What changed in this filing

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Item 1. Financial Statements

2025-02-14 compared with 2024-11-14 · 220 added, 241 removed, 477 unchanged (49% of the section changed)

Financial Statements and Supplementary Data

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)

the three and nine months ended December 31, 2024 and 2023

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

Condensed Consolidated Statements of Income and Comprehensive Income for the three and nine months ended December 31, 2024 and 2023 (unaudited)

Condensed Consolidated Statements of Changes in Equity for the three and nine months ended December 31, 2024 and 2023 (unaudited)

Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 2024 and 2023 (unaudited)

Notes to Condensed Consolidated Financial Statements for the three and nine months ended December 31, 2024 and 2023 (unaudited)

AND SUBSIDIARIES

1 unchanged sentence

Dollars, except share data or otherwise stated)

September 30, 2024

March 31, 2024

CURRENT ASSETS

5 unchanged sentences

Advances to suppliers

Amount due from related party

Amount due from related

Total current assets

5 unchanged sentences

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

4 unchanged sentences

Total non-current liabilities

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 September 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 December 31 and March 31, 2024, respectively)

Additional paid-in capital

3 unchanged sentences

Statutory reserve

Accumulated other comprehensive loss

TOTAL LIABILITIES AND EQUITY

Accumulated other comprehensive

LIABILITIES AND EQUITY

accompanying notes to the unaudited condensed consolidated financial statements.

2 unchanged sentences

Dollars, except share data or otherwise stated)

Three months ended

September 30,

Six months ended

September 30,

COST OF REVENUES

4 unchanged sentences

Selling and marketing

General and administrative

and administrative

( 1,471,534 )

( 1,685,063 )

Total operating expenses

operating expenses

( 1,745,191 )

( 1,817,596 )

INCOME (LOSS) FROM OPERATIONS

(LOSS) FROM OPERATIONS

( 1,131,136 )

( 1,015,473 )

Fair value gain or loss

( 1,738,593 )

( 1,045,448 )

Interest income

1 unchanged sentence

( 1,030,725 )

( 2,426,064 )

Other income, net

(LOSS) INCOME BEFORE INCOME TAX EXPENSE

(LOSS) INCOME BEFORE INCOME

( 1,082,605 )

( 2,604,437 )

( 3,023,702 )

( 3,966,257 )

INCOME TAX EXPENSE

2 unchanged sentences

( 2,607,662 )

Foreign currency translation gain

TOTAL COMPREHENSIVE INCOME (LOSS)

( 3,028,364 )

( 3,973,983 )

currency translation gain

COMPREHENSIVE INCOME (LOSS)

$ ( 978,156 )

$ ( 2,648,928 )

$ ( 2,965,849 )

$ ( 3,925,497 )

EARNINGS PER SHARE

Basic and diluted

Weighted average number of shares outstanding – Basic and diluted

Weighted average number

of shares outstanding – Basic and diluted

accompanying notes to the unaudited condensed consolidated financial statements.

5 unchanged sentences

comprehensive

BALANCE AT JULY 1, 2023

BALANCE AT OCTOBER 1, 2023

$ ( 6,817,530 )

Issuance of new shares

Additional paid-in capital from conversion of convertible debts

Appropriation to Statutory Reserves

Foreign currency translation

Net income for the period

BALANCE AT SEPTEMBER 30, 2023

( 2,607,662 )

BALANCE AT JULY 1, 2024

( 2,607,662 )

Additional paid-in capital from conversion of convertible debts

BALANCE AT DECEMBER 31, 2023

$ ( 9,433,762 )

BALANCE AT OCTOBER 1, 2024

$ ( 10,511,833 )

Appropriation to Statutory Reserves

Foreign currency translation

Net income for the period

BALANCE AT SEPTEMBER 30, 2024

( 1,085,721 )

BALANCE AT DECEMBER 31, 2024

$ ( 11,598,216 )

BALANCE AT APRIL 1, 2023

6 unchanged sentences

Additional paid-in capital from conversion of convertible debts

Appropriation to Statutory Reserves

Foreign currency translation

2 unchanged sentences

( 3,973,983 )

BALANCE AT SEPTEMBER 30, 2023

BALANCE AT DECEMBER 31, 2023

$ ( 9,433,762 )

4 unchanged sentences

Additional paid-in capital from conversion of convertible debts

Appropriation to Statutory Reserves

Foreign currency translation

2 unchanged sentences

( 3,028,364 )

BALANCE AT SEPTEMBER 30, 2024

BALANCE AT DECEMBER 31, 2024

$ ( 11,598,216 )

4 unchanged sentences

Dollars, except share data or otherwise stated)

Six Months Ended September 30

CASH FLOWS FROM OPERATING ACTIVITIES:

Months Ended December 31

CASH FLOWS FROM OPERATING

$ ( 3,028,364 )

$ ( 3,973,983 )

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

Adjustments to reconcile net income (loss)

to net cash used in operating activities:

Non-cash financial cost

1 unchanged sentence

Fair value gain or loss

( 1,566,592 )

Loss on debts extinguishment

Gain on bargain purchase

Loss from sale of property and equipment

Loss from sale of property

and equipment

Loss on disposal of subsidiary

4 unchanged sentences

Accounts payables

Accrued expenses and other payables

Advances from customers

Accrued expenses and other

from customers

Net cash provided by (used in) operating activities

$ ( 1,521,802 )

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment and intangible assets

Cash decreased in disposal of subsidiary

CASH FLOWS FROM INVESTING

Purchase of property and equipment and intangible

Cash from acquired investee

Cash decreased in disposal

of subsidiary

Net cash used in investing activities

$ ( 153,739 )

CASH FLOWS FROM FINANCING ACTIVITIES:

CASH FLOWS FROM FINANCING

Proceeds from bank borrowings

Repayment of bank borrowings

Proceeds from related party borrowings

1 unchanged sentence

( 5,341,671 )

Release of restricted cash

Proceeds from bank borrowings

Repayment of bank borrowings

Cash advance to related parties

1 unchanged sentence

Repayment from related parties

Proceeds from issue of ordinary shares

Release of restricted cash

Redemption of convertible debt

Proceeds from issue of

ordinary shares

Net cash provided by (used in) financing activities

$ ( 986,341 )

NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH

Effect of exchange rate changes on cash and cash equivalents

Cash and restricted cash, beginning of the period

CASH AND RESTRICTED CASH, END OF THE PERIOD

Supplemental disclosure of cash flow information:

NET INCREASE (DECREASE)

IN CASH AND RESTRICTED CASH

Effect of exchange rate changes on cash and

cash equivalents

Cash and restricted cash,

beginning of the period

AND RESTRICTED CASH, END OF THE PERIOD

Supplemental disclosure

of cash flow information:

Cash paid during the period for interest

Cash paid during the period for income tax

Supplemental disclosure of non-cash investing and financing activities:

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

Supplemental disclosure

of non-cash investing and financing activities:

Right-of-use assets

obtained in exchange for operating lease obligations

accompanying notes to the unaudited condensed consolidated financial statements.

28 unchanged sentences

however actual results could differ materially from those estimates.

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

is no change in the accounting policies for the nine months ended December 31, 2024.

issued accounting pronouncements

18 unchanged sentences

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.

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 of YBY.

After disposition, YBY became third party to the

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

The Company will carry on the garment manufacturing segment business through

other subsidiaries.

The disposition of YBY did not qualify as discontinued operations.

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

1 unchanged sentence

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

Financial position of YBY

August 31, 2024,

position of YBY

date of disposal

6 unchanged sentences

OF RELATED PARTIES RELATIONSHIP WITH COMPANY

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

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, ceased to be related party at August 31, 2024 when YBY was disposed.

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 September 30, 2024 and March 31, 2024:

OF AMOUNT DUE FROM RELATED PARTY

Amount due from related party

September 30, 2024

March 31, 2024

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

OF RELATED PARTY BALANCES

from related party

Zhida Hong (1)

1 unchanged sentence

Amount due from related

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 Yang Bihua was mainly due to the cash paid in advance to Yang Bihua.

During the quarter ended

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

September 30, 2024

March 31, 2024

Hongye Financial Consulting (Shenzhen) Co., Ltd.

Related party

Hongye Financial Consulting (Shenzhen)

Dewu Huang (3)

2 unchanged sentences

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

During the quarter ended December 31, 2024, the Company provided a short term loan of approximately $ 0.175 million to Hong

Zhida and received repayment of approximately $ 0.277 million from him.

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

During the quarter ended

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.

December 31, 2024, the Company provided a short term loan of approximately $ 0.4 million to Yang Bihua and received repayment of approximately

$ 0.1 million from him.

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

4 unchanged sentences

OF DEBT SECURITIES HELD TO MATURITY

September 30, 2024

March 31, 2024

Debt securities held-to-maturity

1 unchanged sentence

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 %

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:

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

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 December 31, 2024, the Company received interest

payment of $ 330,000 .

