Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _________________

Commission File No. 001-41478

ADDENTAX GROUP CORP.

(Exact name of registrant as specified in its charter)

Nevada		35-2521028
(State or other jurisdiction of		(I.R.S. Employer
incorporation or formation)		Identification Number)

Kingkey 100, Block A, Room 4805,

Luohu District, Shenzhen City, China 518000

(Address of principal executive offices)

+ (86) 755 86961 405

(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		ATXG		Nasdaq Capital Markets

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of November 14, 2024, there were 6,043,769 shares outstanding of the registrant’s common stock.

TABLE OF CONTENTS

	PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	F-1

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	18

Item 4.	Controls and Procedures	18

	PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	19

Item 1A.	Risk Factors	19

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	19

Item 3.	Defaults Upon Senior Securities	19

Item 4.	Mine Safety Disclosures	19

Item 5.	Other Information	19

Item 6.	Exhibits	19

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements and Supplementary Data

ADDENTAX GROUP CORP.

FINANCIAL STATEMENTS

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

TABLE OF CONTENTS

Condensed Consolidated Balance sheets as of September 30, 2024 (unaudited) and March 31, 2024 (audited)	F-2
Condensed Consolidated Statements of Income and Comprehensive Income for the three and six months ended September 30, 2024 and 2023 (unaudited)	F-3
Condensed Consolidated Statements of Changes in Equity for the three and six months ended September 30, 2024 and 2023 (unaudited)	F-4
Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2024 and 2023 (unaudited)	F-5
Notes to Condensed Consolidated Financial Statements for the three and six months ended September 30, 2024 and 2023 (unaudited)	F-6 – F-15

F-1

ADDENTAX GROUP CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In U.S. Dollars, except share data or otherwise stated)

(UNAUDITED)

	September 30, 2024			March 31, 2024

ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	810,545		$	816,186
Restricted cash		2,750,000			2,750,000
Accounts receivables, net		1,207,409			2,106,451
Debt securities held-to-maturity		17,500,000			17,500,000
Inventories		191,708			63,505
Prepayments and other receivables		1,667,814			1,922,996
Advances to suppliers		320,964			1,009,362
Amount due from related party		3,840,154			3,012,892
Total current assets		28,288,594			29,181,392

NON-CURRENT ASSETS
Plant and equipment, net		491,706			568,854
Operating lease right of use asset		19,060,635			19,796,564
Long-term prepayments		291,027			291,938
Long-term receivables		2,500,000			2,500,000
Total non-current assets		22,343,368			23,157,356
TOTAL ASSETS	$	50,631,962		$	52,338,748

LIABILITIES AND EQUITY

CURRENT LIABILITIES
Short-term loan	$	465,067		$	440,671
Accounts payable		79,364			359,488
Amount due to related parties		177,750			1,146,745
Advances from customers		243,717			202,567
Accrued expenses and other payables		417,273			1,372,962
Operating lease liability current portion		1,068,257			1,059,497
Total current liabilities		2,451,428			4,581,930

NON-CURRENT LIABILITIES
Convertible debts		3,214,514			2,684,697
Derivative liabilities		949,791			287,955
Operating lease liability		19,226,050			18,737,066
Total non-current liabilities		23,390,355			21,709,718
TOTAL LIABILITIES	$	25,841,783		$	26,291,648

EQUITY
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)	$	6,044		$	5,384
Additional paid-in capital		35,240,981			34,510,869
Accumulated Deficit		(10,511,833	)		(8,569,190	)
Statutory reserve		37,020			37,020
Accumulated other comprehensive loss		17,967			63,017
Total equity		24,790,179			26,047,100
TOTAL LIABILITIES AND EQUITY	$	50,631,962		$	52,338,748

See accompanying notes to the unaudited condensed consolidated financial statements.

F-2

ADDENTAX GROUP CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In U.S. Dollars, except share data or otherwise stated)


	Three months ended September 30,						Six months ended September 30,
	2024			2023			2024			2023

REVENUES	$	1,341,478		$	1,335,314		$	2,192,511		$	2,387,820

COST OF REVENUES		(1,012,837	)		(932,427	)		(1,661,275	)		(1,748,024	)

GROSS PROFIT		328,641			402,887			531,236			639,796

OPERATING EXPENSES
Selling and marketing		(22,351	)		(37,212	)		(161,711	)		(37,212	)
General and administrative		(551,356	)		(670,607	)		(1,119,607	)		(1,168,465	)
Total operating expenses		(573,707	)		(707,819	)		(1,281,318	)		(1,205,677	)

INCOME (LOSS) FROM OPERATIONS		(245,066	)		(304,932	)		(750,082	)		(565,881	)

Fair value gain or loss		(531,614	)		2,854,595			(397,397	)		1,566,592
Interest income		342			1,693			710			3,417
Interest expenses		(58,045	)		(603,819	)		(905,727	)		(1,896,534	)
Other income, net		113,913			(581,900	)		111,399			(469,414	)

(LOSS) INCOME BEFORE INCOME TAX EXPENSE		(720,470	)		1,365,637			(1,941,097	)		(1,361,820	)
INCOME TAX EXPENSE		(1,062	)		(3,237	)		(1,546	)		(4,501	)

NET (LOSS) INCOME		(721,532	)		1,362,400			(1,942,643	)		(1,366,321	)
Foreign currency translation gain		(59,460	)		2,302			(45,050	)		89,752
TOTAL COMPREHENSIVE INCOME (LOSS)	$	(780,992	)	$	1,364,702		$	(1,987,693	)	$	(1,276,569	)

EARNINGS PER SHARE
Basic and diluted		(0.13	)		0.37			(0.36	)		(0.37	)
Weighted average number of shares outstanding – Basic and diluted		5,360,143			3,656,442			5,360,143			3,656,442

See accompanying notes to the unaudited condensed consolidated financial statements.

F-3

ADDENTAX GROUP CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In U.S. Dollars, except share data or otherwise stated)


										Retained earnings					Accumulated
							Additional			(accumulated deficit)					other
	Common Stock						paid-in						Statutory		comprehensive			Total
	Shares			Amount			capital			Unrestricted			reserve		loss			Equity
BALANCE AT JULY 1, 2023		3,739,581		$	3,740		$	32,406,317		$	(8,179,930	)	$	28,457	$	67,977		$	24,326,561
Issuance of new shares		755,398			755			(755	)		-			-		-			-
Additional paid-in capital from conversion of convertible debts		-			-			1,153,366			-			-		-			1,153,366
Foreign currency translation		-			-			-			-			-		2,302			2,302
Net income for the period		-			-			-			1,362,400			-		-			1,362,400
BALANCE AT SEPTEMBER 30, 2023		4,494,979		$	4,495		$	33,558,928		$	(6,817,530	)	$	28,457	$	70,279		$	26,844,629

BALANCE AT JULY 1, 2024		6,043,769		$	6,044		$	35,157,009		$	(9,790,301	)	$	37,020	$	77,427		$	25,487,199
Additional paid-in capital from conversion of convertible debts		-			-			83,972			-			-		-			83,972
Foreign currency translation		-			-			-			-			-		(59,460	)		(59,460	)
Net income for the period		-			-			-			(721,532	)		-		-			(721,532	)
BALANCE AT SEPTEMBER 30, 2024		6,043,769		$	6,044		$	35,240,981		$	(10,511,833	)	$	37,020	$	17,967		$	24,790,179

BALANCE AT APRIL 1, 2023		35,454,670		$	35,455		$	29,528,564		$	(5,451,209	)	$	28,457	$	(19,473	)	$	24,121,794
Issuance of new shares before reversed split		1,940,750			1,941			(1,941	)		-			-		-			-
Reverse stock split		(33,655,878	)		(33,656	)		33,656			-			-		-			-
New shares for round up of fragmental shares		39			0			0			-			-		-			-
Issuance of new shares after reversed split		755,398			755			(755	)		-			-		-			-
Additional paid-in capital from conversion of convertible debts		-			-			3,999,404			-			-		-			3,999,404
Foreign currency translation		-			-			-			-			-		89,752			89,752
Net income for the period		-			-			-			(1,366,321	)		-		-			(1,366,321	)
BALANCE AT SEPTEMBER 30, 2023		4,494,979		$	4,495		$	33,558,928		$	(6,817,530	)	$	28,457	$	70,279		$	26,844,629

BALANCE AT APRIL 1, 2024		5,383,769		$	5,384		$	34,510,869		$	(8,569,190	)	$	37,020	$	63,017		$	26,047,100
Balance		5,383,769		$	5,384		$	34,510,869		$	(8,569,190	)	$	37,020	$	63,017		$	26,047,100
Issuance of new shares		660,000			660			646,140			-			-		-			646,800
Additional paid-in capital from conversion of convertible debts		-			-			83,972			-			-		-			83,972
Foreign currency translation		-			-			-			-			-		(45,050	)		(45,050	)
Net income for the period		-			-			-			(1,942,643	)		-		-			(1,942,643	)
BALANCE AT SEPTEMBER 30, 2024		6,043,769		$	6,044		$	35,240,981		$	(10,511,833	)	$	37,020	$	17,967		$	24,790,179
Balance		6,043,769		$	6,044		$	35,240,981		$	(10,511,833	)	$	37,020	$	17,967		$	24,790,179

See accompanying notes to the unaudited condensed consolidated financial statements.

F-4

ADDENTAX GROUP CORP. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In U.S. Dollars, except share data or otherwise stated)


	Six Months Ended September 30
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(1,942,643	)	$	(1,366,321	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation		365,733			146,106
Non-cash financial cost		878,228			1,884,984
Investment income		330,000			(218,750	)
Fair value gain or loss		397,398			(1,566,592	)
Loss on debts extinguishment		-			697,318
Gain on bargain purchase		-			(975	)
Loss from sale of property and equipment		43,081			-
Loss on disposal of subsidiary		334,135			-
Changes in operating assets and liabilities
Accounts receivable		489,599			(202,150	)
Inventories		(137,062	)		35,155
Advances to suppliers		(50,236	)		(816,464	)
Other receivables		(74,993	)		(76,100	)
Accounts payables		(280,124	)		(12,460	)
Accrued expenses and other payables		134,732			(65,645	)
Advances from customers		41,150			(17,592	)
Net cash provided by (used in) operating activities	$	528,998		$	(1,579,486	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment and intangible assets		(107,432	)		(5,274	)
Cash decreased in disposal of subsidiary		(8,219	)		-
Net cash used in investing activities	$	(115,651	)	$	(5,274	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from related party borrowings		151,574			1,960,902
Repayment of related party borrowings		(273,632	)		(3,112,467	)
Release of restricted cash		-			3,850,000
Proceeds from bank borrowings		695,343			-
Repayment of bank borrowings		(683,638	)		-
Cash advance to related parties		(2,962,753	)		-
Repayment from related parties		2,010,740			-
Proceeds from issue of ordinary shares		646,800			-
Net cash provided by (used in) financing activities	$	(415,566	)	$	2,698,435

NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH		(2,219	)		1,113,675
Effect of exchange rate changes on cash and cash equivalents		(3,422	)		67,889
Cash and restricted cash, beginning of the period		816,186			562,711
CASH AND RESTRICTED CASH, END OF THE PERIOD	$	810,545		$	1,744,275

Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	26,731		$	-
Cash paid during the period for income tax	$	1,546		$	4,501
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease obligations	$	1,233,672		$	19,512,400

See accompanying notes to the unaudited condensed consolidated financial statements.

F-5

ADDENTAX GROUP CORP. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. ORGANIZATION AND BUSINESS ACQUISITIONS

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

2. BASIS OF PRESENTATION

In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated in consolidation. However, the results of operations included in such financial statements may not necessarily be indicative of annual results.

The Company uses the same accounting policies in preparing quarterly and annual financial statements. Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2024 filed with the Securities and Exchange Commission (“SEC”) on July 15, 2024 (“2023 Form 10-K”).

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates.

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

Recently issued accounting pronouncements

Accounting for Convertible Instruments: In August 2020, FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other changes, the new guidance removes from GAAP separation models for convertible debt that require the convertible debt to be separated into a debt and equity component, unless the conversion feature is required to be bifurcated and accounted for as a derivative or the debt is issued at a substantial premium. As a result, after adopting the guidance, entities will no longer separately present such embedded conversion features in equity and will instead account for the convertible debt wholly as debt. The new guidance also requires use of the “if-converted” method when calculating the dilutive impact of convertible debt on earnings per share, which is consistent with the Company’s current accounting treatment under the current guidance. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the fiscal year.

The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements.

F-6

4. DISPOSITION OF SUBSIDIARIES

The 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 Company. The Company will not have any businesses with YBY. The Company will carry on the garment manufacturing segment business through other subsidiaries. The disposition of YBY did not qualify as discontinued operations.

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

Garment Manufacturing Segment

Financial position of YBY	August 31, 2024, date of disposal
Current assets	$	1,165,329
Noncurrent assets		134
Current liabilities		(863,205	)
Net assets	$	302,258

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

5. RELATED PARTY TRANSACTIONS

Name of Related Parties		Relationship with the Company
Zhida Hong		President, CEO, and a director of the Company
Hongye Financial Consulting (Shenzhen) Co., Ltd.		A company controlled by CEO, Mr. Zhida Hong
Bihua Yang		A legal representative of XKJ
Dewu Huang		A legal representative of YBY, ceased to be related party at August 31, 2024 when YBY was disposed.
Jinlong Huang		Management of HSW

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

Hongye Financial Consulting (Shenzhen) Co., Ltd. provided guarantee to the consideration receivable of transfer of a debt security to a third party.

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

Amount due from related party	September 30, 2024		March 31, 2024
Zhida Hong (1)	$	2,847,417	$	2,154,759
Bihua Yang (2)		992,737		858,133
Amount due from related party	$	3,840,154	$	3,012,892

Related party borrowings	September 30, 2024		March 31, 2024
Hongye Financial Consulting (Shenzhen) Co., Ltd.		40,527		170,967
Dewu Huang (3)		-		864,599
Jinlong Huang		137,223		111,179
Related party borrowings	$	177,750	$	1,146,745

	(1)	The 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 year.

	(2)	The 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.

	(3)	The Company received financial support from Huang Dewu to fund company’s daily operation. The decrease is because YBY was disposed of in August 2024.

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

F-7

6. DEBT SECURITIES HELD-TO-MATURITY

	September 30, 2024		March 31, 2024

Debt securities held-to-maturity	$	17,500,000	$	17,500,000

The Company purchased a note issued by a third-party investment company on August 24, 2022. The principal amount of the note is $17,500,000. The note is renewable with one-year tenor on August 23, 2023 and 2.5% p.a. coupon. 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. Hong Zhida.

7. INVENTORIES

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

SCHEDULE OF INVENTORIES

	September 30, 2024		March 31, 2024
Raw materials	$	9,939	$	20,947
Work in progress		6,836		-
Finished goods		174,933		42,558
Total inventories	$	191,708	$	63,505

8. ADVANCES TO SUPPLIERS

The Company has made advances to third-party suppliers in advance of receiving inventory parts. These advances are generally made to expedite the delivery of required inventory when needed and to help to ensure priority and preferential pricing on such inventory. The amounts advanced to suppliers are fully refundable on demand.

The Company reviews a supplier’s credit history and background information before advancing a payment. If the financial condition of its suppliers were to deteriorate, resulting in an impairment of their ability to deliver goods or provide services, the Company would recognize bad debt expense in the period they are considered unlikely to be collected.

9. PREPAYMENTS AND OTHER RECEIVABLES

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

	September 30, 2024		March 31, 2024
Prepayment		29,091		34,693
Deposit		755,345		741,465
Receivable of consideration on disposal of subsidiaries		-		152,882
Receivable of interest income from debt security		330,000		437,500
Other receivables		553,378		556,456
Prepayments and other receivables	$	1,667,814	$	1,922,996

10. PROPERTY, PLANT AND EQUIPMENT

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

	September 30, 2024			March 31, 2024
Production plant	$	106,809		$	105,738
Motor vehicles		846,852			1,047,121
Office equipment		53,997			52,486
Property, plant and equipment gross		1,007,659			1,205,345
Less: accumulated depreciation		(515,953	)		(636,491	)
Plant and equipment, net	$	491,706		$	568,854

Depreciation 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.

F-8

11. LONG-TERM RECEIVABLES

The Company entered into a long-term loan agreement with an independent third party in September 2022. The principal to the borrower is $2.5 million. The loan is interest free and will expire in August 2025.

12. SHORT-TERM BANK LOAN

In August 2019, HSW entered into a facility agreement with Agricultural Bank of China and obtained a line of credit, which allows the Company to borrow up to approximately $153,172 (RMB1,000,000) for daily operations. The loans are guaranteed at no cost by the legal representative of HSW. As of September 30, 2024, the Company has borrowed $134,545 (RMB944,255) (March 31, 2024: $130,779) under this line of credit with various annual interest rates from 4.34% to 4.9%. The outstanding loan balance was due on September 30, 2021. The Company was not able to renew the loan facility with the bank. The Company is negotiating with the bank on repayment schedule of the loan balance and interest payable.

In February 2023, XKJ entered into a facility agreement with China Construction Bank and obtained a line of revolving credit, which allows the Company to borrow up to approximately $1,268,118 (RMB9,000,000) for daily operations, with Loan Prime Rate of the day prior to the draw down day. The loans are guaranteed by the legal representative of XKJ at no cost. The first drawdown was in October 2023. Before that, the company did not exercise the agreement. As of September 30, 2024, the Company has borrowed $163,862 (RMB1,150,000) (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.

In December 2023, 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 $68,800 (RMB500,000) for daily operations. As of September 30, 2024, the Company has borrowed $44,527 (RMB312,500) (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.

In March 2024, PF entered into a new facility agreement with WeBank Co., Ltd. and obtained a line of credit, which allows the Company to borrow up to approximately $137,602 (RMB1,000,000) for daily operations. As of September 30, 2024, the Company has borrowed $122,133 (RMB857,143) (March 31, 2024: $138,500) under this line of credit with annual interest rate of 8.244%. The loan facility will expire on March 22, 2026.

13. TAXATION

(a)	Enterprise Income Tax (“EIT”)

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

Yingxi Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of the British Virgin Islands, is not subject to income taxes. It is a wholly owned subsidiary of Addentax Group Corp.

Yingxi HK (Yingxi Industrial Chain Investment Co., Ltd.) was incorporated in Hong Kong which 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 September 30, 2024 and 2023.

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 September 30, 2024 and 2023.

The Company is governed by the Income Tax Laws of the PRC. All Yingxi’s operating companies were subject to progressive EIT rates from 5% to 15% in 2024 and 2023. The preferential tax rate will be expired at end of year 2024 and the EIT rate will be 25% from year 2025.

The Company’s parent entity, Addentax Group Corp. is a U.S entity and is subject to the United States federal income tax. No provision 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.

F-9

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


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
PRC statutory tax rate		25	%		25	%		25	%		25	%
Computed expected benefits		(180,118	)		341,409			(485,275	)		(340,456	)
Temporary differences		(30,436	)		(30,918	)		(6,245	)		(24,768	)
Permanent difference		(78,809	)		(75,814	)		(46,196	)		6,312
Changes in valuation allowance		290,425			(231,440	)		539,262			363,413
Income tax expense	$	1,062		$	3,237			1,546			4,501

Deferred tax assets had not been recognized in respect of any potential tax benefit that may be derived from non-capital loss carry forward and property and equipment due to past negative evidence of previous cumulative net losses and uncertainty upon restructuring. The management will continue to assess at each reporting period to determine the realizability of deferred tax assets.

(b)	Value Added Tax (“VAT”)

In 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, YBY, AOT, ZHJ 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.

For services, the applicable VAT rate is 9% under the relevant tax category for logistic company, except the branch of YXPF enjoyed the preferential VAT rate of 3% in 2024 and 2023. The Company is 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.

14. CONSOLIDATED SEGMENT DATA

Segment information is consistent with how chief operating decision maker reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The segment data presented reflects this segment structure. The Company reports financial and operating information in the following four segments:

	(a)	Garment manufacturing. Including manufacturing and distribution of garments;

	(b)	Logistics services. Providing logistic services; and

	(c)	Property management and subleasing. Providing shops subleasing and property management services for garment wholesalers and retailers in garment market.

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

F-10

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

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


	Three months ended				Six months ended
	September 30,				September 30,
Revenues from external customers	2024		2023		2024		2023
Garments manufacturing segment		148,470		91,218		235,072		145,091
Logistics services segment		964,429		1,186,033		1,450,936		2,184,666
Property management and subleasing		228,579		58,063		506,503		58,063
Total of reportable segments and consolidated revenue	$	1,341,478	$	1,335,314	$	2,192,511	$	2,387,820

Intersegment revenue
Garments manufacturing segment		-		-		-		-

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


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Garments manufacturing segment		1,622			(18,988	)		(62,023	)		(41,143	)
Logistics services segment		229,558			172,295			250,437			174,229
Property management and subleasing		(201,865	)		(13,360	)		(406,298	)		(13,360	)
Total of reportable segments	$	29,315		$	139,947		$	(217,884	)	$	119,726
Corporate and other		(274,381	)		(444,879	)		(532,198	)		(685,607	)
Total consolidated income (loss) from operations		(245,066	)		(304,932	)		(750,082	)		(565,881	)

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

Total assets	September 30, 2024		March 31, 2024
Garment manufacturing segment	$	249,407	$	1,357,761
Logistics services segment		3,277,551		3,231,492
Property management and subleasing		20,249,178		20,931,431
Total of reportable segments		23,776,136		25,520,684
Corporate and other		26,855,826		26,818,064
Consolidated total assets	$	50,631,962	$	52,338,748

Geographical Information

The Company operates predominantly in China. In presenting information on the basis of geographical location, revenue is based on the geographical location of customers and long-lived assets are based on the geographical location of the assets.

Geographic Information

SCHEDULE OF GEOGRAPHICAL INFORMATION

	Three months ended September 30,				Six months ended September 30,
	2024		2023		2024		2023
Revenues
China		1,341,478		1,335,314		2,192,511		2,387,820

	September 30, 2024		March 31, 2024
Long-Lived Assets
China		22,343,368		23,157,356

F-11

15. FINANCIAL INSTRUMENTS

On January 4, 2023, the Company entered into a series of agreements with certain accredited investors, pursuant to which the Company received a net proceed of $15,000,000 in consideration of the issuance of:

	●	senior secured convertible notes in the aggregate original principal amount of approximately $16.7 million with interest rate of 5% per annum (the “Convertible Notes”); The Convertible Notes shall be 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 Warrant is considered a freestanding instrument issued together with the Convertible Note and measured at its issuance date fair value. Proceeds received were first allocated to the Warrant based on its initial fair value. The initial fair value of the Warrant was $3.9 million. The Warrant 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 September 30, 2024, the balance of the Warrant was approximately $0.3 million (March 31, 2024: $0.25 million).

The Convertible Note is 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, 2024, the fair value of the conversion option was $0.6 million (March 31, 2024: $0.04 million).

The Company determined that the other embedded features do not require bifurcation as they either are clearly and closely related to the Convertible Note or do not meet the definition of a derivative.

The total proceeds of the Convertible Note and the Warrants, net of issuance cost, of $15.0 million was received by the Company in January 2023, and allocated to each of the financial instruments as following:

SCHEDULE OF FINANCIAL INSTRUMENTS

	As of January 4, 2023

Derivative liabilities – Fair value of the Warrants	$	3,858,521
Derivative liabilities – Embedded conversion feature		1,247,500
Convertible Note		9,893,979
	$	15,000,000

In January 2023, the Company also granted to the placement agent a warrant as partial of agent fee to purchase 0.7 million shares of common stock of the Company. The warrant is matured in five years with exercise price of $1.25 subject to adjustments under different conditions. 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.

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


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Carrying value – beginning balance	$	3,518,999		$	8,510,226		$	2,684,697		$	11,219,519
Converted to ordinary shares		(82,642	)		(813,366	)		(82,642	)		(3,695,810	)
Redemption		-			(5,687,056	)		-			(5,687,056	)
Amortization of debt discount		-			423,215			682,648			1,337,412
Deferred debt discount and cost of issuance		(264,186	)		(20,645	)		(263,925	)		(1,138,313	)
Interest charge		44,187			170,950			195,580			547,572
Carrying value – ending balance	$	3,216,358		$	2,583,324		$	3,216,358		$	2,583,324

During 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.

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

SCHEDULE OF DERIVATIVE LIABILITIES


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Derivative liabilities –Warrants	$			$			$			$
Beginning balance		117,440			2,818,563			251,657			2,013,261
Marked to the market		184,549			(2,550,128	)		50,332			(1,744,826	)
Ending fair value		301,989			268,435			301,989			268,435

Derivative liabilities – Embedded conversion feature
Beginning balance		36,036			1,763,997			36,298			277,222
Converted to ordinary shares		(1,330	)		(339,999	)		(1,330	)		(453,594	)
Remeasurement on change of convertible price		264,186			20,645			263,925			1,138,314
Redemption		-			(1,115,627	)		-			(1,115,627	)
Marked to the market		347,065			(304,467	)		347,064			178,234
Ending fair value		645,957			24,549			645,957			24,549

Total Derivative fair value at end of period	$	947,946		$	292,984		$	947,946		$	292,984

F-12

16. LEASE

As a lessee

Right-of-use asset and lease liabilities

The 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 of 4.9%. 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.

The 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.

The following table summarizes the components of lease expense:

SCHEDULE OF LEASE EXPENSES


	Three months ended September 30,				Six months ended September 30,
	2024		2023		2024		2023
Operating lease cost		265,894		31,363		524,976		74,801
Short-term lease cost		32,408		34,493		68,871		58,050
Lease Cost	$	298,302	$	65,856	$	593,847	$	132,851

The following table summarizes supplemental information related to leases:


	Three months ended September 30,						Six months ended September 30,
	2024			2023			2024			2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow from operating leases	$	298,302		$	65,856			593,847			132,851
Right-of-use assets obtained in exchange for new operating leases liabilities		1,096,683			19,511,181			1,233,672			19,512,400
Weighted average remaining lease term - Operating leases (years)		13.9			14.9			13.9			14.9
Weighted average discount rate - Operating leases		4.90	%		4.90	%		4.90	%		4.90	%

The following table summarizes the maturity of operating lease liabilities:

Years ending September 30	Lease cost
2025	$	1,120,463
2026		1,023,446
2027		1,023,446
2028		2,029,793
2029 and there after		24,796,599
Total lease payments		29,993,747
Less: Interest		(9,699,440	)
Total	$	20,294,307

As a lessor

The Company subleased its leased commercial building by entering into operating leases to third party garment wholesalers and retailers. These leases are negotiated for terms ranging from one to five years. All leases include the term to enable upward revision of the rental charge on an annual basis according to prevailing market conditions.

Rental income from subleasing is disclosed in Note 14 segment data.

The future minimum rental receivable under non-cancellable operating leases contracted for the reporting period are as follows:

Years ending September 30	Lease income
2025	$	216,211
2026		286,740
2027		334,559
2028		89,745
2029 and there after		-
Total	$	927,255

F-13

17. SHARE CAPITAL

The Company effected the amendment and combination to the outstanding shares of our common stock into a lesser number of outstanding shares (the “Reverse Stock Split Amendment”) on a ratio of one-for-ten, with effected date on June 26, 2023.

On April 29, 2024, the Company entered into two Private Placement Agreements (the “Agreement”) with certain individual investors (the “Investors”) who are independent third parties, pursuant to which the Company issued to each of the investor 330,000 shares of its common stock, par value $0.001 per share, at a price of $0.98 per share (the “Common Stock”), resulting in aggregate gross proceeds to the Company of $646,800, which closed on the same day. Pursuant to the Agreement, the Company issued an aggregate of 660,000 unregistered shares of common stock to the Investors.

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

18. RISKS AND UNCERTAINTIES

(a)

Economic and Political Risks

The Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy.

The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.

(b)

Foreign Currency Translation

The Company’s reporting currency is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”). For the subsidiaries whose functional currencies are the RMB, all assets and liabilities are translated at exchange rates at the balance sheet date, which was 7.02 and 7.22 as of September 30, 2024 and March 31, 2024, respectively. Revenue and expenses are translated at the average yearly exchange rates, which was 7.16 and 7.004, 7.20 and 7.12 for the three and six months ended September 30, 2024 and 2023, respectively. Equity is translated at historical exchange rates. Any translation adjustments resulting are not included in determining net income but are included in foreign exchange adjustments to other comprehensive loss, a component of equity.

F-14

(c)

Concentration Risks

The followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of September 30, 2024 and March 31, 2024.

Garment manufacturing segment

SCHEDULE OF CONCENTRATION RISKS

	September 30, 2024			March 31, 2024
Customer A		65.2	%		Nil	%
Customer B		34.8	%		3.3	%

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

Logistics services segment

	September 30, 2024			March 31, 2024
Customer A		19.7	%		13.9	%
Customer B		19.4	%		8.2	%
Customer C		14.7	%		21.6	%
Customer D		6.9	%		9.9	%
Customer E		5.5	%		2.5	%

Property management and subleasing segment

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

Concentration on customers

For 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 months.

For 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 months.

Concentration on suppliers

The 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.

SCHEDULE OF PURCHASES FROM SUPPLIERS

	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Garment manufacturing segment		60.6	%		Nil	%		41.8	%		Nil	%
Logistics services segment		100	%		100.0	%		100	%		100.0	%
Property management and subleasing		100.0	%		100.0	%		100.0	%		100.0	%

(d)

Interest Rate Risk

The 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 September 30, 2024, the total outstanding borrowings amounted to $465,067 (RMB3,263,898) with various interest rate from 4.34% to 16.2% p.a. (Note 12)

F-15

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations for the three months ended September 30, 2024 and 2023 should be read in conjunction with the Financial Statements and corresponding notes included in this Report on Form 10-Q. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Risk Factors and Special Note Regarding Forward-Looking Statements in this report. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” “target”, “forecast” and similar expressions to identify forward-looking statements.

Overview

Our Business

We (Addentax Group Corp.) are a Nevada holding company with no material operations of our own. We conduct substantially all of our operations through our operating companies established in the People’s Republic of China, or the PRC, primarily Shenzhen Qianhai Yingxi Industrial Chain Service Co., Ltd. (“YX”), our wholly owned subsidiary and its subsidiaries. We are not a Chinese operating company. We are a holding company and do not directly own any substantive business operations in China. Our holding company structure involves unique risks to investors. Chinese regulatory authorities could disallow our operating structure, which would likely result in a material change in our operations and/or the value of our common stock, including that it could cause the value of such securities to significantly decline or become worthless. Our holding company, Addentax Group Corp., is listed on the Nasdaq Capital Market under the symbol of “ATXG”. We classify our businesses into three main segments: garment manufacturing, logistics services, and property management and subleasing. The Company previously engaged in the provision of epidemic prevention supplies, which included manufacturing, distribution and trading of epidemic prevention supplies. As the COVID-19 pandemic is near an endemic, the Company ceased to operate in this business in the first quarter of 2023. The remaining assets of this business segment were reclassified into the “Corporate and others” segment. The corresponding items of segment information for the earlier periods were restated to reflect the change of the new segment structure.

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

Our 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) Shenzhen Yingxi Peng Fa Logistic Co., Ltd., a PRC company (“PF”); (viii) Shenzhen Xin Kuai Jie Transportation Co., Ltd, a PRC company (“XKJ”), (ix) Zhuang Hao Jia (Dongguan) Decoration Engineering Co.,Ltd, a PRC company (“ZHJ”), (x) Dongguan Au Te Si Garments Co., Ltd., a PRC company (“AOT”), (xi) Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

“PRC Subsidiaries” refer to, collectively, (i) Qianhai Yingxi Textile & Garments Co., Ltd.; (ii) Shenzhen Qianhai Yingxi Industrial Chain Services Co., Ltd (“YX”), (iii) Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), (iv) Dongguan Yushang Clothing Co., Ltd (“YS”); (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) Zhuang Hao Jia (Dongguan) Decoration Engineering Co.,Ltd, a PRC company (“ZHJ”), and (viii) Dongguan Aotesi Garments Co., Ltd.,, a PRC company (“AOT”), (ix) Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

“WFOE” refers to Qianhai Yingxi Textile & Garments Co., Ltd, a wholly foreign owned enterprise in China, which is indirectly wholly owned by Addentax Group Corp.

Our garment manufacturing business consists of sales made principally to wholesaler located in the PRC. We have our own manufacturing facilities, with sufficient production capacity and skilled workers on production lines to ensure that we meet our high quality control standards and timely meet the delivery requirements for our customers. We conduct our garment manufacturing operations through five wholly owned subsidiaries, namely Dongguan Heng Sheng Wei Garments Co., Ltd (“HSW”), Dongguan Yushang Clothing Co., Ltd (“YS”), Zhuang Hao Jia (Dongguan) Decoration Engineering Co.,Ltd (“ZHJ”), and Dongguan Aotesi Garments Co., Ltd., (“AOT”), which are located in the Guangdong province, China.

Our logistics business consists of delivery and courier services covering 44 cities in 10 provinces and 2 municipalities in China. Although we have our own motor vehicles and drivers, we currently outsource some of the business to our contractors. We believe outsourcing allows us to maximize our capacity and maintain flexibility while reducing capital expenditures and the costs of keeping drivers during slow seasons. We conduct our logistic operations through two wholly owned subsidiaries, namely Shenzhen Xin Kuai Jie Transportation Co., Ltd (“XKJ”) and Shenzhen Yingxi Peng Fa Logistic Co., Ltd (“PF”), which are located in the Guangdong province, China.

Our property management and subleasing business provides shops subleasing and property management services for garment wholesalers and retailers in the garment market. We currently have an aggregate of 56,238 square meters floor space and provide approximately 1,300 shop space to clients. 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.

To focus on the core businesses of the Group, the Company dissolved one of its subsidiaries, Shenzhen Yingxi Tongda Logistic Co., Ltd, in April 2024 and received approval from RPC authorities.

As at the date of this report, the Company is in the process of dissolving another subsidiary, ZHJ.

Business Objectives

Garment Manufacturing Business

We believe the strength of our garment manufacturing business is mainly due to our consistent emphasis on exceptional quality and timely delivery of our products. The primary business objective for our garment manufacturing segment is to expand our customer base and improve our profit.

Logistics Services Business

The business objective and future plan for our logistics services segment is to establish an efficient logistic system and to build a nationwide delivery and courier network in China. As of September 30, 2024, we provide logistics services to over 44 cities in approximately 10 provinces and 2 municipalities. We expect to develop 20 additional logistics routes in existing serving cities and improve the Company’s profit for the remainder of 2024.

Property Management and Subleasing Business

The business objective of our property management and subleasing segment is to integrate resources in shopping mall, develop e-commerce bases and the Internet celebrity economy together to drive to increase the value of the stores in the area. The Company conduct the business through a wholly owned subsidiary acquired in September 2023, namely Dongguan Hongxiang Commercial Co., Ltd., a PRC company (“HX”).

Seasonality of Business

Garment Manufacturing Business

We generally receive more purchase orders during our second and third quarters and fewer manufacture orders during May and June.

Logistics Services Business

We generally receive more delivery orders in our third and fourth quarters and are more vulnerable to shipping delays in the PRC during Chinese New Year due to traffic and port congestion, border crossing delays and customs clearance issues.

Property Management and Subleasing Business

There is no significant seasonality in our business.

Collection Policy

Garment manufacturing business

For our new customers, we generally require orders placed to be backed by advances or deposits. For our long-term and established customers with good payment track records, we generally provide payment terms between 30 to 180 days following their acknowledgement of receipt of goods.

Logistics services business

For logistics services, we generally receive payments from the customers between 30 to 90 days following the date of the registration of our receipt of packages.

Property management and subleasing business

For property management and subleasing business, we generally collect rental and management fees of the following month each month in advance.

Economic Uncertainty

Our business is dependent on consumer demand for our products and services. We believe that the significant uncertainty in the economy in China has increased our clients’ sensitivity to the cost of our products and services. We have experienced continued pricing pressure. If the economic environment becomes weak, the economic conditions could have a negative impact on our sales growth and operating margins, cash position and collection of accounts receivable. Additionally, business credit and liquidity have tightened in China. Some of our suppliers and customers may face credit issues and could experience cash flow problems and other financial hardships. These factors currently have not had an impact on the timeliness of receivable collections from our customers. We cannot predict at this time how this situation will develop and whether accounts receivable may need to be allowed for or written off in the coming quarters.

Despite the various risks and uncertainties associated with the current economy in China, we believe our core strengths will continue to allow us to execute our strategy for long-term sustainable growth in revenue, net income and operating cash flow.

Summary of Critical Accounting Policies

We have identified critical accounting policies that, as a result of judgments, uncertainties, uniqueness and complexities of the underlying accounting standards and operation involved could result in material changes to our financial position or results of operations under different conditions or using different assumptions.

Estimates and Assumptions

We regularly evaluate the accounting estimates that we use to prepare our financial statements. In general, management’s estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

Revenue Recognition

Revenue is generated through sale of goods and delivery services. Revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods and services. The Company applies the following five-step model in order to determine this amount:

	(i)	identification of the promised goods and services in the contract;

	(ii)	determination of whether the promised goods and services are performance obligations, including whether they are distinct in the context of the contract;

	(iii)	measurement of the transaction price, including the constraint on variable consideration;

	(iv)	allocation of the transaction price to the performance obligations; and

	(v)	recognition of revenue when (or as) the Company satisfies each performance obligation.

The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct. The Company recognizes as revenues the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied or as it is satisfied. Generally, the Company’s performance obligations are transferred to customers at a point in time, typically upon delivery.

For all reporting periods, the Company has not disclosed the value of unsatisfied performance obligations for all product and service revenue contracts with an original expected length of one year or less, which is an optional exemption that is permitted under the adopted rules.

Leases

Lessee

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in the consolidated balance sheets.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, The Company generally use the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Lessor

As a lessor, the Company’s leases are classified as operating leases under ASC 842. Leases, in which the Company is the lessor, are substantially all accounted for as operating leases and the lease components and non-lease components are accounted for separately. Rental income from operating leases is recognized on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight line basis over the lease term.

Accounts receivable, net

Accounts receivable, net are stated at the historical carrying amount net of allowance for doubtful accounts.

Account receivables are classified as financial assets subsequently measured at amortized cost. Account receivables are recognized when the Company becomes a party to the contractual provisions of the receivables. They are measured, at initial recognition, at fair value plus transaction costs, if any and are subsequently measured at amortized cost. The amortized cost is the amount recognized on the receivable initially, minus principal repayments, plus cumulative amortization (interest) using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance.

A loss allowance for expected credit losses is recognized on account receivables and is updated at each reporting date. The Company determines the expected credit losses provisions based on ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (‘‘ASC 326’’) using a modified retrospective approach which did not have a material impact on the opening balance of accumulated deficit. To determine expected credit losses on account receivables, the Company will consider the historic credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions, and an assessment of both the current and forecasted direction of conditions at the reporting date, including the time value of money, where appropriate.

The loss allowance is calculated on a collective basis for all trade and other receivables in totality. An impairment gain or loss is recognized in profit or loss with a corresponding adjustment to the carrying amount of account receivables, through use of a loss allowance account. The impairment loss is included in operating expenses as a movement in credit loss allowance.

Receivables are written off when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, e.g., when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings. Receivables written off may still be subject to enforcement activities under the Company’s recovery procedures, considering legal advice where appropriate. Any recoveries made are recognized in profit or loss.

Recently issued accounting pronouncements

Results of Operations for the three months ended September 30, 2024 and 2023

The following table summarize our results of operations for the three months ended September 30, 2024 and 2023. The table and the discussion below should be read in conjunction with our consolidated financial statements and the notes thereto appearing elsewhere in this report.

	Three Months Ended September 30,										Changes in 2024
	2024					2023					compared to 2023
	(In U.S. dollars, except for percentages)
Revenue	$	1,341,478		100.0	%	$	1,335,314		100	%	$	6,164		0.5	%
Cost of revenues		(1,012,837	)	(75.5	)%		(932,427	)	(69.8	)%		(80,410	)	8.6	%
Gross profit		328,641		24.5	%		402,887		30.2	%		(74,246	)	(18.4	)%
Operating expenses		(573,707	)	(42.8	)%		(707,819	)	(53.0	)%		134,112		(18.9	)%
Loss from operations		(245,066	)	(18.3	)%		(304,932	)	(22.8	)%		59,866		(19.6	)%
Other income, net		113,913		8.5	%		(581,900	)	(43.6	%		695,813		(119.6	)%
Fair value gain or loss		(531,614	)	(39.6	)%		2,854,595		213.8			(3,386,209	)	(118.6	)%
Net finance cost		(57,703	)	(4.3	)%		(602,126	)	(45.1	)%		544,423		(90.4	)%
Income tax expense		(1,062	)	(0.1	)%		(3,237	)	(0.2	)%		2,175		(67.2	)%
Net loss	$	(721,532	)	(53.8	)%	$	1,362,400		102.0	)%	$	(2,083,932	)	(153.0	)%

Revenue

Total revenue for the three months ended September 30, 2024 was nearly the same as compared with the three months ended September 30, 2023.

Revenue generated from our garment manufacturing business contributed approximately $0.1 million, or 11.1%, of our total revenue for the three months ended September 30, 2024. Revenue generated from garment manufacturing business contributed approximately $0.1 million or 6.8% of our total revenue for the three months ended September 30, 2023, respectively. The low level of sales was mainly due to factory facilities renewal and repairs, and the remaining factories cannot provide the same capacity as previously. We estimate the capacity will recover at the fiscal year ending 2025.

Revenue generated from our logistics services business contributed approximately $1.0 million, or 71.9%, of our total revenue for the three months ended September 30, 2024. Revenue generated from our logistic business contributed approximately $1.2 million or 88.8% of our total revenue for the three months ended September 30, 2023.

Revenue generated from our property management and subleasing business was 0.2 million, or 17.0%, of our total revenue for the three months ended September 30, 2024. The revenue from this business segment was $0.06 million or 4.3% of our total revenue for the three months ended September 30, 2023.

Cost of revenue

	Three months ended September 30,									Increase (decrease) in
	2024					2023				2024 compared to 2023
	(In U.S. dollars, except for percentages)
Net revenue for garment manufacturing	$	148,470		100.0	%	$	91,218	100	%	$	57,252		62.8	%
Raw materials		87,273		58.8	%		26,377	28.9	%		60,896		230.9	%
Labor		36,428		24.5	%		46,404	50.9	%		(9,976	)	(21.5	)%
Other and Overhead		7,094		4.8	%		2,670	2.9	%		4,424		165.7	%
Total cost of revenue for garment manufacturing		130,795		88.1	%		75,451	82.7	%		55,344		73.4	%
Gross profit for garment manufacturing		17,675		11.9	%		15,767	17.3	%		1,908		12.1	%

Net revenue for logistics services		964,429		100.0	%		1,186,033	100.0	%		(221,604	)	(18.7	)%
Fuel, toll and other cost of logistics services		511,023		53.0	%		513,789	43.3	%		(2,766	)	(0.5	)%
Subcontracting fees				-	%		338,577	28.6	%		(338,577	)	(100.0	)%
Total cost of revenue for logistics services		511,023		53.0	%		852,366	71.9	%		(341,343	)	(40.0	)%
Gross Profit for logistics services		453,406		47.0	%		333,667	28.1	%		119,739		35.9	%

Net revenue for property management and subleasing		228,579		100.0	%		58,063	100.0	%		170,516		293.7
Total cost of revenue for property management and subleasing		371,019		162.3	%		4,610	7.9	%		366,409		7,948.1
Gross Profit for property management and subleasing		(142,440	)	(62.3	)%		53,453	92.1	%		(195,893	)	(366.5	)%

Total cost of revenue	$	1,012,837		75.5	%	$	932,427	69.8	%	$	80,410		8.6	%
Gross profit	$	328,641		24.5	%	$	402,887	30.2	%	$	(74,246	)	(18.4	)%

For our garment manufacturing business, we purchase the majority of our raw materials directly from numerous local fabric and accessories suppliers.

Raw material costs for our garment manufacturing business were approximately 58.8% of our total garment manufacturing business revenue for the three months ended September 30, 2024, as compared with 28.9% for the three months ended September 30, 2023. The increase in percentage was mainly due to increased orders received.

Labor costs for our garment manufacturing business was approximately 24.5% of our total garment manufacturing business revenue for the three months ended September 30, 2024, as compared with 50.9% for the three months ended September 30, 2023. We maintained a sustainable level in wages, the decrease in portion of labor cost was mainly due to the increased in revenue.

Overhead and other expenses for our garment manufacturing business accounted for approximately 4.8% of our total garment business revenue for the three months ended September 30, 2024, as compared with 2.9% of total garment business revenue for the three months ended September 30, 2023.

For our logistic business, we outsourced some of the business to our contractors. We relied on a few subcontractors, of which the subcontracting fees to our largest contractor represented approximately nil% and 35.1% of total cost of revenues for our service segment for the three months ended September 30, 2024 and 2023, respectively. The decrease was attributed to an increase in usage of our own logistics as compared to the subcontractor. We have not experienced any disputes with our subcontractors and we believe we maintain good relationships with our contract logistics services providers.

Fuel, toll and other costs for our service business for the three months ended September 30, 2024 were approximately $0.5 million as compared with $0.5 million for the three months ended September 30, 2023. Fuel, toll and other costs for our service business accounted for approximately 53.0% of our total service revenue for the three months ended September 30, 2024, as compared with 43.3% for the three months ended September 30, 2023. The increase was primarily attributable to a decrease of usage of subcontractors during the quarter.

Subcontracting fees for our service business for the three months ended September 30, 2024 decreased approximately 100.0% to $nil from $0.3 million for the three months ended September 30, 2023. Subcontracting fees accounted for nil% and 28.6% of our total service business revenue in the three months ended September 30, 2024 and 2023, respectively. The decrease was primarily attributable to a decrease of usage of subcontractors during the quarter.

For property management and subleasing business, the cost of revenue was mainly the amortization of operating lease assets for the subleasing business. The cost of revenue for property management and subleasing business for the three months ended September 30, 2024 was $371,019, approximately 162.3% of our total property management and subleasing business revenue, as compared with $4,610, or 7.9% of the total property management and subleasing business revenue for the three months ended September 30, 2023.

Gross profit

Garment manufacturing business gross profit for the three months ended September 30, 2024 was $17,679, as compared with $15,767 for the three months ended September 30, 2023. Gross profit accounted for 11.9% of our total garment manufacturing business revenue for the three months ended September 30, 2024, as compared to 17.3% for the three months ended September 30, 2023. The decrease of gross profit ratio was mainly due to the increased raw material costs.

Gross profit in our logistics services business for the three months ended September 30, 2024 was approximately $453,406 and gross margin was 47.0%. Gross profit in our logistics services business for the three months ended September 30, 2023 was approximately $333,667 and gross margin was 28.1%. The increase of gross profit ratio was mainly because the Company re-allocated the orders received and reduced fuel cost.

Gross loss in our property management and subleasing business for the three months ended September 30, 2024 was $142,440. Gross profit was $53,453 for the three months ended September 30, 2023. Gross loss accounted for (62.3)% of our total property management and subleasing business revenue for the three months ended September 30, 2024, as compared to 92.1% for the three months ended September 30, 2023. The decrease of gross profit ratio was mainly because the property management and subleasing business are still in preliminary stage.

	Three months ended September 30,										Increase (decrease) in
	2024					2023					2024 compared to 2023
	(In U.S. dollars, except for percentages)
Gross profit	$	328,641		100	%	$	402,887		100	%		(74,246	)	(18.4	)%
Operating expenses:
Selling expenses		(22,351	)	(6.8	)%		(37,212	)	(9.2	)%		14,861		(39.9	)%
General and administrative expenses		(551,356	)	(167.8	)%		(670,607	)	(166.5	)%		119,251		(17.8	)%
Total	$	(573,707	)	(174.6	)%	$	(707,819	)	(175.7	)%		134,112		(18.9	)%
(Loss) Income from operations	$	(245,066	)	(74.6	)%	$	(304,932	)	(75.7	)%		59,866		(19.6	)%

Selling, General and administrative expenses

Our selling expenses for our garment manufacturing business for the three months ended September 30, 2024 and 2023 was approximately $13,400 and nil, respectively. The selling expenses for property management and subleasing business for the three months ended September 30, 2024 and 2023 was approximately $8,952 and $37,200, respectively. Selling expenses consisted primarily of advertisement, local transportation, unloading charges and product inspection charges.

Our general and administrative expenses in our garment manufacturing business segment for the three months ended September 30, 2024 and 2023 was approximately $2,653 and $34,400, respectively. Our general and administrative expenses in our logistics services segment for the three months ended September 30, 2024 and 2023 was approximately $223,375 and $160,700, respectively. The general and administrative expenses in our property management and subleasing business was approximately $50,473 and nil for the three months ended September 30, 2024 and 2023, respectively. Our general and administrative expenses in our corporate office for the three months ended September 30, 2024 and 2023 was approximately $274,855 and $475,600, respectively. General and administrative expenses consisted primarily of administrative salaries, office expense, certain depreciation and amortization charges, repairs and maintenance, legal and professional fees, warehousing costs and other expenses that are not directly attributable to our revenues.

Total general and administrative expenses for the three months ended September 30, 2024 decreased by approximately 4.2% to $1.1 million from $1.2 million for the three months ended September 30, 2023.

Loss from operations

Loss from operations for the three months ended September 30, 2024 and 2023 was approximately $245,066 and $304,932, respectively. Income from operations of approximately $1,622 and loss from operation of $19,000 for the three months ended September 30, 2024 and 2023, respectively, which was attributed from our garment manufacturing segment. Income from operations of approximately $229,558 and $172,300 was attributed from our logistics services segment for the three months ended September 30, 2024 and 2023, respectively. Loss from operations of approximately $201,865 and $13,400for the three months ended September 30, 2024 and 2023, respectively, which was attributed from our property management and subleasing business. We incurred expenses from operations in corporate office of approximately $274,381 and $444,900 for the three months ended September 30, 2024 and 2023, respectively.

Income Tax Expenses

Income tax expense for the three months ended September 30, 2024 and 2023 was approximately $1,062 and $3,237, respectively. Yingxi primarily operates in the PRC and files tax returns in the PRC jurisdictions.

Yingxi Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of the British Virgin Islands, is not subject to income taxes.

Yingxi HK was incorporated in Hong Kong and is subject to Hong Kong income tax at a progressive tax 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 September 30, 2024 and 2023.

QYTG and YX were incorporated in the PRC and is subject to the PRC Enterprise Income Tax (EIT) rate is 25%. No provision for income taxes in the PRC has been made as QYTG and YX had no taxable income for the three months ended September 30, 2024 and 2023.

The majority of our subsidiaries are governed by the Income Tax Laws of the PRC. All Yingxi’s operating companies are subject to progressive EIT rates from 5% to 15% in 2024. The preferential tax rates will be expired at end of year 2025.

Addentax Group Corp. is a U.S. entity and is subject to the United States federal income tax. No provision 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.

Net Loss

We incurred net loss of approximately $0.7 million and net income of $1.4 million for the three months ended September 30, 2024 and 2023, respectively. Our basic and diluted earnings per share were ($0.13) and $0.837 for the three months ended September 30, 2024 and 2023, respectively.

Results of Operations for the six months ended September 30, 2024 and 2023

The following table summarize our results of operations for the six months ended September 30, 2024 and 2023. The table and the discussion below should be read in conjunction with our consolidated financial statements and the notes thereto appearing elsewhere in this report.

	Six Months Ended September 30,										Changes in 2024
	2024					2023					compared to 2023
	(In U.S. dollars, except for percentages)
Revenue	$	2,192,511		100.0	%	$	2,387,820		100	%	$	(195,309	)	(8.2	)%
Cost of revenues		(1,661,275	)	(75.8	)%		(1,748,024	)	(73.2	)%		86,749		(5.0	)%
Gross profit		531,236		24.2	%		639,796		26.8	%		(108,560	)	(17.0	)%
Operating expenses		(1,281,318	)	(58.4	)%		(1,205,677	)	(50.5	)%		(75,641	)	6.3	%
Loss from operations		(750,082	)	(34.2	)%		(565,881	)	(23.7	)%		(184,201	)	32.6	%
Other income, net		111,399		5.1	%		(469,414	)	(19.7	)%		580,813		(123.7	)%
Fair value gain or loss		(397,397	)	(18.1	)%		1,566,592		65.6	%		(1,963,988	)	(125.4	)%
Net finance cost		(905,018	)	(41.3	)%		(1,893,117	)	(79.3	)%		988,099		(52.2	)%
Income tax expense		(1,546	)	(0.1	)%		(4,501	)	(0.2	)%		2,955		(65.7	)%
Net loss	$	(1,942,643	)	(88.6	)%	$	(1,366,321	)	(57.2	)%	$	(576,322	)	42.2	%

Revenue

Total revenue for the six months ended September 30, 2024 decreased by approximately $0.2 million, or 8.2%, as compared with the six months ended September 30, 2023. The decrease was mainly due to the decrease of $0.7 million in logistics services, increase of $0.1 million in garment manufacturing business and increase of $0.4 million in property management and subleasing business.

Revenue generated from our garment manufacturing business contributed approximately $0.2 million, or 10.7%, of our total revenue for the six months ended September 30, 2024. Revenue generated from garment manufacturing business contributed approximately $0.1 million or 6.1% of our total revenue for the six months ended September 30, 2023, respectively. The low level of sales was mainly due to factory facilities renewal and repairs, and the remaining factories cannot provide the same capacity as previously. We estimate the capacity will recover at the fiscal year ending 2025.

Revenue generated from our logistics services business contributed approximately $1.5 million, or 66.2%, of our total revenue for the six months ended September 30, 2024. Revenue generated from our logistic business contributed approximately $2.2 million or 91.5% of our total revenue for the six months ended September 30, 2023.

Revenue generated from our property management and subleasing business was 0.5 million, or 23.1%, of our total revenue for the six months ended September 30, 2024. The revenue from this business segment was $0.06 million for the six months ended September 30, 2023.

Cost of revenue

	Six months ended September 30,									Increase (decrease) in
	2024					2023				2024 compared to 2023
	(In U.S. dollars, except for percentages)
Net revenue for garment manufacturing	$	235,072		100.0	%	$	145,091	100.0	%	$	89,981		62.0	%
Raw materials		124,959		53.2	%		25,950	17.9	%		99,009		381.5	%
Labor		54,524		23.2	%		93,140	64.2	%		(38,616	)	(41.5	)%
Other and Overhead		10,648		4.5	%		2,681	1.8	%		7,967		297.2	%
Total cost of revenue for garment manufacturing		190,131		80.9	%		121,771	83.9	%		68,360		56.1	%
Gross profit for garment manufacturing		44,941		19.1	%		23,320	16.1	%		21,621		92.7	%

Net revenue for logistics services		1,450,936		100.0	%		2,184,666	100.0	%		(733,730	)	(33.6	)%
Fuel, toll and other cost of logistics services		760,319		52.4	%		1,001,219	45.8	%		(240,900	)	(24.1	)%
Subcontracting fees		-		-	%		620,424	28.4	%		(620,424	)	(100.0	)%
Total cost of revenue for logistics services		760,319		52.4	%		1,621,643	74.2	%		(861,324	)	(53.1	)%
Gross Profit for logistics services		690,617		47.6	%		563,023	25.8	%		127,594		22.7	%

Net revenue for property management and subleasing		506,503		100.0	%		58,063	100.0	%		448,440		772.3
Total cost of revenue for property management and subleasing		710,825		140.3	)%		4,610	7.9	%		706,215		15,319.2
Gross Profit for property management and subleasing		(204,322	)	(40.3	)%		53,453	92.1	%		(257,775	)	(482.2	)%

Total cost of revenue	$	1,661,275		75.8	%	$	1,748,024	73.2	%	$	(86,749	)	(5.0	)%
Gross profit	$	531,236		24.2	%	$	639,796	26.8	%	$	(108,560	)	(17.0	)%

For our garment manufacturing business, we purchase the majority of our raw materials directly from numerous local fabric and accessories suppliers.

Raw material costs for our garment manufacturing business were approximately 53.2% of our total garment manufacturing business revenue for the six months ended September 30, 2024, as compared with 17.9% for the six months ended September 30, 2023. The increase in percentage was mainly due to the increased order received.

Labor costs for our garment manufacturing business was approximately 23.2% of our total garment manufacturing business revenue for the six months ended September 30, 2024, as compared with 64.2% for the six months ended September 30, 2023. We maintained a sustainable level in wages, the decrease in portion of labor cost was mainly due to the increased in revenue.

Overhead and other expenses for our garment manufacturing business accounted for approximately 4.5% of our total garment business revenue for the six months ended September 30, 2024, as compared with 1.8% of total garment business revenue for the six months ended September 30, 2023.

For our logistic business, we outsourced some of the business to our contractors. We relied on a few subcontractors, which the subcontracting fees to our largest contractor represented approximately nil% and 36.1% of total cost of revenues for our service segment for the six months ended September 30, 2024 and 2023, respectively. The decrease was attributed to an increase in usage of our own logistics as compared to the subcontractor. We have not experienced any disputes with our subcontractors and we believe we maintain good relationships with our contract logistics services providers.

Fuel, toll and other costs for our service business for the six months ended September 30, 2024 were approximately $0.8 million as compared with $1.0 million for the six months ended September 30, 2023. Fuel, toll and other costs for our service business accounted for approximately 52.4% of our total service revenue for the six months ended September 30, 2024, as compared with 45.8% for the six months ended September 30, 2023. The increase was primarily attributable to a decrease of usage of subcontractors during the quarter.

Subcontracting fees for our service business for the six months ended September 30, 2024 decreased approximately 100.0% to $nil from $0.6 million for the six months ended September 30, 2023. Subcontracting fees accounted for nil% and 28.4% of our total service business revenue in the six months ended September 30, 2024 and 2023, respectively. The decrease was primarily attributable to a decrease of usage of subcontractors during the quarter.

For property management and subleasing business, the cost of revenue was mainly the amortization of operating lease assets for the subleasing business. The cost of revenue for property management and subleasing business for the six months ended September 30, 2024 was $0.7 million, approximately 140.3% of our total property management and subleasing business revenue, as compared with $$4,610 for the six months ended September 30, 2023.

Gross profit

Garment manufacturing business gross profit for the six months ended September 30, 2024 was $44,942, as compared with $23,300 for the six months ended September 30, 2023. Gross profit accounted for 19.1% of our total garment manufacturing business revenue for the six months ended September 30, 2024, as compared to 16.1% for the six months ended September 30, 2023. The increase of gross profit ratio was mainly due to increased sales.

Gross profit in our logistics services business for the six months ended September 30, 2024 was approximately $690,617 and gross margin was 47.6%. Gross profit in our logistics services business for the six months ended September 30, 2023 was approximately $563,000 and gross margin was 25.8%. The increase of gross profit ratio was mainly because the Company re-allocated the orders received and reduced fuel cost.

Gross loss in our property management and subleasing business for the six months ended September 30, 2024 was $204,323. Gross profit was $53,500 for the six months ended September 30, 2023. Gross loss accounted for (40.3)% of our total property management and subleasing business revenue for the six months ended September 30, 2024, as compared to gross profit of 16.7% for the six months ended September 30, 2023. The decrease of gross profit ratio was mainly because the property management and subleasing business are still in preliminary stage.

	Six months ended September 30,										Increase (decrease) in
	2024					2023					2024 compared to 2023
	(In U.S. dollars, except for percentages)
Gross profit	$	531,236		100	%	$	639,796		100	%		(108,560	)	(17.0	)%
Operating expenses:
Selling expenses		(161,711	)	(30.4	)%		(37,212	)	(5.8	)%		(124,499	)	334.6	%
General and administrative expenses		(1,119,607	)	(210.8	)%		(1,168,465	)	(182.6	)%		48,858		(4.2	)%
Total	$	(1,281,318	)	(241.2	)%	$	(1,205,677	)	(188.4	)%		(75,641	)	6.3	%
(Loss) Income from operations	$	(750,082	)	(141.2	)%	$	(565,881	)	(88.4	)%		(184,201	)	32.6	%

Selling, General and administrative expenses

Our selling expenses for our garment manufacturing business for the six months ended September 30, 2024 and 2023 was approximately $96,002 and nil, respectively. The selling expenses for property management and subleasing business for the six months ended September 30, 2024 and 2023 was approximately $65,709 and $37,200, respectively. Selling expenses consisted primarily of advertisement, local transportation, unloading charges and product inspection charges.

Our general and administrative expenses in our garment manufacturing business segment for the six months ended September 30, 2024 and 2023 was approximately $10,963 and $64,100, respectively. Our general and administrative expenses in our logistics services segment for the six months ended September 30, 2024 and 2023 was approximately $439,625 and $388,100, respectively. The general and administrative expenses in our property management and subleasing business was approximately $136,266 and nil for the six months ended September 30, 2024 and 2023, respectively. Our general and administrative expenses in our corporate office for the six months ended September 30, 2024 and 2023 was approximately $532,753 and $716,300, respectively. General and administrative expenses consisted primarily of administrative salaries, office expense, certain depreciation and amortization charges, repairs and maintenance, legal and professional fees, warehousing costs and other expenses that are not directly attributable to our revenues.

Total general and administrative expenses for the six months ended September 30, 2024 decreased by approximately 4.2% to $1.1 million from $1.2 million for the six months ended September 30, 2023.

Loss from operations

Loss from operations for the six months ended September 30, 2024 and 2023 was approximately $750,082 and $565,881, respectively. Loss from operations of approximately $62,023 and $41,100 for the six months ended September 30, 2024 and 2023, respectively, which was attributed from our garment manufacturing segment. Income from operations of approximately $250,437 and $174,200 was attributed from our logistics services segment for the six months ended September 30, 2024 and 2023, respectively. Loss from operations of approximately $406,298 and $13,400 for the six months ended September 30, 2024 and 2023, respectively, which was attributed from our property management and subleasing business. We incurred expenses from operations in corporate office of approximately $532,198 and $685,600 for the six months ended September 30, 2024 and 2023, respectively.

Income Tax Expenses

Income tax expense for the six months ended September 30, 2024 and 2023 was approximately $1,546 and $4,501, respectively. Yingxi primarily operates in the PRC and files tax returns in the PRC jurisdictions.

Yingxi Industrial Chain Group Co., Ltd was incorporated in the Republic of Seychelles and, under the current laws of the British Virgin Islands, is not subject to income taxes.

Net Loss

We incurred net loss of approximately $1.9 million and $1.4 million for the six months ended September 30, 2024 and 2023, respectively. Our basic and diluted earnings per share were ($0.36) and ($0.37) for the six months ended September 30, 2024 and 2023, respectively.

Summary of cash flows

Summary cash flows information for the three months ended September 30, 2024 and 2023 is as follow:

	Six months ended September 30,
	2024			2023
	(In U.S. dollars)
Net cash provided by (used in) operating activities	$	528,998		$	(1,579,486	)
Net cash used in investing activities		(115,651	)		(5,274	)
Net cash (used in) provided by financing activities	$	(415,566	)	$	2,698,435

Net cash provided by operating activities in the six months ended September 30, 2024 was approximately $0.5 million as compared to net cash used in operating activities of $1.6 million in the six months ended September 30, 2023, which was approximately $2.1 million more than that of the six months ended September 30, 2023. The increase was mainly due to (i) net loss adjusted to operating cash flow for the six months ended September 30, 2024 was $0.8 million less than that of the six months ended September 30, 2023; (ii) the movement of operating assets and liabilities of the three months ended September 30, 2024 resulted in cash inflow of approximately $0.1 million, which was $1.2 million more than that of 2023;.

Net cash used in investing activities for the six months ended September 30, 2024 was approximately $0.1 million, which was mainly due to purchase of property, plant and equipment.

Net cash used in financing activities for the three months ended September 30, 2024 was approximately $0.4 million as compared to $1.0 million in the three months ended September 30, 2023, which was approximately $2.7 million net cash provided by financing activities in the six months ended September 30, 2023. In the six months ended September 30, 2024, the Company received proceeds of $0.7 million from a private placement and paid $1.0 million cash advance to related parties, while the Company had release of restricted cash of $3.85 million in the six months ended September 30, 2023.

Financial Condition, Liquidity and Capital Resources

As of September 30, 2024, we had cash on hand of approximately $0.8 million, total current assets of approximately $28.3 million and current liabilities of approximately $2.5 million. We currently finance our operations from revenue, fund raising from public offering and private placement proceeds and capital contributions from our chief executive officer, Mr. Hong Zhida (the “CEO”).

In the event that the Company requires additional funding to finance the growth of the Company’s current and expected future operations as well as to achieve our strategic objectives, the CEO has indicated the intent and ability to provide additional debt or equity financing.

Foreign Currency Translation Risk

Our operations are located in China, which may give rise to significant foreign currency risks from fluctuations and the degree of volatility in foreign exchange rates between the U.S. dollar and the Chinese Renminbi (“RMB”). All of our sales are in RMB. In the past years, RMB continued to appreciate against the U.S. dollar. As of September 30, 2024, the market foreign exchange rate was RMB 7.02 to one U.S. dollar. Our financial statements are translated into U.S. dollars using the closing rate method. The balance sheet items are translated into U.S. dollars using the exchange rates at the respective balance sheet dates. The capital and various reserves are translated at historical exchange rates prevailing at the time of the transactions while income and expenses items are translated at the average exchange rate for the period. All translation adjustments are included in accumulated other comprehensive income in the statement of equity. The foreign currency translation gain (loss) for the six months ended September 30, 2024 and 2023 was approximately $(0.05) million and $0.09 million, respectively.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements (as that term is defined in Item 303(a)(4)(ii) of Regulation S-K) as of September 30, 2024 that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable to smaller reporting companies.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of September 30, 2024. Based on the evaluation of these disclosure controls and procedures, and in light of the material weaknesses found in our internal controls over financial reporting, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective.

Management’s Remediation Initiatives

In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we plan to initiate the following series of measures to further strengthen the Company’s internal controls going forward:

1. hire a reporting manager (“Internal Finance Manager”) who has the requisite relevant U.S. GAAP and SEC reporting experience and qualifications;

2. make an overall assessment on the current finance and accounting resources and hire additional accounting members with appropriate levels of accounting knowledge and experience;

3. streamline our accounting department structure and enhance our staff’s U.S. GAAP and SEC reporting requirements on a continuous basis through internal training provided by the Internal Finance manager;

4. participate in trainings and seminars provided by professional services firms on a regular basis to gain knowledge on regular U.S. GAAP /SEC reporting requirements updates; and

5. engage an external “Sarbanes-Oxley 404” consulting firm to help us implement Sarbanes-Oxley 404 internal controls compliance together with the establishment of our internal audit function.

We anticipate that these initiatives will be at least partially, if not fully, implemented by the end of fiscal year 2024.

Changes in Internal Controls over Financial Reporting

There was no change in the Company’s internal control over financial reporting period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently a party to any legal proceedings that in the opinion of our management, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, financial condition, or cash flows.

Item 1A. Risk Factors

As a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide the information called for by this Item 1A.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

There is no other information required to be disclosed under this item, which was not previously disclosed.

Item 6. Exhibits

Exhibit Number		Description
(31)		Rule 13a-14 (d)/15d-14d) Certifications
31.1*		Section 302 Certification by the Principal Executive Officer
31.2*		Section 302 Certification by the Principal Financial Officer and Principal Accounting Officer
(32)		Section 1350 Certifications
32.1*		Section 906 Certification by the Principal Executive Officer
32.2*		Section 906 Certification by the Principal Financial Officer and Principal Accounting Officer
101*		Interactive Data File
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

*Filed herewith.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Addentax Group Corp.

Date: November 14, 2024	By:	/s/ Hong Zhida
		Hong Zhida
		President, Chief Executive Officer and Director,
		(Principal Executive Officer)

Date: November 14, 2024	By:	/s/ Huang Chao
		Huang Chao
		Chief Financial Officer and Treasurer
		(Principal Financial and Accounting Officer)

Exhibit 31.1

CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Hong Zhida, certify that:

	1.	I have reviewed this quarterly report on Form 10-Q of Addentax Group Corp.;

	2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

	3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

	4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

	5.	I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

		(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

		(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2024

	/s/ Hong Zhida
	Hong Zhida
	President, Chief Executive Officer, Secretary and Director
	(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Huang Chao, certify that:

	1.	I have reviewed this quarterly report on Form 10-Q of Addentax Group Corp.;

	2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

	3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

	4.	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

	5.	I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

		(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

		(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2024

	/s/ Huang Chao
	Huang
	Chao Chief Financial Officer and Treasurer
	(Principal Financial Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Hong Zhida, Chief Executive Officer, of Addentax Group Corp., hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

	(1)	the quarterly report on Form 10-Q of Addentax Group Corp. for the period ended September 30, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	(2)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Addentax Group Corp.

	Dated: November 14, 2024

	/s/ Hong Zhida
	Hong Zhida
	President, Chief Executive Officer, Secretary and Director
	(Principal Executive Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Addentax Group Corp. and will be retained by Addentax Group Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Huang Chao, Chief Financial Officer, of Addentax Group Corp., hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

	(1)	the quarterly report on Form 10-Q of Addentax Group Corp. for the period ended September 30, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	(2)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Addentax Group Corp.

	Dated: November 14, 2024

	/s/ Huang Chao
	Huang Chao
	Chief Financial Officer, Treasurer
	(Principal Financial Officer)

Cover - shares	6 Months Ended
Cover - shares	Sep. 30, 2024	Nov. 14, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2025
Current Fiscal Year End Date	--03-31
Entity File Number	001-41478
Entity Registrant Name	ADDENTAX GROUP CORP.
Entity Central Index Key	0001650101
Entity Tax Identification Number	35-2521028
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	Kingkey 100, Block A
Entity Address, Address Line Two	Room 4805
Entity Address, Address Line Three	Luohu District
Entity Address, City or Town	Shenzhen City
Entity Address, Country	CN
Entity Address, Postal Zip Code	518000
City Area Code	(86)
Local Phone Number	755 86961 405
Title of 12(b) Security	Common Stock
Trading Symbol	ATXG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		6,043,769

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2024	Mar. 31, 2024
CURRENT ASSETS
Cash and cash equivalents	$ 810,545	$ 816,186
Restricted cash	2,750,000	2,750,000
Accounts receivables, net	1,207,409	2,106,451
Debt securities held-to-maturity	17,500,000	17,500,000
Inventories	191,708	63,505
Prepayments and other receivables	1,667,814	1,922,996
Advances to suppliers	320,964	1,009,362
Total current assets	28,288,594	29,181,392
NON-CURRENT ASSETS
Plant and equipment, net	491,706	568,854
Operating lease right of use asset	19,060,635	19,796,564
Long-term prepayments	291,027	291,938
Long-term receivables	2,500,000	2,500,000
Total non-current assets	22,343,368	23,157,356
TOTAL ASSETS	50,631,962	52,338,748
CURRENT LIABILITIES
Short-term loan	465,067	440,671
Accounts payable	79,364	359,488
Advances from customers	243,717	202,567
Accrued expenses and other payables	417,273	1,372,962
Operating lease liability current portion	1,068,257	1,059,497
Total current liabilities	2,451,428	4,581,930
NON-CURRENT LIABILITIES
Convertible debts	3,214,514	2,684,697
Derivative liabilities	949,791	287,955
Operating lease liability	19,226,050	18,737,066
Total non-current liabilities	23,390,355	21,709,718
TOTAL LIABILITIES	25,841,783	26,291,648
EQUITY
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)	6,044	5,384
Additional paid-in capital	35,240,981	34,510,869
Accumulated Deficit	(10,511,833)	(8,569,190)
Statutory reserve	37,020	37,020
Accumulated other comprehensive loss	17,967	63,017
Total equity	24,790,179	26,047,100
TOTAL LIABILITIES AND EQUITY	50,631,962	52,338,748
Related Party [Member]
CURRENT ASSETS
Amount due from related party	3,840,154	3,012,892
CURRENT LIABILITIES
Amount due to related parties	$ 177,750	$ 1,146,745

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2024	Mar. 31, 2024
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	6,043,769	5,383,769
Common stock, shares outstanding	6,043,769	5,383,769

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
REVENUES	$ 1,341,478	$ 1,335,314	$ 2,192,511	$ 2,387,820
COST OF REVENUES	(1,012,837)	(932,427)	(1,661,275)	(1,748,024)
GROSS PROFIT	328,641	402,887	531,236	639,796
OPERATING EXPENSES
Selling and marketing	(22,351)	(37,212)	(161,711)	(37,212)
General and administrative	(551,356)	(670,607)	(1,119,607)	(1,168,465)
Total operating expenses	(573,707)	(707,819)	(1,281,318)	(1,205,677)
INCOME (LOSS) FROM OPERATIONS	(245,066)	(304,932)	(750,082)	(565,881)
Fair value gain or loss	(531,614)	2,854,595	(397,397)	1,566,592
Interest income	342	1,693	710	3,417
Interest expenses	(58,045)	(603,819)	(905,727)	(1,896,534)
Other income, net	113,913	(581,900)	111,399	(469,414)
(LOSS) INCOME BEFORE INCOME TAX EXPENSE	(720,470)	1,365,637	(1,941,097)	(1,361,820)
INCOME TAX EXPENSE	(1,062)	(3,237)	(1,546)	(4,501)
NET (LOSS) INCOME	(721,532)	1,362,400	(1,942,643)	(1,366,321)
Foreign currency translation gain	(59,460)	2,302	(45,050)	89,752
TOTAL COMPREHENSIVE INCOME (LOSS)	$ (780,992)	$ 1,364,702	$ (1,987,693)	$ (1,276,569)
EARNINGS PER SHARE
Earnings (Loss) per share, Basic	$ (0.13)	$ 0.37	$ (0.36)	$ (0.37)
Earnings (Loss) per share, Diluted	$ (0.13)	$ 0.37	$ (0.36)	$ (0.37)
Weighted average number of shares outstanding - Basic	5,360,143	3,656,442	5,360,143	3,656,442
Weighted average number of shares outstanding - Diluted	5,360,143	3,656,442	5,360,143	3,656,442

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings Unrestricted [Member]	Retained Earnings Statutory Reserve [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Mar. 31, 2023	$ 35,455	$ 29,528,564	$ (5,451,209)	$ 28,457	$ (19,473)	$ 24,121,794
Balance, shares at Mar. 31, 2023	35,454,670
Additional paid-in capital from conversion of convertible debts		3,999,404				3,999,404
Foreign currency translation					89,752	89,752
Net income for the period			(1,366,321)			(1,366,321)
Issuance of new shares before reversed split	$ 1,941	(1,941)
Issuance of new shares before reversed split, shares	1,940,750
Reverse stock split	$ (33,656)	33,656
Reverse stock split, shares	(33,655,878)
New shares for round up of fragmental shares	$ 0	0
New shares for round up of fragmental shares, shares	39
Issuance of new shares after reversed split	$ 755	(755)
Issuance of new shares after reversed split, shares	755,398
Balance at Sep. 30, 2023	$ 4,495	33,558,928	(6,817,530)	28,457	70,279	26,844,629
Balance, shares at Sep. 30, 2023	4,494,979
Balance at Jun. 30, 2023	$ 3,740	32,406,317	(8,179,930)	28,457	67,977	24,326,561
Balance, shares at Jun. 30, 2023	3,739,581
Issuance of new shares	$ 755	(755)
Issuance of new shares, shares	755,398
Additional paid-in capital from conversion of convertible debts		1,153,366				1,153,366
Foreign currency translation					2,302	2,302
Net income for the period			1,362,400			1,362,400
Balance at Sep. 30, 2023	$ 4,495	33,558,928	(6,817,530)	28,457	70,279	26,844,629
Balance, shares at Sep. 30, 2023	4,494,979
Balance at Mar. 31, 2024	$ 5,384	34,510,869	(8,569,190)	37,020	63,017	26,047,100
Balance, shares at Mar. 31, 2024	5,383,769
Issuance of new shares	$ 660	646,140				646,800
Issuance of new shares, shares	660,000
Additional paid-in capital from conversion of convertible debts		83,972				83,972
Foreign currency translation					(45,050)	(45,050)
Net income for the period			(1,942,643)			(1,942,643)
Balance at Sep. 30, 2024	$ 6,044	35,240,981	(10,511,833)	37,020	17,967	24,790,179
Balance, shares at Sep. 30, 2024	6,043,769
Balance at Jun. 30, 2024	$ 6,044	35,157,009	(9,790,301)	37,020	77,427	25,487,199
Balance, shares at Jun. 30, 2024	6,043,769
Additional paid-in capital from conversion of convertible debts		83,972				83,972
Foreign currency translation					(59,460)	(59,460)
Net income for the period			(721,532)			(721,532)
Balance at Sep. 30, 2024	$ 6,044	$ 35,240,981	$ (10,511,833)	$ 37,020	$ 17,967	$ 24,790,179
Balance, shares at Sep. 30, 2024	6,043,769

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,942,643)	$ (1,366,321)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation	365,733	146,106
Non-cash financial cost	878,228	1,884,984
Investment income	330,000	(218,750)
Fair value gain or loss	397,398	(1,566,592)
Loss on debts extinguishment		697,318
Gain on bargain purchase		(975)
Loss from sale of property and equipment	43,081
Loss on disposal of subsidiary	334,135
Changes in operating assets and liabilities
Accounts receivable	489,599	(202,150)
Inventories	(137,062)	35,155
Advances to suppliers	(50,236)	(816,464)
Other receivables	(74,993)	(76,100)
Accounts payables	(280,124)	(12,460)
Accrued expenses and other payables	134,732	(65,645)
Advances from customers	41,150	(17,592)
Net cash provided by (used in) operating activities	528,998	(1,579,486)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment and intangible assets	(107,432)	(5,274)
Cash decreased in disposal of subsidiary	(8,219)
Net cash used in investing activities	(115,651)	(5,274)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from related party borrowings	151,574	1,960,902
Repayment of related party borrowings	(273,632)	(3,112,467)
Release of restricted cash		3,850,000
Proceeds from bank borrowings	695,343
Repayment of bank borrowings	(683,638)
Cash advance to related parties	(2,962,753)
Repayment from related parties	2,010,740
Proceeds from issue of ordinary shares	646,800
Net cash provided by (used in) financing activities	(415,566)	2,698,435
NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH	(2,219)	1,113,675
Effect of exchange rate changes on cash and cash equivalents	(3,422)	67,889
Cash and restricted cash, beginning of the period	816,186	562,711
CASH AND RESTRICTED CASH, END OF THE PERIOD	810,545	1,744,275
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	26,731
Cash paid during the period for income tax	1,546	4,501
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease obligations	$ 1,233,672	$ 19,512,400

ORGANIZATION AND BUSINESS ACQUISITIONS

6 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND BUSINESS ACQUISITIONS

1. ORGANIZATION AND BUSINESS ACQUISITIONS

BASIS OF PRESENTATION

6 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

2. BASIS OF PRESENTATION

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

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

Recently issued accounting pronouncements

DISPOSITION OF SUBSIDIARIES

6 Months Ended

Sep. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

DISPOSITION OF SUBSIDIARIES

4. DISPOSITION OF SUBSIDIARIES

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

Garment Manufacturing Segment

Financial position of YBY	August 31, 2024, date of disposal
Current assets	$	1,165,329
Noncurrent assets		134
Current liabilities		(863,205	)
Net assets	$	302,258

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

RELATED PARTY TRANSACTIONS

6 Months Ended

Sep. 30, 2024

RELATED PARTY TRANSACTIONS

5. RELATED PARTY TRANSACTIONS

Name of Related Parties		Relationship with the Company
Zhida Hong		President, CEO, and a director of the Company
Hongye Financial Consulting (Shenzhen) Co., Ltd.		A company controlled by CEO, Mr. Zhida Hong
Bihua Yang		A legal representative of XKJ
Dewu Huang		A legal representative of YBY, ceased to be related party at August 31, 2024 when YBY was disposed.
Jinlong Huang		Management of HSW

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

Hongye Financial Consulting (Shenzhen) Co., Ltd. provided guarantee to the consideration receivable of transfer of a debt security to a third party.

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

Amount due from related party	September 30, 2024		March 31, 2024
Zhida Hong (1)	$	2,847,417	$	2,154,759
Bihua Yang (2)		992,737		858,133
Amount due from related party	$	3,840,154	$	3,012,892

Related party borrowings	September 30, 2024		March 31, 2024
Hongye Financial Consulting (Shenzhen) Co., Ltd.		40,527		170,967
Dewu Huang (3)		-		864,599
Jinlong Huang		137,223		111,179
Related party borrowings	$	177,750	$	1,146,745

	(1)	The 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 year.

	(2)	The 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.

	(3)	The Company received financial support from Huang Dewu to fund company’s daily operation. The decrease is because YBY was disposed of in August 2024.

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

DEBT SECURITIES HELD-TO-MATURITY

6 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

DEBT SECURITIES HELD-TO-MATURITY

6. DEBT SECURITIES HELD-TO-MATURITY

	September 30, 2024		March 31, 2024

Debt securities held-to-maturity	$	17,500,000	$	17,500,000

INVENTORIES

6 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

INVENTORIES

7. INVENTORIES

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

SCHEDULE OF INVENTORIES

	September 30, 2024		March 31, 2024
Raw materials	$	9,939	$	20,947
Work in progress		6,836		-
Finished goods		174,933		42,558
Total inventories	$	191,708	$	63,505

ADVANCES TO SUPPLIERS

6 Months Ended

Sep. 30, 2024

Advances To Suppliers

ADVANCES TO SUPPLIERS

8. ADVANCES TO SUPPLIERS

PREPAYMENTS AND OTHER RECEIVABLES

6 Months Ended

Sep. 30, 2024

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAYMENTS AND OTHER RECEIVABLES

9. PREPAYMENTS AND OTHER RECEIVABLES

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

	September 30, 2024		March 31, 2024
Prepayment		29,091		34,693
Deposit		755,345		741,465
Receivable of consideration on disposal of subsidiaries		-		152,882
Receivable of interest income from debt security		330,000		437,500
Other receivables		553,378		556,456
Prepayments and other receivables	$	1,667,814	$	1,922,996

PROPERTY, PLANT AND EQUIPMENT

6 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

10. PROPERTY, PLANT AND EQUIPMENT

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

	September 30, 2024			March 31, 2024
Production plant	$	106,809		$	105,738
Motor vehicles		846,852			1,047,121
Office equipment		53,997			52,486
Property, plant and equipment gross		1,007,659			1,205,345
Less: accumulated depreciation		(515,953	)		(636,491	)
Plant and equipment, net	$	491,706		$	568,854

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

LONG-TERM RECEIVABLES

6 Months Ended

Sep. 30, 2024

Receivables [Abstract]

LONG-TERM RECEIVABLES

11. LONG-TERM RECEIVABLES

SHORT-TERM BANK LOAN

6 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

SHORT-TERM BANK LOAN

12. SHORT-TERM BANK LOAN

TAXATION

6 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

TAXATION

13. TAXATION

(a)	Enterprise Income Tax (“EIT”)

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

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


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
PRC statutory tax rate		25	%		25	%		25	%		25	%
Computed expected benefits		(180,118	)		341,409			(485,275	)		(340,456	)
Temporary differences		(30,436	)		(30,918	)		(6,245	)		(24,768	)
Permanent difference		(78,809	)		(75,814	)		(46,196	)		6,312
Changes in valuation allowance		290,425			(231,440	)		539,262			363,413
Income tax expense	$	1,062		$	3,237			1,546			4,501

(b)	Value Added Tax (“VAT”)

CONSOLIDATED SEGMENT DATA

6 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

CONSOLIDATED SEGMENT DATA

14. CONSOLIDATED SEGMENT DATA

	(a)	Garment manufacturing. Including manufacturing and distribution of garments;

	(b)	Logistics services. Providing logistic services; and

	(c)	Property management and subleasing. Providing shops subleasing and property management services for garment wholesalers and retailers in garment market.

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

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

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


	Three months ended				Six months ended
	September 30,				September 30,
Revenues from external customers	2024		2023		2024		2023
Garments manufacturing segment		148,470		91,218		235,072		145,091
Logistics services segment		964,429		1,186,033		1,450,936		2,184,666
Property management and subleasing		228,579		58,063		506,503		58,063
Total of reportable segments and consolidated revenue	$	1,341,478	$	1,335,314	$	2,192,511	$	2,387,820

Intersegment revenue
Garments manufacturing segment		-		-		-		-

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


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Garments manufacturing segment		1,622			(18,988	)		(62,023	)		(41,143	)
Logistics services segment		229,558			172,295			250,437			174,229
Property management and subleasing		(201,865	)		(13,360	)		(406,298	)		(13,360	)
Total of reportable segments	$	29,315		$	139,947		$	(217,884	)	$	119,726
Corporate and other		(274,381	)		(444,879	)		(532,198	)		(685,607	)
Total consolidated income (loss) from operations		(245,066	)		(304,932	)		(750,082	)		(565,881	)

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

Total assets	September 30, 2024		March 31, 2024
Garment manufacturing segment	$	249,407	$	1,357,761
Logistics services segment		3,277,551		3,231,492
Property management and subleasing		20,249,178		20,931,431
Total of reportable segments		23,776,136		25,520,684
Corporate and other		26,855,826		26,818,064
Consolidated total assets	$	50,631,962	$	52,338,748

Geographical Information

Geographic Information

SCHEDULE OF GEOGRAPHICAL INFORMATION

	Three months ended September 30,				Six months ended September 30,
	2024		2023		2024		2023
Revenues
China		1,341,478		1,335,314		2,192,511		2,387,820

	September 30, 2024		March 31, 2024
Long-Lived Assets
China		22,343,368		23,157,356

FINANCIAL INSTRUMENTS

6 Months Ended

Sep. 30, 2024

Investments, All Other Investments [Abstract]

FINANCIAL INSTRUMENTS

15. FINANCIAL INSTRUMENTS

	●	senior secured convertible notes in the aggregate original principal amount of approximately $16.7 million with interest rate of 5% per annum (the “Convertible Notes”); The Convertible Notes shall be 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.

SCHEDULE OF FINANCIAL INSTRUMENTS

	As of January 4, 2023

Derivative liabilities – Fair value of the Warrants	$	3,858,521
Derivative liabilities – Embedded conversion feature		1,247,500
Convertible Note		9,893,979
	$	15,000,000

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


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Carrying value – beginning balance	$	3,518,999		$	8,510,226		$	2,684,697		$	11,219,519
Converted to ordinary shares		(82,642	)		(813,366	)		(82,642	)		(3,695,810	)
Redemption		-			(5,687,056	)		-			(5,687,056	)
Amortization of debt discount		-			423,215			682,648			1,337,412
Deferred debt discount and cost of issuance		(264,186	)		(20,645	)		(263,925	)		(1,138,313	)
Interest charge		44,187			170,950			195,580			547,572
Carrying value – ending balance	$	3,216,358		$	2,583,324		$	3,216,358		$	2,583,324

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

SCHEDULE OF DERIVATIVE LIABILITIES


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Derivative liabilities –Warrants	$			$			$			$
Beginning balance		117,440			2,818,563			251,657			2,013,261
Marked to the market		184,549			(2,550,128	)		50,332			(1,744,826	)
Ending fair value		301,989			268,435			301,989			268,435

Derivative liabilities – Embedded conversion feature
Beginning balance		36,036			1,763,997			36,298			277,222
Converted to ordinary shares		(1,330	)		(339,999	)		(1,330	)		(453,594	)
Remeasurement on change of convertible price		264,186			20,645			263,925			1,138,314
Redemption		-			(1,115,627	)		-			(1,115,627	)
Marked to the market		347,065			(304,467	)		347,064			178,234
Ending fair value		645,957			24,549			645,957			24,549

Total Derivative fair value at end of period	$	947,946		$	292,984		$	947,946		$	292,984

LEASE

6 Months Ended

Sep. 30, 2024

Lease

LEASE

16. LEASE

As a lessee

Right-of-use asset and lease liabilities

The following table summarizes the components of lease expense:

SCHEDULE OF LEASE EXPENSES


	Three months ended September 30,				Six months ended September 30,
	2024		2023		2024		2023
Operating lease cost		265,894		31,363		524,976		74,801
Short-term lease cost		32,408		34,493		68,871		58,050
Lease Cost	$	298,302	$	65,856	$	593,847	$	132,851

The following table summarizes supplemental information related to leases:


	Three months ended September 30,						Six months ended September 30,
	2024			2023			2024			2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow from operating leases	$	298,302		$	65,856			593,847			132,851
Right-of-use assets obtained in exchange for new operating leases liabilities		1,096,683			19,511,181			1,233,672			19,512,400
Weighted average remaining lease term - Operating leases (years)		13.9			14.9			13.9			14.9
Weighted average discount rate - Operating leases		4.90	%		4.90	%		4.90	%		4.90	%

The following table summarizes the maturity of operating lease liabilities:

Years ending September 30	Lease cost
2025	$	1,120,463
2026		1,023,446
2027		1,023,446
2028		2,029,793
2029 and there after		24,796,599
Total lease payments		29,993,747
Less: Interest		(9,699,440	)
Total	$	20,294,307

As a lessor

Rental income from subleasing is disclosed in Note 14 segment data.

The future minimum rental receivable under non-cancellable operating leases contracted for the reporting period are as follows:

Years ending September 30	Lease income
2025	$	216,211
2026		286,740
2027		334,559
2028		89,745
2029 and there after		-
Total	$	927,255

SHARE CAPITAL

6 Months Ended

Sep. 30, 2024

Equity [Abstract]

SHARE CAPITAL

17. SHARE CAPITAL

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

RISKS AND UNCERTAINTIES

6 Months Ended

Sep. 30, 2024

Risks and Uncertainties [Abstract]

RISKS AND UNCERTAINTIES

18. RISKS AND UNCERTAINTIES

(a)

Economic and Political Risks

(b)

Foreign Currency Translation

(c)

Concentration Risks

The followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of September 30, 2024 and March 31, 2024.

Garment manufacturing segment

SCHEDULE OF CONCENTRATION RISKS

	September 30, 2024			March 31, 2024
Customer A		65.2	%		Nil	%
Customer B		34.8	%		3.3	%

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

Logistics services segment

	September 30, 2024			March 31, 2024
Customer A		19.7	%		13.9	%
Customer B		19.4	%		8.2	%
Customer C		14.7	%		21.6	%
Customer D		6.9	%		9.9	%
Customer E		5.5	%		2.5	%

Property management and subleasing segment

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

Concentration on customers

Concentration on suppliers

The 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.

SCHEDULE OF PURCHASES FROM SUPPLIERS

	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Garment manufacturing segment		60.6	%		Nil	%		41.8	%		Nil	%
Logistics services segment		100	%		100.0	%		100	%		100.0	%
Property management and subleasing		100.0	%		100.0	%		100.0	%		100.0	%

(d)

Interest Rate Risk

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2024
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates. There is no change in the accounting policies for the six months ended September 30, 2024.
Recently issued accounting pronouncements	Recently issued accounting pronouncements Accounting for Convertible Instruments: In August 2020, FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other changes, the new guidance removes from GAAP separation models for convertible debt that require the convertible debt to be separated into a debt and equity component, unless the conversion feature is required to be bifurcated and accounted for as a derivative or the debt is issued at a substantial premium. As a result, after adopting the guidance, entities will no longer separately present such embedded conversion features in equity and will instead account for the convertible debt wholly as debt. The new guidance also requires use of the “if-converted” method when calculating the dilutive impact of convertible debt on earnings per share, which is consistent with the Company’s current accounting treatment under the current guidance. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the fiscal year. The Company reviews new accounting standards as issued. Management has not identified any other new standards that it believes will have a significant impact on the Company’s consolidated financial statements.

DISPOSITION OF SUBSIDIARIES (Tables)

6 Months Ended

Sep. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

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

Financial position of YBY	August 31, 2024, date of disposal
Current assets	$	1,165,329
Noncurrent assets		134
Current liabilities		(863,205	)
Net assets	$	302,258

RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Sep. 30, 2024

Name of Related Parties		Relationship with the Company
Zhida Hong		President, CEO, and a director of the Company
Hongye Financial Consulting (Shenzhen) Co., Ltd.		A company controlled by CEO, Mr. Zhida Hong
Bihua Yang		A legal representative of XKJ
Dewu Huang		A legal representative of YBY, ceased to be related party at August 31, 2024 when YBY was disposed.
Jinlong Huang		Management of HSW

SCHEDULE OF AMOUNT DUE FROM RELATED PARTY

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

Amount due from related party	September 30, 2024		March 31, 2024
Zhida Hong (1)	$	2,847,417	$	2,154,759
Bihua Yang (2)		992,737		858,133
Amount due from related party	$	3,840,154	$	3,012,892

SCHEDULE OF RELATED PARTIES BORROWINGS

Related party borrowings	September 30, 2024		March 31, 2024
Hongye Financial Consulting (Shenzhen) Co., Ltd.		40,527		170,967
Dewu Huang (3)		-		864,599
Jinlong Huang		137,223		111,179
Related party borrowings	$	177,750	$	1,146,745

	(1)	The 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 year.

	(2)	The 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.

	(3)	The Company received financial support from Huang Dewu to fund company’s daily operation. The decrease is because YBY was disposed of in August 2024.

DEBT SECURITIES HELD-TO-MATURITY (Tables)

6 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

SCHEDULE OF DEBT SECURITIES HELD TO MATURITY

	September 30, 2024		March 31, 2024

Debt securities held-to-maturity	$	17,500,000	$	17,500,000

INVENTORIES (Tables)

6 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

SCHEDULE OF INVENTORIES

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

SCHEDULE OF INVENTORIES

	September 30, 2024		March 31, 2024
Raw materials	$	9,939	$	20,947
Work in progress		6,836		-
Finished goods		174,933		42,558
Total inventories	$	191,708	$	63,505

PREPAYMENTS AND OTHER RECEIVABLES (Tables)

6 Months Ended

Sep. 30, 2024

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES

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

	September 30, 2024		March 31, 2024
Prepayment		29,091		34,693
Deposit		755,345		741,465
Receivable of consideration on disposal of subsidiaries		-		152,882
Receivable of interest income from debt security		330,000		437,500
Other receivables		553,378		556,456
Prepayments and other receivables	$	1,667,814	$	1,922,996

PROPERTY, PLANT AND EQUIPMENT (Tables)

6 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT

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

	September 30, 2024			March 31, 2024
Production plant	$	106,809		$	105,738
Motor vehicles		846,852			1,047,121
Office equipment		53,997			52,486
Property, plant and equipment gross		1,007,659			1,205,345
Less: accumulated depreciation		(515,953	)		(636,491	)
Plant and equipment, net	$	491,706		$	568,854

TAXATION (Tables)

6 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

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


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
PRC statutory tax rate		25	%		25	%		25	%		25	%
Computed expected benefits		(180,118	)		341,409			(485,275	)		(340,456	)
Temporary differences		(30,436	)		(30,918	)		(6,245	)		(24,768	)
Permanent difference		(78,809	)		(75,814	)		(46,196	)		6,312
Changes in valuation allowance		290,425			(231,440	)		539,262			363,413
Income tax expense	$	1,062		$	3,237			1,546			4,501

CONSOLIDATED SEGMENT DATA (Tables)

6 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

SCHEDULE OF SEGMENT REPORTING FOR REVENUE

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


	Three months ended				Six months ended
	September 30,				September 30,
Revenues from external customers	2024		2023		2024		2023
Garments manufacturing segment		148,470		91,218		235,072		145,091
Logistics services segment		964,429		1,186,033		1,450,936		2,184,666
Property management and subleasing		228,579		58,063		506,503		58,063
Total of reportable segments and consolidated revenue	$	1,341,478	$	1,335,314	$	2,192,511	$	2,387,820

Intersegment revenue
Garments manufacturing segment		-		-		-		-

SCHEDULE OF SEGMENT REPORTING FOR LOSS FROM OPERATION

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


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Garments manufacturing segment		1,622			(18,988	)		(62,023	)		(41,143	)
Logistics services segment		229,558			172,295			250,437			174,229
Property management and subleasing		(201,865	)		(13,360	)		(406,298	)		(13,360	)
Total of reportable segments	$	29,315		$	139,947		$	(217,884	)	$	119,726
Corporate and other		(274,381	)		(444,879	)		(532,198	)		(685,607	)
Total consolidated income (loss) from operations		(245,066	)		(304,932	)		(750,082	)		(565,881	)

SCHEDULE OF SEGMENT REPORTING FOR ASSETS

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

Total assets	September 30, 2024		March 31, 2024
Garment manufacturing segment	$	249,407	$	1,357,761
Logistics services segment		3,277,551		3,231,492
Property management and subleasing		20,249,178		20,931,431
Total of reportable segments		23,776,136		25,520,684
Corporate and other		26,855,826		26,818,064
Consolidated total assets	$	50,631,962	$	52,338,748

SCHEDULE OF GEOGRAPHICAL INFORMATION

Geographic Information

SCHEDULE OF GEOGRAPHICAL INFORMATION

	Three months ended September 30,				Six months ended September 30,
	2024		2023		2024		2023
Revenues
China		1,341,478		1,335,314		2,192,511		2,387,820

	September 30, 2024		March 31, 2024
Long-Lived Assets
China		22,343,368		23,157,356

FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Sep. 30, 2024

Investments, All Other Investments [Abstract]

SCHEDULE OF FINANCIAL INSTRUMENTS

	As of January 4, 2023

Derivative liabilities – Fair value of the Warrants	$	3,858,521
Derivative liabilities – Embedded conversion feature		1,247,500
Convertible Note		9,893,979
	$	15,000,000

SCHEDULE OF CONVERTIBLE NOTES OBLIGATION

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


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Carrying value – beginning balance	$	3,518,999		$	8,510,226		$	2,684,697		$	11,219,519
Converted to ordinary shares		(82,642	)		(813,366	)		(82,642	)		(3,695,810	)
Redemption		-			(5,687,056	)		-			(5,687,056	)
Amortization of debt discount		-			423,215			682,648			1,337,412
Deferred debt discount and cost of issuance		(264,186	)		(20,645	)		(263,925	)		(1,138,313	)
Interest charge		44,187			170,950			195,580			547,572
Carrying value – ending balance	$	3,216,358		$	2,583,324		$	3,216,358		$	2,583,324

SCHEDULE OF DERIVATIVE LIABILITIES

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

SCHEDULE OF DERIVATIVE LIABILITIES


	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Derivative liabilities –Warrants	$			$			$			$
Beginning balance		117,440			2,818,563			251,657			2,013,261
Marked to the market		184,549			(2,550,128	)		50,332			(1,744,826	)
Ending fair value		301,989			268,435			301,989			268,435

Derivative liabilities – Embedded conversion feature
Beginning balance		36,036			1,763,997			36,298			277,222
Converted to ordinary shares		(1,330	)		(339,999	)		(1,330	)		(453,594	)
Remeasurement on change of convertible price		264,186			20,645			263,925			1,138,314
Redemption		-			(1,115,627	)		-			(1,115,627	)
Marked to the market		347,065			(304,467	)		347,064			178,234
Ending fair value		645,957			24,549			645,957			24,549

Total Derivative fair value at end of period	$	947,946		$	292,984		$	947,946		$	292,984

LEASE (Tables)

6 Months Ended

Sep. 30, 2024

Lease

SCHEDULE OF LEASE EXPENSES

The following table summarizes the components of lease expense:

SCHEDULE OF LEASE EXPENSES


	Three months ended September 30,				Six months ended September 30,
	2024		2023		2024		2023
Operating lease cost		265,894		31,363		524,976		74,801
Short-term lease cost		32,408		34,493		68,871		58,050
Lease Cost	$	298,302	$	65,856	$	593,847	$	132,851

SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES

The following table summarizes supplemental information related to leases:


	Three months ended September 30,						Six months ended September 30,
	2024			2023			2024			2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow from operating leases	$	298,302		$	65,856			593,847			132,851
Right-of-use assets obtained in exchange for new operating leases liabilities		1,096,683			19,511,181			1,233,672			19,512,400
Weighted average remaining lease term - Operating leases (years)		13.9			14.9			13.9			14.9
Weighted average discount rate - Operating leases		4.90	%		4.90	%		4.90	%		4.90	%

SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY

The following table summarizes the maturity of operating lease liabilities:

Years ending September 30	Lease cost
2025	$	1,120,463
2026		1,023,446
2027		1,023,446
2028		2,029,793
2029 and there after		24,796,599
Total lease payments		29,993,747
Less: Interest		(9,699,440	)
Total	$	20,294,307

SCHEDULE OF FUTURE MINIMUM RENT RECEIVABLE

The future minimum rental receivable under non-cancellable operating leases contracted for the reporting period are as follows:

Years ending September 30	Lease income
2025	$	216,211
2026		286,740
2027		334,559
2028		89,745
2029 and there after		-
Total	$	927,255

RISKS AND UNCERTAINTIES (Tables)

6 Months Ended

Sep. 30, 2024

Risks and Uncertainties [Abstract]

SCHEDULE OF CONCENTRATION RISKS

The followings are the percentages of accounts receivable balance of the top customers over accounts receivable for each segment as of September 30, 2024 and March 31, 2024.

Garment manufacturing segment

SCHEDULE OF CONCENTRATION RISKS

	September 30, 2024			March 31, 2024
Customer A		65.2	%		Nil	%
Customer B		34.8	%		3.3	%

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

Logistics services segment

	September 30, 2024			March 31, 2024
Customer A		19.7	%		13.9	%
Customer B		19.4	%		8.2	%
Customer C		14.7	%		21.6	%
Customer D		6.9	%		9.9	%
Customer E		5.5	%		2.5	%

SCHEDULE OF PURCHASES FROM SUPPLIERS

The 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.

SCHEDULE OF PURCHASES FROM SUPPLIERS

	Three months ended						Six months ended
	September 30,						September 30,
	2024			2023			2024			2023
Garment manufacturing segment		60.6	%		Nil	%		41.8	%		Nil	%
Logistics services segment		100	%		100.0	%		100	%		100.0	%
Property management and subleasing		100.0	%		100.0	%		100.0	%		100.0	%

SCHEDULE OF FINANCIAL POSITION OF ENTITIES AND GAIN OR LOSS ON DISPOSAL (Details) - Garment Manufacturing Segment [Member] - Shantou Yi Bai Yi Garment Co Ltd [Member]	Aug. 31, 2024 USD ($)
Current assets	$ 1,165,329
Noncurrent assets	134
Current liabilities	(863,205)
Net assets	$ 302,258

DISPOSITION OF SUBSIDIARIES (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
	Aug. 31, 2024	Sep. 30, 2024	Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]
Disposal consideration
Gain loss on disposal of subsidiary	$ 334,135	$ (334,135)

SCHEDULE OF RELATED PARTIES RELATIONSHIP WITH COMPANY (Details)	6 Months Ended
	Sep. 30, 2024
Zhida Hong [Member]
Related Party Transaction [Line Items]
Name of Related Parties	Zhida Hong
Relationship with the Company	President, CEO, and a director of the Company
Hongye Financial Consulting (Shenzhen) Co., Ltd. [Member]
Related Party Transaction [Line Items]
Name of Related Parties	Hongye Financial Consulting (Shenzhen) Co., Ltd.
Relationship with the Company	A company controlled by CEO, Mr. Zhida Hong
Bihua Yang [Member]
Related Party Transaction [Line Items]
Name of Related Parties	Bihua Yang
Relationship with the Company	A legal representative of XKJ
Dewu Huang [Member]
Related Party Transaction [Line Items]
Name of Related Parties	Dewu Huang
Relationship with the Company	A legal representative of YBY, ceased to be related party at August 31, 2024 when YBY was disposed.
Jinlong Huang [Member]
Related Party Transaction [Line Items]
Name of Related Parties	Jinlong Huang
Relationship with the Company	Management of HSW

SCHEDULE OF AMOUNT DUE FROM RELATED PARTY (Details) - USD ($)

Sep. 30, 2024

Mar. 31, 2024

Zhida Hong [Member]

Amount due from related party

^[1]

$ 2,847,417

$ 2,154,759

Bihua Yang [Member]

Amount due from related party

^[2]

992,737

858,133

Related Party [Member]

Amount due from related party

$ 3,840,154

$ 3,012,892

[1]	The 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.
[2]	The 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.

SCHEDULE OF RELATED PARTIES BORROWINGS (Details) - USD ($)

6 Months Ended

12 Months Ended

Sep. 30, 2024

Mar. 31, 2024

Related party borrowings

$ 177,750

$ 1,146,745

Hongye Financial Consulting (Shenzhen) Co., Ltd. [Member]

Related party borrowings

40,527

170,967

Dewu Huang [Member]

Related party borrowings

^[1]

864,599

Jinlong Huang [Member]

Related party borrowings

$ 137,223

$ 111,179

[1]	The Company received financial support from Huang Dewu to fund company’s daily operation. The decrease is because YBY was disposed of in August 2024.

SCHEDULE OF AMOUNT DUE FROM RELATED PARTY (Details) (Parenthetical) - Yang Bihua [Member] $ in Thousands	3 Months Ended
	Sep. 30, 2024 USD ($)
Related Party Transaction [Line Items]
Short term loan	$ 310
Received repayment of related party debt	$ 300

SCHEDULE OF DEBT SECURITIES HELD TO MATURITY (Details) - USD ($)	Sep. 30, 2024	Mar. 31, 2024	Aug. 24, 2022
Investments, Debt and Equity Securities [Abstract]
Debt securities held-to-maturity	$ 17,500,000	$ 17,500,000	$ 17,500,000

DEBT SECURITIES HELD-TO-MATURITY (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2024	Mar. 31, 2024	Jan. 04, 2023	Aug. 24, 2022
Investments, Debt and Equity Securities [Abstract]
Debt Securities, Current	$ 17,500,000	$ 17,500,000		$ 17,500,000
Debt Instrument, Interest Rate, Stated Percentage	2.50%		5.00%
Debt Instrument, Periodic Payment, Interest	$ 545,000
[custom:CouponReceivable-0]	$ 330,000	$ 437,500

SCHEDULE OF INVENTORIES (Details) - USD ($)	Sep. 30, 2024	Mar. 31, 2024
Inventory Disclosure [Abstract]
Raw materials	$ 9,939	$ 20,947
Work in progress	6,836
Finished goods	174,933	42,558
Total inventories	$ 191,708	$ 63,505

SCHEDULE OF PREPAYMENTS AND OTHER RECEIVABLES (Details) - USD ($)	Sep. 30, 2024	Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepayment	$ 29,091	$ 34,693
Deposit	755,345	741,465
Receivable of consideration on disposal of subsidiaries		152,882
Receivable of interest income from debt security	330,000	437,500
Other receivables	553,378	556,456
Prepayments and other receivables	$ 1,667,814	$ 1,922,996

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2024	Mar. 31, 2024
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 1,007,659	$ 1,205,345
Less: accumulated depreciation	(515,953)	(636,491)
Plant and equipment, net	491,706	568,854
Production Plant [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	106,809	105,738
Motor Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	846,852	1,047,121
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 53,997	$ 52,486

PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 26,942	$ 23,019	$ 75,919	$ 57,002

LONG-TERM RECEIVABLES (Details Narrative) - Loan Agreement [Member] $ in Millions	6 Months Ended
	Sep. 30, 2024 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Loan principal amount	$ 2.5
Long term loan interest rate terms	interest free
Long term loan expiry date	expire in August 2025.

SHORT-TERM BANK LOAN (Details Narrative)	1 Months Ended			6 Months Ended	9 Months Ended
SHORT-TERM BANK LOAN (Details Narrative)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Feb. 28, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 CNY (¥)	Mar. 31, 2024 CNY (¥)	Dec. 31, 2023 CNY (¥)	Feb. 28, 2023 CNY (¥)	Aug. 31, 2019 USD ($)	Aug. 31, 2019 CNY (¥)
Minimum [Member]
Debt Instrument [Line Items]
Line of credit facility, interest rate				4.34%
Maximum [Member]
Debt Instrument [Line Items]
Line of credit facility, interest rate				16.20%
Dongguan Agricultural Bank of China [Member] \| Facility Agreement [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity										$ 153,172	¥ 1,000,000
Line of credit borrowing	$ 130,779			$ 134,545	$ 134,545	¥ 944,255
Dongguan Agricultural Bank of China [Member] \| Facility Agreement [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Line of credit facility, interest rate					4.34%
Dongguan Agricultural Bank of China [Member] \| Facility Agreement [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Line of credit facility, interest rate				4.90%
China Construction Bank [Member] \| Facility Agreement [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity			$ 1,268,118						¥ 9,000,000
Line of credit borrowing	110,799			$ 163,862	$ 163,862	¥ 1,150,000
Line of credit facility, interest rate				3.90%	3.90%	3.90%
Expiration date			Feb. 01, 2026
Sichuan Xinwang Bank Co., Ltd. [Member] \| Facility Agreement [Member]
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity		$ 68,800						¥ 500,000
Line of credit borrowing	60,593			$ 44,527	$ 44,527	¥ 312,500
Line of credit facility, interest rate				16.20%	16.20%	16.20%
Expiration date		Dec. 26, 2025
WeBank Co., Ltd. [Member] \| Facility Agreement [Member]
Debt Instrument [Line Items]
Line of credit borrowing	$ 138,500			$ 122,133	$ 122,133	¥ 857,143
Line of credit facility, interest rate				8.244%	8.244%	8.244%
Expiration date	Mar. 22, 2026
Line of credit borrowing	$ 137,602						¥ 1,000,000

SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
PRC statutory tax rate	25.00%	25.00%	25.00%	25.00%
Computed expected benefits	$ (180,118)	$ 341,409	$ (485,275)	$ (340,456)
Temporary differences	(30,436)	(30,918)	(6,245)	(24,768)
Permanent difference	(78,809)	(75,814)	(46,196)	6,312
Changes in valuation allowance	290,425	(231,440)	539,262	363,413
Income tax expense	$ 1,062	$ 3,237	$ 1,546	$ 4,501

TAXATION (Details Narrative)	3 Months Ended		6 Months Ended
TAXATION (Details Narrative)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Effective federal statutory tax rate	25.00%	25.00%	25.00%	25.00%
Percentage of preferential value added tax			3.00%	3.00%
HSW, YBY, AOT, ZHJ and YS [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Percentage of preferential value added tax			13.00%
Domestic Tax Jurisdiction [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Percentage of value added tax			13.00%
Logistic Company [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Percentage of value added tax			9.00%
HONG KONG
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Income tax rate			16.50%
CHINA
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Effective federal statutory tax rate			25.00%
Percentage of preferential tax benefits and EIT rate and term description			The preferential tax rate will be expired at end of year 2024 and the EIT rate will be 25% from year 2025.
CHINA \| Minimum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Percentage on enterprise income tax			5.00%	5.00%
CHINA \| Maximum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Percentage on enterprise income tax			15.00%	15.00%

SCHEDULE OF SEGMENT REPORTING FOR REVENUE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Total of reportable segments and consolidated revenue	$ 1,341,478	$ 1,335,314	$ 2,192,511	$ 2,387,820
Garment Manufacturing Segment [Member] \| Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Total of reportable segments and consolidated revenue	148,470	91,218	235,072	145,091
Garment Manufacturing Segment [Member] \| Intersubsegment Eliminations [Member]
Segment Reporting Information [Line Items]
Garments manufacturing segment
Logistic Services Segment [Member] \| Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Total of reportable segments and consolidated revenue	964,429	1,186,033	1,450,936	2,184,666
Property Management and Subleasing [Member] \| Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Total of reportable segments and consolidated revenue	$ 228,579	$ 58,063	$ 506,503	$ 58,063

SCHEDULE OF SEGMENT REPORTING FOR LOSS FROM OPERATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Total consolidated income (loss) from operations	$ (245,066)	$ (304,932)	$ (750,082)	$ (565,881)
Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Total consolidated income (loss) from operations	29,315	139,947	(217,884)	119,726
Garment Manufacturing Segment [Member] \| Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Total consolidated income (loss) from operations	1,622	(18,988)	(62,023)	(41,143)
Logistic Services Segment [Member] \| Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Total consolidated income (loss) from operations	229,558	172,295	250,437	174,229
Property Management and Subleasing [Member] \| Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Total consolidated income (loss) from operations	(201,865)	(13,360)	(406,298)	(13,360)
Corporate Segment and Other Operating Segment [Member] \| Intersubsegment Eliminations [Member]
Segment Reporting Information [Line Items]
Total consolidated income (loss) from operations	$ (274,381)	$ (444,879)	$ (532,198)	$ (685,607)

SCHEDULE OF SEGMENT REPORTING FOR ASSETS (Details) - USD ($)	Sep. 30, 2024	Mar. 31, 2024
Segment Reporting Information [Line Items]
Consolidated total assets	$ 50,631,962	$ 52,338,748
Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Consolidated total assets	23,776,136	25,520,684
Garment Manufacturing Segment [Member] \| Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Consolidated total assets	249,407	1,357,761
Logistic Services Segment [Member] \| Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Consolidated total assets	3,277,551	3,231,492
Property Management and Subleasing [Member] \| Reportable Subsegments [Member]
Segment Reporting Information [Line Items]
Consolidated total assets	20,249,178	20,931,431
Corporate Segment and Other Operating Segment [Member] \| Intersubsegment Eliminations [Member]
Segment Reporting Information [Line Items]
Consolidated total assets	$ 26,855,826	$ 26,818,064

SCHEDULE OF GEOGRAPHICAL INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 1,341,478	$ 1,335,314	$ 2,192,511	$ 2,387,820
Long lived assets	22,343,368		22,343,368		$ 23,157,356
CHINA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	1,341,478	$ 1,335,314	2,192,511	$ 2,387,820
Long lived assets	$ 22,343,368		$ 22,343,368		$ 23,157,356

SCHEDULE OF FINANCIAL INSTRUMENTS (Details) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
SCHEDULE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Jan. 04, 2023	Jan. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Derivative liabilities - Fair value of the Warrants	$ 3,900,000		$ 531,614	$ (2,854,595)	$ 397,397	$ (1,566,592)
Derivative liabilities - Embedded conversion feature	1,200,000
Total	15,000,000	$ 15,000,000.0
Derivative [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Derivative liabilities - Fair value of the Warrants	3,858,521
Derivative liabilities - Embedded conversion feature	1,247,500
Convertible Note	9,893,979
Total	$ 15,000,000

SCHEDULE OF CONVERTIBLE NOTES OBLIGATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Investments, All Other Investments [Abstract]
Carrying value – beginning balance	$ 3,518,999	$ 8,510,226	$ 2,684,697	$ 11,219,519
Converted to ordinary shares	(82,642)	(813,366)	(82,642)	(3,695,810)
Redemption		(5,687,056)		(5,687,056)
Amortization of debt discount		423,215	682,648	1,337,412
Deferred debt discount and cost of issuance	(264,186)	(20,645)	(263,925)	(1,138,313)
Interest charge	44,187	170,950	195,580	547,572
Carrying value – ending balance	$ 3,216,358	$ 2,583,324	$ 3,216,358	$ 2,583,324

SCHEDULE OF DERIVATIVE LIABILITIES (Details) - USD ($)	3 Months Ended		6 Months Ended
SCHEDULE OF DERIVATIVE LIABILITIES (Details) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Investments, All Other Investments [Abstract]
Beginning balance	$ 117,440	$ 2,818,563	$ 251,657	$ 2,013,261
Marked to the market	184,549	(2,550,128)	50,332	(1,744,826)
Ending fair value	301,989	268,435	301,989	268,435
Beginning balance	36,036	1,763,997	36,298	277,222
Converted to ordinary shares	(1,330)	(339,999)	(1,330)	(453,594)
Remeasurement on change of convertible price	264,186	20,645	263,925	1,138,314
Redemption		(1,115,627)		(1,115,627)
Marked to the market	347,065	(304,467)	347,064	178,234
Ending fair value	645,957	24,549	645,957	24,549
Total Derivative fair value at end of period	$ 947,946	$ 292,984	$ 947,946	$ 292,984

FINANCIAL INSTRUMENTS (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
FINANCIAL INSTRUMENTS (Details Narrative) - USD ($)	Jan. 04, 2023	Jan. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
Proceeds from issuance of convertible debt and warrants	$ 15,000,000	$ 15,000,000.0
Convertible note principal	$ 16,700,000
Debt interest percent	5.00%		2.50%		2.50%
Maturity date	Jul. 04, 2024
Conversion price	$ 1.25
Warrant exercise price	$ 1.25	$ 1.25
Fair value of warrant	$ 3,900,000		$ 531,614	$ (2,854,595)	$ 397,397	$ (1,566,592)
Warrants			300,000		300,000		$ 250,000
Derivative liabilities, embedded conversion feature	$ 1,200,000
Fair value of conversion feature			600,000		600,000		$ 40,000.00
Shares purchase		700,000
Warrant term		5 years
Fair value of derivative liability		$ 168,000	947,946	292,984	947,946	292,984
Convertible note principal			$ 82,642	$ 813,366	$ 82,642	$ 3,695,810
Convertible note into ordinary shares			132,994	400,000	132,994	3,100,000
Conversion price			$ 0.6214	$ 2.264	$ 0.6214	$ 3.1442
Maximum [Member]
Warrant outstanding	16,100,000

SCHEDULE OF LEASE EXPENSES (Details) - USD ($)	3 Months Ended		6 Months Ended
SCHEDULE OF LEASE EXPENSES (Details) - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Lease
Operating lease cost	$ 265,894	$ 31,363	$ 524,976	$ 74,801
Short-term lease cost	32,408	34,493	68,871	58,050
Lease Cost	$ 298,302	$ 65,856	$ 593,847	$ 132,851

SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Lease
Operating cash flow from operating leases	$ 298,302	$ 65,856	$ 593,847	$ 132,851
Right-of-use assets obtained in exchange for new operating leases liabilities	$ 1,096,683	$ 19,511,181	$ 1,233,672	$ 19,512,400
Weighted average remaining lease term - Operating leases (years)	13 years 10 months 24 days	14 years 10 months 24 days	13 years 10 months 24 days	14 years 10 months 24 days
Weighted average discount rate - Operating leases	4.90%	4.90%	4.90%	4.90%

SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY (Details)	Sep. 30, 2024 USD ($)
Lease
2025	$ 1,120,463
2026	1,023,446
2027	1,023,446
2028	2,029,793
2029 and there after	24,796,599
Total lease payments	29,993,747
Less: Interest	(9,699,440)
Total	$ 20,294,307

SCHEDULE OF FUTURE MINIMUM RENT RECEIVABLE (Details)	Sep. 30, 2024 USD ($)
Lease
2025	$ 216,211
2026	286,740
2027	334,559
2028	89,745
2029 and there after
Total	$ 927,255

LEASE (Details Narrative)	Sep. 30, 2024	Sep. 30, 2023
Weighted average discount rate leases	4.90%	4.90%
Minimum [Member]
Lessor lease term	1 year
Maximum [Member]
Lessor lease term	5 years
Plant and Dormitory [Member]
Lease period	4 years 6 months
Building [Member]
Lease period	16 years
Head Office [Member]
Lease period	5 years

SHARE CAPITAL (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended	6 Months Ended
SHARE CAPITAL (Details Narrative) - USD ($)	Apr. 29, 2024	Jan. 31, 2023	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares issued		700,000
Common stock, par value				$ 0.001		$ 0.001
Gross proceeds from issuance of common stock				$ 646,800
Common stock, shares issued				6,043,769		5,383,769
Common stock, shares outstanding				6,043,769		5,383,769
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares issued			755,398	660,000
Private Placement Agreements [Member] \| Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares issued	660,000
Private Placement Agreements [Member] \| Investor [Member] \| Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares issued	330,000
Common stock, par value	$ 0.001
Shares issued, price per share	$ 0.98
Gross proceeds from issuance of common stock	$ 646,800

SCHEDULE OF CONCENTRATION RISKS (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member]	6 Months Ended	12 Months Ended
	Sep. 30, 2024	Mar. 31, 2024
Customer A [Member] \| Garment Manufacturing Segment [Member]
Concentration Risk [Line Items]
Percentage of risk	65.20%
Customer A [Member] \| Logistics Services Segment [Member]
Concentration Risk [Line Items]
Percentage of risk	19.70%	1.00%
Customer B [Member] \| Garment Manufacturing Segment [Member]
Concentration Risk [Line Items]
Percentage of risk	34.80%	3.30%
Customer B [Member] \| Logistics Services Segment [Member]
Concentration Risk [Line Items]
Percentage of risk	19.40%	8.20%
Customer C [Member] \| Logistics Services Segment [Member]
Concentration Risk [Line Items]
Percentage of risk	1.00%	2.00%
Customer D [Member] \| Logistics Services Segment [Member]
Concentration Risk [Line Items]
Percentage of risk	6.90%	9.00%
Customer E [Member] \| Logistics Services Segment [Member]
Concentration Risk [Line Items]
Percentage of risk	5.50%	2.50%

SCHEDULE OF PURCHASES FROM SUPPLIERS (Details) - Five Largest Suppliers [Member]	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Garment Manufacturing Segment [Member]
Concentration Risk [Line Items]
Percentage of inventory purchase	60.60%		41.80%
Logistic Services Segment [Member]
Concentration Risk [Line Items]
Percentage of inventory purchase	100.00%	100.00%	100.00%	100.00%
Property Management and Subleasing [Member]
Concentration Risk [Line Items]
Percentage of inventory purchase	100.00%	100.00%	100.00%	100.00%

RISKS AND UNCERTAINTIES (Details Narrative)	3 Months Ended		6 Months Ended
RISKS AND UNCERTAINTIES (Details Narrative)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024 USD ($)	Sep. 30, 2024 CNY (¥)	Sep. 30, 2023	Mar. 31, 2024
Concentration Risk [Line Items]
Translated exchange rates	7.02		7.02	7.02		7.22
Revenue and expenses translated average exchange rates	7.16	7.004	7.20	7.20	7.12
Outstanding borrowings			$ 465,067	¥ 3,263,898
Minimum [Member]
Concentration Risk [Line Items]
Interest rate percentage			4.34%	4.34%
Maximum [Member]
Concentration Risk [Line Items]
Interest rate percentage			16.20%	16.20%
Revenue, Segment Benchmark [Member] \| Customer Concentration Risk [Member] \| One Customer [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Revenue, Segment Benchmark [Member] \| Customer Concentration Risk [Member] \| Three Customer [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		10.00%
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| One Customer [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	31.40%		28.10%	28.10%
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Three Customer [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		11.00%			23.90%

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