The following management discussion and analysis should be read in conjunction with the historical financial statements and related notes contained in this report. Management’s discussions and analysis contain forward-looking statements, such as statements of our plans, goals, expectations, and intentions. Any statement that is not a statement of historical facts is a forward-looking statement. When used, words such as "believe", "plan", "intend", "anticipate", "target", "estimate", "anticipate" and/or future tense or conditional structure ("will", "may", "Can", "should", etc.) or similar expressions determine certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties, which may cause actual results or events to be materially different from those expressed or implied in the forward-looking statements. Due to a variety of factors, the company's actual results and timing of events may differ materially from those anticipated in these forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect events or circumstances that occurred after the date of this report.

The following discussion focuses on the company’s operating performance and the main factors affecting our financial condition, as well as our liquidity and capital resources during the period mentioned, and provides information that management considers relevant to the evaluation and understanding of financial statements. The operations described here Conditions and results. The following discussion and analysis are based on the company’s unaudited financial statements included in this quarterly report, which we have prepared in accordance with US generally accepted accounting principles. You should read this discussion and analysis as well as such financial statements and related notes. Company Profile

Through our wholly-owned subsidiary, Sincerity Australia Pty Ltd. ("SAPL"), we mainly operate as distributors and distributors of applied materials (especially plastics), and we have an extensive network of high-quality suppliers in China, covering a wide range The basic and high-application polymer products range from general-purpose building materials to high-end breathable stretch films and antibacterial sheets. SAPL is headquartered in Melbourne, Australia and distributes to many larger distributors and end users, including Visy Industries (traded as Pratt Group America in the United States), which is one of the largest packaging and recycling groups in the world. SAPL’s business was started in 2009 by our Chairman, President and CEO James Zhang. He is (i) the son of the founder of Changzhou Xincheng Plastic Chemical Technology Co., Ltd. ("Xincheng China"), a company A mature plastics and application material manufacturer with 20 years of operating history, headquartered in Changzhou, China, and (ii) Shanghai Chengcheng Co., Ltd., a company located in Shanghai, China. Most of the products we purchase from Chengcheng China pass the The company purchases and sells to us. SAPL initially started operations by providing basic extruded plastic parts (molds, automotive interior parts, kitchen splash guards, etc.) to the Australian automotive, retail and construction industries. In 2015, SAPL began importing professional high-quality plastic pallets and films for fresh food packaging and distribution. The first major customer of this business is Propac Group, which is a leading supplier of plastic packaging materials for Coles, one of Australia's two major supermarket chains. In the past 3 years, SAPL has refocused its marketing efforts on large distributors and distributors in Australia. This has enabled SAPL to establish strong relationships with major industry players who are their own distributors and distributors. Buy its products online. The research and investment on the "breathability" of plastic film, a key issue of fresh food, has created a unique technology platform that can adjust the air circulation in packaged food according to the type of food. This has the effect of extending the shelf life, which is the key to establishing relationship indicators in the food retail industry. SAPL recently began supplying high-tech breathable plastic film to Visy Industries for packaging supply contracts signed between Visy Industries and another major player in the Australian supermarket industry.

At present, all of SAPL’s revenue comes from sales in the Australian market. However, due to the strong international influence of SAPL’s main customers (such as Visy, especially in the United States), plus the SAPL product series (breathable stretch film and antibacterial polymer products) , It is expected that SAPL products will be increasingly used in the global market.

SAPL will continue to further vertically integrate its product range. Value-added packaging technologies, such as breathable films and ventilated stretch films, are expected to provide innovative advantages in our competition. The rapid increase in demand for fresh fruit and vegetable packaging has been reflected in the increase in sales to Visy Industries, which will also enable SAPL to transfer these new products to the global market. SAPL provides a diversified product series for the Australian market, and product types provide a strong foundation for business growth. The value-added innovation of each product will enable SAPL to take it to the next level and expand beyond Australia. 17

SAPL is growing rapidly. As a listed company, it is at a loss and needs more working capital to achieve stronger growth.

SAPL’s flagship product line in ventilated packaging is in the final stage of commercial production and is expected to disrupt the fresh packaging market with strong performance and competitive prices.

