What changed in this filing

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Item 1. Financial Statements

2022-08-15 compared with 2022-02-14 · 201 added, 233 removed, 264 unchanged (62% of the section changed)

Financial Statements and Supplementary Data

the nine months ended December 31, 2021 and 2020

Condensed Consolidated Balance sheets as of December 31, 2021 and March 31, 2021 (unaudited)

Condensed Consolidated Statements of Income and Comprehensive Income for the Nine months ended December 31, 2021 and 2020 (unaudited)

Condensed Consolidated Statements of Changes in Equity for the nine months ended December 31, 2021 and 2020 (unaudited)

Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 2021 and 2020 (unaudited)

Notes to Condensed Consolidated Financial Statements for the nine months ended December 31, 2021 and 2020 (unaudited)

the three months ended June 30, 2021 and 2020

Condensed Consolidated Balance sheets as of June 30, 2022 and March 31, 2022 (unaudited)

Condensed Consolidated Statements of Income and Comprehensive Income for the Three months ended June 30, 2022 and 2021 (unaudited)

Condensed Consolidated Statements of Changes in Equity for the three months ended June 30, 2022 and 2021 (unaudited)

Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2022 and 2021 (unaudited)

Notes to Condensed Consolidated Financial Statements for the three months ended June 30, 2022 and 2021 (unaudited)

AND SUBSIDIARIES

1 unchanged sentence

Dollars, except share data or otherwise stated)

June 30, 2022

March 31, 2022

CURRENT ASSETS

3 unchanged sentences

Advances to suppliers

Amount due from related

Amount due from related party

Total current assets

2 unchanged sentences

Long-term prepayments

Operating lease right

Operating lease right of use asset

Total non-current assets

LIABILITIES AND EQUITY

CURRENT LIABILITIES

4 unchanged sentences

Accrued expenses and other payables

Operating lease liability

current portion

Operating lease liability current portion

Total current liabilities

1 unchanged sentence

Operating lease liability

Common stock ($ 0.001 par value, 50,000,000 shares authorized, 26,693,004

shares issued and outstanding at December 31, 2021 and March 31, 2021)

TOTAL LIABILITIES

EQUITY (deficit)

Common stock ($ 0.001 par value, 50,000,000 shares authorized, 26,693,004 shares issued and outstanding at both June 30 and March 31, 2022)

Additional paid-in capital

3 unchanged sentences

Statutory reserve

Accumulated other comprehensive

Total deficit

LIABILITIES AND EQUITY

Accumulated other comprehensive loss

Total equity (deficit)

TOTAL LIABILITIES AND EQUITY

accompany notes to the unaudited condensed consolidated financial statements.

2 unchanged sentences

Dollars, except share data or otherwise stated)

COST OF REVENUES

( 2,323,716 )

( 2,950,124 )

( 8,314,149 )

( 22,776,087 )

GROSS PROFIT (LOSS)

( 1,762,023 )

OPERATING EXPENSES

Selling and marketing

and marketing

and administrative

( 1,375,513 )

( 1,454,017 )

operating expenses

( 1,510,823 )

( 1,830,992 )

INCOME FROM OPERATIONS

( 3,593,015 )

Interest income

Interest expenses

Other income (expense),

INCOME (LOSS) BEFORE INCOME

( 3,537,010 )

INCOME TAX EXPENSE

NET INCOME (LOSS)

( 3,560,206 )

currency translation loss

COMPREHENSIVE INCOME (LOSS)

$ ( 389,309 )

$ ( 3,734,085 )

EARNINGS (LOSS) PER SHARE

Weighted average number

of shares outstanding – Basic and diluted

FROM OPERATIONS

income (expense), net

INCOME BEFORE INCOME TAX EXPENSE

(LOSS) INCOME

currency translation gain (loss)

COMPREHENSIVE INCOME

(LOSS) PER SHARE

average number of shares outstanding – Basic and diluted

accompany notes to the unaudited condensed consolidated financial statements.

