10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended December 31, 2015

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

For the transition period from _________ to _________

Commission file number: 333-150952

China Media Inc.

(Exact name of registrant as specified in its charter)

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

Room 10128,  No. 269-5-1 Taibai South Road, Yanta District, Xi'an City, Shaan'xi Province, China	710068
(Address of principal executive offices)	(Zip Code)

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

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-K (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [X] Yes    [ ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

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

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

[ ] Yes   [X] No

As of February 15, 2016, the registrant had 39,750,000 shares of common stock outstanding.

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Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

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

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Item 4. Controls and Procedures

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

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

Item 3. Defaults Upon Senior Securities

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

Item 5. Other Information

Item 6. Exhibits

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

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

CHINA MEDIA INC.

DECEMBER 31, 2015

(UNAUDITED)

Financial Statement Index

Consolidated Balance Sheets as of  December 31, 2015 (Unaudited) and June 30, 2015 

Consolidated Statements of Operations for the three and six months ended December 31, 2015 and 2014 (Unaudited)

Consolidated Statements of Cash Flows for the three and six months ended December 31, 2015 and 2014 (Unaudited)

Notes to the Consolidated Financial Statements (Unaudited)

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CHINA MEDIA INC.
CONSOLIDATED BALANCE SHEETS
					DECEMBER 31, 2015	JUNE 30, 2015
	Assets				Unaudited
		Current assets
			Cash and cash equivalents		$                    77,280	$                75,612
			Accounts receivable, net of allowance of $37,561 and $39,773 at December 31, 2015 and June 30, 2015, respectively		1,238,695	1,320,457
				Notes receivable	4,378,033	4,667,012
			Prepaid and other receivable		218,203	227,683
		Total current assets			5,912,211	6,290,764
			Fixed assets, net		19,403	21,779
			Film costs		770,333	2,463,540
			Prepaid and other assets		770,333	-
		Total assets			$            7,472,280	$       8,776,083
	Liabilities and Stockholders' Equity
		Current liabilities
			Accounts payable		$                       9,267	$                  9,682
			Accrued liabilities and other payable		297,209	290,202
			Due to related parties		235,616	1,012,703
		Total current liabilities			542,092	1,312,587
		Total liabilities			542,092	1,312,587
	Stockholders' equity
			Common stock, $0.00001 par value, 180,000,000 shares authorized; 39,750,000 shares issued and outstanding at December 31, 2015 and June 30, 2015, respectively		398	398
			Additional paid-in capital		11,252,287	11,241,231
			Accumulated other comprehensive income		738,837	1,199,250
			Accumulated deficit		(5,061,334)	(4,977,383)
		Total stockholders' equity			6,930,188	7,463,496
		Total liabilities and stockholders' equity			$               7,472,280	$           8,776,083

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

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CHINA MEDIA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
	FOR THE SIX MONTHS ENDED DECEMBER 31,		FOR THE THREE MONTHS ENDED DECEMBER 31,
	2015	2014		2015	2014
Revenues	$                -	$                -		$                -	$                -
Cost of revenues	-	-		-	-
Gross profit	-	-		-	-
Selling, general and administrative	133,553	143,180		97,015	100,871
Depreciation and amortization expense	1,056	10,232		573	5,125
Total operating expenses	134,609	153,412		97,588	105,996
Other income (expense)
Interest income	61,714	127,393		(585)	64,210
Interest expense	(11,056)	(32,874)		(11,056)	(17,009)
Net loss before income taxes	(83,951)	(58,893)		(109,229)	(58,795)
Income taxes	-	-		-	-
Net loss	$   (83,951)	$   (58,893)		$  (109,229)	$  (58,795)
Comprehensive income (loss)
Net loss	(83,951)	(58,893)		(109,229)	(58,795)
Foreign currency translation adjustment	(460,413)	19,891		(148,612)	17,738
Comprehensive loss	$   (544,364)	$    (39,002)		$ (257,841)	$    (41,057)
Net loss per common share, basic and diluted	$       (0.00)	$       (0.00)		$ (0.00)	$       (0.00)
Weighted average number of shares outstanding - basic and diluted	39,750,000	39,750,000		39,750,000	39,750,000
The accompanying notes are an integral part of these unaudited consolidated financial statements.

