What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-02-13 compared with 2025-11-14 · 156 added, 133 removed, 484 unchanged (37% of the section changed)

Financial Statements.

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)

the nine months ended December 31, 2025 and 2024

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

Condensed Consolidated Statements of Income and Comprehensive Income for the nine months ended December 31, 2025 and 2024 (unaudited)

Condensed Consolidated Statements of Changes in Equity for the nine months ended December 31, 2025 and 2024 (unaudited)

Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 2025 and 2024 (unaudited)

Notes to Condensed Consolidated Financial Statements for the nine months ended December 31, 2025 and 2024 (unaudited)

AND SUBSIDIARIES

17 unchanged sentences

non-current liabilities

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

stock ($ 0.001 par value, 250,000,000 shares authorized, 11,715,348 and 6,043,769 shares issued and outstanding at December 31 and

March 31, 2025, respectively)

9 unchanged sentences

( 1,912,395 )

( 1,625,159 )

and marketing

1 unchanged sentence

( 1,563,577 )

( 1,291,478 )

operating expenses

3 unchanged sentences

value gain or loss

( 4,141,237 )

( 4,140,772 )

( 1,045,448 )

( 1,030,585 )

INCOME BEFORE INCOME TAX EXPENSE

( 4,195,974 )

( 5,158,270 )

( 2,467,719 )

FROM CONTINUING OPERATIONS, NET OF INCOME TAXES

( 4,196,222 )

( 5,159,352 )

( 2,472,362 )

(loss) on discontinued operations

1 unchanged sentence

( 4,196,222 )

( 1,085,721 )

( 4,691,497 )

( 3,028,364 )

currency translation gain

12 unchanged sentences

comprehensive

AT JULY 1, 2024

AT OCTOBER 1, 2024

$ ( 10,511,833 )

paid-in capital from conversion of convertible debts

Appropriation

for Statutory reserve

currency translation

income for the period

AT SEPTEMBER 30, 2024

( 1,085,721 )

BALANCE AT JULY 1,

( 1,085,721 )

Issuance of new shares

AT DECEMBER 312024

$ ( 11,598,216 )

AT OCTOBER1, 2025

$ ( 14,159,065 )

paid-in capital from conversion of convertible debts

1 unchanged sentence

income for the period

AT SEPTEMBER 30, 2025

( 4,196,222 )

AT DECEMBER 31, 2025

$ ( 18,355,287 )

BALANCE AT APRIL

2 unchanged sentences

paid-in capital from conversion of convertible debts

Appropriation

for Statutory reserve

currency translation

2 unchanged sentences

( 3,028,364 )

AT SEPTEMBER 30, 2024

AT DECEMBER 31, 2024

$ ( 11,598,216 )

7 unchanged sentences

income for the period

AT SEPTEMBER 30, 2025

( 4,691,497 )

AT DECEMBER 31, 2025

$ ( 18,355,287 )

accompanying notes to the unaudited condensed consolidated financial statements.

2 unchanged sentences

Dollars, except share data or otherwise stated)

Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

FLOWS FROM OPERATING ACTIVITIES:

profit (loss)

$ ( 4,691,497 )

$ ( 3,028,364 )

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

Non-cash financial cost

Stock-Based Compensation Expense

Investment income

Fair value gain or loss

Gain on debts extinguishment

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

financial cost

Compensation Expense

value gain or loss

on debts extinguishment

Loss from sale of property and equipment

Loss on disposal of subsidiaries

Changes in operating assets and liabilities

Accounts receivable

Advances to suppliers

Other receivables

Accounts payables

Accrued expenses and other payables

Advances from customers

Net cash used in operating activities

on disposal of subsidiaries

in operating assets and liabilities

expenses and other payables

from customers

cash used in operating activities

$ ( 1,082,373 )

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment and intangible assets

Cash decreased in disposal of subsidiaries

Net cash used in investing activities

FLOWS FROM INVESTING ACTIVITIES

of property and equipment and intangible assets

Proceeds from sale of property and equipment and intangible assets

decreased in disposal of subsidiaries

cash used in investing activities

$ ( 281,080 )

$ ( 153,739 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from related party borrowings

