10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Mark One

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

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021

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

For the transition period from _____ to _____

Commission File No. 333-227526

SHENGDA NETWORK TECHNOLOGY, INC.

(Exact name of registrant as specified in its charter)

Nevada	35-2606208
(State or other jurisdiction of incorporation or Organization	(IRS Employment Identification No.)

Floor 6, Building 6
LuGang WebMall Town, Chou Jiang, YiWu
Jinhau City, Zhejiang Province China	322000
(Address of principal executive offices)	(Zip Code)

1-702-979-5606

(Registrant’s telephone number, including area code)

n/a

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

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

Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Stock	SOLQ	N/A

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

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

Large accelerated filer. ☐	Accelerated filer. ☐
Non-accelerated filer ☐	Smaller reporting company ☒	Emerging growth company ☐

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

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

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date

Class	Outstanding as of August 10, 2021
Common Stock: $0.001	14,009,945

TABLE OF CONTENTS

PART 1 – FINANCIAL INFORMATION
Item 1. – Financial Statements (unaudited)	F-1
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of Operations	3
Item 3. – Quantitative and Qualitative Disclosures about Market Risk	5
Item 4. – Controls and Procedures	5
PART 2 – OTHER INFORMATION
Item 1. – Legal Proceedings	6
Item 2. – Unregistered Sales of Equity Securities and Use of Proceeds	6
Item 3. – Default upon Senior Securities	6
Item 4. – Mine Safety Disclosures	6
Item 5. – Other Information	6
Item 6. – Exhibits	6

2

Shengda Network Technology, Inc. and Subsidiaries

INDEX

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

Contents	Page(s)
Condensed Consolidated Balance Sheets as of March 31, 2021 and June 30, 2020	F-2
Condensed Consolidated Statements of Operations for the Three and Nine Months ended March 31, 2021 and 2020	F-3
Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the Three and Nine Months Ended March 31, 2021 and 2020	F-4
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2021 and 2020	F-5
Notes to Condensed Consolidated Financial Statements	F-6

F-1

SHENGDA NETWORK TECHNOLOGY, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31, 2021		June 30, 2020
ASSETS
Current Assets
Cash and cash equivalents	$	317,090	$	4,271,326
Account receivable		3,537,706		-
Advance to suppliers		634,353		-
Loan receivable		8,242,010		-
Prepaid expense		675		4,129
Total Current Assets		12,731,834		4,275,455
Right of use asset - operating		3,683		-
Property And Equipment, Net		71,251		-
Total Assets	$	12,806,768	$	4,275,455
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities
Accounts payable	$	172,377	$	47,085
Related party loans		19,974		19,974
Accrued expenses and other payables		85,140		26,416
Tax payable		276,511		2,526
Advances and deposits		30,526		3,972,500
Advances and deposits - related party		2,000		302,000
Operating lease liabilities		4,636		-
Other payable - related party		-		1,330
Total Liabilities		591,164		4,371,831
Stockholders’ Equity (deficit)
Preferred Stock, $0.001 par value, 20,000,000 shares authorized;		-		-
Common Stock, $0.001 par value, 1,000,000,000 shares authorized;14,009,945 and 6,960,000 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively		14,010		6,960
Additional paid-in capital		10,513,985		16,310
Retained earnings (Accumulated loss)		944,920		(80,130	)
Accumulated other comprehensive income (loss)		742,690		(39,516	)
Total Stockholders’ Equity (Deficit)		12,215,605		(96,376	)
Total Liabilities and Stockholders’ Equity	$	12,806,768	$	4,275,455

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

F-2

SHENGDA NETWORK TECHNOLOGY, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME

	For the Three Months ended March 31,						For the Nine Months ended March 31,
	2021			2020			2021			2020
Revenue	$	765,616		$	-		$	8,499,788		$	-
Cost of Revenue		659,003			-			6,969,140			-
Gross Profit		106,613			-			1,530,648			-
Expenses
Professional expenses		20,789			27,445			55,464			44,697
General and administrative expenses		32,880			858			93,045			995
Total expenses		53,669			28,303			148,509			45,692
Income (loss) from operations		52,944			(28,303	)		1,382,139			(45,692	)
Other income (expense)
Interest expense		(56	)					(56	)
Interest income		395			-			20,808			-
Other expense		(33	)		-			(33	)		-
Bank charges		(88	)		-			(800	)		-
Other income, net		218			-			19,919			-
Income (loss) before income taxes		53,162			(28,303	)		1,402,058			(45,692	)
Income Tax Expense		7,955			-			377,008			-
Net income (loss) after tax	$	45,207		$	(28,303	)	$	1,025,050		$	(45,692	)
Other comprehensive income
Foreign currency translation gain		(63,276	)		-			782,206			-
Total Comprehensive (Loss) income	$	(18,069	)	$	(28,303	)	$	1,807,256		$	(45,692	)
Basic and diluted net income (loss) per common share	$	0.00		$	(0.00	)	$	0.09		$	(0.01	)
Weighted-average number of common shared outstanding		14,009,945			6,960,000			10,793,729			6,960,000

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

F-3

SHENGDA NETWORK TECHNOLOGY, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)

									Accumulated
					Additional				Other			Total
	Common Stock				Paid-in		Retained		Comprehensive			Stockholders’
Three Months Ended March 31, 2021	Shares		Amount		Capital		Earnings		Income			Equity (Deficit)
Balance December 31, 2020		14,009,945	$	14,010	$	10,513,985	$	899,713	$	805,966		$	12,233,674
Net income		-		-		-		45,207		-			45,207
Foreign currency translation adjustment		-		-		-		-		(63,276	)		(63,276	)
Balance March 31, 2021		14,009,945	$	14,010	$	10,513,985	$	944,920	$	742,690		$	12,215,605

										Accumulated
					Additional					Other
	Common Stock				Paid-in		Retained			Comprehensive			Stockholders’
Nine Months Ended March 31, 2021	Shares		Amount		Capital		Earnings			Income			Equity (Deficit)
Balance June 30, 2020		6,960,000	$	6,960	$	16,310	$	(80,130	)	$	(39,516	)	$	(96,376	)
Issuance of common shares for cash		7,049,945		7,050		10,497,675		-			-			10,504,725
Net income		-		-		-		1,025,050			-			1,025,050
Foreign currency translation adjustment		-		-		-		-			782,206			782,206
Balance March 31, 2021		14,009,945	$	14,010	$	10,513,985	$	944,920		$	742,690		$	12,215,605

										Accumulated
					Additional					Other
	Common Stock				Paid-in		Accumulated			Comprehensive		Stockholders’
Three Months Ended March 31, 2020	Shares		Amount		Capital		Deficit			Income		Equity (Deficit)
Balance December 31, 2019		6,960,000	$	6,960	$	17,640	$	(40,516	)	$	-	$	(15,916	)
Net loss		-		-		-		(28,303	)		-		(28,303	)
Balance March 31, 2020		6,960,000	$	6,960	$	17,640	$	(68,819	)	$	-	$	(44,219	)

										Accumulated
					Additional					Other
	Common Stock				Paid-in		Accumulated			Comprehensive		Stockholders’
Nine Months Ended March 31, 2020	Shares		Amount		Capital		Deficit			Income		Equity (Deficit)
Balance June 30, 2019		6,960,000	$	6,960	$	17,640	$	(23,127	)	$	-	$	1,473
Net loss		-		-		-		(45,692	)				(45,692	)
Balance March 31, 2020		6,960,000	$	6,960	$	17,640	$	(68,819	)	$	-	$	(44,219	)

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

F-4

SHENGDA NETWORK TECHNOLOGY INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Nine Months ended March 31,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	1,025,050		$	(45,692	)
Adjustments to reconcile net cash used in operating activities
Depreciation and amortization		8,215			-
Changes in Operating Assets and Liabilities:
Account receivable		(3,470,436	)		-
Advance to suppliers		(622,291	)		-
Prepaid expenses		3,623			(918	)
Accounts payable		122,015			16,059
Accrued expenses and other payables		58,442			9,467
Tax payable		268,581			-
Advances and deposits		29,945			-
Other payable - Related party		(1,330	)		-
Net cash used in operating activities		(2,578,186	)		(21,084	)
CASH FLOWS FROM INVESTING ACTIVITIES
Loan receivable		(8,085,285	)		-
Acquisition of plant and equipment		(77,234	)		-
Net cash used in investing activities		(8,162,519	)		-
CASH FLOWS FROM FINANCING ACTIVITIES
Related party loan		-			5,000
Proceeds for sales of common stock to related party		2,000			-
Proceeds for sales of common stock		6,230,225			-
Net cash provided by financing activities		6,232,225			5,000
Effect of exchange rate fluctuation on cash and cash equivalents		554,244			-
Net decrease in cash		(3,954,236	)		(16,084	)
Cash, beginning of period		4,271,326			17,202
Cash, end of period	$	317,090		$	1,118
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income tax	$	-		$	-
Interest	$	-		$	-

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

F-5

SHENGDA NETWORK TECHNOLOGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Organization and Operations, and Going Concern

Shengda Network Technology, Inc. (formerly known as “Soltrest, Inc.” or the “Company”), was incorporated on March 14, 2018 under the laws of the State of Nevada. The Company’s principal business is the development of internet and personal computer security software products. The Company is engaged in E- Commerce business.

