10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended December 31, 2020

or

[  ] 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: 000-52417

HQDA ELDERLY LIFE NETWORK CORP.

(Exact name of registrant as specified in its charter)

NEVADA	98-1225287
(State or other jurisdiction of organization)	(IR.S. employer identification no.)

8780 Valley Blvd., Suite J

Rosemead, California 91770

(Address of principal executive offices)

(626) 877-8187

(Registrant’s telephone number, including area code)

None

(Former name, former address, and former fiscal year, if changed since last report)

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X] No [  ]

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

Large accelerated filer	[  ]	Accelerated filer	[  ]
Non-accelerated filer	[  ] (Do not check if a smaller reporting company)	Smaller reporting company	[X]
		Emerging growth company	[X]

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	HQDA	OTC Markets Group

The number of shares of Common Stock, $0.001 par value, of the registrant outstanding at February 13, 2021 was 139,314,416.

HQDA ELDERLY LIFE NETWORK CORP.

FORM 10-Q

TABLE OF CONTENTS

PART 1. FINANCIAL INFORMATION	3
ITEM 1 – CONSOLIDATED FINANCIAL STATEMENTS	3
ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	11
ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	14
ITEM 4 – CONTROLS AND PROCEDURES	14
(a) Evaluation of Disclosure Controls and Procedures	14
(b) Internal control over financial reporting	14
PART II – OTHER INFORMATION	15
ITEM 1 – LEGAL PROCEEDINGS	15
ITEM 1A. RISK FACTORS	15
ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	15
ITEM 3 – DEFAULTS UPON SENIOR SECURITIES	15
ITEM 4 – SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS	15
ITEM 5 – OTHER INFORMATION	15
ITEM 6 – EXHIBITS	16
SIGNATURE	17

2

PART 1. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

HQDA Elderly Life Network Corp.

Consolidated Balance Sheets

	December 31,			June 30,
	2020			2020
	(Unaudited)
ASSETS
Current assets:
Cash	$	150,000		$	119,955
Accounts and other receivables		88,669			52,531
Receivable - related parties		135,698			194,812
		374,367			367,298
Deposits for assets purchase		20,397,277			19,662,519
Properties and equipment, net		5,618,747			5,277,036
Capitalized software, net		44,600			46,947
Total assets	$	26,434,991		$	25,353,800
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities	$	114,199		$	52,217
Unearned revenue		27,606			32,466
Litigation reserve		1,800,424			1,209,892
Payable to related parties		3,932,903			3,537,325
		5,875,132			4,831,900
Customer deposits – long-term		62,693			7,068
Total liabilities		5,937,825			4,838,968
Commitments and contingencies – Note 8
STOCKHOLDERS’ DEFICIT
Preferred stock: authorized 10,000,000 shares of $0.001 par value; issued and outstanding, none		-			-
Common stock: authorized 200,000,000 shares of $0.001 par value; 139,314,416 shares issued and outstanding,		139,314			139,314
Additional paid-in capital		29,719,865			29,719,865
Accumulated other comprehensive loss		(697,164	)		(1,234,719	)
Accumulated deficit		(8,664,849	)		(8,109,628	)
Total stockholders’ equity		20,497,166			20,514,832
Total liabilities and stockholders’ equity	$	26,434,991		$	25,353,800

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

3

HQDA Elderly Life Network Corp.

Consolidated Statements of Comprehensive Income (loss)

(Unaudited)

	Three months ended December 31,						Six months ended December 31,
	2020			2019			2020			2019
Revenue	$	352,922		$	440,508		$	508,362		$	612,684
Operating costs:
Cost of food and beverages		52,554			191,476			99,409			197,457
Selling, general and administrative expenses		172,560			329,926			401,827			610,015
Depreciation and amortization		41,134			36,377			89,083			73,971
Litigation reserve		298,898			-			474,948			-
Total operating expenses		565,146			557,779			1,065,267			881,443
Operating loss		(212,224	)		(117,271	)		(556,905	)		(268,759	)
Other income (expense):
Interest Income		40			-			29			-
Other income (expense), net		2,771			(1,386	)		1,655			-
Net loss	$	(209,413	)	$	(118,657	)	$	(555,221	)	$	(268,759	)
Foreign currency translation, net tax		397,389			589,774			537,555			(181,380	)
Comprehensive income (loss)	$	187,976		$	471,117		$	(17,666	)	$	(450,139	)
Earnings per share
Basic and diluted loss per share	$	(0.002	)	$	(0.001	)	$	(0.004	)	$	(0.002	)
Weighted average common shares outstanding		139,314,416			139,314,416			139,314,416			139,314,416

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

4

HQDA Elderly Life Network Corp.

Consolidated Statements of Cash Flows

(Unaudited)

	Six months ended December 31
	2020			2019
Cash flow from operating activities
Net loss	$	(555,221	)	$	(268,759	)
Adjustments to reconcile loss to net cash provided by (used in) operating activities:
Depreciation and amortization		89,083			73,971
Legal reserve		474,948			-
Changes in operating assets and liabilities：
(Decrease) increase in receivables		(30,920	)		176,070
Increase in related party receivables		68,356			3,168
Increase (decrease) in accounts payable and accrued liabilities		45,272			(27,168	)
Increase (decrease) in unearned revenues		6,829			(3,310	)
Increase of customer deposits – long-term		53,174			-
Net cash provided by (used in) operating activities		151,521			(46,028	)
Cash flow from investing activities
Deposits paid for assets purchase		-			(1,576,832	)
Purchase of equipment		(359	)		-
Net cash used in investing activities		(359	)		(1,576,832	)
Cash flow from financing activities
(Decrease) increase in related party payable		(120,592	)		1,422,266
Net cash (provided by) used in financing activities		(120,592	)		1,422,266
Effect of exchange rate changes		(525	)		(74,199	)
Decrease in cash		(30,045	)		(274,793	)
Cash, beginning		119,955			350,734
Cash, ending	$	150,000		$	75,941

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

5

HQDA Elderly Life Network Corp.

Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

	Number of				Additional					Accumulated Other			Total
	Shares		Capital		Paid-in		Accumulated			Comprehensive			Stockholders’
	Issued		Stock		Capital		Deficit			Loss			Equity
Balance at June 30, 2019		139,314,416	$	139,314	$	29,719,865	$	(3,352,803	)	$	(1,138,433	)	$	25,367,943
Net loss		-		-		-		(268,759	)		-			(268,759	)
Foreign currency translation, net tax		-		-		-		-			(181,380	)		(181,380	)
Balance at December 31, 2019		139,314,416	$	139,314	$	29,719,865	$	(3,621,562	)	$	(1,319,813	)	$	24,917,804
Balance at June 30, 2020		139,314,416	$	139,314	$	29,719,865	$	(8,109,628	)	$	(1,234,719	)	$	20,514,832
Net loss		-		-		-		(555,221	)		-			(555,221	)
Foreign currency translation, net tax		-		-		-		-			537,555			537,555
Balance at December 31, 2020		139,314,416	$	139,314	$	29,719,865	$	(8,664,849	)	$	(697,164	)	$	20,497,166

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

6

1. Nature and Continuance of Operations

HQDA Elderly Life Network Corp. (formerly Hartford Retirement Network Corp.) (the “Company”) was incorporated under the laws of the State of Nevada on January 21, 2004. In November 2017, the Company acquired Shanghai Hongfu Health Management Ltd, a company incorporated in the People’s Republic China (“PRC”). Following the acquisition, on April 23, 2018, the Company changed its name to HQDA Elderly Life Network Corp.

Through its wholly-owned subsidiary, Shanghai Hongfu Health management Ltd. (“Shanghai Hongfu”), the Company purchased senior living facilities and launched a senior living residences business, which hosts to mostly men and women over the age of 50. The Company intends to expand its business of owning, leasing and/or operating senior living residences that will provide seniors with a supportive, home life setting with care and services, including activities of daily living, life enrichment and health and wellness.

The Company’s consolidated financial statements as of December 31, 2020 and for the six months ended have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company reported a net loss of $555,221 and $268,759 for the six months ended December 31, 2020 and 2019, respectively. As of December 31, 2020, it had a negative working capital deficiency of $5,500,765 while it had a negative working capital deficiency of $4,464,602 at June 30, 2020.

There is limited historical financial information about the Company upon which to base of an evaluation of our performance. We shifted its focus to senior housing and retirement services and products. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new resource exploration company, including limited capital resources, unanticipated problems relating to exploration and additional costs and expenses that may exceed current estimates. To become profitable, we will attempt to implement a plan of operation as detailed above.

