HQDA Elderly Life Network (HQDA) 10-Q 18 May 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2020	May 08, 2020
Document And Entity Information
Entity Registrant Name	HQDA ELDERLY LIFE NETWORK CORP.
Entity Central Index Key	0001304730
Document Type	10-Q
Document Period End Date	Mar. 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	Q3
Document Fiscal Year Focus	2020

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2020	Jun. 30, 2019
Current assets:
Cash	$ 27,482	$ 350,734
Other receivables	132,648	406,539
Receivable - related parties	163,539	168,958
Total current assets	323,669	926,231
Deposits	22,638,374	21,042,068
Properties and equipment, net	5,300,065	5,591,839
Capitalized software	146,710	146,710
Total assets	28,408,818	27,706,848
Current liabilities:
Accounts payable and accrued liabilities	109,140	131,163
Payable to related parties	3,770,498	2,207,742
Total liabilities	3,879,638	2,338,905
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; issued and outstanding, 139,314,416 shares	139,314	139,314
Additional paid-in capital	29,719,865	29,719,865
Accumulated other comprehensive loss	(1,469,143)	(1,138,433)
Accumulated deficit	(3,860,856)	(3,352,803)
Total stockholders' equity	24,529,180	25,367,943
Total liabilities and stockholders' equity	$ 28,408,818	$ 27,706,848

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Jun. 30, 2019
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

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (loss) (Unaudited) - USD ($)	3 Months Ended			9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019		Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenue	$ 38,432	$ 80,090	[1]	$ 376,283	$ 302,554	[1]
Operating costs:
General and administrative expenses	248,482	639,252	[1]	771,336	1,387,443	[1]
Depreciation and amortization	38,276	8,495		112,247	72,008
Total operating cost	286,758	647,747	[1]	883,583	1,459,451	[1]
Operating loss	(248,326)	(567,539)	[1]	(507,300)	(1,156,897)	[1]
Other expense, net
Interest Income (expense), net	842		[1]	(754)	77,362	[1]
Foreign currency translation loss		(3,504)	[1]		(542,565)	[1]
Net loss	(247,483)	(571,043)	[1]	(508,053)	(1,622,100)	[1]
Foreign currency translation, net tax	(141,142)	(344,891)	[1]	(330,710)	(161,350)	[1]
Comprehensive loss	$ (388,625)	$ (915,934)	[1]	$ (838,763)	$ (1,783,450)	[1]
Earnings per share
Basic and diluted income (loss) per share	$ (0.002)	$ (0.004)	[1]	$ (0.004)	$ (0.012)	[1]
Weighted average common shares outstanding	139,314,416	139,314,416	[1]	139,314,416	139,314,416	[1]
[1]	For discussion on the restatements, see consolidated financial statements Note 2

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flow from operating activities
Net loss	$ (508,053)	$ (1,622,100)	[1]
Adjustments to reconcile loss to net cash used in operating activities:
Depreciation	112,247	72,008
Changes in operating assets and liabilities?
Increase in other receivable	265,614	185,045
(Decrease) in related party receivable	(8,591)	642
(Decrease) Increase in accounts payable and accrued liabilities	(20,746)	88,903
Increase (Decrease) in related party payable	1,664,259	(24,330)
Net cash provided by (used in) operating activities	1,504,731	(1,299,832)
Cash flow from investing activities
Deposits paid for assets purchase	(1,859,407)	(5,560,651)
Purchase of equipment		(5,814,507)
Loans to related parties		(2,097,024)
Net cash used in investing activities	(1,859,407)	(13,472,182)
Cash flow from financing activities
Issuance of common shares		5,593,822
Net cash provided by financing activities		5,593,822
Effect of exchange rate changes	31,424	(161,350)
Decrease in cash	(323,252)	(9,339,542)
Cash, beginning	350,734	9,701,075
Cash, ending	27,482	361,533
Supplemental Disclosures:
Cash paid for interest
Cash paid for income taxes
[1]	For discussion on the restatements, see consolidated financial statements Note 2

