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~~March 31, ~~2020~~2021

[ ] 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~~May 917, 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.

~~DECEMBER~~MARCH 31, ~~2020~~2021

(UNAUDITED)

Financial Statement Index

Consolidated Balance Sheets as of ~~December~~March 31, ~~2020~~2021 (Unaudited) and June 30, 2020 Consolidated Statements of Operations and Comprehensive Loss for the three and ~~six~~nine months ended ~~December~~March 31, ~~2020~~2021 and ~~2019~~2020 (Unaudited) Consolidated Statements of Changes in Stockholders’ Deficit for the three and ~~six~~nine months ended ~~December~~March 31, ~~2020~~2021 and ~~2019~~2020 (Unaudited) Consolidated Statements of Cash Flows for the ~~six~~nine months ended ~~December~~March 31, ~~2020~~2021 and ~~2019~~2020 (Unaudited) Notes to the Consolidated Financial Statements (Unaudited)

CHINA MEDIA INC.

CONSOLIDATED BALANCE SHEETS

		DECEMBER 31, 2020			JUNE 30, 2020
			MARCH 31, 2021	JUNE 30, 2020
Assets			(Unaudited)
			(Unaudited)
Current assets
Assets
	Cash and cash equivalents	$ 1,480			$ 1,351
	Current assets
	Other receivable, net of allowance of $124,260 and $114,758 at December 31, 2020 and June 30, 2020, respectively	3,976			3,671
		Cash and cash equivalents	$ 1,325	$ 1,351
Total current assets		5,456			5,022
		Other receivable, net of allowance of $123,769 and $114,758 at March 31, 2021 and June 30, 2020, respectively	3,960	3,671
	Fixed assets, net	365			338
	Total current assets		5,285	5,022
	Operating lease right-of-use asset – related party	38,906			44,385
		Fixed assets, net	364	338
Total assets		$ 44,727			$ 49,745
		Operating lease right-of-use asset – related party	34,110	44,385
Liabilities and Stockholders' Deficit
	Total assets		$ 39,759	$ 49,745
Current liabilities
Liabilities and Stockholders' Deficit
	Accounts payable	$ 9,231			$ 14,224
	Current liabilities
	Accrued liabilities and other payable	365,403			336,855
		Accounts payable	$ 14,808	$ 14,224
	Accrued liabilities – related party	46,268			42,730
		Accrued liabilities and other payable	378,912	336,855
	Operating lease liability, current – related party	80,572			64,514
		Accrued liabilities – related party	46,086	42,730
	Due to related party	981,319			802,766
		Operating lease liability, current – related party	85,595	64,514
Total current liabilities		1,482,793			1,261,089
		Due to related party	986,155	802,766
Operating lease liability, non-current – related party		19,922			27,270
	Total current liabilities		1,511,556	1,261,089
Total liabilities		1,502,715			1,288,359
	Operating lease liability, non-current – related party		14,972	27,270
Stockholders' deficit
	Total liabilities		1,526,528	1,288,359
	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
Stockholders' deficit
	Additional paid-in capital	11,366,887			11,350,321
		Common stock, $0.00001 par value, 180,000,000 shares authorized; 39,750,000 shares issued and outstanding at March 31, 2021 and June 30, 2020	$ 398	$ 398
	Accumulated other comprehensive income	555,628			662,118
		Additional paid-in capital	11,375,618	11,350,321
	Accumulated deficit	(13,380,901)			(13,251,451)
		Accumulated other comprehensive income	562,347	662,118
Total stockholders' deficit		(1,457,988)			(1,238,614)
		Accumulated deficit	(13,425,132)	(13,251,451)
Total liabilities and stockholders' deficit		$ 44,727			$ 49,745
	Total stockholders' deficit		(1,486,769)	(1,238,614)
	Total liabilities and stockholders' deficit		$ 39,759	$ 49,745

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

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

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


	FOR THE NINE MONTHS ENDED MARCH 31,		FOR THE THREE MONTHS ENDED MARCH 31,
	2021	2020		2021	2020



Selling, general and administrative expense	$ 148,331	$ 154,287		$ 35,498	$ 35,846
Total operating expense	148,331	154,287		35,498	35,846

Other expense
Interest expense	25,350	21,819		8,733	6,299
Net loss before income taxes	(173,681)	(176,106)		(44,231)	(42,145)
Income taxes	-	-		-	-
Net loss	$ (173,681)	$ (176,106)		$ (44,231)	$ (42,145)

