable ~~subject~~of toeach ~~income~~of ~~taxes~~years onsubsequent anto ~~entity~~June ~~basis on income arising in~~30, or2016 ~~derived~~are ~~from,~~as ~~the tax jurisdiction in which they operate. As the Company had no income generated in the United States, there was no tax expense or tax liability.~~follows:

Hong Kong


		(Unaudited)

2017	$	157,791
2018		167,102
2019		180,381
2020		194,713
2021		210,184
2022		452,476
	$	1,362,647

Asia Travel (Hong Kong) was incorporated in Hong Kong and is subject to Hong Kong income taxes. As Asia Travel (Hong Kong) had no income generated in Hong Kong, there was no tax expense or tax liability.

China

Tengda Hotel, Tengfei and Tengda Travel, which were incorporated in the PRC, are governed by the income tax law of the PRC and are subject to PRC enterprise income tax (“EIT”).

Income tax expenses (benefit) consist of the following:

	For the nine months ended December 31,
	2015	2014
Current	$ -	$ -
Deferred	-	-
Total	$ -	$ -

The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of FASB ASC 740. The Company has recorded no deferred tax assets or liabilities as of December 31, 2015, and December 31, 2014. The amount of and ultimate realization of the benefits from the operating loss carry forwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company and other future events, the effects of which cannot be determined at this time. Because of the uncertainty surrounding the realization of the loss carry forwards, the Company has established a valuation allowance equal to the tax effect of the loss carry forwards and, therefore, no deferred tax asset has been recognized for the loss carry forwards.

The Company has no tax positions at December 31, 2015, and December 31, 2014 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the nine months ended December 31, 2015 and 2014, the Company recognized no interest and penalties. The Company had no accruals for interest and penalties at December 31, 2015 and December 31, 2014. Income tax periods 2012, 2013, and 2014 are open for examination by taxing authorities.

Note 3: Long term debt

	December 31, 2015	March 31, 2015
Bank loan - wholly repayable in year 2024	$ 1,471,101	$ 2,169,383
Less: current maturities of long-term debt	(238,342)	(194,934)
Non-current maturities of long-term debt	$ 1,232,759	$ 1,974,449


Bank name	Interest rate	Term
Ping An Bank	Fixed annual rate of 8.52%	From April 24, 2013 to April 23, 2023

As of June 30, 2016 and March 31, 2016, mortgage loans have maturity terms more than 1 year. Interest expenses incurred on ~~long~~mortgage ~~term~~loans ~~debt~~ for the ~~nine~~three months ended ~~December~~June 3130, ~~2015~~2016 and ~~2014~~2015 ~~were~~was $~~119~~27,~~134~~084 and $~~146~~44,~~788~~335, respectively.

~~Buildings with net book value of approximately $2,607,369 and $2,772,300 were used as collateral of bank borrowings as at December 31, 2015 and March 31, 2015, respectively.~~10

Buildings with net book value of approximately $2,007,183 and $2,081,211 were used as collateral of bank borrowings as at June 30, 2016 and March 31, 2016, respectively.

Note 4: Capital Stock

Preferred stock

The Company has 10,000,000 shares of authorized preferred stock at $0.001 par value. As of ~~December~~June 3130, ~~2015~~2016 and March 31, ~~2015~~2016, ~~the~~theCompany ~~Company~~ has 20,000 and 20,000 shares of preferred stock issued and outstanding, respectively.

OnAccounting ~~February 2012 our CEO purchased Series A Preferred Stock~~ for a total price of $20,000. One share of Series A Preferred Stock may be converted into 1,000 shares of Common Stock. The 20,000 shares of Series A Preferred Stock that our CEO, Tan Lung Lai, purchased from the ~~Company may be converted into 20,000,000 shares of Common Stock. The holder of each one share of~~ Series A Preferred Stock ~~is entitled to 1,000 votes. There is no dividend rate for this class of Preferred Stock.~~

~~Common~~The Series A Preferred Stock has been classified as permanent equity as there was no redemption provision at the option of theholders. The Company evaluated the embedded conversion feature in its Series A Preferred Stock to determine if there was anembedded derivative requiring bifurcation. The Company concluded that the embedded conversion feature of the Series A PreferredStock is not required to be bifurcated because the conversion feature is clearly and closely related to the host instrument. TheCompany believes the economic risks and characteristics of the Series A Preferred Stock itself and the common stock the embeddedconversion feature allows the Investor to convert into have similar economic risks and characteristics.

~~On July 22, 2013 the Company entered into a Regulation S~~ Stock ~~Purchase Agreement (“Agreement”) with a group of 34 non~~-USBased individual purchasers (“Purchasers”). Under the Agreement, the Company will issue a total of 125,788,400 shares of common stock to Purchasers for a total price of $628,943 ($0.005 per share). The issuance of the 125,788,400 shares is pursuant to the exemption provided by Regulation S. None of the Purchasers is a US person and the transactions underlying the Agreement are carried out outside US. Accordingly, July 29, 2013, 125,788,400 shares of common stock have been issued.Compensation

~~Note~~The 5Company accounts for stock-based compensation under FASB ASC subtopic 718-10, Compensation – Stock Compensation:Overall. ~~Pro~~Under ~~Forma~~FASB ~~Statement~~Subtopic 718-10, the Company measures the cost of the employee services received in exchange for an award ofequity instruments based on the grant-date fair value of the award and recognizes the cost over the requisite service periods.