2 unchanged sentences

Dollars, except share data or otherwise stated)

comprehensive

Retained earnings

(accumulated deficit)

comprehensive

BALANCE AT OCTOBER 31, 2020

$ ( 6,489,747 )

$ ( 2,676,500 )

Paid in capital

in capital , shares

Movement of Statutory reserve

Foreign currency translation

Net income for the period

BALANCE AT DECEMBER 31, 2020

$ ( 6,804,107 )

$ ( 117,391 )

$ ( 3,065,809 )

BALANCE AT OCTOBER 31, 2021

$ ( 6,723,260 )

$ ( 137,259 )

Foreign currency translation

Net income for the period

BALANCE AT DECEMBER 31, 2021

$ ( 6,711,641 )

$ ( 166,014 )

Accumulated other

Statutory reserve

comprehensive loss

BALANCE AT MARCH 31, 2021

1 unchanged sentence

$ ( 103,117 )

Paid in capital

Movement of Statutory reserve

Foreign currency translation

Net income for the period

( 3,560,206 )

BALANCE AT DECEMBER 31, 2020

BALANCE AT JUNE 30, 2021

$ ( 6,755,281 )

5 unchanged sentences

Net income for the period

BALANCE AT DECEMBER 31, 2021

$ ( 6,711,641 )

BALANCE AT JUNE 30, 2022

$ ( 6,659,559 )

3 unchanged sentences

Dollars, except share data or otherwise stated)

Months Ended December 31

CASH FLOWS FROM OPERATING

Three Months Ended June 30

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$ ( 3,560,206 )

Adjustments to reconcile net income (loss)

to net cash used in operating activities:

Loss on disposal of plant

and equipment

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Changes in operating assets and liabilities

Accounts receivable

Advances to suppliers

( 2,031,892 )

Advances to suppliers

Other receivables

Accounts payables

( 1,899,642 )

( 1,688,272 )

Accrued expenses and other

from customers

Accrued expenses and other payables

Advances from customers

Net cash provided by (used in) operating activities

$ ( 1,250,664 )

CASH FLOWS FROM INVESTING

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of plant and equipment and other assets

Proceeds from sale of property and equipment

Cash decreased in disposal

of subsidiaries

Net cash used in investing activities

$ ( 104,235 )

$ ( 1,094,344 )

CASH FLOWS FROM FINANCING

Proceeds from issuance of common stocks

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from related party borrowings

Repayment of related party borrowings

( 5,341,046 )

( 6,605,044 )

Proceeds from bank borrowings

Repayment of bank borrowings

Net cash (used in) provided by financing activities

$ ( 1,543,573 )

NET (DECREASE) INCREASE

IN CASH AND CASH EQUIVALENTS

( 1,336,016 )

Effect of exchange rate changes on cash and

cash equivalents

Cash and cash equivalents,

beginning of the period

AND CASH EQUIVALENTS, END OF THE PERIOD

Supplemental disclosure

of cash flow information:

Net cash provided by financing activities

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents, beginning of the period

CASH AND CASH EQUIVALENTS, END OF THE PERIOD

Supplemental disclosure of cash flow information:

Cash paid during the year for interest

Cash paid during the year for income tax

Supplemental disclosure

of non-cash investing and financing activities:

Right-of-use assets obtained in exchange for

operating lease obligations

Net assets of subsidiaries

disposed of recorded as Other Receivables

Supplemental disclosure of non-cash investing and financing activities:

Right-of-use assets obtained in exchange for operating lease obligations

accompany notes to the unaudited condensed consolidated financial statements.

1 unchanged sentence

TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AND BUSINESS ACQUISITIONS

ORGANIZATION AND BUSINESS ACQUISITIONS

and its subsidiaries (the “Company”) are engaged in the business of garments manufacturing, providing logistic services,

1 unchanged sentence

prevention supplies manufacturing and distribution both in China and overseas markets.

OF PRESENTATION

BASIS OF PRESENTATION

the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature

16 unchanged sentences

going concern assumption contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

Company incurred net income of $ 11,619 and net loss of $ 303,581 for the three months ended December 31, 2021 and 2020, respectively,

and net income of $ 122,587 and net loss of $ 3,560,206 for the nine months ended December 31, 2021 and 2020, respectively.