On April 20, 2020, the Company purchased 10,000 shares of common stock of Peaker International Trade Group Limited (“Peaker”) for a total consideration of $1,330. These shares comprised of 100% of the then issued and outstanding shares of common stock of Peaker. Peaker was formed in 2018 in Hong Kong.

On May 15, 2020, Peaker set up a Company Zhejiang Jingmai Electronic Commerce Ltd., in China of which, Peaker is the sole shareholder.

Risk and Uncertainty Concerning COVID-19 Pandemic

In December 2019, an outbreak of a novel strain of coronavirus (COVID-19). On March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. The Company is currently monitoring the outbreak of COVID-19 and the related business and travel restrictions and changes to behavior intended to reduce its spread. While the Company’s operations are principally located outside the United States, we utilize various consultants located in the United States, we participate in a global supply chain, and the existence of a worldwide pandemic, the fear associated with COVID-19, or any, pandemic, and the reactions of governments around the world in response to COVID-19, or any, pandemic, to regulate the flow of labor and products and impede the travel of personnel, may impact our ability to conduct normal business operations, which could adversely affect our results of operations and liquidity. Disruptions to our supply chain and business operations, or to our suppliers’ or customers’ supply chains and business operations, could include disruptions from the closure of supplier and manufacturer facilities, interruptions in the supply of raw materials and components, personnel absences, or restrictions on the shipment of our or our suppliers’ or customers’ products, any of which could have adverse ripple effects on our manufacturing output and delivery schedule. Any of these uncertainties could have a material adverse effect on our business, financial condition or results of operations.

Going Concern

The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to sell its stock to the investing community and obtain necessary financing to continue operations, and the attainment of profitable operations. Although the Company recorded a net income of $1,025,050 for the nine months ended March 31, 2021, it has used net cash flows in operating activities of $2,578,186, and has a net decrease in cash of $3,954,236 for the nine months ended March 31, 2021. These factors, among others, raise a substantial doubt regarding the Company’s ability to continue as a going concern. If the Company is unable to obtain adequate capital, it could be forced to cease operations. The interim condensed consolidated financial statements do not include any adjustments to reflect the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

F-6

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements included herein have been prepared by Shengda Network Technology Inc. and Subsidiaries, including its consolidated subsidiaries, the “Company”, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2020, filed with the SEC on November 13, 2020.

The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets; (2) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Peaker International Trade Group Limited or “Peaker” and Peaker’s wholly owned subsidiary Zhejiang Jingmai Electronic Commerce Ltd., in China. All significant inter-company accounts and transactions have been eliminated in consolidation.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash deposited with banks. Substantially all of the Company’s cash is held in bank accounts in the PRC and is not protected by FDIC insurance or any other similar insurance.

The Company’s bank account in the United States is protected by FDIC insurance. As of March 31, 2021 and June 30, 2020, the Company’s bank account in the United States had no balances exceeding FDIC insurance of $250,000.

The Company’s bank account in PRC is protected by FSD insurance. As of March 31, 2021 and June 30, 2020, the Company’s bank account in PRC had $237,894 and $4,269,349, respectively, exceeding FSD insurance of RMB 500,000 as of March 31, 2021.

Major Customer

The Company has one major customer that accounted for 62% of revenues totaling $5,233,559 for the nine months ended March 31, 2021. The Company has one major customer that accounted for 19% of revenues totaling $145,293 for the three months ended March 31, 2021.

Major Vendor

The Company has two major vendors that accounted for 100% of purchase amount totaling $6,958,811 for the nine months ended March 31, 2021. The Company has one major vendor that accounted for 100% of purchase amount totaling $658,856 for the three months ended March 31, 2021.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents.

F-7

Revenue Recognition

The company is engaged in generating revenue through online networking sales, Shengda Network Technology is neither involved in production nor hold any inventory. The company mainly sells products to enhance immunity and bedding to prevent mites, help sleep and resist bacteria.

The Company recognizes revenues when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In that determination, under ASC 606, the Company follows a five-step model that includes: (1) determination of whether a contract, an agreement between two or more parties that creates legally enforceable rights and obligations, exists; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when (or as) the performance obligation is satisfied.

Accounts Receivable

Accounts receivable are generated primarily through sales to customers and are stated at invoiced amount, net of an allowance for doubtful accounts and bear no interest. A provision for doubtful accounts is determined based on a specific review of outstanding customer balances and historical customer write-off amounts and is charged to operations at the time management determines these accounts may become uncollectible.

The Company establishes an individualized credit and collection policy based on each individual customer’s credit history. The Company does not have a uniform policy that applies equally to all customers. The collection period usually ranges from three months to twelve months. The Company grants extended payment terms only when the Company believes that the payment will be collectible at the end of the term. The Company grants extended payment terms to customers based on the following factors: (a) whether or not the Company views a real need, from the customer’s perspective, for the extension and (b) how critical the Company’s relationship with the customer and is the customer the Company’s long-term business.

The Company reviews the accounts receivable on a periodic basis and based on its reviews, the Company recorded allowance for doubtful accounts of $0 and $0 as of March 31, 2021 and June 30, 2020, respectively and recorded bad debt expense of $0 and $0 for the nine months ended March 31, 2021 and 2020.

Fair Value Measurements

The Company has established a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:

● Level 1 – inputs are based upon unadjusted quoted prices for identical instruments in active markets.

● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

● Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.

Our other current financial assets and current financial liabilities have fair values that approximate their carrying values.

F-8

Property and Equipment

Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:

Items	Useful life
Vehicles	5 years

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the statement of income in other income and expenses.

Leases

The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of March 31, 2021, the Company did not have any finance lease.

Similar to other long-lived assets, right-of-use assets are tested for impairment when events or conditions indicate that the carrying value of an asset may not be fully recoverable from future cash flows. See Note 5, “Leases,” for additional information.

Commitment and Contingencies

In next one year, the Company will pay operating lease costs of $4,762.

Income Tax

Income tax returns are filed in federal, state, local and foreign jurisdictions as applicable. Provisions for current income tax liabilities are calculated and accrued on income and expense amounts expected to be included in the income tax returns for the current year. Income taxes reported in earnings also include deferred income tax provisions and provisions for uncertain tax positions.

Deferred income tax assets and liabilities are computed on differences between the financial statement bases and tax bases of assets and liabilities at the enacted tax rates. Changes in deferred income tax assets and liabilities associated with components of other comprehensive income are charged or credited directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. The effect on deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets when realization is less than more likely than not.

Liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions, in our judgment, do not meet a more-likely-than-not threshold based on the technical merits of the positions. Additionally, liabilities may be established for uncertain tax positions when, in our judgment, the more-likely-than-not threshold is met, but the position does not rise to the level of highly certain based upon the technical merits of the position. Estimated interest and penalties related to uncertain tax positions are included as a component of income tax expense.

F-9

Currency Translation

The assets and liabilities of the Company’s subsidiaries outside the U.S. are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates, primarily from RMB. Income and expense items are translated at the average exchange rates prevailing during the period. Gains and losses resulting from currency transactions are recognized currently in income and those resulting from translation of consolidated financial statements are included in accumulated other comprehensive income (loss).

