What changed in this filing

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Item 1. Financial Statements

2024-11-14 compared with 2024-08-14 · 237 added, 148 removed, 481 unchanged (44% of the section changed)

Financial Statements and Supplementary Data

the three months ended June 30, 2024 and 2023

Condensed Consolidated Balance sheets as of June 30, 2024 and March 31, 2024 (unaudited)

Condensed Consolidated Statements of Income and Comprehensive Income for the Three months ended June 30, 2024 and 2023 (unaudited)

Condensed Consolidated Statements of Changes in Equity for the three months ended June 30, 2024 and 2023 (unaudited)

Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2024 and 2023 (unaudited)

Notes to Condensed Consolidated Financial Statements for the three months ended June 30, 2024 and 2023 (unaudited)

the three and six months ended September 30, 2024 and 2023

Condensed Consolidated Balance sheets as of September 30, 2024 (unaudited) and March 31, 2024 (audited)

Condensed Consolidated Statements of Income and Comprehensive Income for the three and six months ended September 30, 2024 and 2023 (unaudited)

Condensed Consolidated Statements of Changes in Equity for the three and six months ended September 30, 2024 and 2023 (unaudited)

Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2024 and 2023 (unaudited)

Notes to Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023 (unaudited)

AND SUBSIDIARIES

1 unchanged sentence

Dollars, except share data or otherwise stated)

June 30, 2024

September 30, 2024

March 31, 2024

29 unchanged sentences

TOTAL LIABILITIES

Common stock ($ 0.001 par value, 250,000,000 shares authorized, 6,043,769 and 5,383,769 shares issued and outstanding at June 30 and March 31, 2024, respectively)

Common stock ($ 0.001 par value, 250,000,000 shares authorized, 6,043,769 and 5,383,769 shares issued and outstanding at September 30 and March 31, 2024, respectively)

Additional paid-in capital

10 unchanged sentences

Three months ended

September 30,

Six months ended

September 30,

COST OF REVENUES

( 1,012,837 )

( 1,661,275 )

( 1,748,024 )

OPERATING EXPENSES

1 unchanged sentence

General and administrative

( 1,119,607 )

( 1,168,465 )

Total operating expenses

(LOSS) INCOME FROM OPERATIONS

Fair value gain or loss

( 1,281,318 )

( 1,205,677 )

INCOME (LOSS) FROM OPERATIONS

Fair value gain or loss

Interest income

1 unchanged sentence

( 1,896,534 )

Other income (expense), net

Other income, net

(LOSS) INCOME BEFORE INCOME TAX EXPENSE

5 unchanged sentences

( 1,366,321 )

Foreign currency translation gain (loss)

TOTAL COMPREHENSIVE (LOSS) INCOME

Foreign currency translation gain

TOTAL COMPREHENSIVE INCOME (LOSS)

$ ( 780,992 )

$ ( 1,987,693 )

EARNINGS (LOSS) PER SHARE

$ ( 1,276,569 )

EARNINGS PER SHARE

Basic and diluted

7 unchanged sentences

comprehensive

BALANCE AT MARCH 31, 2023

BALANCE AT JULY 1, 2023

$ ( 8,179,930 )

Issuance of new shares

Additional paid-in capital from conversion of convertible debts

Foreign currency translation

Net income for the period

BALANCE AT SEPTEMBER 30, 2023

$ ( 6,817,530 )

BALANCE AT JULY 1, 2024

$ ( 9,790,301 )

Additional paid-in capital from conversion of convertible debts

Foreign currency translation

Net income for the period

BALANCE AT SEPTEMBER 30, 2024

$ ( 10,511,833 )

BALANCE AT APRIL 1, 2023

$ ( 5,451,209 )

Issuance of new shares before reversed split

Reverse stock split

1 unchanged sentence

New shares for round up of fragmental shares

Issuance of new shares after reversed split

Additional paid-in capital from conversion of convertible debts

3 unchanged sentences

( 1,366,321 )