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CHINA MEDIA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
				FOR SIX MONTHS ENDED DECEMBER 31,
				2015	2014
CASH FLOWS OPERATING ACTIVITIES
	Net loss			$                   (83,951)		$               (58,893)
	Adjustments to reconcile net loss to net cash provided by (used in)
	operating activities:
		Imputed interest		11,056		32,874
		Amortization expense		-		6,508
		Depreciation expense		1,056		3,725
	Changes in operating assets and liabilities:
			Prepaid, other receivable and other assets	(795,768)	(127,064)
			Accrued liabilities and other payables	25,647	(111,064)
			Net change in film costs	1,598,772	(1,624,009)
Net cash provided by (used in) operating activities				$                    756,812		$            (1,877,923)
CASH FLOW INVESTING ACTIVITIES
			Loans made to others	-	(487,203)
			Collection of notes receivable	-	1,786,410
Net cash provided by investing activities				-		1,299,207
CASH FLOW FINANCING ACTIVITIES
			Proceeds from related parities	57,456	71,874
			Repayments to related parities	(799,386)	-
Net cash provided by (used in) financing activities				(741,930)		71,874
Effect of exchange rate changes on cash				(13,214)		471
NET CHANGE IN CASH AND CASH EQUIVALENTS				1,668		(506,371)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD				75,612		633,246
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD				$          77,280		$            126,875
SUPPLEMENTAL INFORMATION:
	Interest paid			$                  -		$                         -
	Income taxes paid			$                  -		$      106,906

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

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CHINA MEDIA INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

December 31, 2015

NOTE 1.Description of Business

China Media Inc. (the “Company”, “China Media”) was incorporated in the State of Nevada.

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

Xi’An TV was incorporated in Xi’An, Shaan’Xi Province, People’s Republic of China (“PRC”) and is in the business of producing and developing television programming for the Chinese market.

NOTE 2. Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

The accompanying unaudited interim consolidated financial statements of China Media, Inc. (“We” or the “Company”), have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual financial statements for the year ended June 30, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended June 30, 2015 included in this document have been omitted.

Use of Estimates

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

NOTE 3. Related Party Transactions

From time to time, the Company borrowed loans from Dean, Li, the President and Chief Executive Officer of the Company. At June 30, 2015, Dean Li had advanced $1,012,703 to the Company, the Company repaid RMB 5 million (approximately $799,386) in July 2015 and received RMB 363,171 (approximately $57,456) in December 2015. As of December 31, 2015, the Company owed Dean Li $235,616. The loans borrowed from Mr. Dean Li are non-secured, free of interest with no specified maturity date. The imputed interests are assessed as an expense to the business operation and an addition to the paid-in-capital and calculated based on annual interest rate in the range of 5.94-6.56% with reference to one-year loan.

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On June 16, 2014, the Company and Hangzhou Yanse Advertising Production Company (“Hangzhou Yanse”) entered into an agreement in production and distribution of the film “Dan Ta”. In July 2015, the cooperation between the Company and Hangzhou Yanse was terminated. Hangzhou Yanse refunded RMB 10 million (approximately $1,643,466) to the Company for part of its investments on July 30, 2015. The remaining investment of RMB 5 million (approximately $791,402) was subsequently made to Mr. Dean Li on behalf of the Company and received by the Company in November 2015.

NOTE 4. Film Costs

Film costs consist of the following:

	December 31, 2015		June 30, 2015
Completed and not released:
In development - Film	$	770,333	$	2,463,540
Film costs	$	770,333	$	2,463,540

The decrease of film costs is primarily due to the termination of film “DanTa” that was discussed in Note 3.

In July 2015, the Company entered into an agreement to invest RMB 5 million (approximately $799,386 at the time of investment) in a film that is produced by Beijing Huaxia Star Media Co., Ltd. and the payment was made in August 2015.

NOTE 5. Prepaid and Other Assets

In November 2015, the Company entered into an agreement with Xi’an Lianying Network Culture Media Co., Ltd. to invest RMB 5 million (approximately $791,027 at the time of investment) in the advertising, promotion and publicizing of a new film that is under production. The prepayment was made in November 2015 and is non-refundable pursuant to the agreement.