OnCommon November 22, 2012, Asia Travel’s wholly owned subsidiary Asia Travel (Hong Kong) entered into a Lease Management Agreement (“Lease Management Agreement”) with Tengfei Investment. Under the Lease Management Agreement, Tengfei Investment leased the managerial and operating rights of Tengda Travel, a wholly owned subsidiary of Tengfei Investment, to Asia Travel (Hong Kong).Stock

On ~~November~~July 2522, ~~2012,~~2013 ~~Asia~~the ~~Travel~~Company ~~(Hong Kong)~~ entered into ana ~~Ownership~~Regulation ~~Transfer~~S Stock Purchase Agreement (“~~Ownership Transfer~~ Agreement’”) with ~~Tengfei~~a ~~Investment~~group of 34 non-US individual purchasers (“Purchasers”). Under the ~~Ownership~~Agreement, ~~Transfer~~the ~~Agreement~~Company will issue a total of 125,788,400 ~~Tengfei~~shares ~~Investment~~of ~~transfers~~common stock to ~~Asia~~Purchasers ~~Travel~~for a total price of $628,943 (~~Hong~~$0.005 ~~Kong~~per share). ~~100%~~The issuance of the ~~ownership~~125,788,400 shares is pursuant to the exemption provided by Regulation S. None of ~~Tengda~~the ~~Hotel~~Purchasers ~~for~~is a ~~total~~US ~~transfer~~person ~~price~~and ofthe ~~RMB~~transactions ~~400~~underlying the Agreement are carried out outside US. Accordingly,~~000~~ ~~(approximately~~July ~~$64~~29,~~000).~~2013, 125,788,400 shares of common stock have been issued.

~~Pro~~Note ~~Forma~~5: ~~Financial~~Income ~~Information~~Taxes

9Asia Travel Corporation is incorporated in the United States and subject to income taxes on an entity basis on income arising in, or derived from, the tax jurisdiction in which they operate. As the Company had no income generated in the United States, there was no tax expense or tax liability for the three months ended June 30, 2016 and 2015.

~~Acquisition~~Asia ofTravel ~~Tengda~~(Hong ~~Hotel~~Kong) Limited was incorporated in Hong Kong and is subject to Hong Kong profits tax at 16.5%. No provision for Hong Kong income or profit tax has been made as the Company has no assessable profit for the three months ended June 30, 2016 and 2015.

~~The~~Tengda ~~unaudited~~Hotel ~~pro~~was ~~forma~~incorporated ~~financial~~in ~~information presented below summarizes~~ the ~~consolidated~~PRC. ~~operating~~Tengda ~~results~~Hotel ofdid ~~the~~not ~~Company~~generate ~~and~~taxable ~~Tengda~~income ~~Hotel~~in ~~and~~the ~~Tengda~~PRC ~~Travel~~ for the three months ended June 30, ~~2012,~~2016 asand ~~if the acquisition had occurred on April 1, 2012~~2015.

~~The~~Tengfei ~~pro~~was ~~forma~~incorporated ~~financial~~in ~~information~~the isPRC. ~~presented~~Tengfei ~~for~~did ~~informational purposes only and is~~ not ~~necessarily~~generate ~~indicative~~taxable ofincome in the ~~results~~PRC offor ~~operations that would have been achieved had~~ the ~~acquisition~~three ~~taken~~months ~~place~~ended onJune ~~April 1~~30, ~~2012.~~2016 ~~The unaudited pro forma consolidated statements of operations combine the historical results of the Company~~ and ~~the historical results of the acquired entity for the periods described above~~2015.

Asia Travel Corporation Unaudited Pro Forma Statement of Operations and Comprehensive Income For the nine months ended December 31, 2012
	Asia Travel	Historical combined Tengda Hotel and Tengda Travel	Adjustments	Combined Pro Forma
Revenue	$ 48,431	145,190		$193,621
Net loss	$ (225,777)	(21,836)	(12,000)	$(259,613)
Loss per share – basic and diluted		$(0.02)		$(0.02)
Weighted average number of common shares		13,770,465		13,770,465

Tengda Travel was incorporated in the PRC. Tengda Travel did not generate taxable income in the PRC for the three months ended June 30, 2016 and 2015.

~~Note:~~The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the three months ended June 30, 2016 and 2015, the Company had no unrecognized tax benefits.

~~The currency exchange rate is based on the average exchange rate of the related period.~~11

~~(1)~~The Company does not anticipate any significant increase to its liability for unrecognized tax benefit within the next 12 months. The Company will classify interest and penalties related to income tax matters, if any, in income tax expense.

The historical operating results of the Company were based on the Company’s financial statements for the nine months ended December 31, 2012.