BALANCE AT JUNE 30, 2023

BALANCE AT SEPTEMBER 30, 2023

$ ( 6,817,530 )

BALANCE AT MARCH 31, 2024

BALANCE AT APRIL 1, 2024

$ ( 8,569,190 )

1 unchanged sentence

Issuance of new shares

Additional paid-in capital from conversion of convertible debts

Foreign currency translation

2 unchanged sentences

( 1,942,643 )

BALANCE AT JUNE 30, 2024

BALANCE AT SEPTEMBER 30, 2024

$ ( 10,511,833 )

4 unchanged sentences

Dollars, except share data or otherwise stated)

Three Months Ended June 30

Six Months Ended September 30

CASH FLOWS FROM OPERATING ACTIVITIES:

5 unchanged sentences

Fair value gain or loss

( 1,566,592 )

Loss on debts extinguishment

Gain on bargain purchase

Loss from sale of property and equipment

Loss on disposal of subsidiary

Changes in operating assets and liabilities

5 unchanged sentences

Advances from customers

Net cash used in operating activities

$ ( 193,185 )

Net cash provided by (used in) operating activities

$ ( 1,579,486 )

1 unchanged sentence

Purchase of property and equipment and intangible assets

Cash decreased in disposal of subsidiary

Net cash used in investing activities

$ ( 115,651 )

CASH FLOWS FROM FINANCING ACTIVITIES:

9 unchanged sentences

Proceeds from issue of ordinary shares

Net cash provided by financing activities

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

Net cash provided by (used in) financing activities

$ ( 415,566 )

NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH

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

Cash and restricted cash, beginning of the period

CASH AND RESTRICTED CASH, END OF THE PERIOD

Supplemental disclosure of cash flow information:

26 unchanged sentences

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

preparation of the consolidated financial statements in conformity with U.S.

GAAP requires management to make estimates and assumptions

that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated

3 unchanged sentences

however actual results could differ materially from those estimates.

is no change in the accounting policies for the three months ended June 30, 2024.

is no change in the accounting policies for the six months ended September 30, 2024.

issued accounting pronouncements

June 2016, the FASB issued ASU No.

2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on

Financial Instruments.

This standard requires a financial asset (or group of financial assets) measured at amortized cost basis to be

presented at the net amount expected to be collected.

The allowance for credit losses is a valuation account that is deducted from the

amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial

This standard will be effective for the Company on April 1, 2023.

The Company is currently evaluating the impact the adoption

of this ASU will have on its consolidated financial statements.

for Convertible Instruments:

16 unchanged sentences

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

DISPOSITION OF SUBSIDIARIES

Company disposed of its subsidiary Shantou Yi Bai Yi Garment Co., Ltd, a PRC Company (“YBY”), a manufacturing company in garment manufacturing segment at end of August 2024 to the local management

After disposition, YBY became third party to the Company.

The Company will not have any businesses with YBY.

The Company will

carry on the garment manufacturing segment business through other subsidiaries.

The disposition of YBY did not qualify as discontinued

position of the entities at disposal date and gain or loss on disposal:

Manufacturing Segment

SCHEDULE OF FINANCIAL POSITION OF ENTITIES AND GAIN OR LOSS ON DISPOSAL

Financial position of YBY

August 31, 2024,

date of disposal

Current assets

Noncurrent assets

Current liabilities

consideration was Nil , with the reversal of related foreign currency translation reserve brought forward, resulting in a loss of $ 334,135

recognized on the disposal.

RELATED PARTY TRANSACTIONS

OF RELATED PARTIES RELATIONSHIP WITH COMPANY

of Related Parties

with the Company

CEO, and a director of the Company

Financial Consulting (Shenzhen) Co., Ltd.

company controlled by CEO, Mr.

legal representative of XKJ

legal representative of YBY

Name of Related Parties

Relationship with the Company

President, CEO, and a director of the Company

Hongye Financial Consulting (Shenzhen) Co., Ltd.

A company controlled by CEO, Mr.

A legal representative of XKJ

A legal representative of YBY, ceased to be related party at August 31, 2024 when YBY was disposed.