Repayment of related party borrowings

Proceeds from bank borrowings

Repayment of bank borrowings

Cash advance to related parties

FLOWS FROM FINANCING ACTIVITIES:

from related party borrowings

of related party borrowings

from bank borrowings

of bank borrowings

advance to related parties

( 2,578,153 )

( 3,549,135 )

Repayment from related parties

Proceeds from issue of ordinary shares

Redemption of convertible debt

Release of restricted cash

Net cash provided by financing activities

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents, beginning of the period

CASH AND CASH EQUIVALENTS, END OF THE PERIOD

Supplemental disclosure of cash flow information:

Cash paid during the period for interest

Cash paid during the period for income tax

from related parties

of convertible debt

of restricted cash

cash provided by financing activities

$ ( 986,341 )

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

of exchange rate changes on cash and cash equivalents

and cash equivalents, beginning of the period

AND CASH EQUIVALENTS, END OF THE PERIOD

disclosure of cash flow information:

paid during the period for interest

paid during the period for income tax

accompanying notes to the unaudited condensed consolidated financial statements.

34 unchanged sentences

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.

is no change in the accounting policies for the nine months ended December 31, 2025.

issued accounting pronouncements

30 unchanged sentences

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

Comparative period amounts have been restated retrospectively.

Comparative period

amounts have been restated retrospectively.

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

16 unchanged sentences

a third party.

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

SCHEDULE OF RELATED PARTY BALANCES

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

OF RELATED PARTY BALANCES

due from related party

5 unchanged sentences

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.

11 unchanged sentences

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:

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

consist of the following as of December 31, and March 31, 2025:

SCHEDULE OF INVENTORIES

9 unchanged sentences

PREPAYMENTS AND OTHER RECEIVABLES

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

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

SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES

4 unchanged sentences

PROPERTY, PLANT AND EQUIPMENT

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

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

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT

Property, plant and equipment gross

plant and equipment gross

accumulated depreciation

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.

expense for the three and nine months ended December 31, 2025 and 2024 was $ 19,833 and $ 23,262 , $ 57,565 and $ 99,181 , respectively.

SHORT-TERM BANK LOAN

2 unchanged sentences

The loans are guaranteed at no cost by the legal representative

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

As of December 31, 2025, the Company has borrowed $ 134,568 (RMB 944,255 ) (March 31, 2025:

$ 130,051 ) under this line of credit

9 unchanged sentences

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

As of September 30, 2025, the Company has borrowed

As of December 31, 2025, the Company has borrowed

$ 562,923 (RMB 3,950,000 ) (March 31, 2025:

11 unchanged sentences

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

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

As of December 31, 2025, the Company has borrowed $ 20,359 (RMB 142,857 )

(March 31, 2025:

9 unchanged sentences

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

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.

HK had no taxable income for the nine months ended December 31, 2025 and 2024.

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 nine months ended

December 31, 2025 and 2024.

is governed by the Income Tax Laws of the PRC.

6 unchanged sentences

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

taxable income for the six months ended September 30, 2025

taxable income for the nine months ended December 31, 2025

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

2 unchanged sentences

expected benefits (expense)

( 1,048,994 )

( 1,289,568 )

in valuation allowance

22 unchanged sentences

The Company reports financial and operating

information in the following six segments:

information in the following three segments:

manufacturing .

9 unchanged sentences

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

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

by segment for the three and nine months ended December 31, 2025 and 2024 are as follows:

SCHEDULE OF SEGMENT REPORTING FOR REVENUE

5 unchanged sentences

manufacturing segment

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

(Loss) from operations by segment for the three and nine ended December 31, 2025 and 2024 is as follows:

SCHEDULE OF SEGMENT REPORTING FOR INCOME FROM OPERATION

2 unchanged sentences

of reportable segments

( 1,022,045 )

consolidated income (loss) from operations

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

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

SCHEDULE OF SEGMENT REPORTING FOR ASSETS

7 unchanged sentences

SCHEDULE OF GEOGRAPHICAL INFORMATION

Three months ended

September 30,

Six months ended

September 30,

FINANCIAL INSTRUMENTS

16 unchanged sentences

of operations and comprehensive loss.

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

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

$ 1.0 million).

8 unchanged sentences

conversion feature was $ 1.2 million.