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Capital Stock [Member]	Additional Paid-in Capital [Member]	Share Subscriptions Received in Advanced (Receivable) [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balance at Jun. 30, 2018	$ 79,925	$ 9,264,384	$ 14,921,048	$ (1,529,469)		$ 22,735,888
Balance, shares at Jun. 30, 2018	79,925,000
Net loss				(1,622,100)		(1,622,100)	[1]
Common shares issued	$ 59,389	20,455,481	(14,921,048)			5,593,822
Common shares issued, shares	59,389,416
Foreign currency translation, net tax					(161,350)	(161,350)	[1]
Balance at Mar. 31, 2019	$ 139,314	29,719,865		(3,151,569)	(161,350)	26,546,260
Balance, shares at Mar. 31, 2019	139,314,416
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				(508,053)		$ (508,053)
Common shares issued, shares
Foreign currency translation, net tax					(330,710)	$ (330,710)
Balance at Mar. 31, 2020	$ 139,314	$ 29,719,865		$ (3,860,856)	$ (1,469,143)	$ 24,529,180
Balance, shares at Mar. 31, 2020	139,314,416
[1]	For discussion on the restatements, see consolidated financial statements Note 2

Nature and Continuance of Opera

Nature and Continuance of Operations	9 Months Ended
	Mar. 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 (“Shanghai Hongfu”), 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, 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 March 31, 2020 and for nine months then 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 $508,053 and $1,622,100 for the nine months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, it had a negative working capital deficiency of $3,555,969 while it had a negative working capital deficiency of $1,412,674 at June 30, 2019. Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. Management believes that the Company’s capital resources will not be adequate to continue operating and maintaining its business strategy for the next 12 months. If the Company is unable to raise additional capital in the near future, management expects that the Company will need to curtail operations, seek additional capital on less favorable terms and/or pursue other remedial measures. These consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. 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. All inter-company balances have been eliminated upon consolidation. Our unaudited interim Consolidated Financial Statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the Condensed Consolidated Financial Statements. The operating results for the nine months ended March 30, 2020 are not necessarily indicative of the results expected for the full year ending June 30, 2020. Foreign currency translation The United States dollar (“USD”) is the Company’s reporting currency. Shanghai Hongfu is located in 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. Recently issued accounting pronouncements 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. As of September 30, 2019, the Company only has one month-to-month office lease with monthly rent of $1,020. The adoption of this new accounting standard did not have an effect on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. 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 believes the adoption of ASU No. 2016-13 will not have a material impact on its financial position and results of operations. 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. Early adoption is permitted. The Company believes the adoption of ASU No. 2016-13 will not have a material impact on its financial position and results of operations.

Restatement

Restatement	9 Months Ended
	Mar. 31, 2020
Accounting Changes and Error Corrections [Abstract]
Restatement	2. Restatement The Company restated certain balance sheet items as of June 30, 2018 on Form 10-K filed on October 25, 2019. The restatement resulted in balance sheet item adjustments as of March 31, 2019, further affecting a few income statement line items and statement of cash flows for three-month and nine-month periods ended March 31, 2019. In additional, the Company also recorded assets A and B under the APA agreement in the amount of $34,718,601 as of March 31, 2019 under properties and equipment during the nine months period ended Mar 31, 2019. However, the payments made toward Asset A should have been classified as deposits and not properties and equipment. The Company determined that it would appropriate to correct those errors. Restated Consolidated Statement (Adjusted Line Items) as follows: Three months ended March 31 As previously reported As restated Change General and administrative expenses $ 850,919 $ 724,970 $ 125,949 Depreciation and amortization 325,084 8,495 316,589 Foreign currency transaction loss 529,893 (3,504 ) 533,397 Net income (loss) $ (566,020 ) $ (571,043 ) $ (294,153 ) Foreign currency translation, net tax (639,044 ) (344,891 ) (294,153 ) Comprehensive income (loss) $ (1,205,064 ) (915,934 ) $ (289,130 ) EPS effect due to restatement: Weighted average number of common shares 139,314,416 EPS amount decreased $ (0.002 ) Nine months ended March 31 As previously reported As restated Change Revenue 302,554 302,554 — Depreciation and amortization $ 436,057 $ 72,008 $ 364,049 Foreign currency transaction loss 218,829 (542,565 ) 761,394 Net income (loss) $ (1,181,837 ) $ (1,622,100 ) $ 440,263 Foreign currency translation, net tax (639,044 ) (161,350 ) (477,694 ) Comprehensive income (loss) $ (1,820,881 ) $ (1,783,405 ) $ (37,476 ) EPS effect due to restatement: Weighted average number of common shares 109,619,708 EPS amount increased $ (0.000 )

