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 ~~September~~December 3031, 2020

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

For the transition period from _________ to _________

Commission file number: 333-150952

China Media Inc.

(Exact name of registrant as specified in its charter)


Nevada		46-0521269
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Room 10128, No. 269-5-1 Taibai South Road,

Yanta District, Xi'an City, Shaan'xi Province, China

710068

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (86) 298765-1114

Check whether the issuer (1) 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 issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days [X] Yes [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-K (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [X] Yes [ ] 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.


[ ] Large accelerated filer Accelerated filer	[X] Non-accelerated filer
[X] Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[ ] Yes [X] No

As of February ~~November 16~~9, ~~2020~~2021, the registrant had 39,750,000 shares of common stock outstanding.

Table of Contents


PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

The unaudited interim consolidated financial statements of China Media Inc. (the “Company”, “China Media”, “we”, “our”, “us”) follow. All currency references in this report are to U.S. dollars unless otherwise noted.

CHINA MEDIA INC.

~~SEPTEMBER~~DECEMBER 3031, 2020

(UNAUDITED)

Financial Statement Index

Consolidated Balance Sheets as of ~~September~~December 3031, 2020 (Unaudited) and June 30, 2020 Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended ~~September~~December 3031, 2020 and 2019 (Unaudited) Consolidated Statements of Changes in Stockholders’ Deficit for the three and six months ended ~~September~~December 3031, 2020 and 2019 (Unaudited) Consolidated Statements of Cash Flows for the ~~three~~six months ended ~~September~~December 3031, 2020 and 2019 (Unaudited) Notes to the Consolidated Financial Statements (Unaudited)

CHINA MEDIA INC. CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS


		DECEMBER 31, 2020		JUNE 30, 2020
Assets			(Unaudited)
Current assets
	Cash and cash equivalents	$ 1,480		$ 1,351
	Other receivable, net of allowance of $124,260 and $114,758 at December 31, 2020 and June 30, 2020, respectively	3,976		3,671
Total current assets		5,456		5,022

	Fixed assets, net	365		338
	Operating lease right-of-use asset – related party	38,906		44,385

Total assets		$ 44,727		$ 49,745

Liabilities and Stockholders' Deficit
Current liabilities
	Accounts payable	$ 9,231		$ 14,224
	Accrued liabilities and other payable	365,403		336,855
	Accrued liabilities – related party	46,268		42,730
	Operating lease liability, current – related party	80,572		64,514
	Due to related party	981,319		802,766
Total current liabilities		1,482,793		1,261,089

Operating lease liability, non-current – related party		19,922		27,270

Total liabilities		1,502,715		1,288,359

Stockholders' deficit
	Common stock, $0.00001 par value, 180,000,000 shares authorized; 39,750,000 shares issued and outstanding at December 31, 2020 and June 30, 2020	398		398
	Additional paid-in capital	11,366,887		11,350,321
	Accumulated other comprehensive income	555,628		662,118
	Accumulated deficit	(13,380,901)		(13,251,451)
Total stockholders' deficit		(1,457,988)		(1,238,614)

Total liabilities and stockholders' deficit		$ 44,727		$ 49,745

			SEPTEMBER 30, 2020	JUNE 30, 2020
Assets			(Unaudited)
	Current assets
		Cash and cash equivalents	$ 1,705	$ 1,351
		Other receivable, net of allowance of $119,261 and $114,758 at September 30, 2020 and June 30, 2020, respectively	4,919	3,671
	Total current assets		6,624	5,022
		Fixed assets, net	351	338
		Operating lease right-of-use asset – related party	41,760	44,385
	Total assets		$ 48,735	$ 49,745
Liabilities and Stockholders' Deficit
	Current liabilities
		Accounts payable	$ 20,260	$ 14,224
		Accrued liabilities and other payable	383,062	336,855
		Accrued liabilities – related party	44,407	42,730
		Operating lease liability, current – related party	72,187	64,514
		Due to related party	869,961	802,766
	Total current liabilities		1,389,877	1,261,089
	Operating lease liability, non-current – related party		23,758	27,270
	Total liabilities		1,413,635	1,288,359
Stockholders' deficit
		Common stock, $0.00001 par value, 180,000,000 shares authorized; 39,750,000 shares issued and outstanding at September 30, 2020 and June 30, 2020	398	398
		Additional paid-in capital	11,357,728	11,350,321
		Accumulated other comprehensive income	612,314	662,118
		Accumulated deficit	(13,335,340)	(13,251,451)
	Total stockholders' deficit		(1,364,900)	(1,238,614)
	Total liabilities and stockholders' deficit		$ 48,735	$ 49,745

The accompanying notes are an integral part of these unaudited consolidated financial statements.