Three months ending September 30, 2021, nine months ending September 30, 2021 2020 2021 2020 $ $ $ $ notes (unaudited) (unaudited) (unaudited) (unaudited) Revenue sales 17,447 93,280 63,479 398,082 Cost of sales (17,682) 109,702) (21,150) (324,544) Gross profit (235) (16,421) 42,330 73,539 Depreciation and amortization of operating expenses 2,179

2,121 6,755 6,021 Sales, general and administrative expenses 14,363 5,176 19,726 1,892 Staff expenses----Professional service fees 25,442 98 61,937 36,968 Dispute resolution---, 84,89 4,89 40,879

Operating income/(loss) (42,219) (23,815) (46,088) 32,441 Other income/(expense) Other income 14,700 15,029 29,541 38,498 Interest expense (1,468) (1,50) (1,50) (1,45 Foreign currency transaction losses ) (1,45)) (3,412) 4,096 (8,502) (725) Other total income/(expense) 9,820 17,696) 16,456 33,623) Loss from continuing operations before income tax expenses (32,399) (6,116) 32 (6,116) 32 (6,116 ) Expense income 32 (6) 4,870 1,593 (1,047) (22,412) Net income/(loss) after deducting income tax expenses for the current period (27,529) (4,526) (30,679) 43,652 Other comprehensive income/(loss) arising from translation of overseas operations Foreign exchange difference 9 (4,909) 38,732) Other comprehensive income/(loss) 4,982 9,009 14,235 (38,732) Total comprehensive income/(loss) for the period (22,547) 4,483 (16,444) 4,920 Net (loss)/earnings-average-per share Basic and diluted income The number of ordinary shares outstanding and diluted 73,590,730

Revenue for the three months ended September 30, 2021 was $17,000, while revenue for the three months ended September 30, 2020 was $93,000, a decrease of $76,000. Due to the impact of COVID-19 on the level of economic activity imposed by Australia, sales levels have dropped significantly compared to the same period last year.

Sales, general and administrative expenses

Sales, general and administrative expenses for the three months ended September 30, 2021 were USD 14,000, compared to USD 5,000 for the three months ended September 30, 2020. Subscription fee and filing fee. Staff expenses

For the three months ended September 30, 2021, no employee expenses were incurred.

Professional Service Fees The professional service fee for the three months ended September 30, 2021 is USD 25,000, which is the lowest amount incurred for the three months ended September 30, 2020. The increase can be attributed to the time spent incurring professional service fees, depending on the need to hire consultants. Other income and expenditure

The increase in other income and expenditure is due to the financial assistance from the Australian government that companies have received in response to the impact of COVID-19.

On September 30, 2021, the company had a current asset loss of 71,861 yuan and a net asset of 79,811 yuan (current asset loss of 40,846 yuan and a net asset surplus of 51,033 yuan on December 31, 2020). The company reported an after-tax loss of US$30,679 for the nine months ended September 30, 2021 (after-tax income on September 30, 2020: US$43,652).

The main purpose of our cash is for operations. The main source of cash is to sell our products to customers.

The company believes that the cash flow generated from operations will be sufficient to maintain its current operating level for at least the next three months.

As of September 30, 2021, we have approximately US$5,000 in cash and cash equivalents, which may not be enough to meet our operational and capital needs in the short term. The company has been seeking funding from various sources, as described below:

(i) The company has the ability to raise funds through private placement

(2) The company streamlines operations and streamlines operations

Expenses; (iii) Apply to the Australian government for financial assistance that can be used for businesses affected by COVID-19. 19 In the nine months ended September 30, 2021, the net cash provided by operating activities mainly reflected approximately US$38,000 in operating income, of which the changes in operating assets and liabilities were approximately US$54,000, which was replaced by approximately US$9,000 in non-cash Project and amortization offset and depreciation of approximately $7,000 which has no effect on cash flow.

For the nine months ended September 30, 2021 and September 30, 2020, the net cash used in investment activities was approximately zero and zero dollars, respectively.

The net cash used for financing activities for the nine months ended September 30, 2021 was approximately US$43,000, while the net cash used for financing activities for the nine months ended September 30, 2020 was US$144,000. Financial lease liabilities and advances to related parties.

Key accounting estimates and judgments

The directors’ estimates and judgments are incorporated into the financial statements based on historical knowledge and current best available information. The estimation assumes reasonable expectations of future events, and is obtained from outside and inside the company based on current trends and economic data. Main estimate (i) Service life

The company determines the estimated useful life and related depreciation and amortization expenses of its property and equipment and intangible assets with limited useful lives. Due to technological innovation or some other events, the service life may undergo major changes. Depreciation and amortization expenses will increase when the useful life is less than the previous estimated life, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. (ii) Income tax The company is subject to income tax in the jurisdiction in which it operates. Significant judgments are required when determining income tax provisions. Many transactions and calculated final tax determinations in the daily business process are uncertain. The company recognizes the liabilities for anticipated tax audit issues based on the company's current understanding of the tax law. If the final tax result of these matters is different from the book value, the difference will affect the current and deferred tax provisions during the period when these decisions are made. Key judgment

(i) Provision for impairment of accounts receivable

A certain degree of estimation and judgment is required to assess the provision for impairment of accounts receivable. The level of provision is assessed after taking into account recent sales experience, the aging of accounts receivable, past collection rates and specific understanding of individual debtors’ financial conditions.

There was no sign of impairment on the company's assessment report date, so no impairment test was carried out.

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