What changed in this filing

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Item 1. Financial Statements

2025-11-14 compared with 2025-08-14 · 301 added, 355 removed, 316 unchanged (67% of the section changed)

Financial Statements.

the three months ended June 30, 2025 and 2024

Condensed Consolidated Balance sheets as of June 30, 2025 and March 31, 2025 (unaudited)

Condensed Consolidated Statements of Income and Comprehensive Income for the three months ended June 30, 2025 and 2024 (unaudited)

Condensed Consolidated Statements of Changes in Equity for the three months ended June 30, 2025 and 2024 (unaudited)

Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2025 and 2024 (unaudited)

Notes to Condensed Consolidated Financial Statements for the three months ended June 30, 2025 and 2024 (unaudited)

the six months ended September 30, 2025 and 2024

Consolidated Balance sheets as of September 30, 2025 and March 31, 2025 (unaudited)

Condensed Consolidated Statements of Income and Comprehensive Income for the six months ended September 30, 2025 and 2024 (unaudited)

Consolidated Statements of Changes in Equity for the six months ended September 30, 2025 and 2024 (unaudited)

Consolidated Statements of Cash Flows for the six months ended September 30, 2025 and 2024 (unaudited)

to Condensed Consolidated Financial Statements for the six months ended September 30, 2025 and 2024 (unaudited)

AND SUBSIDIARIES

1 unchanged sentence

Dollars, except share data or otherwise stated)

June 30, 2025

March 31, 2025

and cash equivalents

receivables, net

securities held-to-maturity

and other receivables

due from related party

current assets

Cash and cash equivalents

Restricted cash

Accounts receivables, net

Debt securities held-to-maturity

Prepayments and other receivables

Advances to suppliers

Amount due from related party

Total current assets

and equipment, net

lease right of use asset

non-current assets

Plant and equipment, net

Operating lease right of use asset

Long-term prepayments

Total non-current assets

LIABILITIES AND EQUITY

due to related parties

from customers

expenses and other payables

lease liability current portion

current liabilities

Short-term loan

Accounts payable

Amount due to related parties

Advances from customers

Accrued expenses and other payables

Operating lease liability current portion

Total current liabilities

lease liability

non-current liabilities

Convertible debts

Derivative liabilities

Operating lease liability

Total non-current liabilities

TOTAL LIABILITIES

Common stock ($ 0.001 par value, 250,000,000 shares authorized, 10,090,963 and 6,043,769 shares issued and outstanding at June 30 and March 31, 2025, respectively)

Additional paid-in capital

Accumulated Deficit

stock ($ 0.001 par value, 250,000,000 shares authorized, 11,715,348 and 6,043,769 shares issued and outstanding at September 30 and

March 31, 2025, respectively)

paid-in capital

( 14,159,065 )

( 13,663,790 )

Statutory reserve

Accumulated other comprehensive loss

TOTAL LIABILITIES AND EQUITY

other comprehensive loss

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

COST OF REVENUES

( 1,231,485 )

and marketing

and administrative

( 1,208,980 )

operating expenses

Selling and marketing

General and administrative

Total operating expenses

(LOSS) INCOME FROM OPERATIONS

Fair value gain or loss

Interest income

Interest expenses

Other income (expense), net

(LOSS) INCOME BEFORE INCOME TAX EXPENSE

( 1,220,284 )

INCOME TAX EXPENSE

NET (LOSS) INCOME

( 1,076,097 )

Foreign currency translation gain (loss)

TOTAL COMPREHENSIVE (LOSS) INCOME

(LOSS) FROM OPERATIONS

value gain or loss

INCOME BEFORE INCOME TAX EXPENSE

( 1,576,764 )

FROM CONTINUING OPERATIONS, NET OF INCOME TAXES

( 1,578,291 )

EARNINGS (LOSS) PER SHARE

Net Loss per share – basic and diluted

Weighted average number of shares outstanding – Basic and diluted

(loss) on discontinued operations

(LOSS) INCOME

( 1,942,643 )

currency translation gain

COMPREHENSIVE INCOME (LOSS)

$ ( 137,623 )

$ ( 780,992 )

$ ( 572,097 )

$ ( 1,987,693 )

PER SHARE FROM CONTINUING OPERATIONS - Basic and diluted

(LOSS) PER SHARE FROM DISCONTINUED OPERATIONS - Basic and diluted

average number of shares outstanding – Basic and diluted

accompanying notes to the unaudited condensed consolidated financial statements.