As of December

31, 2021 and March 31, 2021, the Company had net current liability of $ 4,602,684 and $ 4,430,933 , respectively, and a deficit on total

equity of $ 21,808 and $ 81,498 , respectively.

These conditions raise substantial doubt about the Company’s ability to continue as

a going concern.

ability to continue as a going concern is dependent upon the Company’s profit generating operations in the future and/or obtaining

the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due.

These consolidated financial statements do not include any adjustments to 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.

Company expects to finance operations primarily through cash flow from revenue and capital contributions from the CEO.

During the year,

the CEO has provided financial support for the operations of the Company.

In the event that the Company requires additional funding to

finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the

CEO has indicated the intent and ability to provide additional equity financing.

OF SIGNIFICANT ACCOUNTING POLICIES

Company incurred net income of $ 96,671 and

the three months ended June 30, 2022 and 2021, respectively.

As of June 30, 2022 and March 31, 2022, the Company had net current liability

of $ 4,240,999 and

$ 4,703,213 ,

respectively, and total equity of $ 130,453

and a deficit on total equity of $ 71,367 ,

respectively.

Company expects to finance operations primarily through cash flow from revenue, capital contributions from the CEO and proceeds from proposed IPO.

year, the CEO has provided financial support for the operations of the Company.

In the event that the Company requires additional

funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic

objectives, the CEO has indicated the intent and ability to provide additional equity financing.

growth and development of our business will require a significant amount of additional working capital.

We currently have limited financial

resources and based on our current operating plan, we will need to raise additional capital in order to continue as a going concern.

currently do not have adequate cash to meet our short or long-term objectives.

In the event additional capital is raised, it may have

a dilutive effect on our existing stockholders.

We are subject

to all the substantial risks inherent in the development of a new business enterprise within an extremely competitive industry.

the absence of a long standing operating history and the emerging nature of the markets in which we compete, we anticipate operating losses

until we can successfully implement our business strategy, which includes all associated revenue streams.

Our revenue model is new and

evolving, and we cannot be certain that it will be successful.

The potential profitability of this business model is unproven.

never ever achieve profitable operations.

Our future operating results depend on many factors, including demand for our services, the

level of competition, and the ability of our officers to manage our business and growth.

As a result of the emerging nature of the market

in which we compete, we may incur operating losses until such time as we can develop a substantial and stable revenue base.

development expenses may delay or negatively impact the ability of the Company to generate profits.

Accordingly, we cannot assure you

that our business model will be successful or that we can sustain revenue growth, achieve or sustain profitability, or continue as a going

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions

4 unchanged sentences

however actual results could differ materially from those estimates.

is no change on the accounting policies for the three months ended December 31, 2021.

is no change on the accounting policies for the three months ended June 30, 2022.

issued accounting pronouncements

12 unchanged sentences

a significant impact on the Company’s consolidated financial statements.

PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY

2 unchanged sentences

CEO, and a director of the Company

legal representative of HPF, became not a related party when HPF was disposed of in November, 2020

legal representative of XKJ

Manager of XKJ

legal representative of YBY

spouse of legal representative of HSW

legal representative of Shenzhen Xin Kuai Jie Transportation Co., Ltd (“XKJ”), a wholly subsidiary of our Company

Manager of XKJ, ceased to be general manager of XKJ since May, 2022

legal representative of Shantou Yi Bai Yi Garments Co., Ltd (“YBY”), a wholly-owned subsidiary of our Company

spouse of legal representative of Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), a wholly owned subsidiary of our Company

Company leases Shenzhen XKJ office rent-free from Bihua Yang.

Company had the following related party balances as of December 31, 2021 and March 31, 2021:

SCHEDULE OF RELATED PARTY TRANSACTION

from related party

Hongye Financial

Consulting (Shenzhen) Co., Ltd.

Zhiyong Zhou (1)

Company had the following related party balances as of June 30, 2022 and March 31, 2022:

SCHEDULE OF RELATED PARTIES

due from related party

Financial Consulting (Shenzhen) Co., Ltd.

party borrowings

Zhida Hong (2)

Bihua Yang (3)

Dewu Huang (4)

Jinlong Huang

cash advance to Zhiyong Zhou to pay for daily operating expenditures of XKJ.

decrease was due to net repayment of debt due to Zhida Hong.