Comprehensive loss
Net loss	(173,681)	(176,106)		(44,231)	(42,145)
Foreign currency translation adjustment	(99,771)	34,954		6,719	20,552
Comprehensive loss	$ (273,452)	$ (141,152)		$ (37,512)	$ (21,593)


Net loss per common share - basic and diluted	$ (0.00)	$ (0.00)		$ (0.00)	$ (0.00)
Weighted average number of common shares outstanding - basic and diluted	39,750,000	39,750,000		39,750,000	39,750,000


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

	FOR THE SIX MONTHS ENDED DECEMBER 31,		FOR THE THREE MONTHS ENDED DECEMBER 31,
	2020	2019		2020	2019
Selling, general and administrative expense	$ 112,833	$ 118,441		$ 36,398	$ 60,758
Total operating expense	112,833	118,441		36,398	60,758
Other expense
Interest expense	16,617	15,520		9,163	8,672
Net loss before income taxes	(129,450)	(133,961)		(45,561)	(69,430)
Income taxes	-	-		-	-
Net loss	$ (129,450)	$ (133,961)		$ (45,561)	$ (69,430)
Comprehensive loss
Net loss	(129,450)	(133,961)		(45,561)	(69,430)
Foreign currency translation adjustment	(106,490)	14,402		(56,686)	(26,881)
Comprehensive loss	$ (235,940)	$ (119,559)		$ (102,247)	$ (96,311)
Net loss per common share - basic and diluted	$ (0.00)	$ (0.00)		$ (0.00)	$ (0.00)
Weighted average number of common shares outstanding - basic and diluted	39,750,000	39,750,000		39,750,000	39,750,000

~~The accompanying notes are an integral part of these unaudited consolidated financial statements.~~5

CHINA MEDIA INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2021 (Unaudited)

	Common Stock		Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholders’ Deficit
	Shares	Amount	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholders’ Deficit

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)

Foreign currency translation adjustment	-	-	-	6,719	-	6,719
Imputed interest on related party loan	-	-	8,731	-	-	8,731
Net loss	-	-	-	-	(44,231)	(44,231)

Balance, March 31, 2021	39,750,000	$ 398	$ 11,375,618	$ 562,347	$ (13,425,132)	$ (1,486,769)

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 AND SIX MONTHS ENDED DECEMBER 31, 2019 (Unaudited)
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2020 (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~~300,244	$ 671,844	$ (13,085,571)	$ (1,083,085)
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)
Foreign currency translation adjustment	-	-	-	20,552	-	20,552
Imputed interest on related party loan	-	-	6,299	-	-	6,299
Net loss	-	-	-	-	(42,145)	(42,145)
Balance, March 31, 2020	39,750,000	$ 398	$ 11,345,213	$ 665,515	$ (13,197,146)	$ (1,186,020)
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.~~7

CHINA MEDIA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
				FOR THE NINE MONTHS ENDED MARCH 31,
				2021	2020
CASH FLOWS OPERATING ACTIVITIES
	Net loss			$ (173,681)	$ (176,106)
	Adjustments to reconcile net loss to net cash used in
	operating activities:
		Imputed interest		25,297	21,773
	Noncash lease expense			13,510	12,255
	Changes in operating assets and liabilities:
	Accounts payable			(293)	-
			Accrued liabilities and other payable	15,323	39,049
			Operating lease liability – related party	1,547	2,078
Net cash used in operating activities				(118,297)	(100,951)

CASH FLOW FINANCING ACTIVITY
			Proceeds from related party	118,168	94,805
Net cash provided by financing activity				118,168	94,805

Effect of exchange rate changes on cash and cash equivalents				103	5,425
NET CHANGE IN CASH AND CASH EQUIVALENTS				(26)	(721)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD				1,351	2,603
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD				$ 1,325	$ 1,882

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.

6CHINA MEDIA INC.

~~CHINA~~NOTES ~~MEDIA~~TO ~~INC.~~CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

~~NOTES~~March TO31, ~~CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~2021

~~December~~NOTE ~~31,~~1. ~~2020~~Description of Business

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

~~China~~The ~~Media~~Company ~~Inc~~does not conduct any substantive operations of its own; rather, it conducts its primary business operations through Vallant Pictures Entertainment Co., Ltd. (“weVallant”), ~~“our”,~~its wholly owned subsidiary incorporated under the ~~“Company”~~laws of the British Virgin Islands, ~~“China~~which in turn, conducts its business through Xi’an TV Media Co. Ltd. (“Xi’An TV”),. ~~formerly~~Effective ~~Protecwerx~~control ~~Inc.,~~over Xi’An TV was ~~incorporated~~transferred into the ~~State~~Company through the series of ~~Nevada~~contractual onarrangements ~~October~~without 16transferring legal ownership in Xi’An TV. As a result of these contractual arrangements, ~~2007~~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.

