Form 10QSB for CHINA YOUTV CORP.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like:
believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report. These forward-looking states are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.
Plan of Operation
We are a start-up, development stage company and have not yet generated or realized any revenues from our business activities. We were incorporated in the State of Nevada on May 18, 2005. Initially, we acquired the right to conduct exploration activities on one property, but we did not own the property. The property consists of one mineral claim containing 622 acres located in the Similkameen region of British Columbia, Canada. We had intended to explore for gold on the property. We haven't found any commercially viable mineral deposit, or a reserve, yet. We do not plan to have further exploration on this property.
On March 16, 2007, we signed a Definitive Agreement with HuaJu NetMedia to set up a Joint Venture in China and set foot in the Chinese Internet video sharing field. The formation of the Joint Venture is in process. According to the Agreement, we own 51% of the joint venture company and will provide the required working capital for the Joint Venture. HuaJu will be in charge of the daily operation of the Joint Venture. HuaJu has agreed to conduct its video sharing business only through the Joint Venture, and has agreed to contribute its web site, www.CnBoo.com and customer contracts to the Joint Venture.
www.CnBoo.com ("CnBoo") is the online video site belonging to the Joint Venture established by China YouTV Corp. and HuaJu. It is a video viewing site and social networking site that allows users to create their own profiles, post videos, and comment on each other's posts. The CnBoo web site is similar to YouTube (www.YouTube.com), the No. 1 online video site in operation. Within 2 years, CnBoo already has over 1.2 million members and over 2 million pieces of original digital video (DV) shorts.
To increase membership and CnBoo's brand name awareness, HuaJu has worked both on-line and off-line.
On-line: HuaJu has signed several agreements to enhance its on-line content, such as an agreement for CCTV's TV program "Exploring High and Low", an agreement with ManGoCity, a travel company, an agreement with Megadia to host a Humor channel on CnBoo web site, and the recently signed agreement with Music Nation and VVSky to add more music on its web site and the recent advertisement exchange agreement with 3g4a's subsidiary: Unlimited Chance Technology Development Co. Ltd.
Off-line: HuaJu has signed several agreements to promote its 3G space cards, such as the agreement with Gome Electrical Appliances Holding Ltd., the largest chain store operator of electrical appliances in China to distribute its 3G digital space cards to Gome customers; an agreement with HURRAY, a NASDAQ listed company, for the launch of 3G experience terminals in Gome's stores; an agreement with ManGoCity, and a promotion agreement with Z-Card. HuaJu also has exclusive right from AIDS Prevention Education Project for Chinese Youth to negotiate with investors to install LED displays in the colleges and universities across China. All LEDs will have HuaJu and CnBoo's logo on it.
The Company has shown increasing popularity as its CnBoo web sites has recently been ranked No.1 on Microsoft Live, No. 1 on Google China, No.7 on BaiDu, No.11 on Yahoo China and No.12 on Google China when searching for the keywords:
on-line video, and on-line video sharing web sites. The Company also has launched its new version for enhanced functionality.
The Company has changed its name to China YouTV this year to reflect its new business operations: the fast growing video sharing web site market in China.
Liquidity and Capital Resources
The Company had cash capital of $2,280 at September 30, 2007. The Company has no other capital resources other than the ability to use its common stock to achieve additional capital raising. Other than cash capital, its other assets would be illiquid.
As of September 30, 2007, it had $131,978 in current assets, consisting of $2,280 cash and $129,698 prepaid expenses, and current liabilities of $ 128,969, consisting of $48,849 accounts payable and accrued expenses and $80,120 due to related party.
As of September 30, 2007, our total assets were $131,978 and our total liabilities were $128,969.
We have no long-term debt as of September 30, 2007.