NOTE 6. Notes Receivable

On March 20, 2013, the Company lent RMB 946,500 (approximately $155,000) in the form of an interest free loan to China Fengde Movie and TV Copyright Agency (“Zhongshi Fengde”), one of the Company’s business partners. The Company collected RMB 530,000 (approximately $86,305) as of June 30, 2014. No repayment was collected during the year ended June 30, 2015 and six months ended December 31, 2015. The outstanding balance was RMB 416,500 (approximately $64,168) as of December 31, 2015.

On June 13, 2014, the Company lent RMB 18M (approximately $2,931,119) to Shaan’Xi Hushi Culture Communication Company (SHCC), a company owned by a business friend of Dean Li, the President and Chief Executive Officer of the Company. Based on the agreement, the Company will waive interest on the loan if SHCC repays the loan within 30 days; the Company will charge interest rate at 200% of the prevailing PRC prime rate if SHCC repays the loan after 30 days. In July 2014, the Company received repayment of RMB 11M (approximately $1,786,410) and SHCC orally promised to pay off the remaining balance no later than December 31, 2015. On January 8, 2015, the Company received interest of RMB 455,000 (approximately $74,165) on the loan. The outstanding balance was RMB 7M (approximately $1,078,466) as of December 31, 2015.

On July 1, 2014, the Company lent an additional RMB 3M (approximately $487,203) to SHCC with three months term. Based on the agreement, the Company will waive interest on the loan if SHCC repays the loan within 30 days; the Company will charge interest rate at four times of the current bank loan rate if SHCC repays the loan after 30 days. No collection has been received as of the filing date and SHCC orally promised to pay off the loan before December 31, 2015. On January 19, 2015, the Company received interest of RMB 360,000 (approximately $58,694) on the loan. The outstanding balance was RMB 3M (approximately $462,200) as of December 31, 2015.

On November 30, 2012, the Company entered into an agreement with Zhongshi Fengde to co-purchase copyrights of two TV series with the Company’s total investment is RMB 18 million (approximately $2.86 million at the time

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of investment). On January 28, 2015, both parties agreed to transfer the Company’s payment in these two TV series to a short-term loan to Zhongshi Fengde as the copyrights purchase was not successfully completed. As a result, film costs of approximately $2.77 million were reclassified to notes receivable as of December 31, 2015. No collection has been received as of the filing date.

Interest income for the six months ended December 31, 2015 and 2014 was $61,531 and $127,247, respectively, for the notes discussed above.

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

Forward Looking Statements

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

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

Results of Operations

Comparison of the six months ended December 31, 2015 and 2014:

	For the Six Months Ended December 31,
	2015		2014
Revenues	$	-	$	-
Cost of revenues		-		-
Gross profit		-		-
Operating expenses
Selling, general and administrative expenses		133,553		143,180
Depreciation and amortization expense		1,056		10,232
Total operating expenses		134,609		153,412
Other income (expenses):
Interest income		61,714		127,393
Interest expense		(11,056)		(32,874)
Total other income		50,658		94,519
Net loss before income taxes		(83,951)		(58,893)
Income taxes		-		-
Net loss	$	(83,951)	$	(58,893)

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Revenue and cost

We had no sales and cost for the six months ended December 31, 2015 and 2014.

Operating expenses

During the six months ended December 31, 2015 our total operating expenses were $134,609, a decrease of $18,803 as compared to $153,412 for the six months ended December 31, 2014. The changes are relevant to payroll expenses, rent expenses, amortization expenses, etc.

Net loss

For the six months ended December 31, 2015 we incurred a net loss of $83, 951. During the same period in 2014, we incurred a net loss of $58,893. This increase was the result of decrease in interest income of notes receivable and decrease in interest expense of due to related party.

Comparison of the three months ended December 31, 2015 and 2014:

	For the Three Months Ended December 31,
	2015		2014
Revenues	$	-	$	-
Cost of revenues		-		-
Gross profit		-		-
Operating expenses
Selling, general and administrative expenses		97,015		100,871
Depreciation and amortization expense		573		5,125
Total operating expenses		97,588		105,996
Other income (expenses):
Interest income		(585)		64,210
Interest expense		(11,056)		(17,009)
Total other income (expenses)		(11,641)		47,201
Net loss before income taxes		(109,229)		(58,795)
Income taxes		-		-
Net loss	$	(109,229)	$	(58,795)

Revenue and cost

We had no sales and cost for the three months ended December 31, 2015 and 2014.