~~The~~Xi’An ~~Company~~TV ~~does~~was ~~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 ~~under~~in ~~the laws of the British Virgin Islands~~Xi’An, ~~which~~Shaan’xi ~~in turn~~Province, ~~conducts its business through Xi~~People’ans TVRepublic ~~Media~~of ~~Co.~~China ~~Ltd.~~ (“~~Xi’An TV~~PRC”). ~~Effective~~and ~~control~~is ~~over~~in ~~Xi’An TV was transferred to~~ the ~~Company~~business ~~through the series~~ of ~~contractual arrangements without transferring legal ownership in Xi’An TV. As a result of these contractual arrangements~~investing, ~~the~~producing ~~Company~~and ~~maintained~~developing ~~the~~film ~~ability to approve decisions made by Xi’An TV~~ and ~~was~~television ~~entitled~~programming tofor ~~substantially all of~~ the ~~economic~~Chinese ~~benefits of Xi’An TV~~market.

~~Xi’An~~NOTE TV2. ~~was~~Summary ~~incorporated in Xi’An, Shaan’xi Province, People’s Republic~~ of ~~China~~Significant ~~(“PRC”)~~Accounting ~~and is in the business of investing, producing and developing film and television programming for the Chinese market.~~Policies

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

~~Basis~~The accompanying unaudited interim consolidated financial statements of ~~Presentation~~China Media Inc. have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and ~~Consolidation~~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 ~~accompanying unaudited interim consolidated financial statements~~ of 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.Estimates

~~Use~~The 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.

~~The~~Recent ~~preparation~~Accounting 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.Pronouncements

~~Recently~~The ~~Adopted~~Company ~~Accounting~~has ~~Pronouncement~~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

The 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 financialstatements.

~~statements.~~Going Concern

~~Going~~The ~~Concern~~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

The 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 9

7deficit as of March 31, 2021. The Company also generated negative operating cash flows and incurred net loss for the nine months ended March 31, 2021.

~~deficit~~These matters, among others, raise substantial doubt about our ability to continue as a going concern. While the Company's cash position may not be significant enough to support the Company's daily operations, management intends to raise additional funds by way of ~~December~~cooperation 31with other film and television producers, ~~2020~~obtaining loans from shareholders and borrowing from Dean Li, the President and Chief Executive Officer of the Company, to fund operations. The ~~Company~~consolidated ~~also~~financial ~~generated~~statements ~~negative~~do ~~operating~~not ~~cash~~include ~~flows~~any ~~and~~adjustments ~~incurred~~that ~~net~~may ~~loss~~result ~~for~~should the ~~three~~Company ~~months~~be ~~ended~~unable ~~December~~to ~~31,~~continue ~~2020~~as a going concern.

~~These~~NOTE ~~matters, among others, raise substantial doubt about our ability to continue as a going concern~~3. ~~While~~Related ~~the~~Party ~~Company's~~Transactions cash position may not be significant enough to support the Company's daily operations, management intends to raise additional funds by way of cooperation with other film and television producers, obtaining loans from shareholders and borrowing from Dean Li, the President and Chief Executive Officer of the Company, to fund operations. The consolidated financial statements do not include any adjustments that may result should the Company be unable to continue as a going concern.

~~NOTE~~From time to time, the Company borrowed loans from Dean, Li, the President and Chief Executive Officer of the Company. As of March 31, 2021, and June 30, 2020, the Company owed Dean Li $986,155 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% ~~Related~~with ~~Party~~reference ~~Transactions~~to a one-year loan.