Jinlong Huang

Management of HSW

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

1 unchanged sentence

provided guarantee to the consideration receivable of transfer of a debt security to a third

Company had the following related party balances as of June 30, 2024 and March 31, 2024:

Company had the following related party balances as of September 30, 2024 and March 31, 2024:

OF AMOUNT DUE FROM RELATED PARTY

Amount due from related party

June 30, 2024

September 30, 2024

March 31, 2024

5 unchanged sentences

During the quarter ended

June 30, 2024, the Company provided a short term loan of approximately $ 0.35 million to Yang Bihua and received repayment of approximately

$ 0.25 million from him.

September 30, 2024, the Company provided a short term loan of approximately $0.31 million to Yang Bihua and received repayment of

approximately $0.30 million from him.

OF RELATED PARTIES BORROWINGS

Related party borrowings

June 30, 2024

September 30, 2024

March 31, 2024

3 unchanged sentences

Related party borrowings

increase of related party from Hong Zhida was short term loan to Hong Zhida, which is interest free and would be repaid in one year.

increase of related party debt from Hong Zhida was short term loan to Hong Zhida, which is interest free and to be repaid in one

increase of related party debt from Yang Bihua was mainly due to the cash paid in advance to Yang Bihua.

During the quarter ended

June 30, 2024, the Company provided a short term loan of approximately $ 0.35 million to Yang Bihua and received repayment of approximately

$ 0.25 million from him.

September 30, 2024, the Company provided a short term loan of approximately $ 0.31 million to Yang Bihua and received repayment of

approximately $ 0.3 million from him.

Company received financial support from Huang Dewu to fund company’s daily operation.

The decrease is mainly due to repayment

The decrease is because YBY was disposed

of in August 2024.

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

1 unchanged sentence

OF DEBT SECURITIES HELD TO MATURITY

securities held-to-maturity

September 30, 2024

March 31, 2024

Debt securities held-to-maturity

Company purchased a note issued by a third-party investment company on August 24, 2022.

The principal amount of the note is $ 17,500,000 .

The note is renewable with one-year tenor on August 23, 2023 and 2.5 % p.a.

As of June 30, and March 31, 2024, the coupon receivable

was both $ 437,500 .

On August 23, 2023, the Company entered into an agreement to transfer the principal and coupon receivable to a third

According to the agreement, the consideration receivable was $ 17,937,500 and interest free.

The debt is guaranteed by Hongye Financial

Consulting (Shenzhen) Co., Ltd., the company controlled by our CEO, Mr.

consist of the following as of June 30, and March 31, 2024:

The note is renewable with one-year tenor on August 23, 2023 and 2.5 %

On August 23, 2023, the Company entered into an agreement to transfer the principal and coupon receivable to a third party.

During the quarter ended September 30, 2024, the Company received interest payment of $ 545,000 .

As of September 30, and March 31, 2024, the coupon receivable was $ 330,000

and $ 437,500 .

The debt is guaranteed by Hongye Financial Consulting (Shenzhen) Co., Ltd., the company controlled by our CEO, Mr.

consist of the following as of September 30, 2024 and March 31, 2024:

OF INVENTORIES

June 30, 2024

September 30, 2024

March 31, 2024

13 unchanged sentences

PREPAYMENTS AND OTHER RECEIVABLES

and other receivables consist of the following as of June 30 and March 31, 2024:

and other receivables consist of the following as of September 30 and March 31, 2024:

OF PREPAYMENTS AND OTHER RECEIVABLES

June 30, 2024

September 30, 2024

March 31, 2024

Receivable of consideration on disposal of subsidiaries

Receivable of consideration of convertible note issued (Note)

Receivable of interest income from debt security

Other receivables

Prepayments and other receivables

The coupon receivable of the debt security held-to-maturity was transferred together with the principal to a third party.