~~The accompanying notes are an integral part of these unaudited consolidated financial statements.~~3

3CHINA MEDIA INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)

CHINA MEDIA INC.
	FOR THE SIX MONTHS ENDED DECEMBER 31,			FOR THE THREE MONTHS ENDED DECEMBER 31,
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
	2020	2019			2020	2019
	(Unaudited)
Selling, general and administrative expense	$ 112,833	$ 118,441			$ 36,398	$ 60,758
		FOR THE THREE MONTHS ENDED SEPTEMBER 30,
Total operating expense	112,833	118,441			36,398	60,758
		2020	2019
Other expense
Selling, general and administrative expense		$ 76,435	$ 57,683
Interest expense	16,617	15,520			9,163	8,672
	Total operating expense	76,435	57,683
Net loss before income taxes	(129,450)	(133,961)			(45,561)	(69,430)
Other expense
Income taxes	-	-			-	-
	Interest expense	7,454	6,848
Net loss	$ (129,450)	$ (133,961)			$ (45,561)	$ (69,430)
Net loss before income taxes		(83,889)	(64,531)
Comprehensive loss
Income taxes		-	-
Net loss	(129,450)	(133,961)			(45,561)	(69,430)
Net loss		$ (83,889)	$ (64,531)
Foreign currency translation adjustment	(106,490)	14,402			(56,686)	(26,881)
Comprehensive loss	$ (235,940)	$ (119,559)			$ (102,247)	$ (96,311)
	Net loss	(83,889)	(64,531)
Net loss per common share - basic and diluted	$ (0.00)	$ (0.00)			$ (0.00)	$ (0.00)
	Foreign currency translation adjustment	(49,804)	41,283
Weighted average number of common shares outstanding - basic and diluted	39,750,000	39,750,000			39,750,000	39,750,000
Comprehensive loss		$ (133,693)	$ (23,248)
Net loss per common share, basic and diluted		$ (0.00)	$ (0.00)
Weighted average number of common shares outstanding- basic and diluted		39,750,000	39,750,000
The accompanying notes are an integral part of these unaudited consolidated financial statements.

4The accompanying notes are an integral part of these unaudited consolidated financial statements.

CHINA MEDIA INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT
FOR THE THREE-MONTH PERIOD ENDED SEPTEMBER 30, 2020 (Unaudited)
	Common Stock		Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholders’ Deficit
	Shares	Amount
Balance, July 1, 2020	39,750,000	$ 398	$ 11,350,321	$ 662,118	$ (13,251,451)	$ (1,238,614)
Foreign currency translation adjustment	-	-	-	(49,804)	-	(49,804)
Imputed interest on related party loan	-	-	7,407	-	-	7,407
Net loss	-	-	-	-	(83,889)	(83,889)
Balance, September 30, 2020	39,750,000	$ 398	$ 11,357,728	$ 612,314	$ (13,335,340)	$ (1,364,900)


CHINA MEDIA INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT
FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2020 (Unaudited)
	Common Stock		Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholders’ Deficit
	Shares	Amount

Balance, July 1, 2020	39,750,000	$ 398	$ 11,350,321	$ 662,118	$ (13,251,451)	$ (1,238,614)
Foreign currency translation adjustment	-	-	-	(49,804)	-	(49,804)
Imputed interest on related party loan	-	-	7,407	-	-	7,407
Net loss	-	-	-	-	(83,889)	(83,889)

Balance, September 30, 2020	39,750,000	$ 398	$ 11,357,728	$ 612,314	$ (13,335,340)	$ (1,364,900)

Foreign currency translation adjustment	-	-	-	(56,686)	-	(56,686)
Imputed interest on related party loan	-	-	9,159	-	-	9,159
Net loss	-	-	-	-	(45,561)	(45,561)

Balance, December 31, 2020	39,750,000	$ 398	$ 11,366,887	$ 555,628	$ (13,380,901)	$ (1,457,988)
The accompanying notes are an integral part of these unaudited consolidated financial statements.

CHINA MEDIA INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT
FOR THE THREE-MONTH PERIOD ENDED SEPTEMBER 30, 2019 (Unaudited)
FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2019 (Unaudited)
	Common Stock		Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholders’ Deficit
	Shares	Amount
Balance, July 1, 2019	39,750,000	$ 398	$ 11,323,440	$ 630,561	$ (13,021,040)	$ (1,066,641)
Foreign currency translation adjustment	-	-	-	41,283	-	41,283
Imputed interest on related party loan	-	-	6,804	-	-	6,804
Net loss	-	-	-	-	(64,531)	(64,531)
Balance, September 30, 2019	39,750,000	$ 398	$ 11,330,244	$ 671,844	$ (13,085,571)	$ (1,083,085)
The accompanying notes are an integral part of these unaudited consolidated financial statements.
Foreign currency translation adjustment	-	-	-	(26,881)	-	(26,881)
Imputed interest on related party loan	-	-	8,670	-	-	8,670
Net loss	-	-	-	-	(69,430)	(69,430)
Balance, December 31, 2019	39,750,000	$ 398	$ 11,338,914	$ 644,963	$ (13,155,001)	$ (1,170,726)