Note 3 - Loan Receivable

Loan receivable amounted $8,242,010 and $0 as of March 31, 2021 and June 30, 2020, respectively. On October 25, 2020, the Company signed an agreement with the Company’s major customer. The Company agreed to loan the $9,157,789 (RMB60,000,000) at an annual interest rate of 7.2%. The actual loan amount shall prevail within the total amount. The loan is guaranteed by the Company’s supplier and due on October 25, 2021. The Borrower is required to pay all the principal and the relevant interest in full amount on the repayment date.

The Company assessed the implication on Revenue Recognition, ASC 606 and determined that the terms of the loan are at the fair market value and does not impact the revenue recognition of the Company.

Note 4 – Property and Equipment

As of March 31, 2021 and June 30, 2020, the Company had gross property and equipment of $78,731 and $0 and accumulated depreciation of $7,480 and $0, respectively. Property and equipment consisted of the vehicles. For the three months ended March 31, 2021 and 2020, and for the nine months ended March 31, 2021 and 2020, depreciation and amortization expenses amounted to $8,215 and $0, respectively.

Note 5 – Leases

The Company has an operating lease for the rental of office space. Rent expense for the operating lease for the three and months ended March 31, 2021 and 2020, was $0, respectively, and for nine months ended March 31, 2021 and 2020, rent expense was $3,369 and $0, respectively. The Company had paid rent up until December 10, 2020, the did not renew this lease.

On January 5, 2021, Zhejiang Jingmai Electronic Commerce Ltd. leases new office in Zhejiang, China. The lease term of the office space is from January 5, 2021 to April 5, 2022, and the rent-free period is from January 5, 2021 to April 5, 2021. The monthly rent is approximately $397 (RMB 2,600). The operating lease is listed as separate line item on the Company’s condensed consolidated financial statements and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are also listed as a separate line item on the Company’s condensed consolidated financial statements.

Operating lease right-of-use assets and liabilities commencing after January 1, 2021 are recognized at commencement date based on the present value of lease payments over the lease term. For the nine months ended March 31, 2021, the Company recognized approximately $934 in total operating lease costs.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Information related to the Company’s operating ROU assets and related lease liabilities are as follows:

	Nine Months ended March 31, 2021
Cash paid for operating lease liabilities	$	-
Weighted-average remaining lease term		1.0
Weighted-average discount rate		5	%
Minimum future lease payments	$	4,636

F-10

The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending March 31:

2022	$	4,762
2023		-
2024		-
2025		-
2026 and thereafter		-
Total undiscounted lease liabilities		4,762
Less: Amount representing interest		(126	)
Total present value of minimum lease payments	$	4,636

Note 6 – Advances and Deposits

Advances and deposits amounted to $32,526 and $4,274,500, as of March 31, 2021 and June 30, 2020, respectively, of which $2,000 and $302,000 pertains to a related party (See Note 9).

Note 7 – Accrued Expenses and Other Payables

As of March 31, 2021 and June 30, 2020, accrued expenses and other payables amounted to $85,140 and $26,416, respectively. Other payable as of June 30, 2020 had $1,330 payable to related party (See Note 9). In September 2020, $1,330 payable to related party has been repaid.

Note 8 – Stockholders’ Equity

Shares Authorized

On March 30, 2020, the Company filed a Certificate of Amendment with the State of Nevada, increasing the number of authorized shares to 1,020,000,000 par value $0.001; comprising of 1,000,000,000 of common stock and 20,000,000 of preferred stock.

Common Stock

On March 14, 2018 the Company exchanged 5,000,000 shares of common stock to the former President in return of her services valued at $5,000.

Pursuant to a Form S-1 Registration Statement, in June, 2020, the Company sold 1,960,000 shares of Common Stock, par value of $0.001 per share, for the total aggregate proceeds of $19,600.

On November 2, 2020, the Company issued 7,049,945 shares of common stock at the sale price range from $0.06 to $2 per share, to 436 unrelated and one related party.

As a result of all common stock issuances, the total issued and outstanding shares of common stock were 14,009,945 shares and 6,960,000 shares as of March 31, 2021 and June 30, 2020, respectively.

Note 9 – Related Party Transactions

Related parties with whom the Company had transactions are:

Related Parties	Relationship
HangJin Chen	President/CEO/CFO/Secretary/Director
Youcheng Chen	Father of CEO HangJin Chen
Li Weiwei	President/CEO/CFO/Secretary/Director (Former)

F-11

On June 16, 2020, the Company issued 300,000 shares of common stock to a related party (the Company’s CEO’s father) at $1.00 per share which was subsequently cancelled on June 30, 2020. The consideration of $300,000 is recorded as advances and deposits under current liabilities in the consolidated balance sheets. On November 2, 2020, 300,000 shares of common stock were issued.

On June 20, 2020, the Company issued 10,000,000 shares of common stock to HangJin Chen, the Company’s CEO at $0.0002 per share which were subsequently cancelled on June 30, 2020. The consideration of $2,000 is recorded as advances and deposits under current liabilities in the consolidated balance sheets.

On July 1, 2020, the Company received a deposit of $2,000 from a related party Youcheng Chen. This deposit is recorded as advances and deposits under current liabilities. On November 2, 2020, the Company issued 33,333 shares of common stock at the sale price $0.06 per share to a related party Youcheng Chen.

Loan from related party represent the advances to the Company by former President and Director in the amount of $19,974 as of March 31, 2021 and June 30, 2020, respectively. The loan is unsecured, non-interest bearing and due on demand. The Company has not recorded any imputed interest expense for the nine months ended March 31, 2021 and 2020.

Note 10 – Subsequent Events

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to March 31, 2021 to the date these condensed consolidated financial statements were available to be issued and has determined that there were no significant subsequent events or transactions that would require recognition or disclosure in the consolidated financial statements.

F-12

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

FORWARD LOOKING STATEMENTS

Statements made in this Form 10-Q that are not historical or current facts are “forward-looking statements” made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the “Act”) and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “approximate” or “continue,” or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management’s best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

Overview of the Business

The Company was incorporated on March 14, 2018 under the laws of the State of Nevada. The Company’s principal business is the development of internet and personal computer security software products. The Company is engaged in E-Commerce business.

Results of Operations

Three Months Ended March 31, 2021 Compared to the Three Months Ended March 31, 2020

The following table summarizes the results of our operations for the three months ended March 31, 2021 and 2020, respectively, and provides information regarding the dollar and percentage increase or (decrease) from the current three-month period to the prior three-month period:

Line Item	Three months ended 3/31/21		Three months ended 3/31/20			Increase (Decrease)		Percentage Increase (Decrease)
Revenues	$	765,616	$	-		$	765,616		n/a
Operating expenses		53,669		28,303			25,366		89.62	%
Net income (loss)		45,207		(28,303	)		73,510		259.72	%
Income (Loss) per share of common stock		0.00		(0.00	)		-		n/a

We recorded net income of $45,207 for the three months ended March 31, 2021 as compared with a net loss of $28,303 for the three months ended March 31, 2020 primarily due to the ramp-up of the Company’s business operations in the relevant periods.

Nine Months Ended March 31, 2021 Compared to the Nine Months ended March 31, 2020

The following table summarizes the results of our operations for the nine months ended March 31, 2021 and 2020, respectively, and provides information regarding the dollar and percentage increase or (decrease) from the current nine-month period to the prior nine-month period:

Line Item	Nine months ended 3/31/21		Nine months ended 3/31/20			Increase (Decrease)		Percentage Increase (Decrease)
Revenues	$	8,499,788	$	-		$	8,499,788		n/a
Operating expenses		148,509		45,692			102,817		225.02	%
Net income (loss)		1,025,050		(45,692	)		1,070,742		2,343.39	%
Income (Loss) per share of common stock		0.09		(0.01	)		0.10		1,546.58	%

We recorded net income of $1,025,050 for the nine months ended March 31, 2021 as compared with a net loss of $45,692 for the nine months ended March 31, 2020 primarily due to the ramp-up of the Company’s business operations in the relevant periods.

Liquidity and Capital Resources

As of March 31, 2021, we had total assets of $12,806,768, working capital of $12,140,670 and an accumulated stockholders’ equity of $12,215,605. We recorded $8,499,788 in revenues for the nine months ended March 31, 2021, while we had no revenues in the nine months ended March 31, 2020.