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

As of December 31, 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

liabilities – Fair value of the Warrants

4 unchanged sentences

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

Company’s Convertible Notes’ obligations were as the following for the three and nine months ended December 31, 2025 and

SCHEDULE OF CONVERTIBLE NOTES OBLIGATION

5 unchanged sentences

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:

the nine months ended December 31, 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 nine months ended December 30, 2024, $ Nil and $ 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 nine months ended December 31, 2025 and 2024:

SCHEDULE OF DERIVATIVE LIABILITIES

Three months ended

Six months ended

September 30,

Derivative liabilities –Warrants

Beginning balance

Marked to the market

Ending fair value

Derivative liabilities – Embedded conversion feature

Beginning balance

Converted to shares of Common Stock

liabilities –Warrants

to the market

liabilities – Embedded conversion feature

to shares of Common Stock

( 1,589,352 )

Remeasurement on change of convertible price

Marked to the market

Ending fair value

Total Derivative fair value at end of period

Remeasurement

on change of convertible price

to the market

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, 2025, with a discounted rate

Lease liabilities are measured at present value of the sum of remaining rental payments as of December 31, 2025, with a discounted rate

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

43 unchanged sentences

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.

are 11,715,348 and 6,043,769 shares of Common Stock issued and outstanding at December 31, 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 six months ended September 30, 2025 and 2024 was $ 402 and $ Nil ,

The amount appropriated to statutory reserve for the nine months ended December 31, 2025 and 2024 was $ 402 and ($ 662 ),

respectively.

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

The balance of paid-up statutory reserve was $ 37,020 and $ 37,682 as at December 31, 2025 and 2024.

2024 EQUITY INCENTIVE PLAN

5 unchanged sentences

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:

During the three months ended December 31, 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 7.02 and 7.26

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.

as of December 31, 2025 and March 31, 2025, respectively.

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

was 7.091 and 7.188 , 7.160 and 7.197 for the three and nine months ended December 31, 2025 and 2024, respectively.

Equity is translated

3 unchanged sentences

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, 2025 and March 31, 2025.

1 unchanged sentence

SCHEDULE OF CONCENTRATION RISKS

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

high concentration as of December 31, 2025 was mainly due to business development of a large distributor of garments.

services segment

management and subleasing segment

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

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

Concentration

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

the three months ended December 31, 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

For the nine months ended December 31, 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 December 31, 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

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 36.5 % of total revenue

1 unchanged sentence

Concentration

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.

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

ended December 31, 2025 and 2024.

SCHEDULE OF PURCHASES FROM SUPPLIERS

3 unchanged sentences

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

As of September 30, 2025, the total outstanding borrowings

As of December 31, 2025, the total outstanding borrowings

amounted to $ 717,849 (RMB 5,037,112 ) with various interest rate from 4.34 % to 16.2 % p.a.

SUBSEQUENT EVENTS

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

Subsequent to December 31, 2025, the Company

evaluated subsequent events through the date the financial statements are issued.

On January 30, 2026, the Company held

its annual stockholders’ meeting.

Stockholders elected five directors and authorized the board to effect a reverse stock split

at a ratio between 1-for-2 and 1-for-250 .

February 6, 2026, the Company announced a proposed strategic acquisition of the offshore wealth management and cross-border service business

of Riches Group.

February 10, 2026, the Company entered into non-binding Memoranda of Understanding (“MOUs”) with two institutional investors

for a potential strategic equity investment of up to $ 200 million at a proposed price of $ 1.50 per share.

Definitive agreements are subject

to good faith negotiations and customary closing conditions.

February 11, 2026, the Company announced a proposed strategic acquisition of a Hong Kong–based AI-enabled licensed digital lending

The transaction, if completed, would expand the Company’s Asia-Pacific digital finance presence through AI credit technologies

and digital asset-related capabilities.

February 12, 2026, the Company announced advanced discussions with a significant global Bitcoin investor to explore collaboration on

a sovereign-aligned, regulatory-compliant stablecoin initiative in Southeast Asia.

These discussions align with its July 2025 disclosed

plan to pursue a strategic investment involving up to 12,000 BTC, are preliminary with no definitive agreements executed, and no assurance

of transaction completion.

than the foregoing, there were no material subsequent events requiring recognition or disclosure in the financial statements as of December

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