Our cash reserves are not sufficient to meet our obligations for the next twelve-month period. As a result, we will need to seek additional capital in the near future. We anticipate that additional capital will be raised in the form of equity financing from the sale of our common stock. As well, our management is prepared to provide us with short-term loans.

We cannot provide investors with any assurance that we will be able to raise sufficient capital from the sale of our common stock or through a loan from our directors to meet our obligations over the next twelve months. We do not have any arrangements in place for any future equity financing. If we are unable to arrange additional financing, our business plan will fail and operations will cease.

2. Basis of Significant Accounting policies

Principles of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Company’s consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Shanghai Hongfu Health Management Ltd. All inter-company balances have been eliminated upon consolidation. The Company’s fiscal year end is June 30.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the identification and disclosure of impaired assets and contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

Foreign currency translation

The United States dollar (“USD”) is the Company’s reporting currency. The Company’s wholly owned subsidiary, Shanghai Hongfu is located in Shanghai, China. The net sales generated, and the related expenses directly incurred from the operations are denominated in local currency, Renminbi (“RMB”). The functional currency of the subsidiary is generally the same as the local currency.

Assets and liabilities measured in RMB are translated into USD at the prevailing exchange rates in effect as of the financial statement date and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive income (loss) in its consolidated balance sheets. Income and expense accounts are translated at the average exchange rate for the period. The Company has not, to the date of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Certain amounts in prior periods have been reclassified to conform with current period presentation.

7

Revenue recognition

The Company adopted ASC 606 using the modified retrospective method on July 1, 2018. The Company evaluated its revenue streams to identify whether it would be subject to the provisions of ASC 606 and any differences in timing, measurement or presentation of revenue recognition. The Company’s main source of revenue is generated from operating senior living residences. The Company recognizes resident fees and services, other than move-in fees, daily as services are provided. Under ASC 606, the pattern and timing of recognition of income from assisted living facility is consistent with the prior accounting model.

Recently issued accounting pronouncements adopted

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 (Topic 842) “Leases.” Topic 842 supersedes the lease recognition requirements in Accounting Standards Codification (“ASC”) Topic 840 “Leases.” Under Topic 842, lessees are required to recognize a right-of-use asset and a lease liability for substantially all leases. Leases will continue to be classified as either finance or operating. Topic 842 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2018 with early adoptions permitted. The Company adopted the new standard July 1, 2019. As part of the adoption of ASU 2016-02, the Company made an accounting policy election that will not recognizing leases with an initial term of 12 months or less on the consolidated balance sheet. The Company only has one month-to-month office lease since July 1, 2019. The adoption of this new accounting standard did not have an effect on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which eliminates the requirement to calculate the implied fair value of goodwill, but rather requires an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company adopted ASU No. 2017-04 on July 1, 2020 and the adoption did not have an impact on the Company’s interim financial position and results of operations.

Recently Issued Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses”. The standard, including subsequently issued amendments (ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2019-11), requires a financial asset measured at amortized cost basis, such as accounts receivable and certain other financial assets, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of this guidance on its consolidated financial statements.

3. Related party Transactions

Receivable and Payable

Receivable from related parties amounted $135,698 and $194,812 at December 31 and June 30, 2020, respectively. Payable to related parties amounted to $3,932,903 and $3,537,325 at December 31 and June 30, 2020, respectively. The related party amounts are mainly operation advances and funding to support the Company’s daily operations. The payable balances bear no interest and due on demand.

Related party transactions

On July 2018, the Company entered a $172,600 (RMB1,185,000) service agreement with one entity that is under the common control of the Company’s CEO to develop the Company’s website and a BBC shopping APP. The Company capitalized the development cost of the website and APP in the amount of $146,710 based on the completion percentage method. During the year ended June 30, 2020, the APP development was halt and no further progress was made while the website was completed. The Company decided and mutually agreed to terminate the remaining APP development effective on June 30, 2020 due to the strategic direction and macro-economic condition. The unperformed obligation under the service agreement for both parties were cancelled semiseriously pursuant to the termination agreement. $43,150 payable to the related party was waived and recognized as other income accordingly as of June 30, 2020.

8

On September 1, 2019, the Company entered a three-year cooperation agreement with Zhonghuiai Wufu (Shanghai) Hotel Management Co., Ltd., (“ZHAWF Shanghai”), a related party, with respect to the daily operation and management of the senior hotel purchased on April 2018. According to the agreement, the Company shall pay RMB one million per year to ZHAWF Shanghai for the service provided. The Company amended the execution date of the cooperation agreement from September 1, 2018 to January 1, 2019 with three-year term. For the three and six months ended December 31, 2020, the Company recorded hotel management fee of $38,228 (RMB250,000) and $76,455 (RMB 0.5 million), respectively. Payable due to ZHAWF Shanghai as of December 31, 2020 and June 30, 2020 was $307,877 and $102,268, respectively.

Other

During the three and six months ended December 31, 2020, the Company recorded management fees of $$30,000 and $60,000 for the service provided by Chief Financial Officer, respectively, and $30,000 and $55,892 for the three and six months ended December 31, 2019, respectively. As of December 31, 2020, the payable due to Chief Financial Officer was $33,880.

4. Asset Acquisition

On April 2，2018, the Company entered into an Asset Purchase Agreement (the “APA”) whereby the Company will purchase land use rights, buildings, construction rights and other property rights located in Shanghai from a third party for a total purchase price of $36,991,173 (RMB 233,000,0000 at exchange rate of 0.1587), which was its approximate fair value as estimated by a third-party appraisal firm. A summary of fair value of the asset as following:

Description	Location	Amount (1)		Amount
		(in dollars)		(in RMB)
Building and building improvements and land use rights	Shanghai Pudong New Area Zhangjiang Ziwei Rd No. 372 and No. 376.		30,778,879		193,870,000
Land use rights	Shanghai Chongming District San Shuang Gong Lu No. 4797.		6,212,294		39,130,000
			36,991,173		233,000,000

(1) The exchange rate of 0.1587 was used to translate the RMB amounts at purchase date.

As of December 31, 2020, the Company has paid a total of $26,912,138 (RMB 176 million). On September 1, 2018, the Company obtained the full management and operation rights of the senior hotel property and other assets (Property A) located at Shanghai Pudong New Area pursuant to the Operation Rights Transferring Agreement entered on August 31, 2018 with the seller. Although the Company has the rights to operate the senior living services of Asset A purchased under this agreement, and is currently generating revenues, the Company has not received a deed because the seller is involved in several lawsuits that have restrictions on assets transferring sentenced Shanghai local district courts. The Company has decided not to make any further payments until the asset is legally free of the restrictions. The Seller filed a lawsuit against Shanghai Hongfu for the contract default and no-payment on installments pursuant to the APA on May 1, 2020. See Note 8 for details about the lawsuit.

Further, the Company consummated the share purchase agreement to acquire the entity – Shanghai Qiaoyuan Information Technology Co., Ltd (“SH QYIT”) on November 2018 who holds the land use rights of Property B located on Shanghai Chongming. Asset B has been transferred to Properties and equipment, net during the year ended June 30, 2019. The two acquisitions were accounted for assets acquisitions.

On April 16, 2019 the Company entered into a Business Project Investment Agreement (the “Acquisition Agreement”) with Palau Asia Pacific International Aviation and Travel Agency (“Palau Asia-Pacific”) consisting of Palau Asia Pacific Air Management Limited, Global Tourism Management Limited and Global (Guangzhou) Tourism Service Co., Ltd. (collectively the “Project Company”) pursuant to which it will acquire 51% of the issued and outstanding capital stock of Project Company for $8,000,000, representing 49% of the Project .The Company paid $3,000,000 deposit on April 2019 toward the Acquisition Agreement entered and decided to rescind the investment given the ongoing COVID-19 pandemic. The Company entered a rescission agreement (the “Rescission Agreement”) with Palau Asia-Pacific on September 8, 2020. According to the Rescission Agreement, the Company shall return the 51% stock ownership back to Palau Asia-Pacific, who shall deliver to us $285,514 and $733,200 Hong Kong Dollar back, totaling $94,605 cash, thus both parties shall release each other from further liabilities under the Acquisition Agreement. As of June 30, 2020, the Company recorded $2,619,881 impairment loss toward $3,000,000 deposit paid pursuant to the Rescission Agreement. $380,119 total residual amount was received by the end of June 30, 2020.