6 The accompanying notes are an integral part of these unaudited consolidated financial statements.

CHINA MEDIA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
				FOR THE THREE MONTHS ENDED SEPTEMBER 30,
				2020	2019
CASH FLOWS OPERATING ACTIVITIES
	Net loss			$ (83,889)	$ (64,531)
	Adjustments to reconcile net loss to net cash used in
	operating activities:
		Imputed interest		7,407	6,804
		Noncash lease expense		4,293	4,034
	Changes in operating assets and liabilities:
			Accounts payable	5,500	5,500
			Accrued liabilities and other payable	32,429	19,904
			Operating Lease liability – related party	550	742
Net cash used in operating activities				(33,710)	(27,547)
CASH FLOW FINANCING ACTIVITY
			Proceeds from related party	35,090	26,971
Net cash provided by financing activity				35,090	26,971
Effect of exchange rate changes on cash and cash equivalents				(1,026)	(89)
NET CHANGE IN CASH AND CASH EQUIVALENTS				354	(665)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD				1,351	2,603
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD				$ 1,705	$ 1,938
SUPPLEMENTAL INFORMATION:
	Interest paid			$ -	$ -
	Income taxes paid			$ -	$ -
The accompanying notes are an integral part of these unaudited consolidated financial statements.


CHINA MEDIA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
				FOR THE SIX MONTHS ENDED DECEMBER 31,
				2020	2019
CASH FLOWS OPERATING ACTIVITIES
	Net loss			$ (129,450)	$ (133,961)
	Adjustments to reconcile net loss to net cash used in
	operating activities:
		Imputed interest		16,566	15,474
	Noncash lease expense			8,828	8,102
	Changes in operating assets and liabilities:
	Accounts payable			(5,713)	-
			Accrued liabilities and other payable	632	19,565
			Operating lease liability – related party	1,071	1,431
Net cash used in operating activities				(108,066)	(89,389)

CASH FLOW FINANCING ACTIVITY
			Proceeds from related party	108,084	88,816
Net cash provided by financing activity				108,084	88,816

Effect of exchange rate changes on cash and cash equivalents				111	(43)
NET CHANGE IN CASH AND CASH EQUIVALENTS				129	(616)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD				1,351	2,603
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD				$ 1,480	$ 1,987

SUPPLEMENTAL INFORMATION:
	Interest paid			$ -	$ -
	Income taxes paid			$ -	$ -



The accompanying notes are an integral part of these unaudited consolidated financial statements.

~~CHINA MEDIA INC.~~6

~~NOTES~~CHINA TOMEDIA ~~CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~INC.

~~September~~NOTES ~~30,~~TO ~~2020~~CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

~~NOTE~~December 1.31, ~~Description of Business~~2020

~~China~~NOTE ~~Media Inc~~1. ~~(“we”,~~Description ~~“our”, the “Company”, “China Media”), formerly Protecwerx Inc., was incorporated in the State~~ of ~~Nevada on October 16, 2007.~~Business

~~The~~China ~~Company~~Media ~~does~~Inc. ~~not conduct any substantive operations of its own; rather~~(“we”, ~~it conducts its primary business operations through Vallant Pictures Entertainment Co.~~“our”, ~~Ltd., its wholly owned subsidiary incorporated under~~ the ~~laws of the British Virgin Islands~~“Company”, ~~which in turn, conducts its business through Xi’an TV Media Co. Ltd. (~~“~~Xi’An~~China TVMedia”)., ~~Effective~~formerly ~~control~~Protecwerx ~~over~~Inc., ~~Xi’An TV~~ was ~~transferred~~incorporated toin the ~~Company~~State ~~through the series~~ of ~~contractual~~Nevada ~~arrangements~~on ~~without~~October ~~transferring legal ownership in Xi’An TV. As a result of these contractual arrangements~~16, ~~the Company maintained the ability to approve decisions made by Xi’An TV and was entitled to substantially all of the economic benefits of Xi’An TV~~2007.

