ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

As used herein and except as otherwise noted, the term "Company", "it(s)", "our", "us", "we" and "mLight" shall mean mLight Tech, Inc., a Florida corporation, and its consolidated subsidiary.

This Form 10-Q contains forward-looking statements. Our actual results could differ materially from those set forth as a result of general economic conditions and changes in the assumptions used in making such forward-looking statements. The following discussion and analysis of our financial condition and results of operations should be read together with the audited financial statements and accompanying notes and the other financial information appearing in the 2016 Annual Report filed with the Securities and Exchange Commission on January 13, 2017 and elsewhere in this report. The analysis set forth below is provided pursuant to applicable Securities and Exchange Commission regulations and is not intended to serve as a basis for projections of future events.

Overview of the Business

On March 31, 2017, we entered into a spin-off agreement (the “Spin-Off Agreement”) with Ding King Training Institute, Inc., our previously wholly owned subsidiary and a company incorporated pursuant to the laws of California (“DKTI”), and Todd Sudeck (“Mr. Sudeck”). Pursuant to the Spin-Off Agreement, Mr. Sudeck shall receive all of the issued and outstanding capital stock of DKTI in exchange for 2,500,000 shares of common stock, par value $0.0001 per share (the “Common Stock”) of the Company (the “Shares”) owned by Mr. Sudeck (the “Spin-Off”). Immediately after the closing of the Spin-Off, Mr. Sudeck becomes the sole equity owner of DKTI and the Company has no further interest in DKTI.

Before the Spin-off, we, through DKTI, were in the business of training individuals for a career as a technician in the automotive appearance industry, which includes paint less dent repair, interior restoration, windshield repair, window detailing, odor removal, detailing and alloy wheel repair. The potential students are employees of auto body shops, car rental companies and car dealers as well as entrepreneurs looking to start their own businesses. DKTI is a California State Licensed Vocational School with the Bureau for Private Post-Secondary Education (BPPE #301591) and authorized to sell business opportunities in the automotive appearance training industry.

For the six months ended March 31, 2017, 191 students graduated from DKTI with completion of 237 courses, as compared to 162 students graduated with the completion of 190 courses in the comparative period of 2016. DKTI offers its training courses at its corporate headquarters located in Costa Mesa, California, and at six satellite-training locations in the states of Colorado, Texas, Missouri, New Jersey, South Carolina and Long Island, New York. No online classes have been offered by DKTI. DKTI currently has five (5) non-employee instructors who teach the courses offered by DKTI on an as needed basis depending upon the demand for the courses.

DKTI offers the following courses at the tuition rates include a $75 registration fee and all tools and equipment necessary, where applicable:

On March 31, 2017, Mr. Sudeck entered into a securities purchase agreement (the “SPA”) with certain purchasers listed in the Exhibit A of the SPA (the “Purchasers”) pursuant to which the Purchasers acquired 180,000,000 shares of Common Stock from Mr. Sudeck for an aggregate purchase price of $325,000 (the “Share Purchase”).The 180,000,000 shares represented approximately 88.24% of issued and outstanding Common Stock of the Company as the date thereof. The transaction resulted in a change in control of the Company.

In connection with the change in control, Mr. Sudeck, the former President, former Chief Executive Officer, former Chief Financial Officer, former Secretary and the former director resigned from all his positions with the Company. Simultaneously, Mr. Huibin Su was appointed as the Company’s Chief Executive Officer, Chief Financial Officer and a director of the Board, Mr. Jiyin Li was appointed as the Chairman of the Board, and Zizhong Huang was appointed as the Company’s Chief Operating Officer, all effective immediately.

Mr. Li, age 30, has served as the Chairman of Shenzhen Chuangxiang Network Technology Co., Ltd, a company that engages in the development of mobile and internet software products. From August 2015 to June 2016, he was also the CEO of Shenzhen Chuangxiang Network Technology Co. Ltd. From October 2012 to June 2015, he served as the Deputy General Manager of Shenzhen E-Life Technology Co., Ltd., a technology company that develops mobile applications and online games. Mr. Li obtained his Bachelor of Art in business management from Huanghe Science &Technology College.

Mr. Li does not have any family relationship with any director or executive officer of the Company and has not been involved in any transaction with the Company during the past two years that would require disclosure under Item 404(a) of Regulation S-K.

Mr. Su, age 37, has served as the CEO and CFO of Shenzhen Chuangxiang Network Technology Co., Ltd since June 2016. From January 2015 to May 2016, he served as the CFO of Guangzhou Honghuayuan Investments Limited, an investment company that specializes in real estate related investments and fund management. From January 2012 to February 2014, he served as the CFO of Guangzhou Wancai Group Limited, a real estate and tourism development company. From August 2002 to December 2011, he served as the Finance Supervisor of Guangzhou Pharmaceutical Holdings Limited, a pharmaceutical wholesaler and distribution company. Mr. Su obtained his Master Degree in Business Administration from Sun Yat-Sen University.