Operating Activities

Net cash used in operating activities for the nine months ended March 31, 2021 was $2,578,186 primarily as a result of net income of $1,025,050, depreciation and amortization expense of $8,215 and due to net increase in operating assets of $3,611,451 due to increase in accounts receivable of $3,470,436, increase in advance to suppliers of $622,291, increase in accounts payable of $122,015, increase in accrued expenses and other payables of $58,442, increase in tax payable of $268,581 and increase in advances and deposits of $29,945, offset by decrease in prepaid expenses of $3,623 and decrease in other payable to related party of $1,330. Cash used in operating activities for the nine months ended March 31, 2020 was $21,084 primarily due to the net loss of $45,692, and due to net increase in operating liabilities of $24,608 as a result of increase in prepaid expenses of $918, increase in accounts payable of $16,059 and increase in accrued expenses and other payable of $9,467.

3

Investing Activities

Net cash used in investing activities for the nine months ended March 31, 2021 was $8,162,519 primarily due to loan of $8,085,285  advanced to the customer, and cash paid for the acquisition of property and equipment of $77,234. Net cash used in investing activities for the nine months ended March 31, 2020 was $0.

Financing Activities

Net cash provided by financing activities for the nine months ended March 31, 2021 was $6,232,225 primarily due to cash proceeds from sale of common stock of $6,230,225 to third party investors, and cash proceeds from sale of stock of $2,000 received from related party. Net cash provided by financing activities for the nine months ended March 31, 2020 was $5,000 as a result of loan received by the Company from a related party.

We recorded a gain of $554,246 for the nine months ended March 31, 2021 as a result of effect of exchange rate fluctuation on cash and cash equivalents.

As a result of the above explanations, we recorded a net decrease in cash of $3,954,235 for the nine months ended March 31, 2021 as compared to a decrease in cash of $16,084 for the same comparable period in 2020.

Future Capital Requirements

Our capital requirements for the fiscal year ending June 30, 2021 will depend on numerous factors, including management’s evaluation of the timing of projects to pursue. Subject to our ability to generate revenues and cash flow from operations and our ability to raise additional capital (including through possible joint ventures and/or partnerships), we expect to incur substantial expenditures to carry out our business plan, as well as costs associated with our capital raising efforts, and being a public company.

Our plans to finance our operations include seeking equity and debt financing, alliances or other partnership agreements, or other business transactions, that would generate sufficient resources to ensure continuation of our operations. Management believes that the Company’s cash on hand will be sufficient to fund all Company obligations and commitments for the next twelve months. Historically, we have depended on loans from our principal shareholders and their affiliated companies to augment our working capital as required

The sale of additional equity or debt securities may result in additional dilution to our shareholders. If we raise additional funds through the issuance of debt securities or preferred stock, these securities could have rights senior to those of our common stock and could contain covenants that would restrict our operations. Any such required additional capital may not be available on reasonable terms, if at all. If we were unable to obtain additional financing, we may be required to reduce the scope of, delay or eliminate some or all of our planned activities and limit our operations which could have a material adverse effect on our business, financial condition and results of operations.

Going Concern

The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to sell its stock to the investing community and obtain necessary financing to continue operations, and the attainment of profitable operations. Although the Company recorded a net income of $1,025,050 for the nine months ended March 31, 2021, it has used net cash flows in operating activities of $2,578,186, and has a net decrease in cash of $3,954,236 for the nine months ended March 31, 2021. These factors, among others, raise a substantial doubt regarding the Company’s ability to continue as a going concern. If the Company is unable to obtain adequate capital, it could be forced to cease operations. The interim condensed consolidated financial statements do not include any adjustments to reflect the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

4

Inflation

The amounts presented in our 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.

Off Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity or capital expenditures or capital resources that is material to an investor in our securities.

Seasonality

Our operating results are not affected by seasonality.

Critical Accounting Policies

The Securities and Exchange Commission issued Financial Reporting Release No. 60, “Cautionary Advice Regarding Disclosure About Critical Accounting Policies” suggesting that companies provide additional disclosure and commentary on their most critical accounting policies. In Financial Reporting Release No. 60, the Securities and Exchange Commission has defined the most critical accounting policies as the ones that are most important to the portrayal of a company’s financial condition and operating results and require management to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. The nature of our business generally does not call for the preparation or use of estimates. Due to the fact that the Company does not have any operating business, we do not believe that we do not have any such critical accounting policies.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), as of March 31, 2021. Based on this evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures are not effective to ensure that information required to be disclosed by us in the reports 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 our disclosure and controls are not designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (2) inadequate segregation of duties consistent with control objectives; (3) ineffective controls over period end financial disclosure and reporting processes and (4) lack of timely communications with vendors and proper accrual of expenses.

5

Management believes that the material weaknesses set forth in items (2), (3) and (4) above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

Changes in Internal Control Over Financial Reporting

There were no changes (including corrective actions with regard to significant deficiencies or material weaknesses) in our internal controls over financial reporting that occurred during the nine months ended March 31, 2021 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

Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

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

No report required.

Item 3. Default Upon Senior Securities

No report required.

Item 4. Mine Safety Disclosures

No report required.

Item 5. Other Information

No report required.

Item 6. Exhibits

Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to section 302 of the Sarbanes-Oxley act of 2002
31.2	Certification of Chief Financial Officer Pursuant To 18 U.S.C. Section 1350 as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act Of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer Pursuant Section 906 of the Sarbanes-Oxley Act

6

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Beijing, China on August 10, 2021.

SHENGDA NETWORK TECHNOLOGY, INC.
By:	/s/ HangJin Chen
Name:	HangJin Chen
Title:	President, Secretary and Director
	(Principal Executive, Financial and Accounting Officer)

In accordance with the requirements of the Securities Act of 1933, this registration statement was signed by the following persons in the capacities and on the dates stated.

Signature	Title	Date
/s/ HangJin Chen
HangJin Chen	President, Secretary and Director (Principal Executive, Financial and Accounting Officer)	August 10, 2021

7

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, HangJin Chen, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Shengda Network Technology, 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.	I am 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 we 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

4. 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.

/s/ HangJin Chen

HangJin Chen

Principal Executive Officer

Dated: August 10, 2021

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, HangJin Chen, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Shengda Network Technology, 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 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.

/s/ HangJin Chen

HangJin Chen

Principal Financial and Accounting Officer

August 10, 2021

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), the undersigned officer of Shengda Network Technology, Inc., a Nevada corporation (the “Company”), does hereby certify, to such officer’s knowledge, that:

The quarterly report on Form 10-Q for the period ended March 31, 2021 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 10, 2021
	/s/ HangJin Chen
	HangJin Chen
	Principal Executive Officer and Principal Financial and Accounting Officer

A signed original of this written statement required by Section 906 has been provided to SHENGDA NETWORK TECHNOLOGY, INC. and will be retained by SHENGDA NETWORK TECHNOLOGY, INC. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2021	Aug. 10, 2021
Cover [Abstract]
Entity Registrant Name	Shengda Network Technology, Inc.
Entity Central Index Key	0001753931
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		14,009,945
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2021	Jun. 30, 2020
Current Assets
Cash and cash equivalents	$ 317,090	$ 4,271,326
Account receivable	3,537,706
Advance to suppliers	634,353
Loan receivable	8,242,010
Prepaid expense	675	4,129
Total Current Assets	12,731,834	4,275,455
Right of use asset - operating	3,683
Property And Equipment, Net	71,251
Total Assets	12,806,768	4,275,455
Current Liabilities
Accounts payable	172,377	47,085
Related party loans	19,974	19,974
Accrued expenses and other payables	85,140	26,416
Tax payable	276,511	2,526
Advances and deposits	30,526	3,972,500
Advances and deposits - related party	2,000	302,000
Operating lease liabilities	4,636
Other payable - related party		1,330
Total Liabilities	591,164	4,371,831
Stockholders' Equity (deficit)
Preferred Stock, $0.001 par value, 20,000,000 shares authorized;
Common Stock, $0.001 par value, 1,000,000,000 shares authorized;14,009,945 and 6,960,000 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively	14,010	6,960
Additional paid-in capital	10,513,985	16,310
Retained earnings (Accumulated loss)	944,920	(80,130)
Accumulated other comprehensive income (loss)	742,690	(39,516)
Total Stockholders' Equity (Deficit)	12,215,605	(96,376)
Total Liabilities and Stockholders' Equity	$ 12,806,768	$ 4,275,455