~~Xi’An~~The TVCompany ~~was~~does not conduct any substantive operations of its own; rather, it conducts its primary business operations through Vallant Pictures Entertainment Co., Ltd., its wholly owned subsidiary incorporated inunder ~~Xi’An~~the laws of the British Virgin Islands, ~~Shaan’xi~~which ~~Province~~in turn, ~~People~~conducts its business through Xi’san ~~Republic~~TV ofMedia ~~China~~Co. Ltd. (“~~PRC~~Xi’An TV”). ~~and~~Effective iscontrol inover Xi’An TV was transferred to the ~~business~~Company through the series of ~~investing~~contractual arrangements without transferring legal ownership in Xi’An TV. As a result of these contractual arrangements, ~~producing~~the ~~and~~Company ~~developing~~maintained ~~film~~the ability to approve decisions made by Xi’An TV and ~~television~~was ~~programming~~entitled ~~for~~to substantially all of the ~~Chinese~~economic ~~market~~benefits of Xi’An TV.

~~NOTE~~Xi’An 2.TV ~~Summary~~was incorporated in Xi’An, Shaan’xi Province, People’s Republic of ~~Significant~~China ~~Accounting~~(“PRC”) ~~Policies~~and is in the business of investing, producing and developing film and television programming for the Chinese market.

~~Basis~~NOTE 2. Summary of ~~Presentation~~Significant ~~and~~Accounting ~~Consolidation~~Policies

~~The~~Basis ~~accompanying unaudited interim consolidated financial statements~~ of ~~China~~Presentation ~~Media Inc. have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”)~~ and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual financial statements for the year ended June 30, 2020. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended June 30, 2020 have been omitted.Consolidation

~~Use~~The accompanying unaudited interim consolidated financial statements of ~~Estimates~~China Media Inc. have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual financial statements for the year ended June 30, 2020. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended June 30, 2020 have been omitted.

~~The~~Use ~~preparation~~ of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including estimates of ultimate revenues and ultimate costs of film and television products, the amount of receivables that ultimately will be collected, the potential outcome of future tax consequences of events that have been recognized in the Company’s financial statements and loss contingencies. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or results of operations will be affected. Estimates ~~are made based on past experience and other assumptions that management believes are reasonable under the circumstances, and management evaluates these estimates on an ongoing basis.~~

~~Recent~~The ~~Accounting~~preparation ~~Pronouncements~~of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes, including estimates of ultimate revenues and ultimate costs of film and television products, the amount of receivables that ultimately will be collected, the potential outcome of future tax consequences of events that have been recognized in the Company’s financial statements and loss contingencies. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or results of operations will be affected. Estimates are made based on past experience and other assumptions that management believes are reasonable under the circumstances, and management evaluates these estimates on an ongoing basis.

~~The~~Recently ~~Company~~Adopted ~~has~~Accounting reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial statements.Pronouncement

8The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial

~~Going Concern~~statements.

~~The~~Going accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has suffered recurring losses from operations and has a working capital deficit as of September 30, 2020. The Company also generated negative operating cash flows and incurred net loss for the three months ended September 30, 2020.Concern

~~These~~The ~~matters,~~accompanying ~~among~~consolidated ~~others,~~financial ~~raise~~statements ~~substantial~~have ~~doubt~~been ~~about~~prepared ~~our~~assuming ~~ability~~the toCompany will continue as a going concern., ~~While~~which ~~the Company's cash position may not be significant enough to support the Company's daily operations~~contemplates, ~~management~~among ~~intends to raise additional funds by way of cooperation with~~ other ~~film and television producers~~things, ~~obtaining~~the ~~loans~~realization ~~from~~of ~~shareholders~~assets and ~~borrowing~~satisfaction ~~from~~of ~~Dean~~liabilities ~~Li,~~in the ~~President~~normal ~~and~~course ~~Chief Executive Officer~~ of ~~the Company, to fund operations~~business. The ~~consolidated~~Company ~~financial~~has ~~statements~~suffered dorecurring ~~not~~losses ~~include~~from ~~any~~operations ~~adjustments~~and ~~that~~has ~~may result should the Company be unable to continue as~~ a ~~going~~working ~~concern.~~capital

~~NOTE 3. Related Party Transactions~~ 7

~~From~~deficit ~~time~~as ~~to time, the Company borrowed loans from Dean, Li, the President and Chief Executive Officer~~ of ~~the~~December ~~Company. As of September 30~~31, 2020~~, and June 30, 2020, the Company owed Dean Li $869,961 and $802,766, respectively~~. The ~~loans~~Company ~~borrowed~~also ~~from~~generated ~~Mr.~~negative ~~Dean~~operating Licash ~~are~~flows ~~unsecured, free of interest with no specified maturity date. The imputed interests are assessed as an expense to the business operation~~ and anincurred ~~addition~~net toloss ~~the~~for ~~paid-in-capital and calculated based on~~ the ~~average~~three ~~annual~~months ~~interest~~ended ~~rate~~December of31, 32020.~~54% with reference to a one-year loan.~~