9

5. Properties and Equipment, net

	December 31,			June 30,
	2020			2020
Land use rights and land use rights improvements	$	5,983,363		$	5,531,446
Furniture and office equipment		7,002			6,130
Capitalized software		44,600			46,947
Minus: Accumulated depreciation and amortization		(371,618	)		(260,540	)
Properties and Equipment, net	$	5,663,347		$	5,323,983

For the six months ended December 31, 2020 and 2019, the depreciation and amortization expenses were $89,083 and $73,971, respectively, and $41,135 and $36,377 for the three months ended December 31, 2020 and 2019, respectively.

6. Capital Stock

As of December 31 and June 30, 2020, the total issued and outstanding capital stocks was 139,314,416 common shares with a par value of $0.001 per common share. No additional stock issued for three and six months ended December 31, 2020 and 2019.

7. Segment Information

The Company operates in one industry segment, being the senior housing and retirement services through its wholly owned subsidiary in China. As of December 31 and June 30, 2020, the subsidiary had an amount of $15,653,705 and$14,461,546, respectively, in total assets, excluding inter-company balances, and it generated $508,362 and $612,684 for the six months ended December 31, 2020 and 2019, respectively, in revenue. There was no revenue generated from inter-company transactions.

8. Commitments

The Company entered into the APA to acquire two properties in Shanghai totaling RMB 233,000,000. Payments of $26,912,138 (RMB 176,000,000) have been made through December 31, 2020. Due to the Seller of the assets has involved in several lawsuits that have restrictions on assets transferring (i.e. Property A) sentenced by Shanghai local district courts, the Company has decided not to make remaining payments until the asset is free of the restrictions on May 1, 2020.

On May 1, 2020, a lawsuit was filed against the Company and Shanghai Hongfu, by Shanghai Qiao Hong Real Estate, Ltd (i.e. the seller) and its subsidiaries (the “Plaintiff”) for breach of contract and non-payment of installments pursuant to the APA entered into between the Company and the Plaintiff on April 2, 2018. The Plaintiff is alleging damages of RMB 76,654,000 (approximately $11,721,154), including remaining RMB58 million installments, interest for delayed payment, default penalty, and etc. The lawsuit was filed in a District Court in Shanghai, China. The Company intends to vigorously defend this action. The court had initial opening on August 8, 2020, and the District Court in Shanghai ruled the first verdict on November 18, 2020, which was in favor of the Plaintiff’s claim - the Company should pay RMB11,140,000 penalty along with the lawsuit fee RMB374,415 and the remaining RMB57,000,000 installments to complete the APA . The Company appealed the verdict by the end of 2020 and the lawsuit is processing by the High People’s Court so far.

As of December 31, 2020, the remaining installments under APA was RMB57,000,000. And for the six months ended December 31, 2020, the Company has fully reserved $1,800,424 (approximate RMB11.5 million) amount for the penalty and lawsuit fee.

On October 26, 2020, the Company acquired 10% of the issued and outstanding shares (the “Shares”) of Lianyungang Yiheyuan Elderly Services Co., Ltd., a corporation registered in Jiangsu Province, PRC (“LYES”) pursuant to a Securities Purchase Agreement (the “Agreement”). In accordance with the Agreement, HQDA is purchasing the Shares in exchange for 234,845 shares of HQDA’s common stock valued at $1.00 per share, equivalent to 10% of the initial RMB16, 000,000 (approximately USD$2,348,450) registered capital of LYES. LYES operates a profitable elderly services business in its local hot spring resort. As of December 31, 2020, the transaction has not yet consummated.

9. Subsequent Event

None

10

ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The terms “HQDA”, “Company”, “we”, “our”, and “us” refer to HQDA Elderly Life Network Corp. (formerly Hartford Retirement Network Corp.) unless the context suggests otherwise.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this Form 10-Q that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including without limitation the Risk Factors set forth in our Annual Report on Form 10-K for the year ended June 30, 2018 including the following:

● our failure to obtain additional financing;

● our inability to continue as a going concern;

● the unique difficulties and uncertainties inherent in the business;

● local and multi-national economic and political conditions, and

● our common stock.

General

HQDA Elderly Life Network Corp. (formerly Hartford Retirement Network Corp.) (“HQDA” or the “Company”) was incorporated in the State of Nevada on January 21, 2004. Our principal offices are located at Suite J, 8780 Valley Blvd., Rosemead, California 91770. Our telephone number is (626) 877-8187.

The Company has not had any bankruptcy, receivership or similar proceeding since incorporation.

Our business plan is owning, leasing and/or operating senior living residences that provide seniors with a supportive, home life setting with care and services, including activities of daily living, life enrichment and health and wellness in certain cities in China. We also plan to operate a network carrier, providing scheduled air transportation to passengers, travel destination services to leisure travelers.

The Senior Living Industry

Through our newly acquired and wholly-owned subsidiary, Shanghai Hongfu Health management Ltd., we purchased senior living facilities in April 2018, launched a senior living residences business, which, hosts to mostly men and women over the age of 50. We intend to expand the business of owning, leasing and/or operating senior living residences that will provide seniors with supportive, home life setting with care and services, including activities of daily living, life enrichment and health and wellness in China.

The senior living industry encompasses a broad spectrum of senior living service and care options, which include independent living, assisted living and skilled nursing care. Our primary focus will be on the independent living services. Independent living is designed to meet the needs of seniors who choose to live in an environment surrounded by their peers where they receive services such as housekeeping, meals and activities, but are not reliant on assistance with activities of daily living (for example, bathing, eating and dressing), although we may offer these services through contracts with third parties.

Our operating philosophy is to provide services and care which meet the individual needs of its residents, and to enhance their physical and mental well-being, thereby allowing them to live longer and to “age in place.” These facilities will offer, on a 24-hour basis, personal, supportive and home health care services appropriate for their residents in a home-like setting, which allow residents to maintain their independence and quality of life. We predict that the average of the residents at our facilities will be between 55 and 70.

Our primary focus will be in China, where we intend to grow and become a leader in senior living facilities. We also will seek to develop or acquire facilities and manage or cooperate with existing facilities as well. We believe that by concentrating or “clustering” our facilities in target areas with desirable demographics, can increase the efficiency of our management resources and achieve broad economies of scale.

11

The long-term care industry encompasses a wide continuum of services and residential arrangements for elderly senior citizens. Skilled nursing facilities provide the highest level of care and are designed for elderly senior citizens who need chronic nursing and medical attention and are not able to live on their own. Further, skilled nursing facilities tend to be one of the most expensive alternatives while providing elderly senior citizens with limited independence and a diminished quality of life. On the other end of the continuum is home-based care, which typically is provided in an individual’s private residence. While this alternative allows the elderly individual to “age in place” in his or her home and, in certain instances, can provide most of the services available at a skilled nursing facility, it does not foster any sense of community or the ability to participate in group activities.

Assisted living facilities generally are designed to fill the gap in the middle of this continuum. Assisted living facilities have been described by the Assisted Living Federation of America (“ALFA”) as providing a special combination of housing and personal, supportive and home health care services designed to respond to the individual needs of those who need, or desire help with their activities of daily living, including personal care and household management. Services in an assisted living facility are generally available 24 hours a day to meet the scheduled and unscheduled needs of residents, thereby promoting maximum dignity and independence.

The assisted living industry is highly fragmented in China. At present, the industry is characterized by participants who operate only a limited number of facilities and who frequently can offer only basic assistance with a limited number of activities of daily living. We intend to be characterized by the following: (i) the ability to offer premium accommodations and a comprehensive bundle of standard services for a single inclusive monthly fee; (ii) sophisticated, professional management structures and highly trained employees; (iii) a cost-efficient, user-specific prototype facility; and (iv) experience in providing home health care services.

Our facilities will provide services and care which are designed to meet the individual needs of its residents, enhance their physical and mental well-being and promote a supportive, independent and home-like setting. Most of our facilities will be primarily designed as premium facilities at which residents receive a comprehensive, bundled package of standard services for a single monthly fee.

We will strive to combine in our facilities the best aspects of independent living with the protection and safety of assisted living, with trained staff members who provide 24-hour care and monitoring of every resident. The senior living facilities will be designed and decorated to have a home-like atmosphere. Residents will be encouraged to furnish their rooms with personal items they have collected during their lifetime. Our senior living facilities differ from skilled nursing facilities in that our senior living facilities will not provide the more extensive, and costly, nursing and medical care found in nursing homes.