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2021	Jun. 30, 2020
Statement of Financial Position [Abstract]
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	20,000,000	20,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	14,009,945	6,960,000
Common stock, shares outstanding	14,009,945	6,960,000

XML

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenue	$ 765,616		$ 8,499,788
Cost of Revenue	659,003		6,969,140
Gross Profit	106,613		1,530,648
Expenses
Professional expenses	20,789	27,445	55,464	44,697
General and administrative expenses	32,880	858	93,045	995
Total expenses	53,669	28,303	148,509	45,692
Income (loss) from operations	52,944	(28,303)	1,382,139	(45,692)
Other income (expense)
Interest expense	(56)		(56)
Interest income	395		20,808
Other expense	(33)		(33)
Bank charges	(88)		(800)
Other income, net	218		19,919
Income (loss) before income taxes	53,162	(28,303)	1,402,058	(45,692)
Income Tax Expense	7,955		377,008
Net income (loss) after tax	45,207	(28,303)	1,025,050	(45,692)
Other comprehensive income
Foreign currency translation gain	(63,276)		782,206
Total Comprehensive (Loss) income	$ (18,069)	$ (28,303)	$ 1,807,256	$ (45,692)
Basic and diluted net income (loss) per common share	$ 0	$ (0.00)	$ 0.09	$ (0.01)
Weighted-average number of common shared outstanding	14,009,945	6,960,000	10,793,729	6,960,000

XML

Condensed Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Total
Beginning balance at Jun. 30, 2019	$ 6,960	$ 17,640	$ (23,127)		$ 1,473
Beginning balance, shares at Jun. 30, 2019	6,960,000
Net income (loss)			(45,692)		(45,692)
Foreign currency translation adjustment
Ending balance at Mar. 31, 2020	$ 6,960	17,640	(68,819)		(44,219)
Ending balance, shares at Mar. 31, 2020	6,960,000
Beginning balance at Dec. 31, 2019	$ 6,960	17,640	(40,516)		(15,916)
Beginning balance, shares at Dec. 31, 2019	6,960,000
Net income (loss)			(28,303)		(28,303)
Foreign currency translation adjustment
Ending balance at Mar. 31, 2020	$ 6,960	17,640	(68,819)		(44,219)
Ending balance, shares at Mar. 31, 2020	6,960,000
Beginning balance at Jun. 30, 2020	$ 6,960	16,310	(80,130)	(39,516)	(96,376)
Beginning balance, shares at Jun. 30, 2020	6,960,000
Issuance of common shares for cash	$ 7,050	10,497,675			10,504,725
Issuance of common shares for cash, shares	7,049,945
Net income (loss)			1,025,050		1,025,050
Foreign currency translation adjustment				782,206	782,206
Ending balance at Mar. 31, 2021	$ 14,010	10,513,985	944,920	742,690	12,215,605
Ending balance, shares at Mar. 31, 2021	14,009,945
Beginning balance at Dec. 31, 2020	$ 14,010	10,513,985	899,713	805,966	12,233,674
Beginning balance, shares at Dec. 31, 2020	14,009,945
Net income (loss)			45,207		45,207
Foreign currency translation adjustment				(63,276)	(63,276)
Ending balance at Mar. 31, 2021	$ 14,010	$ 10,513,985	$ 944,920	$ 742,690	$ 12,215,605
Ending balance, shares at Mar. 31, 2021	14,009,945

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 1,025,050	$ (45,692)
Adjustments to reconcile net cash used in operating activities
Depreciation and amortization	8,215	0
Changes in Operating Assets and Liabilities:
Account receivable	(3,470,436)
Advance to suppliers	(622,291)
Prepaid expenses	3,623	(918)
Accounts payable	122,015	16,059
Accrued expenses and other payables	58,442	9,467
Tax payable	268,581
Advances and deposits	29,945
Other payable - Related party	(1,330)
Net cash used in operating activities	(2,578,186)	(21,084)
CASH FLOWS FROM INVESTING ACTIVITIES
Loan receivable	(8,085,285)
Acquisition of plant and equipment	(77,234)
Net cash used in investing activities	(8,162,519)
CASH FLOWS FROM FINANCING ACTIVITIES
Related party loan		5,000
Proceeds for sales of common stock to related party	2,000
Proceeds for sales of common stock	6,230,225
Net cash provided by financing activities	6,232,225	5,000
Effect of exchange rate fluctuation on cash and cash equivalents	554,244
Net decrease in cash	(3,954,236)	(16,084)
Cash, beginning of period	4,271,326	17,202
Cash, end of period	317,090	1,118
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for: Income tax
Cash paid during the period for: Interest

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Organization and Operations and Going Concern

9 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Operations, and Going Concern

Note 1 – Organization and Operations, and Going Concern

Shengda Network Technology, Inc. (formerly known as “Soltrest, Inc.” or the “Company”), was incorporated on March 14, 2018 under the laws of the State of Nevada. The Company’s principal business is the development of internet and personal computer security software products. The Company is engaged in E- Commerce business.

On April 20, 2020, the Company purchased 10,000 shares of common stock of Peaker International Trade Group Limited (“Peaker”) for a total consideration of $1,330. These shares comprised of 100% of the then issued and outstanding shares of common stock of Peaker. Peaker was formed in 2018 in Hong Kong.

On May 15, 2020, Peaker set up a Company Zhejiang Jingmai Electronic Commerce Ltd., in China of which, Peaker is the sole shareholder.

Risk and Uncertainty Concerning COVID-19 Pandemic

In December 2019, an outbreak of a novel strain of coronavirus (COVID-19). On March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. The Company is currently monitoring the outbreak of COVID-19 and the related business and travel restrictions and changes to behavior intended to reduce its spread. While the Company’s operations are principally located outside the United States, we utilize various consultants located in the United States, we participate in a global supply chain, and the existence of a worldwide pandemic, the fear associated with COVID-19, or any, pandemic, and the reactions of governments around the world in response to COVID-19, or any, pandemic, to regulate the flow of labor and products and impede the travel of personnel, may impact our ability to conduct normal business operations, which could adversely affect our results of operations and liquidity. Disruptions to our supply chain and business operations, or to our suppliers’ or customers’ supply chains and business operations, could include disruptions from the closure of supplier and manufacturer facilities, interruptions in the supply of raw materials and components, personnel absences, or restrictions on the shipment of our or our suppliers’ or customers’ products, any of which could have adverse ripple effects on our manufacturing output and delivery schedule. Any of these uncertainties could have a material adverse effect on our business, financial condition or results of operations.

Going Concern

The Company demonstrates adverse conditions that raise substantial doubt about the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to sell its stock to the investing community and obtain necessary financing to continue operations, and the attainment of profitable operations. Although the Company recorded a net income of $1,025,050 for the nine months ended March 31, 2021, it has used net cash flows in operating activities of $2,578,186, and has a net decrease in cash of $3,954,236 for the nine months ended March 31, 2021. These factors, among others, raise a substantial doubt regarding the Company’s ability to continue as a going concern. If the Company is unable to obtain adequate capital, it could be forced to cease operations. The interim condensed consolidated financial statements do not include any adjustments to reflect the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

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Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements included herein have been prepared by Shengda Network Technology Inc. and Subsidiaries, including its consolidated subsidiaries, the “Company”, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2020, filed with the SEC on November 13, 2020.

The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets; (2) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Peaker International Trade Group Limited or “Peaker” and Peaker’s wholly owned subsidiary Zhejiang Jingmai Electronic Commerce Ltd., in China. All significant inter-company accounts and transactions have been eliminated in consolidation.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash deposited with banks. Substantially all of the Company’s cash is held in bank accounts in the PRC and is not protected by FDIC insurance or any other similar insurance.

The Company’s bank account in the United States is protected by FDIC insurance. As of March 31, 2021 and June 30, 2020, the Company’s bank account in the United States had no balances exceeding FDIC insurance of $250,000.