~~The~~These ~~Company~~matters, ~~has~~among aothers, ~~five-year~~raise ~~lease~~substantial ~~agreement~~doubt ~~with~~about ~~Shaanxi~~our ~~Gede~~ability ~~Trading Co., Ltd. (“Gede”)~~ to ~~lease~~continue ~~its~~as ~~main office for~~ a ~~monthly~~going ~~rent~~concern. ofWhile ~~RMB11,167~~the ~~(approximately~~Company's ~~$1,637)~~cash ~~with~~position amay ~~term~~not ofbe ~~five~~significant ~~years~~enough ~~and~~to ~~expiration~~support ~~date~~the onCompany's ~~December~~daily 31operations, ~~2022.~~management ~~Gede’s~~intends ~~Legal~~to ~~Representative~~raise ~~and~~additional ~~Chief~~funds ~~Executive~~by ~~Officer~~way ~~is a major shareholder~~ of ~~the~~cooperation ~~Company.~~with Asother offilm ~~September~~and ~~30,~~television ~~2020~~producers, ~~the~~obtaining ~~Company~~loans ~~had~~from ashareholders ~~right-of-use~~and ~~asset~~borrowing offrom ~~$41~~Dean Li,~~760~~ the President and ~~lease~~Chief ~~liability~~Executive Officer of ~~$95~~the Company,~~945~~ ~~related~~ to ~~this~~fund ~~lease~~operations. The ~~Company~~consolidated ~~also~~financial ~~owed~~statements ~~Gede~~do ~~rent~~not ~~payable~~include ofany ~~$44,407~~adjustments ~~for another lease~~ that ~~ended~~may ~~December~~result ~~31,~~should ~~2017.~~the AsCompany ofbe ~~September~~unable ~~30, 2020, total rent payable owed~~ to ~~Gede~~continue ~~was~~as ~~$98,592.~~a ~~See~~going ~~Note 4 for more details~~concern.

OnNOTE ~~December 11, 2018, the Company provided a guarantee for Shaanxi Hengtai Mingji Trading Co~~3., ~~Ltd.’s~~Related ~~(“Hengtai”)~~Party ~~two-year~~Transactions loan borrowed from Chang’An Bank in the amount of RMB 210,532,513 (approximately $30,616,700 when borrowed). The loan was pledged by Hengtai’s receivable from Shaanxi Senzhiyuan Industrial Co., Ltd. (“Senzhiyuan”), a related party of the Company. See Note 5 for more details.

~~NOTE~~From 4time to time, the Company borrowed loans from Dean, Li, the President and Chief Executive Officer of the Company. As ~~Operating~~of ~~Lease~~December 31, 2020, and June 30, 2020, the Company owed Dean Li $981,319 and $802,766, respectively. The loans borrowed from Mr. Dean Li are unsecured, free of interest with no specified maturity date. The imputed interests are assessed as an expense to the business operation and an addition to the paid-in-capital and calculated based on the average annual interest rate of 3.71% with reference to a one-year loan.

OnThe ~~January 1, 2018, the~~ Company ~~entered~~has ~~into~~ a five-year lease agreement with Shaanxi Gede Trading Co., Ltd. (“Gede”), ~~a related party,~~ to lease its main office for a monthly rent of RMB11,167 (approximately $1,637) with a term of five years and expiration date on December 31, 2022. Gede’s Legal Representative and Chief Executive Officer is a major shareholder of the Company. As of December 31, 2020, the Company had a right-of-use asset of $38,906 and lease liability of $100,494 related to this lease. The Company also owed Gede rent payable of $46,268 for another lease that ended December 31, 2017. As of December 31, 2020, total rent payable owed to Gede was $107,856. See Note 4 for more details.

~~Balance~~On ~~sheet~~December ~~information~~11, ~~related~~2018, tothe Company provided a guarantee for Shaanxi Hengtai Mingji Trading Co., Ltd.’s (“Hengtai”) loan borrowed from Chang’An Bank in the ~~operating~~amount ~~lease~~of RMB 210,532,513 (approximately $30,616,700 when borrowed). The loan is aspledged ~~follows:~~by Hengtai’s receivable from Shaanxi Senzhiyuan Industrial Co., Ltd. (“Senzhiyuan”), a related party of the Company. See Note 5 for more details.