2 unchanged sentences

Dollars, except share data or otherwise stated)

Retained earnings

(accumulated deficit)

comprehensive

BALANCE AT MARCH 31, 2024

AT JULY 1, 2024

$ ( 9,790,301 )

paid-in capital from conversion of convertible debts

currency translation

income for the period

AT SEPTEMBER 30, 2024

$ ( 10,511,833 )

BALANCE AT JULY 1,

$ ( 14,056,228 )

Issuance of new shares

Foreign currency translation

Net income for the period

paid-in capital from conversion of convertible debts

currency translation

income for the period

AT SEPTEMBER 30, 2025

$ ( 14,159,065 )

BALANCE AT APRIL

$ ( 8,569,190 )

BALANCE AT JUNE 30, 2024

Issuance of new shares

paid-in capital from conversion of convertible debts

currency translation

income for the period

( 1,942,643 )

BALANCE AT MARCH 31, 2025

( 1,942,643 )

AT SEPTEMBER 30, 2024

$ ( 10,511,833 )

BALANCE AT APRIL

$ ( 13,663,790 )

Issuance of new shares

Additional paid-in capital from conversion of convertible debts

Adjustment of Statutory reserve

Foreign currency translation

Net income for the period

BALANCE AT JUNE 30, 2025

paid-in capital from conversion of convertible debts

for Statutory reserve

currency translation

income for the period

AT SEPTEMBER 30, 2025

$ ( 14,159,065 )

4 unchanged sentences

Dollars, except share data or otherwise stated)

Three Months Ended June 30

Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

3 unchanged sentences

Non-cash financial cost

Stock-Based Compensation Expense

Investment income

Fair value gain or loss

Gain on debts extinguishment

Loss from sale of property and equipment

9 unchanged sentences

$ ( 967,518 )

$ ( 193,185 )

CASH FLOWS FROM INVESTING ACTIVITIES

2 unchanged sentences

Net cash used in investing activities

$ ( 272,009 )

$ ( 115,651 )

CASH FLOWS FROM FINANCING ACTIVITIES:

8 unchanged sentences

Proceeds from issue of ordinary shares

Redemption of convertible debt

Release of restricted cash

11 unchanged sentences

ORGANIZATION AND BUSINESS ACQUISITIONS

and its subsidiaries (“ATXG” or the “Company”) are engaged in the business of garment manufacturing, providing logistic services, property leasing and management services in the People’s Republic of China

(“PRC” or “China”).

and its subsidiaries (“ATXG” or the “Company”) are engaged in the business of garment manufacturing,

providing logistic services, property leasing and management services in the People’s Republic of China (“PRC” or “China”).

BASIS OF PRESENTATION

22 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, 2025.

compensation expense for all share-based payment awards made to employees and directors, including stock options and restricted stock

units (“RSUs”) is measured and recognized based on the fair value of the awards on the date of grant.

The compensation expense,

net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period, which is generally the vesting

period of the award.

The fair value of RSUs is determined based on the closing market price of our common stock on the date of grant.

is no change in the accounting policies for the six months ended September 30, 2025.

issued accounting pronouncements

17 unchanged sentences

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

DISPOSITION OF SUBSIDIARIES

DISPOSITION OF SUBSIDIARIES AND DISCONTINUED OPERATIONS

May 2025, the Company disposed of Dongguan Aotesi Garments Co., Ltd., (“AOT”).

6 unchanged sentences

position of AOT

date of disposal

Current assets

Current liabilities

consideration was $ 13,829 , resulting in a loss of $ 12,137 recognized on the disposal.

end of June 2025, the Company disposed of Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”) to the management

of the subsidiary.

The property management and subleasing business was then classified as discontinued operation.

Comparative period amounts have been restated retrospectively.

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

Management and Subleasing Business Segment

position of HX

( 1,588,983 )

consideration was $ 13,829 , with the reversal of over-accrual of lease payment, resulting in an income of $ 6,857 recognized on the disposal.

RELATED PARTY TRANSACTIONS

9 unchanged sentences

Financial Consulting (Shenzhen) Co., Ltd.

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

Company had the following related party balances as of June 30, 2025 and March 31, 2025:

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

a third party.