The Company’s bank account in PRC is protected by FSD insurance. As of March 31, 2021 and June 30, 2020, the Company’s bank account in PRC had $237,894 and $4,269,349, respectively, exceeding FSD insurance of RMB 500,000 as of March 31, 2021.

Major Customer

The Company has one major customer that accounted for 62% of revenues totaling $5,233,559 for the nine months ended March 31, 2021. The Company has one major customer that accounted for 19% of revenues totaling $145,293 for the three months ended March 31, 2021.

Major Vendor

The Company has two major vendors that accounted for 100% of purchase amount totaling $6,958,811 for the nine months ended March 31, 2021. The Company has one major vendor that accounted for 100% of purchase amount totaling $658,856 for the three months ended March 31, 2021.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents.

Revenue Recognition

The company is engaged in generating revenue through online networking sales, Shengda Network Technology is neither involved in production nor hold any inventory. The company mainly sells products to enhance immunity and bedding to prevent mites, help sleep and resist bacteria.

The Company recognizes revenues when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In that determination, under ASC 606, the Company follows a five-step model that includes: (1) determination of whether a contract, an agreement between two or more parties that creates legally enforceable rights and obligations, exists; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when (or as) the performance obligation is satisfied.

Accounts Receivable

Accounts receivable are generated primarily through sales to customers and are stated at invoiced amount, net of an allowance for doubtful accounts and bear no interest. A provision for doubtful accounts is determined based on a specific review of outstanding customer balances and historical customer write-off amounts and is charged to operations at the time management determines these accounts may become uncollectible.

The Company establishes an individualized credit and collection policy based on each individual customer’s credit history. The Company does not have a uniform policy that applies equally to all customers. The collection period usually ranges from three months to twelve months. The Company grants extended payment terms only when the Company believes that the payment will be collectible at the end of the term. The Company grants extended payment terms to customers based on the following factors: (a) whether or not the Company views a real need, from the customer’s perspective, for the extension and (b) how critical the Company’s relationship with the customer and is the customer the Company’s long-term business.

The Company reviews the accounts receivable on a periodic basis and based on its reviews, the Company recorded allowance for doubtful accounts of $0 and $0 as of March 31, 2021 and June 30, 2020, respectively and recorded bad debt expense of $0 and $0 for the nine months ended March 31, 2021 and 2020.

Fair Value Measurements

The Company has established a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:

● Level 1 – inputs are based upon unadjusted quoted prices for identical instruments in active markets.

● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

● Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.

Our other current financial assets and current financial liabilities have fair values that approximate their carrying values.

Property and Equipment

Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:

Items	Useful life
Vehicles	5 years

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the statement of income in other income and expenses.

Leases

The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of March 31, 2021, the Company did not have any finance lease.

Similar to other long-lived assets, right-of-use assets are tested for impairment when events or conditions indicate that the carrying value of an asset may not be fully recoverable from future cash flows. See Note 5, “Leases,” for additional information.

Commitment and Contingencies

In next one year, the Company will pay operating lease costs of $4,762.

Income Tax

Income tax returns are filed in federal, state, local and foreign jurisdictions as applicable. Provisions for current income tax liabilities are calculated and accrued on income and expense amounts expected to be included in the income tax returns for the current year. Income taxes reported in earnings also include deferred income tax provisions and provisions for uncertain tax positions.

Deferred income tax assets and liabilities are computed on differences between the financial statement bases and tax bases of assets and liabilities at the enacted tax rates. Changes in deferred income tax assets and liabilities associated with components of other comprehensive income are charged or credited directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. The effect on deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets when realization is less than more likely than not.

Liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions, in our judgment, do not meet a more-likely-than-not threshold based on the technical merits of the positions. Additionally, liabilities may be established for uncertain tax positions when, in our judgment, the more-likely-than-not threshold is met, but the position does not rise to the level of highly certain based upon the technical merits of the position. Estimated interest and penalties related to uncertain tax positions are included as a component of income tax expense.

Currency Translation

The assets and liabilities of the Company’s subsidiaries outside the U.S. are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates, primarily from RMB. Income and expense items are translated at the average exchange rates prevailing during the period. Gains and losses resulting from currency transactions are recognized currently in income and those resulting from translation of consolidated financial statements are included in accumulated other comprehensive income (loss).

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Loan Receivable

9 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Loan Receivable

Note 3 - Loan Receivable

Loan receivable amounted $8,242,010 and $0 as of March 31, 2021 and June 30, 2020, respectively. On October 25, 2020, the Company signed an agreement with the Company’s major customer. The Company agreed to loan the $9,157,789 (RMB60,000,000) at an annual interest rate of 7.2%. The actual loan amount shall prevail within the total amount. The loan is guaranteed by the Company’s supplier and due on October 25, 2021. The Borrower is required to pay all the principal and the relevant interest in full amount on the repayment date.

The Company assessed the implication on Revenue Recognition, ASC 606 and determined that the terms of the loan are at the fair market value and does not impact the revenue recognition of the Company.

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Property and Equipment

9 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 4 – Property and Equipment

As of March 31, 2021 and June 30, 2020, the Company had gross property and equipment of $78,731 and $0 and accumulated depreciation of $7,480 and $0, respectively. Property and equipment consisted of the vehicles. For the three months ended March 31, 2021 and 2020, and for the nine months ended March 31, 2021 and 2020, depreciation and amortization expenses amounted to $8,215 and $0, respectively.

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Leases

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

Note 5 – Leases

The Company has an operating lease for the rental of office space. Rent expense for the operating lease for the three and months ended March 31, 2021 and 2020, was $0, respectively, and for nine months ended March 31, 2021 and 2020, rent expense was $3,369 and $0, respectively. The Company had paid rent up until December 10, 2020, the did not renew this lease.

On January 5, 2021, Zhejiang Jingmai Electronic Commerce Ltd. leases new office in Zhejiang, China. The lease term of the office space is from January 5, 2021 to April 5, 2022, and the rent-free period is from January 5, 2021 to April 5, 2021. The monthly rent is approximately $397 (RMB 2,600). The operating lease is listed as separate line item on the Company’s condensed consolidated financial statements and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are also listed as a separate line item on the Company’s condensed consolidated financial statements.

Operating lease right-of-use assets and liabilities commencing after January 1, 2021 are recognized at commencement date based on the present value of lease payments over the lease term. For the nine months ended March 31, 2021, the Company recognized approximately $934 in total operating lease costs.

Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments.

Information related to the Company’s operating ROU assets and related lease liabilities are as follows:

	Nine Months ended March 31, 2021
Cash paid for operating lease liabilities	$	-
Weighted-average remaining lease term		1.0
Weighted-average discount rate		5	%
Minimum future lease payments	$	4,636

The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending March 31:

2022	$	4,762
2023		-
2024		-
2025		-
2026 and thereafter		-
Total undiscounted lease liabilities		4,762
Less: Amount representing interest		(126	)
Total present value of minimum lease payments	$	4,636

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Advances and Deposits

9 Months Ended

Mar. 31, 2021

Advances And Deposits

Advances and Deposits

Note 6 – Advances and Deposits

Advances and deposits amounted to $32,526 and $4,274,500, as of March 31, 2021 and June 30, 2020, respectively, of which $2,000 and $302,000 pertains to a related party (See Note 9).

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Accrued Expenses and Other Payables

9 Months Ended

Mar. 31, 2021

Payables and Accruals [Abstract]

Accrued Expenses and Other Payables

Note 7 – Accrued Expenses and Other Payables

As of March 31, 2021 and June 30, 2020, accrued expenses and other payables amounted to $85,140 and $26,416, respectively. Other payable as of June 30, 2020 had $1,330 payable to related party (See Note 9). In September 2020, $1,330 payable to related party has been repaid.

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Stockholders' Equity

9 Months Ended

Mar. 31, 2021

Equity [Abstract]

Stockholders' Equity

Note 8 – Stockholders’ Equity

Shares Authorized

On March 30, 2020, the Company filed a Certificate of Amendment with the State of Nevada, increasing the number of authorized shares to 1,020,000,000 par value $0.001; comprising of 1,000,000,000 of common stock and 20,000,000 of preferred stock.

