CXJ GROUP CO Ltd

Previous wording

For the three month period ended August 31, 2022, we generated total revenue of $982,097 that included brand name administrative fee $177,095, motor oil and auto parts $800,235 and others $4,767.

Current wording

For the three month period ended November 30, 2022, we generated total revenue of $529,818 that included brand name administrative fee $186,465, motor oil and auto parts $129,839, automobile exhaust cleaners $212,801 and others $713.

Previous wording

For three months ended August 31, 2022 compared to three months ended August 31, 2021

Current wording

Total revenues for three months ended November 30, 2022 were $529,818 compared to $828,272 for the three months ended November 30, 2021, which decreased by $298,454, mainly due to the decrease of brand name administrative fee $279,317, sales of motor oil and auto parts $178,706 and others $53,232, and offset increase of automobile exhaust cleaners $212,801.

Previous wording

The Company are engaging in trading of auto parts and motor oil to their third-party agents in China. Revenues from services consist of administrative of brand name and training fees. Payments of services are generally received before delivery the services.

Current wording

The Company are engaging in trading of auto parts, motor oil and automobile exhaust cleaners to their third-party agents in China. Revenues from services consist of administrative of brand name and training fees. Payments of services are generally received before delivery the services.

Previous wording

The Company received the purchase order from their third-party agents, the selling price is based on the purchase price plus on a certain margin. Revenues related to sales of auto parts and motor oil are recognized in the consolidated statements of operations and comprehensive income/(loss) at the time when the goods are delivered and the ownership transfer to the third-party agents.

Current wording

The Company received the purchase order from their third-party agents, the selling price is based on the purchase price plus on a certain margin. Revenues related to sales of auto parts, motor oil and automobile exhaust cleaners are recognized in the consolidated statements of operations and comprehensive income/(loss) at the time when the goods are delivered and the ownership transfer to the third-party agents.

Previous wording

Cost of revenue consist primarily of costs associated with the purchase of goods. For three months ended August 31, 2022 compared to three months ended August 31, 2021

Current wording

Cost of revenue consist primarily of costs associated with the purchase of goods. For three months ended November 30, 2022 compared to three months ended November 30, 2021 as below:

Previous wording

Cost of revenue for the three months ended August 31, 2022 were $484,712 compared to $220,237 as of ended August 31, 2021, an increment of $264,475 is mainly due to the increased of sales of motor oil and auto parts $268,605 and offset decrease of others products $4,130.

Current wording

Cost of revenue for the three months ended November 30, 2022 were $241,559 compared to $217,440 as of ended November 30, 2021, an increase of $24,119 is mainly due to the increased of sales of automobile exhaust cleaners $155,256, and offset decrease in motor oil and auto parts $126,505 others products $4,632.

Previous wording

Gross profit for the three months ended August 31, 2022 were $497,385 compared to $273,572 as of August 31, 2021, an increment of $223,813 is mainly due to the increase of brand name administrative fee and sales of motor oil and auto parts

Current wording

Gross profit for the three months ended November 30, 2022 were $228,259 compared to $610,832 as of November 30, 2021, an decrement of $322,573 is mainly due to the decrease of brand name administrative fee $279,317.

Previous wording

Selling and Distribution expenses include payroll costs, sales-related consultancy fee, travelling expenses, transportation costs, conference and function expenses and other operating expenses associated with sales and marketing.

Current wording

Selling and Distribution expenses include salary, sales-related consultancy fee, travelling expenses, conference and function expenses and other operating expenses associated with sales and marketing.

Previous wording

Sales and marketing expenses for the three months ended August 31, 2022 were $223,543 compared to $225,814 as of August 31, 2021, a decrease of $2,271 is due to decrease in promotion and exhibition expenses $71,997 and offset increase in payroll costs $29,940 and transportation costs $36,473,

Current wording

Sales and marketing expenses for the three months ended November 30, 2022 were $104,343 compared to $240,465 as of November 30, 2021, a decrease of $136,122 is due to decrease in sales related consultancy fees $86,936, payroll costs $31,029, transportation expenses $10,602 and entertainment expenses $5,420.