Company had the following related party balances as of September 30, 2025 and March 31, 2025:

SCHEDULE OF RELATED PARTY BALANCES

from related party

Zhida Hong ( 1 )

Bihua Yang ( 2 )

Amount due from related party

Related party

Hongye Financial Consulting (Shenzhen)

Jinlong Huang

Amount due to related party

due from related party

party borrowings

Financial Consulting (Shenzhen) Co., Ltd.

due to related party

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

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

During the quarter ended

June 30, 2025, the Company provided a short term loan of approximately $ 0.23

million to Bihua Yang and received repayment of approximately $ 0.1 3

decrease of related party debt from Bihua Yang was mainly due to the repayment from Bihua Yang.

During the quarter ended September

30, 2025, the Company provided a short term loan of approximately $ 0.3 million to Bihua Yang and received repayment of approximately

$ 0.6 million from him.

During the six months ended September 30, 2025, the Company provided a short term loan of approximately $ 0.5

million to Bihua Yang and received repayment of approximately $ 0.7 million from him.

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

1 unchanged sentence

SCHEDULE OF DEBT SECURITIES HELD TO MATURITY

Debt securities held-to-maturity

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 was $ 17,500,000 .

The note was renewable with a one-year term on August 23, 2023 and it was a 2.5 %

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

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

24, 2024, a Supplemental Agreement to the note was signed to extend the maturity date to August 24, 2025.

As of June 30, and March 31,

2025, the coupon receivable was approximately $ 255,000 and $ 365,000 .

consist of the following as of June 30, and March 31, 2025:

The note was renewable with a one-year term on August 23, 2023 and it was a 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.

The debt is guaranteed by Hongye Financial Consulting

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

On August 24, 2024, a Supplemental Agreement to the note was

signed to extend the maturity date to August 24, 2025.

As of September 30, and March 31, 2025, the coupon receivable was $ 437,500 and

consist of the following as of September 30, and March 31, 2025:

SCHEDULE OF INVENTORIES

Raw materials

Work in progress

Finished goods

Total inventories

ADVANCES TO SUPPLIERS

8 unchanged sentences

PREPAYMENTS AND OTHER RECEIVABLES

and other receivables consist of the following as of June 30 and March 31, 2025:

and other receivables consist of the following as of September 30 and March 31, 2025:

SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES

Receivable of consideration on disposal

of subsidiaries

Coupon receivable of debt security held-to-maturity

Loan to third party

Other receivables

Prepayments and other receivables

of consideration on disposal of subsidiaries

receivable of debt security held-to-maturity

to third party

and other receivables

PROPERTY, PLANT AND EQUIPMENT

plant and equipment consists of the following as of June 30 and March 31, 2025:

plant and equipment consists of the following as of September 30 and March 31, 2025:

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT

Production plant

Motor vehicles

Office equipment

Property, plant and equipment gross

accumulated depreciation

Plant and equipment,

expense for the three months ended June 30, 2025 and 2024 was $ 20,304 and $ 48,977 , respectively.

and equipment, net

expense for the three and six months ended September 30, 2025 and 2024 was $ 17,429 and $ 26,942 , $ 37,733 and $ 75,919 , respectively.

SHORT-TERM BANK LOAN

2 unchanged sentences

The loans are guaranteed at no cost by the legal representative

As of June 30, 2025, the Company has borrowed $ 131,656 (RMB 944,255 ) (March 31, 2025:

$ 130,051 ) under this line of credit with

various annual interest rates from 4.34 % to 4.9 %.

As of September 30, 2025, the Company has borrowed $ 132,608 (RMB 944,255 ) (March 31, 2025:

$ 130,051 ) 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

2 unchanged sentences

The loans are guaranteed by the legal representative of XKJ at no cost.

As of June 30, 2025, the Company has borrowed

As of September 30, 2025, the Company has borrowed

$ 470,462 (RMB 3,350,000 ) (March 31, 2025:

2 unchanged sentences

facility will expire on February 1, 2026.

December 2023, Shenzhen Yingxi Peng Fa Logistic Co., Ltd (“ PF”) entered into a facility agreement with Sichuan Xinwang Bank Co., Ltd.

and obtained a line of credit, which allows the Company to

borrow up to approximately $ 69,714

(RMB 500,000 )

for daily operations.

December 2023, Shenzhen Yingxi Peng Fa Logistic Co., Ltd (“PF”) entered into a facility agreement with Sichuan Xinwang Bank

and obtained a line of credit, which allows the Company to borrow up to approximately $ 69,714 (RMB 500,000 ) for daily operations.