12

Results of Operations

	Three months ended December 31
	2020			2019			Changes
Revenue	$	352,922		$	440,508		$	(87,586	)
Operating costs:
Cost of food and beverages		52,554			191,476			(138,922	)
General and administrative cost		172,560			329,926			(157,366	)
Litigation expenses		298,898			-			298,898
Depreciation and amortization		41,134			36,377			4,757
		565,146			557,779			7,367
Operating loss	$	(212,224	)	$	(117,271	)	$	(94,953	)

	Six months ended December 31
	2020			2019			Changes
Revenue	$	508,362		$	612,684		$	(104,322	)
Operating costs:
Cost of food and beverages		99,409			197,457			(98,048	)
General and administrative cost		401,827			610,015			(208,188	)
Litigation expenses		474,948			-			474,948
Depreciation and amortization		89,083			73,971			15,112
		1,065,267			881,443			183,824
Operating loss	$	(556,905	)	$	(268,759	)	$	(288,146	)

Three months ended December 31, 2020 compared to three months ended December 31, 2019

The revenue for the three months ended December 31, 2020 decreased by $87,586 compared with the same period ended December 31,2019. The decrease is mainly due to the impact of COVID-19 small outbreak in Shanghai during the period.

The increase of operating loss amounted $94,953 for the three months ended December 31, 2020 as compared to the same period ended in 2019 was mainly due to the increase of Litigation reserve of $298,898, offset the decrease in G&A of $157,366 and cost of food beverages of $138,922.

Excluding the non-cash expenses of depreciation and amortization, the operating loss would have been $171,090 and $80,894, for the three months ended December 31, 2020 and 2019, respectively.

Six months ended December 31, 2020 compared to six months ended December 31, 2019

The revenue for the six months ended December 31, 2020 decreased by $104,322 compared with the same period ended December 31,2019. The decrease is mainly due to the impact of COVID-19 small outbreak in Shanghai during the last quarter in 2020.

The increase of operating loss amounted $288,146 for the six months ended December 31, 2020 as compared to the same period ended in 2019 was mainly due to the increase of Litigation reserve of $474,948, offset with the decrease of G&A expense approximately $208,188.

Excluding the non-cash expenses of depreciation and amortization, the operating loss would have been $467,822 and $194,788, for the six months ended December 31, 2020 and 2019, respectively.

Liquidity and Capital Resources

On December 31, 2020, we had cash on hand of $150,000 and liabilities of $5,937,825. We will require additional funding in order to cover all anticipated administration costs and to proceed with the Asset Purchase Agreement executed on April 2, 2018 and to seek out additional travel agents for similar contracts. We also intend to provide management services to retirement homes, commercial properties and apartment buildings in China, which will result in higher administrative costs in the future.

Capital Expenditures

On April 2, 2018, we entered into an Asset Purchase Agreement (the “APA”) whereby we purchased land, buildings, and right to use, construction use rights and other property rights located in Shanghai from a third party. Properties are split into two groups:

● Property A: land use rights and adhesive substance use rights, right to own, and right to operate of the land located in Shanghai Pudong New Area Zhangjiang Ziwei Rd No. 372 and No. 376.

● Property B: land use right, adhesive substance under construction use rights, right to own, and right to operate of the land located in Shanghai Chongming District San Shuang Gong Lu No. 4797.

We have agreed to pay the purchase price totaling RMB 233,000,000 in instalments. Payments of $26,912,138 (RMB 176,000,000) have been made through December 31, 2020 and the remainder of $8,715,863 (RMB57,000,000) is not going to pay until this asset is free of the restrictions.

Employees

At present, we have 14 employees, other than our current officers and directors, who devote their time as required to our business operations.

13

Off-balance Sheet Arrangements

As of December 31, 2020, we have no off-balance sheet arrangements that would require disclosure.

Critical Accounting Policies

Our interim financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Preparing financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the balance sheet dates, and the recognition of revenues and expenses for the reporting periods. These estimates and assumptions are affected by management’s application of accounting policies.

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We do not issue or invest in financial instruments or their derivatives for trading or speculative purposes. The Company cannot guarantee that the current exchange rate will remain stable, therefore there is a possibility that the Company could post the same amount of income for two comparable periods and because of the fluctuating exchange rate post higher or lower income depending on exchange rate converted into US$ at the end of the financial year. The exchange rate could fluctuate depending on changes in political and economic environments without notice.

ITEM 4 – CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

Based on our management’s evaluation (with the participation of our President and Chief Financial Officer), our President and Chief Financial Officer have concluded that as of the end of the period covered by this report, our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange of 1934 (the “Exchange Act”)) are not effective to provide reasonable assurance that the information required to be disclosed in this quarterly report on Form 10-Q is recorded, processed, summarized and reported within the time period specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

(b) Internal control over financial reporting

Management’s annual report on internal control over financial reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP. Our internal control over financial reporting should include those policies and procedures that: pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with applicable GAAP, and that receipts and expenditures are being made only in accordance with authorizations of management and the Board of Directors; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Changes in internal control over financial reporting

Based upon their evaluation of our controls, Ms. Ziyun Xu, our Chief Executive Officer, and Mr. Jimmy Zhou, our Chief Financial Officer, has concluded that, there were no significant changes in our internal control over financial reporting or in other factors during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Attestation report of the registered public accounting firm

This quarterly report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the company to provide only management’s report in this report.

There were no changes in our internal controls that occurred during the quarter covered by this report that have materially affected or are reasonably likely to materially affect our internal controls.

14

PART II – OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

The Company is not a party to any pending legal proceeding. Our management is not aware of any threatened litigation, claims or assessments except below:

On May 1, 2020, a lawsuit was filed against the Company and Shanghai Hongfu, by Shanghai Qiao Hong Real Estate, Ltd (i.e. the Seller) and its subsidiaries (the “Plaintiff”) for breach of contract and non-payment of installments pursuant to the APA entered into between the Company and the Plaintiff on April 2, 2018. The Plaintiff is alleging damages of RMB 76,654,000 (approximately $10,842,150), including remaining RMB58 million installments, interest for delayed payment, default penalty, and etc. The lawsuit was filed in a District Court in Shanghai, China. The Company intends to vigorously defend this action. The court had initial opening for the lawsuit on August 8.

On November 18, 2020, there was a first verdict by the District Court in Shanghai, which was in favor of the Plaintiff’s claim, the Company should pay the penalty RMB11,140,000 along with the lawsuit fee RMB374,415 and the rest of RMB57,000,000 for the completion of the APA. The Company appealed by the end of 2020 and the lawsuit is processing in the High People’s Court so far.

ITEM 1A. RISK FACTORS

Not Applicable

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

ITEM 5 – OTHER INFORMATION

None

15

ITEM 6 – EXHIBITS

The following exhibits are furnished as required by Item 601 of Regulation S-B.

Exhibit No.	Exhibit Title
3(i)	Articles of Incorporation*
3(ii)	Bylaws *
31.a	Certificate of CEO as Required by Rule 13a-14(a)/15d-14
31.b	Certificate of CFO as Required by Rule 13a-14(a)/15d-14
32.a	Certificate of CEO and CFO as Required by Rule 13a-14(b) and Rule 15d-14(b) (17 CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code

*	Included in our original SB-2 Registration Statement filed on December 9, 2004.
**	Included in our SB-2 Amended Registration Statement filed on October 19, 2005.

16

SIGNATURE

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

	HQDA Elderly Life Network Corp.
February 16, 2021	BY:	/s/ Ziyun Xu
Date		Ziyun Xu, Chief Executive Officer
February 16, 2021	BY:	/s/ Jimmy Zhou
Date		Jimmy Zhou, Chief Financial Officer

17

EX-31.A

Exhibit 31.a

CERTIFICATION

I, Ziyun Xu, certify that:

1. I have reviewed this Form 10-Q of HQDA Elderly Life Network Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 16, 2021

/s/ Ziyun Xu

Ziyun Xu, CEO

(Principal Executive Officer)

EX-31.B

Exhibit 31.b

CERTIFICATION

I, Jimmy Zhou, certify that:

1. I have reviewed this Form 10-Q of HQDA Elderly Life Network Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 16, 2021

/s/ Jimmy Zhou

Jimmy Zhou, CFO

(Principal Accounting Officer)

EX-32.A

Exhibit 32.a

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q (the “Report”) of HQDA Elderly Life Network Corp. (formerly Hartford Retirement Network Corp.) (the “Company”) for the quarter ended December 31, 2020, each of Ziyun Xu, the Chief Executive Officer, and Jimmy Zhou, the Chief Financial Officer, of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of the undersigned’s knowledge and belief: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Ziyun Xu

Ziyun Xu, Principal Executive Officer

February 16, 2021

/s/ Jimmy Zhou

Jimmy Zhou, Principal Financial Officer

February 16, 2021

XML

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2020	Feb. 13, 2021
Cover [Abstract]
Entity Registrant Name	HQDA ELDERLY LIFE NETWORK CORP.
Entity Central Index Key	0001304730
Document Type	10-Q
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		139,314,416
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021

XML

Consolidated Balance Sheets - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Current assets:
Cash	$ 150,000	$ 119,955
Accounts and other receivables	88,669	52,531
Receivable - related parties	135,698	194,812
Total current assets	374,367	367,298
Deposits for assets purchase	20,397,277	19,662,519
Properties and equipment, net	5,618,747	5,277,036
Capitalized software, net	44,600	46,947
Total assets	26,434,991	25,353,800
Current liabilities:
Accounts payable and accrued liabilities	114,199	52,217
Unearned revenue	27,606	32,466
Litigation reserve	1,800,424	1,209,892
Payable to related parties	3,932,903	3,537,325
Total current liabilities	5,875,132	4,831,900
Customer deposits - long-term	62,693	7,068
Total liabilities	5,937,825	4,838,968
Commitments and contingencies - Note 8
STOCKHOLDERS' DEFICIT
Preferred stock: authorized 10,000,000 shares of $0.001 par value; issued and outstanding, none
Common stock: authorized 200,000,000 shares of $0.001 par value; 139,314,416 shares issued and outstanding,	139,314	139,314
Additional paid-in capital	29,719,865	29,719,865
Accumulated other comprehensive loss	(697,164)	(1,234,719)
Accumulated deficit	(8,664,849)	(8,109,628)
Total stockholders' equity	20,497,166	20,514,832
Total liabilities and stockholders' equity	$ 26,434,991	$ 25,353,800

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2020	Jun. 30, 2020
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, shares authorized	200,000,000	200,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	139,314,416	139,314,416
Common stock, shares outstanding	139,314,416	139,314,416

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Revenue	$ 352,922	$ 440,508	$ 508,362	$ 612,684
Operating costs:
Cost of food and beverages	52,554	191,476	99,409	197,457
Selling, general and administrative expenses	172,560	329,926	401,827	610,015
Depreciation and amortization	41,134	36,377	89,083	73,971
Litigation reserve	298,898		474,948
Total operating expenses	565,146	557,779	1,065,267	881,443
Operating loss	(212,224)	(117,271)	(556,905)	(268,759)
Other income (expense):
Interest Income	40		29
Other income (expense), net	2,771	(1,386)	1,655
Net loss	(209,413)	(118,657)	(555,221)	(268,759)
Foreign currency translation, net tax	397,389	589,774	537,555	(181,380)
Comprehensive income (loss)	$ 187,976	$ 471,117	$ (17,666)	$ (450,139)
Earnings per share
Basic and diluted loss per share	$ (0.002)	$ (0.001)	$ (0.004)	$ (0.002)
Weighted average common shares outstanding	139,314,416	139,314,416	139,314,416	139,314,416

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Cash flow from operating activities
Net loss	$ (209,413)	$ (118,657)	$ (555,221)	$ (268,759)
Adjustments to reconcile loss to net cash provided by (used in) operating activities:
Depreciation and amortization	41,134	36,377	89,083	73,971
Legal reserve	298,898		474,948
Changes in operating assets and liabilities?
(Decrease) increase in receivables			(30,920)	176,070
Increase in related party receivables			68,356	3,168
Increase (decrease) in accounts payable and accrued liabilities			45,272	(27,168)
Increase (decrease) in unearned revenues			6,829	(3,310)
Increase of customer deposits - long-term			53,174
Net cash provided by (used in) operating activities			151,521	(46,028)
Cash flow from investing activities
Deposits paid for assets purchase				(1,576,832)
Purchase of equipment			(359)
Net cash used in investing activities			(359)	(1,576,832)
Cash flow from financing activities
(Decrease) increase in related party payable			(120,592)	1,422,266
Net cash (provided by) used in financing activities			(120,592)	1,422,266
Effect of exchange rate changes			(525)	(74,199)
Decrease in cash			(30,045)	(274,793)
Cash, beginning			119,955	350,734
Cash, ending	$ 150,000	$ 75,941	$ 150,000	$ 75,941

XML

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Capital Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balance at Jun. 30, 2019	$ 139,314	$ 29,719,865	$ (3,352,803)	$ (1,138,433)	$ 25,367,943
Balance, shares at Jun. 30, 2019	139,314,416
Net loss			(268,759)		(268,759)
Foreign currency translation, net tax				(181,380)	(181,380)
Balance at Dec. 31, 2019	$ 139,314	29,719,865	(3,621,562)	(1,319,813)	24,917,804
Balance, shares at Dec. 31, 2019	139,314,416
Balance at Jun. 30, 2020	$ 139,314	29,719,865	(8,109,628)	(1,234,719)	20,514,832
Balance, shares at Jun. 30, 2020	139,314,416
Net loss			(555,221)		(555,221)
Foreign currency translation, net tax				537,555	537,555
Balance at Dec. 31, 2020	$ 139,314	$ 29,719,865	$ (8,664,849)	$ (697,164)	$ 20,497,166
Balance, shares at Dec. 31, 2020	139,314,416

XML

Nature and Continuance of Operations

6 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature and Continuance of Operations

1. Nature and Continuance of Operations

HQDA Elderly Life Network Corp. (formerly Hartford Retirement Network Corp.) (the “Company”) was incorporated under the laws of the State of Nevada on January 21, 2004. In November 2017, the Company acquired Shanghai Hongfu Health Management Ltd, a company incorporated in the People’s Republic China (“PRC”). Following the acquisition, on April 23, 2018, the Company changed its name to HQDA Elderly Life Network Corp.

Through its wholly-owned subsidiary, Shanghai Hongfu Health management Ltd. (“Shanghai Hongfu”), the Company purchased senior living facilities and launched a senior living residences business, which hosts to mostly men and women over the age of 50. The Company intends to expand its business of owning, leasing and/or operating senior living residences that will provide seniors with a supportive, home life setting with care and services, including activities of daily living, life enrichment and health and wellness.

The Company’s consolidated financial statements as of December 31, 2020 and for the six months ended have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company reported a net loss of $555,221 and $268,759 for the six months ended December 31, 2020 and 2019, respectively. As of December 31, 2020, it had a negative working capital deficiency of $5,500,765 while it had a negative working capital deficiency of $4,464,602 at June 30, 2020.

There is limited historical financial information about the Company upon which to base of an evaluation of our performance. We shifted its focus to senior housing and retirement services and products. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new resource exploration company, including limited capital resources, unanticipated problems relating to exploration and additional costs and expenses that may exceed current estimates. To become profitable, we will attempt to implement a plan of operation as detailed above.

Our cash reserves are not sufficient to meet our obligations for the next twelve-month period. As a result, we will need to seek additional capital in the near future. We anticipate that additional capital will be raised in the form of equity financing from the sale of our common stock. As well, our management is prepared to provide us with short-term loans.

We cannot provide investors with any assurance that we will be able to raise sufficient capital from the sale of our common stock or through a loan from our directors to meet our obligations over the next twelve months. We do not have any arrangements in place for any future equity financing. If we are unable to arrange additional financing, our business plan will fail and operations will cease.

XML

Basis of Significant Accounting policies

6 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of Significant Accounting policies

2. Basis of Significant Accounting policies

Principles of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Company’s consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Shanghai Hongfu Health Management Ltd. All inter-company balances have been eliminated upon consolidation. The Company’s fiscal year end is June 30.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the identification and disclosure of impaired assets and contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

Foreign currency translation

The United States dollar (“USD”) is the Company’s reporting currency. The Company’s wholly owned subsidiary, Shanghai Hongfu is located in Shanghai, China. The net sales generated, and the related expenses directly incurred from the operations are denominated in local currency, Renminbi (“RMB”). The functional currency of the subsidiary is generally the same as the local currency.

Assets and liabilities measured in RMB are translated into USD at the prevailing exchange rates in effect as of the financial statement date and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive income (loss) in its consolidated balance sheets. Income and expense accounts are translated at the average exchange rate for the period. The Company has not, to the date of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Certain amounts in prior periods have been reclassified to conform with current period presentation.

Revenue recognition

The Company adopted ASC 606 using the modified retrospective method on July 1, 2018. The Company evaluated its revenue streams to identify whether it would be subject to the provisions of ASC 606 and any differences in timing, measurement or presentation of revenue recognition. The Company’s main source of revenue is generated from operating senior living residences. The Company recognizes resident fees and services, other than move-in fees, daily as services are provided. Under ASC 606, the pattern and timing of recognition of income from assisted living facility is consistent with the prior accounting model.

Recently issued accounting pronouncements adopted

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 (Topic 842) “Leases.” Topic 842 supersedes the lease recognition requirements in Accounting Standards Codification (“ASC”) Topic 840 “Leases.” Under Topic 842, lessees are required to recognize a right-of-use asset and a lease liability for substantially all leases. Leases will continue to be classified as either finance or operating. Topic 842 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2018 with early adoptions permitted. The Company adopted the new standard July 1, 2019. As part of the adoption of ASU 2016-02, the Company made an accounting policy election that will not recognizing leases with an initial term of 12 months or less on the consolidated balance sheet. The Company only has one month-to-month office lease since July 1, 2019. The adoption of this new accounting standard did not have an effect on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which eliminates the requirement to calculate the implied fair value of goodwill, but rather requires an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company adopted ASU No. 2017-04 on July 1, 2020 and the adoption did not have an impact on the Company’s interim financial position and results of operations.

Recently Issued Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses”. The standard, including subsequently issued amendments (ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2019-11), requires a financial asset measured at amortized cost basis, such as accounts receivable and certain other financial assets, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of this guidance on its consolidated financial statements.

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Related Party Transactions

6 Months Ended

Dec. 31, 2020

Related Party Transactions [Abstract]

Related Party Transactions

3. Related party Transactions

Receivable and Payable

Receivable from related parties amounted $135,698 and $194,812 at December 31 and June 30, 2020, respectively. Payable to related parties amounted to $3,932,903 and $3,537,325 at December 31 and June 30, 2020, respectively. The related party amounts are mainly operation advances and funding to support the Company’s daily operations. The payable balances bear no interest and due on demand.

Related party transactions

On July 2018, the Company entered a $172,600 (RMB1,185,000) service agreement with one entity that is under the common control of the Company’s CEO to develop the Company’s website and a BBC shopping APP. The Company capitalized the development cost of the website and APP in the amount of $146,710 based on the completion percentage method. During the year ended June 30, 2020, the APP development was halt and no further progress was made while the website was completed. The Company decided and mutually agreed to terminate the remaining APP development effective on June 30, 2020 due to the strategic direction and macro-economic condition. The unperformed obligation under the service agreement for both parties were cancelled semiseriously pursuant to the termination agreement. $43,150 payable to the related party was waived and recognized as other income accordingly as of June 30, 2020.

On September 1, 2019, the Company entered a three-year cooperation agreement with Zhonghuiai Wufu (Shanghai) Hotel Management Co., Ltd., (“ZHAWF Shanghai”), a related party, with respect to the daily operation and management of the senior hotel purchased on April 2018. According to the agreement, the Company shall pay RMB one million per year to ZHAWF Shanghai for the service provided. The Company amended the execution date of the cooperation agreement from September 1, 2018 to January 1, 2019 with three-year term. For the three and six months ended December 31, 2020, the Company recorded hotel management fee of $38,228 (RMB250,000) and $76,455 (RMB 0.5 million), respectively. Payable due to ZHAWF Shanghai as of December 31, 2020 and June 30, 2020 was $307,877 and $102,268, respectively.

Other

During the three and six months ended December 31, 2020, the Company recorded management fees of $$30,000 and $60,000 for the service provided by Chief Financial Officer, respectively, and $30,000 and $55,892 for the three and six months ended December 31, 2019, respectively. As of December 31, 2020, the payable due to Chief Financial Officer was $33,880.

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Asset Acquisition

6 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Asset Acquisition

4. Asset Acquisition

On April 2，2018, the Company entered into an Asset Purchase Agreement (the “APA”) whereby the Company will purchase land use rights, buildings, construction rights and other property rights located in Shanghai from a third party for a total purchase price of $36,991,173 (RMB 233,000,0000 at exchange rate of 0.1587), which was its approximate fair value as estimated by a third-party appraisal firm. A summary of fair value of the asset as following:

Description	Location	Amount (1)		Amount
		(in dollars)		(in RMB)
Building and building improvements and land use rights	Shanghai Pudong New Area Zhangjiang Ziwei Rd No. 372 and No. 376.		30,778,879		193,870,000
Land use rights	Shanghai Chongming District San Shuang Gong Lu No. 4797.		6,212,294		39,130,000
			36,991,173		233,000,000

(1) The exchange rate of 0.1587 was used to translate the RMB amounts at purchase date.

As of December 31, 2020, the Company has paid a total of $26,912,138 (RMB 176 million). On September 1, 2018, the Company obtained the full management and operation rights of the senior hotel property and other assets (Property A) located at Shanghai Pudong New Area pursuant to the Operation Rights Transferring Agreement entered on August 31, 2018 with the seller. Although the Company has the rights to operate the senior living services of Asset A purchased under this agreement, and is currently generating revenues, the Company has not received a deed because the seller is involved in several lawsuits that have restrictions on assets transferring sentenced Shanghai local district courts. The Company has decided not to make any further payments until the asset is legally free of the restrictions. The Seller filed a lawsuit against Shanghai Hongfu for the contract default and no-payment on installments pursuant to the APA on May 1, 2020. See Note 8 for details about the lawsuit.

Further, the Company consummated the share purchase agreement to acquire the entity – Shanghai Qiaoyuan Information Technology Co., Ltd (“SH QYIT”) on November 2018 who holds the land use rights of Property B located on Shanghai Chongming. Asset B has been transferred to Properties and equipment, net during the year ended June 30, 2019. The two acquisitions were accounted for assets acquisitions.

On April 16, 2019 the Company entered into a Business Project Investment Agreement (the “Acquisition Agreement”) with Palau Asia Pacific International Aviation and Travel Agency (“Palau Asia-Pacific”) consisting of Palau Asia Pacific Air Management Limited, Global Tourism Management Limited and Global (Guangzhou) Tourism Service Co., Ltd. (collectively the “Project Company”) pursuant to which it will acquire 51% of the issued and outstanding capital stock of Project Company for $8,000,000, representing 49% of the Project ..The Company paid $3,000,000 deposit on April 2019 toward the Acquisition Agreement entered and decided to rescind the investment given the ongoing COVID-19 pandemic. The Company entered a rescission agreement (the “Rescission Agreement”) with Palau Asia-Pacific on September 8, 2020. According to the Rescission Agreement, the Company shall return the 51% stock ownership back to Palau Asia-Pacific, who shall deliver to us $285,514 and $733,200 Hong Kong Dollar back, totaling $94,605 cash, thus both parties shall release each other from further liabilities under the Acquisition Agreement. As of June 30, 2020, the Company recorded $2,619,881 impairment loss toward $3,000,000 deposit paid pursuant to the Rescission Agreement. $380,119 total residual amount was received by the end of June 30, 2020.

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Properties and Equipment, Net

6 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Properties and Equipment, Net

5. Properties and Equipment, net

	December 31,			June 30,
	2020			2020
Land use rights and land use rights improvements	$	5,983,363		$	5,531,446
Furniture and office equipment		7,002			6,130
Capitalized software		44,600			46,947
Minus: Accumulated depreciation and amortization		(371,618	)		(260,540	)
Properties and Equipment, net	$	5,663,347		$	5,323,983

For the six months ended December 31, 2020 and 2019, the depreciation and amortization expenses were $89,083 and $73,971, respectively, and $41,135 and $36,377 for the three months ended December 31, 2020 and 2019, respectively.

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Capital Stock

6 Months Ended

Dec. 31, 2020

Equity [Abstract]

Capital Stock

6. Capital Stock

As of December 31 and June 30, 2020, the total issued and outstanding capital stocks was 139,314,416 common shares with a par value of $0.001 per common share. No additional stock issued for three and six months ended December 31, 2020 and 2019.

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Segment Information

6 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

7. Segment Information

The Company operates in one industry segment, being the senior housing and retirement services through its wholly owned subsidiary in China. As of December 31 and June 30, 2020, the subsidiary had an amount of $15,653,705 and$14,461,546, respectively, in total assets, excluding inter-company balances, and it generated $508,362 and $612,684 for the six months ended December 31, 2020 and 2019, respectively, in revenue. There was no revenue generated from inter-company transactions.

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Commitments

6 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments

8. Commitments

The Company entered into the APA to acquire two properties in Shanghai totaling RMB 233,000,000. Payments of $26,912,138 (RMB 176,000,000) have been made through December 31, 2020. Due to the Seller of the assets has involved in several lawsuits that have restrictions on assets transferring (i.e. Property A) sentenced by Shanghai local district courts, the Company has decided not to make remaining payments until the asset is free of the restrictions on May 1, 2020.

On May 1, 2020, a lawsuit was filed against the Company and Shanghai Hongfu, by Shanghai Qiao Hong Real Estate, Ltd (i.e. the seller) and its subsidiaries (the “Plaintiff”) for breach of contract and non-payment of installments pursuant to the APA entered into between the Company and the Plaintiff on April 2, 2018. The Plaintiff is alleging damages of RMB 76,654,000 (approximately $11,721,154), including remaining RMB58 million installments, interest for delayed payment, default penalty, and etc. The lawsuit was filed in a District Court in Shanghai, China. The Company intends to vigorously defend this action. The court had initial opening on August 8, 2020, and the District Court in Shanghai ruled the first verdict on November 18, 2020, which was in favor of the Plaintiff’s claim - the Company should pay RMB11,140,000 penalty along with the lawsuit fee RMB374,415 and the remaining RMB57,000,000 installments to complete the APA . The Company appealed the verdict by the end of 2020 and the lawsuit is processing by the High People’s Court so far.

As of December 31, 2020, the remaining installments under APA was RMB57,000,000. And for the six months ended December 31, 2020, the Company has fully reserved $1,800,424 (approximate RMB11.5 million) amount for the penalty and lawsuit fee.

On October 26, 2020, the Company acquired 10% of the issued and outstanding shares (the “Shares”) of Lianyungang Yiheyuan Elderly Services Co., Ltd., a corporation registered in Jiangsu Province, PRC (“LYES”) pursuant to a Securities Purchase Agreement (the “Agreement”). In accordance with the Agreement, HQDA is purchasing the Shares in exchange for 234,845 shares of HQDA’s common stock valued at $1.00 per share, equivalent to 10% of the initial RMB16, 000,000 (approximately USD$2,348,450) registered capital of LYES. LYES operates a profitable elderly services business in its local hot spring resort. As of December 31, 2020, the transaction has not yet consummated.

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Subsequent Event

6 Months Ended

Dec. 31, 2020

Subsequent Events [Abstract]

Subsequent Event

9. Subsequent Event

None

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Basis of Significant Accounting policies (Policies)

6 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Company’s consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Shanghai Hongfu Health Management Ltd. All inter-company balances have been eliminated upon consolidation. The Company’s fiscal year end is June 30.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the amounts of assets and liabilities, the identification and disclosure of impaired assets and contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

Foreign Currency Translation

Foreign currency translation

The United States dollar (“USD”) is the Company’s reporting currency. The Company’s wholly owned subsidiary, Shanghai Hongfu is located in Shanghai, China. The net sales generated, and the related expenses directly incurred from the operations are denominated in local currency, Renminbi (“RMB”). The functional currency of the subsidiary is generally the same as the local currency.

Assets and liabilities measured in RMB are translated into USD at the prevailing exchange rates in effect as of the financial statement date and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive income (loss) in its consolidated balance sheets. Income and expense accounts are translated at the average exchange rate for the period. The Company has not, to the date of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Certain amounts in prior periods have been reclassified to conform with current period presentation.

Revenue Recognition

Revenue recognition

The Company adopted ASC 606 using the modified retrospective method on July 1, 2018. The Company evaluated its revenue streams to identify whether it would be subject to the provisions of ASC 606 and any differences in timing, measurement or presentation of revenue recognition. The Company’s main source of revenue is generated from operating senior living residences. The Company recognizes resident fees and services, other than move-in fees, daily as services are provided. Under ASC 606, the pattern and timing of recognition of income from assisted living facility is consistent with the prior accounting model.

Recently Issued Accounting Pronouncements Adopted

Recently issued accounting pronouncements adopted

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 (Topic 842) “Leases.” Topic 842 supersedes the lease recognition requirements in Accounting Standards Codification (“ASC”) Topic 840 “Leases.” Under Topic 842, lessees are required to recognize a right-of-use asset and a lease liability for substantially all leases. Leases will continue to be classified as either finance or operating. Topic 842 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2018 with early adoptions permitted. The Company adopted the new standard July 1, 2019. As part of the adoption of ASU 2016-02, the Company made an accounting policy election that will not recognizing leases with an initial term of 12 months or less on the consolidated balance sheet. The Company only has one month-to-month office lease since July 1, 2019. The adoption of this new accounting standard did not have an effect on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, “Intangibles and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which eliminates the requirement to calculate the implied fair value of goodwill, but rather requires an entity to record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. This amendment is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company adopted ASU No. 2017-04 on July 1, 2020 and the adoption did not have an impact on the Company’s interim financial position and results of operations.

Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Issued Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses”. The standard, including subsequently issued amendments (ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2019-11), requires a financial asset measured at amortized cost basis, such as accounts receivable and certain other financial assets, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of this guidance on its consolidated financial statements.

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Asset Acquisition (Tables)

6 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Summary of Fair Value of Asset

A summary of fair value of the asset as following:

Description	Location	Amount (1)		Amount
		(in dollars)		(in RMB)
Building and building improvements and land use rights	Shanghai Pudong New Area Zhangjiang Ziwei Rd No. 372 and No. 376.		30,778,879		193,870,000
Land use rights	Shanghai Chongming District San Shuang Gong Lu No. 4797.		6,212,294		39,130,000
			36,991,173		233,000,000

(1) The exchange rate of 0.1587 was used to translate the RMB amounts at purchase date.

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Properties and Equipment, Net (Tables)

6 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of Properties and Equipment, Net

	December 31,			June 30,
	2020			2020
Land use rights and land use rights improvements	$	5,983,363		$	5,531,446
Furniture and office equipment		7,002			6,130
Capitalized software		44,600			46,947
Minus: Accumulated depreciation and amortization		(371,618	)		(260,540	)
Properties and Equipment, net	$	5,663,347		$	5,323,983

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Nature and Continuance of Operations (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (209,413)	$ (118,657)	$ (555,221)	$ (268,759)
Working capital deficiency	$ (5,500,765)		$ (5,500,765)		$ (4,464,602)

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Related Party Transactions (Details Narrative)		1 Months Ended		3 Months Ended			6 Months Ended
	Sep. 01, 2019 CNY (¥)	Jul. 31, 2018 USD ($)	Jul. 31, 2018 CNY (¥)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 USD ($)	Jun. 30, 2020 USD ($)
Related Party Transaction [Line Items]
Receivable from related parties				$ 135,698			$ 135,698			$ 194,812
Payable to related parties				3,932,903			3,932,903			3,537,325
Capitalized development cost				146,710			146,710
Related party waived amount				43,150
Hotel [Member]
Related Party Transaction [Line Items]
Payment for management fee				38,228			76,455
ZHAWF Shanghai [Member]
Related Party Transaction [Line Items]
Payable to related parties				307,877			307,877			$ 102,268
RMB [Member] | Hotel [Member]
Related Party Transaction [Line Items]
Payment for management fee | ¥					¥ 250,000			¥ 500,000
RMB [Member] | ZHAWF Shanghai [Member]
Related Party Transaction [Line Items]
Service provided | ¥	¥ 1,000,000
Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Payable to related parties				33,880			33,880
Payment for management fee				$ 30,000		$ 30,000	$ 60,000		$ 55,892
Service Agreement [Member] | CEO [Member]
Related Party Transaction [Line Items]
Related party, transaction amount		$ 172,600
Service Agreement [Member] | CEO [Member] | RMB [Member]
Related Party Transaction [Line Items]
Related party, transaction amount | ¥			¥ 1,185,000

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Asset Acquisition (Details Narrative)				6 Months Ended	12 Months Ended
	Apr. 16, 2019 USD ($)	Apr. 02, 2018 USD ($)	Apr. 02, 2018 CNY (¥)	Dec. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2020 CNY (¥)	Apr. 30, 2019 USD ($)
Asset Purchase Agreement [Member]
Business Acquisition [Line Items]
Payment for assets acquired				$ 26,912,138
Asset Purchase Agreement [Member] | RMB [Member]
Business Acquisition [Line Items]
Exchange rate		0.1587	0.1587
Payment for assets acquired | ¥						¥ 176,000,000
Asset Purchase Agreement [Member] | Land, Buildings, Construction and Other Property Rights [Member]
Business Acquisition [Line Items]
Purchase price		$ 36,991,173
Exchange rate		0.1587	0.1587
Asset Purchase Agreement [Member] | Land, Buildings, Construction and Other Property Rights [Member] | RMB [Member]
Business Acquisition [Line Items]
Purchase price | ¥			¥ 2,330,000,000
Acquisition Agreement [Member] | Project Company [Member]
Business Acquisition [Line Items]
Business acquisition, description	On April 16, 2019 the Company entered into a Business Project Investment Agreement (the "Acquisition Agreement") with Palau Asia Pacific International Aviation and Travel Agency ("Palau Asia-Pacific") consisting of Palau Asia Pacific Air Management Limited, Global Tourism Management Limited and Global (Guangzhou) Tourism Service Co., Ltd. (collectively the "Project Company") pursuant to which it will acquire 51% of the issued and outstanding capital stock of Project Company for $8,000,000, representing 49% of the Project.
Business acquisition, percentage of voting interests acquired	51.00%
Payment to acquire business	$ 8,000,000
Business acquisition, deposits							$ 3,000,000
Rescission Agreement [Member]
Business Acquisition [Line Items]
Business acquisition, deposits					$ 3,000,000
Business acquisition, impairment loss					2,619,881
Business acquisition, residual amount					$ 380,119
Rescission Agreement [Member] | Palau Asia-Pacific [Member]
Business Acquisition [Line Items]
Business acquisition, shares redeemed amount				285,514
Rescission Agreement [Member] | Palau Asia-Pacific [Member] | Both Parties [Member]
Business Acquisition [Line Items]
Business acquisition, shares redeemed amount				94,605
Rescission Agreement [Member] | Palau Asia-Pacific [Member] | Hong Kong [Member]
Business Acquisition [Line Items]
Business acquisition, shares redeemed amount				$ 733,200

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Asset Acquisition - Summary of Fair Value of Asset (Details)				6 Months Ended
		Apr. 02, 2018 USD ($)	Apr. 02, 2018 CNY (¥)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Business Acquisition [Line Items]
Payments for purchase of assets				$ 359
Asset Purchase Agreement [Member]
Business Acquisition [Line Items]
Payments for purchase of assets	[1]	$ 36,991,173
Asset Purchase Agreement [Member] | RMB [Member]
Business Acquisition [Line Items]
Payments for purchase of assets | ¥			¥ 233,000,000
Asset Purchase Agreement [Member] | Building and Building Improvements and Land use Rights [Member]
Business Acquisition [Line Items]
Asset acquisition, description		Building and building improvements and land use rights	Building and building improvements and land use rights
Location		Shanghai Pudong New Area Zhangjiang Ziwei Rd No. 372 and No. 376.	Shanghai Pudong New Area Zhangjiang Ziwei Rd No. 372 and No. 376.
Payments for purchase of assets	[1]	$ 30,778,879
Asset Purchase Agreement [Member] | Building and Building Improvements and Land use Rights [Member] | RMB [Member]
Business Acquisition [Line Items]
Payments for purchase of assets | ¥			¥ 193,870,000
Asset Purchase Agreement [Member] | Land Use Rights [Member]
Business Acquisition [Line Items]
Asset acquisition, description		Land use rights	Land use rights
Location		Shanghai Chongming District San Shuang Gong Lu No. 4797.	Shanghai Chongming District San Shuang Gong Lu No. 4797.
Payments for purchase of assets	[1]	$ 6,212,294
Asset Purchase Agreement [Member] | Land Use Rights [Member] | RMB [Member]
Business Acquisition [Line Items]
Payments for purchase of assets | ¥			¥ 39,130,000

[1] The exchange rate of 0.1587 was used to translate the RMB amounts at purchase date.

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Asset Acquisition - Summary of Fair Value of Asset (Details) (Parenthetical)	Apr. 02, 2018
Asset Purchase Agreement [Member] | RMB [Member]
Exchange rate	0.1587

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Properties and Equipment, Net (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 41,134	$ 36,377	$ 89,083	$ 73,971

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Properties and Equipment, Net - Schedule of Properties and Equipment, Net (Details) - USD ($)	Dec. 31, 2020	Jun. 30, 2020
Property, Plant and Equipment [Line Items]
Minus: Accumulated depreciation and amortization	$ (371,618)	$ (260,540)
Properties and equipment, net	5,663,347	5,323,983
Land Use Rights and Land Use Rights Improvements [Member]
Property, Plant and Equipment [Line Items]
Properties and equipment	5,983,363	5,531,446
Furniture and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Properties and equipment	7,002	6,130
Capitalized Software [Member]
Property, Plant and Equipment [Line Items]
Properties and equipment	$ 44,600	$ 46,947

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Capital Stock (Details Narrative) - $ / shares	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2020
Equity [Abstract]
Common stock, shares issued	139,314,416		139,314,416		139,314,416
Common stock, shares outstanding	139,314,416		139,314,416		139,314,416
Common stock, par value	$ 0.001		$ 0.001		$ 0.001
Number of stock issued for common stock

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Segment Information (Details Narrative)	3 Months Ended		6 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2020 USD ($) Integer	Dec. 31, 2019 USD ($)	Jun. 30, 2020 USD ($)
Segment Reporting Information [Line Items]
Operating segments | Integer			1
Total assets	$ 26,434,991		$ 26,434,991		$ 25,353,800
Revenue	352,922	$ 440,508	508,362	$ 612,684
Inter-company Transactions [Member]
Segment Reporting Information [Line Items]
Revenue
Subsidiary [Member]
Segment Reporting Information [Line Items]
Total assets	$ 15,653,705		$ 15,653,705		$ 14,461,546

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Commitments (Details Narrative)											6 Months Ended
		Nov. 18, 2020 USD ($)	Nov. 18, 2020 CNY (¥)	Oct. 26, 2020 USD ($) $ / shares shares	Oct. 26, 2020 CNY (¥) shares	May 02, 2020 USD ($)	May 02, 2020 CNY (¥)	Apr. 02, 2018 USD ($)	Apr. 02, 2018 USD ($)	Apr. 02, 2018 CNY (¥)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 USD ($)
Payments to acquire properties purchased											$ 359
Reserved for penalty and lawsuit fee											1,800,424
Shanghai Qiao Hong Real Estate, Ltd [Member]
Plaintiff damages						$ 11,721,154
RMB [Member]
Loss contingency periodic payment amount | ¥												¥ 57,000,000
Reserved for penalty and lawsuit fee											11,500,000
RMB [Member] | Shanghai Qiao Hong Real Estate, Ltd [Member]
Plaintiff damages | ¥			¥ 11,140,000				¥ 76,654,000
Loss contingency periodic payment amount		$ 57,000,000						$ 58,000,000
Lawsuit fee | ¥			¥ 374,415
Asset Purchase Agreement [Member]
Payments to acquire properties purchased	[1]								$ 36,991,173
Asset Purchase Agreement [Member] | RMB [Member]
Payments to acquire properties purchased | ¥										¥ 233,000,000
Asset Purchase Agreement [Member] | Two Properties [Member] | Shanghai [Member]
Payments to acquire properties purchased											$ 26,912,138
Asset Purchase Agreement [Member] | Two Properties [Member] | Shanghai [Member] | RMB [Member]
Purchase price | ¥												233,000,000
Payments to acquire properties purchased | ¥												¥ 176,000,000
Securities Purchase Agreement [Member] | Lianyungang Yiheyuan Elderly Services Co., Ltd [Member]
Acquired percentage shares				10.00%
Shares issued during the period for acquisition | shares				234,845	234,845
Shared issued price per share | $ / shares				$ 1.00
Shares issued during the period for acquisition, value				$ 2,348,450
Securities Purchase Agreement [Member] | RMB [Member] | Lianyungang Yiheyuan Elderly Services Co., Ltd [Member]
Shares issued during the period for acquisition, value | ¥					¥ 16,000,000

[1] The exchange rate of 0.1587 was used to translate the RMB amounts at purchase date.