Operating expenses

During the three months ended December 31, 2015 our total operating expenses were $97,588, a slight decrease of $8,408 as compared to $105,996 for the three months ended December 31, 2014.The changes are relevant to rent expenses, amortization expenses, etc.

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Net loss

For the three months ended December 31, 2015 we incurred a net loss of $109, 229. During the same period in 2014 we incurred a net loss of $58,795.This increase was the result of decrease in interest income of notes receivable and decrease in interest expense of due to related party.

Liquidity and Capital Resources

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

	For the six months ended
	December 31,
	2015		2014
Net cash provided by (used in) operating activities	$	756,812	$	(1,877,923	)
Net cash provided by investing activities		-		1,299,207
Net cash provided by (used in) financing activities		(741,930)		71,874
Effect of exchange rate changes on cash and cash equivalents		(13,214)		471
NET CHANGE IN CASH AND CASH EQUIVALENTS		1,668		(506,371)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		75,612		633,246
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	77,280	$	126,875

As of December 31, 2015 we had cash of $77,280 in our bank accounts and a working capital surplus of $5,370,119.

For the six months ended December 31, 2015, we received net cash of $756,812 in operating activities, compared to net cash used in $1,877,923 in operating activities during the same period in fiscal 2014. The net cash provided by operating activities increase of $2,634,735 was mainly due to the increase in cash received from film costs.

During the six months ended December 31, 2014, we received net cash of $1,299,207 from investing activities, including $1,786,410 collection of notes receivable and $487,203 loan made to other third party – Shaan’Xi HushiCulture Communication Company.

During the six months ended December 31, 2015, we used net cash of $741,930 in financing activities, compared to net cash received of $71,874 in financing activities during the same period in fiscal 2014. The decrease was mainly due to repaid short-term loan to a related party.

Our cash level increased by $1,668 during the six months ended December 31, 2015, compared to a decrease of $506,371 in the same period of 2014.

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

We intend to meet our cash requirements for the next 12 months through retaining income generated from daily operations and partnerships with finance groups on television and movie projects.

Critical Accounting Policies and Estimates

Please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2015 10-K for disclosures regarding our critical accounting policies and estimates. The interim financial statements follow the same accounting policies and methods of computations as those for the year ended June 30, 2015.

Off-Balance Sheet Arrangements

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We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Inflation

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

Audit Committee

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

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2015. Based on the evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective.

 Management Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on the evaluation performed, our management concluded that during the period covered by this report, our internal controls over financial reporting were effective.

During the quarterly period, we implemented the following measures to improve our internal control over financial reporting:

(1).

Engaged outside consultants to assist in our assessment of the effectiveness of the company’s internal controls over financial reporting; and

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(2).

Developed and instituted new internal control procedures to strengthen our month-end close and financial reporting processes;

We believe these measures have strengthened our internal control over financial reporting and disclosure controls and procedures.

Changes in Internal Control

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

PART II - OTHER INFORMATION

 Item 1.  Legal Proceedings

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

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

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.

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Item 6.  Exhibits

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

 SIGNATURES

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

	China Media Inc.
	(Registrant)
	/s/ Dean Li
Date: February 15, 2016	Dean Li
	President, Chief Executive Officer
	(Principal Executive Officer)

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EX-31

Exhibit 31.2

Certification Of The Chief Financial Officer Pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Ruijuan Hou, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q of China Media Inc.;

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.

6.  The registrant's other certifying officer(s) and I have indicated in this report whether or not there were significant changes in internal controls or on other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Dated:  February 15, 2016

By:          /s/Ruijuan Hou   

Ruijian Hou

Chief Financial Officer, Principal Accounting Officer

EX-31

Exhibit 31.1

Certification Of The Chief Executive Officer Pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Dean Li, certify that:

1.  I have reviewed this Quarterly Report on Form 10-Q of China Media Inc.;

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.

6.  The registrant's other certifying officer(s) and I have indicated in this report whether or not there were significant changes in internal controls or on other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Dated:  February 15, 2016

By:          /s/ Dean Li  

Dean Li

President, Chief Executive Officer

EX-32

Exhibit 32.2

Certification Pursuant to 18 U.S.C. 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of China Media Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ruijuan Hou, Chief Financial Officer of the Company certify, pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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.