Common Stock

On March 14, 2018 the Company exchanged 5,000,000 shares of common stock to the former President in return of her services valued at $5,000.

Pursuant to a Form S-1 Registration Statement, in June, 2020, the Company sold 1,960,000 shares of Common Stock, par value of $0.001 per share, for the total aggregate proceeds of $19,600.

On November 2, 2020, the Company issued 7,049,945 shares of common stock at the sale price range from $0.06 to $2 per share, to 436 unrelated and one related party.

As a result of all common stock issuances, the total issued and outstanding shares of common stock were 14,009,945 shares and 6,960,000 shares as of March 31, 2021 and June 30, 2020, respectively.

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Related Party Transactions

9 Months Ended

Mar. 31, 2021

Related Party Transactions [Abstract]

Related Party Transactions

Note 9 – Related Party Transactions

Related parties with whom the Company had transactions are:

Related Parties	Relationship
HangJin Chen	President/CEO/CFO/Secretary/Director
Youcheng Chen	Father of CEO HangJin Chen
Li Weiwei	President/CEO/CFO/Secretary/Director (Former)

On June 16, 2020, the Company issued 300,000 shares of common stock to a related party (the Company’s CEO’s father) at $1.00 per share which was subsequently cancelled on June 30, 2020. The consideration of $300,000 is recorded as advances and deposits under current liabilities in the consolidated balance sheets. On November 2, 2020, 300,000 shares of common stock were issued.

On June 20, 2020, the Company issued 10,000,000 shares of common stock to HangJin Chen, the Company’s CEO at $0.0002 per share which were subsequently cancelled on June 30, 2020. The consideration of $2,000 is recorded as advances and deposits under current liabilities in the consolidated balance sheets.

On July 1, 2020, the Company received a deposit of $2,000 from a related party Youcheng Chen. This deposit is recorded as advances and deposits under current liabilities. On November 2, 2020, the Company issued 33,333 shares of common stock at the sale price $0.06 per share to a related party Youcheng Chen.

Loan from related party represent the advances to the Company by former President and Director in the amount of $19,974 as of March 31, 2021 and June 30, 2020, respectively. The loan is unsecured, non-interest bearing and due on demand. The Company has not recorded any imputed interest expense for the nine months ended March 31, 2021 and 2020.

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Subsequent Events

9 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 10 – Subsequent Events

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to March 31, 2021 to the date these condensed consolidated financial statements were available to be issued and has determined that there were no significant subsequent events or transactions that would require recognition or disclosure in the consolidated financial statements.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited condensed consolidated financial statements included herein have been prepared by Shengda Network Technology Inc. and Subsidiaries, including its consolidated subsidiaries, the “Company”, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2020, filed with the SEC on November 13, 2020.

The unaudited condensed consolidated financial statements included herein reflect all adjustments (consisting of normal, recurring adjustments) which are, in the opinion of management, necessary to state fairly the results for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the fiscal year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (1) the reported amounts of assets; (2) liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and (3) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates

Principles of Consolidation

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Peaker International Trade Group Limited or “Peaker” and Peaker’s wholly owned subsidiary Zhejiang Jingmai Electronic Commerce Ltd., in China. All significant inter-company accounts and transactions have been eliminated in consolidation.

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash deposited with banks. Substantially all of the Company’s cash is held in bank accounts in the PRC and is not protected by FDIC insurance or any other similar insurance.

The Company’s bank account in the United States is protected by FDIC insurance. As of March 31, 2021 and June 30, 2020, the Company’s bank account in the United States had no balances exceeding FDIC insurance of $250,000.

The Company’s bank account in PRC is protected by FSD insurance. As of March 31, 2021 and June 30, 2020, the Company’s bank account in PRC had $237,894 and $4,269,349, respectively, exceeding FSD insurance of RMB 500,000 as of March 31, 2021.

Major Customer

The Company has one major customer that accounted for 62% of revenues totaling $5,233,559 for the nine months ended March 31, 2021. The Company has one major customer that accounted for 19% of revenues totaling $145,293 for the three months ended March 31, 2021.

Major Vendor

The Company has two major vendors that accounted for 100% of purchase amount totaling $6,958,811 for the nine months ended March 31, 2021. The Company has one major vendor that accounted for 100% of purchase amount totaling $658,856 for the three months ended March 31, 2021.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents.

Revenue Recognition

Revenue Recognition

The company is engaged in generating revenue through online networking sales, Shengda Network Technology is neither involved in production nor hold any inventory. The company mainly sells products to enhance immunity and bedding to prevent mites, help sleep and resist bacteria.

The Company recognizes revenues when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In that determination, under ASC 606, the Company follows a five-step model that includes: (1) determination of whether a contract, an agreement between two or more parties that creates legally enforceable rights and obligations, exists; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when (or as) the performance obligation is satisfied.

Accounts Receivable

Accounts Receivable

Accounts receivable are generated primarily through sales to customers and are stated at invoiced amount, net of an allowance for doubtful accounts and bear no interest. A provision for doubtful accounts is determined based on a specific review of outstanding customer balances and historical customer write-off amounts and is charged to operations at the time management determines these accounts may become uncollectible.

The Company establishes an individualized credit and collection policy based on each individual customer’s credit history. The Company does not have a uniform policy that applies equally to all customers. The collection period usually ranges from three months to twelve months. The Company grants extended payment terms only when the Company believes that the payment will be collectible at the end of the term. The Company grants extended payment terms to customers based on the following factors: (a) whether or not the Company views a real need, from the customer’s perspective, for the extension and (b) how critical the Company’s relationship with the customer and is the customer the Company’s long-term business.

The Company reviews the accounts receivable on a periodic basis and based on its reviews, the Company recorded allowance for doubtful accounts of $0 and $0 as of March 31, 2021 and June 30, 2020, respectively and recorded bad debt expense of $0 and $0 for the nine months ended March 31, 2021 and 2020.

Fair Value Measurements

Fair Value Measurements

The Company has established a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:

● Level 1 – inputs are based upon unadjusted quoted prices for identical instruments in active markets.

● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

● Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.

Our other current financial assets and current financial liabilities have fair values that approximate their carrying values.

Property and Equipment

Property and Equipment

Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:

Items	Useful life
Vehicles	5 years

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the statement of income in other income and expenses.

Leases

Leases

The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at commencement based on the present value of lease payments over the lease term. As the implicit rate is typically not readily determinable in the Company’s lease agreements, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and non-lease components as a single lease component for its identified asset classes. As of March 31, 2021, the Company did not have any finance lease.

Similar to other long-lived assets, right-of-use assets are tested for impairment when events or conditions indicate that the carrying value of an asset may not be fully recoverable from future cash flows. See Note 5, “Leases,” for additional information.

Commitment and Contingencies

Commitment and Contingencies

In next one year, the Company will pay operating lease costs of $4,762.

Income Tax

Income Tax

Income tax returns are filed in federal, state, local and foreign jurisdictions as applicable. Provisions for current income tax liabilities are calculated and accrued on income and expense amounts expected to be included in the income tax returns for the current year. Income taxes reported in earnings also include deferred income tax provisions and provisions for uncertain tax positions.

Deferred income tax assets and liabilities are computed on differences between the financial statement bases and tax bases of assets and liabilities at the enacted tax rates. Changes in deferred income tax assets and liabilities associated with components of other comprehensive income are charged or credited directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. The effect on deferred income tax assets and liabilities attributable to changes in enacted tax rates are charged or credited to income tax expense in the period of enactment. Valuation allowances are established for certain deferred tax assets when realization is less than more likely than not.

Liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions, in our judgment, do not meet a more-likely-than-not threshold based on the technical merits of the positions. Additionally, liabilities may be established for uncertain tax positions when, in our judgment, the more-likely-than-not threshold is met, but the position does not rise to the level of highly certain based upon the technical merits of the position. Estimated interest and penalties related to uncertain tax positions are included as a component of income tax expense.

Currency Translation

Currency Translation

The assets and liabilities of the Company’s subsidiaries outside the U.S. are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates, primarily from RMB. Income and expense items are translated at the average exchange rates prevailing during the period. Gains and losses resulting from currency transactions are recognized currently in income and those resulting from translation of consolidated financial statements are included in accumulated other comprehensive income (loss).