Related Party Transactions

Related Party Transactions	9 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	3. Related party Transactions Receivable and Payable Receivable from related parties amounted $163,539 and $168,958 at March 31, 2020 and June 30, 2019, respectively. Payable to related parties amounted to $3,770,498 and $2,207,742 at March 31, 2020 and June 30, 2019, respectively. The related party amounts are mainly are results of normal operations dealing with companies that owned by the Company’s CEO. Related party transactions On July 2018, the Company entered a $172,600 (RMB1,185,000) service agreement with one party that is under the common control of the Company’s CEO to develop the Company’s website and a BBC shopping App. As of March 31, 2020, the project has not yet finished, the Company capitalized the development cost of the website and App in the amount of $146,710 based on the completion percentage method. The entire project is expecting to finish in the middle of 2020. Other During the six months ended March 31, 2020 and 2019, the Company paid management fees of $101,772 and $91,980, respectively, to the Company’s Chief Financial Officer.

Asset Acquisition

Asset Acquisition	9 Months Ended
	Mar. 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: As of March 31, 2020, the Company has paid total of $24,812,846 (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 resulted in rulings to restrict transferring it by Shanghai local district courts. Therefore, The Company has decided not to make any further payments until the asset is free of the restrictions. On November 29, 2019, the Company entered a Letter of Understanding regarding the APA with the seller: 1) the Company shall pay RMB4,000,000 immediately upon signing the agreement, and 2) shall arrange the payments of the remaining balance incorporated with the seller’s schedules of external debt settlements in order to lift the courts’ restrictions. The Company made another $140,982 (RMB1 million) payment on January 2020. As of March 31, 2020, $19,296,217 (RMB136.87 million)payments made for Asset A was recorded as deposit. Further, the Company consummated the share purchase agreement to acquire the entity – Shanghai Qiaoyuan Information Technology Co., Ltd (“SH QYIT”) in 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 Properties and equipment, net 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 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 Company’s dividend distribution, voting rights and liquidation interest of assets. The Project Company will remain the main operator of the existing business. The $8,000,000 will be paid as follows: $3,000,000 on or before April 27, 2019; $2,000,000 on or before June 30, 2019 and $3,000,000 on or before September 30, 2019. As of March 31, 2020, the Company made a $3,000,000 payment. However, the acquisition was subject to continuing due diligence, negotiation and customary closing conditions, including completion of an audit. The process of due diligence and audit are still on going. Therefore, additional payments have been postponed until a satisfactory audit can be delivered and other due diligence has been completed. We cannot be assured that the transaction will be completed as intended as of March 31, 2020.

Properties and Equipment, Net

Properties and Equipment, Net	9 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Properties and Equipment, Net	5. Properties and Equipment, net March 31, June 30, 2020 2019 Land use rights and land use rights improvements $ 5,516,629 $ 5,699,429 Furniture and office equipment 6,113 10,039 Accumulated depreciation (222,677 ) (117,629 ) $ 5,300,065 $ 5,591,839 Capitalized software $ 146,710 $ 146,710 For the three months ended March 31, 2020 and 2019, the Company recorded $38,276 and $8,495, respectively, and $112,247 and $72,008 for the nine months ended March 31, 2020 and 2019.

Capital Stock

Capital Stock	9 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Capital Stock	6. Capital Stock As of March 31, 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 months and nine months ended March 31, 2020.

Segment Information

Segment Information	9 Months Ended
	Mar. 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 Shanghai Hongfu in China. As of March 31, 2020, the subsidiary had an amount of $14,552,394 in total assets, excluding inter-company balances, and it generated revenue in the amounts of $38,432 and $376,283, and $80,090 and $302,554 for the three and nine months ended March 31, 2020 and 2019, respectively. There was no revenue generated from inter-company transactions.