Dated:  February 15, 2016

By:          /s/Ruijuan Hou 

Ruijuan Hou

Chief Financial Officer, Principal Accounting Officer

EX-32

Exhibit 32.1

Certification Pursuant to 18 U.S.C. 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of China Media Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dean Li, Chief Executive Officer of the Company certify, pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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.

Dated:  February 15, 2016

By:          /s/Dean Li   

Dean Li

President, Chief Executive Officer

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Document and Entity Information - USD ($)	6 Months Ended
	Dec. 31, 2015	Feb. 05, 2016
Document And Entity Information
Entity Registrant Name	China Media Inc.
Entity Central Index Key	0001434674
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 0
Entity Common Stock, Shares Outstanding		39,750,000
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2016

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Consoldiated Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Current assets
Cash and cash equivalents	$ 77,280	$ 75,612
Accounts receivable, net of allowance of $37,561 and $39,773 at December 31, 2015 and June 30, 2015, respectively	1,238,695	1,320,457
Notes receivable	4,378,033	4,667,012
Prepaid and other receivable	218,203	227,683
Total current assets	5,912,211	6,290,764
Fixed assets, net	19,403	21,779
Film costs	770,333	$ 2,463,540
Prepaid and other assets	770,333
Total assets	7,472,280	$ 8,776,083
Current liabilities
Accounts payable	9,267	9,682
Accrued liabilities and other payable	297,209	290,202
Due to related parties	235,616	1,012,703
Total current liabilities	542,092	1,312,587
Total liabilities	542,092	1,312,587
Stockholders' equity
Common stock, $0.00001 par value, 180,000,000 shares authorized; 39,750,000 shares issued and outstanding at December 31, 2015 and June 30, 2015, respectively	398	398
Additional paid-in capital	11,252,287	11,241,231
Accumulated other comprehensive income	738,837	1,199,250
Accumulated deficit	(5,061,334)	(4,977,383)
Total stockholders' equity	6,930,188	7,463,496
Total liabilities and stockholders' equity	$ 7,472,280	$ 8,776,083

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Consoldiated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Consoldiated Balance Sheets Parenthetical
Allowance for doubtful accounts	$ 38,371	$ 39,773
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	180,000,000	180,000,000
Common stock, shares issued	39,750,000	39,750,000
Common stock, shares outstanding	39,750,000	39,750,000

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Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements Of Operations And Comprehensive Income
Revenues
Cost of revenues
Gross profit
Selling, general and administrative	$ 97,015	$ 100,871	$ 133,553	$ 143,180
Depreciation and amortization expense	573	5,125	1,056	10,232
Total operating expenses	97,588	105,996	134,609	153,412
Other income (expense)
Interest income	(585)	64,210	61,714	127,393
Interest expense	(11,056)	(17,009)	(11,056)	(32,874)
Net income before income taxes	$ (109,229)	$ (58,795)	$ (83,951)	$ (58,893)
Income taxes
Net income	$ (109,229)	$ (58,795)	$ (83,951)	$ (58,893)
Net income (loss)	(109,229)	(58,795)	(83,951)	(58,893)
Foreign currency translation adjustment	(148,612)	17,738	(460,413)	19,891
Comprehensive income	$ (257,841)	$ (41,057)	$ (544,364)	$ (39,002)
Net income per common share, basic and diluted	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted average number of shares outstanding-basic and diluted	39,750,000	39,750,000	39,750,000	39,750,000

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Consoldiated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS OPERATING ACTIVITIES
Net loss	$ (83,951)	$ (58,893)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Imputed interest	$ 11,056	32,874
Amortization expense		6,508
Depreciation expense	$ 1,056	3,725
Changes in operating assets and liabilities:
Prepaid, other receivable and other assets	(795,768)	(127,064)
Accrued liabilities and other payable	25,647	(111,064)
Cash paid for film costs	1,598,772	(1,624,009)
Net cash used in operating activities	$ 756,812	(1,877,923)
CASH FLOW INVESTING ACTIVITIES
Loans made to others		(487,203)
Collection of notes receivable		1,786,410
Net cash provided by investing activities		1,299,207
CASH FLOW FINANCING ACTIVITIES
Proceeds from related parities	$ 57,456	71,874
Repayments to related parties	(799,386)
Net cash provided by (used in) financing activities	(741,930)	71,874
Effect of exchange rate changes on cash	(13,214)	471
NET CHANGE IN CASH	1,668	(506,371)
CASH AT BEGINNING OF THE YEAR	75,612	633,246
CASH AT END OF THE YEAR	$ 77,280	$ 126,875
SUPPLEMENTAL INFORMATION:
Interest paid
Income taxes paid		$ 106,906