As of December 31, and March 31, 2024, the coupon receivable was $ Nil 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 December 31, 2024 and March 31, 2024:

OF INVENTORIES

September 30, 2024

March 31, 2024

Raw materials

Work in progress

Finished goods

10 unchanged sentences

PREPAYMENTS AND OTHER RECEIVABLES

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

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

OF PREPAYMENTS AND OTHER RECEIVABLES

September 30, 2024

March 31, 2024

Receivable of consideration on disposal of subsidiaries

Receivable of interest income from debt security

Receivable of consideration on disposal

of subsidiaries

Receivable of interest income from debt

Other receivables

1 unchanged sentence

PROPERTY, PLANT AND EQUIPMENT

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

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

OF PROPERTY PLANT AND EQUIPMENT

September 30, 2024

March 31, 2024

Production plant

3 unchanged sentences

accumulated depreciation

Plant and equipment, net

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.

Plant and equipment,

expense for the three and nine months ended December 31, 2024 and 2023 was $ 23,262 and $ 29,004 , $ 99,181 and $ 86,005 , respectively.

LONG-TERM RECEIVABLES

6 unchanged sentences

The loans are guaranteed at no cost by the legal representative

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

As of December 31, 2024, the Company has borrowed $ 129,360 (RMB 944,255 ) (March 31, 2024:

$ 130,779 ) under this line of credit

10 unchanged sentences

The first drawdown was in October 2023.

that, the company did not exercise the agreement.

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 %.

December 31, 2024, the Company has borrowed $ 356,192 (RMB 2,600,000 ) (March 31, 2024:

$ 110,799 ) under this line of credit with annual

interest rate of 3.9 %.

The revolving credit facility will be expired on February 1, 2026 .

2 unchanged sentences

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

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

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

As of December 31, 2024, the outstanding balance of

the loan was $ 34,249 (RMB 250,000 ) (March 31, 2024:

$ 60,593 ) under this line of credit with annual interest rate of 16.2 %.

The loan facility will be expired

on December 26, 2025 .

The loan facility

will be expired on December 26, 2025 .

March 2024, PF entered into a new facility agreement with WeBank Co., Ltd.

1 unchanged sentence

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

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

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

As of December 31, 2024, the outstanding balance of the loan

was $ 97,855 (RMB 714,286 ) (March 31, 2024:

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

The loan facility will expire

on March 22, 2026 .

The loan facility

will expire on March 22, 2026 .

Income Tax (“EIT”)

6 unchanged sentences

No provision for income taxes in Hong Kong has been made as Yingxi

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

HK had no taxable income for the three and nine months ended December 31, 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 September 30, 2024 and 2023.

the PRC has been made as YX had no taxable income for the three and nine months ended December 31, 2024 and 2023.

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 months

ended September 30, 2024 and 2023.

had no United States taxable income for the three and nine

months ended December 31, 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,

Nine months ended

PRC statutory tax rate

11 unchanged sentences

value of sales and is payable by the purchaser.

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

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.

The subsidiaries HSW, AOT 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 YXPF enjoyed the preferential

18 unchanged sentences

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

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

by segment for the three and nine months ended December 31, 2024 and 2023 are as follows:

OF SEGMENT REPORTING FOR REVENUE

Revenues from

external customers

Three months ended

Six months ended

September 30,

Revenues from external customers

Nine months ended

Revenues from

external customers

Garments manufacturing segment

Logistics services segment

Property management and subleasing

Total of reportable segments and consolidated revenue

Property management and

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:

Garments manufacturing

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

SCHEDULE OF SEGMENT REPORTING FOR LOSS FROM OPERATION

Three months ended

Six months ended

September 30,

Nine months ended

Garments manufacturing segment

Logistics services segment

Property management and subleasing

Property management and

Total of reportable segments

$ ( 256,777 )

$ ( 240,109 )

$ ( 474,661 )

$ ( 120,383 )

Corporate and other

Total consolidated income (loss) from operations

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

consolidated income (loss) from operations

( 1,131,136 )

( 1,015,473 )

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

SCHEDULE OF SEGMENT REPORTING FOR ASSETS

September 30, 2024

March 31, 2024

Garment manufacturing segment

Logistics services segment

Property management and subleasing

Property management

and subleasing

Total of reportable segments

Corporate and other

Consolidated total assets

Consolidated total

Company operates predominantly in China.

2 unchanged sentences

SCHEDULE OF GEOGRAPHICAL INFORMATION

Three months ended

September 30,

Six months ended

September 30,

September 30, 2024

March 31, 2024

Long-Lived Assets

16 unchanged sentences

of operations and comprehensive loss.

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

As of December 31, 2024, the balance of the Warrant was approximately $ 0.7 million (March 31, 2024:

$ 0.25 million).

8 unchanged sentences

feature was $ 1.2 million.

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

As of December 31, 2024, the fair value of the conversion option was $ 0.8 million (March 31, 2024:

$ 0.04 million).