	September 30,2020
Operating lease right-of-use asset – related party	$	41,760
Operating lease liability, current – related party	$	72,187
Operating lease liability, non-current – related party		23,758
Total operating lease liability	$	95,945

NOTE 4. Operating Lease

~~For~~On ~~the~~January ~~three~~1, ~~months~~2018, ~~ended~~the ~~September~~Company ~~30,~~entered ~~2020~~into ~~and~~a ~~2019,~~lease ~~the~~agreement ~~Company~~with ~~had~~Shaanxi ~~operating~~Gede ~~lease~~Trading ~~cost~~Co., ofLtd. $4(“Gede”),~~843~~ ~~and~~a $4related party,~~776,~~ ~~respectively;~~to ~~and~~lease ~~the~~its ~~reduction~~main inoffice ~~operating~~for ~~lease~~a ~~right-of-use~~monthly ~~asset~~rent ~~– related~~of ~~party~~RMB11,167 ~~were~~(approximately $41,~~293~~637) with a term of five years and $4expiration date on December 31,~~034,~~ 2022.

9Balance sheet information related to the operating lease is as follows:

~~respectively. No cash was paid for amounts included in the measurement of operating lease liability – related party during the three months ended September 30, 2020 and 2019.~~ 8

The weighted-average remaining lease term and the weighted-average discount rate of our lease are as follows:


	December 31, 2020

Operating lease right-of-use asset – related party	$	38,906

Operating lease liability, current – related party	$	80,572
Operating lease liability, non-current – related party		19,922
Total operating lease liability	$	100,494

					September 30,2020
Weighted-average remaining lease term					2.25 years
Weighted-average discount rate					4.85%

For the six months ended December 31, 2020 and 2019, the Company had operating lease cost of $9,898 and $9,533, respectively; and the reduction in operating lease right of use asset – related party was $8,828 and $8,102, respectively. No cash was paid for amounts included in the measurement of operating lease liability – related party during the six months ended December 31, 2020 and 2019.

The ~~following~~weighted-average ~~table~~remaining ~~summarizes~~lease term and the ~~maturity~~weighted-average discount rate of our ~~operating~~ lease ~~liability~~are ~~– related party~~ as ~~of September 30, 2020~~follows:

For the Years Ended June 30,
	December 31,2020
2021 (remaining)		$	68,962
Weighted-average remaining lease term	2 years
2022			19,703
Weighted-average discount rate	4.85%
2023 and thereafter			9,852
Total lease payment			98,517
Less imputed interest			(2,572)
Total lease liability – related party		$	95,945

~~NOTE~~The 5.following ~~Commitments~~table ~~and~~summarizes ~~Contingencies~~the maturity of our operating lease liability – related party as of December 31, 2020:

On December 11, 2018, the Company entered into a guarantee agreement to provide guarantee for Shaanxi HengtaiMingji Trading Co., Ltd.’s (“Hengtai”) two-year loan borrowed from Chang’An Bank in the amount of RMB 210,532,513 (approximately $30,616,700 when borrowed). The guarantee period is two years starting from the date the payment is due. The loan is pledged by Hengtai’s receivable from Shaanxi Senzhiyuan Industrial Co., Ltd. (“Senzhiyuan”) in the amount of RMB 226,000,000 and 50 million equity interest in Hengtai owned by Hengtai’s two shareholders. The controlling shareholder of Senzhiyuan is also a principal shareholder of the Company.


For The Years Ended June 30,
2021 (remaining)	$	71,853
2022		20,529
2023 and thereafter		10,265
Total lease payment		102,647
Less imputed interest		(2,153)
Total lease liability – related party	$	100,494

~~The~~NOTE ~~information~~5. ofCommitments ~~lease~~and ~~commitment is provided in Note 4.~~Contingencies

~~Note~~On 6December 11, 2018, the Company entered into a guarantee agreement to provide guarantee for Shaanxi Hengtai Mingji Trading Co., ~~Subsequent~~Ltd.’s ~~Event~~(“Hengtai”) loan borrowed from Chang’An Bank in the amount of RMB 210,532,513 (approximately $30,616,700 when borrowed). The maturity date of the loan was extended to December 24, 2022. The guarantee period is two years starting from the date the payment is due. The loan is pledged by Hengtai’s receivable from Shaanxi Senzhiyuan Industrial Co., Ltd. (“Senzhiyuan”) in the amount of RMB 226,000,000 and 50 million equity interest in Hengtai owned by Hengtai’s two shareholders. The controlling shareholder of Senzhiyuan is also a principal shareholder of the Company.

~~From October 1, 2020 to November 16, 2020, the Company borrowed loans in total of RMB162,319 (approximately $23,478) from Dean Li, the President and Chief Executive Officer of the Company.~~ The ~~loans~~information ~~borrowed from Mr. Dean Li are unsecured, free~~ of ~~interest~~lease ~~with~~commitment nois ~~specified~~provided ~~maturity~~in ~~date.~~Note ~~The annual interest rate of 3~~4.~~54% with reference to a one-year loan.~~

109

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

Forward Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology including "could", "may", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" and the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report.