Commitments

Commitments	9 Months Ended
	Mar. 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 $24,812,846 (RMB 176,000,000) have been made through March 31, 2020. Due to the seller of the asset is involved in several lawsuits that have resulted in rulings to restrict transfer of certain assets under this purchase agreement by Shanghai local district courts, the Company has decided not to make any further payments until the asset is free of the restrictions. The Company has no knowledge of when the restrictions will be lifted by the courts. On February 19, 2020, in response to a request by Shanghai Qiao Hong Real Estate, Ltd and its subsidiaries (the “Plaintiff”) in the lawsuit filed on January 16, 2020 against the Company for breach of contract (the “Lawsuit”) in a District Court in Shanghai, China (the “Court”), the Court dismissed the Lawsuit against the Company.

Subsequent Event

Subsequent Event	9 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Event	9. Subsequent Event On May 1, 2020, the Plaintiff filed another lawsuit against the Company and Shanghai Hongfu for breach of contract and non-payment of an installment pursuant to an Asset Purchase Agreement 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). The lawsuit was filed in a District Court in Shanghai, China. The Company intends to vigorously defend this action. The lawsuit is in its preliminary stages and as of this reporting date there has been no discovery initiated.

Nature and Continuance of Ope_2

Nature and Continuance of Operations (Policies)	9 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [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. All inter-company balances have been eliminated upon consolidation. Our unaudited interim Consolidated Financial Statements include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the Condensed Consolidated Financial Statements. The operating results for the nine months ended March 30, 2020 are not necessarily indicative of the results expected for the full year ending June 30, 2020.
Foreign Currency Translation	Foreign currency translation The United States dollar (“USD”) is the Company’s reporting currency. Shanghai Hongfu is located in 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.
Recently Issued Accounting Pronouncements	Recently issued accounting pronouncements 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. As of September 30, 2019, the Company only has one month-to-month office lease with monthly rent of $1,020. The adoption of this new accounting standard did not have an effect on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. 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 believes the adoption of ASU No. 2016-13 will not have a material impact on its financial position and results of operations. 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. Early adoption is permitted. The Company believes the adoption of ASU No. 2016-13 will not have a material impact on its financial position and results of operations.

Restatement (Tables)

Restatement (Tables)	9 Months Ended
	Mar. 31, 2020
Accounting Changes and Error Corrections [Abstract]
Schedule of Restated Consolidated Statement of Operations	Restated Consolidated Statement (Adjusted Line Items) as follows: Three months ended March 31 As previously reported As restated Change General and administrative expenses $ 850,919 $ 724,970 $ 125,949 Depreciation and amortization 325,084 8,495 316,589 Foreign currency transaction loss 529,893 (3,504 ) 533,397 Net income (loss) $ (566,020 ) $ (571,043 ) $ (294,153 ) Foreign currency translation, net tax (639,044 ) (344,891 ) (294,153 ) Comprehensive income (loss) $ (1,205,064 ) (915,934 ) $ (289,130 ) EPS effect due to restatement: Weighted average number of common shares 139,314,416 EPS amount decreased $ (0.002 ) Nine months ended March 31 As previously reported As restated Change Revenue 302,554 302,554 — Depreciation and amortization $ 436,057 $ 72,008 $ 364,049 Foreign currency transaction loss 218,829 (542,565 ) 761,394 Net income (loss) $ (1,181,837 ) $ (1,622,100 ) $ 440,263 Foreign currency translation, net tax (639,044 ) (161,350 ) (477,694 ) Comprehensive income (loss) $ (1,820,881 ) $ (1,783,405 ) $ (37,476 ) EPS effect due to restatement: Weighted average number of common shares 109,619,708 EPS amount increased $ (0.000 )

Asset Acquisition (Tables)

Asset Acquisition (Tables)	9 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
Summary of Fair Value of Asset	A summary of fair value of the asset as following:

Properties and Equipment, Net (

Properties and Equipment, Net (Tables)	9 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Schedule of Properties and Equipment, Net	March 31, June 30, 2020 2019 Land use rights and land use rights improvements $ 5,516,629 $ 5,699,429 Furniture and office equipment 6,113 10,039 Accumulated depreciation (222,677 ) (117,629 ) $ 5,300,065 $ 5,591,839 Capitalized software $ 146,710 $ 146,710

Nature and Continuance of Ope_3

Nature and Continuance of Operations (Details Narrative) - USD ($)	3 Months Ended			9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	[1]	Mar. 31, 2020	Mar. 31, 2019	[1]	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (247,483)	$ (571,043)		$ (508,053)	$ (1,622,100)
Working capital deficiency	$ (3,555,969)			$ (3,555,969)			$ (1,412,674)
[1]	For discussion on the restatements, see consolidated financial statements Note 2