~~From~~The ~~time~~Company tohas ~~time,~~a ~~the~~five-year ~~Company~~lease ~~borrowed~~agreement ~~loans~~with ~~from~~Shaanxi ~~Dean,~~Gede LiTrading Co., ~~the~~Ltd. ~~President~~(“Gede”) ~~and~~to ~~Chief~~lease ~~Executive~~its ~~Officer~~main office for a monthly rent of ~~the~~RMB11,167 ~~Company. As~~(approximately $1,637) with a term of five years and expiration date on December 31, ~~2020,~~2022. Gede’s Legal Representative and ~~June~~Chief ~~30,~~Executive ~~2020,~~Officer is a major shareholder of the Company. ~~owed~~As ~~Dean~~of LiMarch ~~$981~~31,~~319~~ ~~and $802~~2021,~~766,~~ ~~respectively.~~the ~~The~~Company ~~loans~~had ~~borrowed~~a ~~from~~right-of-use ~~Mr.~~asset ~~Dean~~of Li$34,110 ~~are~~and ~~unsecured,~~lease ~~free~~liability of ~~interest~~$100,567 ~~with~~related noto ~~specified~~this ~~maturity date~~lease. The ~~imputed~~Company ~~interests~~also ~~are~~owed ~~assessed~~Gede asrent anpayable ~~expense~~of to$46,086 ~~the~~for ~~business~~another ~~operation~~lease ~~and~~that anended ~~addition~~December to31, ~~the~~2017. ~~paid-in-capital~~As ~~and~~of ~~calculated~~March ~~based~~31, on2021, ~~the~~total ~~average~~rent ~~annual~~payable ~~interest~~owed ~~rate~~to ofGede 3was $112,542.~~71%~~ ~~with~~See ~~reference~~Note to4 afor ~~one-year~~more ~~loan~~details.

~~The~~On ~~Company~~December ~~has~~11, a2018, ~~five-year~~the ~~lease~~Company ~~agreement~~provided ~~with~~a guarantee for Shaanxi ~~Gede~~Hengtai Mingji Trading Co., Ltd.’s (“~~Gede~~Hengtai”), ~~to lease its main office for~~ a ~~monthly~~related ~~rent~~party of ~~RMB11,167~~the ~~(approximately $1,637~~Company) ~~with~~loan aborrowed ~~term~~from ~~of five years and expiration date on December 31, 2022. Gede~~Chang’sAn ~~Legal~~Bank ~~Representative~~in ~~and Chief Executive Officer is a major shareholder of~~ the ~~Company.~~amount As of ~~December~~RMB 31210, ~~2020~~532,513 ~~the~~(approximately ~~Company had a right-of-use asset of~~ $3830,~~906 and lease liability of $100~~616,~~494~~700 ~~related~~when ~~to this lease~~borrowed). The ~~Company~~loan ~~also~~is ~~owed~~pledged ~~Gede~~by ~~rent~~Hengtai’s ~~payable~~receivable offrom ~~$46,268~~Shaanxi ~~for~~Senzhiyuan ~~another~~Industrial ~~lease that ended December 31~~Co., ~~2017~~Ltd. ~~As of December 31~~(“Senzhiyuan”), ~~2020,~~a ~~total~~related ~~rent~~party ~~payable~~of ~~owed~~the ~~to Gede was $107,856~~Company. See Note 45 for more details.

OnNOTE ~~December 11, 2018, the Company provided a guarantee for Shaanxi Hengtai Mingji Trading Co~~4., ~~Ltd.’s~~Operating (“Hengtai”) loan borrowed from Chang’An Bank in the amount of RMB 210,532,513 (approximately $30,616,700 when borrowed). The loan is pledged by Hengtai’s receivable from Shaanxi Senzhiyuan Industrial Co., Ltd. (“Senzhiyuan”), a related party of the Company. See Note 5 for more details.Lease

~~NOTE~~On 4January 1, 2018, the Company entered into a lease agreement with Shaanxi Gede Trading Co., ~~Operating~~Ltd. ~~Lease~~(“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.

OnBalance ~~January~~sheet 1,information ~~2018, the Company entered into a lease agreement with Shaanxi Gede Trading Co., Ltd. (“Gede”), a~~ related ~~party,~~ to ~~lease~~the ~~its~~operating ~~main~~lease ~~office~~is ~~for~~as ~~a monthly rent of RMB11,167 (approximately $1,637) with a term of five years and expiration date on December 31, 2022.~~ follows:

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

	March 31, 2021

Operating lease right-of-use asset – related party	$	34,110

Operating lease liability, current – related party	$	85,595
Operating lease liability, non-current – related party		14,972
Total operating lease liability	$	100,567

8For the nine months ended March 31, 2021 and 2020, the Company had operating lease cost of $15,057 and $14,333, respectively; and the reduction in operating lease right-of-use asset – related party was $13,510 and $12,255, respectively. No cash was paid for amounts included in the measurement of operating lease liability – related party during the nine months ended March 31, 2021 and 2020.