During the three and nine months ended December 31, 2021, the Company

received financial support of $ 0.03 million and 0.27 million from Zhida Hong and repaid $ 0.3 million and $ 0.9 million of debts due

interest free loan as financial support from Zhida Hong to daily operation of the Company.

interest free loan as financial support from Zhiyong Zhou to pay for daily operating expenditures of XKJ.

financial support from Bihua Yang for XKJ’s daily operation.

decrease was due to net repayment of debt due to Dewu Huang.

During the nine months ended December 31, 2021, the company received

interest free advanced loan as financial support of approximately $ 1.5 million from Dewu Huang and repaid approximately $ 2.0 million

of debts due to him.

The related party debt was additional financial support provided by Dewu Huang for YBY’s daily operation.

interest free advanced loan as financial support from Dewu Huang for YBY’s daily operation.

borrowing balances with related parties are unsecured, non-interest bearing and repayable on demand.

consist of the following as of December 31, 2021 and March 31, 2021:

consist of the following as of June 30, 2022 and March 31, 2022:

SCHEDULE OF INVENTORIES

June 30, 2022

March 31, 2022

Raw materials

2 unchanged sentences

Total inventories

is no inventory write-off for the three and nine months ended December 31, 2021 and 2020.

ADVANCES TO SUPPLIERS

Company has made advances to third-party suppliers in advance of receiving inventory parts.

6 unchanged sentences

recognize bad debt expense in the period they are considered unlikely to be collected.

AND OTHER RECEIVABLES

and other receivables consist of the following as of December 31, 2021 and March 31, 2021:

PREPAYMENTS AND OTHER RECEIVABLES

and other receivables consist of the following as of June 30, 2022 and March 31, 2022:

SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES

Receivable of consideration on disposal

of subsidiaries

June 30, 2022

March 31, 2022

Receivable of consideration on disposal of subsidiaries

Other receivables

PLANT AND EQUIPMENT

plant and equipment consists of the following as of December 31, 2021 and March 31, 2021:

Total prepayments

and other receivables

PROPERTY, PLANT AND EQUIPMENT

plant and equipment consists of the following as of June 30, 2022 and March 31, 2022:

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT

June 30, 2022

March 31, 2022

Production plant

1 unchanged sentence

Office equipment

Plant and equipment, gross

accumulated depreciation

Plant and equipment,

expense for the three and nine months ended December 31, 2021 and 2020 was $ 44,164 and $ 32,051 , $ 115,561 and $ 83,210 , respectively.

Plant and equipment, net

expense for the three months ended June 30, 2022 and 2021 was $ 35,883 and $ 33,986 , respectively.

SHORT-TERM BANK LOAN

August 2019, HSW entered into a facility agreement with Agricultural Bank of China and obtained a line of credit, which allows the Company

1 unchanged sentence

The loans are guaranteed at no cost by the legal representative

As of December 31, 2021, the Company has borrowed $ 157,354 (RMB 1,000,000 ) (March 31, 2021:

$ 152,607 ) under this line of credit

with various annual interest rates from 4.84 % to 4.9 % .

As of June 30, 2022, the Company has borrowed $ 142,591 (RMB 955,281 ) (March 31, 2022:

$ 151,090 ) under this line of credit with

various annual interest rates from 4.84 % to 4.9 %.

The outstanding loan balance was due on September 30, 2021 .

The Company was not

able to renew the loan facility with the bank.

The Company is negotiating with the bank on repayment schedule of the loan balance and

interest payable.

In January 2022, Ding Yinping, underwriter of the loan, partly repaid $ 6,596 (RMB 41,921 ) on behalf of the Company.

The Company was not able

to renew the loan facility with the bank.

The Company is negotiating with the bank on repayment schedule of the loan balance and interest

Income Tax (“EIT”)

2 unchanged sentences

is not subject to income taxes.

HK was incorporated in Hong Kong and is subject to Hong Kong income tax at a progressive rate of 16.5 % .