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Basis of Presentation and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Schedule of Estimated Useful Lives of Assets

Property and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:

Items	Useful life
Vehicles	5 years

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Leases (Tables)

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Schedule of Operating ROU assets and Lease Liabilities

Information related to the Company’s operating ROU assets and related lease liabilities are as follows:

	Nine Months ended March 31, 2021
Cash paid for operating lease liabilities	$	-
Weighted-average remaining lease term		1.0
Weighted-average discount rate		5	%
Minimum future lease payments	$	4,636

Schedule of Amortization of Lease Liabilities

The following table presents the amortization of the Company’s lease liabilities under ASC 842 for each of the following years ending March 31:

2022	$	4,762
2023		-
2024		-
2025		-
2026 and thereafter		-
Total undiscounted lease liabilities		4,762
Less: Amount representing interest		(126	)
Total present value of minimum lease payments	$	4,636

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Related Party Transactions (Tables)

9 Months Ended

Mar. 31, 2021

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

Related parties with whom the Company had transactions are:

Related Parties	Relationship
HangJin Chen	President/CEO/CFO/Secretary/Director
Youcheng Chen	Father of CEO HangJin Chen
Li Weiwei	President/CEO/CFO/Secretary/Director (Former)

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Organization and Operations and Going Concern (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 20, 2020	Jun. 30, 2020	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Entity incorporation date of incorporation					Mar. 14, 2018
Number of common stock purchased shares		1,960,000
Consideration of common stock		$ 19,600
Net income			$ 45,207	$ (28,303)	$ 1,025,050	$ (45,692)
Net cash flows in operating activities					(2,578,186)	(21,084)
Net decrease in cash					$ (3,954,236)	$ (16,084)
Peaker International Trade Group Limited [Member]
Number of common stock purchased shares	10,000
Consideration of common stock	$ 1,330
Shares purchased in transaction, percentage	100.00%

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Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative)	3 Months Ended		9 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2021 CNY (¥)	Jun. 30, 2020 USD ($)
Cash at FDIC insurance	$ 250,000		$ 250,000			$ 250,000
Cash at bank	237,894		237,894			4,269,349
Sales	765,616		8,499,788
Cost of sales	659,003		6,969,140
Allowance for doubtful accounts	$ 0		0			$ 0
Bad debt expense			0	$ 0
Operating lease costs			$ 4,762
Revenue [Member] | Customer Concentration Risk [Member] | One Major Customer [Member]
Concentrations of credit risk, percentage	19.00%		62.00%
Sales	$ 145,293		$ 5,233,559
Revenue [Member] | Supplier Concentration Risk [Member] | Two Major Vendors [Member]
Concentrations of credit risk, percentage			100.00%
Cost of sales			$ 6,958,811
Revenue [Member] | Supplier Concentration Risk [Member] | One Major Vendors [Member]
Concentrations of credit risk, percentage	100.00%
Cost of sales	$ 658,856
RMB [Member]
Cash FSD insured amount | ¥					¥ 500,000

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Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Assets (Details)	9 Months Ended
	Mar. 31, 2021
Vehicle [Member]
Useful life	5 years

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Loan Receivable (Details Narrative)	Oct. 25, 2020 USD ($)	Oct. 25, 2020 CNY (¥)	Mar. 31, 2021 USD ($)	Jun. 30, 2020 USD ($)
Loan Receivable			$ 8,242,010
Proceeds from loan	$ 9,157,789
Debt interest rate	7.20%	7.20%
Debt due date	Oct. 25, 2021	Oct. 25, 2021
RMB [Member]
Proceeds from loan | ¥		¥ 60,000,000

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Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Property and equipment, gross	$ 78,731		$ 78,731		$ 0
Accumulated depreciation	7,480		7,480		$ 0
Depreciation and amortization	$ 8,215	$ 0	$ 8,215	$ 0

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Leases (Details Narrative)			3 Months Ended		9 Months Ended
	Jan. 05, 2021 USD ($)	Jan. 05, 2021 CNY (¥)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)
Rental expense			$ 0	$ 0	$ 3,369	$ 0
Recognized operating lease costs					$ 934
Zhejiang Jingmai Electronic Commerce Ltd [Member]
Rental expense	$ 397
Operating lease description	The lease term of the office space is from January 5, 2021 to April 5, 2022, and the rent-free period is from January 5, 2021 to April 5, 2021	The lease term of the office space is from January 5, 2021 to April 5, 2022, and the rent-free period is from January 5, 2021 to April 5, 2021
Zhejiang Jingmai Electronic Commerce Ltd [Member] | RMB [Member]
Rental expense | ¥		¥ 2,600

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Leases - Schedule of Operating ROU Assets and Lease Liabilities (Details)	Mar. 31, 2021 USD ($)
Leases [Abstract]
Cash paid for operating lease liabilities
Weighted-average remaining lease term	1 year
Weighted-average discount rate	5.00%
Minimum future lease payments	$ 4,636

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Leases - Schedule of Amortization of Lease Liabilities (Details)	Mar. 31, 2021 USD ($)
Leases [Abstract]
2022	$ 4,762
2023
2024
2025
2026 and thereafter
Total undiscounted lease liabilities	4,762
Less: Amount representing interest	(126)
Total present value of minimum lease payments	$ 4,636

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Advances and Deposits (Details Narrative) - USD ($)	Mar. 31, 2021	Jun. 30, 2020
Advances And Deposits
Advances and deposits	$ 32,526	$ 4,274,500
Advances and deposits related party	$ 2,000	$ 302,000

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Accrued Expenses and Other Payables (Details Narrative) - USD ($)	1 Months Ended
	Sep. 30, 2020	Mar. 31, 2021	Jun. 30, 2020
Payables and Accruals [Abstract]
Accrued expenses and other payables		$ 85,140	$ 26,416
Other payable - Related party			$ 1,330
Repayment related party debt	$ 1,330

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Stockholders' Equity (Details Narrative) - USD ($)			1 Months Ended
	Nov. 02, 2020	Mar. 14, 2018	Jun. 30, 2020	Mar. 31, 2021	Mar. 30, 2020
Increasing the number of authorized stock					1,020,000,000
Number of authorized stock par value					$ 0.001
Common stock, shares authorized			1,000,000,000	1,000,000,000	1,000,000,000
Preferred stock, shares authorized			20,000,000	20,000,000	20,000,000
Number of common stock shares sold			1,960,000
Common stock, par value			$ 0.001	$ 0.001
Proceeds from sale of common stock			$ 19,600
Stock issued during period, shares, new issues	7,049,945
Common stock, shares issued			6,960,000	14,009,945
Common stock, shares outstanding			6,960,000	14,009,945
Unrelated And One Related Party [Member]
Stock issued during period, shares, new issues	436
Minimum [Member]
Share issued price per share	$ 0.06
Maximum [Member]
Share issued price per share	$ 2
President [Member]
Number of common stock issued for service, shares		5,000,000
Number of common stock issued for service		$ 5,000

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Related Party Transactions (Details Narrative) - USD ($)	Nov. 02, 2020	Nov. 02, 2020	Jun. 20, 2020	Jun. 16, 2020	Mar. 31, 2021	Jul. 02, 2020	Jun. 30, 2020
Advances and deposits under current liabilities					$ 2,000		$ 302,000
Stock Issued During Period, Shares, New Issues	7,049,945
President and Director [Member]
Related party loans					$ 19,974		$ 19,974
Youcheng Chin [Member]
Number of common stock cancelled				300,000
Share issued price per share	$ 0.06	$ 0.06		$ 1.00
Advances and deposits under current liabilities				$ 300,000
Stock Issued During Period, Shares, New Issues	33,333	300,000
Deposit						$ 2,000
HangJin Chin [Member] | CEO [Member]
Number of common stock cancelled			10,000,000
Share issued price per share			$ 0.0002
Advances and deposits under current liabilities			$ 2,000

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Related Party Transactions - Schedule of Related Party Transactions (Details)	9 Months Ended
	Mar. 31, 2021
HangJin Chin [Member]
Relationship with related parties	President/CEO/CFO/Secretary/Director
Youcheng Chin [Member]
Relationship with related parties	Father of CEO HangJin Chin
Li Weiwei [Member]
Relationship with related parties	President/CEO/CFO/Secretary/Director (Former)