	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

~~For~~The ~~the~~weighted-average ~~six~~remaining ~~months ended December 31, 2020 and 2019, the Company had operating~~ lease ~~cost~~term ~~of $9,898~~ and ~~$9,533, respectively; and~~ the ~~reduction~~weighted-average indiscount ~~operating~~rate ~~lease right~~ of ~~use~~our ~~asset – related party was $8,828 and $8,102, respectively. No cash was paid for amounts included in the measurement of operating~~ lease ~~liability~~are –as ~~related party during the six months ended December 31, 2020 and 2019.~~ follows:

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

					March 31, 2021
Weighted-average remaining lease term					1.75 years

Weighted-average discount rate					4.85%

					December 31,2020
Weighted-average remaining lease term					2 years
Weighted-average discount rate					4.85%

The following table summarizes the maturity of our operating lease liability – related party as of March 31, 2021:

The following table summarizes the maturity of our operating lease liability – related party as of December 31, 2020:

For The Years Ending June 30,
2021 (remaining)	$	71,569
2022		20,448
2023 and thereafter		10,224
Total lease payment		102,241
Less imputed interest		(1,674)
Total lease liability – related party	$	100,567

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

NOTE 5. Commitments and Contingencies

~~NOTE~~On 5December 11, 2018, the Company entered into a guarantee agreement to provide guarantee for Shaanxi Hengtai Mingji Trading Co., ~~Commitments~~Ltd.’s (“Hengtai”, a related party of the Company) 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 ~~Contingencies~~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.

On December 11, 2018, the Company entered into a guarantee agreement to provide guarantee for Shaanxi Hengtai Mingji Trading Co., Ltd.’s (“Hengtai”) loan borrowed from Chang’An Bank in the amount of RMB 210,532,513 (approximately $30,616,700 when borrowed). The ~~maturity~~information ~~date~~ of ~~the~~lease ~~loan~~commitment ~~was extended to December 24, 2022. The guarantee period~~ is ~~two~~provided ~~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~~Note ~~amount of RMB 226,000,000 and 50 million equity interest in Hengtai owned by Hengtai’s two shareholders~~4. ~~The controlling shareholder of Senzhiyuan is also a principal shareholder of the Company.~~

~~The~~From ~~information~~time to time, the Company is subject to legal proceedings and claims in the ordinary course of ~~lease~~business. ~~commitment~~The Company records a liability when it is ~~provided~~both probable that a liability will be incurred and the amount of the loss can be reasonably estimated. The Company reviews the need for any such liability on a regular basis and has not recorded any material liabilities in ~~Note~~this 4regard during the nine months ended March 31, 2021 and 2020.

911

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 ~~six~~nine months ended ~~December~~March 31, ~~2020~~2021 and ~~2019~~2020:

	For Six Months Ended December 31,
	For Nine Months Ended March 31,
	2020		2019
	2021		2020
Operating expense
Selling, general and administrative expense	$	~~112~~148,~~833~~331	$	~~118~~154,~~441~~287
Total operating expense		~~112~~148,~~833~~331		~~118~~154,~~441~~287
Other expense:
Interest expense		1625,~~617~~350		1521,~~520~~819
Total other expense		1625,~~617~~350		1521,~~520~~819
Net loss before income taxes		(~~129~~173,~~450~~681)		(~~133~~176,~~961~~106)
Income taxes		-		-
Net loss	$	(~~129~~173,~~450~~681)	$	(~~133~~176,~~961~~106)

Revenue and Cost

We had no sales and cost for the ~~six~~nine months ended ~~December~~March 31, ~~2020~~2021 and ~~2019~~2020.

Operating expense

During the ~~six~~nine months ended ~~December~~March 31, ~~2020~~2021, our total operating expense was $~~112~~148,~~833~~331, a slight decrease of $5,~~608~~956 or 54% as compared to $~~118~~154,~~441~~287 for the ~~six~~nine months ended ~~December~~March 31, ~~2019~~2020. The decrease was primarily due to decrease in ~~legal~~payroll ~~service~~ expense.

Net loss

For the ~~six~~nine months ended ~~December~~March 31, ~~2020~~2021, we incurred a net loss of $~~129~~173,~~450~~681, as compared to a net loss of $~~133~~176,~~961~~106 for the ~~six~~nine months ended ~~December~~March 31, ~~2019~~2020, a decrease of $42,~~511~~425 or 31%. This decrease was primarily due to the decrease in operating expense.