It is guaranteed

by Hongye Financial Consulting (Shenzhen) Co., Ltd., a company controlled by our CEO, Mr.

and other receivables

PROPERTY, PLANT AND EQUIPMENT

plant and equipment consists of the following as of June 30 and March 31, 2024:

plant and equipment consists of the following as of September 30 and March 31, 2024:

OF PROPERTY PLANT AND EQUIPMENT

June 30, 2024

September 30, 2024

March 31, 2024

2 unchanged sentences

Office equipment

plant and equipment gross

Property, plant and equipment gross

accumulated depreciation

Plant and equipment, net

expense for the three months ended June 30, 2024 and 2023 was $ 48,977 and $ 33,982 , respectively.

expense for the three and six months ended September 30, 2024 and 2023 was $ 26,942 and $ 23,019 , $ 75,919 and $ 57,002 , respectively.

LONG-TERM RECEIVABLES

6 unchanged sentences

The loans are guaranteed at no cost by the legal representative

As of June 30, 2024, the Company has borrowed $ 129,931 (RMB 944,255 ) (March 31, 2024:

$ 130,779 ) under this line of credit with

various annual interest rates from 4.34 % to 4.9 %.

As of September 30, 2024, the Company has borrowed $ 134,545 (RMB 944,255 ) (March 31, 2024:

$ 130,779 ) under this line of credit

with various annual interest rates from 4.34 % 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

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.

February 2023, XKJ entered into a facility agreement with China Construction Bank and obtained a line of revolving credit, which allows

4 unchanged sentences

that, the company did not exercise the agreement.

As of June 30, 2024, the Company has borrowed $ 254,563 (RMB1, 850,000 ) (March 31, 2024:

As of September 30, 2024, the Company has borrowed $ 163,862 (RMB 1,150,000 ) (March 31,

$ 110,799 ) under this line of credit with annual interest rate of 3.9 %.

3 unchanged sentences

Company to borrow up to approximately $ 68,800 (RMB 500,000 ) for daily operations.

As of June 30, 2024, the Company has borrowed $ 51,600

As of September 30, 2024, the Company has borrowed $ 44,527

(RMB 312,500 ) (March 31, 2024:

5 unchanged sentences

borrow up to approximately $ 137,602 (RMB 1,000,000 ) for daily operations.

As of June 30, 2024, the Company has borrowed $ 137,602 (RMB 1,000,000 )

(March 31, 2024:

As of September 30, 2024, the Company has borrowed $ 122,133

(RMB 857,143 ) (March 31, 2024:

$ 138,500 ) under this line of credit with annual interest rate of 8.244 %.

The loan facility will expire on March

The loan facility will expire

on March 22, 2026 .

Income Tax (“EIT”)

2 unchanged sentences

is not subject to income taxes.

It’s wholly owned subsidiary of Addentax Group Corp.

It is a 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.,

1 unchanged sentence

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, 2024 and 2023.

our wholly owned subsidiary, were incorporated in the PRC and is subject to the EIT tax rate of 25 %.

HK had no taxable income for the three months ended September 30, 2024 and 2023.

our wholly owned subsidiary, was 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 months ended June 30, 2024 and 2023.

the PRC has been made as YX had no taxable income for the three months ended September 30, 2024 and 2023.

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

6 unchanged sentences

had no United States taxable income for the three months

ended June 30, 2024 and 2023.

ended September 30, 2024 and 2023.

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

Six months ended

September 30,

PRC statutory tax rate

Computed expected benefits (expense)

Computed expected benefits

Temporary differences

33 unchanged sentences

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

by segment for the three months ended June 30, 2024 and 2023 are as follows:

by segment for the three and six months ended September 30, 2024 and 2023 are as follows:

OF SEGMENT REPORTING FOR REVENUE

from external customers

Garments manufacturing

Three months ended

Six months ended

September 30,

Revenues from external customers

Garments manufacturing segment

Logistics services segment

management and subleasing

Total of reportable segments

of reportable segments and consolidated revenue

manufacturing segment

from operations by segment for the three ended June 30, 2024 and 2023 are as follows:

Property management and subleasing

Total of reportable segments and consolidated revenue

Intersegment revenue

Garments manufacturing segment

from operations by segment for the three and six ended September 30, 2024 and 2023 are as follows:

SCHEDULE OF SEGMENT REPORTING FOR LOSS FROM OPERATION

Garment manufacturing

Three months ended

Six months ended

September 30,

Garments manufacturing segment

Logistics services segment

management and subleasing

Property management and subleasing

Total of reportable segments

consolidated income from operations

$ ( 217,884 )

$ ( 260,949 )

assets by segment as of June 30 and March 31, 2024 are as follows:

Corporate and other

Total consolidated income (loss) from operations

assets by segment as of September 30 and March 31, 2024 are as follows:

SCHEDULE OF SEGMENT REPORTING FOR ASSETS

September 30, 2024

March 31, 2024

10 unchanged sentences

Three months ended

June 30, 2024

September 30,

Six months ended

September 30,

September 30, 2024

March 31, 2024

17 unchanged sentences

of operations and comprehensive loss.

As of June 30, 2024, the balance of the Warrant was approximately $ 0.1 million (March 31, 2024:

As of September 30, 2024, the balance of the Warrant was approximately $ 0.3 million (March 31,

$ 0.25 million).

8 unchanged sentences

feature was $ 1.2 million.

As of June 30, 2024, the fair value of the conversion option was $ 0.04 million (March 31, 2024:

As of September 30, 2024, the fair value of the conversion option was $ 0.6 million (March 31, 2024:

$ 0.04 million).

12 unchanged sentences

The warrant was recognized as derivative liability and the initial fair value was $ 0.168 million.

Company’s convertible notes obligations were as the following for the three months ended June 39, 2024 and 2023:

In July 2024, the Company entered into agreement with the holder of the convertible notes to extend the maturity

date to July 4, 2025.

Other than the extension of the maturity date, there is no other amendment to the original note.

The original note

continued in full force and effect.

Company’s convertible notes obligations were as the following for the three and six months ended September 30, 2024 and 2023:

OF CONVERTIBLE NOTES OBLIGATION

value – beginning balance

to ordinary shares

of debt discount

debt discount and cost of issuance

value – ending balance

the three months ended June 30, 2024, no convertible note was converted into ordinary shares.

During the three months ended June 30,

2023, $ 1.5 million of the convertible notes was converted into approximately 2.3 million ordinary shares, with average effective conversion

price of $ 0.6795 per share.

Company’s derivative liabilities were as the following for the three months ended March 31, 2024 and 2023:

Three months ended

Six months ended

September 30,

Carrying value – beginning balance

Converted to ordinary shares

( 3,695,810 )

( 5,687,056 )

Amortization of debt discount

Deferred debt discount and cost of issuance

( 1,138,313 )

Interest charge

Carrying value – ending balance

the three and six months ended September 30, 2024, approximately $ 82,642 of the convertible note was converted into approximately 132,994

ordinary shares, with average effective conversion price of $ 0.6214 per share.

During the three and six months ended September 30, 2023,

approximately $ 0.8 million and $ 3.7 million of the convertible notes was converted into approximately 0.4 and 3.1 million ordinary shares,

with average effective conversion price of $ 2.264 and $ 3.1442 per share.

Company’s derivative liabilities were as the following for the three and six months ended September 30, 2024 and 2023:

OF DERIVATIVE LIABILITIES

Three months ended

Six months ended

September 30,

Derivative liabilities –Warrants

1 unchanged sentence

Marked to the market

( 2,550,128 )

( 1,744,826 )

Ending fair value

3 unchanged sentences

Remeasurement on change of convertible price

( 1,115,627 )

Marked to the market

3 unchanged sentences

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 June 30, 2024, with discounted rate of

Lease liabilities are measured at present value of the sum of remaining rental payments as of September 30, 2024, with discounted rate

