CXJ GROUP CO Ltd

Previous 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.

Current wording

For the three month period ended February 28, 2023, we generated total revenue of $191,637 that included brand name administrative fee $130,431, motor oil and auto parts $23,110, automobile exhaust cleaners $37,309 and others $787.

Previous 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.

Current wording

Total revenues for three months ended February 28, 2023 were $191,637 compared to $638,316 for the three months ended February 28, 2022, which decreased by $446,679, mainly due to the decrease of brand name administrative fee $271,132, sales of motor oil and auto parts $194,837 and others $18,019, and offset increase of automobile exhaust cleaners $37,309.

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, 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.

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 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.

Previous 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.

Current wording

Cost of revenue for the three months ended February 28, 2023 were $42,541 compared to $129,328 as of ended February 28, 2022, a decrease of $86,787 is mainly due to the decrease of sales of motor oil and auto parts $111,005 and others $3,002, and offset increase of automobile exhaust cleaners $27,220.

Previous 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.

Current wording

Gross profit for the three months ended February 28, 2023 were $149,096 compared to $508,988 as of February 28, 2022, a decrease of $359,892 is mainly due to the decrease of brand name administrative fee $271,132.

Previous 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.

Current wording

Sales and marketing expenses for the three months ended February 28, 2023 were $125,193 compared to $130,005 as of February 28, 2022, the decrement was mainly due to decrease in payroll costs.

Previous 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.

Current wording

G&A expenses for the three months ended February 28, 2023 were $165,019 compared to $221,972 as of February 28, 2022. The decrement was primarily due to the decrease of salary and welfare and consultancy fee.

Previous 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.

Current wording

We recorded 1,252 and $1,714 in income tax expenses for the period ended February 28, 2023 and February 28, 2022, respectively.

Previous 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.

Current wording

Net loss for the three months ended February 28, 2023 is $136,085 compared to net profit $156,721 as of February 28, 2022, a decrease of profit $292,806 is due to the factors discussed above.

Previous 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.

Current wording

Cash flow used in operating activities for the nine months ended February 28, 2023 is $944,948 as compared to the amount of $153,070 used in operating activities for the nine months ended February 28, 2022, reflecting an decrease of cash flow $791,878. The decrease in net cash flow is mainly due to decrease net profit by $540,835, cash flow of advanced, accrued liabilities and other payable $578,724, prepayment, deposit, other receivables $174,549 and operating lease liabilities $84,975, and offset net cash generated from inventory $332,636, accounts payable $123,638 and bad debts recovery $155,246.

Previous wording

Cash flow used in investing activities is $1,406,985 for the six months ended November 30, 2022, as compared to $51,984 for the six months ended November 30, 2021, reflecting an decrease of cash flow $1,355,001. The decrease in cash flow is due to Mr. Lixin Cai increased the share capital of CXJHZ to $1,410,437 (or RMB10,000,000) by capitalized of purchased copyrights.

Current wording

Cash flow used in investing activities is $1,458,197 for the nine months ended February 28, 2023, as compared to $104,742 for the nine months ended February 28, 2022, reflecting an decrease of cash flow $1,353,455. The decrease in cash flow is due to Mr. Lixin Cai increased the share capital of CXJHZ to $1,410,437 (or RMB10,000,000) by capitalized of purchased copyrights.

Previous 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.

Current wording

Cash flow provided by financing activities is $1,662,685 for the nine months ended February 28, 2023, compared to $79,950 for the nine months ended February 28, 2022, reflecting a increase of $1,582,735. The increase in net cash provided by financing activities was mainly due to proceeds from share issuance $1,603,114, advance from directors $40,595 and offset repayment to related party $60,974.

Previous wording

The majority of the Company’s revenues and expenses were denominated primarily in Renminbi (“RMB”), the currency of the People’s Republic of China. There is no assurance that exchange rates between the RMB and the U.S. Dollar will remain stable. Inflation has not had a material impact on the Company’s business.

Current wording

The majority of the Company’s revenues and expenses were denominated primarily in Renminbi (“RMB”), the currency of the People’s Republic of China. There is no assurance that exchange rates between the RMB and the U.S. Dollar will remain stable. Inflation has not had a material impact on the Company’s business.e