No provision for income taxes

in Hong Kong has been made as Yingxi HK had no taxable income for the three and nine months ended December 31, 2021 and 2020.

It’s wholly owned subsidiary of Addentax Group Corp.

HK (Yingxi Industrial Chain Investment Co., Ltd.) was incorporated in Hong Kong which is indirectly wholly owned by Addentax Group

Corp., and is subject to Hong Kong income tax at a progressive rate of 16.5 %.

No provision for income taxes in Hong Kong has been made as Yingxi HK had no taxable income for the three months ended June 30, 2022

YX, our wholly owned subsidiary,

were incorporated in the PRC and is subject to the EIT tax rate of 25 %.

No provision for income taxes in the PRC has been made as YX

had no taxable income for the three and nine months ended December 31, 2021 and 2020.

had no taxable income for the three months ended June 30, 2022 and 2021.

Company is governed by the Income Tax Laws of the PRC.

5 unchanged sentences

for income taxes in the United States has been made as Addentax Group Corp.

had no United States taxable income for the three and nine

months ended December 31, 2021 and 2020.

had no United States taxable income for the three months

ended June 30, 2022 and 2021.

reconciliation of income taxes computed at the PRC statutory tax rate applicable to the PRC, to income tax expenses are as follows:

1 unchanged sentence

Three months ended

Nine months ended

PRC statutory tax rate

2 unchanged sentences

Permanent difference

Changes in valuation

Changes in valuation allowance

Income tax expense

2 unchanged sentences

value of sales and is payable by the purchaser.

The subsidiaries HSW, DT and YS enjoyed preferential VAT rate of 13 % .

The Companies are

required to remit the VAT they collect to the tax authority.

The subsidiaries HSW, YBY and YS enjoyed preferential VAT rate of 13 %.

The Companies

are required to remit the VAT they collect to the tax authority.

A credit is available whereby VAT paid on purchases can be used to offset

the VAT due on sales.

services, the applicable VAT rate is 9 % under the relevant tax category for logistic company, except the branch of HPF enjoyed the preferential

services, the applicable VAT rate is 9 % under the relevant tax category for logistic company, except the branch of YXPF enjoyed the preferential

VAT rate of 3 % in 2022 and 2021.

3 unchanged sentences

service income.

CONSOLIDATED SEGMENT DATA

information is consistent with how chief operating decision maker reviews the businesses, makes investing and resource allocation decisions

12 unchanged sentences

Company also provides general corporate services to its segments and these costs are reported as “Corporate and others”.

information for period ended December 31, 2021 in the segment structure is presented in the following tables:

SCHEDULE OF SEGMENT REPORTING

management and leasing

prevention supplies

Revenue from external customers

information in the segment structure is presented in the following tables:

by segment for the three months ended June 30, 2022 and 2021 are as follows:

OF SEGMENT REPORTING FOR REVENUE

Three months ended

Revenues from external customers

Garments manufacturing segment

Logistics services segment

Property management and subleasing

Epidemic prevention supplies segment

Total of reportable segments and consolidated revenue

Intersegment revenue

Interest income

Interest expense

Depreciation and amortization

Operating income (loss)

Segment assets

Expenditures for segment assets

Garments manufacturing segment

from operations by segment for the three ended June 30, 2022 and 2021 are as follows:

OF SEGMENT REPORTING FOR INCOME FROM OPERATION

Three months ended

Garment manufacturing segment

Logistics services segment

Property management and subleasing

Epidemic prevention supplies

Total of reportable segments

Corporate and other

Total consolidated income from operations

assets by segment as at June 30, 2022 and March 31, 2022 are as follows:

OF SEGMENT REPORTING FOR ASSETS

March 31, 2022

Garment manufacturing segment

Logistics services segment

Property management and subleasing

Epidemic prevention supplies

Total of reportable segments

Corporate and other

Consolidated total assets

Company operates predominantly in China.

2 unchanged sentences

SCHEDULE OF GEOGRAPHICAL INFORMATION

United States

Three months ended

June 30, 2022

March 31, 2022

Long-Lived Assets

RIGHT-OF-USE ASSET AND LEASE LIABILITIES

LEASE RIGHT-OF-USE ASSET AND LEASE LIABILITIES

Company recognized right-of-use asset as well as lease liability according to the ASC 842, Leases (with the exception of short-term leases).