Previous wording

G&A expenses for the three months ended August 31, 2022 were $227,369 compared to $162,048 as of August 31, 2021, a increase of $65,321 was primarily due to the increase of payroll costs $25,577, consultancy fee $34,071, bad debts written off $11,276.

Current wording

G&A expenses for the three months ended November 30, 2022 were $207,860 compared to $22,518 as of November 30, 2021. a increase of $186,747 was primarily due to the bad debts recovery of $155,246 as of November 2021.

Previous wording

We recorded $3,898 and $0 in income tax expenses for the period ended August 31, 2022 and August 31, 2021, respectively.

Current wording

We recorded ($1,513) and ($8,435) in income tax expenses for the period ended November 30, 2022 and November 30, 2021, respectively. Received a corporation tax refund $1,513 from tax authority in November 2022.

Previous wording

Net profit $34,013 and net loss $83,283 occurred for the three months ended August 31, 2022 and 2021 respectively, due to the factors discussed above.

Current wording

Net loss for the three months ended November 30, 2022 is $23,814 compared to net profit $356,470 as of November 30, 2021, a decrease of profit $380,284 is due to the factors discussed above.

Previous wording

Since commencing operations, our primary uses of cash have been to finance working capital needs for have financed these requirements primarily from cash generated from operations and related party advances.

Current wording

Since commencing operations, our primary uses of cash have been to finance working capital needs for ave financed these requirements primarily from cash generated from operations and related party advances.

Previous wording

We may, however, require additional cash resources due to changes in business conditions or other future developments. If these sources are insufficient to satisfy our cash requirements, we may seek to sell additional equity or debt securities or obtain a credit facility. The sale of additional equity or equity-linked securities could contractually result in additional dilution to stockholders. The incurrence of indebtedness would result in increased debt service obligations and could result in operating and financial covenants that would restrict operations. Financing may not be available in amounts or on terms acceptable to us, or at all.

Current wording

We may, however, require additional cash resources due to changes in business conditions or other future developments. If these sources are insufficient to satisfy our cash requirements, we may seek to sell additional equity or debt securities or obtain a credit facility. The sale of additional equity or equity-linked securities could contractual result in additional dilution to stockholders. The incurrence of indebtedness would result in increased debt service obligations and could result in operating and financial covenants that would restrict operations. Financing may not be available in amounts or on terms acceptable to us, or at all.

Previous wording

Cash flow used in operating activities for the three months ended August 31, 2022 is $863,432 as compared to the amount of $57,419 used in operating activities for the three months ended August 31, 2021, reflecting an increase of $806,013. The increase in net cash used in operating activities is mainly due to decrease cash flow of advanced, accrued liabilities and other payable $1,152,550 and offset net cash generated from net profit $132,255 and inventory $221,326.

Current wording

Cash flow used in operating activities for the six months ended November 30, 2022 is $828,355 as compared to the amount of $210,455 used in operating activities for the three months ended November 30, 2021, reflecting an decrease of cash flow $617,900. The decrease in net cash flow is mainly due to decrease net profit by $248,028, cash flow of advanced, accrued liabilities and other payable $750,568, prepayment, deposit and other receivables $210,210, and offset net cash generated inventory $320,395, accounts payable $134,264 and bad debts recovery $155,246.

Previous wording

Cash flow provided by financing activities is $130,255 for the three months ended August 31, 2022, compared to $10,450 for the three months ended August 31, 2021, reflecting a increase of $119,805. The increase in net cash provided by financing activities was mainly due to proceeds from share issuance $147.510 and offset repayment to related party and directors $27,705.

Current wording

Cash flow provided by financing activities is $1,584,077 for the six months ended November 30, 2022, compared to $79,950 for the six months ended November 30, 2021, reflecting a increase of $1,540,127. The increase in net cash provided by financing activities was mainly due to proceeds from share issuance $1,552,004, advance from directors $1,8152 and offset repayment to related party $66,029.