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Description of Business

6 Months Ended

Dec. 31, 2015

Description Of Business

Description of Business

NOTE 1. Description of Business

China Media Inc. (the “Company”, “China Media”)was incorporated in the State of Nevada.

The Company does not conduct any substantive operations of its own, rather, it conducts its primary businessoperations through Vallant Pictures Entertainment Co., Ltd., its wholly owned subsidiary incorporated under thelaws of the British Virgin Islands, which in turn, conducts its business through Xi’an TV Media Co. Ltd. (“Xi’AnTV”). Effective control over Xi’AnTV was transferred to the Company through the series of contractualarrangements without transferring legal ownership in Xi’An TV. As a result of these contractual arrangements,the Company maintained the ability to approve decisions made by Xi’AnTV and was entitled to substantiallyall of the economic benefits of Xi’AnTV.

Xi’An TV was incorporated in Xi’An, Shaan’Xi Province, People’s Republic of China (“PRC”) and is in thebusiness of producing and developing television programming for the Chinese market.

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Summary of Significant Accounting Policies

6 Months Ended

Dec. 31, 2015

Summary Of Significant Accounting Policies

Summary of Significant Accounting Policies

NOTE 2. Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

The accompanying unaudited interim consolidated financial statements of China Media, Inc. (“We” or the “Company”), have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual financial statements for the year ended June 30, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended June 30, 2015 included in this document have been omitted. 

Use of Estimates

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

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Related Party Transactions

6 Months Ended

Dec. 31, 2015

Related Party Transactions

Related Party Transactions

NOTE 3. Related Party Transactions

From time to time, the Company borrowed loans from Dean, Li, the President and Chief Executive Officer of the Company. At June 30, 2015, Dean Li had advanced $1,012,703 to the Company, the Company repaid RMB 5 million (approximately $799,386) in July 2015 and received RMB 363,171 (approximately $57,456) in December 2015. As of December 31, 2015, the Company owed Dean Li $235,616. The loans borrowed from Mr. Dean Li are non-secured, free of interest with no specified maturity date. The imputed interests are assessed as an expense to the business operation and an addition to the paid-in-capital and calculated based on annual interest rate in the range of 5.94-6.56% with reference to one-year loan.

On June 16, 2014, the Company and Hangzhou Yanse Advertising Production Company (“Hangzhou Yanse”)entered into an agreement in production and distribution of the film “Dan Ta”. In July 2015, the cooperationbetween the Company and Hangzhou Yanse was terminated. Hangzhou Yanse refunded RMB 10 million(approximately $1,643,466) to the Company for part of its investments on July 30, 2015. The remaining investmentof RMB 5 million (approximately $791,402) was subsequently made to Mr. Dean Li on behalf of the Company and received by the Company in November 2015.

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Film Costs

6 Months Ended

Dec. 31, 2015

Film Costs

Film Costs

NOTE 4. Film Costs

Film costs consist of the following:

	December 31, 2015		June 30, 2015
Completed and not released:
In development - Film	$	770,333	$	2,463,540
Film costs	$	770,333	$	2,463,540

The decrease of film costs is primarily due to the termination of film “DanTa” that was discussed in Note 3.

In July 2015, the Company entered into an agreement to invest RMB 5 million (approximately $799,386 at the time of investment) in a film that is produced by Beijing Huaxia Star Media Co., Ltd. and the payment was made in August 2015.

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Prepaid and Other Assets

6 Months Ended

Dec. 31, 2015

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid and Other Assets

NOTE 5. Prepaid and Other Assets

In November 2015, the Company entered into an agreement with Xi’an Lianying Network Culture Media Co., Ltd. to invest RMB 5 million (approximately $791,027 at the time of investment) in the advertising, promotion and publicizing of a new film that is under production. The prepayment was made in November 2015 and is non-refundable pursuant to the agreement.