Results of Operations

Comparison of the ~~three~~six months ended ~~September~~December 3031, 2020 and 2019:

	For Three Months Ended September 30,
	For Six Months Ended December 31,
	2020		2019
Operating expense
Selling, general and administrative expense	$	76112,~~435~~833	$	57118,~~683~~441
Total operating expense		76112,~~435~~833		57118,~~683~~441
Other expense:
Interest expense		716,~~454~~617		615,~~848~~520
Total other expense		716,~~454~~617		615,~~848~~520
Net loss before income taxes		(83129,~~889~~450)		(64133,~~531~~961)
Income taxes		-		-
Net loss	$	(83129,~~889~~450)	$	(64133,~~531~~961)

Revenue and Cost

We had no sales and cost for the ~~three~~six months ended ~~September~~December 3031, 2020 and 2019.

Operating ~~expenses~~expense

During the ~~three~~six months ended ~~September~~December 3031, 2020, our total operating expense was $76112,~~435~~833, ana ~~increase~~slight decrease of $185,~~752~~608 or 335% as compared to $57118,~~683~~441 for the ~~three~~six months ended ~~September~~December 3031, 2019. The ~~main~~decrease ~~increase~~ was primarily due to ~~partial~~decrease ~~of the audit fee for the year ended June 30, 2019 was recorded~~ in ~~the~~legal ~~three~~service ~~months ended December 31, 2020, but the audit fee for the year ended June 20, 2020 was fully recorded in the three months ended September 30, 2020~~expense.

Net loss

For the ~~three~~six months ended ~~September~~December 3031, 2020, we incurred a net loss of $83129,~~889~~450, as compared to a net loss of $64133,~~531~~961 for the ~~three~~six months ended ~~September~~December 3031, 2019, ana ~~increase~~decrease of $194,~~358~~511 or 303%. This ~~increase~~decrease was primarily due to the ~~increase~~decrease in operating expense.

Comparison of the three months ended December 31, 2020 and 2019:



	For Three Months Ended December 31,
	2020		2019

Operating expense
Selling, general and administrative expense	$	36,398	$	60,758
Total operating expense		36,398		60,758

Other expense:
Interest expense		9,163		8,672
Total other expense		9,163		8,672

Net loss before income taxes		(45,561)		(69,430)
Income taxes		-		-
Net loss	$	(45,561)	$	(69,430)

Revenue and Cost

We had no sales and cost for the three months ended December 31, 2020 and 2019.

Operating expense

During the three months ended December 31, 2020, our total operating expense was $36,398, a decrease of $24,360 or 40% as compared to $60,758 for the three months ended December 31, 2019. The main decrease was primarily due to decrease in consulting expense for the year ended June 30, 2020 was fully recorded in the three months ended September 30, 2020, but partial of the audit fee for the year ended June 30, 2019 was recorded in the three months ended December 31, 2019.

Net loss

For the three months ended December 31, 2020, we incurred a net loss of $45,561, as compared to a net loss of $69,430 for the three months ended December 31, 2019, a decrease of $23,869 or 34%. This decrease was primarily due to the decrease in operating expense.

Liquidity and Capital Resources

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



	For the Six Months Ended
	December 31,
	2020		2019

Net cash used in operating activities	$	(108,066)	$	(89,389)
Net cash provided by financing activity		108,084		88,816
Effect of exchange rate changes on cash and cash equivalents		111		(43)
NET CHANGE IN CASH AND CASH EQUIVALENTS		129		(616)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		1,351		2,603
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	1,480	$	1,987

As of December 31, 2020, we had cash of $1,480 in our bank accounts and a working capital deficit of $1,477,337.

	For the Three Months Ended
	September 30,
	2020		2019
Net cash used in operating activities	$	(33,710)	$	(27,547)
Net cash provided by financing activity		35,090		26,971
Effect of exchange rate changes on cash and cash equivalents		(1,026)		(89)
NET CHANGE IN CASH AND CASH EQUIVALENTS		354		(665)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		1,351		2,603
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	1,705	$	1,938

For the six months ended December 31, 2020, we used net cash of $108,066 in operating activities, compared to net cash used of $89,389 in operating activities during the same period of 2019. The increase of $18,677 for net cash used in operating activities was mainly due to the decrease in the change in accrued liabilities and other payable in this period.

AsDuring ofthe ~~September~~six 30months ended December 31, 2020, we ~~had~~received net cash of $1108,~~705~~084 from financing activity compared to net cash received of $88,816 in ~~our~~financing ~~bank~~activity ~~accounts~~during ~~and~~the asame ~~working~~period ~~capital~~in ~~deficit~~fiscal year 2019. The increase of $119,~~383,253~~250 in net cash provided by financing activity was due to the increase in proceeds received from a related party.