The annual interest rate of this line of credit is 16.2 %.

The loan facility will expire on December 26, 2025.

As of June 30, 2025, the Company has fully repaid this loan facility (March

As of September 30, 2025,

the Company has fully repaid this loan facility (March 31, 2025:

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

1 unchanged sentence

borrow up to approximately $ 139,429 (RMB 1,000,000 ) for daily operations.

As of June 30, 2025, the Company has borrowed $ 59,755 (RMB 428,571 )

As of September 30, 2025, the Company has borrowed $ 40,125 (RMB 285,714 )

(March 31, 2025:

3 unchanged sentences

Company operates in the PRC and files tax returns in the PRC.

Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of Seychelles,

is not subject to income taxes.

Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of Seychelles, is not subject

to income taxes.

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.,

HK (Yingxi Industrial Chain Investment Co., Ltd.) was incorporated in Hong Kong, 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, 2025 and 2024.

Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd (“ YX”),

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, 2025 and 2024.

HK had no taxable income for the six months ended September 30, 2025 and 2024.

Qianhai Yingxi Industrial Chain Services Co., Ltd (“YX”), 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 six months

ended September 30, 2025 and 2024.

is governed by the Income Tax Laws of the PRC.

All YX’s operating companies were subject to progressive EIT rates from 5 %

All YX’s operating companies were subject to progressive EIT rates from 5 % to 15 %

in 2025 and 2024.

preferential tax rate will expire at end of year 2025 and the EIT rate will be 25% from year 2026.

The preferential tax rate will expire at end of year 2025 and the EIT rate will be 25% from year 2026 .

parent entity, Addentax Group Corp.

2 unchanged sentences

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

taxable income for the three months ended June

30, 2025 and 2024.

taxable income for the six months ended September 30, 2025

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

SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

Three months ended

PRC statutory tax rate

Computed expected benefits (expense)

Temporary differences

Permanent difference

Changes in valuation allowance

Income tax expense

statutory tax rate

expected benefits (expense)

in valuation allowance

tax assets had not been recognized in respect of any potential tax benefit that may be derived from non-capital loss carry forward and

3 unchanged sentences

Added Tax (“VAT”)

accordance with the relevant taxation laws in the PRC, the normal VAT rate for domestic sales is 13 %,

which is levied on the invoiced value of sales and is payable by the purchaser.

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 a logistics company, except that PF enjoys the preferential VAT rate of 3 %

in 2025 and 2024.

XKJ and PF are required to pay the full amount of VAT calculated at the applicable VAT

rate of the invoiced value of sales as required.

A credit is available whereby VAT paid on gasoline and toll charges can be used to

offset the VAT due on service income.

accordance with the relevant taxation laws in the PRC, the normal VAT rate for domestic sales is 13 %, which is levied on the invoiced

value of sales and is payable by the purchaser.

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 a logistics company, except that PF enjoys the preferential

VAT rate of 3 % in 2025 and 2024.

XKJ and PF are required to pay the full amount of VAT calculated at the applicable VAT rate of the invoiced

value of sales as required.

A credit is available whereby VAT paid on gasoline and toll charges can be used to offset the VAT due on

service income.

CONSOLIDATED SEGMENT DATA

3 unchanged sentences

The Company reports financial and operating

information in the following three segments:

information in the following six segments:

manufacturing .

4 unchanged sentences

in garment market.

At end of June 2025, the Company disposed of HX to the management of the subsidiary.

The property management and

subleasing business was then classified as discontinued operation.

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

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

by segment for the three months ended June 30, 2025 and 2024 are as follows:

by segment for the three and six months ended September 30, 2025 and 2024 are as follows:

SCHEDULE OF SEGMENT REPORTING FOR REVENUE

1 unchanged sentence

from external customers

Garments manufacturing segment

Logistics services segment

Property management

and subleasing

Total of reportable segments

Corporate and other

Total of reportable

segments and consolidated revenue

Intersegment revenue

Garments manufacturing

from operations by segment for the three ended June 30, 2025 and 2024 are as follows:

manufacturing segment

services segment

of reportable segments and consolidated revenue

manufacturing segment

from operations by segment for the three and six ended September 30, 2025 and 2024 is as follows:

SCHEDULE OF SEGMENT REPORTING FOR INCOME FROM OPERATION

Three months ended

Garment manufacturing segment

Logistics services segment

Property management and

Total of reportable segments

Corporate and other

consolidated income from operations

$ ( 627,207 )

$ ( 505,016 )

assets by segment as of June 30 and March 31, 2025 are as follows:

manufacturing segment

services segment

of reportable segments

consolidated income (loss) from operations

assets by segment as of September 30 and March 31, 2025 are as follows:

SCHEDULE OF SEGMENT REPORTING FOR ASSETS

Garment manufacturing segment

Logistics services segment

Property management

and subleasing

Total of reportable segments

Corporate and other

Consolidated total

manufacturing segment

services segment

management and subleasing

of reportable segments

Company operates predominantly in China.

2 unchanged sentences

SCHEDULE OF GEOGRAPHICAL INFORMATION

Long-Lived Assets

Three months ended

September 30,

Six months ended

September 30,

FINANCIAL INSTRUMENTS

1 unchanged sentence

a net proceed of $ 15,000,000 in consideration of the issuance of:

secured convertible notes in the aggregate original principal amount of approximately $ 16.7

million with an interest rate of 5 %

per annum (the “Convertible Notes”);

secured convertible notes in the aggregate original principal amount of approximately $ 16.7 million with an interest rate of 5 % per

annum (the “Convertible Notes”);

The Convertible Notes matured on July 4, 2024 .

The conversion price is $ 1.25 ,

subject to adjustment under several conditions.

(“Warrants”) to purchase up to approximately 16.1

million shares of common stock of the Company (the “Common Stock”) until on or prior to 11:59 p.m.

(New York time) on

the five-year anniversary of the closing date at an exercise price of $ 1.25

per share, also subject to adjustment under several conditions.

The conversion price is $ 1.25 , subject

to adjustment under several conditions.

(“Warrants”) to purchase up to approximately 16.1 million shares of common stock of the Company (the “Common Stock”)

until on or prior to 11:59 p.m.

(New York time) on the five-year anniversary of the closing date at an exercise price of $ 1.25 per

share, also subject to adjustment under several conditions.

Warrants are considered a freestanding instrument issued together with the Convertible Notes and measured at their issuance date fair

Proceeds received were first allocated to the Warrants based on their initial fair value.

The initial fair value of the

Warrants was $ 3.9

The initial fair value of the Warrants

was $ 3.9 million.

The Warrants were marked to the market with the changes in the fair value of warrant recorded in the consolidated statements

of operations and comprehensive loss.

As of June 30, 2025, the balance of the Warrants was approximately $ 0.8

million (March 31, 2025:

Convertible Notes are classified as a liability and is subsequently stated at amortized cost with any difference between the initial carrying

value and the repayment amount as interest expenses using the effective interest method over the period from the issuance date to the

maturity date.

The embedded conversion feature should be bifurcated and separately accounted for using fair value, as this embedded feature

is considered not clearly and closely related to the debt host.

The bifurcated conversion feature was recorded at fair value with the

changes recorded in the consolidated statements of operations and comprehensive loss.

The initial fair value of the embedded conversion

feature was $ 1.2 million.

As of June 30, 2025, the fair value of the conversion option was $ 0.03 million (March 31, 2025:

As of September 30, 2025, the balance of the Warrants was approximately $ 0.8 million (March 31,

$ 1.0 million).

Convertible Notes are classified as a liability and is subsequently stated at amortized cost with any difference between the initial

carrying value and the repayment amount as interest expenses using the effective interest method over the period from the issuance date

to the maturity date.

The embedded conversion feature should be bifurcated and separately accounted for using fair value, as this embedded

feature is considered not clearly and closely related to the debt host.

The bifurcated conversion feature was recorded at fair value

with the changes recorded in the consolidated statements of operations and comprehensive loss.

The initial fair value of the embedded

conversion feature was $ 1.2 million.

As of September 30, 2025, the fair value of the conversion option was $ Nil (March 31, 2025:

Company determined that the other embedded features do not require bifurcation as they either are clearly and closely related to the

3 unchanged sentences

SCHEDULE OF FINANCIAL INSTRUMENTS

January 4, 2023

Derivative liabilities –

Fair value of the Warrants

Derivative liabilities – Embedded conversion

Convertible Note s

January 2023, the Company also granted to the placement agent a warrant as partial payment of an agency fee to purchase 0.7

million shares of Common Stock of the Company.