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Notes Receivable

6 Months Ended

Dec. 31, 2015

Notes Receivable

Notes Receivable

NOTE 6. Notes Receivable

On March 20, 2013, the Company lent RMB 946,500 (approximately $155,000) in the form of an interest free loan to China Fengde Movie and TV Copyright Agency (“Zhongshi Fengde”), one of the Company’s business partners. The Company collected RMB 530,000 (approximately $86,305) as of June 30, 2014. No repayment was collected during the year ended June 30, 2015 and the three months ended September 30, 2015. The outstanding balance was RMB 416,500 (approximately $65, 551) as of September 30, 2015.

On June 13, 2014, the Company lent RMB 18M (approximately $2,931,119) to Shaan’Xi Hushi Culture Communication Company (SHCC), a company owned by a business friend of Dean Li, the President and Chief Executive Officer of the Company. Based on the agreement, the Company will waive interest on the loan if SHCC repays the loan within 30 days; the Company will charge interest rate at 200% of the prevailing PRC prime rate if SHCC repays the loan after 30 days. In July 2014, the Company received repayment of RMB 11M (approximately $1,786,410) and SHCC orally promised to pay off the remaining balance no later than December 31, 2015. On January 8, 2015, the Company received interest of RMB 455,000 (approximately $74,165) on the loan.

On July 1, 2014, the Company lent an additional RMB 3M (approximately $487,203) to SHCC with three months term. Based on the agreement, the Company will waive interest on the loan if SHCC repays the loan within 30 days; the Company will charge interest rate at four times of the current bank loan rate if SHCC repays the loan after 30 days. No collection has been received as of the filing date and SHCC orally promised to pay off the loan before December 31, 2015. On January 19, 2015, the Company received interest of RMB 360,000 (approximately $58,694) on the loan.

On November 30, 2012, the Company entered into an agreement with Zhongshi Fengde to co-purchase copyrights of two TV series with the Company’s total investment is RMB 18 million (approximately $2.86 million at the time of investment). On January 28, 2015, both parties agreed to transfer the Company’s payment in these two TV series to a short-term loan to Zhongshi Fengde as the copyrights purchase was not successfully completed. As a result, film costs of approximately $2.83 million were reclassified to notes receivable as of September 30, 2015. No collection has been received as of the filing date.

Interest income for the three months ended September 30, 2015 and 2014 was 62,299 and nil, respectively, for the notes discussed above.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2015

Summary Of Significant Accounting Policies Policies

Basis of Presentation and Consolidation

Basis of Presentation and Consolidation

The accompanying unaudited interim consolidated financial statements of China Media, Inc. (“We” or the “Company”), have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual financial statements for the year ended June 30, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the year ended June 30, 2015 included in this document have been omitted.

Use of Estimates

Use of Estimates

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

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Film Costs (Tables)

6 Months Ended

Dec. 31, 2015

Film Costs Tables

Film Cost

	December 31, 2015		June 30, 2015
Completed and not released:
In development - Film	$	770,333	$	2,463,540
Film costs	$	770,333	$	2,463,540

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Description of Business (Details) - shares	Sep. 17, 2011	Jul. 07, 2010	Sep. 16, 2011
Shares, Outstanding	39,750,000		39,743,000
Stock Issued During Period, Shares, Issued for Noncash Consideration	7,000
Fullead Overseas Limited
Number of Shares Purchased of Company's common stock		32,500,000

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Related Party Transactions (Details Narrative)	12 Months Ended
	Jun. 30, 2015 USD ($)
Dean Li, President and Shareholder
Advance from Related party	$ 235,616
Maximum [Member]
Range of Annual Imputed Interest Rate (as a percentage)	6.56%
Minimum [Member]
Range of Annual Imputed Interest Rate (as a percentage)	5.94%

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Film Costs (Details) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Film Costs Details
In development - TV Series	$ 770,333	$ 2,463,540
Film costs	$ 770,333	$ 2,463,540

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Notes Receivable (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015	Mar. 20, 2013
Interest Income	$ 61,531	$ 127,247
Business Partner [Member] | Zhongshi Fengde [Member]
Amount lent				$ 155,000
Notes Receivable			$ 86,305