Mr. Su does not have any family relationship with any director or executive officer of the Company and has not been involved in any transaction with the Company during the past two years that would require disclosure under Item 404(a) of Regulation S-K.

Mr. Huang, age 28, has served as the COO of Shenzhen Chuangxiang Network Technology Co., Ltd since July 2016. From January 2015 to June 2016, Mr. Li was the co-founder and COO of Dongguan Houhai Asset Management Co., Ltd., an investment company that specializes in equity investments and private fund management. From July 2012 to December 2014, he served as the business manager of Dongguan Rural Commercial Bank. Mr. Huang obtained his Bachelor in business administration from South China Agricultural University.

Mr. Huang does not have any family relationship with any director or executive officer of the Company and has not been involved in any transaction with the Company during the past two years that would require disclosure under Item 404(a) of Regulation S-K.

On April 19, 2017, we entered into a securities purchase agreement (the “Debenture Purchase Agreement”) pursuant to which the Company issued and sold in a private placement to a non-U.S. persona series A convertible debenture in an aggregate principal amount of $150,000 (the “Debenture”) with a 8% annual interest convertible into shares of Common Stock at price of $.01 per share to the Purchaser.

On the same day, we entered into a note conversion agreement (the “Conversion Agreement”) with three note holders (the “Converters”) to convert the promissory notes issued pursuant to them pursuant to the Spin-Off Agreement into shares of Common Stock.Pursuant to the Conversion Agreement, the entire principal amount of the Notes was converted into shares of Common Stock at a conversion price of $.01 per share, for an aggregate number of 13,300,000 shares (the “Note Conversion”). Pursuant to the Conversion Agreement, all the Converters agree to waive their rights to receive the payment of accrued and outstanding interest under the promissory notes as of the date of the Conversion Agreement.

Financial Operations Overview

Results of Operations for the three and six months ended March 31, 2017.

The consolidated results of operations for the three and six months ended March 31, 2017 and 2016 included the results of operations of DKTI and mLight Tech.

Revenues for the three months ended March 31, 2017 and 2016were $731,700 and 613,810, respectively. Revenues primarily comprised of training courses and tools and accessories offered to the students and licensing income earned by marketing online trade name and shopping cart. Revenues for the three months increased in 2017 by $117,900 or 19% primarily due to the increase in student enrollments and training course completions during the three months ended March 31, 2017 as compared to the same period in 2016. Our online marketing presence was increased during the three months ended March 31, 2017 because of our pay per click advertising on Google and an increase in search engine optimization marketing which caused the quantity of leads to increase. Additionally, we hadmore students add on additional training packages to their core PDR Training program which contributed to the increase in sales. We offer PDR Training in Missouri, South Carolina, New York, New Jersey, Colorado and Texas to generate more mid-west customers who are able to drive to school and avoid the inconvenience of airports and other travel related expenses. During the three months ended March 31, 2017, 112 students graduated who were enrolled in 140 training courses as compared to 99 students graduated enrolling in 115 courses in the same comparable period in 2016. As a result, the Company recorded $373,787 in revenues earned from training courses completed in 2017 and $352,203 from the sale of tools and accessories as compared to $422,579 in revenues earned from training courses completed and $188,544 from the sale of tools and accessories for the comparable period in 2016. The Company recorded $0 in licensing income for the three months ended March 31, 2017and 2016. The Company also offered additional training courses in 2017 and 2016 which also helped in increasing enrollment of students resulting in an increase in training revenues. In addition, the Company recorded $5,710 in shipping income for the three months ended March 31, 2017 compared to $0 in shipping income for the comparative period in 2016.

Revenues for the six months ended March 31, 2017 and 2016 were $1,395,161 and $1,178,480, respectively. Revenues increased for the six months ended March 31, 2017 by $216,681 or 18% primarily due to the increase in students' enrollment (191 students) and training course completions (237 courses) in 2017 as compared to 2016. The Company recorded $786,980 in revenues earned from training courses completed and $594,892 from sale of tools and accessories in six months ended March 31, 2017 as compared to $785,280 in revenues earned from training courses completed and $366,763 from sale of tools and accessories for the comparable period in 2016. The Company recorded $0 in licensing income for the six months ended March 31, 2017 as compared to $23,750 in licensing income for the comparable period in 2016. The Company also offered additional training courses in 2017 and 2016 which also helped in increasing enrollment of students resulting in an increase in training revenues. The Company also recorded $13,289 in shipping income for the six months ended March 31, 2017, compared to $0 in shipping income for the six months ended March 31, 2016.