The warrant matures in five years with an exercise price of $ 1.25

subject to adjustments under different conditions.

The warrant was recognized as a derivative liability with an initial fair value

Company’s Convertible Notes’ obligations were as the following for the three months ended June 30, 2025 and 2024:

liabilities – Fair value of the Warrants

liabilities – Embedded conversion feature

January 2023, the Company also granted to the placement agent a warrant as partial payment of an agency fee to purchase 0.7 million shares

of Common Stock of the Company.

The warrant matures in five years with an exercise price of $ 1.25 subject to adjustments under different

The warrant was recognized as a derivative liability with an initial fair value of $ 0.168 million.

Company’s Convertible Notes’ obligations were as the following for the three and six months ended September 30, 2025 and

SCHEDULE OF CONVERTIBLE NOTES OBLIGATION

Three months ended

Carrying value – beginning

Converted to ordinary shares

value – beginning balance

to ordinary shares

( 3,054,240 )

Amortization of debt discount

Deferred debt discount and cost of issuance

Interest charge

Carrying value – ending balance

the three months ended June 30, 2025, $ 2.3

million of Convertible Notes was converted into approximately 4.3

million shares of Common Stock, with an average effective conversion price of $ 0.5363

During the three months ended June 30, 2024, no

Convertible Notes was converted into shares of Common Stock.

Company’s derivative liabilities were as the following for the three months ended March 31, 2025 and 2024:

of debt discount

debt discount and cost of issuance

value – ending balance

the three months ended September 30, 2025, $ 0.8 million of Convertible Notes was converted into approximately 1.5 million shares of Common

Stock, with an average effective conversion price of $ 0.5222 per share.

During the six months ended September 30, 2025, approximately

$ 3.1 million of the Convertible Notes was converted into approximately 5.7 million shares of Common Stock, with an average effective

conversion price of $ 0.5327 per share.

the three and six months ended September 30, 2024, $ 82,642 of the Convertible Notes was converted into 132,994 shares of

Common Stock, with average effective conversion price of $ 0.6214 per share.

Company’s derivative liabilities were as the following for the three and six months ended September 30, 2025 and 2024:

SCHEDULE OF DERIVATIVE LIABILITIES

Three months ended June 30,

Three months ended

Six months ended

September 30,

Derivative liabilities –Warrants

4 unchanged sentences

Beginning balance

Converted to ordinary shares

Converted to shares of Common Stock

( 1,589,352 )

4 unchanged sentences

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

Lease liabilities are measured at present value of the sum of remaining rental payments as of June 30, 2025, with a

discounted rate of 4.9 %.

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, 2025, with a discounted rate

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

All cash payments of operating lease cost

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

All cash payments of operating lease

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 subleasing and property management services business for 16

years with an option to extend the lease.

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 subleasing 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

Operating lease cost

Short-term lease cost

following table summarizes supplemental information related to leases:

SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES

Three months ended

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flow used in operating leases

Weighted average remaining lease term - Operating leases (years)

Weighted average discount rate - Operating leases

Cash paid for amounts

included in the measurement of lease liabilities

cash flow from operating leases

assets obtained in exchange for new operating leases liabilities

average remaining lease term - Operating leases (years)

average discount rate - Operating leases

are no operating lease liabilities for the following five years and the years after due to disposal of the subsidiary, HX, on July 1,

4 unchanged sentences

income from subleasing is disclosed in Note 13 segment data.

will be no future rental income as HX, the subsidiary conducting the subleasing and property management services business was

disposed of on July 1, 2025.

will be no future rental income as HX, the subsidiary conducting the subleasing and property management services business was disposed

of on July 1, 2025.

SHARE CAPITAL AND RESERVE

August 2022, the Company completed its IPO and 5,000,000 Common Stock were issued and sold to the public, with proceeds of approximately

$ 20.2 million, net of underwriter commissions and relevant offering expenses.

September, 2022, 391,666 shares were issued upon cashless exercise of Underwriter Warrants.

February 3, 2023, 3,370,000 shares were issued as pre-delivery shares to the placement agents.

January 2023, the Company increased its authorized share capital and the authorized share capital is $ 250,000

divided into 250,000,000

shares of Common Stock with par value of US$ 0.001

August 2022, the Company completed its IPO and 5,000,000 shares of Common Stock were issued and sold to the public, with proceeds of

approximately $ 20.2 million, net of underwriter commissions and relevant offering expenses.