1012

Comparison of the three months ended ~~December~~March 31, ~~2020~~2021 and ~~2019~~2020:

	For Three Months Ended December 31,
	For Three Months Ended March 31,
	2020		2019
	2021		2020
Operating expense
Selling, general and administrative expense	$	3635,~~398~~498	$	6035,~~758~~846
Total operating expense		3635,~~398~~498		6035,~~758~~846
Other expense:
Interest expense		98,~~163~~733		86,~~672~~299
Total other expense		98,~~163~~733		86,~~672~~299
Net loss before income taxes		(4544,~~561~~231)		(6942,~~430~~145)
Income taxes		-		-
Net loss	$	(4544,~~561~~231)	$	(6942,~~430~~145)

Revenue and Cost

We had no sales and cost for the three months ended ~~December~~March 31, ~~2020~~2021 and ~~2019~~2020.

Operating expense

During the three months ended ~~December~~March 31, ~~2020~~2021, our total operating expense was $3635,~~398~~498, a slight decrease of $~~24,360~~348 or 401% as compared to $6035,~~758~~846 for the three months ended ~~December~~March 31, ~~2019~~2020. ~~The~~Operating ~~main decrease was primarily due to decrease in consulting~~ expense ~~for the year ended June 30, 2020 was fully recorded~~ in ~~the~~these ~~three~~two ~~months~~periods ~~ended~~were ~~September~~relatively ~~30,~~stable ~~2020,~~and ~~but partial of~~ the ~~audit~~change ~~fee for the year ended June 30, 2019~~ was ~~recorded in the three months ended December 31, 2019~~immaterial.

Net loss

For the three months ended ~~December~~March 31, ~~2020~~2021, we incurred a net loss of $4544,~~561~~231, as compared to a net loss of $6942,~~430~~145 for the three months ended ~~December~~March 31, ~~2019~~2020, aan ~~decrease~~increase of $232,~~869~~086 or 345%. This ~~decrease~~increase was primarily due to the ~~decrease~~increase in ~~operating~~interest 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
	For the Nine Months Ended
	December 31,
	March 31,
	2020		2019
	2021		2020
Net cash used in operating activities	$	(~~108~~118,~~066~~297)	$	(89100,~~389~~951)
Net cash provided by financing activity		~~108~~118,~~084~~168		8894,~~816~~805
Effect of exchange rate changes on cash and cash equivalents		~~111~~103		~~(43)~~5,425
NET CHANGE IN CASH AND CASH EQUIVALENTS		~~129~~(26)		(~~616~~721)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		1,351		2,603
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	1,~~480~~325	$	1,~~987~~882

As of ~~December~~March 31, ~~2020~~2021, we had cash of $1,~~480~~325 in our bank accounts and a working capital deficit of $1,~~477~~506,~~337~~271.

11For the nine months ended March 31, 2021, we used net cash of $118,297 in operating activities, compared to net cash used of $100,951 in operating activities during the same period of 2020. The increase of $17,346 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.

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.13

During the ~~six~~nine months ended ~~December~~March 31, ~~2020~~2021, we received net cash of $~~108~~118,~~084~~168 from financing activity, compared to net cash received of $8894,~~816~~805 infrom financing activity during the same period in fiscal year ~~2019~~2020. The increase of $1923,~~250~~363 in net cash provided by financing activity was due to the increase in proceeds received from a related party.

Our cash level ~~increased~~decreased by $~~129~~26 during the ~~six~~nine months ended ~~December~~March 31, ~~2020~~2021, compared to a decrease of $~~616~~721 in the same period of ~~2019~~2020. The ~~changes~~change in cash ~~were~~was 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~~nine ~~quarter~~months ofended March 31, 2021 ~~was~~were 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.

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

12The 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.

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.14

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 ~~December~~March 31, ~~2020~~2021. 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 material 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 material legal proceedings, or (ii) have a material interest adverse to us in any material legal proceedings. We are not aware of any other material legal proceedings that have been threatened against us.

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

None.

Item 3. Defaults Upon Senior Securities

None.

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

None.

13Item 5. Other Information

~~Item 5~~None. ~~Other Information~~

~~None.~~15

Item 6. 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

SIGNATURES

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
Date: May 17, 2021	Dean Li
	President, Chief Executive Officer
	(Principal Executive Officer)

1416

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