Lease liabilities are measured at present value of the sum of remaining rental payments as of December 31, 2021, with discounted rate

Lease liabilities are measured at present value of the sum of remaining rental payments as of June 30, 2022, with discounted rate of

A single lease cost is recognized over the lease term on a generally straight-line basis.

9 unchanged sentences

SCHEDULE OF LEASE COST

Three months ended

Operating lease cost

Short-term lease

Short-term lease cost

following table summarizes supplemental information related to leases:

SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES

Cash paid for amounts included in the measurement

of lease liabilities

Operating cash flow from operating

Right-of-use assets obtained in exchange for

new operating leases liabilities

Weighted average remaining lease term - Operating

leases (years)

Weighted average discount rate - Operating

Three months ended

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flow from operating leases

Right-of-use assets obtained in exchange for new operating leases liabilities

Weighted average remaining lease term - Operating leases (years)

Weighted average discount rate - Operating leases

following table summarizes the maturity of operating lease liabilities:

SCHEDULE OF OPERATING LEASE LIABILITY

ending December 31

Years ending June 30

Total lease payments

18 unchanged sentences

currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date, which was 6.699 and 6.341

as of December 31, 2021 and March 31, 2021, respectively.

as of June 30, 2022 and March 31, 2022, respectively.

Revenue and expenses are translated at the average yearly exchange rates, which

was 6.442 and 6.779 for the nine months ended December 31, 2021 and 2020, respectively.

was 6.603 and 6.461 for the three months ended June 30, 2022 and 2021, respectively.

Equity is translated at historical exchange rates.

2 unchanged sentences

Concentration

followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of December

followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of June

30, 2022 and March 31, 2022.

1 unchanged sentence

manufacturing segment

high concentration as of December 31, 2021 was mainly due to business development of a large distributor of garments.

high concentration as of June 30, 2022 was mainly due to business development of a large distributor of garments.

Management believes

that should the Company lose any one of its major customers, it was able to sell similar products to other customers.

services segment

management and subleasing

accounts receivables in this segment.

June 30, 2022

March 31, 2022

management and subleasing segment

is no account receivable for Property management and subleasing segment as for March 31, 2022.

prevention supplies segment

accounts receivables in this segment.

the three months ended December 31, 2021, there was no single customer provided more than 10 % of total revenue of the Company.

months ended December 31, 2021, one customer from garment segment provided more than 10 % of total revenue of the Company, represented

24.8 % for the nine months.

For the three months ended December 31, 2020, there was no customer provided more than 10 % of total revenue

of the Company.

For nine months ended December 31, 2020, one customer from garment segment and one customer from epidemic prevention

supplies segment provided more than 10 % of total revenue of the Company.

high concentration in nine months ended December 31, 2021 was mainly due to concentration of distributors in garment segment.

accounts receivable of Epidemic prevention supplies segment as at June 30, 2022 was from one customer only.

the three months ended June 30, 2022, one customer from Logistics services segment provided more than 10% of total revenue of the Company,

represented 13.1 % of total revenue of the Company for the three months.

For the three months ended June 30, 2021, one customer from garment

segment provided more than 10% of total revenue of the Company, represented 98.8 % of total revenue of the Company for the three months.

believes that should the Company lose any one of its major customers, it was able to sell similar products to other customers.

following tables summarized the purchases from five largest suppliers of each of the reportable segment for the three and nine months

ended December 31, 2021 and 2020.

following tables summarized the purchases from five largest suppliers of each of the reportable segment for the three months ended June

30, 2022 and 2021.

SCHEDULE OF PURCHASES FROM SUPPLIERS

Three months ended

Nine months ended

Garment manufacturing segment

4 unchanged sentences

interest income generated by cash invested in cash deposits and liquid investments.

As of December 31, 2021, the total outstanding borrowings

As of June 30, 2022, the total outstanding borrowings

amounted to $ 142,591 (RMB 955,281 ) with various interest rate from 4.84 % to 6.96 % p.a.

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements