What changed in this filing

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Item 7. Management’s Discussion and Analysis

2025-06-30 compared with 2024-07-15 · 82 added, 95 removed, 365 unchanged (33% of the section changed)

14 unchanged sentences

We conduct substantially all of our operations

through our operating companies established in the PRC, primarily Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd.

through our operating companies established in the PRC, primarily YX,

our wholly owned subsidiary and its subsidiaries.

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logistics services, and property management and subleasing.

the context otherwise requires, all references in this annual report to “ Addentax ” refer to Addentax Group Corp.,

a holding company, and references to “ we, ” “ us, ” “ our, ” the “ Registrant ”,

the “ Company, ” or “ our company ” refer to Addentax and/or its consolidated subsidiaries.

Group Corp., our Nevada holding company, is the entity in which our investors are investing.

subsidiaries include

(i) Yingxi Industrial Chain Group Co., Ltd., a Republic of Seychelles company;

(ii) Yingxi Industrial Chain Investment Co., Ltd., a Hong

Kong company (“Yingxi HK”);

the context otherwise requires, all references in this Form 10-K to “Addentax” refer to Addentax Group Corp., a holding

company, and references to “we,” “us,” “our,” the “Registrant,” the “Company,”

or “our company” refer to Addentax and/or its consolidated subsidiaries.

Addentax Group Corp., our Nevada holding company,

is the entity in which our investors are investing.

subsidiaries include (i) Yingxi Industrial Chain Group Co., Ltd., a Republic of Seychelles company;

(ii) Yingxi Industrial Chain Investment

Co., Ltd., a Hong Kong company (“Yingxi HK”);

(iii) Qianhai Yingxi Textile & Garments Co., Ltd., a PRC company;

(iv) Shenzhen Qianhai Yingxi

Industrial Chain Services Co., Ltd, a PRC company (“YX”), (v) Dongguan Heng Sheng Wei Garments Co., Ltd, a PRC company (“HSW”),

(vi) Dongguan Yushang Clothing Co., Ltd, a PRC company (“YS”), (vii) Shantou Yi Bai Yi Garment Co., Ltd, a PRC company (“YBY”),

(viii) Shenzhen Yingxi Peng Fa Logistic Co., Ltd., a PRC company (“PF”);

(ix) Shenzhen Xin Kuai Jie Transportation Co., Ltd,

a PRC company (“XKJ”), (x) Shenzhen Yingxi Tongda Logistic Co., Ltd, a PRC company (“TD”), (xi) Zhuang Hao Jia

(Dongguan) Decoration Engineering Co.,Ltd, a PRC company (“ZHJ”), and (xii) Dongguan Aotesi Garments Co., Ltd.,, a PRC company

(“AOT”), (xiii) Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

Subsidiaries ” refer to, collectively, (i) Qianhai Yingxi Textile & Garments Co., Ltd.;

Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd, a PRC company (“YX”), (v) Dongguan Heng Sheng Wei Garments Co.,

Ltd, a PRC company (“HSW”), (vi) Dongguan Yushang Clothing Co., Ltd, a PRC company (“YS”), (vii) Shenzhen Yingxi

Peng Fa Logistic Co., Ltd., a PRC company (“PF”);

(viii) Shenzhen Xin Kuai Jie Transportation Co., Ltd, a PRC company (“XKJ”),

(ix) Dongguan Aotesi Garments Co., Ltd.,, a PRC company (“AOT”), (x) Dongguan Hongxiang Commercial Co., Ltd., a PRC company

Subsidiaries” refers to, collectively, (i) Qianhai Yingxi Textile & Garments Co., Ltd.;

(ii) Shenzhen Qianhai Yingxi Industrial

1 unchanged sentence

Clothing Co., Ltd (“YS”);

(v) Shantou Yi Bai Yi Garment Co., Ltd (“YBY”);

(vi) Shenzhen Yingxi Peng Fa Logistic

Co., Ltd., a PRC company (“PF”);

(vii) Shenzhen Xin Kuai Jie Transportation Co., Ltd, a PRC company (“XKJ”),

(viii) Shenzhen Yingxi Tongda Logistic Co., Ltd, a PRC company (“TD”), (ix) Zhuang Hao Jia (Dongguan) Decoration Engineering

Co.,Ltd, a PRC company (“ZHJ”), and (x) Dongguan Aotesi Garments Co., Ltd.,, a PRC company (“AOT”), (xiii) Dongguan

Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

(v) Shenzhen Yingxi Peng Fa Logistic Co., Ltd., a PRC company (“PF”);

(vi) Shenzhen

Xin Kuai Jie Transportation Co., Ltd, a PRC company (“XKJ”), (vii) Dongguan Aotesi Garments Co., Ltd.,, a PRC company (“AOT”),

(viii) Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

refers to Qianhai Yingxi Textile & Garments Co., Ltd, a wholly foreign owned enterprise in China, which is indirectly wholly owned

by Addentax Group Corp.

garment manufacturing business consists of sales made principally to wholesaler located in the PRC.

garment manufacturing business consists of sales made principally to wholesalers located in the PRC.

We have our own manufacturing facilities,

3 unchanged sentences

subsidiaries, namely Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), Dongguan Yushang Clothing Co., Ltd (“YS”)

Shantou Yi Bai Yi Garment Co., Ltd (“YBY”), Zhuang Hao Jia (Dongguan) Decoration Engineering

Co.,Ltd (“ZHJ”), and Dongguan Aotesi Garments Co., Ltd., (“AOT”) , which are located in the Guangdong province,

and Dongguan Aotesi Garments Co., Ltd., (“AOT”) , which are located in the Guangdong

province, China.

logistics business consists of delivery and courier services covering 44 cities in 10 provinces and 2 municipalities in China.

3 unchanged sentences

We conduct our logistic operations through three wholly owned subsidiaries, namely Shenzhen Xin Kuai Jie Transportation Co.,

Ltd (“XKJ”), Shenzhen Yingxi Peng Fa Logistic Co., Ltd (“PF”) and Shenzhen Yingxi Tongda Logistic Co., Ltd (“TD”),

which are located in the Guangdong province, China.

Ltd (“XKJ”) and Shenzhen Yingxi Peng Fa Logistic Co., Ltd (“PF”) which are located in the Guangdong province,

property management and subleasing business provides shops subleasing and property management services for garment wholesalers and retailers

2 unchanged sentences

garment market.

In February 2023, the Company disposed of DY to an independent third party at fair value in February, 2023.

our property management and subleasing operation through a wholly owned subsidiary acquired in September 2023, namely Dongguan Hongxiang

Commercial Co., Ltd., a PRC company (“HX”), which is located in the Guangdong province, China.

We conduct our property management and subleasing operation through a wholly owned subsidiary acquired in September 2023,

namely Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”), which is located in the Guangdong province, China.

Manufacturing Business

2 unchanged sentences

Services Business

business objective and future plan for our logistics services segment is to establish an efficient logistic system and to build a nationwide

business objective and future plan for our logistics services segment is to establish an efficient logistics system and to build a nationwide

delivery and courier network in China.

As of March 31, 2024, we provide logistic service to over 44 cities in approximately 10 provinces

As of March 31, 2025, we provide logistics services to over 44 cities in approximately 10 provinces

and 2 municipalities.

4 unchanged sentences

and the Internet celebrity economy together to drive to increase the value of the stores in the area.

In February 2023, the Company disposed

of DY to an independent third party at fair value and conduct the business through a wholly owned subsidiary acquired in September 2023,

namely Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

We conduct the business through

a wholly owned subsidiary acquired in September 2023, namely Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

Manufacturing Business

139 unchanged sentences

dollars, except for percentages)

$ (2,790,418 )

Cost of revenues

10 unchanged sentences

with the year ended March 31, 2024.

The decrease was mainly due to the decrease of revenue from the garment manufacturing business.

The decrease was mainly due to the decrease of revenue from the logistics services business.

generated from our garment manufacturing business contributed approximately $0.3 million, or approximately 6.8%, of our total revenue

2 unchanged sentences

of our total revenue for the year ended March 31, 2024.

The low amount of sales was mainly due to insufficient

customer volume, we cannot receive as large order quantity from remaining customers as before while new developed customer still at the

The low amount of sales was mainly due to insufficient customer volume, we cannot

receive as large order quantity from remaining customers as before while new developed customer still at the start stage.

generated from our logistics services business contributed approximately $3.0 million, or approximately 72.2%, of our total revenue for

7 unchanged sentences

$0.6 million, or approximately 11.3%, of our total revenue for the year ended March 31, 2024.

The decrease of approximately $2.5 million

was mainly due to the disposal of DY.

The increase of approximately $0.3 million

was mainly due to improved rental rate.

Increase (decrease) in 2025 compared to 2024

12 unchanged sentences

Total cost of revenue for property management and subleasing

Gross Profit for property management and subleasing

Gross (loss) Profit for property management and subleasing

Net revenue for corporate and others

6 unchanged sentences

the year ended March 31, 2025, as compared with approximately 14.6% in the year ended March 31, 2024.

The decrease in raw materials cost

for our garment manufacturing business was mainly due to decrease of manufacturing during renovation

of the factory.

The increase in raw materials cost

for our garment manufacturing business was mainly due to increase of manufacturing during the year.

costs for our garment manufacturing business were approximately 25.5% of our total garment manufacturing business revenue in the year

ended March 31, 2025, as compared with 56.7% in the year ended March 31, 2024.

The increase in labor costs for our garment manufacturing

business was mainly due to the increase of sub-contracting business in AOT.

The decrease in labor costs for our garment manufacturing

business was mainly due to the decrease of sub-contracting business in AOT.

and other expenses for our garment manufacturing business accounted for approximately 5.8% and 1.0% of our total garment manufacturing

4 unchanged sentences

5.2% and 42.0% of total cost of revenues for our logistics services segment for the years ended March 31, 2025 and 2024, respectively.

The increase in subcontracting fee to the largest contractor was mainly to optimize resources and cost efficiencies.

We have not experienced

any disputes with our subcontractors and we believe we maintain good relationships with our contract logistic service provider.

The decrease in subcontracting fee to the largest contractor was mainly to decrease use of subcontractors.

We have not experienced any

disputes with our subcontractors and we believe we maintain good relationships with our contract logistic service provider.

toll and other costs for our logistics business for the year ended March 31, 2025 was approximately $1.8 million, as compared with $1.9

3 unchanged sentences

Subcontracting

fees for our logistics business for the year ended March 31, 2024 increased to approximately $1.5 million from $1.1 million for the year

ended March 31, 2023, representing an increase of approximately 33.0%.

fees for our logistics business for the year ended March 31, 2025 decreased to approximately $0.2 million from $1.5 million for the year

ended March 31, 2024, representing an decrease of approximately 89.0%.

Subcontracting fees accounted for 5.5% and 34.9% of our total

2 unchanged sentences

The cost of revenue for property management and subleasing business for the year ended March 31, 2025 was $1.3 million, approximately

81.4% of our total property management and subleasing business revenue, as compared with $2.4 million, approximately 78.9% of total property

management and subleasing business revenue for the year ended March 31, 2023.

153.5% of our total property management and subleasing business revenue, as compared with $0.5 million, approximately 81.4% of total

property management and subleasing business revenue for the year ended March 31, 2024.

profit of garment manufacturing business for the year ended March 31, 2025 was approximately $53,879, as compared with approximately

$0.2 million for the year ended March 31, 2023.

Gross profit ratio was approximately 27.7% of revenue of the segment, as compared with

approximately 25.5% for the year ended March 31, 2023.

$63,544 for the year ended March 31, 2024.

Gross profit ratio was approximately 19.0% of revenue of the segment, as compared with approximately

27.7% for the year ended March 31, 2024.

profit of our logistics services business for the year ended March 31, 2025 was approximately $1.1 million and gross profit ratio was

2 unchanged sentences

was approximately 21.8%.

The decrease in the gross profit ratio was mainly because we did not have enough delivery orders to fill the

trucks every time which increased our cost.

profit of our property management and subleasing business for the year ended March 31, 2024 was approximately $0.1 million, representing

The increase in the gross profit ratio was mainly because less subcontractor used

loss of our property management and subleasing business for the year ended March 31, 2025 was approximately $0.5 million, representing

approximately (53.5)% of our total property management and subleasing business revenue.

11 unchanged sentences

$ (1,816,970 )

$ (1,131,196 )

General and administrative expenses

2 unchanged sentences

subleasing business and $128,956 for garments manufacturing business for the year ended March 31, 2025.

It was approximately $78,769 for

property management and subleasing business for the year ended March 31, 2023.

Selling expenses consist primarily of local transportation,

unloading charges and product inspection charges.

It was approximately $83,987

for property management and subleasing business and $46,617 for garments manufacturing business for the year ended March 31, 2024.

expenses consist primarily of local transportation, unloading charges and product inspection charges.

general and administrative expenses in our garment manufacturing segment for the years ended March 31, 2025 and 2024 were approximately

17 unchanged sentences

segment for the years ended March 31, 2025 and 2024, respectively.

(Loss) / Income from operations of $(201,746) and $267,359 was attributed

from our property management and subleasing business for the years ended March 31, 2024 and 2023.

We incurred general and administrative

expenses in corporate office of approximately $965,028 and approximately $946,970 for the years ended March 31, 2024 and 2023, respectively.

Loss from operations of $954,448 and $201,746 was attributed from

our property management and subleasing business for the years ended March 31, 2025 and 2024.

We incurred general and administrative expenses

in corporate office of approximately $1,010,967 and approximately $965,028 for the years ended March 31, 2025 and 2024, respectively.

tax expense for the years ended March 31, 2025 and 2024 was $4,649 and $11,605, respectively.

18 unchanged sentences

31, 2025 and 2024.

incurred a net loss of approximately $3.1 million and a net profit of approximately $1.3 million for the years ended March 31, 2024 and

2023, respectively.

Our basic and diluted (loss) earnings per share were $(0.71) and $0.04 for the year ended March 31, 2024 and 2023,

incurred a net loss of approximately $5.1 million and a net loss of approximately $3.1 million for the years ended March 31, 2025 and

2024, respectively.

Our basic and diluted loss per share were $0.85 and $0.71 for the year ended March 31, 2025 and 2024, respectively.

of cash flows

cash flows information for the years ended March 31, 2024 and 2023 is as follow:

Net cash used in operating activities

$ (1,569,159 )

Net cash provided by (used in) investing activities

cash flows information for the years ended March 31, 2025 and 2024 is as follows:

Net cash provided by (used in) operating activities

Net cash (used in) provided by investing activities

Net cash (used in) provided by financing activities

$ (1,102,141 )

Net cash provided by (used in) financing activities

cash used in operating activities in the year ended March 31, 2024 decreased by approximately $1.1 million compared with that of the

year ended March 31, 2023.

It was mainly because the net loss adjusted to cash provided (used in) operating activities of fiscal year

ended March 31, 2024 was approximately $0.8 million less than the amount of the fiscal year ended March 31, 2023.

cash provided by operating activities in the year ended March 31, 2025 increased by approximately $1.1 million compared with that of

the year ended March 31, 2024.

It was mainly because the net loss adjusted to cash used in operating activities of fiscal year ended

March 31, 2025 was approximately $0.6 million less than the amount of the fiscal year ended March 31, 2024.

The movement of operating

assets and liabilities of the year ended March 31, 2024 resulted in cash inflow of approximately $0.5 million compared to cash outflow

assets and liabilities of the year ended March 31, 2025 resulted in cash inflow of approximately $0.8 million compared to cash inflow

of approximately $0.3 million in the movement of operating assets and liabilities of the year ended March 31, 2024.

3 unchanged sentences

inventory for more than ninety days, as we typically manufacture upon customers’ order.

cash provided by investing activities for the year ended March 31, 2024 was approximately $0.09 million, compared to cash used of $21.2

million in investing activities for the year ended March 31, 2023.

It was mainly due to the purchase of debt securities of $17.5 million

in the year ended March 31, 2023, payment of long-term loan of $2.5 million to an independent third party, and a cash decrease of approximately

$1.2 million in disposal of one subsidiary in property management and subleasing segment.

cash provided by financing activities for the year ended March 31, 2024 was approximately $21.3 million less than the year ended March

It was mainly because in the year ended March 31 2023, the Company received the proceeds of $22.7 million from its initial

public offering (“IPO”), the proceeds of $15.0 million from issuance of the Notes and warrants and deposit of $14.75 million

to the restricted cash account pursuant to the PIPE Securities Purchase Agreement.

cash used in investing activities for the year ended March 31, 2025 was approximately $0.3 million more than cash used in investing

activities for the year ended March 31, 2024.

It was mainly because in the year ended March 31, 2024, there was $0.2 million cash

from newly acquired subsidiary.

cash used in financing activities for the year ended March 31, 2025 was approximately $1.6 million more than the year ended March 31,

In the year ended March 31 2025, the Company had receipt the proceeds of $0.6 million from issuance of Common Stock, payment

of $0.5 million for redemption of convertible debt, net cash advance of $1.4 million to related parties and net cash from bank loans

of $0.2 million.

During the year ended March 31, 2024, the Company had receipt of $4.5 million cash released from restricted cash, net

cash inflow of $0.3 million from bank loans, payment of $0.4 million of issuance cost of convertible debts, and net cash advance to related

parties of $3.9 million.

Condition, Liquidity and Capital Resources

22 unchanged sentences

All translation adjustments are included in accumulated other comprehensive income in the statement

The foreign currency translation gain (loss) for the years ended March 31, 2024 and 2023 was $0.1 million and $0.2 million,

respectively.

The foreign currency translation gain for the years ended March 31, 2025 and 2024 was $48,135 and $82,490, respectively.

Sheet Arrangements

5 unchanged sentences

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

What changed 10-K

Item 7. Management’s Discussion and Analysis