September, 2022, 391,666 shares of Common Stock were issued upon cashless exercise of Underwriter Warrants.

February 3, 2023, 3,370,000 shares of Common Stock were issued as pre-delivery shares to the placement agents.

January 2023, the Company increased its authorized share capital and the authorized share capital is $ 250,000 divided into 250,000,000

shares of Common Stock with par value of US$ 0.001 per share.

Company effected the amendment and combination to the outstanding shares of its Common Stock into fewer number of outstanding shares

(the “Reverse Stock Split Amendment”) at a ratio of one-for-ten, with effect on June 26, 2023.

(the “Reverse Stock Split Amendment”) at a ratio of one-for-ten, with effect on September 26, 2023.

As a result, the number

of shares was reduced by 33,655,839

the Reverse Stock Split Amendment, the Company issued 1,644,188

shares of Common Stock with par value of US$ 0.001

of shares was reduced by 33,655,839 shares.

the Reverse Stock Split Amendment, the Company issued 1,644,188 shares of Common Stock with par value of US$ 0.001 per share.

April 29, 2024, the Company entered into two private placement agreements (the “Agreements”) with certain individual investors

(the “Investors”) who are independent third parties, pursuant to which the Company issued to each of the Investors 330,000

shares of its Common Stock, par value $ 0.001 per share, at a price of $ 0.98 per share, resulting in

aggregate gross proceeds to the Company of $ 646,800 , which closed on the same day.

Pursuant to the Agreements, the Company issued an aggregate

of 660,000 unregistered shares of Common Stock to the Investors.

are 10,090,963

and 6,043,769

shares of Common Stock issued and outstanding at June 30, 2025 and March 31, 2025, respectively.

shares of its Common Stock, par value $ 0.001 per share, at a price of $ 0.98 per share, resulting in aggregate gross proceeds to the Company

of $ 646,800 , which closed on the same day.

Pursuant to the Agreements, the Company issued an aggregate of 660,000 unregistered shares

of Common Stock to the Investors.

are 11,715,348 and 6,043,769 shares of Common Stock issued and outstanding at September 30, 2025 and March 31, 2025, respectively.

accordance with the relevant laws and regulations of the PRC, a subsidiary of the Company established in the PRC is required to transfer

4 unchanged sentences

to the shareholders.

The amount appropriated to statutory reserve for the years ended March 31, 2025 and 2024 was $ 402 and $ 8,563 , respectively.

The balance of paid-up statutory reserve was $ 37,422 and $ 37,020 as of March 31, 2025 and 2024, respectively.

The amount appropriated to statutory reserve for the six months ended September 30, 2025 and 2024 was $ 402 and $ Nil ,

respectively.

The balance of paid-up statutory reserve was $ 37,020 as of both September 30, 2025 and 2024.

2024 EQUITY INCENTIVE PLAN

August 11, 2025, 161,665 shares of Common Stock were issued and granted to the directors and executive officers pursuant to the 2024

Equity Incentive Plan.

These incentive shares were vested immediately.

The stock-based payment was measured at fair value using closing

market price of the day prior to the grant date.

The fair value was charged to income statement when the common stocks were granted.

During the three months ended September 30, 2025, the stock-based payment expense was $ 70,001 (2024:

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 7.12 and 7.26

as of June 30, 2025 and March 31, 2025, respectively.

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

was 7.231 and 7.004 for the three months ended June 30, 2025 and 2024, 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, 2025 and March 31, 2025, respectively.

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

which was 7.231 and 7.004 , 7.194 and 7.20 for the three and six months ended September 30, 2025 and 2024, 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, 2025 and March 31, 2025.

1 unchanged sentence

SCHEDULE OF CONCENTRATION RISKS

June 30, 2025

March 31, 2025

high concentration as of June 30, 2025 was mainly due to business development of a large distributor of garments.

high concentration as of September 30, 2025 was mainly due to business development of a large distributor of garments.

services segment

June 30, 2025

March 31, 2025

management and subleasing segment

was no account receivable for the property management and subleasing segment as of June 30, 2025 and March 31, 2025.

was no account receivable for the property management and subleasing segment as of September 30, 2025 and March 31, 2025.

Concentration

the three months ended June 30, 2025, three customer from the logistics services segment provided more than 10% of total revenue of

the Company, representing 45.4 %

of total revenue of the Company for the three months.

the three months ended June 30, 2024, one customer from the 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 September 30, 2025, three customers from the logistics services segment provided more than 10% of total revenue

of the Company, representing 63.5 % of total revenue of the Company for that period.

For the six months ended September 30,

2025, three customers from the logistics services segment provided more than 10% of total revenue of the Company, representing 53.8 %

of total revenue of the Company for that period .

the three months ended September 30, 2024, three customers from the logistics services segment provided more than 10% of total revenue

of the Company, representing 48.6 % of total revenue of the Company for that period.

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 36.5 % of total revenue

of the Company for that period.

Concentration

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

30, 2025 and 2024.

following tables summarize the purchases from five largest suppliers of each of the reportable segments for the three and six months

ended September 30, 2025 and 2024.

SCHEDULE OF PURCHASES FROM SUPPLIERS

Three months ended

Garment manufacturing segment

Logistics services segment

Property management and subleasing

manufacturing segment

services segment

Company’s exposure to interest rate risk primarily relates to the interest expenses on our outstanding bank borrowings and the

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

As of June 30, 2025, the total outstanding borrowings

As of September 30, 2025, the total outstanding borrowings

amounted to $ 643,194 (RMB 4,579,969 ) with various interest rate from 4.34 % to 16.2 % p.a.

SUBSEQUENT EVENTS

On August 11, 2025, the board of directors

of the Company, after a performance evaluation and upon recommendation of the compensation committee, approved an increase of Company’s Chief Executive Officer, Zhida Hong’s annual

salary from $ 17,229 to $ 200,000 , effective immediately.

On August 11, 2025, the Company filed

a registration statement on Form S-8 (the “Registration

Statement”) to register 161,665

shares of Common Stock issued pursuant to its 2024 Equity Incentive Plan

(the “Plan”) to six of its executive officers and directors (the

“Selling Stockholders”) at a price of $ 0.433 per share (which was the last reported sale price of the shares of Common Stock as reported

on Nasdaq on August 8, 2025).

On July 1, 2025, the Company disposed of HX to its management.

of disposal, the net assets of HX was approximately $ 6,972 .

The consideration was $ 13,829 , resulting in an income of $ 6,857 from disposal.

July 2025, approximately $ 0.8

million of convertible notes including principal and related accrued interest were converted into approximately 1.46

million shares of Common Stock.

The effective average conversion price was $ 0.5222

The remaining balance of principal and interest, approximately amounted to $ 0.4

million, were redeemed by cash before the expiration of the convertible note.

July, 2025, the Company entered into a non-binding term sheet with a substantial and independent Bitcoin holder to acquire up to 12,000

Based on prevailing market prices, the proposed acquisition represents an aggregate market value of approximately US$ 1.3 billion.

If completed, the transaction would be settled through the issuance of newly issued shares of the Company’s Common Stock.

Company received a letter dated April 9, 2025 from the Listings Qualifications Department (the “Staff”) of The Nasdaq Stock

Market LLC (“Nasdaq”) notifying the Company that the minimum bid price per share of its Common Stock was below $1.00 for

a period of 30 consecutive business days and that the Company did not meet the minimum bid price requirement set forth in Nasdaq Listing

Rule 5550(a)(2) (the “Minimum Bid Price Rule”).

The Nasdaq letter does not result in the immediate delisting of the Company’s

shares of Common Stock, and the shares will continue to trade uninterrupted under the symbol “ATXG.”

to Nasdaq Listing Rule 5810(c)(3)(A), the Company has a compliance period of one hundred eighty (180) calendar days, or until October

6, 2025 (the “Compliance Period”), to regain compliance with the Minimum Bid Price Rule.

If at any time during the Compliance

Period, the closing bid price per share of the Company’s Common Stock is at least $1.00 for a minimum of ten (10) consecutive business

days, Nasdaq will provide the Company a written confirmation of compliance and the matter will be closed.

the event the Company does not regain compliance by the end of the Compliance Period, the Company may be eligible for an additional 180

calendar day grace period.

To qualify, the Company will be required to meet the continued listing requirement for market value of publicly

held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the bid price requirement, and

will need to provide written notice of its intention to cure the deficiency during the second compliance period, including by effecting

a reverse stock split, if necessary.

If the Company chooses to implement a reverse stock split, it must complete the split no later than

ten (10) business days prior to the end of the Compliance Period, or the end of the second compliance period if granted.

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