~~During~~Our ~~the~~cash ~~three~~level ~~months~~increased ~~ended~~by ~~September~~$129 ~~30,~~during ~~2020,~~the wesix ~~used~~months ~~net~~ended ~~cash~~December ~~of $33~~31,~~710~~ ~~in operating activities~~2020, compared to ~~net~~a ~~cash~~decrease ~~used~~ of ~~27,547~~$616 in ~~operating activities during~~ the same period of 2019. The ~~increase~~changes ofin ~~$6,163 for net~~ cash ~~used~~were ina ~~operating~~result ~~activities~~of ~~was mainly due to~~ the ~~increase~~factors indescribed ~~net loss and offset by the increase in the change in accrued liabilities and other payable in this period~~above.

During the three months ended September 30, 2020, we received net cash of $35,090 from financing activity, compared to net cash received of $26,971 in financing activity during the same period of 2019. The increase of $8,119 in net cash provided by financing activity was due to the increase in proceeds received from a related party.

Our cash level increased by $354 during the three months ended September 30, 2020, compared to a decrease of $665 in the same period of 2019. The changes in cash were a result of the factors described above.

We anticipate that we will meet our ongoing cash requirements through equity or debt financing. We plan to cooperate with various individuals and institutions to acquire the financing required to produce and distribute our products and anticipate this will continue until we accrue sufficient capital reserves to finance all of our productions independently.

We intend to meet our cash requirements for the next 12 months through a combination of debt financing and equity financing and partnerships with finance groups on television and movie projects.

Critical Accounting Policies and Estimates

Please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2020 10-K for disclosures regarding our critical accounting policies and estimates. The interim financial statements follow the same accounting policies and methods of computations as those for the year ended June 30, 2020.

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, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Impact of COVID-19 Pandemic

In late January 2020, the coronavirus (“COVID-19”) was rapidly evolving in China and globally led to disruptions in the business and transportation. The Chinese government implemented a series of restrictions, including lock-downs, social distancing requirements, and travel restrictions that drastically reduced traditional offline business. Considering the features of our business in the media industries, we experienced business disruption as a result of those measures to contain the COVID-19 outbreak. Since March 2020, the Chinese government has eased its COVID-19 restrictions domestically, and the Chinese domestic business started to recover. Our operations in the first quarter of 2021 was not significantly impacted by the COVID-19. However, it is not possible to determine the ultimate impact of the COVID-19 pandemic on the Company’s business operations and financial results, which is highly dependent on numerous factors, including the duration and spread of the pandemic and any resurgence of COVID-19 in China or elsewhere, actions taken by governments, the responses of businesses and individuals to the pandemic.

factors, including the duration and spread of the pandemic and any resurgence of COVID-19 in China or elsewhere, actions taken by governments, the responses of businesses and individuals to the pandemic.

Inflation

The amounts presented in the financial statements do not provide for the effect of inflation on our operations or financial position. The net operating losses shown would be greater than reported if the effects of inflation were reflected either by charging operations with amounts that represent replacement costs or by using other inflation adjustments.

Audit Committee

The functions of the audit committee are currently carried out by our Board of Directors, who has determined that we do not have an audit committee financial expert on our Board of Directors to carry out the duties of the audit committee. The Board of Directors has determined that the cost of hiring a financial expert to act as a director and to be a member of the audit committee or otherwise perform audit committee functions outweighs the benefits of having a financial expert on the audit committee.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of ~~September~~December 3031, 2020. Based on the evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective.

Changes in Internal Control

Except as discussed above, there were no significant changes in our internal control over financial reporting (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) that occurred during the quarterly period that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are not aware of any legal proceedings to which we are a party or of which our property is the subject. None of our directors, officers, affiliates, any owner of record or beneficially of more than 5% of our voting securities, or any associate of any such director, officer, affiliate or security holder are (i) a party adverse to us in any legal proceedings, or (ii) have a material interest adverse to us in any legal proceedings. We are not aware of any other legal proceedings that have been threatened against us.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

13None.

~~None~~Item 3. Defaults Upon Senior Securities

~~Item 3~~None. ~~Defaults Upon Senior Securities~~

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

~~Item 5. Other Information~~13

~~None~~Item 5. Other Information

~~Item 6~~None. ~~Exhibits~~

Exhibit Number	Exhibit Description
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Item 6. Exhibits

SIGNATURES


Exhibit Number	Exhibit Description
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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

	China Media Inc.
	(Registrant)
	/s/ Dean Li
Date: November 16, 2020	Dean Li
	President, Chief Executive Officer
	(Principal Executive Officer)

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


	China Media Inc.
	(Registrant)

	/s/ Dean Li
Date: February 9, 2021	Dean Li
	President, Chief Executive Officer
	(Principal Executive Officer)

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