		Three Months Ended June 30,
		2016		2015
Income tax expense is comprised of:		(Unaudited)

Current income tax	$	-	$	-
Deferred income tax		-		-
Total provision for income tax	$	-	$	-

~~(2)~~Deferred income taxes are recognized for tax consequences in future years of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carryforwards. Deferred income tax was measured using the enacted income tax rates for the periods in which they are expected to be reversed. The tax effects of temporary differences that give rise to the following approximate deferred tax assets and liabilities as of June 30, 2016 and March 31, 2016 are presented below:

The historical information of Tengda Hotel and Tengda Travel were derived from the books and the records of Tendga Hotel and Tengda Travel for the nine months ended December 31, 2012.


		June 30,		March 31
		2016		2016
		(Unaudited)

Operating loss carryforward	$	-	$	-
Accrued tax expense		8,692		8,967
Deferred tax liabilities	$	8,692	$	8,967

~~(3)~~Note 6: Loss per share

~~Pro~~The ~~forma~~following ~~adjustment~~table ~~was~~presents ~~based~~a onreconciliation ~~the~~of ~~assumption~~basic ~~that~~and ~~there~~diluted ~~are~~net ~~lease~~loss ~~expense USD4,000~~ per ~~quarter.~~share (unaudited):

Acquisition of Tengfei Investment


		Three Months Ended June 30,
		2016		2015

Net loss available to common stockholders for basic and diluted net loss per share of common stock	$	(48,558)	$	(456,347)

Denominator
Basic		177,748,501		177,748,501
Conversion of preferred stock		20,000,000		20,000,000
Anti-dilutive effect of preferred stock		(20,000,000)		(20,000,000)
Weighted average common stock outstanding – diluted		177,748,501		177,748,501

Loss per common stock – basic and diluted	$	(0.00)	$	(0.00)

OnNote ~~November~~7: Related 6,parties 2013, Tengda Hotel entered into an Ownership Transfer Agreement (“Ownership Transfer Agreement”) with Zhou Hui Juan and Yu Li Ying. Under the Ownership Transfer Agreement, Zhou Hui Juan and Yu Li Ying transfers to Tengda Hotel 100% of the ownership of Tengfei Investment for a total transfer price of RMB5,000,000 (approximately $820,309).transactions

~~The~~7.1 ~~excess~~Related ~~fair value of net assets acquired over the purchase price was recorded as goodwill impairment.~~parties

OnName ~~January~~of ~~22,~~related ~~2014,~~parties Relationship with the ~~Bureau~~Company Mr. Tan Lung Lai Shareholder of ~~Science~~the ~~and~~Company ~~Technology~~Mr. ~~Industry~~Li ~~Trade~~Guo ~~and~~Hua ~~Information~~Shareholder of ~~Zhuhai~~the ~~City~~Company ~~approved~~Ms. ~~the~~Zhou ~~ownership~~Hui ~~transfer~~Juan Shareholder of ~~Tengfei~~the ~~Investment~~Company toMs. ~~Tengda~~Yu ~~Hotel.~~Li Ying Mother-in-law of shareholder of the Company

~~Upon~~7.2 ~~the~~Related ~~completion~~party ~~of the said ownership transfer, Tengfei Investment becomes the wholly owned subsidiary of Tengda Hotel.~~balances

~~Note~~The 6:Company ~~Related~~had ~~Party~~the ~~Payables/~~following ~~(Receivables)~~related party balances at June 30, 2016 and March 31, 2016:

Section 13(k) of the Exchange Act provides that it is unlawful for a company such as ours, which has a class of securities registered under Section 12(g) of the Exchange Act, to directly or indirectly, including through any subsidiary, extend or maintain credit in the form of a personal loan to or for any director or executive officer of the company. Issuers violating Section 13(k) of the Exchange Act may be subject to civil sanctions, including


		June 30,		March 31,
		2016		2016
		(Unaudited)

Loan from Mr. Tan Lung Lai	$	1,215,321	$	1,215,321
Loan from Mr. Li Guo Hua		678,360		709,941
Loan from Ms. Zhou Hui Juan		624,672		603,707
Loan from Ms. Yu Li Ying		560,037		577,772
Total related party payables	$	3,078,390	$	3,106,741

10The related party payables are noninterest bearing and have no specified maturity date. The Company obtained these loans to fund operations when the Company or one of the subsidiaries was in need of cash. For the three months ended June 30, 2016 and years ended March 31, 2016, the Company loan from Mr. Tan Lung Lai $nil and $1,250,779, and made payments of $nil and $nil back to him, respectively.

~~injunctive~~For ~~remedies~~the ~~and~~three ~~monetary~~months ~~penalties,~~ended asJune ~~well~~30, as2016 ~~criminal~~and ~~sanctions.~~years ~~The~~ended ~~imposition~~March of31, ~~any~~2016, ~~of such sanctions on~~ the Company ~~may~~loan ~~have~~from aMr. ~~material~~Li ~~adverse~~Guo ~~effect~~Hua on$nil ~~our~~and ~~business~~$88,972, ~~financial~~and ~~position,~~made ~~results~~payments of ~~operations~~$31,581 orand ~~cash~~$152,255 ~~flows~~back to him, respectively.

AsFor ofthe ~~December~~three 31months ended June 30, ~~2015~~2016 and years ended March 31, ~~2015~~2016, the ~~indebtedness~~Company ofloan ~~the~~from ~~Company~~Ms. toZhou ~~its~~Hui ~~shareholders~~Juan $20,965 and ~~related~~$766,598, ~~entities~~and ~~with~~made ~~common~~payments ~~owners~~of $nil and ~~directors~~$653,491 ~~were~~back asto ~~follows:~~him, respectively.

AsFor ~~of December 31, 2015,~~ the ~~Company~~three ~~has~~months ~~payables~~ended ~~due~~June ~~to its shareholders of $4~~30,~~094,637,~~ 2016 and asyears ofended March 31, ~~2015~~2016, the Company ~~has~~loan ~~receivables~~from ~~due~~Ms. ~~from~~Yu ~~its~~Li ~~shareholders~~Ying of$nil and $35nil,~~458.~~ ~~The loans are unsecured~~ and ~~bear~~made nopayments ~~interest. These~~of ~~loans~~$17,735 ~~have~~and no$355,022 ~~fixed~~back ~~payment~~to ~~terms~~him, respectively.

Note 78: ~~Operating~~Commitments ~~Risk~~and contingencies

~~Foreign~~Operating ~~currency risk~~Lease

~~Most~~Significant ofcommitment ~~the~~as ~~transactions~~at ofJune ~~the Company were settled in Renminbi. In the opinion of the management~~30, ~~the~~2016 ~~Company~~is ~~does~~as ~~not have significant foreign currency risk exposure.~~ follows:

Company’s operations are substantially in foreign countries


		(Unaudited)
Twelve months ended June 30,
2017	$	76,705
2018		105,783
2019		108,289
Thereafter		171,458
Total future minimum lease payments	$	462,235

~~Substantially~~Total ~~all~~rental ofexpense on the ~~Company’s~~operating ~~operations~~lease ~~are~~were ~~processed in China. The Company’s operations are subject to various political~~$26,024 ~~economic,~~ and ~~other risks and uncertainties inherent in China. Among other risks~~$27,424 ~~the~~for ~~Company’s operations are subject to~~ the ~~risks~~three ofmonths ~~restrictions~~ended onJune ~~transfer of funds; export duties~~30, ~~quotas,~~2016 and ~~embargoes;~~2015, ~~domestic and international customs and tariffs; changing taxation policies; foreign exchange restrictions; and political conditions and governmental regulations~~respectively.

~~Note~~Legal ~~8: Operating Lease~~Proceeding

~~The~~There ~~Company's~~has ~~commitments~~been asno oflegal ~~December~~proceeding ~~31,~~in ~~2015~~which ~~did not materially change from~~ the ~~amounts~~Company ~~set~~is ~~forth~~a inparty ~~the~~as ~~Company's~~of ~~2015~~June ~~Annual~~30, ~~Report on Form 10-K~~2016.

Total rental expense on the operating lease amounted to $18,097 and $79,498 for nine months ended December 31, 2015 and 2014.

Note 9: Segments Reporting

The Company operates in two segments: travel agency (which provides packaged tours, air ticketing, reservation of hotel rooms and golf courses and organize corporate conferences, exhibitions and show events for its customers and travel agency) and hotel services. There were no inter-segment sales for the three months ended June 30, 2016 and 2015 (unaudited).

We allocate resources to and assess the performance of the reportable segment using information about revenues and operating income (loss). We do not evaluate operating segment using discrete assets information. We do not allocate gains and losses from interest and other income, or taxes to operating segments. The Corporate and other category includes expense and charges such as corporate costs, finance and legal and stock based compensation expenses.


	Three months ended June 30,		Net sales		Segment profit/ (loss) pre-tax		Total assets
Hotel Services	2016	$	79,516	$	(47,888)	$	2,710,540
Travel Agency	2016		55,307		(670)		18,301
Company	2016		-		-		6,916
Total		$	134,823	$	(48,558)	$	2,735,757

There were no inter-segment sales for the nine months ended December 31, 2015 and 2014.


	Three months ended June 30,		Net sales		Segment profit/ (loss) pre-tax		Total assets
Hotel Services	2015	$	67,952	$	(49,692)	$	3,925,309
Travel Agency	2015		55,083		(2,427)		106,606
Company	2015		-		(404,228)		7,073
Total		$	123,035	$	(456,347)	$	4,038,988

	Nine months ended December 31	Net sales	Operating income (loss)
Hotel services	2015	200,370	(128,302)
	2014	270,932	(150,875)
Travel agency	2015	189,210	(618)
	2014	327,114	1,299
Corporate	2015	-	(1,289,638)
	2014	-	(742,902)
Total	2015	389,580	(1,418,558)
	2014	598,046	(892,478)

Note 10: Subsequent Event

~~Note~~There ~~10:~~were ~~Commitments~~no ~~and~~events ~~Contingencies~~or transactions other than those disclosed in this report, if any, that would require recognition or disclosure in our financial statements for the three months ended June 30, 2016.

~~Litigation~~14

In August 2015, the Company received the summons and complaint filed by Allison Carr (“Plaintiff”) in the Judicial District Court for Salt Lake County, State of Utah. The Company was named as one of the defendants by the Plaintiff. The Plaintiff is the ex-wife of Curtis S. Olsen, a former officer of the Company. The Plaintiff claimed that Curtis Olsen and Kip Eardley, another former officer of the Company, wrongfully transferred the shares of the Company held by Curtis Olsen. The Plaintiff claimed that the shares in question were transferred to an entity controlled by Kip Eardley below the fair value. The Plaintiff alleged that Curtis Olsen and Kip Eardley transferred the shares with intent to hide the assets from the Plaintiff amid the divorce proceedings. The Company has engaged a Utah counsel to represent us in the lawsuit.

Note 11: Subsequent Event

The Company has evaluated subsequent events through the date the financial statements were available to be issued. No significant events occurred subsequent to the balance sheet date that would have a material impact on the consolidated financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Special Note Regarding Forward-Looking Statements

This periodic report contains certain forward-looking statements with respect to the Plan of Operation provided below, including information regarding the Company’s financial condition, results of operations, business strategies, operating efficiencies or synergies, competitive positions, growth opportunities, and the plans and objectives of management. The statements made as part of the Plan of Operation that are not historical facts are hereby identified as "forward-looking statements."

Management's Discussion and Analysis or Plan of Operation

Overview

star hotel with 59 guest rooms, including 24 Standard Rooms, 24 Deluxe Rooms, 10 Business Rooms and 1 Luxury Suite, with many other amenities including fitness club, gym, business center, gift shop, meeting room , ballroom, game room, and a large parking lot.

Upon the completion of the said ownership transfer, Tengda Hotel became the wholly owned subsidiary of Asia Travel (Hong Kong).

On November 6, 2013, Tengda Hotel entered into an Ownership Transfer Agreement (“Ownership Transfer Agreement’) with Zhou Hui Juan and Yu Li Ying. Under the Ownership Transfer Agreement, Zhou Hui Juan ~~and Yu Li Ying transfers to Tengda Hotel 100% of the ownership of Tengfei Investment for a total transfer price of RMB5,000,000 (approximately $820,309).~~

and Yu Li Ying transfers to Tengda Hotel 100% of the ownership of Tengfei Investment for a total transfer price of RMB5,000,000 (approximately $820,309).

On January 22, 2014, the Bureau of Science and Technology Industry Trade and Information of Zhuhai City approved the ownership transfer of Tengfei Investment to Tengda Hotel.

In the ~~nine~~threemonths ~~months~~ ended ~~December~~June 3130, ~~2015~~2016, revenue from our Tengda Hotel, Tengfei Investment and Tengda Travel represented ~~28.62~~35%, ~~22.81~~24% and ~~48.57~~41% of our revenue, respectively. We do not have any operations other than acting as a holding entity during the nine months ended ~~December~~June 3130, ~~2015~~2016.

Results of Operations and Business Outlook

Net sales ~~decreased~~increased by $~~186~~11,~~919~~788 or ~~59.88~~10% to $~~125~~134,~~260~~823 for the three months ended ~~December~~June 3130, ~~2015~~2016from ~~from~~ $~~312~~123,~~179~~035 for the three months ended ~~December~~June 3130, ~~2014, and $208,466 or 34~~2015.~~86%~~ toFor ~~$389,580 for~~ the ~~nine~~three months ended ~~December~~June 3130, ~~2015 from $598~~2016,~~046~~ ~~for the nine months ended December 31, 2014. Among this amount,~~ $6646,~~537~~835 was generated from ~~hotel~~the ~~service~~Tengda ~~and~~Hotel, $5832,~~723~~681 was generated from ~~travel agency for~~ the ~~three~~Tengfei ~~months~~Investment ~~ended December 31, 2015,~~ and $~~200~~55,~~370~~307was ~~was~~ generated from ~~hotel~~Tengda ~~service~~Travel. ~~and~~For ~~$189,210 was generated from travel agency for~~ the ~~nine~~three months ended ~~December~~June 3130, 2015~~. $84~~,~~794~~ ~~was generated from hotel service and~~ $~~227~~33,~~385~~749 was generated from ~~travel agency for~~ the ~~three~~Tengda ~~months ended December 31~~Hotel, ~~2014, and~~ $~~270~~34,~~932~~203 was generated from ~~hotel~~the ~~service~~Tengfei Investment and $~~327~~55,~~114~~083 was generated from ~~travel~~Tengda ~~agency for the nine months ended December 31, 2014~~Travel.

Cost of goods ~~sold~~soldincreased ~~decreased~~ by $~~129~~24,~~918~~524 or ~~72.63~~49% to $4874,~~968~~168 for the three months ended ~~December~~June 3130, ~~2015~~2016from ~~from~~ $~~178~~49,~~886~~644 for the three months ended ~~December~~June 3130, ~~2014, and $141,774 or 46.09% to $165,861 for the nine months ended December 31,~~ 2015 ~~from $307,635 for the nine months ended December 31, 2014~~. The ~~decrease~~increase was due to the ~~decrease~~increase inthe ~~volume~~sublet ~~of sales~~cost. Gross profit margin in percentage for the three months ended ~~December~~June 3130, 2016and 2015 ~~and 2014~~ was ~~63.30~~45% and ~~42.70~~60% respectively,. ~~and~~Significant ~~for~~portions ~~the~~of ~~nine~~our ~~months~~operating ~~ended~~costs ~~December~~are 31from Tengfei, ~~2015~~which ~~and~~are ~~2014~~fixed ~~was 57~~costs.~~43% and 48.56% respectively.~~ Our operating expenses decreased by $~~545~~403,~~710~~274or ~~or 87.80~~83% to $7582,~~843~~145 for the three months ended ~~December~~June 3130, ~~2015~~2016from ~~from~~ $~~623~~485,~~185~~419for ~~for~~ the three months ended ~~December~~June 3130, ~~2014, and increased by $487,027 or 47.00% to $1,523,188 for the nine months ended December 31,~~ 2015 ~~from $1,036,161 for the nine months ended December 31, 2014~~. The decrease in operating expenses ~~for the three months ended December 31, 2015~~ is mainly due to adeductthe ~~decrease in~~ advertising and promotion cost from corporate. ~~The increase in operating expenses for the nine months ended December 31, 2015 is mainly due to the loan interest from Tengfei Investment and advertising and promotion cost from corporate.~~ Our operating expenses consist of general and administrative and selling expenses.

Net loss decreased by $~~503~~407,~~425~~789or ~~or 93.56~~89% to $3448,~~663~~558 for the three months ended ~~December~~June 3130, ~~2015~~2016from ~~from~~ $~~538~~456,~~088~~347for ~~for~~ the three months ended ~~December~~June 3130, ~~2014~~2015. Among this amount, ~~and~~net ~~increased~~loss byof $~~526~~25,~~080~~697 orwas ~~58.95%~~generated tofrom the Tengda Hotel, net loss of $122,~~418,558~~191 ~~for~~was generated from the ~~nine~~Tengfei ~~months~~Investment ~~ended~~and ~~December~~net ~~31,~~loss ~~2015~~of $670 from ~~$892,478~~Tengda Travel for the ~~nine~~three months ended ~~December~~June 3130, ~~2014. Among~~2016, ~~this~~and ~~amount,~~Corporate ~~net~~loss of $nil. Net loss of $365,~~643~~125 was generated from ~~hotel~~the ~~services~~Tengda ~~and~~Hotel, net ~~income~~loss of $144,~~980~~567 was generated from the ~~travel~~Tengfei ~~agency~~Investment and net loss of $2,427 from Tengda Travel for the three months ended ~~December~~June 3130, 2015,and Corporate loss of $404,228. ~~For~~The ~~the~~decrease ~~nine~~in ~~months~~net ~~ended~~loss is mainly due to decrease in operating expenses related to advertising and promotion.

December 31, 2015, net loss of $128,302 was generated from hotel services and net loss of $618 from travel agency, and Corporate loss of $1,289,638. Net loss of $36,685 was generated from hotel services, and net income of $404 was generated from the travel agency for the three months ended December 31, 2014, and Corporate loss of $501,807. For the nine months ended December 31, 2014, net loss of $150,875 was generated from hotel services and net income of $1,299 from travel agency, and Corporate loss of $742,902. The decrease in net loss for the three months ended December 31, 2015 is mainly due to a decrease in operating expenses related to advertising and promotion. The increase in net loss for the nine months ended December 31, 2015 is mainly due to an increase in operating expenses related to advertising and promotion.

Liquidity and capital resources

We financed our operations and expansion from cash flow from operations and contribution from our shareholders. The table below sets forth certain items on our balance sheet reflecting the changes to our financial condition as of ~~December~~June 3130, ~~2015~~2016from ~~from~~ our financial condition as of March 31, ~~2015~~2016.

	As of December 31 2015	As of March 31 2015	Change
	As of June 30 2016	As of March 31 2016	Change
Current assets	~~189~~21,~~669~~708	~~277~~22,~~133~~185	(312.5615%)
Non-current assets	32,~~638~~705,~~849~~542	32,~~930~~811,~~163~~756	(73.4178%)
Current liabilities	43,~~337~~249,~~158~~795	23,~~578~~280,~~986~~492	68(0.1794%)
Non-current liabilities	1,~~232~~204,~~759~~856	1,~~974~~284,~~449~~881	(376.5623%)

~~Current~~Non-current assets were $~~189~~2,~~669~~705,542 as of ~~December~~June 3130, ~~2015~~2016, a decrease of 313.5678% from $~~277~~2,~~133~~811,756 as of March 31, 2015. The decrease was primarily from the ~~cash~~depreciation ~~received dropped from their hotel revenue~~ during ~~nine~~three months ended ~~December~~June 3130, ~~2015~~2016.

Current liabilities were $4,337,158 as of December 31, 2015, an increase of 68.17% from $2,578,986 as of March 31, 2015. The increase was primarily from the increase in related party payable during nine months ended December 31, 2015.16

Non-current liabilities were $1,204,856 as of June 30, 2016, a decrease of 6.23% from $1,284,881 as of March 31, 2015. The decrease was primarily from the repayment of loan during three months ended June 30, 2016.

Critical Accounting Policies and Estimates

Management's Discussion and Analysis of Financial Condition and Results of Operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Our significant accounting policies are discussed in Note 2 "Summary of Significant Accounting Policies" in the notes to the consolidated financial statements included in our ~~2014~~2016Annual ~~Annual~~ Report on Form 10-K for the year ended March 31, ~~2015~~2016, as filed with the U.S. Securities and Exchange Commission (“SEC”) on ~~June~~July 264, ~~2015~~2016. During the ~~nine~~three months ended ~~December~~June 3130, ~~2015~~2016 the Company did not change any of its critical accounting policies or estimates.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

N/A-Smaller Reporting Company

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, consisting of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report were not effective such that the information required to be disclosed by us in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding disclosure. A controls system cannot provide absolute assurance, however, that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

15We may have inadvertently violated Section 402 of the Sarbanes-Oxley and Section 13(k) of the Exchange Act and may be subject to sanctions for such violations.

~~and~~Section ~~communicated~~13(k) toof ~~our~~the ~~management,~~Exchange ~~including~~Act ~~our~~provides ~~Chief~~that ~~Executive~~it ~~Officer~~is ~~and~~unlawful ~~Chief~~for ~~Financial~~a ~~Officer,~~company such as ~~appropriate~~ours, towhich ~~allow~~has ~~timely~~a ~~decisions~~class ~~regarding~~of ~~disclosure.~~securities Aregistered ~~controls~~under ~~system~~Section ~~cannot~~12(g) ~~provide~~of ~~absolute~~the ~~assurance~~Exchange Act, ~~however~~to directly or indirectly, ~~that~~including through any subsidiary, extend or maintain credit in the ~~objectives~~form of a personal loan to or for any director or executive officer of the ~~controls~~company. ~~system~~Issuers ~~are~~violating ~~met~~Section 13(k) of the Exchange Act may be subject to civil sanctions, including injunctive remedies and nomonetary ~~evaluation~~penalties, as well as criminal sanctions. The imposition of ~~controls~~any ~~can~~of ~~provide~~such ~~absolute~~sanctions ~~assurance~~on ~~that~~the ~~all~~Company ~~control~~may ~~issues~~have ~~and~~a ~~instances~~material ofadverse ~~fraud~~effect on our business, iffinancial ~~any~~position, ~~within~~results aof ~~company~~operations ~~have~~or ~~been~~cash ~~detected~~flows.

WeManagement’s ~~may~~Report ~~have~~on ~~inadvertently~~Internal ~~violated~~Control ~~Section~~over ~~402~~Financial ~~of the Sarbanes-Oxley and Section 13(k) of the Exchange Act and may be subject to sanctions for such violations.~~Reporting

~~Section~~Our ~~13(k)~~management ~~of the Exchange Act provides that it~~ is ~~unlawful~~responsible for aestablishing ~~company~~and ~~such~~maintaining asadequate ~~ours,~~internal ~~which~~control ~~has~~over afinancial ~~class~~reporting of(as ~~securities~~defined ~~registered~~in ~~under~~Rule ~~Section 12~~13a-15(gf) ofunder the Exchange Act,). toOur ~~directly~~internal orcontrol ~~indirectly,~~over ~~including~~financial ~~through~~reporting ~~any~~is ~~subsidiary, extend or maintain credit in the form of~~ a ~~personal~~process ~~loan~~designed to orprovide ~~for~~reasonable ~~any~~assurance ~~director~~regarding ~~or executive officer of~~ the ~~company.~~reliability ~~Issuers violating Section 13(k)~~ of ~~the~~financial ~~Exchange~~reporting ~~Act may be subject to civil sanctions, including injunctive remedies~~ and ~~monetary~~the ~~penalties,~~preparation ~~as well as criminal sanctions. The imposition~~ of ~~any~~financial ofstatements ~~such~~for ~~sanctions~~external onpurposes ~~the~~in ~~Company~~accordance ~~may~~with ~~have~~accounting aprinciples ~~material~~generally ~~adverse~~accepted ~~effect~~in onthe ~~our~~United ~~business, financial position, results of operations or cash flows~~States.

~~Management’s~~Because ~~Report~~of onits ~~Internal~~inherent ~~Control~~limitations, internal control over ~~Financial~~financial ~~Reporting~~reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.

~~Our~~Changes ~~management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined~~ in ~~Rule 13a-15(f) under the Exchange Act). Our~~ internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.17

~~Changes~~There have been no changes in internal control over financial reporting.