4 unchanged sentences

OF FINANCIAL INSTRUMENTS

As of January 4, 2023

Derivative liabilities – Fair value of the Warrants

Derivative liabilities – Embedded conversion feature

Derivative liabilities –

Fair value of the Warrants

Derivative liabilities – Embedded conversion

Convertible Note

3 unchanged sentences

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

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:

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 continued in full force

Company’s convertible notes obligations were as the following for the three and nine months ended December 31, 2024 and 2023:

OF CONVERTIBLE NOTES OBLIGATION

Three months ended

Six months ended

September 30,

Carrying value – beginning balance

Nine months ended

Carrying value – beginning

Converted to ordinary shares

1 unchanged sentence

( 5,687,056 )

Amortization of debt discount

3 unchanged sentences

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:

the three and nine months ended December 31, 2024, approximately $ Nil and $ 82,642 of the convertible note was converted into approximately

Nil and 132,994 ordinary shares, with average effective conversion price of $ 0.6214 per share.

During the three and nine months ended

December 31, 2023, approximately $ 47,128 and $ 3.7 million of the convertible notes was converted into approximately 0.05 and 3.1 million

ordinary shares, with average effective conversion price of $ 1.0245 and $ 1.4896 per share.

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

OF DERIVATIVE LIABILITIES

Three months ended

Six months ended

September 30,

Derivative liabilities –Warrants

Nine months ended

Derivative liabilities

Beginning balance

1 unchanged sentence

( 3,053,446 )

( 1,744,826 )

Ending fair value

Derivative liabilities – Embedded conversion feature

Derivative liabilities

– Embedded conversion feature

Beginning balance

2 unchanged sentences

( 1,115,627 )

Marked to the market

Ending fair value

Total Derivative fair value at end of period

Total Derivative fair

value at end of period

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 September 30, 2024, with discounted rate

Lease liabilities are measured at present value of the sum of remaining rental payments as of December 31, 2024, with discounted rate

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

1 unchanged sentence

cost are classified within operating activities in the statement of cash flows.

Company leases its head office.

The lease period is 5 years with an option to extend the lease.

The Company leases its plant and dormitory

for 4.5 years with an option to extend the lease.

The Company leased several floors in a commercial building for its sublease and property

management services business for 16 years with an option to extend the lease.

Company leases its plant and dormitory for 4.5 years with an option to extend the lease.

The Company leased several floors in a commercial

building for its sublease and property management services business for 16 years with an option to extend the lease.

following table summarizes the components of lease expense:

SCHEDULE OF LEASE EXPENSES

Three months ended

September 30,

Six months ended

September 30,

Operating lease cost

2 unchanged sentences

SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES

Three months ended

September 30,

Six months ended

September 30,

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

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

following table summarizes the maturity of operating lease liabilities:

SCHEDULE OF MATURITY OF OPERATING LEASE

Years ending September 30

Years ending December 31

2029 and there after

8 unchanged sentences

OF FUTURE MINIMUM RENT RECEIVABLE

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

are 6,043,769 and 5,383,769 ordinary shares issued and outstanding at December 31, 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 7.30 and 7.22

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.

as of December 31, 2024 and March 31, 2024, respectively.

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

was 7.19 and 7.15 , 7.20 and 7.15 for the three and nine months ended December 31, 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

1 unchanged sentence

Concentration

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

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

31, 2024 and March 31, 2024.

1 unchanged sentence

OF CONCENTRATION RISKS

September 30, 2024

March 31, 2024

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

high concentration as of December 31, 2024 was mainly due to business development of a large distributor of garments.

services segment

September 30, 2024

March 31, 2024

management and subleasing segment

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

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

Concentration

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

the three months ended December 31, 2024, two customers from Logistics services segment provided more than 10 % of total revenue of the

Company, representing 37.6 % of total revenue of the Company for the three months.

For the nine months ended December 31, 2024, two customers

from Logistics services segment provided more than 10 % of total revenue of the Company, representing 40.7 % of total revenue of the Company

for the nine months.

the three months ended December 31, 2023, two customer from Logistics services segment provided more than 10 % of total revenue of the

Company, representing 31.8 % of total revenue of the Company for the three months.

For the nine months ended December 31, 2023, one customer

from Logistics services segment provided more than 10 % of total revenue of the Company, representing 16.5 % of total revenue of the Company

for the nine months.

Concentration

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.

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

months ended December 31, 2024 and 2023.

OF PURCHASES FROM SUPPLIERS

Three months ended

Six months ended

September 30,

Nine months ended

Garment manufacturing segment

3 unchanged sentences

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

As of September 30, 2024, the total outstanding borrowings

As of December 31, 2024, the total outstanding borrowings

amounted to $ 617,656 (RMB 4,508,541 ) with various interest rate from 4.34 % to 16.2 % p.a.

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