Cost of sales for the three months ended March 31, 2017 and 2016was $316,008 and $302,751, respectively. Cost of sales as a percentage of tuition revenue was 44% for 2017 and 48% for 2016. The Company offered discounted pricing for additional courses to students in both 2017 and 2016, and increased the number of instructors while the student enrollment increased in 2017. The Company kept the same number instructors in 2016 while the student enrollment increased. As a result, students to instructor ratio increased, which decreased the cost of sales as a percentage of tuition revenue in 2017 over 2016. There are no direct costs associated with revenues derived from our licensing revenues.

Cost of sales for the six months ended March 31, 2017 and 2016 were $638,104 and $562,092, respectively. Cost of sales as a percentage of tuition revenue decreased to 46% for 2017 as compared to 48% for the comparable period in 2016, primarily because the Company offered discounted pricing for additional courses to students both in 2017 and 2016. As a result, students to instructor ratio increased which reduced the cost of sales as a percentage of tuition revenues. There are no direct costs associated with revenues derived from the licensing revenues

Operating expenses for the three months ended March31, 2017 were $313,584 compared to $338,518 for the same comparable period in 2016. Operating expenses primarily consist of selling, general and administrative expense ("S,G&A"). S,G&A decreased by $24,934 or 7% in 2017 as compared to 2016, primarily due to decrease in administrative and consulting expenses, decrease in provision for bad debts, and decrease in legal and professional fees. Management expects our costs to continue to fluctuate until we begin to generate substantial increase in revenues.

Operating expenses for the six months ended March 31, 2017 were $605,683 compared to $543,351for the same comparable period in 2016. S, G&A for the six months ended March 31, 2017 increased by $62,332 or 11% in 2017 as compared to 2016 primarily due to increase in sales and marketing promotions expense incurred by the Company to enroll new students, increase in legal and professional fees, increase in payroll expense due to new hires and officer's compensation, and increase in provision for bad debts and administrative expenses. Management expects our costs to continue to fluctuate until we begin to generate substantial increase in revenues.

Depreciation expense for the three months and six months ended March 31, 2017 was $627 and $1,390 compared to $763 and $1,481 for the same comparable periods in 2016.

Other income for the three months and six months ended March 31, 2017was $13,500 and $13,500 compared to $0 and $5,625 for the comparable periods in 2016. Other income consisted of collection of accounts receivable amounting that were previously written off in prior periods.

Interest expense for the three months and six months ended March 31, 2017 was $18,539 and $29,664 as compared to $1,569 and $3,138 for the same comparable periods in 2016. Interest expense increased by $16,783 or 1070% for the three months ended March 31, 2017 and increased by $26,526 or 845% for the six months ended March 31, 2017 as compared to prior year comparable periods primarily because the Company executed a note payable to a bank in May 2016.

As a result of the above, the Company recorded a net income of $94,553 for the three months ended March 31, 2017 compared to a net loss of $29,790 for the same comparable period in 2016. The Company recorded a net income of $131,932 for the six months ended March 31, 2017 as compared to a net income of $73,243 for the same comparable period in 2016.

Liquidity and Capital Resources

The accompanying consolidated financial statements for the six months ended March 31, 2017 have been prepared on a basis that contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. We have recorded a net income of $131,932 for the six months ended March 31, 2017 and net cash flows provided by operating activities were $37,311. In addition, we have an accumulated deficit of $154,250 and a working capital deficiency of $133,600 as of March 31, 2017. Management's plans include raising capital by borrowing and/or sale of common shares and borrowing working capital from its directors/officers to continue as a going concern. There is no assurance these plans will be realized.

Operating Activities

Net cash flows provided by operating activities for the six months ended March 31, 2017 was $37,311, primarily due to the net income of $131,933, add back from the bad debt expense of $19,054, decrease in accounts payable of $84,617 and refundable deposits of $33,925and offset by increase in accounts receivable of $180,717, bank overdraft of $11,228, accrued expense of $19,585 and accrued interest of $17,126.

Investing Activities

Net cash flows used in investing activities for the six months ended March 31, 2017 was $0.

Financing Activities

Net cash flows used in financing activities for the six months ended March 31, 2017 was $37,311 due to the cash payments of $31,274 on loan payable, and $6,037 cash advanced by the officer for the Company's working capital requirements.

As a result of the above activities, we did not experience a change in cash and cash equivalents for the six months ended March 31, 2017. Cash balance at March 31, 2017 and September 30, 2016 were $0 as we were overdrawn in our bank account.

We may need to raise additional capital through loans or additional investments from our officers, directors, or third parties. In order to fund transaction costs in connection with potential business acquisitions, our directors and/or officers members or their affiliates or other third parties may loan us additional amount. Accordingly, we may not be able to obtain additional financing. If we are unable to raise additional capital, we may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of our business plan, and reducing overhead expenses. We cannot provide any assurance that new financing will be available to us on commercially acceptable terms, if at all. These conditions raise substantial doubt about our ability to continue as a going concern.

It is possible that we will not raise sufficient additional funds from borrowings or sale of our common stock to cover operational expenses. Under those circumstances, we will need to obtain additional funding to support our operations. Because we have no contractual commitments with respect to any of these initiatives, there can be no assurance that additional funds for operations will be available on commercially reasonable terms or in the necessary amounts. Our inability to obtain any needed additional financing would have a material adverse effect on us, including possibly requiring us to significantly curtail our operations.

Effects of Inflation

We do not believe that inflation has had a material impact on our business.

Critical Accounting Estimates and Policies

The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and judgments related to the application of certain accounting policies.

While we base our estimates on historical experience, current information and other factors deemed relevant, actual results could differ from those estimates. We consider accounting estimates to be critical to our reported financial results if (i) the accounting estimate requires us to make assumptions about matters that are uncertain and (ii) different estimates that we reasonably could have used for the accounting estimate in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, would have material impact on our financial statements.

We consider our policy for revenue recognition due to the continuously evolving standards and industry practices related to revenue recognition, wherein any changes could materially impact the way we report revenues. Accounting policies related to income taxes are also considered to be critical as these policies involve considerable subjective judgment and estimation by management. Critical accounting policies and our procedures related to these policies are described below.

Revenue Recognition

The Company's tuition packages vary in price according to the different types of training programs purchased by the students. Upon commencement of the courses, the Company recognizes as revenue any deposits previously received, as they are non-refundable upon commencement of the courses. The remaining tuition from the student or the student's employer, which is received upon the commencement of the course or extended credit over a period of one to three months, is recognized as revenue upon the completion of the training courses, the duration of which is one to two weeks.

The Company's revenue recognition policy is based on the revenue recognition criteria established under the SEC's Staff Accounting Bulletin No. 104. The criteria and how the Company satisfies each element are as follows: (1) persuasive evidence of an arrangement - the Company and the student or the student's employer (the customer) enters into a signed contract with the Company; (2) delivery has occurred - as noted above, upon the commencement of the course, the deposit is non-refundable per the terms of the signed contract and upon completion of the course, the Company has provided all services to be delivered to the student under the contract; (3) the price is fixed and determinable - the signed contract indicates a fixed dollar amount for the tuition for the courses enrolled by the student; (4) collectability is reasonable assured - the Company receives as payment a deposit and the balance of the tuition before the course is completed, or credit is extended for installment payments, as evidenced by promissory note not to exceed one year.

On March 31, 2017, we entered into the Spin-Off Agreement with DKTI and Mr. Sudeck. Pursuant to the Spin-Off Agreement, Mr. Sudeck shall receive all of the issued and outstanding capital stock of DKTI in exchange for 2,500,000 shares of common stock, par value $0.0001 per Shares owned by Mr. Sudeck. Immediately after the closing of the Spin-Off, Mr. Sudeck has become the sole equity owner of DKTI and the Company has no further interest in DKTI.

Before the Spin-off, we, through DKTI, were in the business of training individuals for a career as a technician in the Automotive Appearance Industry, which includes paint less dent repair, interior restoration, windshield repair, window detailing, odor removal, detailing and alloy wheel repair. After the Spin-Off and as of the date of this report, we have minimal operations and did not generate any revenue.

Environmental Matters

Our operations are subject to evolving federal, state and local environmental laws and regulations related to the discharge of materials into the environment. Our process is not expected to produce harmful levels of emissions or waste by-products. However, these laws and regulations would require us to remove or mitigate the environmental effects of the disposal or release of substances at our site should they occur. Compliance with such laws and regulations can be costly. Additionally, governmental authorities may enforce the laws and regulations with a variety of civil and criminal enforcement measures, including monetary penalties and remediation requirements. We are not aware of any area of non-compliance with federal, state or local environmental laws and regulations as of the date of this report. Management has not recorded a reserve for any contingencies related to this area, however that is based on management current understanding of the applicable laws and regulations that are subject to interpretation by the regulatory authorities.

Recent Accounting Pronouncements

See Note 2 of our Financial Statements included in this report for discussion of recent accounting pronouncements.