~~There have been no changes in internal control over financial reporting.~~18

16PART II - OTHER INFORMATION

~~PART~~Item II1.Legal ~~- OTHER INFORMATION~~Proceedings

~~Item 1. Legal Proceedings~~None

InItem ~~August 2015, we received the summons and complaint filed by Allison Carr (“Plaintiff”) in the Judicial District Court for Salt Lake County, State of Utah~~1A. WeRisk were named as one of the defendants by the Plaintiff. The Plaintiff is the ex-wife of Curtis S. Olsen, a former officer of the Company. The Plaintiff claimed that Curtis Olsen and Kip Eardley, another former officer of the Company, wrongfully transferred the shares of the Company held by Curtis Olsen. The Plaintiff claimed that the shares in question were transferred to an entity controlled by Kip Eardley below the fair value. The Plaintiff alleged that Curtis Olsen and Kip Eardley transferred the shares with intent to hide the assets from the Plaintiff amid the divorce proceedings. We have engaged a Utah counsel to represent us in the lawsuit.Factors

~~Item~~N/A-Smaller ~~1A.~~Reporting ~~Risk Factors~~Company

~~N/A-Smaller~~Item ~~Reporting~~2.Unregistered ~~Company~~Sales of Equity Securities and Use of Proceeds

~~Item~~On 2July 22, 2013, the Company entered into a Regulation S Stock Purchase Agreement (“Agreement”) with a group of 34 non-US individual purchasers (“Purchasers”). ~~Unregistered~~Under ~~Sales~~the Agreement, the Company issued a total of ~~Equity~~125,788,400 ~~Securities~~shares of common stock to Purchasers for a total price of $628,943 ($0.005 per share). The issuance of the 125,788,400 shares is pursuant to the exemption provided by Regulation S. None of the Purchasers is a US person and ~~Use~~the transactions underlying the Agreement are carried out outside US. Accordingly, July 29, 2013 125,788,400 shares of ~~Proceeds~~common stock have been issued.

OnUse ~~July 22, 2013, the Company entered into a Regulation S Stock Purchase Agreement (“Agreement”) with a group~~ of 34Proceeds ~~non-US individual purchasers (“Purchasers”). Under the Agreement, the Company issued a total~~ of ~~125,788,400~~Registered shares of common stock to Purchasers for a total price of $628,943 ($0.005 per share). The issuance of the 125,788,400 shares is pursuant to the exemption provided by Regulation S. None of the Purchasers is a US person and the transactions underlying the Agreement are carried out outside US. Accordingly, July 29, 2013 125,788,400 shares of common stock have been issued.Securities

~~Use~~None: ofnot ~~Proceeds of Registered Securities~~applicable.

~~None:~~Purchases ~~not~~of ~~applicable.~~Equity Securities by Us and Affiliated Purchasers

~~Purchases~~During ofthe ~~Equity~~three ~~Securities~~months byended UsJune ~~and~~30, ~~Affiliated~~2016we ~~Purchasers~~have not purchased any equity securities.

~~During~~Item ~~the~~3.Defaults ~~nine~~Upon ~~months~~Senior ~~ended December 31, 2015 we have not purchased any equity securities.~~Securities

~~Item~~We 3.are ~~Defaults~~not ~~Upon~~aware ~~Senior~~of ~~Securities~~any defaults upon senior securities.

WeItem ~~are~~4.Mine ~~not~~Safety ~~aware of any defaults upon senior securities.~~Disclosures

~~Item 4. Mine Safety Disclosures~~None

~~None~~Item 5.Other Information

~~Item 5. Other Information~~None

~~None~~Item 6: Exhibits

~~Item~~Index 6:of Exhibits:

Index of Exhibits:


Exhibit Table #	Title of Document	Location
3 (i)	Articles of Incorporation	Incorporated by reference*
3 (ii)	Bylaws	Incorporated by reference*
4	Specimen Stock Certificate Incorporated by reference*
31	Rule 13a-14(a)/15d-14a(a) Certification – CEO & CFO This filing
32	Section 1350 Certification – CEO & CFO This filing
101	INS XBRL Instance
101	XSD XBRL Schema
101	CAL XBRL Calculation
101	DEF XBRL Definition
101	LAB XBRL Label
101	PRE XBRL Presentation

Exhibit Table #	Title of Document	Location
3 (i)	Articles of Incorporation	Incorporated by reference*
3 (ii)	By laws	Incorporated by reference*
4	Specimen Stock Certificate Incorporated by reference*
31	Rule 13a-14(a)/15d-14a(a) Certification – CEO & CFO This filing
32	Section 1350 Certification – CEO & CFO This filing
101	INS XBRL Instance
101	XSD XBRL Schema
101	CAL XBRL Calculation
101	DEF XBRL Definition
101	LAB XBRL Label
101	PRE XBRL Presentation

* Incorporated by reference from the Company's registration statement on Form 10-SB filed with the Commission, SEC File No. 000-21909.

* Incorporated by reference from the Company's registration statement on Form 10-SB filed with the Commission, SEC File No. 000-21909.19

18SIGNATURES

~~SIGNATURES~~Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

~~Pursuant~~Asia toTravel ~~the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.~~Corporation

~~Asia Travel Corporation~~(Registrant)

~~(Registrant)~~Dated: August 19, 2016

~~Dated~~By: /s/ ~~February~~Tan ~~12,~~Lung ~~2016~~Lai

~~By: /s/~~ Tan Lung Lai

~~Tan~~Chief ~~Lung~~Executive ~~Lai~~Officer

Chief ~~Executive~~Financial Officer

~~Chief Financial Officer~~20

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