Forward Looking Statements

This report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our company's or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States dollars (US$) and are prepared in accordance with United States generally accepted accounting principles.

In this quarterly report, unless otherwise specified, all references to "common shares" refer to the common shares of our capital stock.

As used in this quarterly report, the terms "we", "us", "our", "W&E Source Corp.", "the Company" means W&E Source Corp., unless otherwise indicated.

Corporate Overview

We are a development stage company incorporated in Delaware on October 11, 2005. Our principal business was to provide an online financial media outlet for researching China-related stocks. This media outlet provided financial news and commentary, online video broadcasting, and other information for researching China-related stocks. China-related stocks refer to the stocks issued by companies whose main operations are located in China. However, due to our online financial media outlet software problems and other difficulties, we were not able to achieve the milestones we set to fully implement our business operations in online financial media outlet for researching China-related stocks.

In July 2011, the Company's new management team began re-evaluating our business plan and determined that it would be in the best interest of the Company to take a new business direction. In the new business model, the Company will serve as an incubator for innovative enterprises across various industries with diverse practices. The Company will identify such enterprises and acquire them through various business combination transactions. As an incubator, the Company will provide the necessary assistance and environment for the acquired businesses to grow with the eventual goal of spinning them off as independent publicly reporting entities.

The Company has identified the global tourism market as its first investment target. As it currently exists, the tourism industry is fragmented into various geographic regions. We believe that approaching this industry from a global perspective is an emerging market with tremendous growth potential. We plan to set up and/or acquire offices in various regions of the world and through them, develop the local tourism industry and expand our local tourism market. Ultimately, we plan to unify and manage our regional offices and to market our global services through the internet.

We have recently set up three subsidiaries, Airchn Travel Global, Inc. in Seattle, Washington ("ATGI") and Airchn Travel (Canada) Inc., in Vancouver, British Columbia in Canada ("ATCI") and Airchn Travel (Beijing) Inc. in Beijing, China. We plan to set up additional subsidiaries in Hong Kong, Macau, Taiwan, Japan and Korea in the near future.

As per of our new business plan, we will continue to explore other business growth opportunities, regardless of industry, in order to diversify our business operations and investments.

In order to reflect our new business plan better, on January 17, 2012, the Company filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State of Delaware to change its name from New of China, Inc. to W&E Source Corp. In connection the name change, our listing symbol on the OTCQB also changed from "NWCH" to "WESC." Our new website which is currently under construction can be accessed at www.wescus.com. In addition, the Company also increased its total authorized shares to 500,000,000 to anticipate future financing through the issuance of our equity or convertible debt to finance our business.

Results of Operations

The following summary of our results of operations should be read in conjunction with our unaudited financial statements for the fiscal quarter ended March 31, 2012 and 2011.

Three and Nine Months Ended March 31, 2012 and 2011

                                                 For the Three     For the Three
                                                 Months Ended      Months Ended
                                                   March 31,         March 31,
                                                     2012              2011
Revenues                                       $             -   $             -

Expenses
           General and administrative expenses         164,050             4,115
           Foreign currency exchange loss                    -                53
Interest Income                                            (14 )
                                                       164,036             4,168
Net loss                                       $      (164,036 ) $        (4,168 )



                                                 For the Nine     For the Nine
                                                 Months Ended     Months Ended
                                                  March 31,        March 31,
                                                     2012             2011
Revenues                                       $            -   $            -

Expenses
           General and administrative expenses        213,212           10,642
           Foreign currency exchange loss                  69              744
Interest income                                           (14 )
                                                      213,267           11,386
Net loss                                       $     (213,267 ) $      (11,386 )

Revenues

We have not generated any revenues from operations since our inception.

Expenses for the three and nine months ended March 31, 2012 increased by $159,935 and $202,570, respectively, over the same periods in 2011 primarily because of the increases in professional fees related to legal and accounting as well as general and administrative expenses incurred in establishing Airchn Travel (Beijing) Inc.

Liquidity and Capital Resources

Our financial condition for the fiscal quarter ended March 31, 2012 and the
changes between those periods for the respective items are summarized as
follows:

Working Capital

                      March 31, 2012     June 30, 2011
Current Assets      $        419,632   $        14,013
Current Liabilities           82,958            35,911
Working Capital     $        336,674   $       (21,898 )

Our working capital significantly increased from deficit to assets since the previous fiscal year ended June 30, 2011 because we have raised cash from investors for capital investment.

Cash Flows

Cash Used in Operating Activities

For the nine months ended March 31, 2012, our cash used in operating activities increased by $228,965 from $12,526 for the same period of previous year. The increase is mainly due to the increase in professional fees related to legal and accounting and general and administrative expenses incurred in establishing Airchn Travel (Beijing) Inc.

Cash Used in Investing Activities

For the nine months ended March 31, 2012, we purchased fixed assets at the amount of $40,460 to establish Airchn Travel (Beijing) Inc.

Cash Provided by Financing Activities

For the nine months ended March 31, 2012, we received $630,000 from the sale of 22,000,000 shares of the company's common stock to our CEO, $35,433 in advances from a related party and repaid $4,113 for a loan from one of our shareholders.

Cash Requirements

Over the next 12 months ending March 31, 2013, we anticipate that we will incur
the following operating expenses:

Expense                          Amount
General and administrative     $  24,000
Professional fees                 30,000
Foreign currency exchange loss     6,000
Total                          $  60,000

Management believes that our Company's cash will be sufficient to meet our working capital requirements for the next 12-month period for our Company has already successfully raised the capital required to satisfy our immediate short-term needs and additional capital required to meet our estimated funding requirements for the next 12 months primarily through the private placement of our equity securities.

In addition to the issues set out above regarding our ability to raise capital, global economies are currently undergoing a period of economic uncertainty related to the tightening of credit markets worldwide. This has resulted in numerous adverse effects, including unprecedented volatility in financial markets and stock prices, slower economic activity, decreased consumer confidence and commodity prices, reduced corporate profits and capital spending, increased unemployment, liquidity concerns and volatile but generally declining energy prices. We anticipate that the current economic conditions and the credit shortage will adversely impact our ability to raise financing. In addition, if the future economic environment continues to be less favorable than it has been in recent years, we may experience difficulty in completing our current business plan.

Off Balance Sheet Arrangements

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

Recently Issued Accounting Standards

We continue to assess the effects of recently issued accounting standards. The impact of all recently adopted and issued accounting standards has been disclosed in the Footnotes to the financial statements.