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

10 unchanged sentences

Three months ended

September 30,

Six months ended

September 30,

Operating lease cost

3 unchanged sentences

Three months ended

September 30,

Six months ended

September 30,

Cash paid for amounts included in the measurement of lease liabilities

5 unchanged sentences

SCHEDULE OF MATURITY OF OPERATING LEASE

Years ending June 30

Years ending September 30

2029 and there after

8 unchanged sentences

OF FUTURE MINIMUM RENT RECEIVABLE

Years ending June 30

Years ending September 30

2029 and there after

8 unchanged sentences

of 660,000 unregistered shares of common stock to the Investors.

are 6,043,769 and 5,383,769 ordinary shares issued and outstanding at June 30, 2024 and March 31, 2024, respectively.

are 6,043,769 and 5,383,769 ordinary shares issued and outstanding at September 30, 2024 and March 31, 2024, respectively.

RISKS AND UNCERTAINTIES

17 unchanged sentences

currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date, which was 7.02 and 7.22

as of June 30, 2024 and March 31, 2024, respectively.

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

was 7.004 and 7.241 for the three months ended June 30, 2024 and 2023, respectively.

Equity is translated at historical exchange rates.

Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustments to

other comprehensive loss, a component of equity.

as of September 30, 2024 and March 31, 2024, respectively.

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

which was 7.16 and 7.004 , 7.20 and 7.12 for the three and six months ended September 30, 2024 and 2023, respectively.

Equity is translated

at historical exchange rates.

Any translation adjustments resulting are not included in determining net income but are included in foreign

exchange adjustments to other comprehensive loss, a component of equity.

Concentration

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

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

30, 2024 and March 31, 2024.

1 unchanged sentence

OF CONCENTRATION RISKS

June 30, 2024

September 30, 2024

March 31, 2024

high concentration as of June 30, 2024 was mainly due to business development of a large distributor of garments.

high concentration as of September 30, 2024 was mainly due to business development of a large distributor of garments.

services segment

June 30, 2024

September 30, 2024

March 31, 2024

management and subleasing segment

is no account receivable for Property management and subleasing segment as for June 30, and March 31, 2024.

is no account receivable for Property management and subleasing segment as for September 30, and March 31, 2024.

Concentration

the three months ended June 30, 2024, one customer from Logistics services segment provided more than 10 % of total revenue of the Company,

representing 16.1 % of total revenue of the Company for the three months.

the three months ended June 30, 2023, three customers from Logistics services segment provided more than 10 % of total revenue of the

Company, representing 40.6 % of total revenue of the Company for the three months.

the three months ended September 30, 2024, two customers from Logistics services segment provided more than 10 %

of total revenue of the Company, representing 31.4 %

of total revenue of the Company for the three months.

For the six months ended September 30, 2024, two customers from Logistics

services segment provided more than 10% of total revenue of the Company, representing 28.1 % of total revenue of the Company for the six

the three months ended September 30, 2023, one customer from Logistics services segment provided more than 10 %

of total revenue of the Company, representing 11.0 %

of total revenue of the Company for the three months.

For the six months ended September 30, 2023, two customers from Logistics

services segment provided more than 10% of total revenue of the Company, representing 23.9 % of total revenue of the Company for the six

Concentration

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

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

30, 2024 and 2023.

1 unchanged sentence

Three months ended

Six months ended

September 30,

Garment manufacturing segment

3 unchanged sentences

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

As of June 30, 2024, the total outstanding borrowings

As of September 30, 2024, the total outstanding borrowings

amounted to $ 465,067 (RMB 3,263,898 ) with various interest rate from 4.34 % to 16.2 % p.a.

SUBSEQUENT EVENTS

focus on the core businesses of the Group, the Company decided to dissolve one of its subsidiaries, Zhuang Hao Jia (Dongguan) Decoration

Engineering Co., Ltd.

The dissolution is in process up to the date of this report.

July 2024, the Company entered into agreement with the holder of the convertible notes to extend the maturity date to July 4, 2025.

than the extension of the maturity date, there is no other amendment to the original note.

The original note will continue in full force

are no other subsequent events have occurred that would require recognition or disclosure in the financial statements.

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