Restatement (Details Narrative)

Restatement (Details Narrative) - USD ($)	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Assets	$ 28,408,818	$ 27,706,848
APA Agreement [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Assets			$ 34,718,601

Restatement - Schedule of Resta

Restatement - Schedule of Restated Consolidated Statement of Operations - (Details) - USD ($)	3 Months Ended			9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019		Mar. 31, 2020	Mar. 31, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
General and administrative expenses	$ 248,482	$ 639,252	[1]	$ 771,336	$ 1,387,443	[1]
Revenue	38,432	80,090	[1]	376,283	302,554	[1]
Foreign currency transaction loss		(3,504)	[1]		(542,565)	[1]
Net income (loss)	(247,483)	(571,043)	[1]	(508,053)	(1,622,100)	[1]
Foreign currency translation, net tax	(141,142)	(344,891)	[1]	(330,710)	(161,350)	[1]
Comprehensive income (loss)	$ (388,625)	$ (915,934)	[1]	$ (838,763)	$ (1,783,450)	[1]
Weighted average number of common shares	139,314,416	139,314,416	[1]	139,314,416	139,314,416	[1]
EPS amount decreased/increased	$ (0.002)	$ (0.004)	[1]	$ (0.004)	$ (0.012)	[1]
As Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
General and administrative expenses		$ 850,919
Revenue					$ 302,554
Depreciation and amortization		325,084			436,057
Foreign currency transaction loss		529,893			218,829
Net income (loss)		(566,020)			(1,181,837)
Foreign currency translation, net tax		(639,044)			(639,044)
Comprehensive income (loss)		(1,205,064)			(1,820,881)
As Restated [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
General and administrative expenses		724,970
Revenue					302,554
Depreciation and amortization		8,495			72,008
Foreign currency transaction loss		(3,504)			(542,565)
Net income (loss)		(571,043)			(1,622,100)
Foreign currency translation, net tax		(344,891)			(161,350)
Comprehensive income (loss)		(915,934)			(1,783,405)
Change [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
General and administrative expenses		125,949
Revenue
Depreciation and amortization		316,589			364,049
Foreign currency transaction loss		533,397			761,394
Net income (loss)		(294,153)			440,263
Foreign currency translation, net tax		(294,153)			(477,694)
Comprehensive income (loss)		$ (289,130)			$ (37,476)
Weighted average number of common shares		139,314,416			109,619,708
EPS amount decreased/increased		$ (0.002)			$ 0
[1]	For discussion on the restatements, see consolidated financial statements Note 2

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	Jul. 31, 2018USD ($)	Jul. 31, 2018CNY (¥)	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Jun. 30, 2019USD ($)
Related Party Transaction [Line Items]
Receivable from related parties			$ 163,539		$ 168,958
Payable to related parties			3,770,498		2,207,742
Capitalized development cost			146,710		$ 146,710
Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Payment for management fee			$ 101,772	$ 91,980
Service Agreement [Member] | CEO [Member]
Related Party Transaction [Line Items]
Related party, transaction amount	$ 172,600
Service Agreement [Member] | RMB [Member] | CEO [Member]
Related Party Transaction [Line Items]
Related party, transaction amount | ¥		¥ 1,185,000

Asset Acquisition (Details Narr

Asset Acquisition (Details Narrative)

Jan. 31, 2020USD ($)

Jan. 31, 2020CNY (¥)

Nov. 29, 2019CNY (¥)

Jun. 30, 2019USD ($)

Apr. 27, 2019USD ($)

Apr. 16, 2019USD ($)

Apr. 02, 2018USD ($)

Apr. 02, 2018CNY (¥)

Mar. 31, 2020USD ($)

Mar. 31, 2020CNY (¥)

Mar. 31, 2020CNY (¥)

Mar. 31, 2019USD ($)

Business Acquisition [Line Items]

Payments to acquire business

$ 140,982

RMB [Member]

Business Acquisition [Line Items]

Payments to acquire business | ¥

¥ 1,000,000

Assets A [Member]

Business Acquisition [Line Items]

Additional payments

$ 19,296,217

Assets A [Member] | RMB [Member]

Business Acquisition [Line Items]

Additional payments | ¥

¥ 136,870,000

Assets B [Member]

Business Acquisition [Line Items]

Depreciation of assets

$ 72,008

Asset Purchase Agreement [Member]

Business Acquisition [Line Items]

Payment for assets acquired

24,812,846

Asset Purchase Agreement [Member] | RMB [Member]

Business Acquisition [Line Items]

Payment for assets acquired | ¥

¥ 176,000,000

Payments to acquire business | ¥

¥ 4,000,000

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]

Business Acquisition [Line Items]

Payment for assets acquired

$ 3,000,000

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 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 Company's dividend distribution, voting rights and liquidation interest of assets.

Business acquisition, percentage of voting interests acquired

51.00%

Business acquisition, equity interest issued or issuable value assigned

$ 8,000,000

Business acquisition, payment for interest acquired

$ 2,000,000

$ 3,000,000

Asset Acquisition - Summary of

Asset Acquisition - Summary of Fair Value of Asset (Details)		Apr. 02, 2018USD ($)	Apr. 02, 2018CNY (¥)	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)
Business Acquisition [Line Items]
Payments for purchase of assets					$ 5,814,507
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] | Asset A [Member]
Business Acquisition [Line Items]
Asset acquisition, description		Builing and building imrpovements and land use rights	Builing and building imrpovements 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] | Asset A [Member] | RMB [Member]
Business Acquisition [Line Items]
Payments for purchase of assets | ¥			¥ 193,870,000
Asset Purchase Agreement [Member] | Asset B [Member]
Business Acquisition [Line Items]
Asset acquisition, description		Land use rignts	Land use rignts
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] | Asset B [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.

Properties and Equipment, Net_2

Properties and Equipment, Net (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 38,276	$ 8,495	$ 112,247	$ 72,008

Properties and Equipment, Net -

Properties and Equipment, Net - Schedule of Properties and Equipment, Net (Details) - USD ($)	Mar. 31, 2020	Jun. 30, 2019
Property, Plant and Equipment [Line Items]
Accumulated depreciation	$ (222,677)	$ (117,629)
Properties and equipment, net	5,300,065	5,591,839
Capitalized software	146,710	146,710
Land Use Rights and Land Use Rights Improvements [Member]
Property, Plant and Equipment [Line Items]
Properties and equipment	5,516,629	5,699,429
Furniture and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Properties and equipment	$ 6,113	$ 10,039

Capital Stock (Details Narrativ

Capital Stock (Details Narrative) - $ / shares	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Mar. 31, 2020	Jun. 30, 2019
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
Share issued during period

Segment Information (Details Na

Segment Information (Details Narrative) - USD ($)	3 Months Ended			9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	[1]	Mar. 31, 2020	Mar. 31, 2019	[1]	Jun. 30, 2019
Segment Reporting Information [Line Items]
Total assets	$ 28,408,818			$ 28,408,818			$ 27,706,848
Revenue	38,432	$ 80,090		376,283	$ 302,554
Inter-company Transactions [Member]
Segment Reporting Information [Line Items]
Revenue
Subsidiary [Member]
Segment Reporting Information [Line Items]
Total assets	$ 14,552,394			$ 14,552,394
[1]	For discussion on the restatements, see consolidated financial statements Note 2

Commitments (Details Narrative)

Commitments (Details Narrative)		Apr. 02, 2018USD ($)	Apr. 02, 2018CNY (¥)	Mar. 31, 2020USD ($)	Mar. 31, 2020CNY (¥)	Mar. 31, 2019USD ($)
Payments to acquire properties purchased | $						$ 5,814,507
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 | $				$ 24,812,846
Asset Purchase Agreement [Member] | Two Properties [Member] | Shanghai [Member] | RMB [Member]
Purchase price | ¥					¥ 233,000,000
Payments to acquire properties purchased | ¥					¥ 176,000,000
[1]	The exchange rate of 0.1587 was used to translate the RMB amounts at purchase date.

Subsequent Event (Details Narra

Subsequent Event (Details Narrative) - May 01, 2020 - Asset Purchase Agreement [Member] - Subsequent Event [Member]	USD ($)	CNY (¥)
Plaintiff alleging damages sought value | $	$ 10,842,150
RMB [Member]
Plaintiff alleging damages sought value | ¥		¥ 76,654,000